See the white horse flash fall and stop again! The brokerage lowered the target price, what happened to this small household appliance faucet?

SMM Network News: October 27th morning trading, small household appliances leading Jiuyang shares fell quickly after opening low. Only 12 minutes later, the share price plummeted to the limit. As of press time, Jiuyang shares were quoted at 40.28 yuan per share, a decrease of 9.99%.

On the evening of October 26th, Jiuyang shares released its third quarterly report for 2020, showing that in the first three quarters of this year, the company achieved revenue of 7.083 billion yuan, an increase of 13.24% over the same period last year, of which revenue in the third quarter was 2.524 billion yuan, an increase of 22.07% over the same period last year. The net profit belonging to the shareholders of the listed company was 644 million yuan, and the company's income and profits were better and longer. At the same time, the company operates across borders in different areas such as social ecommerce, live streaming and O2O new retail, and strives to bring the prices of SKY series products represented by no hand-washed wall breakers, no hand-washed soymilk machines and new generation steam rice cookers into the main selling price range.

Under the situation of steady growth in performance and continuous improvement in the company's prospects, Jiuyang shares not only did not rise but fell by the limit, what on earth happened?

Data from the third quarterly report of Jiuyang shares show that the net cash flow generated by the company's operating activities fell 9.27% compared with the same period last year, indicating that the company's investment in the business sector has slowed down. At the same time, financial expenses during the reporting period decreased by 90% compared with the same period last year, mainly due to the increase in interest income in the current period, which also shows that Jiuyang shares in the main business income of home appliances has also further slowed down. In addition, non-net profit increased by only 3.35% over the same period last year, compared with 25.2% in the same period last year. The lower-than-expected growth may be one of the reasons for the stock's collapse, which is also reflected in the latest views related to a number of brokerages.

Guangfa Securities's latest research report points out that the growth rate of Jiuyang share income is faster than the previous month, but the growth rate of return net profit is slower than the income growth rate. The decline in profitability was mainly due to a decline in gross profit margin in the third quarter. Specifically, it is mainly due to the increase in the proportion of online sales in the small household appliance industry as a whole and the fierce price competition. In addition, although the overseas demand for the company's products is strong, the gross profit margin of export sales is lower than that of domestic sales, and the change in income structure leads to a decline in gross profit margin. These comprehensive factors make the gross profit margin of Jiuyang shares drop more than the net profit rate, so Guangfa Securities lowered the target price of Jiuyang shares from 48.1 yuan / share to 46.21 yuan / share.

Everbright Securities also said that although the revenue of Jiuyang shares increased 22% in the third quarter compared with the same period last year, its profitability was lower than expected. From the point of view of disassembly, the growth rate of domestic sales of Jiuyang brand fell by about 25% online and 20% offline compared with the same period last year. At the same time, its Shangkoning family has achieved an income of 42 million in China, with a relatively limited increase. According to Ovi data tracking, 80% of the online retail sales of the Shark brand in the third quarter of 2020 still came from the mop category, while other categories failed to scale up quickly.

From the perspective of the company's share price, Jiuyang shares have continued to rise for nearly two years since November 2018, with a cumulative increase of more than 240% in the two years, and the stock price has repeatedly reached record highs since the second half of this year. At the same time, recently, a number of high-level white horse stocks and blue chips have plummeted one after another due to their lower-than-expected performance. On October 21, Ziguang Guowei closed the trading limit due to lower-than-expected results, and Guizhou Moutai opened down more than 5% on October 26 for the same reason. In the recent high-level white horse frequent flash collapse of the market environment, Jiuyang shares can not escape the fate of collapse.

What is noteworthy is that at present, a number of white horse stocks and blue chips are at a high level, while market rumors say that northward funds have already been traded for shares. Judging from the top 10 active stocks traded through Shanghai Stock Connect and Shenzhen Stock Connect, a total of 43 stocks have appeared on the list of the top 10 active stocks since October. In addition, in the recent hot disclosure of the three quarters of listed companies, Gao Yi assets, Tanshuiquan Investment, Jinglin assets, Chongyang Investment, Bao Yin Investment, Liren Investment, Panjing Investment, Kaifeng Investment and other well-known investment institutions also actively adjusted their positions and traded shares in the volatile market in the third quarter of this year. The switch between high and low levels of funds and the new allocation of funds may also be one of the reasons for the decline of the stock.

At the morning meeting of brokerages on October 27, Caixin Securities believed that poor expectations led to the collapse of the white horse, driving the index down, while the switch of market investment style led to the collapse of institutions in high-priced stocks. Plate configuration continues to recommend pro-cyclical, style recommendations to guard against high-level stocks.

Guotai Junan believes that in the current market, the earnings repair cycle is expected to last until the second quarter of 2021, and the key to the market is the structure, especially the optimization of technology and optional consumption.

Shanxi Securities said that short-term investors should not operate blindly, the current optional consumer main line market may continue, can pay due attention to the performance growth of listed companies with strong certainty.