Leidi.com Lei Jianping July 20
Giant Star Legend Group Co., Ltd. (abbreviation: "Great Star Legend", stock code: "06683") today's closing price was HK$7.75, an increase of 17.42% from the previous day;
Based on today's closing price, the company's market value is HK$6.2 billion.
The superstar legend is known as the "Jay Chou concept stock" of the singer. It was listed on the Hong Kong Stock Exchange last Thursday at an issue price of HK$4.25. If calculated based on the issue price, the stock price of Superstar Legend rose as high as 82.35% in a week.
Prior to this, Superstar Legend had postponed its listing. The issue price of Legend of Great Stars this time was lowered by up to 32.5% from the initial range. In the end, Legend of Great Stars introduced two cornerstone investors, Blink Field and NetDragon under Jiangsu BBK Real Estate Co., Ltd., to successfully go public.
During the listing process of Superstar Legend, Blink Field subscribed for US$15 million, and NetDragon subscribed for US$3 million, for a total subscription of US$18 million (approximately HK$140 million).
The final fundraising scale of Superstar Legend was reduced to 245 million Hong Kong dollars. In the original plan, the company had planned to sell 126.6 million shares at an issue price range of HK$5.5 to HK$6.3, with a maximum fundraising of HK$800 million. Because the market did not buy the concept of superstar legend, the listing had to be postponed.
General cornerstone investors and existing shareholders have a half-year sales restriction period, which means that the real circulation of Superstar Legend is only 100 million Hong Kong dollars.
Today, Hong Kong stocks opened higher and lowered as a whole, and the stock prices of Tencent and Alibaba both fell compared with the previous day, but Legend of Superstar bucked the trend and rose by 17.42%, with a maximum of more than 20%. In fact, the Hong Kong stock market has been turbulent in the past week, especially since this week, most stocks have experienced a tragic decline.
Against this background, the successive rises of Superstar Legend can only be said to be more hype than substance.
One of the reasons for the hype in the stock price of Superstar Legend is that after the epidemic prevention and control was lifted, various stars continued to perform offline concerts, and Jay Chou also held concert tours in the Mainland.
Tickets for Jay Chou's concert in Tianjin recently went on sale. Ticket prices have skyrocketed. On second-hand platforms, scalpers even sold two tickets with a face price of 2,000 yuan for 150,000 yuan. Jay Chou's offline activities have a stimulating effect on the performance of Superstar Legend.
On the other hand, according to the documents disclosed by the Hong Kong Stock Exchange on July 20, Zhong Jingyi, the independent director of Superstar Legend, increased his holdings of 150,000 ordinary shares of Superstar Legend at an average price of HK$5.6807 per share on July 13, worth approximately HK$852,100. After the increase in holdings, Zhong Jingyi's long position ratio rose from 0.00% to 0.02%.
Highly bound singer Jay Chou's annual revenue is 344 million
Superstar Legend claims to be the largest company in China's bulletproof beverage market, and it also claims to be a fast-growing new retail operator in China. However, although Superstar Legend uses the concept of new retail, it is a typical company that uses celebrity influence to sell peripheral products, and quickly realizes quick cash in the fandom.
The superstar legend business is highly tied to singer Jay Chou, focusing on selling health management products and skin care products through various channels (mainly through social e-commerce channels such as WeChat).
According to the prospectus, the revenue of Superstar Legend in 2019, 2020, 2021, and 2022 will be 86.585 million yuan, 457 million yuan, 365 million yuan, and 344 million yuan, respectively.
From the end of 2021, Superstar Legend has also cooperated with Liu Genghong and Liu Genghong's spouse, Ms. Wang Peiyun, to promote healthy diet and lifestyle as well as Superstar Legend's products through online short video platforms.
Superstar Legend's operating profits in 2019, 2020, 2021, and 2022 were 22.72 million yuan, 75.63 million yuan, 42.89 million yuan, and 64.9 million yuan; the adjusted profits were 22.72 million yuan, 80.36 million yuan, 69.93 million yuan, and 77.17 million yuan.
Specifically, the revenue of Superstar Legend in 2021 and 2022 will both decline. Among them, the revenue in 2022 will decrease by 5.8% compared with the previous year, but the net profit will increase by 51.3%, and the net profit after deducting non-profits will increase by 10%.
As of December 31, 2022, the cash and cash equivalents held by Superstar Legend were 183 million yuan.
Simply put, the superstar legend itself has no core competitiveness. Once the star's influence fades or activities decrease, it will have a huge impact on the company's development, which in turn will lead to a decline in revenue and profits.
In fact, during the listing process of Superstar Legend, many netizens questioned the Jay Chou family's "cutting leeks".
Jay Chou's mother is a shareholder
The core management of Giant Star Legend is mainly people from Taiwan, China. The executive directors are Ms. Ma Xinting, Dr. Qian Zhongshan, and Lai Guohui; the non-executive directors are Yang Junrong and Chen Zhong; the independent non-executive directors are Dr. Xue Jun, Yang, Dave De, and Ms. Zhong Jingyi.
Fang Wenshan is the chief cultural officer of Chinese pop music lyricist, music producer and superstar legend.
Before the IPO, Ms. Ma Xinting, the founder, controlling shareholder and executive director of Superstar Legend, held 27.6% of the shares; Yang Junrong, the founder and non-executive director;
Before the IPO, the ownership structure of legendary superstars
Lai Guohui, executive director and chief financial officer of Superstar Legend, holds 13.8% of the shares, He Zhicheng directly holds 13%, Ms. Zhang Jing holds 1.8%, Dr. Qian Zhongshan holds 1.4%, and Bradbury under Lu Siyuan holds 5.5%. Ma Shoucheng and Li Qiuyuan are the younger brother and sister-in-law of Ms. Ma Xinting respectively.
After the IPO, the ownership structure of legendary superstars
After the IPO, Ms. Ma Xinting held 24.9% of the shares, Yang Junrong and Jay Chou's mother Ye Huimei held 24.9%, and Chen Zhong held 8.3%.
Lai Guohui holds 12.5% of the shares, He Zhicheng directly holds 5.7%, Ms. Zhang Jing holds 1.7%, Bradbury holds 5%, Dr. Qian Zhongshan holds 1.2%, and other public shareholders hold 15.8%.
The cornerstone investor Blink Field held 2.6% of the shares in the listing process, and NetDragon held 0.7% of the shares.
Specifically, after listing, Lai Guohui, He Zhicheng, Dr. Qian Zhongshan, and Ms. Zhang Jing all have a one-year sales restriction period, and Bradbury has a half-year sales restriction period.
Among them, Bradbury is a superstar legend that invested 200 million Hong Kong dollars in February 2021. At that time, superstar legend was valued at 4 billion Hong Kong dollars after the investment. The cost per share of Bradbury is HK$5, a 17.7% discount to the issue price.
As a company with a small market share, Superstar Legend has the concept of Jay Chou, and it has just been listed, and the independent directors have increased their holdings, which also gives room for hot money to speculate.
An industry insider pointed out that whether the stock price of Superstar Legend can be supported depends on whether the capital market will still give a high market value after the ban is lifted.
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