Short-selling agency Valiant Varriors snipes Vitasoy, exaggerating profits, says stock price is only worth 10 yuan

Financial news

Written by: Yue Yueting

2020-01-16 12:30

Short-selling agency Valiant Varriors issued a report questioning Vitasoy (0345) for allegedly exaggerating its China and Australia business profits and capital expenditures, saying that the company's cash flow was poor, and that in December last year, the company's sales in China were worse than market expectations. Think that Vitasoy's stock price is only 10 yuan.

The news has not had a big impact on Vitasoy's stock price for the time being. The stock closed at 27.3 yuan at noon, down 1.44%, a potential drop of 57.8% from the target price proposed by the agency. "Hong Kong 01" has consulted Vitasoy regarding the report of short-selling organizations.

Valiant Varriors: Capital expenditure on Vitasoy is much lower than actual expenditure

Valiant Varriors said that Vitasoy claimed to have made a significant breakthrough in China in the early years, gained considerable market share, and began to attract market attention. The stock price soared from about 3.5 yuan in 2009 to a high of 46.5 yuan in 2019, and the market value increased 13 times. But the story has been oversold.

The agency continued to point out that there are good reasons to believe that the capital expenditure of Vitasoy is much lower than the actual expenditure, and that the financial statements of the stock and the data submitted to the China Industry and Commerce Bureau have a huge gap, reflecting the poor cash position of Vitasoy. Master Kong (0322), which is also a beverage stock, has dragged down gross profit margins due to rising raw material prices in recent months. However, Vitasoy has not seen any related impact. The gross profit margin has not risen to 50%, which is higher than the industry average of 35%. .

The report believes that the unsatisfactory sales and profit figures recently released by Vitasoy are just the tip of the iceberg. The actual situation is even worse. Therefore, Vitasoy's stock price is only worth 10 yuan.

According to the company's website, Valiant Varriors was founded by a group of investors who focus on companies that lack transparency and pricing errors.

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