The 100 billion giant crashed! Triggered by PPT?

Gelonghui Finance ·  12/04/2023 17:07

Gold, luxury goods, ice and fire are two heavens!

Leading 100 billion CXO companies opened their doors this morning and plummeted 23.76%, and their market capitalization evaporated to HK$44.04 billion.

The reason for the stock price crash came from a PPT posted by the company itself on its official website...

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The stock prices of the 100 billion giants have plummeted! Triggered by PPT?

Pharmaceutical Biotech plummeted 23% in early trading and trading was suspended at 10:49 a.m. The main reason for the sharp drop in stock prices was that the company issued a business update this morning and lowered its revenue forecast for 2023.

This morning, Pharmaceuticals Biotech issued an announcement on the Hong Kong Stock Exchange, reminding investors to pay attention to the company's latest business information posted on the company's website.


(Source: Pharmacology Biotech's official website)

Pharmaceutical Biotech updates its performance outlook in the form of a PPT on its official website, which states:

1. Affected by biotechnology financing, the industry expects single-digit growth in the next two years;

2. In the past ten years, Pharmaceutical Biotech has achieved a 3-4 times growth rate in the industry, and the future target is 2 times the growth rate of the industry;

3. At the beginning of this year, the company set a target for the company to grow by 30% in 2023 based on the assumption that the industry will grow 15%. Although the growth rate of the industry has declined to single digits, we still expect an increase of more than 36% in 2023, excluding COVID-19 projects;

4. However, due to the rapid decline in COVID-19 revenue, our overall revenue including COVID-19 is already a high base, and business performance may fall short of expectations when the industry reaches a 2x growth rate. In particular, the reduction in the number of new D-side projects led to a decrease in revenue of 300 million US dollars, and the deferred M production revenue caused a decrease in revenue of 100 million US dollars. This is the main reason why this year fell short of expectations;

5. We invest in global production capacity to support future growth. The decline in production capacity at these global sites led to a loss of US$100 million in gross profit in 2023. The rise in new production capacity and the slowdown in revenue growth will all cause the company's profit to decline.


Pharmaceutical Biotech has fallen by more than 44% this year. The latest stock price is 33.15 yuan. From the high of 148 yuan per share set in July 2021, it has already fallen by more than 77.6%.


(Source: Tono Flush)

It is worth noting that Pharmaceuticals Biotech was the Hong Kong stock that increased the most in public fund holdings in the third quarter of this year.


(The content of this article is a list of objective data and information and does not constitute any investment advice)

With this sudden crash, the fund manager also fell into a trap.


Gold, luxury goods, ice and fire are two heavens!

Gold stock ETFs rose nearly 3% today, and gold ETFs have followed suit. Since this year, gold ETFs have risen by more than 15%, making them a better performing variety in the market.


Since September, many public funds such as Huaxia, Guangfa, Fuguo, ICBC, and Credit Suisse have reported a number of gold-related products, including QDII products that track peripheral gold indices, as well as ETF products that track China's gold index.

Specifically, the S&P gold producer ETF under Wells Fargo Fund is a QDII product that tracks gold indices in peripheral markets, while the remaining few companies track the China Securities, Shanghai, Shenzhen, and Hong Kong gold industry stock indices.

Up to now, in the Shanghai-Shenzhen-Hong Kong Gold Stock Index ETFs, products owned by Yongying Fund were established at the end of October, products owned by Huaxia Fund are currently being distributed, and publicly traded ETFs such as Guangfa, Harvest, ICBC Credit Suisse, and Huaan have been declared for approval.

The price of gold rose sharply. COMEX gold futures reached the 2,150 US dollars/ounce mark, and spot gold rose to 2,144 US dollars/ounce, all of which continued to hit record highs.

Why has gold been so popular in the past two years? There are two main reasons. On the one hand, global inflation is rising, and on the other hand, central banks are getting rid of their dependence on the US dollar.

According to the global gold demand trend report for the third quarter of 2023 released by the World Gold Council, gold demand in the third quarter (including OTC transactions) was 1,267 tons, the highest in the past three years. The Gold Council said that central banks around the world continue to have a strong gold buying trend, providing support to gold demand. Central banks around the world made a net purchase of 337 tons of gold in the third quarter. Since the beginning of 2023, the central bank's demand for gold purchases has reached 800 tons, setting the latest record since this statistic.

On the one hand, gold demand is strong, and on the other hand, the luxury goods market is showing performance. Due to concerns about weak demand in the luxury goods industry, Morgan Stanley analyst Edouard Aubin downgraded the rating of LVMH, the world's largest luxury goods group, to “hold on and watch” on Friday. The analyst has maintained the company's “increased holdings” rating since January 2018, the first downgrade in 6 years.

Jean-Jacques Guiony, chief financial officer of LVMH, said after the publication of the three-quarter report that after three years of glorious years of rapid growth, the company's growth is moving towards more in line with the historical average. Referring to the future of luxury goods, Jean-Jacques Guiony believes that high-net-worth customers around the world are facing some pressure. In particular, consumption in the US has been very weak since this year.

Earlier, HSBC Holdings lowered the target price for the entire luxury goods industry, saying that European luxury stocks could not withstand the recession. UBS also recently downgraded LVMH's rating to “neutral,” believing that its prospects of outperforming the market will weaken somewhat.

LVMH's stock price fell about 23% from its record high in April, and has only risen by about 2.5% since this year.


The bears lost 80 billion US dollars, and retail investors in the US stock market have taken action!

The NASDAQ rose 10.7% in November and the S&P 500 index rose 8.92%, both recording the best monthly performance since July 2022. The S&P 500 index recorded the biggest increase in the same period in November since 1928. In the A-share market, ETFs that track the NASDAQ and S&P 500 have performed well.


According to data from S3 Partners LLC, at market prices, bears lost more than $80 billion this month. Just when people are sure that the Fed will cut interest rates next year, market sentiment has been fueled by a wave of climax, with retail investors in the US stock market taking action!

According to the data, retail investors account for about 18% of the daily trading volume of US stocks. According to a retail survey conducted earlier, 93% of US traders plan to continue injecting capital into the stock market until the end of the year, and will invest even more.

According to a survey by the American Retail Investors Association, the bullish position of retail investors has reached its highest level since July, close to the highest level since April 2021.

According to data from some investment platforms and online discussion statistics, retail investors are pouring into the most popular giant companies in the market, while also buying riskier underperforming stocks.

In response, relevant analysts warned that although retail investors following the trend are confident that US stocks will rise further, large institutional investors have begun to feel some doubts.

In 2021, retail investors in US stocks taught big institutions a hard lesson. They gathered on social media to plan large-scale empty markets for companies such as Gaming Station and AMC Cinema, driving some stocks to continue to soar to several hundred US dollars.

At the time, many agencies were beaten and had no power to fight back. Now, this group of aggressive retail investors is here again. “The Book Report” (The Book Report) author Peter Boockvar quoted the American Investors Association (AAII)'s latest reading report as saying, “Strictly from the perspective of reverse investment sentiment, now is the time to be cautious about the short term. The optimism of retail investors has now reached its extreme.”

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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