Guizhou Gas (600903), which was listed in July last year, has experienced alarming gains. The annual report on the evening of April 16 revealed that Guizhou Gas had achieved revenue of 2.779 billion yuan in 2017, an increase of 22.47% year-on-year, and a net profit of 137 million yuan, a year-on-year increase of 38%. Earnings per share was 0.2 yuan. In 2018, the company expects that the demand for natural gas in China will continue to grow. The company plans to sell 860 million cubic meters of natural gas, operating revenue of 3.2 billion yuan, and total profit of 160 million yuan.
It is worth noting that "Cow scattered" into a new list of the top ten shareholders of the new tourmaline, as of the end of the fourth quarter of last year, holding 0.25% of a total of 2 million shares. Cheng Bixi became famous in 2009. At that time, Shenzhou Taiyue rushed to the hundred-mark mark in one fell swoop with the concept of flying letters. The two-month increase doubled and Cheng Biyu appeared on the list of shareholders. Since then, Cheng Bijing has repeatedly appeared in Anke Biotechnology, Sanan Optoelectronics, Baotou Steel Rare Earth, and aerospace and other electrical and mechanical stocks, all of which were stocks in the market at that time.
On November 7, 2017, Guizhou Gas was successfully listed on the Shanghai Stock Exchange and the issue price was 2.21 yuan per share, becoming a veritable new price for “cabbage price”. After the listing of Guizhou Gas, there were 14 consecutive daily limit boards.
After the daily limit was opened, Guizhou Gas's share price continued to hit new highs. On March 9th this year, it hit a record high of 37.49 yuan per share, an increase of more than 16.96 times from the issue price of 2.21 yuan.
"Cows scattered" into the tourmaline succeeded in lurking in Guizhou Gas, but other big hype followers had earlier received a ticket from the regulator. On the evening of March 26 this year, the Shanghai Stock Exchange disclosed that due to investor Sun Hao speculating on the stock price of “Guizhou Gas” and “Tianhua Institute”, the Shanghai Stock Exchange decided to impose a three-month disciplinary penalty on the related securities accounts under Sun Hao’s name.
Guizhou Gas is mainly engaged in urban gas operations. In terms of business model, Guizhou Gas purchased piped natural gas and liquefied natural gas from upstream natural gas suppliers, through natural gas branch pipelines, gate stations, storage and distribution stations, and pipelines at all levels, which were built or operated by the company, in accordance with the needs of users and pipeline pressures. Transfer and distribute natural gas to users such as urban residents, business users, industrial users, and gas stations. In 2017, Guizhou Gas's main source of gas was natural gas supplied by PetroChina Guizhou Natural Gas Pipeline Network Co., Ltd.
The first annual report of the listing shows that Guizhou Gas has achieved revenue of 2.779 billion yuan in 2017, an increase of 22.47% year-on-year, and a net profit of 137 million yuan, a year-on-year increase of 38%. Guizhou Gas stated that the company's performance mainly came from gas supply and its supporting gas engineering installation services, and its business growth was mainly due to social and economic development and the expansion of the operating area and city scale. Last year, Guizhou Gas developed 210,000 users; in the operating area, the franchise rights of all natural gas pipelines in the townships of Gulin County, Quzhou City, Sichuan Province were newly licensed; gas sales volume increased by 24.44% year-on-year.
The annual report shows that as of the end of last year, Guizhou Gas had total assets of 7.677 billion yuan, 3,537 employees, 42 wholly-owned and controlled subsidiaries, and 11 equity-holding companies. At present, the company has built 3 natural gas branch pipelines in Guizhou Province.
In 2017, the company's natural gas sales increased steadily. Natural gas sales reached 686 million cubic meters, a year-on-year increase of 24.44%. As of the end of the reporting period, the company had obtained concession rights for pipeline gas in 25 specific regions in Guizhou Province and a specific region outside the province. As the city pipeline gas has a certain degree of natural exclusivity, the company has regional preemptive advantages in Guizhou Province. The work report of the Guizhou Provincial Government in 2018 pointed out that the penetration rate of county gas in the next five years should be increased to 80%. As a city gas company, the company will become a beneficiary of the development of the gas industry in Guizhou Province.
In 2018, Guizhou Gas expects China's natural gas demand to continue to grow. The company plans to sell 860 million cubic meters of natural gas, operating revenue of 3.2 billion yuan and total profit of 160 million yuan.
However, the 2017 business growth and outlook for this year clearly cannot support the amazing price-earnings ratio of Guizhou Gas. As of April 16, Guizhou Gas closed at 29.66 yuan, the static price-earnings ratio was 243.8, and the rolling price-earnings ratio was 177.9. As for the high stock price, Guizhou Gas has repeatedly suspended the verification and repeatedly stated that the company's price-earnings ratio is significantly higher than the price-earnings ratio of the gas industry.
In the latest suspension verification announcement, Guizhou Gas indicated that, according to the analysis of relevant institutions and professionals, due to the small liquidity of the company, the willingness of speculators in the venue was strong, and the market hot money opened the “relay” model. The company’s stock price rose based on the concept of hype. The current stock price is out of the fundamentals and the risk is greater.