Since the beginning of this year, despite the continuous adjustment of the A-share market and the significant pullback of several popular tracks in the early stage, many investment targets have been “matched” by public funds and overseas asset management giants at the same time. The common feature of these stocks is that the performance of these stocks increased significantly in the first quarter of this year. Many institutions believe that the A-share market is still attractive in the face of a shortage of high-quality assets around the world. With the gradual release of risk sentiment, the main line of investment in the future will return to the fundamentals of individual stocks.
domestic and foreign capital group performance substantial increase in shares
China stock market news choice data show that according to the disclosed data, some companies with excellent performance in the first quarter are “favored” by public offering and foreign investment at the same time.
Taking Longyan Zhuoyue New Energy Co.Ltd(688196) as an example, by the end of the first quarter of this year, there were 2 QFII and 7 public funds among the top 10 circulating shareholders of the company. Among them, UBS and Merrill Lynch increased their holdings by 750000 shares and 159000 shares respectively, ranking the first and sixth largest shareholders of tradable shares. The seven public funds were new in the first quarter of this year. According to the first quarterly report, Longyan Zhuoyue New Energy Co.Ltd(688196) 2022 achieved a net profit of 100 million yuan attributable to shareholders of Listed Companies in the first quarter, an increase of 75% year-on-year.
Zhejiang Jiaao Enprotech Stock Co.Ltd(603822) was also increased by public funds and QFII in the first quarter of this year. According to the data, the Hong Kong Monetary Authority bought 540000 shares of Zhejiang Jiaao Enprotech Stock Co.Ltd(603822) , ranking the tenth largest shareholder of circulating shares of the company in the first quarter; Dongfanghong innovation trend mix, Yuanxin Yongfeng Youjia life stock and Yuanxin Yongfeng Xingnuo holding mix for one year ranked among the top ten circulating shareholders of the stock in the first quarter. According to the first quarterly report, Zhejiang Jiaao Enprotech Stock Co.Ltd(603822) in the first quarter of this year, the net profit attributable to the shareholders of the listed company was about 28.1 million yuan, a year-on-year increase of 33.82%.
According to the latest quarterly report of the fund, BlackRock China new vision hybrid, the first pure foreign-funded public offering fund, made a significant position adjustment in the first quarter, and Sg Micro Corp(300661) replaced Luxshare Precision Industry Co.Ltd(002475) to become the largest heavy position stock of the fund. It is worth noting that Sg Micro Corp(300661) has been favored by many public funds at the same time.
According to statistics, as of the end of the first quarter, a total of 42 funds took Sg Micro Corp(300661) as the largest heavy position stock; At the end of the fourth quarter of last year, only six funds took the stock as the largest heavy position stock Sg Micro Corp(300661) 2022 achieved an operating revenue of 775 million yuan in the first quarter, with a year-on-year increase of 96.81%; The net profit attributable to shareholders of listed companies was 260 million yuan, a year-on-year increase of 244.98%.
investment mainline returns to fundamentals
At the current time point, many domestic and foreign-funded institutions believe that at present, both China and abroad are facing the pattern of shortage of high-quality assets for a long time. As the most representative asset of China’s economy, A-Shares have enough attraction to global investors and are optimistic about the structural opportunities of the equity market in the future. With the gradual release of risk sentiment and the disclosure of the first quarterly reports of listed companies, the main line of investment in the future will return to the fundamentals of the company.
“In the short and medium term, although growth stocks are facing various pressures and challenges, with the digestion of valuation, many stock valuations have fallen back to a reasonable or even low range, and the first quarterly report provides a good appraisal opportunity.” Chen Qi, head of Huafu fund research department and fund manager, said.
Zhou Ping, director of China quantitative investment of lubemaker, said that due to the extreme growth style in the past few years, the valuation of value stocks has been severely compressed, and their profitability and growth prospects have been restored. Therefore, industries that underestimate value and benefit from the “steady growth” policy, such as construction, real estate and finance, will lead the market.
