As the most active “cell” of China’s economy, the performance of listed companies can reflect the overall situation of macroeconomic development from one side, and their annual performance leads to the heartstrings of the market.
Recently, listed companies have successively disclosed 2021 performance forecast, performance express or annual report. From the disclosed situation, under the repeated covid-19 pneumonia epidemic and the complex and severe challenges of the international economic situation, the listed companies have maintained good performance growth as a whole, the number of high performance companies has increased, the transformation of old and new kinetic energy has accelerated, and the endogenous driving force of development has increased, reflecting the strong toughness and potential of China’s economic development.
high performance increase and more companies
What is the “gold content” of the transcripts handed over by listed companies? From the current situation, the overall trend of listed companies is consistent with the macroeconomic development. Many companies have increased their revenue and profits, which has effectively played the role of “stabilizer” of economic development.
The number of companies with high performance growth has increased. At present, more than 900 companies predict that the net profit will increase by more than 50% in the performance forecast, accounting for 20% of the companies that have disclosed the forecast.
From the perspective of individual stocks, among the disclosed performance forecast companies, the three companies with the highest expected profits are China Mobile, Petrochina Company Limited(601857) , Cosco Shipping Holdings Co.Ltd(601919) Xinjiang Zhongtai Chenical Co.Ltd(002092) , Guangdong Tonze Electric Co.Ltd(002759) , Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) , Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) , Focus Lightings Tech Co.Ltd(300708) , Beijing Compass Technology Development Co.Ltd(300803) and other companies that have disclosed annual reports have achieved good performance, of which Xinjiang Zhongtai Chenical Co.Ltd(002092) , Guangdong Tonze Electric Co.Ltd(002759) have achieved substantial growth.
From the perspective of industry, more than 40% of enterprises in iron and steel, nonferrous metals and mining industries are expected to achieve substantial growth in performance. “Under the influence of factors such as increased expectations of economic recovery and rising prices of some raw materials, the profits of cyclical sectors have increased.” Tian Lihui, Dean of the Institute of financial development of Nankai University, said.
Meanwhile, new energy, electronics, semiconductors, biomedicine and other emerging industries expected a large number of listed companies throughout the year, and the conversion of new and old kinetic energy accelerated. Li Zhan, chief economist of China Merchants Fund Research Department, said that under the background of “double carbon” goal and energy transformation, new demand application scenarios came into being, China Shanxi Guoxin Energy Corporation Limited(600617) accelerated the promotion, and photovoltaic, wind power, new energy batteries, energy storage and other industries ushered in great development opportunities. At the same time, under the epidemic, the global chip supply is limited, the demand is rising, and the profits of electronic industry companies with capacity expansion capacity are rising.
The realization of performance growth against the trend is also inseparable from the enterprise’s own efforts to meet difficulties and overcome difficulties. “Last year’s fluctuations in the market price of raw materials had an impact on the production and supply of the iron and steel industry. In the face of difficulties and challenges, we actively optimized the product structure, timely adjusted the product price, implemented energy conservation and emission reduction, cost reduction and efficiency increase, and achieved stable performance growth.” Qian Gang, Citic Pacific Special Steel Group Co.Ltd(000708) chairman of the board of directors, said that the company had disclosed the performance express and achieved an operating revenue of 98.574 billion yuan, a year-on-year increase of 29.43%.
industrial upgrading accelerated
“R & D investment increased by 30% year-on-year”, “with hundreds of patents and licenses”, “R & D team size of more than 100 people”… Opening the annual report of listed companies, the increase of R & D investment and the acceleration of technological innovation are a highlight.
Represented by the science and innovation board, listed companies continue to increase R & D investment and strive to improve the efficiency of innovative capital formation. For example, the performance express shows that in 2021, Amlogic (Shanghai) Co.Ltd(688099) it is estimated that the R & D cost will be 903 million yuan, an increase of 56.38% over the same period last year Traffic Control Technology Co.Ltd(688015) it is estimated that the R & D expenses will reach 272 million yuan, with a year-on-year increase of 56.83%, accounting for 10.53% of the current revenue, with a year-on-year increase of 0.93 percentage points, reaching the highest level in recent years.
With the increase of investment, the R & D achievements of listed companies have emerged one after another, effectively playing the role of innovation “leader” and industry “leader”. For example, Truking Technology Limited(300358) as one of the key enterprises in the field of medical equipment, the number of R & D personnel has continued to increase in recent years. At present, there are more than 1600 R & D technicians to develop key equipment for vaccine production, contributing to large-scale vaccine production and capacity improvement. In 2021, the total development volume of new products of CITIC Pacific special steel exceeded 2.5 million tons, with 313 authorized patents and 72 invention patents. The company has made substantial progress in the research and development of key materials, and many products have reached the international advanced level, filling the gap in China.
In the face of the complex and severe international environment and multiple tests such as the spread of the epidemic in China, last year China issued a series of support policies, including tax cuts and fees, to strive to create a good business environment, reduce enterprise operating costs and stimulate the vitality of innovation and entrepreneurship.
A number of enterprises mentioned in relevant announcements that tax incentives for high-tech enterprises, tax incentives for small low profit enterprises, and policy support such as increasing the proportion of additional deduction of manufacturing enterprises have helped reduce their operating costs and increase their performance. “In 2021, the company obtained nearly 100 million yuan of tax reduction, tax saving and tax rebate in terms of income tax research and development plus deduction, software tax rebate and export tax rebate.” Truking Technology Limited(300358) chairman and president Tang Yue told reporters.
At the same time of bumper harvest, the listed companies’ initiative to fulfill their social responsibilities has been continuously strengthened, and actively repay the majority of small and medium-sized investors. According to the data, in 2021, listed companies paid a total dividend of 1.67 trillion yuan, a year-on-year increase of 17%. The dividend scale reached a new record and far exceeded the refinancing scale of Listed Companies in the same period.
“Dividend is an important way for listed companies to repay shareholders. Under the condition of sufficient cash flow, timely and appropriate dividend of listed companies can establish a good image, release the signal of stable operation to the market, and promote the healthy and orderly development of the capital market.” Tian Lihui said.
challenges and opportunities coexist
Guided by the reform of the registration system, China’s capital market launched a series of important institutional reforms in 2021, including optimizing the pricing rules for the issuance of new shares and deeply implementing the new rules for delisting, which significantly improved the market adaptability and inclusiveness.
Delisting reform has achieved initial results. In November last year, the Shanghai and Shenzhen Stock Exchange issued guidance on the deduction of operating income of financial delisting indicators to further improve the enforceability of financial delisting indicators, and some “shell companies” will be cleared in time. At present, more than 10 companies “admit” that they have touched the delisting index in the performance forecast, which means that many companies will bid farewell to the A-share market after the disclosure of the 2021 annual report.
“The moderate increase of delisting enterprises is an important sign of the health of the market, which is conducive to the survival of the fittest, the development of a benign ecology of entry and exit, the further purification of the market, and more financial attention to high-quality enterprises, which can better realize the optimal allocation of resources.” Tian Lihui said.
This year’s capital market reform will also be advanced in depth to help the sustained and stable development of the economy. Earlier, Yi Huiman, chairman of the CSRC, said that he would put stabilizing growth, preventing risks and promoting reform in a more prominent position, find the correct positioning, scientifically grasp the relationship between “stability” and “progress”, comprehensively deepen reform and opening up, strengthen responsibility, strive to achieve “three stability and three progress”, highlight the “stability” of the market, the “stability” of policies and the “stability” of expectations, and Serving the high-quality development of the real economy reflects “progress” and actively contributes to the stability of the macro economy.
Throughout the annual reports of the two cities, at present, some companies encounter certain difficulties in production and operation, and the improvement of enterprise benefits is unbalanced and uncertain. Social concerns, how will listed companies operate this year?
Experts believe that challenges and opportunities coexist. On the one hand, the current external environment is becoming more complex and severe, and China’s development is facing triple pressures of shrinking demand, supply shock and weakening expectation; On the other hand, there are still many favorable factors and conditions to support development. The characteristics of China’s economic development, such as strong toughness, great potential and long-term improvement, have not changed. China has the foundation, conditions and ability to maintain stable, healthy and sustainable economic development. Listed companies will still maintain a good development momentum on the whole.
“In order to cope with the downward pressure on profitability, macro policies should be stable, effective and forward. Monetary policies should be flexible and appropriate, maintain reasonable and sufficient liquidity, and further reduce the comprehensive financing cost of enterprises; fiscal policies should ensure the intensity of fiscal expenditure and appropriately advance infrastructure investment.” Li Zhan said that enterprises should comply with the industrial development trend and realize low-carbon green management; Balance the balance sheet, make rational use of leverage and strictly control the interest bearing liabilities of enterprises; Focus on the main business and improve capacity utilization.
Tian Lihui believes that under the background of China’s continuous adjustment and optimization of macro policies and increasing support for economic development and enterprise growth, the development prospects of listed companies are considerable. Enterprises should grasp the favorable policies in time, actively adapt to market changes, accelerate transformation and upgrading and resource integration, work hard to improve their internal skills, meet difficulties and strive to improve their business conditions.
