On Wednesday, the three major A-share indexes returned to adjust the pattern. Heavyweight sectors such as medicine, new energy and infrastructure fell, dragging down the index, and the Shanghai index competed around the 3200 point mark. As of the close, the Shanghai Composite Index closed at 318682 points, down 0.83%; Shenzhen composite index reported 1156817 points, down 1.60%; Gem index reported 246684 points, down 2.25%.
The resource sector is the strongest main line on the disk of the day. Divided by Shenwan industry, the coal and non-ferrous metal industries closed up 3.82% and 2.19% respectively, ranking the top two in all primary industries.
The soaring price of related commodities is an important reason for the rise of resource stocks. China’s commodity futures market rose or fell by half yesterday, among which crude oil and base metals led the rise. Shanghai nickel, fuel oil and crude oil rose by more than 5%, asphalt and low sulfur fuel oil rose by nearly 4%, and Shanghai zinc rose by more than 3%; Precious metal prices rose, with Shanghai silver rising by more than 1% and Shanghai Gold rising by nearly 1%.
The bright performance of some resource leading companies further boosted capital sentiment. As the company with the largest market value in the non-ferrous metal sector, Zijin Mining Group Company Limited(601899) rose by more than 9% and closed up by 7.28%, with the latest market value of more than 320 billion yuan. Since the bottom in mid March, Zijin Mining Group Company Limited(601899) share price has continued to rise, with a cumulative increase of more than 30% in the past month.
After hours on April 11, Zijin Mining Group Company Limited(601899) disclosed that in the first quarter of 2022, the revenue in the first quarter was 64.771 billion yuan, a year-on-year increase of 36.35%; The net profit attributable to shareholders of listed companies was 6.124 billion yuan, a year-on-year increase of 143.88%. The company said that during the reporting period, the company made great efforts to overcome the impact of external environment such as epidemic situation and geographical conflict, grasped the favorable opportunity of high metal prices, focused on the annual production target, carefully organized production, achieved good results in production and operation, and successfully achieved a “good start” in the first quarter.
Guosen Securities Co.Ltd(002736) commented that Zijin Mining Group Company Limited(601899) overcame multiple challenges such as the epidemic and achieved the completion and operation of a number of major flagship projects beyond expectations. The volume of core mineral products is just in the historical high range of bulk metal prices, and the performance is expected to show explosive growth. 2021 is the year with the best performance in the company’s history, and it is expected to achieve substantial growth on this basis in 2022.
In addition to Zijin Mining Group Company Limited(601899) , China Coal Energy Company Limited(601898) with a market value of 100 billion disclosed the pre increase announcement of the first quarterly report on Monday. Recently, the share price has gained two consecutive boards, becoming the leading gainer in the coal sector China Coal Energy Company Limited(601898) announcement shows that the company expects to achieve a net profit of 6.45 billion to 7.13 billion yuan in the first quarter, with a year-on-year increase of 83.8% to 103.2%. Even based on the lower limit of growth, China Coal Energy Company Limited(601898) the performance in the first quarter of this year will be the best since listing, and exceeded the previous expectations of some institutions.
According to the statistics of Debang securities, the median year-on-year growth rate of the whole industry in the first quarter of this year is 63%, the growth rate of upstream raw materials is leading, the median performance growth rate of petroleum and petrochemical, basic chemical, steel and non-ferrous metal industries exceeds 100%, and the median performance growth rate of coal industry reaches 71.4%. In addition, combined with the adjustment of institutional profit forecast before and after the performance forecast, the industries with high probability of exceeding the expectation in the first quarter of this year include coal, basic chemical industry (new chemical materials, agrochemical), power equipment (wind power photovoltaic equipment, lithium battery materials), etc.
At the market level, China Securities Co.Ltd(601066) strategy chief Chen Guo believes that at present, the price performance of A-share stock has been high, but it may need to change hands fully. At present, the equity risk premium has reached the high point of 90% quantile in recent seven years, and the valuation of the market index has been adjusted to the level at the end of 2019. However, the turnover rate has not reached the bottom, most institutional investors still hold a neutral attitude towards the market, and the release of market sentiment is not complete. Wait for the market to fully change hands, the bottom characteristics may be clearer.
“Generally speaking, we believe that the market is in the bottom grinding period from the medium-term perspective. At this time, investors should be patient and should not rush forward and wait for opportunities. If there is a significant adjustment in the market, they can also gradually layout, focusing on early cycle varieties (real estate chain, etc.). If the subsequent US bond interest rate stabilizes, they can consider gradually increasing the allocation of growth stocks.” Chen Guo said.
