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Behind the dividend of 2.4 billion local tyrants: Huabao's "smoking addiction" is deep

March 15, 2019 02:10

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[2.4 billion local tyrants behind the dividend: Huabao shares "smoking addiction" deep] On the evening of March 12, Huabao shares the 2018 annual profit distribution plan "bright" the eyes of investors. The company plans to pay 40 yuan for every 10 shares of all shareholders, and a total of 2.464 billion yuan of dividends will be distributed. Based on the closing price of 37.88 yuan/share on March 12, Huabao's dividend yield exceeded 10%. Such a local distribution plan made Huabao shares a “send”, but it also quickly attracted the attention of the Shenzhen Stock Exchange. (Daily Economic News)

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On the evening of March 12, Huabao's 2018 profit distribution plan "lighted" the eyes of investors. Company plans to the wholeshareholderThe dividend for every 10 shares was 40 yuan, and a total of 2.464 billion yuan was found. Based on the closing price of 37.88 yuan/share on March 12, Huabao's dividend yield exceeded 10%. Such a local distribution plan made Huabao shares a “send”, but it also quickly attracted the attention of the Shenzhen Stock Exchange.

  "DividendBehind the cash

Huabao's "10-party 40 yuan" annual dividend plan is shocking! Although there are many listed companies with a dividend yield of over 10% in the A-share market, Huabao's market attention is far more than other companies, because Huabao shares almost eaten the "old".

Huabao shares 2018Net profitAt 1.176 billion yuan, the annual dividend distribution is 2.464 billion yuan, almost double the net profit. What does Huabao share to pay dividends? The answer is undistributed profits. As of the end of 2018, the accumulated undistributed profit of Huabao was 3.43 billion yuan, and the accumulated profit of the parent company for shareholders was 2.52 billion yuan.

In the view of Dong Dengxin, director of the Institute of Financial Securities of Wuhan University of Science and Technology, Huabao’s dividend-paying measures are arguable. "The dividends of listed companies should be regular and investors can expect. It should not be separated at one time." It told reporters that after the distribution of large dividends, the company's corresponding net assets will decline, and the stock of assets will decrease, which will result in Unfair treatment of new and old investors.

In the "divorce feast" of Huabao, the beneficiary is undoubtedly its controlling shareholder Huaying China. Huasheng China holds 49.95 million shares of Huabao, with a shareholding ratio of 81.10%. With this dividend, Chinachem China will receive more than 1.9 billion yuan (not considering taxes and fees).

All along, the A-share market has a variety of ways to give back to shareholders, one is the conversion of capital reserve into shares or bonus shares, and the other is cash dividends. From the outside world, for Chinachem China, cash dividends are undoubtedly the most favorable.

"If it is to transfer shares orSending sharesThe shareholding ratio of Chinachem China is still unchanged, still exceeding 81%. "Tibet Linyi Investment Management LimitedCompany investmentDirector Wang Lin analyzed that the controlling shareholder has a high shareholding ratio and it is difficult to directly bid in the secondary market orbig dealOn the one hand, we must abide by strict information disclosure requirements, on the other hand, the time period for cashing out will be lengthened. So, sendConversionThe incremental value brought is more reflected in the book. In addition, stock price fluctuations in the secondary market will also affect the book value after the transfer of shares.

In the current shareholding structure of Huabao, Huaying China can achieve the true “Pareto optimality (an economic term, an ideal state of resource allocation) in cash dividends”. “The general controlling shareholder has a relatively high proportion, so I am willing to pay dividends. Now I also encourage dividends. Of course, I can get more points if I have sufficient funds.” A listed company’s secretary-general told N+ financial reporters.

Huabao Co., Ltd. was listed on March 1, 2018. Except for IPO funds raised, there is currently no refinancing capital operation. In the eyes of the outside world,Since there is no refinancingAdditional issuanceEquity, then Huaying China does not have the "worry" of diluted capital, and cash dividends can naturally get more.

The reporter noted that the capital behind China Huaying China is quite complicated. According to the prospectus, the shareholder of Huaying China's shareholding penetration is a wholly-owned subsidiary of Warburg International (00336, HK). Zhu Linyao holds a total of 73.60% of Huabao International's shares through six companies including its wholly-owned enterprise Resourceful Link. According to "2019 Hurun Global Self-made Women's Rich List", Zhu Linyao is worth about 20.5 billion yuan, ranking 18th in the world.

In addition, Zhu Linyao is also considered to be the capital veteran of the "high throw and low suck". The Beijing News reported on March 13 that Zhu Linyao is known as the “Queen of Pumping Water”.

According to a number of self-media information, in 2006, Huabao International, controlled by Zhu Linyao, bought a shell in Hong Kong stocks. According to incomplete statistics, in a few short years, she reduced her shareholding in the company through a high position, totaling nearly 10 billion Hong Kong dollars, and once reduced the holding of Huabao International shares to less than 38%. On January 28, 2011 alone, she reduced her share of the company by 200 million shares and cashed in at HK$2.2 billion.

After 2011, Huabao International's share price fell sharply. Zhu Linyao and some other shareholders began to increase their holdings in the low position and proposed privatization. According to the timeannouncementThe company plans to acquire another 1.827 billion shares at an offer price of HK$3.3 per share.SuspensionThe previous HK$3.02 premium was 9.27% ​​and the total value of the offer was HK$6.03 billion. In addition, a share offer of 7.755 million shares will be involved. If the share options are fully exercised, the offer price will increase to HK$6.056 billion.

Later, Huabao International's spin-off subsidiary came to the A-share market, and now it has the Huabao shares. According to the financial report, from 2016 to 2018, the balance of cash and cash equivalents of Huabao was 1.972 billion yuan, 3.075 billion yuan, and 4.509 billion yuan respectively. Because of the continuous high dividends of Huabao in recent years, the cost of Zhu Linyao's privatization may be recovered.

Huabao shares a high dividend, and as a result, most of the money went into the pocket of the real controller. For Huabao, since the company is not short of money, what is the significance of its IPO raising funds of nearly 2.4 billion yuan?

  Shenzhen Stock Exchange issued a letter of concern

Sure enough, Huabao’s “every 10 shares payout 40 yuan” dividend plan came out, and the Shenzhen Stock Exchange quickly issued a letter of concern on the 13th.

According to the Shenzhen Stock Exchange, Huabao has stated in the prospectus that the company has developed a two-wheel drive development strategy through its endogenous growth and mergers and acquisitions, and the implementation of this strategy requires a large amount of self-owned funds. The company plans to use 649 million yuan to raise funds to supplement liquidity. However, the company has allocated cash of 97.91% of the undistributed profits of the parent company.

In view of the above situation, the Shenzhen Stock Exchange requires Huabao to specify the basis for the determination of the distribution plan, whether it is in line with the company's long-term development strategy, whether the reason for the dividend is inconsistent with the necessity of the fund-raising replenishment disclosed in the prospectus, and whether there will be funds raised. Indirectly used for profit distribution, etc.

Huabao shares were listed in March last year. The reporter noted that for the necessity of using liquidity to supplement liquidity, Huabao has stated in the prospectus: “The company has been taking mergers and acquisitions and industry integration as an important measure for the leap-forward development of the company for many years. In the future, the company will continue to seek A suitable, high-quality acquisition target enterprise, through horizontal and verticalMergerIntegrate and improve the industrial layout, further enlarge and strengthen, and ultimately enhance the company's international competitiveness, and enter the forefront of the international fragrance industry. ”

Before the listing, Huabao Co., Ltd. shouted that it needed to raise funds to supplement its liquidity for expansion. Now it has made a big profit distribution, and it is inevitable that there will be doubts.

The aforementioned person close to Huabao shares told reporters that the company's dividends are related to the cash flow of the company's books, which is the highest cash flow in the company's history. As of the end of 2018, Huabao sharescurrencyThe balance of funds is 6.117 billion yuan. After deducting the balance of the raised funds, the company's monetary fund balance was 4.699 billion yuan.

Another point that the market questioned is why Huabao does not use cash for outreach mergers and acquisitions.Performance. The person responded: "The fragrance industry in which Huabao is located is relatively stable and the business fluctuations are not too large, so the listed company chooses to distribute to shareholders."

Judging from historical data, Huabao has a tradition of distribution. The company implemented the “10 shares of 2 yuan (including tax)” dividend plan in July last year. In 2015 and 2016, Huabao shares were divided twice in the year.AllotmentLee. Among them, the company allocated a total of 42.906 million yuan in 2015, and a total of 3.405 billion yuan in 2016.

In response to the high-profile behavior of Huabao, some opinions believe that it is understandable to obtain the company's operating dividend through reasonable and legal means.

A listed company secretary told reporters that from the situation of Huabao, the company's operation is fairly stable, and there are funds on the account. "As long as the cash flow is no problem, the dividend will be no problem."

a listed companyExecutiveThen told reporters that through dividends, investors can share the company's operating dividends and explore the investment value of listed companies. "If you make money, but don't pay dividends, then the company's valuation is no longer high." It also said that in the mature capital market, as long as the rules work, the market will recognize.

However, some Secretaries believe that for listed companies, cash dividends are only one way to return shareholders. The real key is to do a good job in the company's main business, so that the stock price is supported by the upside, and the cash dividend is more emboldened, and the return to shareholders is better.

The above-mentioned person close to Huabao shares said that before the listing, the undistributed profit on the company's account was 2.4 billion yuan. The major shareholder could also distribute this before the listing, but it did not do so, but after listing. Distributed with shareholders. Regarding the issue of “taking more money” in the distribution of the major shareholder, the person said: “The high shareholding ratio of major shareholders is an objective fact.”

  There is support and there is opposition.

"Undistributed profits are accumulated by long-term profits and can be used as part of idle assets, but such a one-time split may not be very good." A senior certified public accountant told reporters. He also pointed out that because dividends are cash, they are generally paid by bank deposits. With such a high level of flow at one time, it is difficult for the outside world to worry about whether its capital chain can be under pressure. A secretary-general of a listed company that did not want to be named told reporters that if the company has a lot of projects under construction and the demand for funds is large, then high dividends will squeeze the overall cash flow.

According to Huabao's 2018 annual report, the company's construction in progress at the end of last year was 76.67 million yuan, nearly 30 times that of the end of 2017.

According to outside voices, Huabao’s IPO was “listed for listing” last year, said the person close to Huabao’s shares.Compared with Hong Kong stocks, A-shares are valued higher and financing is more convenient.“The P/E ratio of A shares is so high, which company is not willing to return to A shares to go public?” It also said thatBack to the A-share listing, you can also regulate corporate governance and establish a corporate brand image.

(Article source: Daily Economic News)

                (Editor: DF155)

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