CFIC Introduction
◆The Shanghai Stock Exchange reported on the evening of April 30 that as of the end of April, listed companies on the Shanghai Stock Exchange have completed the disclosure of their 2023 annual reports. Overall, in 2023, Shanghai-listed companies will achieve a total operating income of more than 51.8 trillion yuan and a total net profit of 4.3 trillion yuan.
The Shanghai Stock Exchange reported on the evening of April 30 that as of the end of April, listed companies on the Shanghai Stock Exchange have completed the disclosure of their 2023 annual reports. Overall, in 2023, Shanghai-listed companies will achieve a total operating income of more than 51.8 trillion yuan and a total net profit of 4.3 trillion yuan. It is worth noting that since the beginning of this year, a number of Shanghai-listed companies have actively carried out actions to improve quality and efficiency, and have taken dividends, repurchases, and increased holdings as early measures, and optimized operation and management, strengthened innovation and research and development as long-term followers, and are accumulating momentum for long-term development. The overall operating performance remains stable, and the level of production and operation is the center of capital market pricing. In order to consolidate the anchor of asset confidence and improve the return on capital, looking back on 2023, the operating performance of Shanghai companies will remain stable overall, and they will increase R&D investment and develop new quality productivity according to local conditions. First, the "quantity" is stable. In terms of the main board, in 2023, the main board companies of the Shanghai Stock Exchange will achieve a total operating income of 50.45 trillion yuan, a year-on-year increase of 0.7%, a net profit of 4.22 trillion yuan, a slight decrease of 1.2% year-on-year, and a net profit of 4.03 trillion yuan, a year-on-year increase of 0.8%. In terms of the STAR Market, the total operating income of the STAR Market in 2023 will be 1,397.78 billion yuan, a year-on-year increase of 4.7%, and the net profit for the whole year will be 75.96 billion yuan. Based on 2019, the compound growth rate of operating income and net profit of companies on the STAR Market in the past four years reached 23.3% and 24.4%, respectively. Second, "quality" improvement. At present, cultivating new quality productivity has become the key point to achieve high-quality development, and increasing R&D investment is a major path to form new quality productivity. According to the data, the total R&D expenditure on the main board of the Shanghai Stock Exchange in 2023 will be nearly 900 billion yuan, a year-on-year increase of 5%, maintaining a growth trend for three consecutive years. The total amount of R&D investment of companies on the Science and Technology Innovation Board reached 156.12 billion yuan, a year-on-year increase of 14.3%, the median proportion of R&D investment in operating income was 12.2%, and the R&D intensity of 83 companies exceeded 20% for three consecutive years. In recent years, Baosteel has successively developed four series of 58 new high-grade oriented silicon steel products, which strongly supports the development of the power equipment manufacturing industry; Third, "structure" optimization. In recent years, emerging industries in Shanghai have gradually become a climate. Taking the main board as an example, in the past decade, the number of emerging manufacturing and modern service companies on the main board of the Shanghai Stock Exchange has shown a step-by-step growth. The number of companies in the machinery and equipment industry increased from 45 to 125, the number of companies in the pharmaceutical and biological industry increased from 62 to 109, the number of companies in the automobile industry increased from 42 to 114, the number of companies in the power equipment industry increased from 45 to 87, the number of companies in the electronics industry increased from 26 to 71, and the number of companies in the communication industry increased from 14 to 29. The Science and Technology Innovation Board continues to implement the innovation-driven development strategy, gives full play to the role of serving a strategic platform for high-level scientific and technological self-reliance and self-reliance, and continues to build a "main front" for cultivating new quality productivity, and the industry structure layout is highly consistent with the development direction of new quality productivity, of which the new generation of information technology, biomedicine, and high-end equipment manufacturing companies account for more than 80% of the total. This year, the Shanghai Stock Exchange issued an action initiative of "improving quality, efficiency and return" to all Shanghai-listed companies to guide listed companies to take multiple measures to improve their operating quality and profitability, and better play their main responsibilities to return investors. Up to now, Shanghai-listed companies, including the main board and the Science and Technology Innovation Board, have actively carried out actions to improve quality, efficiency and returns, and continue to enhance investors' sense of gain through measures such as dividends, buybacks, and increased holdings. Let's look at cash dividends first, high dividends and strong returns have always been the labels of Shanghai companies. From 2020 to 2022, the total dividends of Shanghai companies were 1.14 trillion yuan, 1.43 trillion yuan, and 1.72 trillion yuan, accounting for 37.01%, 36.89%, and 41.05% of the net profit of listed companies at the end of the year, respectively. In 2023, the scale of cash dividends of companies on the main board of the Shanghai Stock Exchange will reach a new high. A total of 1,290 companies announced dividend plans, with a total annual cumulative dividend of 1.70 trillion yuan, an average dividend ratio of 40.22%, and a dividend yield of 3.74%. Among them, 1,028 have implemented dividends for three consecutive years, nearly 1,100 have a dividend ratio of more than 30%, 25 have a dividend amount of more than 10 billion yuan, Industrial and Commercial Bank of China and China Construction Bank have a dividend amount of more than 100 billion yuan, and 121 have a dividend yield of more than 5%. It is worth mentioning that nearly 100 companies have disclosed their 2023 interim dividend plans, and many companies, including the "five major banks", have announced that they will implement interim dividends in 2024, and the trend of multiple dividends a year is getting stronger. In terms of the Science and Technology Innovation Board, about seventy percent of the companies on the Science and Technology Innovation Board have launched cash dividend plans for 2023, with a total annual cumulative dividend of 42.47 billion yuan, with more than 300 companies having a cash dividend ratio of more than 30%, and 10 companies having a cumulative annual dividend of more than 500 million yuan. Among them, the cash dividends of Transsion Holdings, JinkoSolar, and China General Number reached 4.84 billion yuan, 2.24 billion yuan, and 1.8 billion yuan respectively, and 23 companies, including Chengda Biotechnology and Aviation Materials Co., Ltd., will implement cash dividends for many times in 2023. At the same time, the enthusiasm for repurchase and increase in holdings has not decreased. In 2023, 187 companies on the main board of the Shanghai Stock Exchange will announce repurchase plans, with a cumulative repurchase amount of 20 billion yuan, and shareholders of 182 companies listed on the main board of the Shanghai Stock Exchange will actively increase their holdings to "protect prices", an increase of 53 companies year-on-year, with an increase of 20.2 billion yuan. In terms of the Science and Technology Innovation Board, a total of 146 companies on the Science and Technology Innovation Board issued 152 repurchase plans, with the upper limit of the proposed repurchase amount reaching 17.89 billion yuan, of which 20 companies such as Jinbo Co., Ltd. and Espressif Technology have implemented multi-phase repurchase plans. A total of 42 companies on the STAR Market have issued 45 shareholding plans, and the upper limit of the amount of relevant personnel to increase their holdings has reached 1.26 billion yuan. The inflow of medium- and long-term funds into listed companies will be accelerated, and the quality and investment value of listed companies will be improved, and the willingness of medium- and long-term funds to enter the market will naturally be strengthened. At present, medium and long-term funds such as institutional investors and foreign capital continue to pay high attention to the Shanghai market. On the one hand, the value investment potential of the main board of the Shanghai Stock Exchange continues to attract overseas capital inflows, and so far in 2023, the net purchase volume of the main board of the Shanghai Stock Connect has exceeded 60 billion yuan. On the other hand, overseas investors are more recognizant of China's medium- and long-term development prospects, with foreign holdings on the main board of the Shanghai Stock Exchange, represented by Shanghai-Hong Kong Stock Connect, QFII and RQFII, reaching 1.59 trillion yuan, and 912 companies have been increased by foreign investors. Looking at the Science and Technology Innovation Board, the number of active accounts of professional institutional investors in this sector continues to increase, exceeding 70,000 by the end of 2023, a year-on-year increase of 30%, of which the number of active accounts of enterprise annuities and public funds has grown rapidly, with a year-on-year growth rate of more than 200% and 10% respectively, and institutional investors account for nearly 70% of their holdings (professional institutional investors and general institutional investors account for about 4% and 3% of the circulating market value respectively), of which long-term funds such as social security, insurance, and annuities account for nearly 5%. And the power of long-term investment is still growing. The new "National Nine Articles" proposes to vigorously promote the entry of medium and long-term funds into the market, including vigorously developing equity public funds, optimizing the policy environment for equity investment of insurance funds, and improving the investment policies of the National Social Security Fund and the Basic Pension Insurance Fund. In this regard, Zhang Jun, chief economist and dean of the Research Institute of China Galaxy Securities, believes that at the company level, it is not only necessary to strengthen the quality of development of listed companies, encourage listed companies to enhance their core competitiveness through continuous innovation and optimization of management, but also strengthen corporate governance, enhance the authenticity and transparency of financial reports, and enhance investor confidence. At the same time, it is necessary to encourage listed companies to actively participate in dividends and repurchases, and improve investor returns and attract medium and long-term capital investment through tax incentives and policy guidance.
Source of this article: China Securities Journal
Author: Huang Yiling
WeChat editor: Guan Qiao
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