Shenyin Wanguo: Ejiao EJC1 may be discounted

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　　 Shenyin Wanguo: Ejiao EJC1 may be discounted

Shenyin Wanguo released an investment report on July 18, believing that donkey hide gelatin EJC1 may be discounted after being listed for a period of time or even at the initial stage of listing. Shenyin Wanguo said that Ejiao EJC1 (031007. SZ) is a very deep in price warrant, with a leverage close to 1. At the beginning of listing, the trading price will fluctuate around the intrinsic value, and it is not surprising if it falls below the reference guide price (16.132 yuan) on the first day of listing (18 days). Ejiao EJC1 is equivalent to regular shares. Investors who currently own warrants and are optimistic about regular shares can continue to hold warrants on the whole. However, if the premium rate of Ejiao EJC1 is lower than - 2%, investors can sell the regular stock call warrants in proportion to unconditionally reduce the position cost; If the premium rate of Ejiao EJC1 is greater than 5%, investors can sell warrants to buy regular shares. Investors who are not optimistic about positive shares can sell warrants.

Shenyin Wanguo believes that volatility changes have little impact on the value of deep in price warrants, and the theoretical value of BS is only slightly higher than its intrinsic value. The calculation shows that the premium rate corresponding to BS theoretical value is 0-3% when the positive stock is 18-24 yuan and the amplitude is 60-100%. The leverage of deep in price warrants is close to 1, which is not very popular with warrant speculators. Referring to the positioning of deep in price warrants in history, Ejiao EJC1 is likely to be discounted after a period of listing and even at the initial stage of listing. At present, the warrant market is in a downturn, and there is a complete possibility of discounts. (Ejiao EJC1: the exercise price is 5.5 yuan, the duration is one year, the outstanding shares are 131 million, the exercise ratio is 1:1, the price of the regular shares is 21.41 yuan, and the reference guide price on the first day of listing is 16.132 yuan).

Shenyin Wanguo said that stocks can be regarded as warrants with an exercise price of 0. The lower the exercise price, the more like stocks the warrants are. Ejiao EJC1 is in a very deep price, equivalent to regular shares.