In order to improve the efficiency of capital utilization, listed companies generally use idle funds for investment and financial management, some are keen to buy cash for financial management, and some prefer to buy and sell stocks in the secondary market, resulting in huge differences in investment returns. As the disclosure of A-share annual reports has entered a peak stage, last year's investment income has also become a major attraction.
Overall, the net investment income of A-share listed companies that have released annual reports in 2023 will decline year-on-year. As of the evening of April 13, 1,558 companies disclosed their net investment income in 2023, with a total amount of 958.95 billion yuan, compared with 1,099.713 billion yuan in the same period last year, a year-on-year decrease of 12.8%, of which 298 had a loss in net investment income, accounting for about two percent, and some companies lost money due to stock speculation.
The investment income of insurance funds declined as a whole, and the leading brokerages grew against the trend
In the context of the relatively sluggish A-share market in 2023, the investment income of listed companies has attracted special attention from the market. According to the data, 101 of the above 1,558 listed companies will have a net investment income of more than 1 billion yuan in 2023, and the industry distribution has not changed significantly compared with the past few years, including 24 non-bank finance, 19 banks, 13 transportation, and 5 automobiles and real estate.
There are 21 listed companies with net investment income of more than 10 billion yuan in 2023, distributed in financial industries such as banking, insurance and securities. Chinese Shou (601628. SH) will have a net investment income of 198.207 billion yuan in 2023, temporarily ranking first in the two cities, with a net investment return of 3.77%. In 2022, the scale of investment net income of Chinese Life will also be the first in the whole market.
Insurance capital has always been a large investor, but in 2023, the five listed insurance companies will show investment income "one rise and four declines", with total investment income falling by 15.24% year-on-year 601318. SH) achieved positive growth in total investment income compared with 2022, reaching 123.899 billion yuan, a year-on-year increase of 32.78%. The total investment income of CPIC, Chinese People's Insurance, Chinese Life and Xinhua Insurance in 2023 will be 44.115 billion yuan, 52.237 billion yuan, 141.968 billion yuan and 22.251 billion yuan respectively, with year-on-year changes of -19.7%, -28.3%, -24.38% and -50.03% respectively.
In addition to insurance, among the large state-owned banks, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of Communications (601328. SH) and other net investment income in 2023 ranked in the forefront, and the year-on-year growth rate reached double digits. Among them, Bank of Communications reached 26.028 billion yuan, a year-on-year increase of 70.3%, mainly due to the year-on-year increase in income related to equity investment in subsidiaries. Among the joint-stock banks, China CITIC Bank (601998. SH) net investment income growth rate in 2023 will reach 30.96%, from 19.727 billion yuan in the same period of the previous year to 25.834 billion yuan.
Among the brokerage stocks, CICC (601995. SH), Huatai Securities and Guotai Junan (601211. SH) temporarily ranked among the top three in terms of net investment income, with 15.084 billion yuan, 13.281 billion yuan and 10.855 billion yuan respectively, with all three achieving double-digit year-on-year growth, and Guotai Junan's growth rate reached 49.4%.
CICC's equity investment at the end of 2023 increased by RMB1.017 billion year-on-year, with a growth rate of 18.23%, mainly due to the change in the net income from securities held as a result of co-investment on the STAR Market compared with the net loss in 2022. In addition, CICC's net investment income from bonds also increased by RMB586 million, while other investment income decreased by RMB1.638 billion year-on-year, mainly due to a significant decline in the scale of investment in private equity funds.
In addition to non-bank financial and banking stocks, among the top 20 net investment income, SAIC Motor (600104. SH) is the only manufacturing company, and its net investment income in 2023 was 14.949 billion yuan, a slight increase of about 250 million yuan from 14.702 billion yuan in the same period last year.
In addition, China Mobile, PetroChina (601857. SH), GAC Group's net investment income in 2023 will exceed 8 billion yuan, and CATL (300750. SZ), Zijin Mining, Tianqi Lithium, China Coal Energy, China Shenhua and other leading energy stocks also have a net investment income of more than 3 billion yuan.
Among the 101 companies with a net investment income of more than 1 billion yuan in 2023, PetroChina has changed the most, with a net investment income of 11.14 billion yuan in 2022 and 9.554 billion yuan in 2023, mainly due to a significant decline in investment losses arising from the disposal of derivative financial instruments, which lost 28.931 billion yuan in the previous year and 11.019 billion yuan in 2023.
In the list of net investment income loss in 2023, China Railway Construction (601186. SH) temporarily ranked first with 4.23 billion yuan, and the investment losses of China Southern Airlines, OCT A, China Metallurgical Corporation, China Communications Construction, and Industrial Fortune Union ranked first.
CRCC's net investment income has been losing money for three consecutive years, with a loss of 4.665 billion yuan in 2022 and a loss of 193 million yuan in 2021. As of the end of 2023, China Railway Construction held 23 stocks, 2 funds, and 2 trust products, and the fair value change profit and loss of the company's securities investment was a loss of 33.707 million yuan. The net loss of large investment was mainly caused by the derecognition loss of financial assets measured at amortized cost of the company, and the investment loss of this accounting account was 5.563 billion yuan.
8 listed companies hold more than 10 shares, and Andre is the most keen on stock speculation
The income from securities investment of listed companies is the focus of the annual reporting season. Wind data shows that in the released 2023 annual report, 309 listed companies have disclosed securities investment information, and 8 companies hold more than 10 A-share stocks, including China Railway Construction, China Communications Construction (601800. SH), Andre (605198. SH), China Railway (601390. SH), Volkswagen Public, Changyuan Donggu, etc. However, on the whole, the purchase of bonds and currency funds was the main direction of securities investment by listed companies last year, and some companies spent hundreds of millions of dollars to speculate in stocks.
Among the above 309 listed companies, 156 have securities investment of more than 100 million yuan, and 41 have an amount of more than 1 billion yuan. Shen Wan Hongyuan(000166. SZ) and PetroChina Capital (000617.SZ) have securities investments of 385.77 billion yuan and 238.404 billion yuan respectively, and are the only two companies with securities investments of more than 100 billion yuan in their disclosed annual reports. However, the two companies do not invest in stocks, and their main investment direction is bonds.
CATL's securities investment temporarily ranked third, with 32.447 billion yuan, and the company held 10 stocks, including China Molybdenum (603993.SH), Pioneer Intelligence, Lygend Resources, Tianhua New Energy, Yongfu Co., Ltd., Hunan Yuneng, etc., most of which are upstream and downstream companies in the new energy battery industry chain. Among them, CATL will buy 26.747 billion yuan of CMOC shares in 2023, realizing investment income of 1.92 billion yuan, and the share price of CMOC rose 15.97% last year.
As of the end of 2023, the company holds 73 securities products, the vast majority of which are funds, with a total of 13 stocks, including Huaxi Securities, China General Number, HNA Holdings, Liaoning Chengda, China Resources Shuanghe, etc. During the reporting period, the net investment income loss of China Railway was 71.229 million yuan, of which the income from the disposal of long-term equity investment decreased by nearly 200 million yuan compared with the previous year.
The number of stocks held by China Communications Construction reached 42, including 4 Hong Kong stocks and 38 A shares, China Merchants Bank, China Merchants Securities, and Yutong Bus are the stocks with the highest book value at the end of the period, with a fair value loss of 3.602 billion yuan in the reporting period and a net investment income loss of 894 million yuan in 2023.
SAIC Group, which has the highest net investment income, as of the end of the reporting period, has invested in A-share stocks, a total of 10, with a floating loss of 1.1666 million yuan and a book value of 9.014 billion yuan during the reporting period, accounting for 6% of the company's overall financial assets of about 152.3 billion yuan. SAIC's holdings are all leading stocks in various industries, such as China Merchants Bank (600036. SH), Changchang Lithium, Huahong Company, Tianyue Cash, JEE Technology, etc. China Merchants Bank is the stock in which SAIC has invested the most, with a book value of 86.277 million yuan at the end of the period, which is still a good book profit compared with the initial investment cost of 36.8119 million yuan. SAIC's initial investment in the remaining nine stocks was relatively low, with seven stocks being less than 1 million yuan.
As of the end of 2023, the company holds 26 A-share stocks and 8 public funds, mainly concentrated in the electronics and energy industries, including SMIC, Shaanxi Energy, Yonyou Network, Bank of China Securities, Inspur Information, Yankuang Energy, Shangji CNC, etc.; As of the end of 2023, Andeli's securities investment amounted to 482 million yuan, with a loss of 34.7514 million yuan in the current period, and the company's net profit attributable to the parent company in the current period was 255 million yuan.
(This article is from Yicai)