National Team" Strikes! Nearly $20B Targets Two Beijing Firms!

As a member of the "national team" funds, the social security fund has been actively investing recently.

Following its first participation as a strategic investor in the private placement of China National Nuclear Corporation in July, on September 17th, it once again fully subscribed to the additional shares of Guotou Electric Power in cash, involving a total of approximately 19 billion yuan in funds, effectively conveying a positive signal to the market.

Moreover, since the third quarter, the social security fund has publicly increased its holdings in 10 companies.

On the evening of September 17th, Guotou Electric Power announced that the company signed a "Conditional Share Subscription Agreement" with the National Council for Social Security Fund (referred to as "Social Security Fund Council"), and the Social Security Fund Council intends to fully subscribe to the company's newly issued A-shares in cash, with a total subscription of 550 million shares at a price of 12.72 yuan per share.

Guotou Electric Power plans to raise no more than 7 billion yuan through this issuance, and the funds raised, after deducting relevant issuance costs, will be entirely used for the construction of clean energy projects, including Mengdi Gully Hydropower Project and Kala Hydropower Project.

Advertisement

After the completion of this issuance, the Social Security Fund Council will hold 550 million shares of the company, accounting for a 6.88% stake.

The company stated that the Social Security Fund Council's participation in this issuance as a strategic investor can play a good market demonstration and leading role, which is beneficial to fully exert the "ballast stone" function of long-term capital, effectively convey positive signals, enhance investor confidence, and optimize the allocation of resources in the capital market.

It is also worth mentioning that this is not the first time the Social Security Fund Council has participated in a listed company's private placement as a strategic entity.

On July 11th this year, China National Nuclear Corporation announced that it would issue A-shares to specific objects to raise no more than 14 billion yuan, and the funds raised will be entirely used for the construction of nuclear power projects in Liaoning Xudabao, Fujian Zhangzhou, and Jiangsu Tianwan.

The newly issued shares of China National Nuclear Corporation will be fully subscribed by the Social Security Fund Council and China National Nuclear Corporation, with the Social Security Fund Council subscribing to 12 billion yuan and China National Nuclear Corporation subscribing to 2 billion yuan.

This is also the first time the Social Security Fund Council has participated in a listed company's private placement as a strategic investor.

Zhang Hongjun, Secretary of the Board of China National Nuclear Corporation, stated that this private placement will provide strong financial support for nuclear power projects.

In addition, the introduction of the Social Security Fund is also expected to actively leverage the advantages of long-term capital and market-leading role, and to drive more long-term capital and patient capital to help ensure national energy security.

At present, the national level has been continuously promoting the entry of long-term capital into the market, continuously improving the inherent stability of the capital market.

In July this year, the "Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reform and Promoting Chinese-style Modernization" clearly mentioned supporting long-term capital to enter the market and promoting the healthy and stable development of the capital market.

As a typical long-term capital and patient capital, the Social Security Fund Council has recently been actively investing, which is an actual action in response to the national call.

Its strategic shareholding not only brings financial support to listed companies but also reflects the important role of long-term capital in supporting the development of clean energy, providing a solid foundation for the smooth progress of future clean energy projects.

The recently concluded mid-term report of listed companies shows that as a typical representative of long-term capital, the Social Security Fund held a total of 612 A-shares at the end of the second quarter.

In terms of industry attributes, banks are the heaviest positions, with a total holding scale of 199.718 billion yuan for 8 heavy stocks.

In addition, the Social Security Fund's heavy stock scale also exceeded 10 billion yuan in eight industries, including non-bank finance, transportation, basic chemical industry, non-ferrous metals, machinery equipment, pharmaceutical biology, automobiles, and electronics.

From the perspective of individual stocks, 285 companies were newly heavily held or continued to be increased by the Social Security Fund at the end of the second quarter, and some of them have performed in the current volatile market.

For example, at the end of the second quarter, the National Social Security Fund's 104th portfolio held 19.1268 million shares, ranking as the eighth largest shareholder of the company, an increase of 2.8499 million shares compared to the end of the first quarter.

Since the third quarter, the company's stock price has also shown a trend of fluctuating upward, and has accumulated an increase of more than 30% so far.

In addition to the heavy holding support of institutional funds, the upward trend of the company's stock price is also directly related to the counter-trend growth of performance.

In the first half of this year, JAC Motors achieved a net profit attributable to the parent company of 301 million yuan, a year-on-year increase of 93.84%.

Compared with the industry, the company's performance has improved significantly.

During the reporting period, JAC Motors continued to optimize its product structure, with a sales increase of about 10% in the commercial vehicle field in the first half of the year, leading the industry by nearly 5 percentage points.

The main products such as light and medium-duty trucks, pick-up trucks, multi-functional commercial vehicles continued to grow, and the pure electric passenger car business achieved double-digit positive growth.

At the same time, the company's gross margin was 11.3%, also exceeding the industry average, and the company's profitability has been steadily increasing.

The anti-cancer and cancer treatment company, Xinlitai, also received high recognition from the Social Security Fund during the second quarter.

At the end of the second quarter, the Social Security Fund's 114th portfolio held 10.1825 million shares of the company, an increase of 1.4466 million shares compared to the end of the first quarter.

In the secondary market, the company's stock price has accumulated an upward trend of more than 20% since July.

Although the semi-annual report was just disclosed at the end of August, the third quarter is now nearing its end.

Combined with the company's successive repurchase announcements, some of the Social Security Fund's heavy stocks in the third quarter have been "released" in advance.

Qianjin Pharmaceutical, Sunway Communications, Jin Jiang Hotels, Tonghua Dongbao, and other 10 companies have seen an increase in the Social Security Fund's latest holdings compared to the end of the second quarter, but there are also 5 companies such as Goldwind Technology, Wujin Stainless Steel, and Yingqu Technology that have been reduced by the Social Security Fund on different scales since the third quarter.

At present, the Social Security Fund's increase in holdings of Tonghua Dongbao is relatively the highest.

After the Social Security Fund's 406th portfolio became the seventh largest shareholder of the company with a new position at the end of the second quarter, the latest data on July 23 showed that the Social Security Fund's 406th portfolio increased its holdings by 5.81 million shares, and its ranking also further rose to the sixth largest shareholder.

Jin Jiang Hotels updated the shareholder holding data on August 9, and the Social Security Fund's 110th portfolio became the tenth largest shareholder of the company with a new position, holding 5.7898 million shares.

Sunway Communications was also increased by the Social Security Fund by a million shares, and the latest data on August 21 showed that the Social Security Fund's 103rd portfolio held 34 million shares of the company, an increase of 1 million shares compared to the end of the second quarter.

However, the companies that have been further increased by the Social Security Fund since the third quarter have not yet walked out of the market's independent trend, and whether the future stock price can take advantage of this to "sail with the wind", we will continue to pay attention.