Finance Association, Feb. 12 (Editor Liu Yue Ruoyu) In the last trading week before the holiday, five listed companies, including Co-Creation Data, Dream Lily, Shanying International, Shunxin Agriculture and 3D Co., Ltd., announced plans to increase their holdings up to 100 million yuan or more. According to incomplete statistics from the Financial Federation, 13 listed companies, including Tongfang Co., Ltd., Shengxiang Biotech, Yunnan Energy Investment, Jinfu Technology, Aerospace Development, Tongwei Co., Ltd., Baofeng Energy, Dongcai Technology, iKodi, Rongsheng Petrochemical, Hikvision, Kibing Group, and Tuopu Group, have disclosed an upper limit of 100 million yuan or more. See the chart below for details:

Among them, the controlling shareholders of Tongwei Co., Ltd., a leading silicon and battery company, and Rongsheng Petrochemical, a leading refining and chemical company, all plan to increase their holdings by up to 2 billion yuan. Among them, Tongwei Co., Ltd. announced on January 31 that the controlling shareholder Tongwei Group plans to increase its shares by 1 billion yuan to 2 billion yuan. Prior to this increase in holdings, Tongwei Group held about 1,974 billion unrestricted tradable shares of Tongwei Co., Ltd., accounting for 43.85% of the company's total share capital of about 4.502 billion shares. For the purpose of increasing its holdings, Tongwei Group plans to implement this plan to increase its holdings based on firm confidence in the company's development prospects and recognition of the company's long-term investment value.

Tongwei Co., Ltd. became one of the most profitable listed companies in the photovoltaic sector in the previous two years, with leading cost control and market advantages in the upward polysilicon price cycle. In 2022, the company's net profit was 25.726 billion yuan. However, as new polysilicon production capacity was released one after another, leading to a year-on-year decline in product prices, the company's net profit for the first three quarters of last year was about 16.302 billion yuan, a year-on-year decrease of 24.98%.

Up to now, Tongwei Co., Ltd. has not released a full-year results forecast for 2023. Judging from the performance forecasts already disclosed by leading companies in the photovoltaic sector, silicon chip leader TCL Zhonghuan expects net profit of 4.2 billion yuan to 4.8 billion yuan in 2023, a year-on-year decrease of 29%-38%. Combined with the three quarterly report data, the company's loss in Q4 is expected to reach 1,388 billion yuan to 1,988 billion yuan. Performance forecasts disclosed by leading companies such as Jinko Energy and Trina Solar also showed a risk of a month-on-month decline in Q4 net profit.

Another PV integration leader, Longji Green Energy, which has yet to announce its 2023 performance forecast, has also stepped up to protect the market. The company announced on February 5 that the chairman proposed to use 300 million yuan to 600 million yuan to repurchase shares. The shares repurchased this time will be used for employee stock ownership plans or equity incentives. Judging from the performance of the secondary market, the biggest cumulative stock price declines of Tongwei Co., Ltd. and Longji Green Energy since their 2022 highs have reached 64.41% and 73.76%, respectively.

Rongsheng Petrochemical announced on January 18 that Rongsheng Holdings, the controlling shareholder of the company, plans to increase the company's shares by no less than 1 billion yuan and no more than 2 billion yuan. There is no price range for this increase in holdings. According to a research report released by the Guoxin Securities Chemical Team on January 21, Rongsheng Holding Group increased its shares in Rongsheng Petrochemical, demonstrating confidence in the long-term development of listed companies. Crude oil prices fluctuated and recovered in Q4 in 2023, and the profitability of the company's main products was stable. The company deepened cooperation with Saudi Aramco, ensured a stable supply of crude oil and deepened its influence overseas. Rongsheng Petrochemical relies on the world's largest single-unit refining and chemical integration project with an annual output of 40 million tons and continuously lays out the field of new downstream materials. With the release of the company's production capacity in new energy fields such as EVA, α-olefin, and POE, and high-end materials, it will continue to drive the company's growth and give the company a second growth curve.

Judging from the performance of the secondary market, Rongsheng Petrochemical's stock price has dropped by about 70% since its all-time high in 2021. According to the performance forecast released by the company on January 30, it is expected to be 1 billion yuan to 1.2 billion yuan in 2023, a year-on-year decrease of 64%-70%. Regarding the decline in net profit, Rongsheng Petrochemical explained that the two factors of weak market demand and geopolitical spillover effects after the epidemic caused the slow recovery of benefits in the petrochemical industry, but there are obvious signs of improvement in its performance. According to estimates, in the fourth quarter of last year, Rongsheng Petrochemical expected net profit of 890 million to 1.09 billion yuan, turning a year-on-year loss into a profit.

Security leader Hikvision, with a total market capitalization of over 300 billion yuan, announced on January 16 that the controlling shareholder, CLP Hikvision, joined forces to invest in the company to increase its shares by 300 million yuan to 600 million yuan. Chen Haijin of Debon Securities and others reported on January 30 that Hikvision's net profit in 2023 was 14.1 billion yuan, an increase of 9.96% over the same period last year. The company previously estimated a net profit range of $135-14 billion for 23 years, which actually exceeded the lead. The company has established an open AI platform since '18. The “Guanlan” model is based on electricity, energy, industrial scenarios, etc., and is widely used in dangerous scenario warning, retail account management, and industrial manufacturing inspection. The big model continues to empower the company's business with “pragmatism,” and is expected to double the company's valuation and performance in 24 years, Davis. The company is expected to achieve revenue of 998/1129 billion yuan and net profit of 172/20.2 billion yuan in 24/25, corresponding to the current PE valuation 17/15 times. Considering the company as a security leader, the current valuation is at a historically low level, and we continue to recommend it.

In terms of secondary market performance, Hikvision's stock price has dropped since its record high in 2021.

Tongfang Co., Ltd., a computing power concept stock with a total market capitalization of over 20 billion yuan, announced on February 4 that China Nuclear Group, the indirect controlling shareholder of the company, and its co-actors plan to increase their holdings of the company within the next 12 months, with an increase of no more than RMB 500 million. Tongfang Co., Ltd. is a strategic partner in the Huawei Kunpeng computer industry ecosystem. The biggest cumulative increase in stock prices from the beginning of last year to May was nearly 150%, but then it went all the way down. The biggest cumulative decline in stock prices since May 2023 has reached 54%.

In addition, since the beginning of the year, leading companies have also disclosed progress or implementation announcements to increase their holdings. As Muyuan Co., Ltd. announced on January 19, that some directors, supervisors and core personnel have increased their holdings by a cumulative total of 1,199 billion yuan. The controlling shareholder Muyuan Group and Qin Muyuan, the son of the actual controller, have increased their holdings by a total of 1.2 million yuan; Sinopec announced on January 19 that the controlling shareholder Sinopec Group has increased its holdings by about 885 million yuan; China Mobile announced on January 2, 2022 to December 29, 2023, that the actual controller China Mobile Group has increased their holdings by 3 billion yuan.