More and more small and beautiful companies will be accepted by the market, and the “small and beautiful” top 50 will be released.
in 2021, the small market value index increased by more than three times than the large cap index
In the A-share market, many investors regard blue chips, white horse stocks and core assets as “sweet pastry”. They have strong brands, stable performance and are surrounded by institutions. Driven by funds, the performance of this kind of stock market is indeed excellent, but this wind direction seems to have changed.
In recent years, A-Shares have shown an obvious structural market. Although the index seems calm, the excess return of some sectors is considerable. According to the statistics of securities times · data treasure, before 2020, the performance of large cap stocks was relatively outstanding, but in 2021, the large cap index rose only 7.49%, and the small market index rose three times more than the former, as high as 30.15%. At the beginning of 2022, the increase of small market value index is still stronger than that of large cap stock index.
small market value stocks are rising, and institutions have a high proportion of control
Small market value stocks performed so well in 2021. Through comparative analysis, it is found that small market value stocks not only won the favor of institutions, but also broke out in performance.
According to data treasure statistics, compared with institutional position changes (excluding general legal persons) and performance growth, the average position proportion of small market value stock institutions in 2020 was close to 20%, the highest level in the past four years , which was close to that of large cap stock institutions. at the end of the third quarter of 2021, the average position proportion of small market value stock institutions was close to 40% , and the position proportion of large cap stocks decreased significantly in the same period.
In terms of growth, the average increase in net profit of small cap stocks was much lower than that of large cap stocks from 2017 to 2020, but increased steadily; In 2021, the third quarterly report exceeded the large cap stocks, and the average year-on-year increase of net profit exceeded 150%.
more and more small and beautiful companies will be accepted by the market
The rise of small market value stocks is not achieved overnight. From the above market performance, low-cost small market value stocks can also shine in the A-share market. Small market value stocks are not lack of leaders in subdivided fields, nor lack of financial stable growth stocks.
Guan Qingyou, a famous economist, said that more and more small and beautiful companies will be accepted by the market. They may not be large, but they are exquisite and have no high growth, but their profits are very stable. It may be an invisible champion in a subdivided industry. Such companies will be favored by investors in more primary and secondary markets. For those companies that are too big to fail, even those that can’t stop expanding, he thinks it is more dangerous.
“small and beautiful” top 50 released
Buffett once said that ordinary investors are more suitable for small and beautiful companies. According to several conditions, databao counts small market value companies with high fundamentals. Small and beautiful is a typical example of financial stock selection, which represents blue chip stocks with small market value and emphasizes the small market value and the excellence of the company’s operating ability. The specific statistical conditions are as follows:
1. The leader of each subdivided industry;
2. The market value ranges from 5 billion yuan to 20 billion yuan;
3. The return on net assets (ROE) exceeded 10% from 2017 to 2020, and the roe exceeded 5% in the third quarter of 2021;
4. The non net profit deducted from 2017-2020 and the third quarter of 2021 increased positively.
According to statistics, the top 50 “small and beautiful” have been released, with 10 billion listed value stocks accounting for 60%. There are a large number of stocks in chemical, pharmaceutical, biological and mechanical equipment industries, as well as science and technology stocks, such as Wuxi Chipown Micro-Electronics Limited(688508) , Shanghai Weaver Network Co.Ltd(603039) .
In terms of market value, the market value of nickel powder leader Jiangsu Boqian New Materials Stock Co.Ltd(605376) , liquor distribution leader Vats Liquor Chain Store Management Joint Stock Co.Ltd(300755) , quartz material leader Hubei Feilihua Quartz Glass Co.Ltd(300395) exceeds 20 billion yuan; At the bottom is the high-end kitchen cabinet leader Goldenhome Living Co.Ltd(603180) , with a market value of less than 5.5 billion yuan.
According to the financial data in the third quarterly report of 2021, Guangdong Hybribio Biotech Co.Ltd(300639) , Shenzhen Breo Technology Co.Ltd(688793) and Wuxi Chipown Micro-Electronics Limited(688508) share deduction non net profit increased by more than 100%, which are respectively the leader of nucleic acid molecular diagnosis, the leader of intelligent portable massage chair and the leader of power chip. More than 50% of Vats Liquor Chain Store Management Joint Stock Co.Ltd(300755) , Novoray Corporation(688300) and other shares. In terms of investment return, Zhejiang Meida Industrial Co.Ltd(002677) , Guangdong Hybribio Biotech Co.Ltd(300639) , Marssenger Kitchenware Co.Ltd(300894) and other four shares have a return on net assets of more than 20%, and Fibocom Wireless Inc(300638) and other shares have a return on net assets of more than 15%.
The valuation of 17 shares is less than 30 times
In terms of valuation, the latest median rolling P / E ratio of the “small and beautiful” top 50 is 37 times, nearly 40% is less than 30 times, Kai Grandblue Environment Co.Ltd(600323) , Guangdong Hybribio Biotech Co.Ltd(300639) has the lowest valuation, and the rolling P / E ratio is less than 15 times. Ceramic tile faucet Monalisa Group Co.Ltd(002918) , integrated stove faucet Zhejiang Meida Industrial Co.Ltd(002677) , Furniture Customization faucet Zbom Home Collection Co.Ltd(603801) are less than 20 times. Some stocks have relatively high valuations, Xi’An Sinofuse Electric Co.Ltd(301031) , Shanghai Titan Scientific Co.Ltd(688133) more than 100 times, and Hebei Sinopack Electronic Technology Co.Ltd(003031) , Jiangsu Boqian New Materials Stock Co.Ltd(605376) more than 70 times.
The “small and beautiful” top 50 are also in the bag of foreign capital. According to the statistics of databao, 18 shares in the list have been increased by going north since the beginning of the year, and 9 share institutions predict that the net profit will increase by more than 30% in 2021.
Among them, Jiangsu Guomao Reducer Co.Ltd(603915) and Sichuan Jiuyuan Yinhai Software Co.Ltd(002777) are among the top 9 stocks. The former is the leader of general reducer and the latter is the leader of medical insurance informatization. Since the beginning of the year, the capital of going north has increased positions by 0.7 percentage points and 0.41 percentage points respectively. Jiangsu Boqian New Materials Stock Co.Ltd(605376) , Hubei Feilihua Quartz Glass Co.Ltd(300395) , Marssenger Kitchenware Co.Ltd(300894) and other institutions predict that the net profit will increase by more than 50% in 2021, of which Jiangsu Boqian New Materials Stock Co.Ltd(605376) is close to 65%.
