Executives of listed companies, as insiders of the company’s operating performance, have always been concerned by investors about their shareholding changes.
On January 16, Shanghai Guao Electronic Technology Co.Ltd(300551) announced that the general manager planned to increase his stake in the company based on his confidence in the company’s future strategic transformation and industrial development. Subsequently, the company’s share price rose by the limit on January 17 and rose by more than 4% again on January 18.
According to the statistics of the reporter of Securities Daily, subject to the announcement date, as of January 18 this year, a total of 27 important shareholders (shareholders and executives holding more than 5%) of listed companies have increased their holdings in the secondary market 65 times. From the perspective of the main body of the increase, the company’s executives account for the vast majority.
Specifically, Aier Eye Hospital Group Co.Ltd(300015) a total of 6 executives increased their holdings 12 times. From January 6 to 14, Aier Eye Hospital Group Co.Ltd(300015) successively issued several announcements to disclose the increase of shares held by six senior executives, including its general manager, deputy general manager and board secretary. The reasons for the increase are “based on the confidence in the future development prospect of the company and the reasonable judgment of the current internal value of the company”.
“Generally speaking, the increase of senior executives’ holdings in listed companies is based on their research and judgment on the company’s prospects. In view of their information advantages, most of the increase of senior executives’ holdings theoretically occurs when the company’s share price is lower than the value. Therefore, the increase of senior executives’ holdings is a positive signal release, which can lead to the rise of the company’s share price.” Tian Lihui, Dean of the Financial Development Research Institute of Nankai University, told the Securities Daily.
“Executives, as insiders of the company’s operation, increase their holdings for two reasons: one is to convey to the market that the company’s share price at this stage does not really reflect the company’s development; the other is to show that they are firmly optimistic about the company’s future development, which can boost the company’s share price in the short term.” Wang Weijia, general manager of Beijing Sunshine Tianhong asset management company, told the Securities Daily.
In addition, in terms of the industries to which the overweight companies belong, among the 27 listed companies, the number of Companies in the pharmaceutical and biological industry ranks first, with 7; The power equipment industry takes the second place, with 5; Followed by mechanical equipment industry and banking industry, both of which are three.
From the perspective of the seven listed companies in the pharmaceutical and biological industry, their strength is quite strong, including both medical device leader Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) and ophthalmic medical leader Aier Eye Hospital Group Co.Ltd(300015) .
With regard to why the increase was concentrated in the pharmaceutical and biological industry, Wang Weijia said that for most listed companies in this industry, the share price performance of the company in 2021 was not ideal, and many leading companies in subdivided fields even fell by more than 50%. The increase of important shareholders of these companies will release a positive signal to the market to maintain the stability of stock prices.
Tian Lihui believes that the pharmaceutical and biological industry index has continued to decline in the past six months, but with the development of China’s aging society and the acceleration of domestic substitution of medicine, the pharmaceutical and biological industry has a promising prospect.
In addition, from the perspective of Listed Companies in the power equipment industry, there are many equipment manufacturers serving new energy fields such as photovoltaic and wind power. In this regard, Wang Weijia said that under the guidance of the “double carbon” goal, the new energy industry has ushered in a period of sustainable development. The listed companies in the industry have relatively stable operating performance and good development prospects.
Wang Weijia believes that for ordinary investors, we should objectively look at the increase of important shareholders. Although the increase of holdings, especially the continuous increase of holdings, may indicate that the company’s shares are in the relatively bottom area, it should also make a comprehensive judgment in combination with the company’s fundamentals, development stage and industry prospect, pay attention to the company’s announcement in time, pay attention to risks and invest rationally.
