(Original title: Reshaping the assessment into a catalyst for the gradual increase in shares of the core enterprise reform concept)
News from our newspaper (Reporter Liu Yang) The core enterprise reform concept is now in batches on the 23rd. As of the close, the “20cm” daily limit of China Railway Equipment, Zhongke Environmental Protection, Sinosteel Luonai increased by more than 12%, daily limit of 10 shares. It is worth noting that China Railway Equipment, China Cheng shares, China Communications Construction, etc. they have had their daily limit for two consecutive trading days.
In terms of novelty, Yi Huiman, chairman of the China Securities Regulatory Commission, spoke at the annual meeting of the Financial Street Forum on November 21, proposing to “grasp the valuation logic of different types of listed companies and explore the creation of a system evaluation with Chinese characteristics.” He points out: “The level of valuation directly reflects the market recognition of listed companies. Listed companies, especially state-owned listed companies, on the one hand, need to ‘exercise their own internal skills’, strengthen strategic integration professional, and enhance the core competitiveness; on the other hand, they must further enhance public company awareness, actively strengthen investor relationship management, and enable the market to better understand the intrinsic value of the enterprise.”
On May 27 of this year, the Commission for the supervision and administration of state-owned assets issued the “Work plan for improving the quality of listed companies controlled by central enterprises”, underlining that the “lack of balance between implementation of value and value creation” of state-owned enterprises listed companies is still prominent.
To date, the PE-TTM of central enterprises and local SOEs calculated by the comprehensive method is 9.0 times and 15.5 times respectively, while the data of A-share companies and private listed companies is 16 times respectively .8 times and 43.9 times; under the PB gauge, central enterprises and local state enterprises are 0.93 times and 1.50 times, respectively, while overall A-shares and private enterprises are 1.60 times and 3.22 times, respectively.
“Currently, state-owned listed companies are undervalued, especially central enterprises are greatly undervalued. On the basis of adhering to the natural laws of the market economy, the establishment of a valuation system with Chinese characteristics will help correct the above undervaluation and promote the return of value of listed state-owned enterprises.” Shen Wanhong Yuan Securities analyst Lu Haochuan believes that, considering that non-state-owned listed technology companies need to follow the rules of the global capital market to enjoy valuation premiums in the early stages of technology growth and introduction, the current market valuation of central A-shares is extremely low, which is safe Marginal and upward elasticity.
In terms of stock selection ideas, Lu Haochuan said that central enterprises follow three principles in stock selection. “First, low valuation and high dividends; second, in terms of corporate behavior, actively communicate with the market and have high transparency; third, in terms of industry direction, focus on two main lines: big energy (oil, coal , electricity, chemicals, transport), large technology (military industry, telecommunications), etc.”
Some people in the industry also believe that: “The valuation reshaping of cores will be a big boon to the A-share market. Whether it’s PE or PB, cores account for only 1/3 of the overall market average. If PE and PB of core enterprises return to the market average, the stock price theoretically will have a large room for growth, which will play a role in promoting the upward trend of the market. That is why the valuation remodeling of core enterprises is a big advantage for the A-share market and the core enterprise stock prices are still at a low. , with medium to long-term investment value.”
Driven by the daily batch limit of stocks of the central enterprise reform concept, the state-owned enterprise reform concept was also fermented again on the 23rd. As of the close, nearly 20 individual stocks, including Dongfeng Technology, Xiyi, Guangdong Media , Yinbaoshanxin, Xiangyou Technology, Yinglite and Hunan Tianyan, had their own daily limit. Zhao Shitang, deputy director of the State Assets Supervision and Administration Commission of the State Council, recently said that since the three-year reform of state-owned enterprises, the amount of registered capital introduced by the central enterprises has exceeded 800 billion yuan, and a number of mixed reform enterprises have successfully listed on the capital market.
