With two companies, Anada and Oxconn, taking the lead in disclosing their quarterly reports for 2019 on October 10, performance forecasts also entered a period of intensive reporting. According to the statistics of Tonghuashun, a reporter from Securities Daily found that 633 listed companies in Shanghai and Shenzhen Stock Exchanges had issued performance forecasts for the third quarter of 2019 as of October 11. Among them, there are 320 companies, accounting for more than 50% of the total.
In terms of net profit growth, 10 stocks, including Xinghui Precision (11069%), Distant Information (8090.24%), Tianshun Share (6827.95%), Similar Shares (6098.31%), Longxin Science and Technology (2409.77%), Royal Bank Share (2319.45%), Lianhua Science and Technology (1884.23%), Ningbo Fubang (1767.74%), Amway Share (1468.56%) and Guangzheng Group (1306.79%) are expected before 2019. Net profit grew more than 10 times year-on-year in the third quarter. In addition, 121 stocks, including Probiotics, Fuan, Microphone Holdings, Skyscraper and Wanji Technologies, are expected to double their net profit growth over the same period last year.
It is worth mentioning that from the past experience, the growth of performance has some support for the companys stock price, but the two are not fully related, and the trend of stock price also depends on a variety of factors. From the performance of individual stocks in the past financial statements period, the trend of most of the pre-added stocks is stronger than the overall trend of the market, but a small number of pre-added stocks continue to decline after the good performance was announced. This shows that there are also risks in the pre increased shares. Even if there is a substantial increase in performance, it does not mean that the share price will rise significantly.
The performance of the market just confirms this view. As can be seen, the first week after the festival, A shares ushered in a red door, with the Shanghai Stock Exchange Index rising by 2.36%. Of the 320 preferred stocks mentioned above, 215 outperformed the market in the first week, accounting for 67.2%. Among them, Tianshun Stock (46.47%), One Net One Creation (46.41%), Baoding Technology (39.1%) and Guangzheng Group (30.05%) all rose more than 30% in the first week. In addition, four stocks, including Huazhi Liquor, Chuanyin Holdings, Baoti and Xianle Health, fell by more than 10% a week, showing a pattern of differentiation.
In this regard, Guojin Securities believes that although some listed companies continue to have high performance in the third quarter report, some listed companies have disclosed the performance forecast of the third quarter report as early as July and August of this year, and the share price of some companies with high performance growth is likely to be overdrawn, so they are alert to the risk of over hype. Accordingly, it is suggested that investors should turn to mining individual stocks matching valuation and performance.
From the valuation point of view, statistics show that the latest overall P/E ratio of A shares is 17 times. Of the 320 preferred stocks mentioned above, 36 stocks have the latest dynamic P/E ratio lower than the latest overall P/E ratio of A shares. Among them, ST Tianye (5.1 times), Beijing Chengjian (6.59 times), Ningbo Dongli (7.0024 times), Chinese Enterprises (8.12 times), Qilian Mountain (8.3882 times), Zhejiang Merchants Zhongtuo (8.656 times) and Xinhua Medical (9.755 times) all have the latest dynamic P/E ratios below 10 times, which deserve investorsattention. From the point of market-to-net ratio, three stocks such as Beijing Urban Construction, Songzhi Stock and Merchants Port have all fallen below the market-to-net ratio.
Further statistics show that in the past 30 days, out of the 36 low-valuation preferred stocks mentioned above, 5 stocks such as Jidong Cement (3), Blue Flame Holdings (3), Shengnong Development (2), Changyuan Electric Power (2), and Zhongnan Construction (2) have all won two or more positive results, and the future trend is still worth looking forward to.
For the three-quarter forecast stock investment, industry insiders generally believe that some over-hyped high-priced stocks should be cautious, suggesting that appropriate attention should be paid to low valuation, high dividend varieties.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425