Bull Group has earned 7.7 billion in five years and distributed 5.4 billion in dividends. Nguyen Brothers has over 100 billion in equity in 25 years
The small socket made a big business and brought huge wealth to the founder Ruan Brothers.
Twenty-five years ago, the Ruan Liping and Ruan Xueping brothers in Zhejiang started their own businesses and made sockets. 25 years later, the bull socket has been sold all over the world.
In February of this year, Bull Group (603195.SH), whose core product is Bull socket, successfully landed in the A-share market.
Nine months after listing, Bull Group has performed strongly in the secondary market. As of November 12, the stock price reached 198 yuan per share, which was 2.33 times higher than the issue price, and the market value was close to 120 billion yuan.
Currently, the Nguyen Brothers hold a total of 86.28%of the Bull Group, and their holdings are more than 100 billion.
The Changjiang Business Daily reporter found that in the past five years, the annual net profit attributable to shareholders of listed companies (abbreviated as net profit) realized by Bull Group has exceeded 1 billion yuan, which is about 7.7 billion yuan in total. In five years, the company used about 5.4 billion yuan in dividends, and the dividend rate exceeded 70%.
The large-scale realization of cash dividends is due to the company’s”not short of money” in addition to the continuous profitability of the Bull Group. As of the end of the third quarter of this year, the company’s monetary funds, structured deposits and wealth management products exceeded 8 billion yuan, while interest-bearing liabilities were only 700 million yuan.
Improve the product matrix and improve the performance of the third quarter
The adverse impact of the epidemic on the Bull Group has gradually disappeared, and the company has shown vigorous vitality.
In the first three quarters of this year, the Bull Group achieved operating income of 7.147 billion yuan, compared with 7.532 billion yuan in the same period last year, down 5.10%year-on-year. Net profit was 1.599 billion yuan, a decrease of 8.77%from 1.753 billion yuan in the same period last year. Net profit after deducting non-recurring gains and losses (abbreviated as non-net profit) was 1.550 billion yuan, a 9.92%decrease from 1.721 billion yuan in the same period last year.
On the whole, operating income, net profit, and non-net profit for the first three quarters all declined year-on-year. But judging from a single quarter, the third quarter has clearly improved.
In the first, second and third quarters of this year, the company achieved operating income of 1.380 billion yuan, 2.729 billion yuan, and 3.038 billion yuan, representing a year-on-year change of -37.96%, -0.67%, and 18.68%, and net profit was 170 million yuan. , 633 million yuan, 795 million yuan, compared with the same period last year changes -57.68%, -4.55%, 15.85%. In the first quarter, operating income and net profit fell sharply, the decline in the second quarter was significantly narrowed, and the third quarter turned positive and increased substantially.
The Bull Group once explained in the semi-annual report that the epidemic disrupted normal social order and production and operation plans. While actively fighting the epidemic, the company adjusted its business strategy in a timely manner based on the new economic situation and coordinated with suppliers , Dealers and terminal outlets develop together, and practice the development concept of”going a long way”. With the stabilization of the domestic epidemic, the recovery of the economy and consumption, and the gradual emergence of the company’s adjusted business strategy, the company’s operating performance in the second and third quarters has gradually improved.
In the first three quarters of this year, the company achieved net operating cash flow of 2.402 billion yuan, an increase of 18.27%year-on-year.
The Bull Group focuses on the R&D, production and sales of civil electrical products with converters and wall switch sockets as the core, mainly including converters, wall switch sockets, LED lighting, digital accessories and other power connections and applications Electrically extendable products are widely used in home and office applications.
The Bull Group was established in 1995. For 25 years, the company has adhered to market demand as the orientation and product quality as the foundation. Starting from the subdivision of”sockets”, it has continuously promoted functions, technology and design. Innovative, developed a large number of new products, and gradually expanded in the course of years of development, forming a business combination of category positioning such as”safe socket”,”decorative switch”,”eye-loving LED” and”digital boutique”.
For this reason, the company’s R&D investment has increased year by year. In 2015, its R&D investment was 151 million yuan, and in 2019 it reached 393 million yuan, more than doubled. In the first three quarters of this year, R&D investment was 270 million yuan.
As of the end of 2019, the company has 1,297 R&D personnel, accounting for 9.34%of the total number of employees.
Since this year, Bull Group has launched new products in the four product lines of converters, wall outlets, lighting and digital accessories, further improving the product matrix. In addition, the company continues to promote the research of”light” and innovation and application in the field of light effect design, and the product line is rapidly expanding.
At present, the company has launched new products such as T-bulb lamps, T5 and T8 tubes, office flat lights, flood lights, high bay lights and so on.
The market value increased by 83.2 billion in 9 months of listing
Strong sustainable profitability brought a sharp rise in stock prices to the secondary market. Bull Group Also actively carry out cash dividends.
On February 6 this year, the Bull Group successfully broke through the IPO and landed on the main board of the Shanghai Stock Exchange. The issue price was 59.45 yuan/share. On the third trading day of the listing, the stock price exceeded 100 yuan and closed 9 consecutive daily limits. By February 18, the stock price reached 183.54 yuan per share. Since then, the stock price fluctuated sideways and began to rise again in October, reaching 211 yuan per share on November 9, which is about 2.55 times higher than the issue price. In recent trading days, the stock price has adjusted. On November 12, the stock price closed at 198 yuan per share, which was 2.33 times higher than the issue price.
Along with the sharp rise in stock prices, the market value of the Bull Group has also increased sharply. On the eve of listing, the market value was 35.706 billion yuan based on the issue price. On November 12, the market value reached 118.922 billion yuan, an increase of 83.216 billion yuan in nine months after listing.
The Bull Group was founded by Zhejiang businessman Ruan Liping and Ruan Xueping. Up to now, the two directly hold 16.13%of the company’s shares, and Ningbo Liangji Industrial Co., Ltd. controlled by the two together holds 53.964%of the shares of Bull Group. . Therefore, the two directly indirectly hold 86.28%of the company’s shares.
Calculated based on the market value of the Bull Group on November 12, the total wealth of the Nguyen brothers was 102.606 billion yuan, an increase of about 71.8 billion yuan from the 30.807 billion yuan before the listing.
This is floating wealth, or it will continue to grow as the Bull Group continues to improve and its market value grows. The Nguyen Brothers also turned a lot of profits into their own income by promoting the cash dividend of the Bull Group.
A reporter from the Yangtze River Commercial Daily found that in 2015, 2016, and 2017, three years before listing, the Bull Group respectively distributed 500 million yuan, 500 million yuan, and 2.2 billion yuan in cash dividends, totaling 32 100 million yuan. In the past three years, the company achieved a total net profit of 3.692 billion yuan, with a dividend rate of 86.67%.
In 2019, the first year of listing, the Bull Group once again distributed large-scale gold dividends. The dividend plan is 3.8 yuan (tax included) per share, totaling about 2.28 billion yuan.
To sum up, in the past five years, the Bull Group has implemented 4 cash dividends, and distributed a total of 5.480 billion yuan in cash dividends, accounting for 71.42%of the 7.673 billion yuan accumulated net profit in the past five years.
The Nguyen Brothers, who hold more than 80%of the shares, have distributed 4.728 billion yuan through the aforementioned cash dividends.
The Bull Group’s daring to distribute cash dividends is due to the company’s good financial status.
As of the end of September this year, the Bull Group’s asset-liability ratio was 26.57%. At the end of the period, the company’s monetary capital was 2.281 billion yuan, financial products exceeded 1.7 billion yuan, and structured deposits amounted to about 4.5 billion yuan. Correspondingly, the company’s short-term loan is 700 million yuan. In the first three quarters of this year, the company’s financial expenses were -23 million yuan.
Holding a large amount of money, the Nguyen brothers used large cash dividends to turn the profits of the Bull Group into their own income through dividend distribution, which is not wrong. Based on the frequent high cash dividends, it may be an important reason why the Bull Group is favored by funds and the stock price has risen sharply.
The third quarterly report shows that the top ten tradable shareholders of Bull Group are all institutional investors, including Social Security Fund, Schroder Global Fund, Taiping Life Insurance, etc.
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This article is from the Changjiang Business Daily