JD Capital Earned 13-fold Returns Due to Increasing Stock Price of FEITIAN


Since July, new stocks like FEITIAN, Xuelang Environmental Technology, Lianming Machinery, Yixintang and Forbon Technology surged to their daily trade limit, among which, FEITIAN has reached more than ten limits since June 26th. It became the second one-hundred-yuan stock after Maotai when its price exceeded one hundred yuan on July 8th. On July 11th, it closed at the price of 136.13 yuan/share.

FEITIAN is engaged in the R&D, production, sale and service of identity recognition-based information security products, including ePass USBKey, OTP dynamic tokens, ROCKEY software dongles, intelligent cards and card readers under the system of FT-COS.

JD Capital’s Stocks Gained Extra High Book Returns

According to the prospectus of FEITIAN, JD Capital’s three funds, Xiamen Yingtai Jiuding Investment Co., Ltd., Yuxin Jiuding (Xiamen) Investment Management Center and Xiamen Baojia Jiuding Investment Management Center, bought 6% of shares of Feiyuan Technology at the price of 9.53 yuan/share in 2010. Now the figure was 136.13 yuan/share on July 11th. The three funds would gain over 13-fold book returns.

Since China reopened its IPO market, many investees of JD Capital have been listed. In February, UTour Travel (002707) climbed to its trade limit for ten consecutive days with price rising 3 times. On June 16th, UTour Travel made suspension notice with a stock price of 90 yuan. JD Capital gained an exit return of 13 times as its second largest shareholder.

JD Capital stated that the ID information security market would grow with the development of internet, especially the fast development of commercial applications. FEITIAN’s products have been widely used in sectors of bank, securities, telecommunication, insurance, tax, custom, government, military, commerce, education, entertainment, consumption, transport and medicine. As the ID authentication and software service supplier with most widely service areas and most bank customers, it has a very bright development space.

FEITIAN Achieved Great Profits 

FEITIAN’s business revenue was 340 million yuan, 605 million yuan and 846 million yuan in 2011, 2012 and 2013, a CAGR of 57.83%. Its USB-Key products topped third in terms of market share among the whole industry in 2013.

In its prospectus, the capital raised by FEITIAN would be used in seven directions including technology upgrade of USBKey products, product R&D and industrial projects and the R&D and industrial projects of dynamic token authentication systems. It’s estimated that 6 projects would make revenue of 856 million yuan and net profits of 156 million yuan in the coming ten years, which were equal to another FEITIAN’s revenue.

Analysts said that the reason why FEITIAN could become the most popular stock since June was because investors were optimistic about information security sector.

 “Currently, the security problems of China’s IT equipment and systems have been extremely concerned. The localization of information products has been raised to the national level. Under such background, the localization of IT industry will be sped up, especially the de-IOE of government and central enterprises. China’s network security industry will usher a new round of increase.” A securities analyst said.