The Political Bureau of the CPC Central Committee held a meeting on April 29 to analyze and study the current economic situation and economic work, and released a strong signal of stabilizing expectations. From April 25, when the Shanghai stock index lost 3000 points to April 29, the A-share market rebounded strongly. In the process of “confrontation” in the market, institutional investors took positive actions to enhance confidence through research and accumulate strength for long-term investment. According to statistics, from April 25 to 15:00 on April 29, a total of 261 listed companies received institutional research, with a total of 278 times and an average of 56 times a day.
“The continuous decline in the early market is mainly a reflection of pessimism, which has deviated from the economic fundamentals to a certain extent.” Dong zhongyun, chief economist of AVIC securities, told the Securities Daily that although the A-share market has entered a period of in-depth adjustment, the enthusiasm of institutions to actively find high-quality targets has not decreased. At the same time, listed companies also frankly hope to convey positive signals through research “Q & a” to eliminate investor anxiety.
research “Q & a” sends a positive signal
economic fundamentals give confidence to enterprises
The reporter combed this week’s research announcement and found that under the background of in-depth market adjustment, the “performance statement for the first quarter of 2022” and “performance outlook for the whole year of 2022” have almost become the “required questions” for listed companies to reply to research institutions. From the survey “Q & a” situation, the overall performance of most listed companies has increased steadily, and they are full of confidence in future development.
From April 27 to April 28, the Hunan Zhongke Electric Co.Ltd(300035) introduction of two rounds of institutional research received by the company benefited from the continuous rise of the prosperity of the company’s downstream industry and the rapid development of the company’s business. In the first quarter of 2022, the consolidated financial statements of the company achieved an operating income of 8579872 million yuan, a year-on-year increase of 161.60%; The net profit attributable to shareholders of listed companies was 1289064 million yuan, a year-on-year increase of 91.25%.
Some listed companies are full of confidence in the 2022 revenue budget and growth plan that the market is more concerned about Shandong Yuma Sun-Shading Technology Corp.Ltd(300993) said that considering various internal and external factors such as industry, market, epidemic situation and exchange rate, combined with its own advantages and development planning, the company determined that the revenue budget growth range in 2022 was 20% to 35% year-on-year growth Truking Technology Limited(300358) replied, “the company plans to increase its revenue and net profit by no less than 20% compared with 2021.”
Dong zhongyun said that at the current time point, institutions still continue to pay attention to the fundamentals of listed companies. On the one hand, it may be related to the intensive disclosure of the first quarterly report of listed companies recently; On the other hand, it also reflects that after the market adjustment, institutions actively look for high-quality target investment opportunities.
“Despite the great downward pressure on the economy due to the disturbance of internal and external factors this year, especially the multi-point spread of the epidemic in China has had a significant impact on some industries, there are still many companies that are less affected by negative factors such as the epidemic and maintain high-speed growth in performance.” Dong zhongyun further analyzed that as of April 28, 538 of the listed companies that have announced the results of the first quarter have achieved a year-on-year growth rate of more than 100% of the net profit deducted from non parent companies. It can be seen that there are still a large number of high-quality companies in the market. While they are growing rapidly and have investment value, they also show that China’s economy has good toughness from the level of listed companies.
“Epidemic situation” and “raw materials” are also hot issues asked by research institutions. From the “answers” of most listed companies, we can see that local governments frequently make “practical moves” to help the real economy cope with the impact of the epidemic. Some other companies are optimistic about the future market based on the good fundamentals of China’s economy.
As for whether the epidemic has affected the company’s operation, Henan Shuanghui Investment & Development Co.Ltd(000895) explained that since the company is a key enterprise to ensure people’s livelihood and supply, the local government has issued policies to support enterprise operation and logistics transportation, so the impact of the epidemic on the overall operation of the enterprise is controllable Wuxi Lead Intelligent Equipment Co.Ltd(300450) said that the company could still operate normally, and only some logistics and supply chains involved in epidemic prevention and control areas were affected. Wuxi Municipal government attaches great importance to ensuring the smooth flow of vehicles in and out of the district. The company will continue to respond actively to ensure that the impact of the epidemic on the company is minimized.
Outlook for the raw material market in the second quarter of 2022 Citic Pacific Special Steel Group Co.Ltd(000708) believes that “on the whole, the raw material market is relatively optimistic, which is mainly due to the expectation of national economic fundamentals, which gives confidence to the development of industries and enterprises.”
The capital pressure in 2022 was also asked many times in the survey, and some listed companies took the initiative to clarify market misunderstandings Topchoice Medical Co.Inc(600763) introduces that the company will not have capital pressure. At present, the book capital balance is more than 700 million yuan, plus the annual net operating cash flow, there is no problem in completing the annual investment Addsino Co.Ltd(000547) said that at present, the overall operation of the company does not have great capital pressure.
Liu Chenming, chief analyst of Tianfeng Securities Co.Ltd(601162) strategy, told Securities Daily that for some industries, the impact of the epidemic is temporary. When the market falls into pessimistic expectations, there may be some wrong killing. After the epidemic risk is alleviated, these companies are expected to usher in a wave of repair market.
various types of research institutions
technology and manufacturing are favored
Further combing this week’s research announcement, it is found that there are multiple types of institutions participating in the research. Among them, Goertek Inc(002241) , Wingtech Technology Co.Ltd(600745) respectively attracted 457 and 412 institutions, including buyers and sellers. In addition to Chinese funded institutions, foreign-funded institutions and joint ventures also actively participated.
Chen Li, chief economist of Chuancai securities, told the Securities Daily that the above phenomenon shows that although the market has been significantly adjusted, from the perspective of medium and long-term investment, the valuation of some high-quality companies has fallen rapidly and has a certain safety cushion.
From the perspective of industry distribution, according to data statistics, among the listed companies surveyed from April 25 to April 29, the three industries subordinate to mechanical equipment, medicine and electronics are the most.
Dong zhongyun believes that “in general, during the period of in-depth market adjustment, the fields of science and technology, manufacturing and medicine have been focused on, which may show that the institutions are optimistic about the medium and long-term development prospects of the above fields and will actively layout investment opportunities in relevant fields. From the perspective of market style, the institutional research involves a large number of growth stocks, which shows that the medium and long-term investment value may have gradually emerged after a deep decline in growth style.”
Chen Li said that in terms of industry hotspots, profitable upstream industries and high-end manufacturing industry chains to be vigorously developed in the future are still investment hotspots to attract the market.
In liuchenming’s view, the pharmaceutical and electronic industries have been fully adjusted in the early market, especially in the pharmaceutical industry, whose stock bond yield gap has been adjusted to a more cost-effective position. At the same time, there are many subdivided tracks of medicine and electronics, among which there are some companies whose prosperity is still good under the weak macro environment. Such companies receive more attention, or it means that long-term funds are entering the market. If they can take the lead in stabilizing enterprises in weak markets, it will largely contribute to the establishment of long-term market confidence.
