Open a new pattern after ＂changing blood＂, and every brand 100 index ushered in a new starting point.

On June 9th, the China Enterprise Research Center of national business daily and Tsinghua University Institute of Economics and Management jointly established the CSI 100 Index of Brand Value of Listed Companies, which successfully recovered the 1000-point mark and ushered in a new starting point.

On June 13th, on the occasion of the "full moon" of every brand 100 index, the index ushered in the first sample stock adjustment after its launch. The significance of this adjustment lies not only in the iteration of "investment target", but more importantly, through this adjustment, it not only brings its own structural changes to the new investment vane of the Nikkei 100 Index, but also opens up a new pattern for the index.

Yang Jing cartography

Two major industries will dominate the trend.

The first change brought by the adjustment of constituent stocks to the 100-per-brand index is that the sum of the weights of the top ten heavyweights has reached 52.99%, which is 2 percentage points higher than that before the adjustment.

According to the latest list of constituent stocks released, a total of 10 companies have become new constituent stocks, including Longji Green Energy, Shanxi Fenjiu, Anta Sports, China Power Construction, China MCC, Sinotrans, Xincheng Holdings, China Merchants Shekou, Guangzhou Automobile Group and Xugong Machinery.

The increase of the sum of the top ten weights means that the weight of the index is further concentrated in the top ten companies, which means that the future performance of these 10 companies will play a more important role in the overall trend of the index.

Compared with other major indexes, the concentration of the top ten heavyweights in the 100 index of each brand is obviously higher. For example, the sum of the weights of the top ten heavyweights in the Shanghai Stock Exchange dividend index is 31.9%, and the sum of the weights of the top ten heavyweights in the CSI 100 index is 38.72%; The sum of the weights of the top ten heavyweights in the 200 index of state-owned enterprise reform is 30.61%; The sum of the weights of the top ten heavyweights in the CSI Local State-owned Enterprises 100 Index is 40.42%.

Specifically, as of June 16th, Tencent Holdings, a Hong Kong-listed company, was the largest heavyweight in the 100-index of each Nikkei brand, accounting for 14.87%. Tencent Holdings is also the company with the largest market value in the whole Hong Kong stock market. Kweichow Moutai, the largest A-share market capitalization stock, is the second largest heavyweight stock in the 100-index of each brand, accounting for 8.81%. Meituan -W, Alibaba -SW and China Ping An are the third to fifth largest heavyweights respectively. The sum of the weights of the top five heavyweights is as high as 38.93%.

Furthermore, in the future, the general trend of the 100-per-brand index will first look at the leading enterprises in the field of Internet platform economy represented by Tencent. Tencent, Meituan, Alibaba and JD.COM have a total weight of 29.13%. And what is the future trend of the economic sector of the Internet platform? The key point is to look at Tencent, after all, it is the largest company with a weight of nearly 15%.

After the stock price plummeted in the first three months, Tencent’s share price gradually bottomed out and rebounded. This process is still tortuous and slow, including short-term rebound factors stimulated by policies, as well as news of corporate repurchase and institutional holdings. Generally speaking, it may take a long time to return to the glory of previous years.

After the "double kill" of stock price and performance, in April, the environment in which the platform economy is located finally ushered in a turning point. A series of measures have released great benefits to the platform economy, and promoting the healthy development of the platform economy has been placed in an important position. The data shows that China’s digital economy ranks second in the world, accounting for nearly 40% of GDP.

After more than a year of industry standardization, it will become a general trend for the future platform economy to activate innovation vitality and adhere to both development and standardization. From the perspective of the capital market, the most difficult period of the industry may have passed. In the future, whether Tencent or Ali, or JD.COM or Meituan, there will be more room for their share prices to go up than down. This will play an important role in the future trend of the 100-brand index.

Second, look at the trend of the food and beverage sector represented by Kweichow Moutai and Wuliangye. In this adjustment of constituent stocks, Shanxi Fenjiu, as the representative of liquor stocks, was transferred to the 100-index constituent stocks of every brand. As a result, there are 11 companies in the food and beverage industry. Among them, besides Kweichow Moutai and Wuliangye, there are Shuanghui Development, Nongfu Spring, Tsingtao Brewery, Yanghe, Shanxi Fenjiu, Mengniu Dairy, LU ZHOU LAO JIAO CO.,LTD, China Resources Brewery and Yili.

From the perspective of industry distribution, Kweichow Moutai and Wuliangye are all "major consumption". According to the industry distribution data published by China Securities Index Company, the proportion of "major consumption" industry is as high as 18.78%, second only to "communication service" and "optional consumption". Tencent is classified as "communication service" industry, while Meituan, JD.COM, Ali and BYD are classified as "optional consumption".

It can be seen that in addition to Internet companies such as Tencent, the future performance of the food and beverage sector represented by Kweichow Moutai and Wuliangye is also particularly important for the 100-brand index.

Recently, Hu Xinwei (Huitianfu Consumer Industry Mixed Fund), a leading consumer and fund manager of Huitianfu, shared his latest views on investment in the consumer industry in the live broadcast. He said that with the gradual improvement of the epidemic, the entire consumer industry is expected to usher in a greater fundamental improvement. In the long run, the upgrading of consumption structure, the rise of national brands and service consumption are the main investment lines that can be focused on.

For liquor stocks, Hu Xinwei believes that, first of all, from a long-term perspective, liquor has a good business model, and the gross profit margin, net interest rate, return on net assets, ROS and other indicators in relevant company statements are good, even if it is a good business from a global perspective. A noteworthy phenomenon is that from April to June, the liquor industry showed a trend of marginal improvement month by month. For example, during the Dragon Boat Festival holiday, in fact, the sales volume of liquor in many areas can be tied with last year, and even achieved positive growth. With the improvement of epidemic prevention and control, this trend should continue. From the perspective of investment, liquor in the second half of the year is still worth looking forward to.

New energy industry has sprung up suddenly.

This time, after the adjustment of the constituent stocks of the brand 100 index, Longji Green Energy’s shortlist is particularly interesting. As a leading enterprise in the field of solar photovoltaic, the company has long been the darling of institutions in the capital market. At present, the total market value of Longji Green Energy A-shares is as high as 460.5 billion yuan, and it has become the eighth largest heavyweight stock after entering the Nikkei 100 Index, accounting for 2.72%.

In 2021, the revenue of Longji Green Energy increased by 48% year-on-year to 80.932 billion yuan, the net profit attributable to the mother increased by 6% year-on-year to 9.086 billion yuan, and the net profit deducted from the mother increased by 8% year-on-year to 8.826 billion yuan. In the first quarter of 2022, the company’s revenue increased by 74% from the previous quarter to 18.595 billion yuan. Since its listing in 2012, the compound growth rate of revenue has reached 53.52%. At present, the market share and brand quality rank first in the industry, and the leading position in the photovoltaic industry is stable.

Huatai Securities said that from the situation of winning the bid in the first quarter of this year, Longji Green Energy has obvious premium advantages compared with second-tier manufacturers, and also has certain premium advantages compared with first-tier manufacturers. The company has won the trust of many customers with its high-quality products and years of brand accumulation, and its brand advantages are prominent.

In addition, BYD, another new energy vehicle leader, has also become the tenth largest heavyweight, which is a great pity to make up for Contemporary Amperex Technology Co., Limited’s "absence" of the 100-Nikkei brand index.

Recently, BYD’s share price has continued to soar, and its market value once exceeded one trillion yuan, and it is also the focus company of every 100-brand index.

BYD’s outstanding performance is related to the expected series of heavy moves. For example, the company kept raising the repurchase price, and the upper limit of the repurchase price was directly raised to 400 yuan/share, which stimulated the stock price to rise sharply. In addition, the company actively deployed lithium mine resources and won six lithium mines in Africa.

In June, BYD announced the production and sales express in May. According to the data, the sales volume of new energy vehicles once again exceeded 100,000 vehicles, exceeding 100,000 vehicles for three consecutive months. In the first five months of 2022, the production and sales of BYD’s new energy vehicles were 513,100 and 507,300 respectively, up by 347.6% and 348.11% respectively.

A few days ago, Wang Chuanfu, chairman of BYD, said at the meeting that it is an established strategy for the company to increase R&D efforts, and it will maintain high-intensity R&D in the next few years, thus constantly bringing forth new ideas. The company will increase its efforts in expanding overseas markets in the future. At present, the company is under great pressure to explore overseas markets, but it has taken out some scarce resources to promote the global electric vehicle market. The first half of new energy vehicles is electrified and the second half is intelligent. In the field of intelligence, as in the field of electrification, the company will open up all core technologies and fully verify them.

Wang Chuanfu also said that the process of electrification is accelerating. At this time, it depends on who has more resources, a more complete supply chain and a greater product advantage, who can win a bigger market. Now it’s not the big fish eat small fish, but the fast fish eat the slow fish, and only in the fast process can we overtake.

In the future, under the background of "double carbon", both solar energy and new energy vehicles will inevitably have a long-term huge development space, and these two fields will bring important impetus to the 100-index of each Nikkei brand.

On May 13th, the 100-per-brand index was officially launched in the China Securities Index Company. On that day, the index dropped to 866.12 points, and in less than a month, the index regained the integer level of 1000 points on June 9th. Since then, although the index has fluctuated, it still maintains a strong pattern.

On June 13th, every time the Brand 100 Index went online, it ushered in the first adjustment of constituent stocks. This adjustment makes the weight of the index more concentrated, and the sum of the weights of the top ten heavyweights has increased to 53%, which means that the stock prices of these 10 leading companies will have a more important impact on the future trend of the 100-share index.

After a year of substantial adjustment, leading companies in platform economy, such as Tencent, Ali and Meituan, still play the role of "mainstay" in the constituent stocks of the Nikkei 100 Index. The weight of these companies has not decreased, but has increased. As the most difficult days of the industry gradually pass, once such companies resume growth and their share prices gradually pick up in the future, it will bring a direct boost to the Nikkei 100 Index.

The food and beverage industry, represented by liquor, has the second largest impact on the 100-index of each brand, second only to Internet companies. The adjustment of constituent stocks, Shanxi Fenjiu was transferred to the index, further increasing the weight in the index.

Longji Green Energy was transferred to the component stocks of the 100-per-brand index, and at the same time, it entered the top ten heavyweights with BYD, which also showed that the 100-per-brand index attached importance to the new energy field.

Internet platform economy, food and beverage, and new energy industry almost cover the three most dynamic and innovative fields in China’s economy. These three areas will have a decisive impact on the 100-index of each brand. With the huge growth space in these three fields, it is impossible for the "new" 100-point per-brand index to stop at the 1000-point integer level. Once a breakthrough is made, there will inevitably be an infinite space above the 1000-point level.

national business daily