On April 21, CNOOC, a large state-owned oil company, was listed on the Shanghai Stock Exchange. So far, after China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) three major telecom operators “joined” A shares, China Petroleum & Chemical Corporation(600028) , Petrochina Company Limited(601857) , CNOOC, the “three barrels of oil” also gathered in a shares. The weight of “ballast stone” of listed companies controlled by central enterprises in the A-share market has increased again.
As of April 20, 2022, among the 4788 listed companies of all a shares, 449 are central enterprises and 888 are local state-owned enterprises, accounting for 9.38% and 18.55% respectively. The total market value is 23.86 trillion yuan and 16.83 trillion yuan respectively, accounting for 28.8% and 20.33% of the market value of all A shares respectively.
Peng Huagang, Secretary General of the state owned assets supervision and Administration Commission and spokesman, said at the press conference of the state information office on April 19 that listed companies controlled by central enterprises are an important force in the capital market and will take a variety of measures to promote listed companies to improve their governance level and value creation ability, realize the high-quality development of listed companies and make positive contributions to the stable development of the capital market.
2022 is the closing year of the three-year action plan for the reform of state-owned enterprises. During the implementation of the three-year action plan for the reform of state-owned enterprises, SASAC has always focused on improving the quality of listed companies controlled by central enterprises.
In the first quarter of this year, the economic benefits of central enterprises increased steadily and the operation quality continued to improve. According to the data of SASAC, in the first quarter of this year, central enterprises achieved a total operating revenue of 9 trillion yuan, a year-on-year increase of 15.4%, a net profit of 472.33 billion yuan, a year-on-year increase of 13.7%, a tax payment of 734.8 billion yuan, a year-on-year increase of 20.9%, and a total fixed asset investment (excluding real estate) of 519.4 billion yuan, a year-on-year increase of 4.6%.
Central enterprises are not only the cornerstone of national industrial chain security, but also the “ballast” of national economic stability. The author believes that in the process of sustained and stable growth of the benefits of central enterprises and gradual realization of strength and excellence, the quality of listed central enterprises has been improved, and played the leading role of the “chain master” of the industrial chain, cultivated industrial leaders, improved the efficiency of upstream and downstream resource allocation, promoted the development of private enterprises and small, medium and micro enterprises, and finally promoted the high-quality development of the capital market.
For a long time, the capital market has provided financing, mergers and acquisitions, development and growth and other support for the reform of state-owned enterprises, and promoted state-owned enterprises to move forward towards deeper and broader fields and high-quality development.
The latest data show that since the 18th CPC National Congress, SASAC has successively completed the reorganization of 25 groups of 46 central enterprises, and newly established 9 central enterprises according to the needs of national development.
Mapped to the A-share market, the new progress and achievements of the reform of state-owned enterprises, especially the reform of central enterprises, have been highly recognized by the capital market.
Analysts generally believe that with the further deepening of the reform of state-owned enterprises, the operating efficiency and vitality of state-owned enterprises are expected to increase, which will boost the improvement of relevant industry fundamentals and enterprise profits, drive the valuation repair, and highlight the investment value day by day.
From the perspective of valuation, as of April 20, the latest dynamic P / E ratio of CSI central enterprise index was 8.56 times, far lower than the P / E ratio of 16.32 times of the whole A-share market. It can be seen that the overall valuation of the state-owned enterprise sector is low, with a good margin of safety and cost performance.
We believe that the central enterprises will play an important role in the development of the new capital market by focusing on the quality and strength of the listed companies, highlighting the role of the central enterprises in the development of the new capital market.
