In 2021, the haze of the epidemic has not dissipated, the global environment continues to decline, and the attack of various uncertain factors makes the A-share enterprises move forward with a heavy load. Except for the tuyere industry, the market is cold as a whole. According to East Money Information Co.Ltd(300059) choice statistics, as of December 26 this year, 95% of the main funds of 4599 stocks have been in a net outflow state.
Under the external pressure, the internal support of enterprises is particularly important. The internal power of a company lies not only in the business development, but also in the operation measures and cohesion of shareholders and management. Generally speaking, the large-scale increase of corporate shareholders will send a favorable signal of good prospects to the market, boost investor confidence and lay a more solid financial support for future development; On the contrary, if shareholders frequently reduce their holdings, it will usually damage the company’s image, attack investor confidence and be detrimental to its subsequent development.
2021 is coming to an end. In this year, some enterprises have been greatly reduced by shareholders, which has made it worse. At the same time, some enterprises have increased their holdings against the market, transmitting shareholders’ confidence in the development of the company.
shareholders collectively “fled” chemical and pharmaceutical
According to the statistics of East Money Information Co.Ltd(300059) choice, as of December 26, Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Byd Company Limited(002594) , China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) and other ten enterprise shareholders had the largest reduction amount, all exceeding 2 billion yuan. After hedging the increased holdings of other shareholders, Lb Group Co.Ltd(002601) , Liancheng CNC, Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) and other ten companies ranked among the top in terms of net holdings. most of these companies focus on basic chemical, pharmaceutical, biological, computer and other industries. Among them, there are 4 enterprises in basic chemical industry and 3 enterprises in pharmaceutical biology. (special circumstances such as mutual transfer between shareholders and share repurchase have been excluded). (see table I and Table II)
Table 1: top ten enterprises with shareholder reduction amount in 2021
Table 2: top ten enterprises with net reduction amount of shareholders in 2021 data source: East Money Information Co.Ltd(300059) choice
In fact, the chemical industry has performed well this year. From the beginning of this year to December 26, the range of basic chemical components increased by 47.49%. Ranked third among 31 A-share industries.
Why do high prosperity industries frequently reduce shareholders’ holdings? On the face of it, the reduction of corporate shareholders is basically due to personal capital needs, but if we further explore this general reason, we will find that there are usually three reasons for shareholders’ reduction and cash out: either they are really in urgent need of cash back, or they do not have confidence in future development and want to stop leaving when the enterprise and industry are in decline, Or take advantage of the vigorous development of enterprises and industries to make profits at a high level.
In the past two years, affected by the mismatch between global supply and demand caused by the epidemic and the compression of supply by China’s double carbon policy, the chemical industry “takes advantage of the wind”. Among them, enterprises in the field of new energy materials enjoy the first dividend, and the subsequent growth momentum continues to be strong. Guosheng Securities said that it continues to be optimistic about R142b PVDF, iron phosphate, lithium iron phosphate, electrolyte and additives and other new energy industry chains and chemical materials industry chains.
Among the above four chemical enterprises, Lb Group Co.Ltd(002601) , Hoshine Silicon Industry Co.Ltd(603260) , Hubei Xingfa Chemicals Group Co.Ltd(600141) are all related to new energy materials. Their performance this year is commendable. The share prices of the three enterprises have also risen rapidly in the past two years. In the face of huge profits, it is indeed difficult to keep shareholders unmoved.
For the substantial reduction of shareholders, the above-mentioned enterprise investors remain optimistic. Investors believe that the reducing shareholders are non controlling shareholders, and the clearing of non controlling shareholders will make the company’s equity more concentrated in the hands of major shareholders, which is conducive to improving decision-making efficiency. These enterprises are in hot industries. Under the support of high scenery, the reduction of shareholders’ holdings will not significantly suppress the stock price.
The pharmaceutical and biological industry is another opposite. As we all know, the deepening of centralized procurement policy has seriously damaged the profit space and prosperity of the pharmaceutical industry. The data show that the pharmaceutical and biological industry increased by 48.24% in 2020, but the industry fell by 6.14% from December 26 this year. Even the last “pure land” CXO has experienced a sharp decline. The exodus of shareholders is proof of the sentence “a gentleman does not stand under a dangerous wall”.
however, some institutions believe that after this year’s valuation digestion period, some sectors are expected to pick up. For example, biological reagents and scientific instruments will usher in growth opportunities under domestic substitution.
strong cycle is still “sweet cake”
Despite the cold environment, many corporate shareholders still increased their holdings against the trend. According to the statistics of East Money Information Co.Ltd(300059) choice, as of December 26, Ping An Insurance (Group) Company Of China Ltd(601318) , Skshu Paint Co.Ltd(603737) , Hengyi Petrochemical Co.Ltd(000703) and other ten enterprises had the largest amount of shareholder increase. After hedging the reduction amount of other shareholders, Skshu Paint Co.Ltd(603737) , Hengyi Petrochemical Co.Ltd(000703) , Sanan Optoelectronics Co.Ltd(600703) and other shareholders of ten companies led the net increase in holdings, mainly through the formulation of employee stock ownership plans for collective increase in holdings of (excluding special circumstances such as mutual transfer between shareholders and share repurchase).
table III: top ten enterprises with increased shareholder holdings in 2021 data source: East Money Information Co.Ltd(300059) choice
Table IV: top ten enterprises with net increase of shareholders in 2021 data source: East Money Information Co.Ltd(300059) choice
although shareholders in the chemical industry frequently reduce their holdings, other strong cycle industries such as building materials, petroleum and petrochemical, non-ferrous metals and steel are still “sweet pastries” in the eyes of shareholders.
In terms of building materials, Boc International (China) Co.Ltd(601696) said that the building materials industry is expected to usher in a recovery as the central government has repeatedly released signals to relax real estate financing. From the perspective of corporate actions, many listed companies in the consumer building materials sector have also carried out stock repurchase and foreign investment recently, demonstrating their confidence in future development and their views on the bottom of current valuation.
In terms of petroleum and petrochemical industry, Shengang Securities said that the epidemic in 2020 led to the decline of world economy and demand, and the pressure of low oil prices put pressure on the overall performance of the petroleum and petrochemical industry. However, with the return of oil prices, the global economy and domestic and foreign demand continue to improve, and the supply-demand mismatch of multiple subdivided products continues to expand, high-quality targets are expected to usher in development opportunities.
In terms of steel and non-ferrous metals, according to Zheshang Securities Co.Ltd(601878) , in the future, under the background of “carbon neutralization” and “carbon peak”, the supply side will be restricted by industrial policies for a long time and become more rigid; On the demand side, with the steady growth of China’s economy within a reasonable range, the high-quality development of industrial manufacturing, and the simultaneous release of new and old infrastructure needs, it has the driving force for steady growth. Steel prices are expected to continue to operate in an ideal position, aluminum bottoms well, and copper is expected to rebound.
(stock market dynamic analysis weekly)
