Leo made a net profit of more than 2.1 billion yuan in the first three quarters, successfully turning losses into profits after two consecutive losses. But why hasn't its share price ushered in a carnival in the sensitive capital market?
Text: Daily Capital
After two consecutive years of losses, this leading company in the domestic pump market has earned more than 2.1 billion yuan in 9 months, and it is time to revalue it
Daily Capital "Through combing, among the listed companies that have announced the third quarter report of 2023, it is found that among the top 20 companies with the strongest year-on-year increase in net profit, Leo Group Co., Ltd. (hereinafter referred to as Leo Co., Ltd.) is the only private enterprise that can earn more than 1 billion yuan in real gold - in the third quarter of 2023, its revenue is 1567.9 billion yuan, a year-on-year increase of 348%；Net profit 210.6 billion yuan, a year-on-year increase of 291013%
Compared with the performance of the previous year, Leo shares successfully achieved a counterattack. Its financial report shows that in 2021 and 2022, Leo shares will lose 101.9 billion yuan, 44.3 billion yuan. In other words, this year, Leo shares spent 9 months not only to fill in this "big hole", but also to have a considerable surplus.
Moreover, in the third quarter of 2023, the sales expenses and management expenses of Leo shares not only did not compress, but also increased slightly, even if the R&D expenses decreased slightly, but they were almost on the same level as the same period last year. In other words, the net profit of 2.1 billion yuan was not saved through internal cost control.
But the capital market doesn't seem to be giving face. Leo shares have been on the upper edge of 2. since mid-March this yearAbout 5 yuan, the lower edge is 2In the box of about 15 yuan, do a sideways ** trend. In the past 7 trading days, 7 consecutive negative trends have also been formed, and the time-sharing chart is jagged, and the trading is not active.
Regarding the recent performance of Leo shares, the opinions of netizens in the stock bar are also relatively divided. Bullish netizens think;"Over 2After the 48 bull and bear line, it will soar into the sky. But some pessimistic netizens said, "7 consecutive falls, will it continue?."Some netizens reminded: "Beware of investment and thunder, the profits in the first three quarters are in vain." ”
The worries of netizens are not unfounded. By combing through Leo's financial report for the third quarter of 2023, it is not difficult to find that the first is that the compensation payable to employees decreased by 38% year-on-year91%, and the tax payable also fell by 4116%, which decreased by 1 year-on-yearAbout 300 million yuan. More importantly, itsThe return on investment is 7600 million yuan, a year-on-year increase of 10711%, mainly in the current periodProceeds from wealth management products and disposal of part of Li Auto**Resulting from an increase in revenue.
In addition, Leo's trading financial assets in the third quarter of 2023 were as high as 166.5 billion yuan, and accounts receivable are as high as 629.2 billion yuan, almost three times the net profit in the same period. Goodwill also has 34.4 billion yuan, and the future provision will also have a greater impact on performance.
In short, Leo shares were able to make a lot of money in the first three quarters, and a very important reason was to rely on financial income and the disposal of ideal cars to "support the façade". You must know that back then, Leo shares bet on ideal automobile**, creating an investment return of 10 billion, thus fighting "gods". The fluctuation of the ideal stock price still has a great impact on Leo's market capitalization.
According to public information, the actual controller of Leo shares is Wang Xiangrong. He started his business in 1995 at the age of 23. In 1999, he stumbled upon the business opportunities of foreign garden pumps in Europe, and boldly invested 5 million yuan in research and development, thus opening up the European market. In 2001, Taizhou Leo Electric *** In 2004, Leo's sales reached 2400 million yuan, ranking first in the province and the top three in the country, Wang Xiangrong is also known as the "Taizhou Pump King" by the outside world.
On April 27, 2007, Leo shares were successfully listed on the small and medium-sized board of the Shenzhen Stock Exchange with an issue price of 1369 yuan. The 35-year-old Wang Xiangrong also became the youngest chairman of a listed company in Shanghai and Shenzhen at that time.
The successful listing has raised many advantageous resources for the company and promoted the development process. The company began to carry out industry mergers and acquisitions, set up a holding subsidiary, Zhejiang Danong Industrial Co., Ltd., with sales exceeding one billion yuan in 2008, and was approved to set up Wenling Leo Microfinance Company. Later, we acquired three industrial pump companies, entered the water conservancy and water affairs, electric power, petrochemical industry, mining and metallurgical industries, and gradually became a leading enterprise in the domestic pump industry.
It is easy to find from the financial report of Leo shares that from 2007 to 2009, its net profit increased by 30% or even more than 40% year-on-year. However, since 2010, its net profit growth has declined significantly. In 2012, Leo suffered the embarrassment of halving its net profit year-on-year for the first time after listing.
In 2014, Leo began to diversify and start the rhythm of "buying, buying, buying". In the following three years, it successively acquired part or all of the shares of 22 companies, including Manku Advertising, Hai Argon Krypton, Amber Communication, Wansheng Weiye, MicroPort Times, Bicheng Network, Yijia Interactive, Midsummer Starry Sky, Yuetu Network, Tianjin Century Kunpeng, Chehejia, Zhiqu Advertising, Reyuan Network, and Strange Land Haoju, with a total transaction amount of more than 5 billion yuan.
However, buying more and earning less, many companies' net profits have declined in the past two years, with the highest decline reaching 741%。It can be corroborated that in 2018, Leo's revenue was 1147.9 billion yuan, a year-on-year increase of 857%；Net profit was -158.5 billion yuan, down 476 percent year-on-year38%。A very important reason is that there is a large risk of impairment of the goodwill formed by the acquisition of Wansheng Weiye and Zhiqu Advertising, and Leo intends to provide a total of about 1.3 billion to 1.8 billion yuan for the goodwill impairment of these two companies.
Interestingly, around this time, Leo Shares Investment under the leadership of Wang Xiangrong has become more and more fond of chasing hot spots.
In 2018, Leo planned to acquire Suzhou Mengjia Media, a self-leading company established less than three years at that time, at a sky-high price of 2.3 billion yuan. The merger was eventually put on hold for various reasons.
Wang Xiangrong's battle of "sealing the gods" is still to invest in Li Auto. In fact, as early as April 2016, Leo shares invested 3500 million yuan. In 2017, Leo increased its capital by another 100 million. On July 30, 2020, Li Auto was listed on NASDAQ. Leo shares with an initial investment of 4500 million yuan, and the market value of 10 billion yuan of ideal car was obtained at the peak. In 2020, Leo's net profit soared by 1451 year-on-year47%, Wang Xiangrong was also nicknamed "** King" by the outside world.
In November 2021, a news of Leo shares attracted great attention from the market. On November 15 of that year, Leo Investments signed an investment agreement and completed a US$50 million investment in TBCA on November 16. TBCA's investment target is SpaceX. Founded by American entrepreneur Elon Musk, SpaceX is a global space technology company, focusing on rocket launches, satellite communications, space transportation and space exploration, and is known for its "space travel" project that sends ordinary people to space.
However, TBCA's general partner, Tomalesbay Capital andUriliiGP, LLC, sent an email to Leo stating that it could not accept Leo Investment's continued ownership of LP shares and that it intended to refund Leo Investment's capital contribution. According to public reports, on November 24 of 2 of that year, TBCA had returned $50 million of its capital contribution to Leo Investments.
The latest change is that on February 23, 2023, Leo Shares revealed for the first time on the interactive platform that Leo Digital has become the first batch of ecological partners of Wenxin Yiyan, and is actively developing marketing products for the advertising industry in the era of intelligent marketing. The outside world also joked that Leo shares "rubbed" AIGC after building rockets and investing in cars.
But it's fair to say that even so, today, Li Auto's share price fluctuations still affect the market value of Leo's shares to a large extent.
On December 1, Leo shares ushered in a decent **. As of the day**, its share price was 239 yuan, up 482%, swallowed the first 5 negative candles in one go, and the total market capitalization reached 1616.8 billion yuan.
Technically, Leo's time-sharing chart is clearly jagged and trading is not active. On the weekly chart, Leo shares are still in the sideways stage, and it remains to be seen whether they can achieve a breakthrough. The monthly chart shows that the stock price is at the end of the correction.
It needs to be reminded that demon stocks usually soar rapidly with the help of the theme, so whether the hot big model can bring Leo any story may be the beginning of the next wave.
[The article is for communication purposes only, not investment advice, please be aware of investment risks.] It's not easy to code words, if your phone still has power, please help like, **Thank you very much].