Weekly Review|State Council Report: Promote the leading securities companies to become stronger and better

First, the industry macro

State Council Report: Promote the head securities companies to become stronger and better

On April 25, the State Council issued a report on the research and handling of the deliberation opinions of the special report on the management of state-owned assets of financial enterprises and the rectification and accountability. The report pointed out that it is necessary to promote the quality and efficiency of financial state-owned assets and state-owned enterprises, and concentrate on building a "national team" in the financial industry. Research and draft an action plan to strengthen the management of state-owned financial capital, promote large state-owned financial enterprises to benchmark with world-class financial enterprises, highlight their main business, do fine and professional, and continuously enhance their competitiveness and international influence. Research and formulate guidance on promoting the high-quality development of the insurance industry, and promote the standardized development of non-bank financial institutions. Promote leading securities companies to become stronger and better, and support the Shanghai and Shenzhen stock exchanges to build world-class exchanges.

Foreign investors rarely sing more than China's real estate market

Foreign giants suddenly rarely sang about China's real estate market, which attracted attention. John LamJ, head analyst of UBS Greater China Real Estate Research, said in a recent interview: "For the first time after three years of bearishness, we have become more optimistic about China's real estate sector thanks to government assistance. "From a market perspective, positive signs are emerging in China's real estate market. Among them, Shanghai's luxury housing sales continued to be hot, driving Shanghai's new home price index to rise month-on-month, and Shenzhen's property market also showed signs of recovery, with the number of second-hand housing transactions reaching 4,547 units in March, a month-on-month increase of 115.13%, and as of April 15, the number of second-hand residential transactions in Shenzhen reached 2,067 units, exceeding the same period in March.

Northbound funds unilaterally bought 22.449 billion yuan throughout the day

On Friday, northbound funds unilaterally bought 22.449 billion yuan throughout the day, setting a new high since the opening of the cross-border Stock Connect, of which 11.323 billion yuan were net purchases in Shanghai-Hong Kong Stock Connect and 11.126 billion yuan in Shenzhen-Hong Kong Stock Connect. At the close, the Shanghai Composite Index rose 1.17% to close at 3,088.64 points. Most of the industry sectors closed up, the securities sector broke out, precious metals, diversified finance, software development, communication equipment, and Internet services sectors rose first, and banks and engineering consulting services fell first. Some media reporters checked the data and found that in the first quarter of this year, QFII, as an important type of foreign capital, increased its holdings of a number of A-share listed companies, which is a microcosm of the recent foreign allocation of Chinese assets. Behind the positive attitude of some foreign investors towards Chinese assets is that Chinese assets have entered the value range after continuous adjustments. In addition, a series of policy measures such as regulatory promotion of listed companies to strengthen dividends and buybacks have also strengthened the expectation of China's asset returns, promoting the return of relevant funds or increasing allocation.

Second, the company

Guolian Securities plans to issue A shares to acquire Minsheng Securities

On the evening of April 25, Guolian Securities announced that the company is planning to acquire control of Minsheng Securities Co., Ltd. and raise matching funds by issuing A shares. Trading in the Company's A-shares will be suspended from the market open on Friday, April 26, 2024, and the suspension is expected to last no more than 10 trading days. At the end of last year, the change of shareholders of Minsheng Securities was approved by the China Securities Regulatory Commission, and Guolian Group officially became the largest shareholder of Minsheng Securities. The development of Guolian Securities and Minsheng Securities after the merger has attracted much attention, and the integration of the two can achieve complementary advantages and resource sharing, which is conducive to achieving the goal of "1+1>2". However, the dispersed shareholding structure of Minsheng Securities may be a major obstacle to the integration of the two. In March this year, Minsheng Securities appointed Gu Wei, president of Guolian Group, as the chairman of the fourth board of directors. This personnel change is also regarded as another substantive action after the Guolian Group became the owner. According to the data, the number of shareholders of Minsheng Securities is relatively large, of which Shanghai state-owned assets hold nearly 20% of the shares of Minsheng Securities, and the release of the announcement of the acquisition plan means that the integration plan has entered a substantive stage.

The total revenue of 22 A-share lithium battery companies last year exceeded 615.1 billion yuan

According to the data, as of April 25, 22 of the 32 companies in the A-share lithium battery sector have disclosed their 2023 results, of which 12 companies have achieved year-on-year growth in operating income and 9 companies have achieved year-on-year growth in net profit attributable to the parent company. On the whole, the total revenue of 22 companies last year was 615.18 billion yuan, of which the total operating income of the three leading enterprises of CATL, EVE and Guoxuan Hi-Tech was 485.81 billion yuan, accounting for 78.97%. Judging from the annual report data, the lithium battery sector has a high market concentration, and the leading enterprises maintain high R&D investment to ensure market competitiveness and profitability leading the industry. According to the data, the 22 lithium battery companies that have disclosed their annual reports have a total net profit of 53.117 billion yuan attributable to the parent last year, while the profit of a single company in the CATL era reached 44.12 billion yuan. In terms of net profit growth, the head enterprises are still far ahead, with the net profit attributable to the parent company of Guoxuan Hi-Tech increasing by 201.28% year-on-year, CATL increasing by 43.58%, and EVE lithium energy increasing by 15.42%. According to data disclosed by the Ministry of Industry and Information Technology, in 2023, the mainland lithium battery industry will maintain a growth trend, and it is estimated that the total output of lithium batteries in the country will exceed 940GWh, a year-on-year increase of 25%, and the total output value of the industry will exceed 1.4 trillion yuan.

Tesla's acceleration of the launch of "affordable new cars" has made the market boil

In the early morning of Wednesday Beijing time, electric vehicle giant Tesla released its latest Q1 earnings report, which was completely in line with market expectations. Tesla's Q1 financial data shows that revenue was US$21.301 billion, down 9% year-on-year, market expectation of US$22.1 billion, the first year-on-year decline in revenue since the beginning of 2020, net profit attributable to the parent company was US$0.45, down 47% year-on-year, market expectation of US$0.51, gross profit margin was 17.4%, down 199 basis points year-on-year, and free cash flow turned negative, at the end of the last quarter of US$2.06 billion. The company attributed the turnaround to a $2.7 billion inventory backlog and a $1 billion "AI infrastructure" capital expenditure. Most of the data in this financial report fell short of expectations, and this year's delivery expectations have not improved. However, it was the statement of "accelerating the launch of more affordable new models" that made the company's stock price stronger after hours, rising 12% on Wednesday and 4.95% on Thursday. Subsequently, Tesla CEO Elon Musk said in an analyst conference call that the lower-priced model will start production in early 2025, if not later this year.

3. Funds

The performance of a number of companies on the Beijing Stock Exchange increased sharply in the first quarter! Public funds frequently increased their positions

Since the beginning of this week, the first quarter report of the Beijing Stock Exchange has disclosed that the performance of many companies such as Haidar and Baixinglong in the first quarter has achieved a large year-on-year increase, among which Gaishi Food, Parallel Technology, Meibang Technology and other companies have turned losses into profits in the first quarter of this year.

Some companies saw a year-on-year decline in first-quarter performance. According to the quarterly report disclosed by Tongyi Aerospace, the company's revenue in the first quarter was 28.35 million yuan, a year-on-year decrease of 34%, and the net profit was -7.27 million yuan, compared with a profit of 2.7 million yuan in the same period last year, and the net profit after deducting non-profits was -7.54 million yuan. In addition, Chunguang Pharmaceutical, Shuguang Digital Innovation, Jilin Carbon Valley and other companies have seen a significant year-on-year decline in net profit in the first quarter of this year.

In the first quarter, the Beijing Stock Exchange 50 Index experienced a downward dip in weakness, but many companies have been increased by institutions, and public funds have also appeared frequently, and performance growth stocks are more favored.

In the first quarter, Kaiyuan Securities increased its holdings of 1.47 million shares of Bingyang Technology, holding 1.69 million shares at the end of the period, accounting for 0.98% of the company's total share capital, rising to the third largest shareholder of the company. Kaiyuan Securities increased its holdings in Beijing Stock Exchange companies in the first quarter, in addition to Bingyang Technology, it also increased its holdings in Runnong Water Saving, Oufu Egg Industry, Kaite Co., Ltd. and other companies.

According to the quarterly report of Runnong Water Saving, Kaiyuan Securities increased its holdings of 2.53 million shares of the company during the reporting period, with a total of 3.14 million shares at the end of the period, accounting for 1.2% of the company's total share capital, ranking the ninth largest shareholder of the company.

Bai Xinglong and other companies were increased by public funds in the first quarter. According to the first quarterly report, Agricultural Bank of China Co., Ltd. - Huaxia Beijing Stock Exchange Innovative Small and Medium-sized Enterprises Select Two-year Regular Open Hybrid Initiation Securities Investment Fund increased its holdings of 760,000 shares of Baixinglong, holding 860,000 shares at the end of the period, accounting for 1.32% of the company's total share capital, ranking the ninth largest shareholder of the company.

Luce shares in the first quarter of the three public funds to increase their positions, Huaxia Bank Co., Ltd. - GF Beijing Stock Exchange Select Two-Year Regular Open Hybrid Securities Investment Fund, Industrial and Commercial Bank of China Co., Ltd. - E Fund Beijing Stock Exchange Select Two-Year Regular Open Hybrid Securities Investment Fund, Agricultural Bank of China Co., Ltd. - Wanjia Beijing Stock Exchange Huixuan Two-year Regular Open Hybrid Securities Investment Fund ranked among the top ten shareholders of the company after increasing their holdings.

According to the quarterly report of Bond shares, the company not only increased its holdings by Kaiyuan Securities in the first quarter, but also obtained a new position from the Beijing Stock Exchange 50 Index Fund Bank of Beijing Co., Ltd. - Chuangjin Hexin Beijing Stock Exchange 50 Component Index Enhanced Securities Investment Fund, with a shareholding ratio of 0.4453%, ranking the eighth largest shareholder of the company.

In the first quarter, Jianbang Technology was reduced by 60,000 shares by Agricultural Bank of China Co., Ltd. - China Beijing Stock Exchange Innovative Small and Medium-sized Enterprises Select Two-Year Regular Open Hybrid Securities Investment Fund, but it was increased by Bank of China Co., Ltd. - China Securities Construction Investment Beijing Stock Exchange Select Two-Year Regular Open Hybrid Securities Investment Fund, China Merchants Bank Co., Ltd. - China Growth Select 6-month Regular Open Hybrid Initiated Securities Investment Fund, in addition, Agricultural Bank of China, a non-Beijing Stock Exchange theme public offering fund - ChinaAMC Steady Growth Hybrid Securities Investment Fund added nearly 770,000 shares, with a shareholding ratio of more than 1%.