LeTV's share price rose 6% at the opening of the largest high-resolution transfer plan

during the period from the announcement date of the four advance plans to the de-entitlement date announced by Leeco, only Leeco's share price fell in 2011, rising 13.2%, 44.3% and 99.5% in 2012, 2013 and 2015, respectively. In particular, after Leeco announced a high transfer plan of 12 shares for every 10 shares on March 31, 2015, in a short period of 31 trading days from March 27 to May 12, 2015, Leeco's share price rose by more than 99%. There is a veritable "fill-in effect".

the range of this high delivery is much higher than that of the previous one, and it is not known whether there will be a similar filling effect, but judging from the performance on February 13, Leeco had a straight-line rally that morning, and the stock price rose all the way from 35.62 yuan to 36.04 yuan, closing at 35.92 yuan.

the stock price of the company has always been the "lifeblood" of Leeco, and it is imaginative to announce the high delivery plan at this time. Assuming that there is a filling effect, who will be the most beneficial party?

first of all, there are those funds that enter the market at a high level. Leeco has the strength to announce the high transfer plan, which is directly related to the huge capital reserve balance. According to the company's 2016 quarterly report, Leeco's capital reserve balance reached 5.88 billion yuan, a sharp increase of 4.6 billion yuan compared with 1.213 billion yuan in the 2016 semi-annual report, which is also the main reason for Leeco's transfer. The capital reserve was generated from privately raised funds in August 2016. Leeco issued about 100 million shares at a share price of 45.01 yuan, raising a total of 4.7 billion yuan, according to the announcement on Aug. 5, 2016. the issuance targets include Caitong Fund Management Co., Ltd., Zhang Jianping, Castrol Fund Management Co., Ltd. And China Post Venture Fund Management Co., Ltd., with a lock-up period of 12 months. Now Leeco's stock price hovers around 35 yuan, if there is a rise in the share price of the filling effect, it will make these high-level funds unlock smoothly.

in addition, the beneficiaries may also include Fuchuang China, which has just been rescued by the hot line. According to Leeco's announcement, Fuchuang China held 170711107 shares of listed companies through Jia Yueting, which was transferred to Jiarui Huixin on January 13, 2017, accounting for 8.61% of the total share capital of the listed company. The purchase price was 35.39 yuan per share, and the total transaction consideration was 6.041 billion yuan. After the completion of the transfer, Sunac China has also become a veritable second shareholder of Leeco. However, it is unlikely that the deal will benefit China in the short term. Even calculated according to Leeco's closing price of 35.92 yuan on February 13, calculated on due diligence, transfer and other financial expenses, Sunac China's book is very likely to show losses, if the secondary market share prices do not respond before March 31, the investment is likely to be a drag on the performance of Chinese stocks in Hong Kong. Assuming that the popularity of the secondary market after this high delivery makes Leeco's share price rise, the situation will be completely different, and China, which has just completed the acquisition, will benefit from the rise in share price.

finally, perhaps the most important beneficiary is the injection plan of Letv Film, which has been stranded for a year. The injection promise of Letv Pictures dates back to the end of 2014, when Leeco promised to inject Letv Pictures within a year. On December 4, 2015, Leeco also "suspended trading" as scheduled for restructuring. Six months later, in May 2016, Leeco returned to the public eye with a 9.8 billion yuan Letv film injection plan. However, with the passage of time, whether it is the valuation of the media industry or the attitude of regulators, it is difficult to inject Letv Film Industry. Regulators sent letters asking about performance commitments and valuation, coupled with a money shortage rumored "havoc" suffered by Letv Holdings at the end of 2016, forcing LeTV to announce adjustments to Letv's injected valuation and price at the end of 2016.

the announcement on January 14 shows that Leeco is working to restart the injection of Letv Film Industry. According to the previous injection plan, of the transaction consideration of 9.8 billion yuan, Letv plans to issue 165 million shares to 44 Letv Film shareholders, including Letv Holdings, at a price of 41.37 yuan per share. in addition, it will pay 2.979 billion yuan in cash, accounting for 69.6 percent of the share payment. Therefore, the level of the stock price will directly determine how much cash Leeco still needs to pay, which will be a major focus of consideration for Leeco, which is "cherishing gold like life".

Leeco's 2016 performance forecast shows that the net profit of Leeco belonging to the parent company is expected to increase by 10% 35% compared with the same period last year, and the realized profit is about 630 million-773 million yuan, compared with 570 million yuan in the same period last year. High delivery does no harm to the company's capital operation, but from a financial point of view, it has no significant impact. People close to the capital market told the interface news that high delivery is often accompanied by the risk of speculation in the market, and at this time there may be the action of selling institutions at high prices and shareholders' high holdings. Investors need to pay close attention to the risks behind high delivery.

Edit: nancy