Kehua holding’s listed performance changed in seconds, net profit fell three times in a row, short-term loans doubled, debt ratio rose to 65.36%

On the evening of January 11, Kehua holdings released the performance forecast for 2020, and its annual profit is expected to be RMB 2019.06 million to RMB 29.108 million, a year-on-year decrease of 64.69% to 75.51%. Kehua holdings was founded in 2002, specializing in the production of automotive turbocharger parts, hydraulic pump valves and engineering machinery parts. According to the company, it is a national high-tech enterprise, with a number of world-famous enterprise customers such as Honeywell, Berger Warner, Shanghai Lingzhong, etc., and a large number of products are exported to North and South America. < / P > < p > however, although Kehua holdings claims to be highly competitive, its operating performance is not ideal, and there are two days before and after its listing. Before listing, the company’s net profit attributable to shareholders of listed companies (referred to as net profit) continued to grow. After landing in the A-share market in 2018, the net profit continued to decline. In the secondary market, Kehua holdings also performed poorly. On the first day of listing, its share price closed at 24.12 yuan / share, and it was 38.84 yuan / share when the new shares opened. Since then, the shock downward. On January 12, the share price was 18.90 yuan per share, which was cut off from the peak. < / P > < p > according to the performance forecast, in 2020, Kehua holdings is expected to achieve a net profit of 19.906 million yuan to 29.1080 million yuan, compared with 82.4277 million yuan in the same period of last year, a year-on-year decrease of 53.3197 million yuan to 62.2371 million yuan, a decrease of 64.69% to 75.51%. < / P > < p > the profitability of main business is worse. The company expects that the net profit after deducting non recurring profits and losses (hereinafter referred to as non recurring profits and losses) will be 421200 yuan to 9338600 yuan, which will decrease by 52.2529 million yuan to 61170300 yuan compared with 61.5915 million yuan in the same period of last year, with a decrease rate of 84.84% to 99.23%. < / P > < p > a year-on-year decrease of 99%, which means that the operating performance has fallen to the bottom. The company explained that in the first half of 2020, affected by the epidemic, the company’s product production decreased, the utilization rate of production capacity was low, and the fixed cost increased, resulting in a decline in the gross profit rate of products. In the whole year, exchange loss was 35.2848 million yuan due to exchange rate changes, and exchange income was 23.5727 million yuan in the same period of last year. In addition, the sales revenue increased in the fourth quarter, the balance of accounts receivable increased at the end of the period, and the company’s provision for bad debts increased in proportion. < / P > < p > according to the third quarterly report of last year, Kehua holdings achieved an operating revenue of 1.127 billion yuan, a slight decrease of 2.80% over the same period of last year, and its net profit and non net profit were – 17 million yuan and – 30 million yuan, a decrease of 122.72% and 153.59% over the same period of last year. Compared with the performance forecast, in the fourth quarter, the company is expected to achieve a net profit of 37 million yuan to 46 million yuan, a significant increase over the same period last year. In 2018, Kehua holdings landed on the main board of Shanghai Stock Exchange. In the year of listing, the company realized operating revenue of 1.376 billion yuan, net profit of 105 million yuan and non net profit of 89 million yuan, with year-on-year changes of 50.09%, – 1.86% and – 10.79% respectively. The operating revenue increased significantly, while the net profit and non net profit went against the trend. < / P > < p > in 2019, the company achieved an operating revenue of 1.623 billion yuan, a year-on-year increase of 17.95%, which continued to grow, but still increased revenue without increasing profit. The net profit realized was 82 million yuan and the non net profit deducted was 62 million yuan, down 21.19% and 30.99% respectively. < / P > < p > in sharp contrast, Kehua holdings achieved a sustained growth in both operating revenue and net profit before its listing. From 2013 to 2017, the company’s operating revenue increased from 370 million yuan to 917 million yuan, with an average annual compound growth rate of about 25%. During the same period, the company’s net profit increased from 33 million yuan to 107 million yuan, and the average annual growth rate basically matched the operating revenue. Since its establishment 18 years ago, Kehua Holdings has been engaged in R & D, production and sales of intermediate housing and its assembly parts, turbine housing and its assembly parts. The company said that after a long period of industry infiltration, it has mastered a number of core technologies in casting and machining process, established a lean management system, and gradually has a stable and high-quality customer group. < / P > < p > the company’s main customers include well-known turbocharger manufacturers such as Garrett, Berger Warner and Shanghai Lingzhong, and has maintained a long-term and stable cooperative relationship. It said that with stable and high-quality customer groups, the company has a strong advantage in the competition of auto parts industry. < / P > < p > in 2018, the first year of listing, the company completed listing and fund-raising, the operating revenue increased significantly, but the net profit decreased. The company explained that with the increase of income scale, the labor cost and raw material cost increased, and the transportation fee increased, which led to a slight decrease in net profit. < / P > < p > in 2019, it will also increase revenue but not profit. The company explained that the decrease of net profit was mainly due to the increase of labor cost, raw material cost and depreciation of fixed assets. The increase of operating cost was greater than that of income scale. In 2020, the company’s net profit will continue to decline significantly. In its semi annual report, it has disclosed that in addition to the impact of the epidemic, the rising cost of raw materials, including the rising price of precious metals such as nickel, are the main reasons for the decline of profitability. In addition, the construction in progress of Zhongguancun project and South plant area project of the company have been transferred to fixed assets, and the depreciation of fixed assets has increased. < / P > < p > in the first three quarters of 2020, the sales expenses, management expenses and financial expenses of Kehua holdings were 32 million yuan, 36 million yuan and 39 million yuan respectively, compared with 32 million yuan, 36 million yuan and 23 million yuan in the same period of last year, 27 million yuan, 44 million yuan and 15 million yuan respectively in the first three quarters of 2018, and 14 million yuan, 40 million yuan and 20 million yuan respectively in the same period of 2017 before listing. < / P > < p > by comparison, it is found that there is no obvious increase in the administrative expenses, or even a downward trend. The growth of sales expenses is due to the growth of operating revenue and freight. The growth rate is relatively large in 2018, but not large in 2019 and 2020. < / P > < p > in the first three quarters of 2017, the total long-term and short-term debt of Kehua holdings was 523 million yuan, which was 782 million yuan, 1071 million yuan and 1634 million yuan in 2018, 2019 and the same period of 2020, respectively, increasing year by year. Among them, in the first three quarters of 2018, the company went public at the beginning of that year and raised 559 million yuan, but the debt is still increasing, which is somewhat surprising. In the first three quarters of 2020, its short-term loans were 732 million yuan, an increase of 367 million yuan over 365 million yuan in the same period of last year, more than doubling. < / P > < p > on the whole, Kehua Holdings’ liabilities have been running at a high level for a long time. At the end of 2017, the company’s asset liability ratio was 68.68%, which decreased after the listing and fund-raising, reaching 62.27% at the end of 2018 and 65.36% at the end of the third quarter of 2020, rising again. < / P > < p > on January 5, 2018, Kehua holdings was officially listed, with the initial price of 16.75 yuan / share. After closing five trading limits, Kehua holdings opened, with the highest price of 38.84 yuan / share. Since then, the share price has been fluctuating all the way down. By January 12, the share price was 18.90 yuan / share, slightly higher than the issue price, which has been cut off from its highest price. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. 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