Jilin Chemical Fiber: Refinancing Is Alleged To Be "Inappropriate"

Due to the introduction of a huge increase plan, Jilin chemical fiber (000420) has attracted much attention recently. Recently, the plan was approved by Jilin SASAC in principle. However, the market has different opinions. Investment People called "popular securities" and questioned the scale of issuance and investment projects.

1 billion 300 million Refinancing

In June 25th, the Jilin chemical fiber announcement said that the total number of proposed non-public offering shares was no more than 200 million shares, the issuing price was not less than 6.23 yuan / share, and the total amount of raised funds was not more than 13.35 yuan, which was used for the integrated project of bamboo pulp and bamboo pulp fiber and supplementary liquidity projects. Among them, the controlling shareholder of chemical fiber group committed to not less than 150 million yuan less than 250 million yuan in cash to subscribe for the non-public offering of shares.

The introduction of Jilin chemical fiber is a new round of financing plan after the failure of refinancing in 2010. In April 2010, Jilin chemical fiber announced a refinancing plan. At that time, it planned to issue no more than 200 million shares at the issuing price of not less than 5.9 yuan / share, and the amount of financing would not exceed 1 billion yuan. Later, the company said that the plan would be stranded due to changes in the market environment. The size of the 1 billion 300 million yuan issue increased considerably compared with last year, with no more than 200 million shares issued, representing about 52.9% of the total 378 million capital stock.

"Such a large scale of issuance, per share profit It must be diluted. " Ms. sun, the investor, called the company's news hotline yesterday. In this regard, Huatai Securities researcher Ji Shi in his research report predicted that Jilin chemical fiber before 2011 diluted EPS was 0.35 yuan, according to the issuance of 200 million shares, diluted earnings per share was 0.23 yuan, 2012 and 2013 diluted earnings per share were 0.26, 0.55 yuan respectively. The current stock price corresponds to 19 times diluted in 2011 and 29 times earnings after dilution. "According to the plan for the issuance of Jilin chemical fiber, the additional projects can not be put into operation in 2012, and the capacity increase will be limited. Unless the price of products increases substantially, the performance will not increase significantly." Ji Shi said.

Investment projects have been questioned

"Is it so bold to invest so much money in bamboo fiber projects?" Miss sun is worried. In the preliminary plan, Jilin chemical fiber said that the 1 billion 335 million yuan of the raised funds will be 1 billion 135 million yuan for investment in bamboo pulp and bamboo pulp fiber integration project.

As a substitute for conventional chemical fiber products, the market price of bamboo pulp fiber is affected by the market price changes of conventional chemical fiber products, while the latter market price is mainly affected by market demand, oil and cotton price fluctuations. Therefore, unfavorable changes in market demand, oil and cotton prices will adversely affect the operation of Jilin chemical fiber and the economic benefits of investment projects.

It is worth mentioning that in the middle of this month, the Ministry of industry and industry announced the list of enterprises to eliminate backward production capacity in the industrial sector in 2011. The two production lines of 7500 tons of viscose staple fiber of Jilin chemical fiber were listed in the list and will be eliminated by the end of 2011. These two production lines account for 13.4% of the total business income of Jilin chemical fiber in 2010.

"The recent domestic cotton price callback, as a substitute for chemical fiber products such as viscose fiber has been significantly affected." An industry analyst said in an interview: "it is not too timely for large-scale financing to invest in bamboo fiber projects."