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US stocks of industrial marijuana first published transcripts revenue growth of 195%! How do A-share industrial cannabis stocks go?

May 15, 2019 14:10
Author: Zhou Lulu

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Summary
[US stock industrial marijuana first report transcripts revenue growth of 195%! How do A-share industrial cannabis stocks go? 】 In the past month, the A-share industrial cannabis concept has been reduced. Whether the industrial cannabis concept has been turned off is probably the most concerned issue for investors. (China Securities Journal)

Industrial cannabis first Tilray (NASDAQ: TLRY) handed over transcripts, with revenue of $23 million in the first quarter of 2019, a year-on-year increase of nearly 195%. Analysts said that revenue in the second quarter could double again!

Since the beginning of this year, industrial cannabis has been fired from the United States to China, and it has also brought "industrial cannabis concept stocks." What is industrial marijuana? Promising prospects or conceptual hype? What should A-share investors care about?

  US stocks

  Still losing money in the first quarter

At 4 o'clock in the morning of May 15th, Beijing time, US stock industrial cannabis leader, Canadian cannabis producer Tilray released the first quarter of 2019 financial report. The financial report shows that Tilray’s sales in the first quarter increased significantly.Revenues nearly doubled, exceeding the average expectations of Wall Street analysts; but due to lower sales prices, losses were higher than analysts’ expectations.

Tilray first quarter earnings report

Specifically:

Revenues for the first quarter were $23 million, and analysts expected $20.5 million; for the same period in 2018, $7.8 million.

The net loss for the first quarter was $30.3 million, and the loss per share was 32 cents. Analysts expected a loss of 25 cents per share; the net loss for the same period in 2018 was $5.2 million, and the loss per share was 7 cents.

In the first quarter, the sales volume of total kilogram equivalents was 3012 kg, and the sales volume in the same period of 2018 was 1299 kg.

The average net sales price per gram in the first quarter fell to $5.60, compared to $5.94 in the same period in 2018.

The adjusted EBITDA loss in the first quarter was $104.6 million, and analysts expected a loss of $106.7 million.

For the second quarter results outlook, Wall Street analysts expect,Tilray's revenue will reach $42.2 million, nearly double the $2300 in the first quarter.The expected loss per share is 25 cents, a decrease from the previous quarter.

Before the release of the earnings report, Tilray shares rose nearly 5%; after the earnings report, Tilray shares continued to rise after the US stock market, after rising more than 6%.

Tilray stock price chart

  What is industrial marijuana?

Industrial cannabis refers to cannabis with a content of less than 0.3% of tetrahydrocannabinol. Industrial cannabis is called "hemp" in China. It is divided into industrial cannabis and drug cannabis according to the content of tetrahydrocannabinol. It is widely used at home and abroad. Cannabis is industrial cannabis.

Classification of cannabis

source:Northeast Securities

Industrial cannabis is widely used. After industrial cannabis cultivation, raw materials are extracted from roots, stems, leaves, skins and flower seeds. It can be widely used in many application scenarios such as food, daily chemicals, textiles, new materials and new energy. At present, industrial cannabis is mainly used in medical, industrial and food fields.

  Medical:Cannabis plants contain more than 400 chemical components, many of which can be widely used in the medical field. Among them, medical cannabinol (CBD) has remarkable effects in treating epilepsy, depression and pain relief.

  industry:More than 50,000 kinds of cannabis products have been developed worldwide. For example, hemp fiber can be made into high-grade textiles. The rhizome of cannabis can be used as a raw material for non-toxic paints and polishes, and the foliage can be used as a fertilizer for plant insecticides. According to Canopy Grogwth, the global textile market based on cannabis in 2008 was worth $1.08 billion, and the combined growth rate of cannabis fiber sales in 2018-2023 is expected to be 15%.

  food:Hemp seeds can be used as food and feed, and the edible grade of cannabidiol can be used as an additive to ordinary beverages, functional beverages and nutritional supplements. According to ZenithGlobal, a global food and beverage consultancy, the 2024 US cannabis beverage market will grow to $1.4 billion, with a compound growth rate of 58% from 2018 to 2024.

With the continuous advancement of cannabis research, the international cannabis policy has gradually loosened.

In 1988, the United Nations promulgated the UN Convention on the Prohibition of Illegal Narcotic Drugs and Psychotropic Substances, which stipulates that the content of tetrahydrocannabinol in cannabis plants is less than 0.3%, and does not have the value of extracting THC toxic components, and cannot be directly used as drug use and industrialization. .

The establishment of this clause declares that the development and utilization of cannabis industry has entered a new era, and since then countries have increased the development of industrial cannabis industry.

In China, the cultivation and processing of industrial cannabis needs to be approved by the public security department. Currently,Yunnan, Heilongjiang and Jilin provinces are allowed to develop industrial cannabis industry under the guidance of provincial agricultural academies.. Among them, Yunnan Province is currently the only province in China that is licensed by the regulations (anti-drug regulations) and regulates industrial cannabis cultivation.

  Quickly become the darling of the capital market

Driven by factors such as a wide range of application scenarios and continued policy liberalization in the international arena, the industrial cannabis concept quickly became popular in the capital market.

On July 19, 2018, Tilray, the US industrial marijuana leader, officially landed at the issue price of US$17.Nasdaq, became the first stock of industrial stocks in the US stock market.

Stock price trend since Tilray went public

K picture tlry_31

Tilray rose more than 30% on the first day after its listing. Since then, the stock has soared. On September 19, 2018, it hit a record high of $300. As of the close of the day, it closed at $214. Tilray's share price is higher than the issue price. Soaring 1158%. Subsequently, the stock price fluctuated and fell back. As of now, it is reported at 48.74 US dollars, which is still 186.70% higher than the issue price.

The domestic industrial marijuana concept stocks are also red and half-day.

Industrial cannabis index since the beginning of the year

K map bk0856_1

In February of this year, the "industrial marijuana concept stocks" in the A-share market turned out. The industrial cannabis index immediately stood at 1000 points, and then continued to climb. On April 18, the intraday trading session hit a record high of 1954.6 points. As of now, the index has hovered at 1530, and has risen more than 122% since the beginning of the year.

Industrial marijuana from the United States to China, not only brought "industrial marijuana concept stocks", but also brought a new blue ocean market for entrepreneurs.

According to data released by the marijuana consulting firm Viridian Capital Advisors, in 2018,The global financing of cannabis companies is close to $13.8 billion, which is only $3.5 billion in 2017..

Another research firm, BDS and Arcview Market Research, estimates that global cannabis sales will increase from $12.8 billion in 2018 to $31.3 billion in 2022.

  Has the A-share industrial cannabis market stalled?

While “industrial leprosy” continues to sweep the capital market, analysts also said thatThe cannabis industry is currently one of the most popular investment industries in the world.

In the past month, the concept of A-share industrial cannabis has declined. Whether the industrial cannabis concept has been turned off is probably the most concerned issue for investors.

  Founder SecuritiesAn investment adviser said: "As with the previous venture capital concept sector, the short-term increase is too large, and a large-scale correction is a normal phenomenon." He believes that this wave of speculation has begun since the beginning of the year because of the concept comparison. New is a midline concept.

The investment adviser also said that the current domestic capital market speculation on industrial marijuana is based on the outlook for the later period. In addition,It takes a time period to grow industrial cannabis, and it has little impact on the net profit of listed companies in the short term.. ”

  Tianfeng SecuritiesIt is believed that domestic industrial cannabis is developing under the background of strict supervision.Domestic companies with early industrial chain layout, mature technology and leading channel layout are expected to stand out in the future..

However, Guo Jian, assistant to the president of Xinhu Fortune, believes that this round of industrial marijuana market has ended. What investors need to do now is not to chase after the rise, and to have a leading position to control the position or leave the market.

(Article source: China Securities Journal)

                (Editor: DF064)

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