Since March, institutions have paid more attention to listed companies and accumulated strength for long-term investment. The reporter of Securities Daily took “research” as the keyword. According to the statistics, based on the announcement date, 21 A-share listed companies disclosed the investigation announcement of institutions on March 16 alone (as of 18:00).
Dong zhongyun, chief economist of AVIC securities, told the reporter of Securities Daily that on the one hand, the “Q & a” of institutional research sends a positive signal; On the other hand, the fundamentals of listed companies continue to improve and their performance grows steadily. It is expected that after the short-term valuation adjustment, they will have more investment value. The optimistic prospect urges institutions to increase their shareholding ratio.
performance “evaluation” becomes a “must answer”
From the “Q & a” situation, the overall performance of most listed companies has increased steadily and will still be good in the future; Some listed companies take the initiative to clarify market misunderstandings, hoping to calm investors’ anxiety.
The reporter combed the announcements disclosed by the above 21 companies and found that the “2021 performance description” and “2022 performance outlook” almost become the “required questions” for the company to reply to the research institutions.
according to the performance express disclosed on March 15, 1993 3, the company achieved an operating revenue of 173863 billion yuan in 2021, with a year-on-year increase of 53.89%; The net profit attributable to the parent company was 5.106 billion yuan, a year-on-year increase of 119.26%; The net profit deducted from non parent company amounted to 4.103 billion yuan, with a year-on-year increase of 276.24%. As for the reasons for the record high total revenue and net profit, the company said, “the increase in revenue is mainly due to the rise in the market price of copper and cobalt and the growth in the scale of base metal trading business. The increase in various profit indicators is mainly due to the rise in the price of the company’s main products, the increase in output and the measures to reduce costs and increase efficiency.”
In response to the revenue growth target of 2022 that the market is concerned about, Eastroc Beverage (Group) Co.Ltd(605499) replied that the company expects the year-on-year growth of operating revenue in 2022 to be no less than 15.00% Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) it is estimated that the revenue growth rate in 2022 will be about 20% to 30%.
Dong zhongyun told the reporter of Securities Daily that some listed companies have released the operating data from January to February 2022, and most of the companies’ performance is better than expected, which is also confirmed by the feedback of institutional research. In the context of the international environment and the impact of the epidemic, the global economy is shrinking, and China’s economy has entered a development pattern in which China’s big cycle is the main body and China’s international double cycle promotes each other. Driven by the “double cycle”, China’s economy is more resilient.
“Epidemic problem” is also a common hot issue pursued by institutional investors, and the “answers” of most listed companies send a positive signal.
Chengtun Mining Group Co.Ltd(600711) clarified whether the company’s production and operation were affected by the epidemic. At present, the company’s production and operation are normal, domestic and foreign construction projects are being carried out in an orderly manner, and the international Chinese epidemic has not had a material impact on the company’s production and operation. The company’s strategic objectives are being implemented one by one according to the established plan Shanghai M&G Stationery Inc(603899) said that the company’s new business is expected to continue to maintain rapid growth. The traditional core business maintains the medium-term growth target of 10% to 15%. The reason why Shanghai M&G Stationery Inc(603899) explained that “it is mainly because the trend of consumption upgrading in China is still established and the company has strong competitive advantages in products, channels and teams.”
Whether it can maintain sustained growth in 2022 is also widely mentioned in the survey Sichuan Injet Electric Co.Ltd(300820) introduced that “in 2022, the company has had polycrystalline orders (pre winning the bid). From the current situation, the downstream industry still maintains a high enthusiasm for production.” Some other companies were asked whether there was financial pressure or not, Sichuan Road & Bridge Co.Ltd(600039) replied that in the next few years, the company expects the main business development trend to be good, the construction profit to show a steady upward trend, and can provide sufficient financial support for investment projects.
“The performance expectation of Chinese entity enterprises is gradually recovering from the ‘quagmire’ affected by the epidemic.” Xu Chi, head of the strategic industry of Zhongtai Research Institute, told the Securities Daily that at present, the market in March has gradually reflected the performance expectation of the first quarterly report of enterprises. In mid and late April, the market will enter the intensive disclosure period of the annual report of 2021 and the performance of the first quarterly report of 2022. After that, it is expected that the market will generally adjust the profit forecast of listed companies.
foreign institutions are optimistic about A-share companies
The reporter combed the announcements disclosed by the above-mentioned 21 companies and found that institutions have high enthusiasm for research on listed companies. For example, on March 15, Namchow Food Group(Shanghai) Co.Ltd(605339) released the annual report of 2021. On the same day, more than 120 institutional investors conducted research and Namchow Food Group(Shanghai) Co.Ltd(605339) answered the questions of institutional investors through four teleconferences.
Dong zhongyun believes that the purpose of institutional research on listed companies is to understand the development of the industry and the operation of listed companies, so as to establish their own equity investment framework and consolidate their investment capacity.
“At present, affected by factors outside China, the performance of A-Shares is weak, but at present, it is more affected by liquidity, and the fundamentals of A-share listed companies have not changed significantly.” Dong zhongyun suggested that in the market downturn, we need to practice our “internal skills”. Through intensive research, listed companies need to find valuable investment targets that are “wrongly killed” by the market, so as to accumulate strength for future investment. When the bottom of the A-share market is coming to an end, we can carry out diversified layout.
Xu Chi believes that as the issuer of the capital market, listed companies are frequently investigated by institutions, which is one of the important channels and ways to give play to the function of “value discovery” in the market. The bottom grinding process of A-share market is often a period of intensive institutional research, which is mainly due to the pressure of economic growth and the uncertainty of capital game. Institutional investors will examine and find the undervalued value of high-quality enterprises from the perspective of “microscope”; At the same time, listed companies will also reasonably release the confidence of the company’s steady development to market investors for the purpose of financing development.
“From the macro perspective, the momentum of China’s sustained economic growth is still good. According to the economic operation data for the first two months of 2022 released by the National Bureau of statistics, China’s economic recovery is better than expected. Therefore, in the medium and long term, the determination of the steady growth policy may guide the policy to increase the support for the real economy, and there is still much room for China’s fiscal and monetary policies to make efforts.” Xu Chi said.
Xu Chi further analyzed that after the short-term turbulence, the repair of the A-share market still needs time. At this time, investors should focus on the value toughness of high-quality companies and look for the upward driving force and direction of the market.
The reporter combed the announcements disclosed by the above 21 companies and noted that there are multiple types of research institutions. In addition to Chinese funded institutions, foreign-funded institutions and joint ventures also actively participate in them.
For example, the announcement shows that from March 1 to March 15, Eastroc Beverage (Group) Co.Ltd(605499) attracted 120 institutions including 38 overseas institutions to conduct research, with a total of 151 people Anhui Heli Co.Ltd(600761) in the survey of 6 institutions received on March 11, 2 were overseas institutions.
“The participation of Chinese and foreign professional institutions in the research shows that although the current A-share market is sluggish, investors are still optimistic about A-share listed companies and even China’s economy.” Dong zhongyun analyzed that, especially foreign-funded institutions, they have an international vision and the pattern of value investment, and have the ability of fundamental screening and value discovery. Their frequent participation in research shows that they believe that A-share listed companies have good development prospects and allocation value.
Xu Chi believes that with the deepening of China’s capital market reform, the A-share market ecology is gradually maturing. On the one hand, the scale of institutional investors in the A-share market has gradually expanded; On the other hand, the opening-up of the capital market has been gradually liberalized, a small number of derivatives such as stock index futures and options have been gradually enriched, increasing their attraction to international funds, and foreign institutions have gradually participated in and enjoyed the development dividends of China’s capital market.
“In the medium and long term, the open Chinese market has always been a great attraction in the world. Foreign institutions will find the most valuable and growing fields to allocate.” Chen Li, chief economist of Chuancai securities and director of the Research Institute, said in an interview with Securities Daily.
