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Foshan Lighting's recent stock market ups and downs
In the past 15 years, Foshan Lighting (000541.SZ) has maintained a stable performance and a high proportion of dividends, and has been hailed as “cash cows†by the market. In the first quarter of this year, it fell into a loss situation.
On April 15, 2008, Foshan Lighting announced that it was estimated by the financial department of the company that the net profit for the first quarter of 2008 was about -75 million yuan. In the same period last year, the net profit was 123 million yuan and the earnings per share was 0.35 yuan.
The company explained that “according to the fluctuation of the securities market, it is estimated that the short-term stock investment income and fair value change income of the company in the first quarter totaled about -10.84 million yuan (previous year: 91.2828 million yuan). In addition, the first quarter company Operating income increased by 15% compared with the same period of last year. However, due to factors such as rising raw materials, fuel oil, labor costs and appreciation of the renminbi, the profit from the main business decreased year-on-year."
First loss in the first quarter
"Since last year, we have realized that Foshan Lighting's investment income has contributed more to its profits, and the growth in its main business is not very obvious." Shen Bin, an analyst at Shenyin Wanguo, told this newspaper. Then they temporarily gave up tracking Foshan lighting. Like Yu Bin, CIIA Securities (love stocks, quotes, information) analyst Hu Yali gave up tracking of the company that was once known as the "cash cow" of the stock market two years ago.
It can be seen from last year's mid-year report that Foshan Lighting's interim net profit was more than 294 million, investment income was 240 million, and its main business profit was less than 55 million. Compared with the profit of its main business of nearly 100 million in the same period of last year, it was greatly reduced by 45. %.
In the eyes of analysts, investment income is seen as a “side jobâ€. The previous Foshan lighting was not to please investors.
On August 31, 2004, Foshan SASAC signed a share transfer contract with Osram Prosperity Holdings Co., Ltd. and Prosperity Lighting Equipment Co., Ltd., and the major shareholder of Foshan Lighting changed hands. However, the entry of lighting industry giant Osram did not bring greater development to Foshan Lighting. Foshan Lighting's performance declined, far before the transfer of equity.
"The new major shareholders did not actively take some things into the listed company. However, the main reason for this situation in Foshan Lighting is that its product structure is not very reasonable, and the products with little market space still account for a large proportion. Yu Bin believes.
Foshan Lighting's loss of 75 million yuan is not without reason. The reporter saw in his first quarter results announcement that the company's short-term stock investment income and fair value changes in the first quarter suffered losses, initially estimated at about 100 million yuan.
According to its report in the third quarter of last year, Foshan Lighting invested a total of 230 million yuan in securities investment. The most held stocks were Ningbo Bank (love stocks, market, information), with a total investment of 61.68 million yuan. 27.9 yuan / share, and Ningbo Bank's share price is only 13.9 yuan.
In addition to investing in Ningbo Bank, the company also invested in Shenneng shares (love stocks, quotes, information), emerging cast pipes (love stocks, quotes, information), Hua Xia Bank (love stocks, quotes, information), construction banks (love stocks) , market, information), Zhongyuan Express (love stocks, quotes, information), China Shenhua (love stocks, quotes, information) and other blue chips. These stocks experienced a sharp decline in the first quarter of this year.
On January 29, the company announced a pre-announcement of the annual report that the company used 700 million yuan of idle funds to participate in the subscription of new shares. The company's securities investment income accounts for up to 60% of the company's net profit.
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