Key investment points:
2022 is the decisive year of the "three-year action plan for state-owned enterprise reform". At the same time, state-owned enterprise reform is also a typical sector in line with the "three low" (undervalued value, low position and low position). Relevant opportunities are worth focusing on. This paper will start from two lines: equity incentive and integration and transformation.
Actively pay attention to the reform of state-owned enterprises
As of March 11, 2022, 425 central enterprises and 857 local state-owned enterprises accounted for 9.0% and 18.1% respectively among the 4738 enterprises with all a shares, with a total market value of 24.34 trillion and 18.36 trillion respectively, accounting for 26.9% and 20.3% of the market value of all A-Shares respectively. In terms of industry distribution, as far as central enterprises are concerned, they rank first in the number of industries such as national defense and military industry, machinery, power utilities, basic chemicals and computers, and in the market value distribution of banking, communications, non bank finance and power utilities; As far as local state-owned enterprises are concerned, they rank first in the distribution of basic chemical industry, electric power and public utilities, transportation, real estate, media and other industries, and in the market value distribution of food and beverage, non bank finance, banking and basic chemical industry. Under the "three low" allocation strategy, the reform of state-owned enterprises in 2022 deserves attention. First, 2022 is the final year of the three-year action of decisive victory in the reform of state-owned enterprises; Second, the characteristics of most central enterprises and local state-owned enterprises fit the "three low".
Clue 1: equity incentive
As far as central enterprises are concerned, as of January 20, about 68 central enterprises have set the profit or income performance target of equity incentive in 2022, which is worthy of attention. One of the three major tasks of state-owned enterprise reform in 2022 is to make full use of the three-year action plan. China has medium and long-term incentive policies such as equity incentive of holding listed companies, equity and dividend incentive of state-owned science and technology enterprises and excess profit sharing, so as to expand the coverage and application depth of the policies. From the perspective of central enterprises that have implemented equity incentive at present, about 68 central enterprises have set roe or profit growth rate or revenue growth rate targets in 2022. Among them, the target includes about 54 roes, 43 profit growth rates and 25 revenue growth rates.
Clue 2: integration and transformation
The three-year action plan emphasizes that state-owned enterprises are close to the high-quality industrial chain and encourage state-owned enterprises to layout emerging industries. Under this background, relevant central enterprises are expected to obtain valuation remodeling while improving their performance. The special promotion meeting on the three-year action of state-owned enterprise reform pointed out that state-owned enterprises should focus on the key links of the industrial chain and innovation chain, enlarge the function of state-owned capital, develop to the high end of the value chain, cultivate industry leaders, and enhance the control and driving force of the industrial chain and the efficiency of upstream and downstream resource allocation through mergers and acquisitions and building industrial alliances jointly participated by all kinds of ownership enterprises. In 2021, China Star network, China electric equipment, China logistics group and China rare earth group were established, Sinochem Group and China chemical industry group were jointly restructured, CETC was restructured, China Putian was restructured, Anshan Iron and steel was restructured, the asset restructuring of the national pipe network group was successfully completed, the specialized integration of coal and medicine was deeply implemented, and the innovation platform of tianyiyun and marine engineering equipment was accelerated. At present, some central enterprises in traditional industries have deployed in the field of new energy. Under the background of carbon neutralization, while the fundamentals continue to improve, they are also expected to be re valued.
Risk tip: the promotion of industrial transformation is not as expected; The performance of relevant enterprises was lower than expected.
