What are the GEM concept stocks Editor's note: A shares ushered in the first round of MSCI as expected expansion adjustment. At 5 a.m. Beijing time on May 14, MSCI May semi-annual index review results were officially released.MSCI announced that the MSCI Emerging Markets Index of China's large-cap A-share inclusion factor from 5% to 10%. At the same time, 26 Chinese A shares will be included in the MSCI China Index, of which 18 are GEM constituents.
GEM stocks included for the first time
Beijing time, May 14, 5:00 a.m., MSCI May semiannual index review results were officially released, MSCI announced that the inclusion factor of China's large-cap A-shares in the MSCI Emerging Markets Index will be increased from 5 percent to 10 percent. In this round of constituent stock adjustment, the GEM has become a heavy hitter.
The MSCI adjustment, 26 A-shares were newly included in the MSCI China A-share large-cap index, and no stocks were transferred out of the index, so the constituents of the MSCI China A-share large-cap index increased to 264. Newly included in the 26 stocks in 18 from the GEM, which is the A-share GEM companies for the first time "into the Mo".
The 18 GEM constituents are: Flush (86.34 +1.42%, diagnostic shares), Tiger Pharmaceuticals (70.48 +7.23%, diagnostic shares), Wen's (36.47 +2.91%, diagnostic shares), Kangtai Biologicals (50.67 +2.10%, diagnostic shares), Ai Erkeke (36.10 +2.79%, diagnostic shares), Myriad Healthcare (143.20-0.39%, diagnostic shares), and Ai Erke (36.10 +2.79%, diagnostic shares), and Ai Erke. 143.20-0.39%, diagnostic shares), network host technology (10.81 +1.22%, diagnostic shares), Oriental Fortune (15.76 +1.94%, diagnostic shares), Watson Biological (23.85 +1.92%, diagnostic shares), Lepu Medical (25.98 +4.72%, diagnostic shares), Huichuan Technology (23.86 +1.06%, diagnostic shares), the three ring group ( 19.71 +1.34%, diagnostic shares), Mango super media (43.22 +4.65%, diagnostic shares), Lance Technology (7.19 +1.55%, diagnostic shares), Zhifei Biological (41.23 +2.82%, diagnostic shares), pilot intelligence (30.57 +2.83%, diagnostic shares), Songcheng Performing Arts (21.80 +2.49%, diagnostic shares), Ninde Times (74.98 +3.91%, diagnosis stock).
The remaining eight stocks are: Bank of Chengdu (8.79 +1.03%, diagnostic shares), Junzheng Group (3.44 +1.47%, diagnostic shares), Zaotong Securities (10.63 +2.21%, diagnostic shares), Yanzhou Coal (10.83 +1.59%, diagnostic shares), Dongshan Precision (15.17 +3.90%, diagnostic shares), Transfar Wisdom (7.71 +3.77%, diagnostic shares). 3.77%, diagnostic shares), Hengyi Petrochemical (13.49 +1.73%, diagnostic shares), Pan Ocean Holdings (6.70 +2.29%, diagnostic shares).
Twenty-nine stocks were added and five were dropped from the MSCI China A-share mid-cap index, which ultimately includes 173 constituents.
MSCI's China A-share onshore index added more than 100 constituents, with the three largest stocks by market capitalization being Wen's shares, Ningde Times and Myriad Medical. Other GEM stocks include Wen's shares, Ningde Times, Myriad Medical, Oriental Fortune, Aier Ophthalmology, Zhifei Biologicals, Flush, Lance Technology, Shun.com Technology (16.16 +1.06%, diagnostic shares), Kangtai Biologicals, and NetSuite Technology, among others.
The MSCI China A-share onshore small-cap index will add 503 constituents and remove 49, with most of the additions coming from the eligible China GEM index. 66 stocks will be added to and 10 removed from the MSCI China AllShares Index.
According to statistics, the 18 GEM stocks that have been included since the beginning of the year are up an average of about 26 percent this year. Among them, Flush has risen the most, year-to-date has risen 124.03 percent. on May 14, Flush shares closed slightly higher. As of the close of business, it was 85.13 yuan, up 1.22%.
In addition, Aier Ophthalmology, Wen's shares, Myriad Medical and other stocks, year-to-date share price rose more than 30%. As a result of the general meeting of shareholders, the company's director secretary dislike of small and medium-sized shareholders triggered an uproar. Yesterday, Myriad Medical shares opened low once plummeted, as of the close, the stock price of 143.76 yuan, down 2.62%.
In these 18 stocks, this year's worst share price performance should be Songcheng Performing Arts and Ningde Times, year-to-date share price rose -0.37% and -2.22%. May 14, the two stocks both closed up, or 0.76%, 0.80%.
GEM, mid-cap stocks favored by funds
The recent net outflow of funds from the north has triggered market concerns, but the market believes that the inflow of funds from the north will be a continuous process as MSCI expands the proportion of A-share inclusion.
A-shares after many days of retracement, back to the overall valuation of the lower layout of the good period. Data show that, as of May 9, 2022, the Shanghai Composite Index retraced to 12.70 times, in the low to high since the listing of the 13.77% interquartile point; MSCI thematic index - MSCI China A shares, from April 19, 13.29 times retraced to May 9, 11.49 times.
From the interconnected market operation trend, the GEM subject was against the trend to increase positions. Statistics show that from May 6 to 9, the northbound funds to increase positions in GEM subject to a total of more than 300 million yuan, the plate average shareholding ratio of about 0.63%, the total position size of close to 40.5 billion yuan; among them, Wen's shares were increased by more than 136 million yuan, Myriad Medical was also increased, and the Ningde era by a small reduction in the number of holdings.
Market analysts believe that, from a horizontal point of view, whether the SSE Composite Index or MSCI China A shares, compared with the international mainstream index is in the valuation of the depression, on the whole, have a greater investment attractiveness; at this time superimposed on the MSCI to increase the proportion of A shares included in the news, in the medium and long term, the inflow of foreign capital into the trend of the A shares will remain unchanged.
Dongxing Securities (12.14 +1.59%, diagnosis) analysis pointed out that, specifically, the MSCI inclusion factor changes will be from the volume, rhythm and structure of foreign capital inflows. First, the early inclusion of mid-cap stocks will bring more incremental capital for A shares. Compared to the original program, the new program is expected to bring in a total of RMB 427.9 billion in tracking funds. Second, the clarification of the inclusion tempo of GEM underlying and the acceleration of the inclusion tempo of mid-cap stocks reflect the acceleration of the overall process of MSCI's inclusion of A-shares, which may stimulate foreign investors to lay out their plans in advance and accelerate the inflow into the A-share market. Third, the marginal change in the pace of inclusion reflects MSCI's focus on high-quality growth stocks, which will also affect the configuration preferences of foreign investors, foreign capital inflow structure will further improve, promoting foreign investment in A-share more diversified allocation.
The market expects that with the inclusion of A-share GEM stocks by MSCI, the structure of foreign capital inflows has seen marginal changes, and is expected to further differentiate in the later stage. According to Dongxing Securities, from the historical data, before the end of 2018, the growth rate of the net capital inflow of Shanghai Stock Connect was significantly larger than that of Shenzhen Stock Connect, and foreign investors have a clear preference for large-cap stocks. However, from December 2018, the ringgit growth rate of net capital inflow into the Shenzhen Stock Connect was significantly larger than that of the Shanghai Stock Connect, and the marginal change in the structure of capital inflow implied that the preference of foreign investors was also experiencing marginal changes. Dongxing Securities expects that with the gradual inclusion of the GEM and mid-cap stocks, this feature of capital inflow preference will continue to come to the fore.
Bringing more than 100 billion new funds
This year, MSCI will expand the proportion of A-share inclusion in three times, according to market estimates, this is expected to bring about 180 billion incremental funds, the next two will also bring about 300 billion funds. Overall, this year's incremental funds or will reach about 480 billion.
Golden Securities (9.34 +1.85%, diagnostic shares) said that according to calculations, according to MSCI's A-share inclusion ratio to enhance the program, May A-share large-cap inclusion ratio increased to 10%, while the inclusion of the GEM large-cap stocks, according to the yuan of incremental funds of about 128.1 billion yuan.
From the overall inclusion situation this year, Dongxing Securities calculated that the A-share inclusion factor expansion involves the indexes of the MSCI Global Index, MSCI Emerging Markets Index, MSCI Asian Markets (except Japan) Index, MSCI China Index, combined with the amount of funds tracking the corresponding indexes announced by MSCI, it is estimated that the expansion of the MSCI in May, August and November will bring respectively A shares to bring 17.77, 17.173 and 28.832 billion U.S. dollars of incremental capital, a total of 427.9 billion yuan (calculated at the exchange rate midpoint of 6.71).
But Dongxing Securities also believes that this is only the more certain part (passive funds), and more attention should be paid to the super-expected liquidity part (active funds) brought by the MSCI expansion.
Measurement results of China Merchants Securities (16.14 +0.81%, diagnosis) also showed that the three steps of the expansion of Na A will bring incremental funds of about $ 19.1 billion, $ 17.9 billion and $ 30.9 billion, respectively, and the cumulative total of incremental foreign capital of about 455 billion yuan in 2022 (exchange rate of 6.7), of which about 91 billion yuan of passive funds, active funds of 364 billion yuan. billion yuan. China Merchants Securities also said that if we also consider the inclusion of A shares in the FTSE and S&P Dow Jones indices, the combined incremental capital will reach about 545 billion yuan.
Nuggets
The flush (300033)
The flush 2022 quarterly report shows that in the first quarter of this year, revenue of 287 million yuan, an increase of 20.48% year-on-year; net profit of 100 million yuan, a year-on-year increase of 33.25%; earnings per share of 0.19 yuan. For the reason of the net profit growth, the company said that in the first quarter of 2022, the domestic capital market warmed up, the market trading is active, and investors' demand for securities and financial information and services increased.
Year-to-date in 2022, the share price of Flush has doubled, the highest rise to 134.56 yuan, as of yesterday's closing cumulative increase of 124.03%, which is closely related to the previous A-share market rally for days.
The company's 2018 annual report shows that the company realized operating income of 1.387 billion yuan, down 1.62% compared with the same period of the previous year; to achieve net profit attributable to shareholders of listed companies of 634 million yuan, a year-on-year decline of 12.64%.2018 annual profit distribution proposal for the proposed distribution of every 10 shares of 4.8 yuan. The company said that its performance declined, firstly, because the domestic capital market conditions in 2018 continued to be sluggish, investors' demand for financial information services has declined; secondly, related to the company's technology research and development expenses increased.
Because of this, flush since the beginning of the year doubled the market, so that the company's many major shareholders can not afford to sit down. the evening of April 9, flush released a reduction announcement, the company's four major shareholders intend to reduce the stake of 7.76%. If according to the closing price on that day, the part of the market value of about 5.335 billion yuan. It is understood that the company's second to fifth largest shareholders Ye Qiongjiu, Shishi Kaisio Investment Consulting Co., Ltd, Yu Haomiao and Wang Jin intend to reduce their holdings of the company's shares in the next six months, which together account for about 7.76 percent of the listed company's total share capital.
Hui Chuan technology (300124)
Recently the popular research subject has Hui Chuan technology, the company in addition to attracting many tens of billions of star private research, before and after *** counting more than 300 institutions are involved in the company's research conference. This conference call, held on the day after the company announced its 2018 financial results. According to the financial report, Huichuan Technology realized operating income of 5.874 billion yuan last year, a year-on-year increase of 22.96%; realized net profit attributable to shareholders of listed companies of 1.167 billion yuan, a year-on-year increase of 10.08%.
While the company's revenue and net profit to maintain growth, but in the past three years, Huichuan Technology performance growth has slowed down, exposing some business bottlenecks. To inverter class, servo systems, new energy products and programmable logic controllers and other main products of Huichuan technology, relying on the traditional general automation of the main business, driven by the overall performance of steady growth. But the short board appeared in the new energy products performance is not as expected, as well as new business railroad business has not yet formed a scale.
Specifically, in several major main business, the new energy products of Huichuan technology revenue growth rate last year is the slowest - the business last year, operating income of 1.085 billion yuan, an increase of only 6.75% year-on-year. This is mainly affected by the introduction of a new policy of new energy vehicle subsidies in the middle of last year, resulting in a decline in the relevant subsidies, while some of the car companies appeared to have capital flow pressure, thus affecting the sales of the industry as a whole.
But institutions are still optimistic about the development prospects of Huichuan Technology, that the company's general business competitiveness is outstanding, with the stabilization of the industry will be higher growth; new energy vehicle business short-term impact of the slowdown in the growth of buses, logistics vehicles, 2022 with the release of the passenger car business, began to enter a new round of growth; elevator business through the acquisition of the Best, the layout of the overseas, the development of a steady.
Pilot Intelligence (300450)
The company recently signed a lithium battery production equipment with Northvolt, "equipment design, production, installation, commissioning of the General Terms and Conditions and the Framework Agreement", the two sides on the lithium battery production equipment business to establish a cooperative relationship, the agreement between the two sides plan to carry out about 1.939 billion yuan in the future of the business cooperation, but the specific contract depending on the project situation Agreed separately.
According to the website of the Ministry of Commerce, the Swedish startup Northvolt, founded by the former head of Tesla, plans to build a large-scale lithium battery energy storage plant in the Nordic region, with the goal of battery production in 2023 to be able to reach the equivalent of a total of 32GWh, with the planning of four plants, each of which scales up to 8GW **** 4 billion euros in investment. The first phase of the plant's construction work started in the second half of 2018, and will start delivering batteries in late 2020.
The strategic partnership between Pioneer Intelligence and Northvolt has just begun. The agreement between the two sides is an agreement of intent, indicating that Northvolt will give priority to purchasing lithium battery equipment such as cylindrical battery winding machines, assembly lines and chemical composition of pilot intelligence, amounting to 1.939 billion yuan of business cooperation scale has not yet been clear about the specific product categories, delivery time and other content. According to Northvolt production line planning, the future of the three plants remaining 24GWh equipment procurement cooperation is a probable event.
Pilot Intelligence has entered the global major power battery leading supplier system.CATL has been the largest customer of Pilot, BYD has also become the company's core customers, and at the end of December 2018, the company has signed a lithium battery equipment contract with Tesla in the amount of about 43 million yuan, formally entering the global supporting system of Tesla, which lays the foundation for the company's subsequent cooperation with Tesla, the company Also in 2018 for LG to provide a number of production lines of winding equipment, etc., can be seen that the company's products are widely favored by domestic and foreign customers.