Year end inventory of A-Shares in 2021 – the market transaction amount broke a record high and Hubei Yihua Chemical Industry Co.Ltd(000422) was promoted to the annual “bull stock king”
It officially ends in 2021.
According to wind data, the annual turnover of A-Shares in 2021 exceeded 257 trillion yuan, breaking the highest in the history of 2015, with a total annual turnover of 253 trillion yuan, a record high.
Looking back in 2021, the A share market was active, but the sector was frequently in a hot market, the hot spot was dazzling, the industry was divided sharply, Baijiu and big consumption fell to the altar, social services, agriculture, household appliances and so on, but the overall performance of the electricity industry and new energy increased greatly.
On the whole, the market differentiation is obvious and the growth style is dominant. The Shanghai index rose only 4.8%, the Shenzhen Component Index rose slightly by 2.67%, and the gem index rose 12%, but the Shanghai 50 and Shanghai Shenzhen 300 indexes fell 10.06% and 5.20% respectively.
“Since the beginning of the year, the A-share market has been dominated by small and medium cap style. The support behind this comes from the superposition of the two scenarios at the same time.” The Tianfeng Securities Co.Ltd(601162) strategy team pointed out.
First, in the second half of the recovery, small cap stocks have greater performance flexibility due to the low base effect. In the second half of the post epidemic recovery in 2021, the performance of most companies has been generally repaired, and the low base also makes the performance flexibility of small and medium-sized companies more flexible. In addition, since 2016, the extreme differentiation between the trend and valuation of large blue chips and small and medium-sized companies has also been corrected on the premise of performance convergence, and the market of small cap stocks has further spread.
Second, the stock economy is in transition to an incremental economy. Policies and industrial cycles jointly drive the high growth of the “hard science and technology” sector. At the industrial level, many clues, such as energy revolution, intelligence, domestic substitution and arms demand, all point to the direction of economic increment.
Hubei Yihua Chemical Industry Co.Ltd(000422) promoted to “bull stock king”
With the end of 2021, the list of “bull and bear stocks” in the A-share market was officially finalized, and the pattern in the market also showed the trend of ice and fire. Looking at the trend of A-Shares throughout the year, the market differentiation is serious. Among them, with the support of industrial logic and performance, the plate at the peak of prosperity has the strongest trend, and the most representative is the new energy vehicle plate.
Since 2021, the new energy vehicle index (885431) has soared by 44.52%. Bull stocks in the sector have piled up. Individual stocks with stock prices soaring more than 4 times, such as Hubei Yihua Chemical Industry Co.Ltd(000422) , Lecron Industrial Development Group Co.Ltd(300343) , are more or less related to the new energy vehicle industry chain. Beiteri, Chongqing Sokon Industry Group Stock Co.Ltd(601127) , Youngy Co.Ltd(002192) new energy vehicle concept stocks also increased by more than 200%. The total market value of the leading Contemporary Amperex Technology Co.Limited(300750) exceeded trillion, and the market values of Yunnan Energy New Material Co.Ltd(002812) , Ganfeng Lithium Co.Ltd(002460) , Tianqi Lithium Corporation(002466) also exceeded 100 billion.
In addition, according to the statistics of the 21st Century Business Herald reporter, 323 enterprises with a share price increase of more than 100% in 2021, of which more than 40% are associated with the new energy industry or belong to the new energy vehicle sector.
However, in addition to these enterprises with performance support, the wind of speculation in the A-share market still exists, and concepts such as “yuanuniverse” and “smart car” fly disorderly. Some enterprises with delisting risk or individual stocks with poor performance rise in the irrational speculation of some retail investors.
As for individual stocks, excluding the new shares listed in 2021, the “king of bull stocks” in 2021 must be Hubei Yihua Chemical Industry Co.Ltd(000422) . Since 2021, Hubei Yihua Chemical Industry Co.Ltd(000422) has soared by 565.74%. As of December 31, 2021, Hubei Yihua Chemical Industry Co.Ltd(000422) has a total market value of 19.134 billion yuan.
It is worth mentioning that Hubei Yihua Chemical Industry Co.Ltd(000422) was originally a traditional agricultural fertilizer and chemical enterprise whose main business suffered losses year after year. Due to the tightening of environmental protection and safety, its subsidiaries have stopped production and closed down one after another, and the company’s main products include diammonium phosphate, urea and other chemical fertilizers, as well as PVC, caustic soda and other chemical products.
However, under the covid-19 epidemic in 2020, the state strengthened environmental protection and vigorously developed the new energy industry, which ushered in a rare development opportunity for the chemical industry that has been silent for many years. In particular, the continuous outbreak of sales of new energy vehicles drove the demand for lithium batteries, thus activating the capacity demand of upstream fluorine and phosphorus chemicals.
Since the second quarter of 2020, the bulk commodity market has opened a comprehensive bull market. The prices of bulk commodities represented by chemicals and black series have continuously hit new highs in the past few years or even in the past few years. The equivalents of the main products produced by Hubei Yihua Chemical Industry Co.Ltd(000422) diammonium phosphate, urea, polyvinyl chloride and soda ash have increased significantly, and the company continues to benefit.
In the third quarter of 2021, Hubei Yihua Chemical Industry Co.Ltd(000422) achieved a main revenue of 6.126 billion yuan, a year-on-year increase of 68.61%, and a net profit of 762 million yuan, a year-on-year increase of 183.88%; In the first three quarters, the main revenue was 15.475 billion yuan, a year-on-year increase of 58.26%, the net profit was 1.487 billion yuan, a year-on-year increase of 58997.10%, and the same period of last year was – 2.525 million yuan.
In addition, as one of the leading enterprises in phosphorus chemical industry, Hubei Yihua Chemical Industry Co.Ltd(000422) has the mining right with an annual output of 1.3 million tons of phosphorus ore in Yichang, Hubei and Sichuan. Earlier, Hubei Yihua Chemical Industry Co.Ltd(000422) also reached a cooperation intention agreement with Contemporary Amperex Technology Co.Limited(300750) subsidiary Ningbo Bangpu on the construction of integrated battery material supporting chemical raw materials project, and plans to cooperate in the field of new energy battery material supporting chemical raw materials.
The increase followed by Lecron Industrial Development Group Co.Ltd(300343) also took advantage of the east wind of new energy. The share price of Lecron Industrial Development Group Co.Ltd(300343) rose 488.93% in 2021. As of December 31, 2021, the total market value of Lecron Industrial Development Group Co.Ltd(300343) exceeded 19.556 billion yuan.
According to public information, Lecron Industrial Development Group Co.Ltd(300343) main business is divided into two parts: digital marketing and new chemical materials. Its subsidiary Hua’an new material acquired in 2019 is mainly engaged in the production and sales of fluorine-containing new material products, which are mainly used in the refrigeration industry and polyurethane industry.
In December 2021, Lecron Industrial Development Group Co.Ltd(300343) and Contemporary Amperex Technology Co.Limited(300750) signed a cooperation framework agreement, which agreed that from the signing of the agreement to the end of 2024, Contemporary Amperex Technology Co.Limited(300750) would purchase lithium battery grade PVDF products and associated auxiliary materials R142b from Lecron Industrial Development Group Co.Ltd(300343) .
It is worth mentioning that among the top five “bull stocks” in 2021, there are also speculation factors in the rise of share prices of some enterprises. A typical example is Andon Health Co.Ltd(002432) , which is a medical equipment enterprise. In 2021, the stock price of Andon Health Co.Ltd(002432) rose 440.87% in total. As of December 31, 2021, the total market value was 23.715 billion yuan. According to the third quarterly report of 2021, Andon Health Co.Ltd(002432) the revenue in the first three quarters was 790 million yuan, a year-on-year decrease of 50.82%; The net profit was 50.1280 million yuan, a year-on-year decrease of 86.19%. In addition, in the seven years before 2020, Andon Health Co.Ltd(002432) deduction of non net profit has been negative.
On November 7, 2021, Andon Health Co.Ltd(002432) announced that it was learned in the early morning of November 6, Beijing time that ihealth labs Inc, a U.S. subsidiary of the company, was authorized by the U.S. Food and drug administration. The New Coronavirus antigen self testing OTC Kit (gelled immunochromatography) is used for emergency use authorization, which can be sold in the US during the public health emergency and in the US / EUA countries.
Subsequently, the company’s share price entered the upward channel. However, during this period, because Andon Health Co.Ltd(002432) frequently responded on the investor interaction platform but failed to fulfill the obligation of announcement and information disclosure according to law, it received the supervision letter of Shenzhen Stock Exchange.
In addition to Andon Health Co.Ltd(002432) , there are Delixi Xinjiang Transportation Co.Ltd(603032) , Shenzhen Hemei Group Co.Ltd(002356) , Zotye Automobile Co.Ltd(000980) and Neoglory Prosperity Inc(002147) suspected of stock price speculation. These enterprises are facing delisting risk, but the company’s stock price soared by more than 300% in 2021.
chart 1: Top 10 A-share Bull Stock List in 2021 (as of December 30)
(data source: wind)
239 companies’ share prices plunged by more than 30%
As the saying goes, a few families are happy and a few families are sad. While the bull stocks are happy at the top, there are also many bear stocks lying at the bottom of the valley.
According to the reporter’s statistics, since 2021, the share prices of most enterprises in the A-share market (excluding the new shares listed in 2021) have risen, but in 2021, the share prices of 1498 enterprises have fallen, of which 239 have fallen by more than 30%. If you unfortunately step on these bear stocks, you will undoubtedly suffer heavy losses.
Among them, the “king of bear shares” belongs to Offcn Education Technology Co.Ltd(002607) . From the rising “Blue Star” to the “Bear King” with a sharp drop of 77.63% a year, Offcn Education Technology Co.Ltd(002607) investors must have mixed feelings.
In 2018, Offcn Education Technology Co.Ltd(002607) backdoor Yasha automobile successfully landed on the Shenzhen Stock Exchange and became the first civil servant examination and training institution in a shares. It has unlimited scenery, and its total market value exceeded 260 billion yuan at the highest time. However, the performance of Offcn Education Technology Co.Ltd(002607) has been amazing since 2021. In the first three quarters of 2021, Offcn Education Technology Co.Ltd(002607) had a revenue of 6.3 billion yuan, a year-on-year decrease of 15.29%, a net loss of 890 million yuan and a year-on-year decrease of 167.45%.
Among them, Offcn Education Technology Co.Ltd(002607) the most questioned content is its high refund. From January to September 2021, the company refunded 12.397 billion yuan, with a refund ratio of 65.81%. The annual revenue of Offcn Education Technology Co.Ltd(002607) 2020 is only 11.2 billion. On December 16, Offcn Education Technology Co.Ltd(002607) announced that it had received the notice of filing a case from the CSRC. It was officially filed by the CSRC for allegedly failing to disclose the information of connected transactions in accordance with the regulations.
Similarly, there is China Fortune Land Development Co.Ltd(600340) , second only to Offcn Education Technology Co.Ltd(002607) , whose share price has plunged by more than 70%. Since 2021, affected by covid-19 epidemic and macro policy factors, real estate enterprises have exploded intensively, China Fortune Land Development Co.Ltd(600340) is also one of them.
In January 2021, China Fortune Land Development Co.Ltd(600340) was downgraded by Moody’s, Fitch and other institutions because it failed to pay the principal and interest of two trust plans due to Zhongrong trust, totaling 1.12 billion yuan. Subsequently, the debt default was uncollectible.
In October 2021, China Fortune Land Development Co.Ltd(600340) initially drew up a debt restructuring plan for 219.2 billion financial debt. The core measures of the plan are asset sales and debt extension. It is expected to deal with 164.2 billion yuan of debt, and the remaining 55 billion will be undertaken by China Fortune Land Development Co.Ltd(600340) , extended and reduced interest rates, and gradually paid off through subsequent business development. The repayment period of these debts is up to 5-8 years.
On December 10, 2021, China Fortune Land Development Co.Ltd(600340) the debt restructuring plan was deliberated and adopted at the plenary meeting of the creditor Committee of financial institutions. On December 27, China Fortune Land Development Co.Ltd(600340) it was deliberated and adopted at the 17th meeting of the seventh board of directors.
chart 2: Top 10 A-share bear stock list in 2021 (as of December 30)
(data source: wind)
it is expected to remain a volatile city in 2022
With the end of 2021, the market also hopes for 2022.
The 21st Century Business Herald reporter interviewed and combed and found that most institutions predict that the A-share market will still be a volatile market in 2022, with structural opportunities. At the same time, in terms of investment strategy, many market participants believe that the new energy vehicle sector is still the main investment line concerned by institutions.
Haitong Securities Company Limited(600837) strategy analysis Xun Yugen team clearly pointed out that “it is highly probable that the amplitude of the market index will increase in 2022”, and reminded investors to “reduce expectations”.
It believes that the market amplitude will increase in 2022, the market is expected to make an upward breakthrough at the end of the year and the beginning of the year, and the annual yield is expected to be lowered; We need to be vigilant against inflationary pressures. In 2022, the US and Europe will have high economic growth, the prices of internationally priced commodities will rise, and the pig cycle will drive the rise of pig prices; In 2022, the market and value style are dominant. At the end of the year and the beginning of the year, finance, real estate, hard technology and consumption will be allocated in a balanced manner. Later, attention will be paid to rising prices and consumer services with reversal of difficulties.
Gf Securities Co.Ltd(000776) strategy analysis team Dai Kang also said: “in 2022, the profit growth rate of A-share enterprises dropped sharply, and the trend is clear. In ‘overseas stagflation (forcing the Federal Reserve to raise interest rates) -Under the transmission of “tight global supply chain – China’s export toughness – declining demand for steady growth”, the range of the “policy bottom” in 2022 will not exceed market expectations, and it is difficult to form effective hedging at the denominator. We judge that A-Shares will usher in the first pressure year since the “slow bull on the financial supply side” in 2022. ”
Huaxia Fund also believes that “profits are down, residual liquidity is up, risk appetite is stable, and it is expected to show a volatile trend in 2022.”
Huaxia Fund pointed out that after the second quarter of 2022, the matching degree of boom valuation order will increase. With the combination of relatively loose residual liquidity, the growth and stable growth style will be dominated again. Specifically, Huaxia Fund focuses on the direction of high growth expected in 2022 and relatively limited valuation expansion in the past two years, including the new energy industry. In addition, it also mentions the military industry, computer, food and beverage, pharmaceutical industry, etc.
Jiang Qian, general manager of Equity Investment Department of Dongfang fund, said: “the probability of A-share market will be in a shock upward trend. During this period, some periodic fluctuations will be brought about by overseas policies and changes in China’s fundamentals, but there will be no major risk at the index level.”
Jiang Qian predicts that the A-share index will rise slightly in 2022, even without a particularly significant market. “It is difficult for China’s capital market to have a comprehensive bull market in the future. It is more structural investment opportunities brought by industrial innovation, technological upgrading and fundamental changes in industrial structure.”
In terms of industry configuration, Jiang Qian said that she was relatively optimistic about emerging manufacturing industries in 2022, especially high-profile tracks such as new energy vehicles and photovoltaic. It is expected that in 2022, with the gradual easing of upstream raw material prices, the downstream demand for new energy vehicles will be further released. “Previously, the market was driven more by policy subsidies, and the competitiveness of new energy vehicle products in the future is the key to demand growth.”
Tan Changgui, founder and investment director of Shenzhen Longhong investment, said that there may be a wave of market in the first quarter of 2022, which is worthy of investors’ attention. “The market has fluctuated for a year in 2021 and there is no breakthrough. There may be a breakthrough point in 2022. Once the breakthrough is made, there may be a wave of unilateral market, which may not be very long, but at least it is much better than the opportunity of long-term shock in 2021.”
Tan Changgui believes that the breakthrough point in 2022 may be in spring, “In previous years, except for 2014 and 2015, the Shanghai stock index will basically rise to a certain extent. At present, I think it is possible to lay out the consumption, medical and other sectors that oversold in the early stage. After the decline in 2021, the valuation of these sectors has been repaired, but the rigid demand attribute has always existed, and there is limited room for further decline. In addition, in areas consistent with the national strategy, such as new energy vehicles and photovoltaic, There are also long-term opportunities. At present, some small and beautiful leaders in subdivided fields can be arranged. ”
(21st Century Business Herald)
