Coal led the rise in the two cities, and many stocks are expected to continue to pay dividends with a high share.
The Shanghai stock index fell back after surging in the morning, and the Shanghai Stock Exchange 50 once rose by more than 1% in intraday trading, and major financial sectors such as insurance and banks pulled up. Food, dairy, liquor, retail and other major consumer sectors rose across the board, semiconductor chip stocks fell, Telink fell slightly by more than 10%, and Cambrian fell by more than 7%.
Nearly a year later, the central bank announced a rate cut
According to the website of the central bank, in order to improve the ability of financial institutions to use foreign exchange funds, the People's Bank of my country has decided to lower the foreign exchange deposit reserve ratio of financial institutions by 2 percentage points from September 15, 2023, that is, the foreign exchange deposit reserve ratio is changed from the current 6. % down to 4%.
After the release of the news of lowering the reserve requirement ratio for foreign exchange deposits for the first time in nearly a year, the exchange rate of the offshore RMB against the U.S. dollar rose straight from the 7.28 mark and broke through the 7.24 mark one after another. The intraday rebound exceeded 400 points, and then the increase narrowed. As of press time, the offshore RMB/USD exchange rate was at 7.26. Judging from its moving average, the offshore RMB/USD has risen for 2 consecutive days.
Lowering the reserve requirement ratio for foreign exchange deposits is equivalent to releasing more US dollar liquidity supply to the market, thereby supporting the renminbi and helping the exchange rate of the renminbi against the US dollar rise. Industry experts and market participants believe that the recent fluctuations in the RMB exchange rate are mainly affected by multiple internal and external factors, but exchange rate expectations and cross-border capital flows remain relatively stable. At that time, regardless of external factors or internal factors, the RMB exchange rate will not depreciate unilaterally, but will maintain two-way fluctuations.
N Jindi surged more than 138% in intraday trading, triggering a temporary stop
N Jindi, a new stock on the main board of the Shanghai Stock Exchange, was listed today with an issue price of 21.77 yuan per share and a price-earnings ratio of 41.68 times. The stock continued to rise in early trading, and suddenly rose 138.26% after 10:30, triggering a temporary stop. At the close, N Jindi reported 54 yuan per share, up 148.05%.
The main business of N Jindi is the research and development, production and sales of precision mechanical parts, including bearing cages and automotive precision parts. According to the prospectus, N Jindi raised a total of 1.192 billion yuan in this issuance, which is planned to be used for high-end equipment precision bearing retainer intelligent manufacturing and upgrading projects, marketing network construction projects, high-precision bearing retainer technology research and development center projects, high-precision automotive high-precision Intelligent production and construction projects of key components, technology research center projects for automotive precision stamping parts, and supplementary working capital projects.
According to the analysis of Huajin Securities Research Report, relying on the advantages of industrial clusters in Liaocheng, Shandong, the company has been deeply involved in the field of bearing cages for many years, and has established long-term cooperative relationships with eight major bearing companies in the world, occupying a leading position in the wind power field. The company actively deploys the drive system of new energy vehicles, and has entered the supply chain of new energy vehicle manufacturers such as Weilai. The company has received shareholding support from downstream customers such as Xinqianglian, which is expected to benefit the stability of the company's wind power-related business. A comparison of listed companies in the same industry shows that the company's revenue scale is lower than the average of comparable companies, but its gross profit margin is in the mid-to-high range of its peers.
Coal concept stocks lead the two cities
The price of thermal coal has continued to rebound recently. The coal sector has risen and led the gains in the two cities. Shaanxi Heimao and Yunmei Power have daily limit, Huayang, Yankuang Power, Lu'an Environmental Energy, Pingdingshan Coal and other stocks have followed suit.
Coal prices continue to be low, and the domestic supply reduction trend remains unchanged. Raw coal production in July increased by only 0.1% year-on-year. Recently, mine accidents in production areas have frequently occurred and safety supervision has been tightened. Previously, it was the peak season for coal consumption by power plants, and safety supervision under the policy of ensuring supply was less effective. The relaxation had little impact on output; at that time, the peak of the cooling climate had passed, and the inspection was strengthened again, which may lead to a significant contraction in output. It is estimated that the output of raw coal in August may complete zero increase. The recent rise in international coal prices has weakened the advantages of imported coal, and subsequent imports are expected to decrease.
Under the guarantee of rigid demand for electricity and coal, it is expected to remain high, and non-electricity demand has already started, and it is expected to accelerate the release after entering the peak season in September. To sum it up, long-term shipment inversions have led to a sharp reduction in coal stocks in ports. The inventory at Qinhuangdao Port has dropped to below 5 million tons. The support of tightening supply has existed for a long time. It is estimated that after September, driven by the non-peak season of electricity, coal prices will will rise slightly.
Coal companies show patience in the first half of the year, and multiple stocks continue to pay high dividends
In the context of the decline in coal prices in the first half of the year, companies in the coal sector have shown strong performance patience by using volume to increase prices and control costs. When the market fluctuates greatly, the attributes of strong performance, patience and high dividends of coal enterprises are rare, and their valuations are generally low.
According to the statistics of Securities Times·Databao, more than half of the coal stocks made profits in the first half of the year. my country Shenhua, China Coal Power, Shaanxi Coal Industry, and Yankuang Power all had net profits attributable to their mothers in the first half of the year that exceeded 10 billion yuan.
In terms of performance growth, in addition to Anyuan Coal Industry turning losses into profits in the first half of the year, 9 stocks such as Yunmei Power, Yongtai Power, Jizhong Power, and Hengyuan Coal and Electricity completed a year-on-year increase in net profit attributable to their parents in the first half of the year.
The coal industry has always been known for its high dividends and high dividend rates. In the context of high profitability in the industry, it seems to be a new normal for "coal bosses" to pay generous dividends and actively repay shareholders.
In early July, Yankuang Power issued a profit distribution policy announcement, planning to determine the total cash dividends distributed in each fiscal year from 2023 to 2025, which should account for about 60% of the company's net profit after deducting statutory reserves for the year, and the cash dividend per share is not low at 0.5 yuan. Cash dividend share increased from 50% to 60%.
In the first half of the year, Shaanxi Coal Industry achieved operating income of 90.66 billion yuan, an increase of 8.13% year-on-year, and a net profit of 11.58 billion yuan attributable to the parent company, a year-on-year decrease of 54.71%. By June 30, 2023, the company's monetary funds will reach 57.93 billion yuan, interest-bearing liabilities will only be 5.86 billion yuan, and net cash will reach 52.07 billion yuan, an increase of 11.93 billion yuan compared with the end of 2022. The cash is sufficient. According to the company's dividend plan, the dividend share from 2022 to 2024 will not be less than 60%, and it is expected to continue to pay high dividends in the future.
In the past three years, there are 22 coal stocks that have implemented cash dividends in succession. According to the average annual cash dividend share, the average dividend share of Jizhong Power is the highest, reaching 129.4%. The average dividend share of Shenhua, Panjiang, Yankuang Power, Shaanxi Coal, Shanxi Coking Coal, and Pingdingshan Coal in the past three years has exceeded 50%.