Today (November 22) morning, in the word head of the collective stocks soared, as of the close, hundreds of billions of market value of China Unicom, China Communications Construction near midday both straight-line board stop, China Railway assembly rose more than 14%, into the shares also board stop, in addition, the COSCO sea energy, China Steel International, China High Tech, China Ship, and other stocks in the forefront.
Communication leading plate pulling, state-owned enterprises stocks collectively active
News, the Securities and Futures Commission Chairman Yi Huiman recently made a keynote speech at the annual meeting of the 2022 Financial Street Forum, pointing out that the valuation of the high and low directly reflecting the market's recognition of the listed companies. At present, state-owned listed companies and listed state-owned financial enterprises account for nearly half of the market value, reflecting the status of state-owned enterprises as an important pillar of the national economy. Some experts said, state-owned enterprises as an important pillar of the national economy, has been a pivotal force in the A-share market, and the current central enterprises listed companies price-earnings ratio of less than 8 times, the lowest level since nearly a decade, significantly lower than the overall level of A-share 14 times.
Buoyed by the news, the Chinese character stocks in the early morning performance of active, in the "communications giant" China Unicom, driven by the assembly of China Railway, China Communications Construction and other concepts of the collective stock rally. It is reported that China Unicom recently disclosed the main operating data in October, 5G package users reached a cumulative number of 20,555,000 households. Benefit from multiple good, China Unicom early today successfully stopped, as of midday, it was 3.27 million hands of 1.3 billion yuan of funds sealed single. In addition, in addition to the collective outbreak of Chinese stocks, non-Chinese state-owned enterprises also ushered in the rally.
As an important part of the national economy, state-owned enterprises listed companies in the A share share share is higher, as of today (November 22) data, the current A-share market 5,000 stocks, state-owned enterprises accounted for nearly 27.9%, of which, the central government enterprises amounted to 463, the local state-owned enterprises amounted to 934, mainly focusing on the large financial, communications, petroleum and petrochemical, public utilities, and other systemically important industries in the . In terms of market capitalization, as of yesterday (Nov. 21), the total market value of listed state-owned enterprises reached 43.9 trillion yuan, accounting for 49.86 percent of the total market value of A shares.
Low valuation superimposed on high dividends, attention to state-owned enterprises related concepts
Currently, the valuation of state-owned enterprises listed companies compared to private enterprises and foreign enterprises is generally low, especially some banks and state-owned listed enterprises. According to CICC research data, as of November 21, listed SOEs and non-SOEs P/E TTM valuation of 11.0 times and 34.3 times; which the financial sector valuation is even lower, the current P/E and P/E were 5.9 times and 0.58 times, P/E valuation has been in the lowest state in the history of the market; P/E and P/E of the listed banks was 4.3 times and 0.51 times, dividend yield as high as 6.1%.
However, as the national economy's "pillar", "ballast", with the continuous release of reform dividends, central enterprises listed companies have long-term investment value. Orient Securities recent research report pointed out that central enterprises listed companies have "strong profitability + high dividends + low valuation + theme catalyst" multiple drivers. In the past 10 years, the central enterprise ROE long-term maintenance in more than 10%, long-term performance is better than the overall A shares, the central enterprise dividend rate is significantly higher than the CSI 300 and the overall A listed companies dividend rate, the current rise to 3.75%, the dividend rate has the advantage of having a stronger ability to withstand the economic downside risks.
For the direction of attention, GF Securities previously pointed out that the A-share central enterprises to industry giants, with large market value, low valuation, high dividends, performance more stable characteristics, is the A-share earnings growth weight "stabilizer", will be in the fourth quarter market volatility and style convergence. In the fourth quarter of market volatility and style convergence process highlights the configuration "cost-effective". The current "anti-globalization" trend, "security" priority over "efficiency", central enterprises "high profitability" advantage has a lot of room for improvement. The advantages of central enterprises also have a lot of room for improvement, is expected to give birth to China's FAANG: (1) to maintain the advantage of "high profitability" of the central enterprises: transportation, automobile, communications, etc.; (2) "high profitability" of the central enterprises to enhance the advantages of (2) Central enterprises with improved advantages: non-ferrous metals, basic chemicals, electric power equipment.
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