State-owned Reforms Surge! Stocks Skyrocket! Latest M&A and Restructuring…
The Federal Reserve announced a rate cut of 50 basis points on September 18th, and the A-shares rebounded on September 19th.
The merger and reorganization of China Shipbuilding and China Shipbuilding Industry Corporation, which have attracted much attention from the market, have also had the latest developments.
On the evening of September 18th, China Shipbuilding announced that it plans to absorb and merge China Shipbuilding Industry Corporation by issuing A-shares.
The stocks of China Shipbuilding and China Shipbuilding Industry Corporation resumed trading on September 19th, 2024.
During this window period, the heat of state-owned enterprise reform continues to rise, becoming one of the hottest trends in the market.
In addition to central enterprises, the attention of local state-owned listed companies is also increasing.
From the secondary market, many central and state-owned enterprise concept stocks have already taken a strong upward pattern.
Since September, while the market has been at a low level of oscillation, many company stocks have seen unusual increases, many of which have state-owned attributes.
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Before the Mid-Autumn Festival, the state-owned enterprise reform concept sector has shown a strong trend.
For example, on the last trading day before the festival, September 13th, Baobian Electric closed with "7 out of 10 days of the board", and many stocks such as Hongye Futures, Dalian Thermal Power, and Guizhou Rope Shares all hit the daily limit.
After the festival, the state-owned enterprise reform concept continued to be active, such as on September 18th, Baobian Electric continued to hit the daily limit during the day, and Dalian Thermal Power, Hangzhou Thermal Power, Datang Telecom, and Changshan Beiming all had a batch of daily limit.
Some companies have received multiple daily limits in a short period of time, such as Changshan Beiming, the company's stock closed with a "10cm" daily limit on September 10th, September 12th, and September 18th.
The company's main business is software and textiles, the actual controller is the Shijiazhuang State-owned Assets Supervision and Administration Commission, and in late August, the company's stock started a strong upward trend.
It is worth mentioning that the market performance of state-owned enterprise concept stocks also shows some patterns.
For example, many home appliance stocks with actual controllers as state-owned assets have all seen a strong upward trend, such as Aucma, from September 11th to September 18th, the company's stock accumulated an increase of 26% in 4 trading days; Changhong Meiling, the company's stock from August 23rd to September 18th, the stock volume increased at a low level, and the market rose against the market by 25%.
In addition, the power stocks with actual controllers as state-owned assets have also seen a cluster of increases recently, such as Dalian Thermal Power, from September 13th to September 18th, the company's stock closed with 2 daily limits in a row.
In addition, Hangzhou Thermal Power also closed with a strong daily limit on September 18th.
There is also a phenomenon, that is, the "frying map" mode, many regional-related state-owned enterprise concept stocks have shown a joint upward trend.
For example, many concept stocks with actual controllers as Shanghai state-owned assets have all shown a strong rebound recently, including companies such as Haili Shares, Zhangjiang Hi-Tech, Shanghai Material Trading, Kaikai Industry, and Hua Yu Auto.
Among them, Haili Shares and Zhangjiang Hi-Tech both closed with a one-word daily limit on September 18th; and Beijing state-owned enterprise concept stocks such as Electronic City, Jingneng Thermal Power, Urban Construction Development, and Airport Shares have also received key attention from funds in recent times.
Overall, since September (as of the 18th), many state-owned companies have led the increase in stock prices, such as Baobian Electric, Hainan Haiyao, Hua Ying Technology, and Yangpu Medical, with increases all exceeding 30%; Baota Industry, Datang Telecom, and Hunan Tianyan have all exceeded 20%.
Behind the strong performance of state-owned enterprise concept stocks, relevant favorable factors are also emerging, such as policy.
On September 13th, the Comprehensive Reform Department of the National Development and Reform Commission issued a notice, emphasizing the deepening of state-owned enterprise reform, promoting the original innovation system arrangements, and the reform of state-owned capital investment and operation companies; previously, the Shanghai State-owned Assets Supervision and Administration Commission proposed to take multiple measures to improve the market value management ability and level of Shanghai state-owned listed companies.
Recently, under the background of continuous policy support, the capital operation movements of listed companies with state-owned backgrounds have become more frequent, and the activity of mergers and acquisitions has significantly increased from central enterprises to local state-owned enterprises.
In addition to the aforementioned China Shipbuilding absorbing and merging China Shipbuilding Industry Corporation by issuing A-shares, there are also many industry-leading companies with merger and reorganization dynamics.
For example, in the power industry.
On September 1st, Baobian Electric announced that on August 31st, the company received a notice from the controlling shareholder Ordnance Equipment Group, and the Ordnance Equipment Group is carrying out the integration of power transmission and transformation equipment business with China Electrical Equipment Group Co., Ltd., and this integration may lead to a change in the company's controlling shareholder.
It is also after the release of this news that Baobian Electric's stock price has seen a strong abnormal increase.
In addition, there are also merger and reorganization movements of leading companies in the fields of securities firms and lithium batteries.
For example, Guotai Junan absorbed and merged Haitong Securities, and Yanku Salt Lake and China Minmetals and other companies jointly established China Salt Lake Industry Group Co., Ltd...
In addition to the aforementioned several typical merger and reorganization cases, there are also many state-owned companies with the latest capital operation dynamics recently.
Some companies have started the "buy buy buy" mode.
For example, Shenyang Machine Tool announced on August 30th that the company plans to issue shares to purchase 100% equity of Zhongjie Factory and Zhongjie Aerospace held by General Shenji Group, and plans to issue shares to purchase 78.45% equity of Tianjin Tianduan held by General Machine Tool Company.
For example, Hubei Yihua announced on August 30th that it plans to purchase 100% equity of Yichang Xinfa Industrial Investment Co., Ltd. owned by the controlling shareholder Yihua Group in cash to solve the problem of same-industry competition and improve the company's asset quality and profitability.
Some companies have started the "sell sell sell" mode.
For example, Meditech, the company's main business involves medical informatization, new energy photovoltaics, etc., and since late August, the company's stock price has closed with multiple low positions.
On September 10th, the company disclosed the progress of the asset reorganization plan to sell 100% equity of Xin Hao New Energy, the main body of photovoltaic business, and Meditech said that this move is intended to improve the company's sustainable operation ability and use the funds to optimize the company's existing resource allocation.
In addition, Hefei Urban Construction, China Communications Real Estate, Datang Telecom, Xuefeng Technology, Zhongsheng High-tech, Shaanxi Coal Industry, Baota Industry and other companies have disclosed the latest capital operation dynamics recently.
It is worth mentioning that some companies have seen a continuous increase in stock prices after announcing the acquisition of assets, such as Baota Industry, which has seen a strong rebound in stock prices since its announcement on July 25th to acquire 100% equity of Electric Investment New Energy, and on September 18th, the company's stock price closed with a daily limit and set a new high for the stage, and has increased by 60% since July 26th.
Looking at the operating fundamentals of central and state-owned enterprises, many companies have high performance elasticity.
For example, looking at the mid-year report data this year, many central and state-owned enterprises have a net profit increase of more than 10 times, such as Daqing Huake, Andisu, Harbin Railway Technology, Tianqiao Lifting, and Shenshui Planning Institute.
Taking Daqing Huake as an example, the company's main business is fine chemical products, and it achieved a net profit of 8.0223 million yuan in the first half of this year, a year-on-year increase of 5432.29%.
At the performance explanation meeting on September 11th, the company said that in 2024, the company did not arrange for a shutdown overhaul, and it is expected that the output and sales will be higher than the previous year.
From the secondary market, the company's recent stock price trend is stronger than the market, and it closed with a 10cm daily limit on September 3rd, and has risen by nearly 20% since July 25th.
Another example is Andisu, whose main business is animal nutrition additives, and the company achieved a net profit of 608 million yuan in the first half of this year, a year-on-year increase of 1719.14%.
The company's performance growth is related to factors such as the growth of methionine business and cost reduction.
From the secondary market, the company's stock price has been on a round of oscillation and rise since February this year, and from February 6th to August 1st, it once rose by nearly 70%.
The performance of some companies is steadily increasing.
For example, according to the 2024 mid-year report disclosed by China Life, the company achieved a net profit of 38.278 billion yuan, a year-on-year increase of 10.58%.
The latest operating data disclosed by China Life on September 9th shows that from January 1, 2024, to August 31, 2024, the company's cumulative original insurance premium income was about 564.9 billion yuan, a year-on-year increase of 5.9%.
According to statistics, the companies that achieved net profits of more than 10 billion and an increase of more than 10% in the mid-year report also include China National Offshore Oil Corporation, China People's Insurance, Zijin Mining, and Yangtze Power.
For the investment opportunities of central and state-owned enterprises, many institutions hold an optimistic view, such as Galaxy Securities, which said that compared with the A-share market, central and state-owned enterprises have the characteristics of strong profitability, lower valuation, and higher dividend rates, and the long-term investment value is highlighted.
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