This morning, the overall performance of the net breaking sector was strong. In the steel sector, Hang Zhou Iron & Steel Co.Ltd(600126) once approached the limit, Nanjing Iron & Steel Co.Ltd(600282) , Xinxing Ductile Iron Pipes Co.Ltd(000778) , Maanshan Iron & Steel Company Limited(600808) followed the rise, and Cosmos Group Co.Ltd(002133) , Black Peony (Group) Co.Ltd(600510) , Shanghai Trendzone Holdings Group Co.Ltd(603030) and other real estate infrastructure stocks rose strongly.
Based on the closing price on February 14, at present, a total of 282 individual shares in the two cities have a price lower than the net assets per share, that is, they are in a net breaking state, and the net breaking shares account for 6% of the total number of a shares.
experts believe that most stocks have a high margin of safety after falling below net assets. Once the market returns to the upward trend, it may bring good benefits.
The proportion of broken net shares is far lower than that of in 2008
According to the statistics of the reporter of Shanghai Securities News, compared with the most depressed period of the market in 2008, there are 282 broken net stocks, which is significantly higher than the 214 in the bear market in 2008. However, in terms of the total number, the number of A-share listed companies has reached more than 4700, and the proportion of broken net shares in the total number of companies is 6%, far lower than the 14% at the market low point in 2008.
Overall, the current industry sector distribution of net breaking stocks is similar to that in 2008, with no obvious difference.
banks, real estate and steel have become the net hardest hit areas
From the distribution of industry sectors, 282 net breaking stocks in the two cities are mainly distributed in real estate, banking, steel, transportation and other industries. Among them, the real estate sector has the most net breaking stocks, with 54 stocks on the list, followed by the banking sector, with 32 net breaking stocks.
However, in terms of the proportion of net breaking stocks in the total number of companies included in the industry sector, banks, real estate and steel have become truly net breaking hardest hit areas, accounting for 76.19%, 42.86% and 40.91% respectively.
This is similar to the situation in 2008, but new features have also emerged. The number of net breaking stocks in transportation, commercial trade and other industry sectors also began to increase. At the same time, the number of net breaking stocks in mining and other sectors with high net breaking incidence in 2008 decreased significantly.
Pre increase of 38 broken net shares
steel and high speed
Among the 282 net breaking stocks, 38 listed companies expect a significant increase in performance in 2021. The steel sector has the largest number of companies, up to 13, accounting for 34.21%.
Steel enterprises such as Anyang Iron & Steel Inc(600569) , Gansu Jiu Steel Group Hongxing Iron And Steel Co.Ltd(600307) all pointed out that although China’s steel industry faced multiple pressures such as “dual control of energy consumption” and power and production restriction in 2021, the overall operation situation of the industry was good. The company fully grasped the market opportunities and achieved a significant increase in its annual operating performance.
Statistics show that the simple average price earnings ratio of 13 steel companies is 5.65 times, and the valuation of Hunan Valin Steel Co.Ltd(000932) , Maanshan Iron & Steel Company Limited(600808) and other companies is less than 5 times. Moreover, according to the average dividend rate of recent three years calculated with the latest price, Sansteel Minguang Co.Ltd.Fujian(002110) , Baoshan Iron & Steel Co.Ltd(600019) and Maanshan Iron & Steel Company Limited(600808) dividend rates are as high as 9.24%, 4.88% and 4.41% respectively, much higher than the one-year fixed deposit interest rate.
There are also a large number of pre added companies in the transportation industry. Six listed companies in the high-speed sector are expected to have a significant increase in performance last year, with a simple average p / E ratio of less than 10 times and an average dividend rate of 3.47%.
Dividend yield is an important indicator to measure whether listed companies have high returns. It is the main way for investors in mature markets to obtain cash dividend returns on a regular basis. It is also an important indicator for listed companies to attract long-term investors.
