On March 13, the medium prefix plate collectively boiled. By the close, China Mobile Limited and China Satcom were up by 10%, China Telecom Corporation by more than 9%, China Rallway by more than 7%, China Petroleum & Chemical by more than 6%, China Unicom and China Railway Construction Corporation by more than 5%, CNOOC, China National Communications and Construction, China Construction and China Railway Industry all rose by more than 4%.

As for ETF, by the close, open win-win ETF was up more than 4%, win-win ETF and state-owned enterprise win-win ETF were all up more than 3%. Castrol central enterprise innovation ETF, central enterprise structural adjustment ETF, central enterprise reform ETF, central enterprise ETF and so on all rose.

It is worth noting that China Mobile Limited's total market capitalization successfully broke through the 2.1 trillion mark, further narrowing the gap with Guizhou Moutai, which ranks first in the total market capitalization of A shares. China Telecom Corporation, also a communications giant, also rose more than 9%, while China Unicom also recorded an increase of nearly 5.4%.

This round of three major operators of the rising agglomeration of multiple concepts in the body.

The first is that the valuation of central enterprises is reconstructed into the strongest main line in 23 years, and the three major operators are the core benchmarking of central enterprises. SASAC held a special meeting on the work of central enterprises to improve the quality of listed companies, and the core competitiveness of central state-owned enterprises was further enhanced. The three major operators benefit from the core of "medium prefix", "low valuation", "leader of communications plate" and "strongest benchmark for valuation reconstruction".

Second, on the evening of March 12, China Mobile Limited and China Telecom Corporation, two giants of communications operators, issued an announcement that the dividend payout rate is expected to increase gradually. Among them, China Mobile Limited's profit distributed in cash in 2023 increased to more than 70 percent of the company's shareholders' profits in that year, and China Telecom Corporation will gradually increase the annual cash distribution of profits to more than 70 percent of the company's shareholders' profits within three years after the A-share issue and listing.

Zhongyuan Securities recently pointed out that telecom operators, as the backbone of the digital economy, the representative of the national team in the era of artificial intelligence and the vanguard of computing network construction, are expected to fully benefit. With the development of 5G entering the post-cycle, operators' capital expenditure is gradually stable, the structure of capital expenditure may gradually appear, the cloud penetration of state-owned assets continues to increase, and cloud computing may bring new growth momentum. As the main force in the development of the digital economy, the performance growth rate of operators continues to improve, and the high dividend rate of telecom operators forms a solid support for the medium-term valuation level.

The revaluation of state-owned central enterprises has become one of the most concerned hotspots in the market recently. many institutions said that in terms of institutional and economic structural characteristics, the importance of state-owned enterprises to our national economy is self-evident. under the current background of high external environmental uncertainty and geographical tension, state-owned central enterprises are the ballast stone of the national economy. With the landing of the detailed rules for the revaluation of state-owned enterprises, the market is expected to have a relay market, which is conducive to the rise of the market valuation center in the long run.

The revaluation of state-owned enterprises has been concerned and recognized by the market, and the core is that the valuation of state-owned enterprises is generally on the low side.The data show that although the share prices of many constituent stocks have risen sharply recently, as of March 10, the PE of the CSI is only 9.82 times, and the PB is twice as high.

There are many reasons why the valuations of state-owned enterprises and central enterprises are generally undervalued. On the one hand, some state-owned enterprises and central enterprises focus on infrastructure, energy and other areas, and they are listed in the middle and later stages of enterprise development. Although the scale is large and the performance is good, it lacks growth. In addition, some state-owned enterprises do not fully communicate with the capital market, and pay less attention to the stock market value, which makes many investors still have some impressions about the operation and development of state-owned enterprises and central enterprises in the past.

However, the revaluation of state-owned enterprises has its long-term logic, and it should not be seen as a short-term themed investment opportunity. Investors should be cautious about individual stocks and pay more attention to risk when market sentiment is high.

Institutions generally believe that there are many catalytic factors during the year, and the low-valued central enterprise sector still has room to rise, which is expected to become the main line of the value plate.

Looking to the future, Cheng Jun, a win-win ETF fund manager for state-owned enterprises, said that the reform of central state-owned enterprises is undoubtedly one of the important main lines of the market in 2023. First of all, central state-owned enterprises, as the vanguard of the national economy, are expected to undertake more national projects and play an important role under the policy of stabilizing growth. Second, exploring the valuation system with Chinese characteristics has been put on the agenda of the CSRC, which is expected to reduce the equity financing costs of central state-owned enterprises and drive them to "add leverage" in the future. Finally, after the implementation of the relevant policies, corporate earnings and valuations may usher in Davis double-click.

Reviewing the historical data, Everbright Securities pointed out that during the revaluation of state-owned enterprises, the overall market of state-owned enterprises rose significantly, lasted for a relatively long time, and some bull stocks will be born.

In his latest research report, Huatai pointed out that since the three-year reform plan, state-owned enterprises have significantly improved their capital system, internal governance structure and operational efficiency. Since November last year, with the construction of a valuation system with Chinese characteristics, the proposal of a "one profit and five rates" assessment system, and the timely establishment of new state-owned capital investment and operation companies, the reform of state-owned enterprises is expected to go further and usher in a new round of allocation opportunities.

Huo Huaming, manager of Guangfa Fund, believes that as more and more investors pay attention to state-owned central enterprises, listed companies with good fundamentals of state-owned central enterprises will be favored by funds, and do not rule out that the value style can outperform the market within a period of time. The undervaluation of central enterprises may become the main line in the value plate.

However, there are also institutional tips, even if the medium-and long-term optimistic about the "medium-and long-term" plate investment value, but there is also a certain risk of adjustment in the short term, blindly chasing high is not desirable.