The annual report performance of Lin Yuan's heavy stocks is announced in advance! These companies with both revenue and profits are favored by brokers, and the target price has more than 20% upside!
Editorial Department of this journal | Liu Zenglu
During the "release" period of the annual report, many companies continued to "film flowers". Following the intensive release of performance forecasts, on the eve of the Spring Festival, the annual reports and performance reports of listed companies have also met with investors. Observation shows that many of the high-performing stocks publicized in the performance express report are the "favorites" of major institutions, and the heavy stocks of Lin Yuan, Feng Liu, Fu Pengbo, and Xie Zhiyu are among them. And although the market as a whole is still "wide shock", it is difficult to resist the research enthusiasm of major institutions, and many companies with excellent fundamentals have received a number of institutions since the New Year.
Performance reports are coming
76 companies increased their revenue and profits
The "annual report drama" that began on January 27 is still a small lotus, and before the Lunar New Year, only 4 companies officially disclosed their annual report performance. However, recently, many companies have begun to release performance reports, which are more detailed and highly consistent with the data disclosed in the official annual report than the performance forecast.
At present, a total of 132 companies have released performance reports in their official annual reports in advance, and in terms of profitability, China Merchants Bank has the strongest ability to "make money", achieving a net profit attributable to the parent company of 146.602 billion yuan in 2023, an increase of 6.22% compared with 2022. In addition, the annual net profit attributable to the parent company of nine companies, including China CITIC Bank, Yangtze River Power and CITIC Securities, also exceeded 10 billion yuan (see Table 1).
From the perspective of growth, the year-on-year growth rate of the net profit of non-ferrous metal stocks Tongxiang Technology, Gold and Molybdenum Co., Ltd., and Wuxin Tunnel Equipment, a special equipment manufacturing company, is more "eye-catching", and it has doubled compared with 2022. And statistics show that among the companies that currently release performance reports, there are 94 companies with annual profits and year-on-year growth, if further combined with operating income statistics, a total of 76 companies operating income and net profit attributable to the parent company both increased, and 19 companies such as Tongxiang Technology, Gold Molybdenum Shares, Wuxin Tunnel Installation, and Happy Home are the two main financial data growth rate of more than 20% (see Table 2).
Taking Wuxin Tunnel Equipment as an example, the company disclosed that the performance express report said that in 2023, the operating income will be 945 million yuan, a significant increase of 76.34% year-on-year, and the net profit attributable to the parent company will be 161 million yuan, a year-on-year increase of 107.12%.
Lin Yuan, Feng Liu's heavy stocks
Confirm the results of the annual report in advance
It is observed that many of the companies that disclose their performance reports in advance before the holiday are heavy stocks of major institutions and even star fund managers.
For example, Hikvision, a leading security company, has achieved an annual operating income of 89.355 billion yuan, a year-on-year increase of 7.44%, and a net profit attributable to the parent company of 14.117 billion yuan, a year-on-year increase of 9.96%.
According to the quarterly report of the public fund that has just ended in the early stage, a total of 250 equity public fund products (including ordinary equity funds, partial stock hybrid funds, balanced hybrid funds, and flexible allocation funds) have included Hikvision in the top ten heavy stocks. Xingquan Herun Fund, co-managed by Ye Feng, held 24,546,900 shares of Hikvision at the end of the fourth quarter, making it the fifth largest heavy stock, but compared with the end of the third quarter of 2023, Xie Zhiyu reduced his holdings of Hikvision by 6,506,300 shares.
At present, the positions of institutions other than public funds will not appear until the official annual report of listed companies is released, but combined with the institutional holdings at the end of the third quarter of 2023, Gao Yi Linshan No. 1 Yuanwang Fund, managed by Gao Yi Asset Star Fund Manager Feng Liu, ranks the fourth largest shareholder of the company with a position of 435 million shares, and compared with the end of the second quarter, Feng Liu has once again increased his position in Hikvision. In addition, among the top ten shareholders of the company at the end of the third quarter, there were Central Huijin Asset Management Co., Ltd., Hong Kong Securities Clearing Co., Ltd. and other institutions.
The express announcement announced that the operating income and net profit reached 175.361 billion yuan and 16.814 billion yuan respectively, an increase of 5.92% and 3.57% respectively compared with the same period in 2022. Also looking at the list of major shareholders of the company at the end of the third quarter, Hong Kong Securities Clearing Co., Ltd., China Securities Finance Co., Ltd., Central Huijin Asset Management Co., Ltd., Abu Dhabi Investment Authority, Hillhouse Capital's HHLR Management Co., Ltd. - China Value Fund (Exchange) are among them.
The announcement said that the annual operating income reached 10.035 billion yuan, and the net profit attributable to the parent company reached 2.784 billion yuan, an increase of 15.42% and 12.59% respectively over the same period in 2022.
Brokerages are positively optimistic
10 companies have an upside of more than 20%
Combined with the latest brokerage attitudes, 33 of the 76 companies that have reported revenue and profit growth have received buy ratings from brokerages since 2024, and 21 of them have been given clear target prices.
At the same time, Liberty, which is favored by Tianfeng Securities and GF Securities, has given target prices of 12.47 yuan and 11.61 yuan to the company respectively, which is 84.47% and 71.75% higher than the current stock price respectively. Bao Rongfu, an analyst at Tianfeng Securities, said that considering the company's sufficient orders in hand and the equity incentive plan to enhance corporate cohesion, it is expected that the company's net profit attributable to the parent company in 2023-2025 will be 2.5/3.5/480 million yuan, and the company will be given 16 times PE in 2024, with a corresponding target price of 12.47 yuan. Geng Pengzhi, an analyst at GF Securities, also said that under the rapid growth of the company's orders in 2022, the company's performance in the past two years is expected to be gradually released, in addition, the company's recent new orders have accelerated, so it is expected that the company's net profit attributable to the parent company will maintain rapid growth from 2023 to 2025, which is 1.95/ 2.74/365 million yuan, the performance continued to increase highly, referring to the valuation level of comparable companies (about 18.6 times PE in 2024), giving the company a PE valuation of 19 times in 2024, corresponding to a reasonable value of 11.61 yuan per share.
On February 6, UBS Securities analyst Chen Chen gave a target price of 266 yuan to Aibo Medical, which is nearly 80% higher than the current stock price.
On February 3, Guotai Junan analyst Peng Lei gave the company a target price of 57.97 yuan in the report, which is more than 70% higher than the current stock price. The reason for its optimism is that the company benefits from the high prosperity of the aerospace industry, the continuous upgrading of the product business structure, the simultaneous development of the domestic and international markets, and the continuous promotion of strategic synergy, the performance is expected to maintain high growth, and the compound growth rate of profits during the "14th Five-Year Plan" period is expected to exceed 30%.
In addition, Jereh shares, gold and molybdenum shares, Ganyue Expressway, Sinosteel International and other companies have also been given higher target prices by brokers, with an upside of more than 20% compared with the current stock price (see Table 3).
Since the New Year
High-performing stocks have been actively investigated by a number of institutions
In addition to the optimism of brokers, since the beginning of this year, a number of companies with both revenue and profit growth have also been "onlookers" surveyed by other institutions such as public and private equity funds (see Table 4).
For example, in the list of institutions surveyed on January 21 this year, more than 100 institutions appeared, including GF Fund, Bosera Fund, Gaoyi Assets, Tamsui Spring, Ge Weidong's Chaos Investment and other institutions. In response to everyone's concern about the company's current and future participation in new fields such as underwater ships, commercial aerospace, and manned spaceflight, Aviation Materials Co., Ltd. said that in addition to aviation and aerospace fields, the company's products are also widely used in ships, weapons, electronics, nuclear industry, railways, bridges, biological engineering and other fields. The company is involved in new fields such as underwater ships, commercial spaceflight, and manned spaceflight through products related to submarine observation windows, astronaut masks, and rubber seals in the transparent parts business.
In the future, we will be guided by market demand, accelerate production capacity building, and vigorously expand new business areas. In view of the operation and profitability of the company's cloud platform, the company said that it has always attached great importance to the investment in software, and the cloud platform has signed many customers, and the company's strategy is to graft software services to the cloud platform to provide more cloud services. The gross profit margin of software services is high, and the replication cost of the solution is low, which is basically net profit. Regarding the company's advantages in domestic and foreign manufacturers' competition, revenue analysis and outlook for 2024, the company said that its product quality is reliable, software development is convenient, product launch speed is fast, software solutions are also at the forefront of the market, there is user word of mouth, and ecological influence is an advantage. The performance in 2024 is expected to be better than in 2023, with overseas business accounting for 60-70%, which is relatively high, and the ESP32-C3 and ESP32-S3 series are expected to continue to grow rapidly. The final revenue will depend on the actual pick-up of the customer's goods.
(The individual stocks mentioned in the article are for example analysis only, and do not make trading recommendations.) ）