Red Star Development relies on subsidies to make a healthy stock price boom

In the third quarter of this year, the development of Red Star (600367, closing price of 17.39 Yuan) is definitely a share market, one of the most concerned companies. While the company's net profit of less than 5 million yuan in the first half was only mediocre, the company's share price soared by more than 130% in the third quarter, surrounded by rumours.　　Today, the company's three quarterly report finally exposed, in addition to the seemingly beautiful performance, who is behind the company's share price boom has become the focus of attention.　　The report shows that the Red Star development in the first three quarters to achieve operating income of 682 million yuan, an increase of 33.58%, to achieve a net profit of 14.4548 million yuan, compared to the same period in 2009 11.5788 million yuan loss has been greatly improved, the earnings per share also reached 0.05 yuan. In particular, the company's third-quarter performance compared to the first half of the year showed significant growth, although 245 million yuan of operating income is not eye-catching, but in accordance with the realization of the net profit of 9.9065 million yuan to calculate, but accounted for the first three quarters of the total profit of 68.5%.　　In addition to performance, as in the third quarter of the bull share price doubled, the Red Star development of the driving force behind the stock price has become a focus of attention. In the case of shareholders, the development of the Red Star's share price rose behind the hidden institutional funds. The announcement shows that the end of the three quarter of the company's circulation of shareholders in the first two seats are institutions occupy, of which the first entry into the shareholder list of the steady growth of the broad-spread of 8.7078 million shares, a leap into the company's first large circulation shareholders, in this round of stock prices can be said to be　　The other fund-the growth in the value of easy to grow from 6.68 million shares at the end of the second quarter, slipped to the current 6 million shares. In fact, in the face of substantial growth in performance, the Red Star Development in the three quarterly report did not explain too much, only to point out that the increase in operating income is mainly due to the company to increase product sales, the rise in product prices. But with revenues growing by only 30% per cent, the scale of performance growth is indeed surprising.　　The daily economic news reporter after viewing the company report, found that the company's performance is not fully benefited from the fundamental improvement. According to the three quarterly report, the Red Star development in the first three quarters of business income reached 8.6303 million yuan, which can be included in the reporting period of the performance of the government subsidy reached 8.4494 million yuan. In other words, it is under the impetus of millions of yuan government subsidy, the company can achieve such beautiful performance.　　This is somewhat out of tune with the company's share price boom. Looking back throughout the third quarter, the Red Star development of the stock price rise and the continuous spread of the gossip has a close relationship. Among them, the most interesting is the company's large-scale foray into lithium battery industry rumors. However, on September 30, Red Star Development has denied that, said the company's electrolytic manganese dioxide products are mainly used in a battery industry, of which, there are very few products for two times the power battery cathode materials, its sales revenue and profit accounted for a small. At present, two times power battery industry has lithium iron phosphate, lead acid, manganese acidLithium and other development direction, but there are such as technical route, safety performance, cycle life, cost control and other problems and difficulties, uncertainty and high risk, the final development direction, there is no conclusion.