Foxconn's stock still fell below the issue price after one year of listing

15 Jul 2019

On July 3, 2019, Industrial Fed’s share price was 13.41 yuan, which was still in a broken state compared with the issue price more than a year ago.

As the "king of foundry" Foxconn's A-share listed company, Industrial Fulian said before the listing that it will provide products design, manufacturing and service technology with the core of the industrial Internet, and assist the industrial electronics manufacturing expo transformation of intelligent manufacturing to create "Intelligent Manufacturing + Industrial Internet" new ecology. From the beginning, Foxconn will be related to network equipment, telecommunications products, servers, storage, mobile phone components, precision tool manufacturing and robots.

Its wholly-owned and controlled 31 domestic and 29 overseas subsidiaries are all listed in listed companies. This "big basket" has an impact on the industrial electronics manufacturing expo rich coalition through absolute equity control. According to the prospectus, the share of equity reserved to other shareholders is only 5.7770%.

However, the stock price trend of the first anniversary of the listing shows that this industrial Internet road has not yet been recognized by the market. On June 29th, the Industrial Wealth Alliance held the first anniversary of the listing. Li Junqi, chairman of Industrial Fulian, said: "We are exploring the industrial Internet, transforming to the platform, and transforming the service industry from manufacturing. These transformations are long-term and have not been reflected in our electronics manufacturing expo revenue, so we may be a little too late."

In the year of the reorganization, the performance of the Industrial Fulian failed to meet the industry's imagination of the growth of the industrial Internet. However, through the introduction of the external brain, the construction team, and the push of the new electronics manufacturing expo platform, the Industrial Fulian has some actions on the transition path. Under the circumstances that 5G is coming soon and the construction of the Internet of Things is rampant, when will the industrial rich road of Industrial Fulian be effective?

The stock price broke, Chen Yongzheng left

The Industrial Fulian listed, the fastest record for the 36-day A-share. On June 8, 2018, the Industrial A-share A-share market was listed with an electronics manufacturing expo issue price of 13.77 yuan, up 44% on the day, reaching 19.62 yuan. In the following three working days, the Industrial Wealth Association continued to rise, reaching a high of 26.08 yuan.

However, this has also become the highest peak of its stock price. Four months later, the Industrial Wealth Fund fell below the issue price for the first time, and the lowest fell to 10.99 yuan. Since then, all the way to shock, although there is a electronics manufacturing expo counterattack, but still in a broken state.

At the end of October 2018, the Industrial Fulfillment announced a personnel change. According to the announcement, Chen Yongzheng applied for resignation from the chairmanship and directors due to job mobilization. The relevant work of the company he was responsible for has been handed over; Li Junqi, who was a director at the time of the election of the board of directors, became the chairman of the first board of directors and was added as a member of the strategic electronics manufacturing expo decision-making committee.

Chen Yongzheng’s resignation is different. Some insiders familiar with the Industrial Fulian told reporters that their departure was due to personal electronics manufacturing expo reasons. Some analysts also said that Chen Yongzheng’s departure has other reasons.

The industrial prospectus disclosed that Chen Yongzheng, born in 1956, had worked in companies such as Motorola, Microsoft, and NBA before entering the company. He also served as an independent director in several companies. Li Junqi, born in 1969, is different. He graduated from the University of Tokyo in Japan with a Ph.D. in mechanical engineering. He has long served as the chairman and general manager of Benchmark Precision (Huizhou) Co., Ltd., a subsidiary of Industrial electronics manufacturing expo Fulian, and is the head of Hon Hai's tool business.

During Chen Yongzheng's tenure as chairman, the share price of Industrial Fulian fell below the issue price of 13.77 yuan, and the market value shrank by more than 50%. Although the leadership has said that it does not pay attention to the short-term electronics manufacturing expo stock price trend, but has the Aura of the fastest record of A shares, the share price of Industrial Fulian has been receiving much attention from the outside world, and its concept of the main industrial Internet is the most important future of Foxconn. Ten years of strategy. Chen Yongzheng left because of "the crime of non-war" and became the reason that most electronics manufacturing expo respondents recognized.

Regarding the stock price issue, Li Junqi responded in an interview with reporters. "Although I am not good at stock trading, I should also respond to our stockholders. The impression of the outside world may still remain ten years ago, OEM or traditional manufacturing. We have not seen that we are promoting rapid electronics manufacturing expo transformation in the past few years. For example, we have invested in Sharp and Nokia to transform into a brand. We are exploring the industrial Internet, transforming into a platform, and transforming the service industry from manufacturing. These transformations are long-term and have not yet been Our revenue is reflected in our revenue."

But for the short term, Li Junqi said that the Industrial Financing should focus on its own strategic direction and focus on its electronics manufacturing expo core technology. The Industrial Internet is a protracted war and must be strategically prepared. For the purpose of listing, this is not much different from the previous management response, that is, attracting and retaining talent through equity incentives.

In the first quarter of 2019, Industrial electronics manufacturing expo Fulian launched a 225 million equity incentive plan involving more than 4,000 senior executives and core employees. Some brokerage analysts pointed out that this reflects the company's management's confidence and determination for long-term development, which is conducive to the healthy development of the company and the stability of the long-term management team.

Leading Exhibitors

electronic equipment China
Recommended Exhibition
China PCB show
SMT Exhibition
Join and Follow Us
Exhibition Hours
Day Time
Wednesday, August 26 10:00-17:00
Thursday, August 27 09:30-17:00
Friday,August 28 09:30-16:30
Visitor Hotline
International Callers:86-21-2231-7105
From within China:400-650-5611

We use cookies to operate this website and to improve its usability. Full details of what cookies are, why we use them and how you can manage them can be found by reading our Privacy & Cookies page. Please note that by using this site you are consenting to the use of cookies.