Recently, the main line of market performance has been clearly interpreted. The performance of many individual stocks in 2023 has skyrocketed, and today's stock prices have plummeted sharply.

Pien Tsai fell to a halt in the intraday

Among them, the “Chinese Medicine Mao” section opened sharply lower. It fell to a standstill during the intraday period, then rebounded slightly. By the midday close, it had fallen to a standstill at 197.56 yuan/share, with a total market value of 119.2 billion yuan.

According to Pien Tsai's 2023 performance report, the company's total revenue for the full year of 2023 was 10.035 billion yuan, exceeding 10 billion yuan for the first time, up 15.42% year on year; net profit to mother was 2,784 billion yuan, up 12.59% year on year; and basic earnings per share were 4.61 yuan.

In the fourth quarter, Pien Tsai's net profit was 375 million yuan, a year-on-year decrease of 10.7%, whileIn the first three quarters of last year, Pien Tsai's net profit increased year over year; it declined only in the fourth quarter.

Multiple stocks suffered a performance slump

Recently, several listed companies announced their 2023 performance reports/forecasts, and the company's stock price was also affected by this.

Good performanceFor example, after the Ningde Era hit a new low of 140.4 yuan/share yesterday, today's stock price surged 6%.

After the market yesterday, Ningde Times announced that it expects net profit of 42.5 billion yuan to 45.5 billion yuan in 2023, an increase of 38%-48% over the previous year, and net profit surpassing 40 billion yuan for the first time.

In response, Citi Dianping said that the initial results of the Ningde Era last year exceeded the expectations of some investors, and production may have begun to grow in March.

Poor performanceMany stocks such as Qingdao Zhongcheng fell to a halt at 20CM, and many stocks such as Helitai, Jingfeng Pharmaceutical Investment Holdings, MeiJim, Haizheng Pharmaceutical, and Bomin Electronics fell to a halt.

The net profit of the individual stocks mentioned above all experienced huge losses last year, and the amount of losses increased significantly compared to the previous year, so they may face the risk of delisting.

In 2023, Qingdao Zhongcheng lost 770 million yuan to 1,078 billion yuan, and lost about 153 million yuan in the same period last year. The stock may be subject to a delisting risk warning;

The annual “Thunder King” Helitai pre-lost 9 billion yuan to 12 billion yuan, and lost 3.466 billion yuan in the same period last year. The scale of losses further increased, and stocks may be subject to a delisting risk warning;

MeiJim had an estimated loss of 670 million to 930 million yuan and a loss of 440 million yuan in the same period last year. The net assets at the end of 2023 may be negative, and the stock may be subject to a delisting risk warning;

Bomin Electronics had an estimated loss of 450 million yuan to 740 million yuan, and net profit for the same period last year was 78.5846 million yuan. The main reason for the change in performance was goodwill impairment charges. The company made a total of 424 million yuan to 714 million yuan in various impairment preparations for the fourth quarter of the year.

As for the reason for the loss, the relevant companies all mentioned changing factors in the industry, especially the real estate, steel, electronics, and aquaculture industries. Furthermore, impairment of goodwill is also the main cause of explosions in some companies.

On the other hand, apart from the weakness in terms of fundamentals, the recent market is weak. Despite measures taken to protect state-owned enterprises at the policy level, the stock price performance of White Horse shares is not optimistic.

In this context, some negative information can easily be amplified by market sentiment, leading to a sharp drop in stock prices, such as the previous drug, Kangde.

Weakness in the market combined with fundamental concerns has led to a more extreme interpretation of the main performance line in the market. Companies that have performed well can resist the fight, and companies with poor performance have been drastically sold off.