The phenomenon of social security fund buying military stocks skillfully reflects the overall judgment of large public funds.
With the gradual disclosure of the annual reports of listed companies, the positions and investment tracks of the social security fund portfolio have also been exposed. It is noteworthy that the social security fund has concentrated on strengthening the layout of military stocks in the past period, and most of these social security portfolios are entrusted and managed by super large public fund companies, and the investment managers of the social security fund are mostly fund managers with public offering experience.
While the social security portfolio entrusted by the fund company is crazy about buying military industry, public funds are also killing military stocks on a large scale, and the allocation proportion of military stocks hit a new high at the end of last year. Some large public fund products even have the phenomenon of "full warehouse" of the top ten stocks at the beginning of last year and "full warehouse" of the top ten stocks at the end of last year. This phenomenon reflects that the military stocks with deep adjustment are expected to continue to obtain increasing opportunities in the future.
social security portfolio with public offering to buy military industry
What are the possible opportunities for the social security fund portfolio to aim at 2022? The annual reports of listed companies have gradually disclosed the positions and investment trajectories of the social security fund portfolio, showing that the general industrial stock, the social security fund manager at the end of the year, is the preferred sector in preparation for 2022.
Wedge Industrial Co.Ltd(000534) disclosed in the annual report shows that the social security fund 103 portfolio entrusted by Boshi fund appears in the list of the top ten circulating shareholders of the stock. By the end of last year, the social security portfolio managed by Boshi had purchased Wedge Industrial Co.Ltd(000534) to 5.66 million shares Wedge Industrial Co.Ltd(000534) has been involved in the high-temperature alloy track in the military industry. The company previously said that it has the mass production capacity of 200 tons of advanced high-temperature alloy for aeroengine, and the corresponding products can meet the supporting requirements of domestic advanced aeroengine hot end components.
Superalloy is a high threshold track in the military industry, so it has also become the focus of major public funds and social security funds. Just when the social security 103 portfolio entrusted by Boshi fund bought Wedge Industrial Co.Ltd(000534) , Boshi fund also appeared in the annual report of Wedge Industrial Co.Ltd(000534) its competitor Citic Pacific Special Steel Group Co.Ltd(000708) in the field of superalloys.
According to the institutional position information disclosed by the above companies, Boshi theme industry fund, a public offering product of Boshi fund, is the eighth largest circulating shareholder of the stock, with a position of Citic Pacific Special Steel Group Co.Ltd(000708) more than 26 million shares by the end of last year. Considering that the social security fund has always been very interested in military stocks, as the leading stock with the largest market value in the field of superalloys, it is no surprise that the social security fund portfolio related to Boshi fund also appears in the list of institutional positions of the unit.
The annual report disclosed by Citic Pacific Special Steel Group Co.Ltd(000708) shows that by the end of last year, social security fund 108 portfolio and social security fund 16011 portfolio held Citic Pacific Special Steel Group Co.Ltd(000708) about 38.11 million shares and 15.99 million shares respectively. Public information shows that the entrusted managers of social security 108 portfolio and social security 16011 portfolio are Boshi fund
The social security fund 413 portfolio entrusted by ICBC Credit Suisse fund Co., Ltd. also appears in the list of top ten circulating shareholders of military stocks. According to the information disclosed by Guangzhou Haige Communications Group Incorporated Company(002465) disclosure, the social security 413 portfolio held about 13.38 million shares by the end of last year after increasing its holdings of Guangzhou Haige Communications Group Incorporated Company(002465) shares Guangzhou Haige Communications Group Incorporated Company(002465) last year, the operating revenue was 5.474 billion yuan, an increase of 6.87% year-on-year The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 564 million yuan, with a year-on-year increase of 22.83%. The company said that during the reporting period, it closely followed the development trend of national defense, actively participated in the construction of a new generation of air, space, earth and sea integrated network, grasped the development opportunities of intelligent wireless communication and multi-mode integration, and gave full play to the advantages of the company's complete product means, broadband and narrowband integration, public and private network integration and communication and navigation integration.
It is worth mentioning that the social security 413 portfolio entrusted by the above fund companies also appears in the list of top ten shareholders of military electronics leader Fujian Torch Electron Technology Co.Ltd(603678) . According to the information disclosed by Fujian Torch Electron Technology Co.Ltd(603678) disclosure, as of March 15, 2022, the social security fund 413 portfolio slightly increased its holdings of the shares, holding a total of about 3.94 million shares Central China Securities Co.Ltd(601375) previously released research report pointed out that Fujian Torch Electron Technology Co.Ltd(603678) is the core supplier of military electronic components, has established good cooperative relations with most military enterprises and institutions, and has mastered the core technology based on ceramic materials through in-depth layout of military electronic components and special ceramic materials. Military components and special ceramics constitute the two poles of the company's future growth and support the company's long-term development.
The same 40 positions of Jiashi fund management Shenzhen H&T Intelligent Control Co.Ltd(002402) disclosed annual report shows that social security 406 portfolio held nearly 28 million shares by the end of last year, making it the third largest shareholder of the company Shenzhen H&T Intelligent Control Co.Ltd(002402) recently, when accepting the fund manager's investigation, said that the microwave and millimeter wave analog phased array T / R chip products of its subsidiary Chengchang technology are widely used in satellite remote sensing, satellite navigation, communication and other fields. With the drive of national policies to the industry and the gradual opening of Satellite Internet and 5g millimeter wave communication market space, the market demand for microwave and millimeter wave analog phased array radar chips is increasing.
fund manager's involvement in military industry reached a new high
It is worth mentioning that since a considerable number of social security fund portfolios are entrusted and managed by public fund companies, most of the investment managers of social security fund actually come from the fund managers of public funds. Therefore, the current investment preference of social security fund for military stocks actually reflects the judgment of public fund managers on the military industry.
"The social security fund largely reflects the investment preference and investment style of public fund managers". A former social security fund manager in South China said frankly in an interview with a Chinese reporter of a securities firm that when he was a public fund manager, he was optimistic about the leading stocks of a segment of A-share and obtained rich profits. Later, when he managed the social security fund entrusted by the public fund, he also took the track as the core object of his heavy position participation.
Therefore, it is needless to say whether the public offering follows the operation of the social security fund or the social security portfolio follows the operation of the public offering fund. Insiders also believe that the current preference of public fund companies for military industry has been directly reflected in the investment style of social security portfolio entrusted by public fund management. So, how did public funds view military stocks in the past?
According to the research report released by Anxin securities, the market value of the positions of the 2021q4 military industry sector of public funds reached a new high, and the active allocation continued to rise. The total market value of Military Industry Holdings in the heavy positions of 2021q4 public funds reached 140377 billion yuan, hitting a record high after Q3, with the position ratio of 4.78%, up 0.85pct month on month; After excluding passive funds and other theme funds in the military industry, the proportion of active allocation in the military industry was 4.29%, up 1.53pct month on month, maintaining a high level, reflecting the significantly strengthened willingness of public funds to actively allocate individual stocks in the military industry and continuously accelerate the allocation of military sector.
Even Zhao Yi, the star fund manager, is strengthening the allocation of military stocks. According to the positions of the funds managed by Zhao Yi before his resignation as of the end of last year, two of the top three heavy positions of the Agricultural Bank of China research and selection fund managed by Zhao Yi at that time are military stocks. But a few years ago, the situation was completely different. The fund managers who laid out military stocks often came from small and medium-sized public funds.
"many large public fund managers would not look at this industry if they were not military researchers. The research of this industry is opaque, the original impression is very poor, and there is no motivation to look." A medium-sized public fund manager in South China admitted in an interview with a Chinese reporter of a securities firm that many large funds had no power to cover the military industry, but with the scarcity of good industries, the performance of military stocks has become more and more prominent, and the industry impression is changing
new energy fund second to military Fund
The change of face of fund managers in military stocks is also reflected in the positions of some large funds. The Chinese reporter of the securities firm noted that for the fund products with a scale of more than 4 billion under a fund company in the north, by the end of the first quarter of last year, nine of the top ten stocks came from the new energy vehicle track, while by the end of last year, seven of the top ten stocks of the Fund pointed to the military concept. In other words, in less than a year, this fund with a scale of more than 4 billion has changed its position style from heavy new energy to heavy military industry.
Despite the obvious style drift of the above-mentioned funds, it also shows that military stocks are beginning to have an unexpected attraction to fund managers. Obviously, the increased layout of the current social security fund for military industry is also largely due to the change of the impression of large public fund managers on this sector.
Shu Hao, manager of Hua'an fund, also believes that the attraction of military stocks has been strengthened in the recent market adjustment. The newly announced military budget of China in 2022 is 1.45 trillion yuan, with a year-on-year growth rate of 7.1%, an increase of 0.3 percentage points over the previous year, which also shows that China attaches importance to military construction. We don't have to question the government's investment in the military industry in the future. What we need to do is to track which equipment will enter the large-scale stage and look for investment opportunities along the prosperity of the sub industry.
The above fund managers stressed that from the perspective of valuation, the valuation of the military industry sector was not expensive before the current round of decline. After this decline, the valuation is more attractive. As can be seen from the figure below, the overall valuation of the military industry sector has been close to the lowest level in recent years, while the valuation of some leading companies is close to or lower than the historical average. The industry as a whole shows a state of high prosperity and relatively undervalued value.
