On the first trading day of May, the A-share market had a good start. As of the close, the Kechuang 50 Index led the rise with 0.95%. According to the 2021 annual report and the first quarter report of 2022 of the science and innovation board, the performance growth of the companies in the science and innovation 50 index is bright, the fundamentals are stable and good, and the role of the sector ballast is becoming more and more significant.
Since April, affected by internal and external uncertainties, the Kechuang 50 index has continued to fluctuate. In this regard, Shenwan Hongyuan Group Co.Ltd(000166) believes that considering the future direction of China’s industrial transformation represented by Kechuang 50 index, as well as the current fundamentals and valuation level, Kechuang 50 index has entered the configuration range from the medium-term perspective.
Kechuang 50 high performance growth highlights the backbone of the sector
In 2021, the company achieved a total operating revenue of 834454 billion yuan and a net profit attributable to the parent company of 94.841 billion yuan. Among them, the companies in the Kechuang 50 index achieved a total operating revenue of 349343 billion yuan, a year-on-year increase of 35%, and a net profit attributable to the parent company of 48.504 billion yuan, a year-on-year increase of 76%. The operating revenue and net profit attributable to the parent company accounted for 42% and 51% of the whole sector respectively, playing a mainstay role in the sector.
In terms of the company’s revenue, the median revenue index increased by 2.53 billion yuan to 2.53 billion yuan year-on-year; More than 90% of the company’s revenue increased, and more than 40% of the company’s revenue increased significantly by more than 50%. Among them, Cansino Biologics Inc(688185) recombinant novel coronavirus vaccine obtained the conditional listing approval of China and the emergency use authorization of many overseas countries, achieving an operating revenue of 4.3 billion yuan, ranking first with a 17 times increase in revenue. In terms of net profit, the median net profit attributable to parent companies of Kechuang 50 Index companies increased from 265 million yuan to 472 million yuan, a year-on-year increase of 78%; Nearly 80% of the companies achieved net profit growth and nearly 40% doubled, of which Shanghai Bright Power Semiconductor Co.Ltd(688368) , Amlogic (Shanghai) Co.Ltd(688099) benefited from strong industrial demand, and the net profit increased by more than 500%, reaching 884% and 607% respectively.
In the first quarter of 2022, except that the red chip enterprise Semiconductor Manufacturing International Corporation(688981) did not disclose the first quarterly report, the companies in the Kechuang 50 index achieved a total operating revenue of 84.790 billion yuan, a year-on-year increase of 42%, and the net profit attributable to the parent company was 10.419 billion yuan, a year-on-year increase of 63%, of which the net profits of 9 companies including Xinjiang Daqo New Energy Co.Ltd(688303) , Suzhou Nanomicro Technology Co.Ltd(688690) doubled.
leading clusters in subdivided fields, dazzling background of hard technology
The Kechuang 50 Index brings together a number of hard science and technology enterprises in the “neck” technology research field, such as Semiconductor Manufacturing International Corporation(688981) , Cansino Biologics Inc(688185) , Xinjiang Daqo New Energy Co.Ltd(688303) and makes use of the capital market to realize the deep integration of innovation chain, industrial chain, talent chain, policy chain and capital chain.
According to the statistics of the reporter, the projects led or participated in by many companies in the sector have won major awards such as the national science and technology award. For example, 16 companies such as China Railway Signal & Communication Corporation Limited(688009) have won the national science and technology progress award, 3 companies such as Micro-Tech (Nanjing) Co.Ltd(688029) have won the National Technological Invention Award, and 13 companies such as Shenzhen Chipscreen Biosciences Co.Ltd(688321) have won the Chinese patent award.
According to the disclosure in the annual report of 2021, the total number of invention patents added by the 50 Index companies of science and innovation in 2021 was more than 3400, and the average number of invention patents owned by each company reached 442, which was higher than the overall average number of 108 invention patents in the science and innovation board. The top three in the number of invention patents were Semiconductor Manufacturing International Corporation(688981) 10698, China Resources Microelectronics Limited(688396) 1494, China Railway Signal & Communication Corporation Limited(688009) 1066.
The component companies of Kechuang 50 Index cover many industry leaders, such as global household energy storage leader Pylon Technologies Co.Ltd(688063) , domestic high-purity polysilicon leader Xinjiang Daqo New Energy Co.Ltd(688303) , China’s CAD software industry leader Zwsoft Co.Ltd(Guangzhou)(688083) etc. based on the subdivided fields, Kechuang board company provides strong support for China’s industrial chain supply chain to make up for weaknesses, forge long sectors and fill in gaps. Many companies have achieved import substitution in subdivided fields, gradually enhanced their international competitiveness, and promoted the realization of independent control and continuous acceleration. For example, Anji Microelectronics Technology (Shanghai) Co.Ltd(688019) took the lead in breaking the monopoly of overseas manufacturers in the field of semiconductor materials such as CMP polishing fluid, realizing import substitution and entering the global supply chain system; For another example, Suzhou Nanomicro Technology Co.Ltd(688690) broke through the technical problem of precise preparation of microspheres, broke the long-term technology and product monopoly of foreign leading enterprises, and accelerated the localization of high-performance chromatographic filler and spacer microspheres.
included in the basket of international investors and increased the attraction of foreign capital
Among the companies of Kechuang 50 index, 27 have been included in the core index system of MSCI, FTSE Russell and S & P, which reflects the recognition of international investors for the investment value of Kechuang 50 Index companies.
With the further expansion of the channels for foreign investment in the science and innovation board, the scale and coverage of foreign shareholding have been continuously improved. According to statistics, 36 companies in the Kechuang 50 index are held by foreign capital in the secondary market, with an average of 13 foreign-funded institutions in each company, including 20 companies such as Advanced Micro-Fabrication Equipment Inc.China(688012) , Bloomage Biotechnology Corporation Limited(688363) and more than 15 foreign-funded institutions. Foreign funded institutions are mainly sovereign funds, pension funds, asset management companies, investment banks and other types of institutional investors. From the perspective of shareholding market value, the average proportion of foreign-funded shareholding in the free circulation market value is 6.47%. The shareholding proportion of Opt Machine Vision Tech Co.Ltd(688686) , Qingdao Haier Biomedical Co.Ltd(688139) and other five companies exceeds 10%, of which Opt Machine Vision Tech Co.Ltd(688686) accounts for the highest 32.71%. The shareholding foreign-funded institutions include Morgan Stanley, Goldman Sachs Group and other five well-known QFII companies.
At the same time, Kechuang 50 Index companies also actively convey long-term investment value to international investors through information disclosure, investor exchange and other forms. At the same time as the disclosure of the 2021 annual report, all companies in the Kechuang 50 index have separately disclosed ESG reports or social responsibility reports, which are in line with the international mainstream investment philosophy and lead the sustainable development of the company with ESG concept.
In the annual performance presentation meeting, international investors can directly interact with the chairman, general manager and other key personnel of Kechuang board through multiple interactive modes such as video, voice and text, so as to effectively improve the communication efficiency with international investors. According to statistics, international investors have participated in more than 50 collective performance presentations in Shanghai stock market through Shanghai Securities roadshow center. At the performance presentation meetings of Advanced Micro-Fabrication Equipment Inc.China(688012) , Zwsoft Co.Ltd(Guangzhou)(688083) , Zhejiang Supcon Technology Co.Ltd(688777) and other Sci-tech Innovation Board companies, international investors conducted in-depth exchanges around the localization rate of main products, overseas business development, overseas market scale and other issues, showing their concern for the long-term investment value of the company.
