On July 1, the concept of supply and marketing cooperatives rose against the trend. As of the close, China Agricultural Union, Huilong shares rose by the limit, Zhejiang Agricultural Shares, Swan Shares, Tianhe Shares, etc. followed up.
On the news side, the 10th meeting of the Standing Committee of the 14th National People's Congress voted on June 28 to pass the "Rural Collective Economic Organization Law of the People's Republic of China", which will come into force on May 1, 2025.
Supply and marketing cooperatives welcome favorable policies again
According to public information, the supply and marketing cooperative is a rural cooperative economic organization, which was once referred to as cooperatives and supply and marketing cooperatives, and has a history of nearly 100 years. Supply and marketing cooperatives have a strong imprint of planned economy. It has economic entities in the vast rural towns and towns, and it has a glorious period of nearly 40 years after the founding of New China, and its influence is very great.
The importance of supply and marketing cooperatives is becoming increasingly prominent in today's world, and their influence and role in various fields are constantly expanding. It is necessary to assume the role of linking counties and townships, and also shoulder the logistics and distribution of commodities. Supply and marketing cooperatives are of great significance to promoting economic and social development and progress.
In January this year, at the sixth plenary meeting of the seventh council of the All-China Federation of Supply and Marketing Cooperatives, Han Liping, secretary of the party group and deputy director of the council of the All-China Federation of Supply and Marketing Cooperatives, made it clear that the supply and marketing cooperatives will continue to deepen the comprehensive reform of supply and marketing cooperatives, continuously improve the ability and level of agricultural services, and accelerate the development of a comprehensive platform for serving farmers' production and life.
It is understood that the supply and marketing cooperatives will deepen the comprehensive reform from four aspects: focus on the service to ensure national food security, and build a modern agricultural service system for supply and marketing cooperatives. Focusing on expanding domestic demand, we will continuously improve the level of modern circulation services of supply and marketing cooperatives. Focusing on promoting the integrated development of urban and rural areas at the county level, accelerate the improvement of the service capacity of grassroots organizations of supply and marketing cooperatives. Focusing on enhancing core competitiveness and serving agriculture, we will continue to deepen the reform of socially-owned enterprises.
On June 28, the 10th meeting of the Standing Committee of the 14th National People's Congress voted to pass the Law of the People's Republic of China on Rural Collective Economic Organizations, which will come into force on May 1, 2025.
According to reports, the term "rural collective economic organizations" as used in this law refers to regional economic organizations that are based on collective ownership of land, exercise ownership rights on behalf of members collectively in accordance with the law, and implement a two-tier management system based on household contract management and combining unified and decentralized management, including township-level rural collective economic organizations, village-level rural collective economic organizations, and group-level rural collective economic organizations.
In the eyes of industry insiders, this news is mixed.
The good news is that the deep takeover of rural land by supply and marketing cooperatives can avoid capital encroachment on the rights and interests of villagers, and it is conducive to the rural economic collectives to invest in other forms of economic entities with quantitative assets.
The worry is that the supply and marketing cooperatives (or collective economic companies) will become the ultimate profiteering institutions of the property owners + developers of rural land in the future, or deepen the dual antagonism between urban and rural areas in the economic structure.
Related concepts bucked the trend
In the view of industry experts, the field of supply and marketing cooperatives is now in a stage of rapid development, showing a vigorous development momentum and broad application prospects. The total operating income in this field generally shows an upward trend, the total market value of several leading companies is similar, and some companies have excellent performance in the Flush ESG score, with a trend of sustainable development.
In addition, the supply and marketing cooperatives meet the characteristics of "low-profit and high-grade" state-owned enterprises. In the context of the spread of the phenomenon of "asset shortage", the investment value of "low-profit and high-grade" state-owned enterprises is highlighted.
Flush data shows that there are 14 related stocks in the concept of A-share supply and marketing cooperatives. Judging from the background of the shareholders, all of them are not small.
Among them, the All-China Federation of Supply and Marketing Cooperatives is the ultimate controller of the China Agricultural Union; Guangdong Provincial Supply and Marketing Cooperatives are the actual controllers of Tianhe shares; Zhejiang Supply and Marketing Cooperatives Association is the actual controller of Zhejiang Agricultural Co., Ltd.; Anhui Provincial Federation of Supply and Marketing Cooperatives is the actual controller of Xinli Finance; Shandong Provincial Federation of Supply and Marketing Cooperatives is the actual controller of Swan shares.
On July 1, Huilong shares hit the price limit. The company's main business is the domestic and foreign trade distribution of fertilizer, chemical and pesticide products, and the company's main products include nitrogen fertilizer, potash fertilizer and compound fertilizer. The company's dividend yield for 3 consecutive years is 3.11%, 3.43% and 3.40% respectively.
As the first listed company in the national supply and marketing cooperative system, Huilong has many years of experience in participating in land circulation projects, and has participated in land circulation projects in Quanjiao and Linquan counties in Anhui Province in 2010 (the project period is more than 10 years), with a total of 22,000 acres of land in the two places.
It is reported that menthol is currently one of the largest varieties of flavors and fragrances in the world, mainly used in daily chemical products, medicines, food and other fields. The menthol produced by Huilong can be used as a raw material for menthol flavored e-cigarettes.
Also touching the price limit is the Sino-Agricultural Union. The company's main business is to carry out pesticide registration and sales for the global market, mainly engaged in the export trade of preparations and raw materials, and its overseas income is mainly concentrated in Asia, Europe and Africa, and the European market is concentrated in Russia. The ultimate controller of the company is the All-China Federation of Supply and Marketing Cooperatives.
It is worth paying attention to the supply and marketing set. The company's shareholder, New Cooperative Trade Chain Group Co., Ltd., is a joint venture established by China Supply and Marketing Group Co., Ltd., Xichuan County Supply and Marketing Cooperatives Association, Tianjin Supply and Marketing Cooperatives, Jiangsu Supply and Marketing Cooperatives and other supply and marketing cooperatives; And the company is the vice chairman unit of the daily necessities procurement platform of the national supply and marketing cooperatives.
As of the close of trading on July 1, the total market value of supply and marketing Daji was 33.728 billion yuan, which is the company with the highest market value among the concept stocks of supply and marketing cooperatives. Supply and Marketing Daji is a large-scale national commodity circulation service enterprise, positioned as a comprehensive service operator of urban and rural commodity circulation, and its main business covers department stores, shopping malls, supermarket chains, commercial real estate and supply chain innovation business.
Previously, the company was subject to other risk warnings due to the negative net profit before and after deducting non-recurring gains and losses in 2020, 2021 and 2022, and the uncertainty of the company's ability to continue operations in the 2022 annual audit report. In the first quarter of 2024, the company successfully introduced industrial investors and the first batch of financial investors, obtained an investment of 3.28 billion yuan, and the company's working capital was completely improved, and the company successfully "took off the star".
Supply and marketing Daji said that in 2024, the company will make every effort to promote the three major business directions of commercial operation, trade logistics and commodity trade, focus on the Hainan Free Trade Port and the Guangdong-Hong Kong-Macao Greater Bay Area, closely follow the relevant development policies in key regions, continuously optimize the existing business model and actively expand new business, and make every effort to promote the company's business development.