By the end of April, a total of more than 4800 A-share companies had published the annual report of 2021 and the first quarterly report of 2022. From the “report card” handed over by a shares, after the decline of performance growth in the third and fourth quarters of 2021, the performance growth of A-Shares rose again in the first quarter of 2022.
From the specific data, in 2021, the total operating revenue of A-share company reached 66.3 trillion yuan, the total operating cost was 60.4 trillion yuan, and the net profit attributable to the parent company reached 5.1 trillion yuan. On April 29, the total market value of A-Shares was 73.9 trillion yuan, corresponding to a price earnings ratio of 14.8 times in 2021, the lowest 20% in history. From the perspective of single quarter growth rate, the growth rate of revenue and net profit of A-Shares in 2021 showed a downward trend quarter by quarter, which was similar to the trend of GDP. It did not recover until the first quarter of 2022.
In this sense, the correction at the end of 2021 is indeed a reflection of the performance to some extent, because the net profit in the third and fourth quarters of 2021 is negative growth. However, the continued decline after March is likely due to the psychological impact of the epidemic and the Fed’s interest rate hike (RMB devaluation).
From the perspective of industry, the cost performance of some industries has appeared. Industries such as coal, power equipment, new energy, national defense and military industry, household appliances and food and beverage continued their high growth in the first quarter, increasing by 83%, 31%, 22%, 13% and 18% respectively, showing a very good anti-aging attribute.
Investment strategy: the market is at the bottom, which is worthy of strategic layout. The index is optimistic about CSI 500, and the industry is optimistic about growth stocks and steady consumption sectors. There are five specific directions to focus on: under the situation of weak economic recovery, lay out resilient anti-aging consumption sectors, such as cosmetics (lipstick economy), high-end Baijiu, etc; Under the pressure of imported inflation, lay out anti inflation agriculture, forestry, animal husbandry and fishery sectors, especially Shenzhen Agricultural Products Group Co.Ltd(000061) industrial chain sector; Under the background of the deep correction of sectors and individual stocks and the intensification of geopolitical conflict, the semiconductor sector in the field of import substitution is arranged; Under the circumstances of intensified geopolitical conflicts, high international energy prices and in-depth correction of sectors and individual stocks, we will lay out the new energy sector and the national defense and military industry sector.
Risk tip: the development of the epidemic exceeded expectations, and the Fed raised interest rates more than expected
