Recently, geopolitical risks have led to increased concerns about stagflation and some fluctuations in global asset prices. Affected by this transmission, the A-share market is also in a state of shock and decline.
In this case, most companies in the A-share market submit value information announcements, including performance express, annual report, monthly operation data disclosure for the first time, and announcements related to shareholding increase and repurchase. In the view of the industry, the move of listed companies has the intention of boosting market confidence.
From March 7 to March 11, 232 companies in Shanghai stock market submitted value information announcements, 210 on the main board and 22 on the science and innovation board. Among them, 91 disclosed performance express reports and annual reports, involving Cosco Shipping Holdings Co.Ltd(601919) , China Galaxy Securities Co.Ltd(601881) , China Cssc Holdings Limited(600150) and other large and medium-sized companies; 96 companies disclosed their business data, involving many large and medium-sized enterprises such as Kweichow Moutai Co.Ltd(600519) , Tongwei Co.Ltd(600438) , Montage Technology Co.Ltd(688008) , Xinjiang Daqo New Energy Co.Ltd(688303) .
The first financial reporter found that some companies with beautiful annual data and monthly operating data have also shown more resistance to decline in recent stock prices, or even rose against the trend.
Many insiders believe that it is difficult to grasp the short-term market, and investing in A-Shares requires medium – and long-term thinking. China’s market valuation is at a relatively low level in history, and the inflationary pressure is generally controllable. In terms of specific layout, the stable growth field with short-term undervalued value may be relatively more resilient and pay attention to position control; If the macro risks are gradually resolved in the future, the market style may gradually return to growth.
listed companies frequently report good news
Since the beginning of this year, the A-share market has maintained a wide shock in February after a substantial adjustment in January, but it has fluctuated downward sharply in March. Among them, it began to fall sharply on March 7, rebounded on March 10 and March 11, but fell again on March 14.
From March 7 to March 14, the Shanghai Composite Index fell 6.50%, the Shenzhen composite index fell 7.35% and the gem index fell 6.48%.
Under the weak market sentiment, most listed companies in the A-share market have issued value information announcements.
From March 7 to March 11, 232 companies in Shanghai stock market submitted value information announcements, 210 on the main board and 22 on the science and innovation board. Among them, 91 are performance letters and annual reports, 96 are business data, 45 are disclosure of major contracts, project progress and other matters, and 80 companies submit announcements related to shareholding increase and repurchase.
Among them, 91 companies disclosed performance express and annual reports, involving Cosco Shipping Holdings Co.Ltd(601919) , China Galaxy Securities Co.Ltd(601881) , China Cssc Holdings Limited(600150) and other large and medium-sized companies Cosco Shipping Holdings Co.Ltd(601919) announced that the revenue and net profit attributable to the parent company in 2021 increased by 94.85% and 799.52% year-on-year respectively China Galaxy Securities Co.Ltd(601881) said that the revenue and net profit attributable to the parent company in 2021 increased by 51.07% and 42.87% respectively.
96 companies disclosed monthly operating data, which is the first monthly operating data of Listed Companies in the A-share market. Among them, from January to February 2022, Kweichow Moutai Co.Ltd(600519) total operating revenue and net profit attributable to parent company increased by about 20% year-on-year Montage Technology Co.Ltd(688008) realized that the revenue and net profit attributable to the parent company increased by about 211% and 157% respectively year-on-year Tongwei Co.Ltd(600438) achieved a year-on-year increase of about 130% and 650% in revenue and net profit attributable to parent company respectively.
In addition, the revenue and net profit of Beijing Huafeng Test & Control Technology Co.Ltd(688200) , Tongwei Co.Ltd(600438) , Montage Technology Co.Ltd(688008) , Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) and other companies in the first two months of this year exceeded that in the first quarter of last year.
In terms of share price, although the A-share market has fallen in a large area, some companies with beautiful annual data and monthly operating data have also shown resistance to decline or even rise against the trend in the recent stock price.
For example, from March 7 to March 14, Montage Technology Co.Ltd(688008) fell by 2.58% and Kweichow Moutai Co.Ltd(600519) fell by 4.52%, both outperforming the market Beijing Huafeng Test & Control Technology Co.Ltd(688200) rose 1.49%, and Tongwei Co.Ltd(600438) rose 3.04%.
In the view of insiders, companies with high fundamentals and good industry prospects still show resistance to decline or stock price rise when the stock market falls in the short term. In the long term, the trend is generally upward, so investors can choose high-quality leading stocks or high-quality leading funds for value investment.
“When the short-term market falls, keeping a low position and avoiding net worth retreat is a short-term hedging strategy. But in the long run, we still need to be good shareholders of the company or hold high-quality funds in order to win the victory of long-term investment.” Yang Delong, chief economist of Qianhai open source fund, also said.
“need to have medium and long-term thinking”
How long this round of decline in the A-share market will last, how to change the style of the future market, and what areas of investment opportunities need to be paid attention to are all issues that investors pay more attention to at present.
“It is difficult to grasp the short-term market, especially when it is impacted by external factors. Therefore, many times we need medium and long-term thinking.” Haitong Securities Company Limited(600837) chief economist Xun Yugen said that in the next two years, for example, the current position of A-Shares is relatively low. In the long run, the probability of earning money in this position is still very large. If the capital is not in urgent need, it can withstand the fluctuations in the middle and focus on the long term, it may be more able to obtain higher returns.
“In the short term, we still need to wait patiently for the bottom of sentiment. In the medium term, the market may need to wait for the easing of price pressure and the peak of inflation.” China International Capital Corporation Limited(601995) also pointed out in the research report.
China International Capital Corporation Limited(601995) believes that the Chinese market may be relatively resilient in the global market in the medium term, which is mainly reflected in three aspects: first, China’s current growth is more favorable than overseas policy cycles; Second, the absolute valuation of China’s market valuation is at a relatively low historical level, and the relative valuation is also attractive compared with other major markets; Third, China’s inflation pressure is generally controllable.
Haitong Securities Company Limited(600837) chief economist Xun Yugen also said that as the external disturbance factors gradually fade, the internal factors will become the positive energy affecting the trend of a shares. The shock pattern of the whole year and the correction in the past two months have left room for the subsequent market. In the “two sessions”, the government work report put forward that the annual GDP growth target is about 5.5%, which is the upper edge of the market expected value of 5% ~ 5.5%, and the relevant steady growth policies continue to work.
In China International Capital Corporation Limited(601995) view, in the short-term market, under the background of macro risks and uncertainties, the undervalued “steady growth” sector may have relative benefits. If the supply risk at the macro level is gradually alleviated in the future, the growth expectation is gradually stabilized, and the style may gradually return to the fields related to the growth style with high momentum; On the other hand, the manufacturing industry in the middle and lower reaches has fully responded to the risk of rising costs in the near future. If there is a peak signal in the upstream price in the future, the manufacturing industry in the middle and lower reaches is expected to usher in a turnaround driven by profit reversal.
“Focus on the value sector and grow.” Xun Yugen analyzed that, on the one hand, banks and real estate with undervalued and low allocation may continue to rise in the future, but there may be little room for excess returns. At present, great finance should pay attention to securities companies, which benefit from policies and make good profits.
“On the other hand, under the catalysis of policies and performance, growth is expected to gradually dominate. However, there will be differentiation within the growth. Combined with the fundamental differences within the current growth industry, policy support and early performance, we believe that the next low-carbon economy, stroke power, photovoltaic, UHV, cloud computing and data center in the digital economy deserve attention.” He also said.
