Frost & Sullivan insights
7month22day, the first batch25The shares of listed companies on the Sci-Tech Innovation Board that were subject to a three-year lock-up period began to be traded on the market. Currently, no company has disclosed any plans for reducing the holdings of restricted shares. Overall, market sentiment has not been significantly affected by the lifting of the restrictions.25The company's stock price has performed steadily,10The price rose,15Only down, with an average slight decline0.51%.
Frost & SullivanFrost & Sullivan,Mr. Wang Chenhui, Managing Partner and Executive Vice President of Frost & Sullivan Greater China, was interviewed by Securities Daily.25Market dynamics on the first trading day of share lifting restrictions for companies listed on the Sci-Tech Innovation Board before their initial public offering2022Second half of the year outlook.
Securities Daily
7month22day, the first batch25The shares of listed companies on the STAR Market that are subject to a three-year lock-up period have begun to be traded on the market. Currently, no company has disclosed any plans to reduce their restricted shares. On the contrary, there have been previous instances.11Company shareholders have successively stated that they will not reduce their holdings of restricted shares or extend the lock-up period of restricted shares.
Overall, market sentiment has not been significantly affected by the lifting of restrictions.25The company's stock price has performed steadily,10The price rose,15Only down, with an average slight decline0.51%.
"The first batch to go public25The market performance of listed companies basically met market expectations. "Wei Fengchun, chief economist at CGB Fund, told the Securities Daily that overall, the market performance of companies on the Sci-tech Innovation Board is affected by fundamentals and trading levels. Fundamentals include company performance, business direction, governance structure, etc. For companies that align with industry development directions, have stable performance, and stable corporate governance, investors' confidence in long-term holding increases, resulting in relatively smaller fluctuations. From a trading perspective, it is mainly affected by investor sentiment, which was previously influenced by the first batch..."25The lifting of the lock-up period for listed companies has been anticipated, and sentiment has been fully released.
25enterprise No firm has announced a reduction in holdings
The reporter noted that as of7month22day, the first batch25Among the companies listed on the Sci-Tech Innovation Board, none have disclosed their plans to reduce their restricted shares. According to the reduction rules, major shareholders, directors, supervisors, and senior management personnel who reduce their shares through centralized competitive bidding transactions should do so in advance.15Pre-disclosure was made on a trading day, but currently no company has issued a reduction in holdings announcement.
"This indicates that the company's controlling shareholders, actual controllers, major shareholders, etc., are very confident in the industry outlook and the company's future development, and are optimistic about the company's long-term stable development." Wang Chenhui, managing partner and executive vice president of Frost & Sullivan Greater China, told a reporter from Securities Daily that the establishment of shareholder confidence is based on the company's past good development, from the past3Looking at the development in [specific year], many enterprises achieved double-digit performance growth. Despite the impact of the pandemic, these enterprises still demonstrated solid business performance, reflecting the resilience of enterprise development and the high growth potential of the Sci-Tech Innovation Board.
"The fact that no company has disclosed a reduction in holdings indicates a high probability of long-term shareholding by shareholders," Wei Fengchun said. These companies have a relatively large number of technology personnel holding shares. Against the backdrop of the digital economy, new energy, new models, and new commercial consumption upgrades, the development of these companies aligns with China's policy expectations, industrial expectations, and consumer demand expectations, offering good prospects for long-term investment.
Gui Haoming, chief market expert at Shenwan Hongyuan, analyzed to the Securities Daily reporter that currently25Among the listed companies on the STAR Market, none have disclosed their share reduction plans, which is due to multiple reasons. On one hand, some shareholders may believe that the current period is not the optimal time for reducing holdings; not reducing now does not mean they will not in the future. On the other hand, there are various channels for reducing shares of listed companies, such as block trades, which require a process of coordination and arrangement, and may not have yet reached a point where it is inevitable.
"Reduction of holdings is an important means for shareholders to exit their assets. For investors, they should not expect shareholders not to reduce their holdings, and at the same time, shareholders should also reduce their holdings rationally, rather than through liquidation." Gui Haoming said.
In fact, many companies on the Sci-tech Innovation Board have given the market a 'peace of mind' pill before their lifting of restrictions.11Company shareholders have announced that they will either not reduce their holdings of restricted shares or extend the lock-up period of these shares, expressing long-term confidence in the company's development prospects.
The reporter sorted out and found,11Among the companies, there are Huaxingyuan Chuang, Tianyi Shangjia, Jiayuan Technology, etc.6Shareholders have promised not to reduce their holdings of restricted shares. China Telecom, Rongbai Technology, etc.4Shareholders of the enterprise stated that they are extending the lock-up period for restricted shares. For example, the controlling shareholder of China Railway Signal & Communication Group Co., Ltd. stated that as of2022year7month22Voluntary extension of lock-up period starting from the expiration date of daily limit order6Month to2023year1month21day.
Second half of the year for the Sci-tech Innovation Board The performance growth trend will continue
On the surface, the 'hesitant to sell' restricted shares held by shareholders of Sci-Tech Innovation Board companies reflect their optimism about their own company's stock price. Fundamentally, the foundation supporting the stock price of listed companies is good performance. From this perspective, the Sci-Tech Innovation Board, which has high growth characteristics, is a resource pool that gathers long-term high-quality value investment targets.
The reporter sorted out and found that as of7month22Japanese reporters have released their articles, and so far47Companies listed on the Sci-Tech Innovation Board disclosed their semi-annual performance data through forms such as semi-annual reports, performance bulletins, and performance forecasts, showing overall good performance. Specifically:47In the company,37The company's performance is expected to increase,3The company turned losses into profits, accounting for a total85%Among them,13The company expects the growth rate of net profit attributable to the parent company to exceed100%, accounting for more than 30%.
Gui Haoming stated that, based on the situation in the past two years, the profit growth of companies listed on the Sci-Tech Innovation Board has generally outpaced other sectors, and it is expected to continue growing in the first half of the year. However, due to uneven market development, there are significant disparities within the Sci-Tech Innovation Board, including both companies with excellent performance and those experiencing local losses. Historically, the first three years have been the golden period for the development of companies listed on the Sci-Tech Innovation Board, during which the development speed would significantly accelerate. Overall, the listed companies on the Sci-Tech Innovation Board are relatively small and are in the growth stage, so the performance growth trend will continue into the second half of the year.
"The Sci-tech Innovation Board (STAR Market) has high growth characteristics. Investment in the STAR Market should not be too short-sighted, but rather recognize its long-term investment value," said Wei Fengchun. In the STAR Market, investments related to mid- to high-end manufacturing account for a relatively high proportion and their growth rate is also increasing, which has promoted the stability of the industry chain and industrial demand on the STAR Market. Against this backdrop, growth stocks that have withstood market tests, especially those with a high content of 'hard technology,' as well as companies with a well-implemented governance structure that integrates business models and technological growth, can be held for the long term.
Wang Chenhui stated that in the second half of the year, more technology innovation enterprises from different fields will list on the Sci-tech Innovation Board. Through their own technological innovation and integrated development with the capital market, these enterprises will accelerate their growth, thereby leading the development of various technology innovation fields and boosting the overall economic growth recovery and structural optimization of our country. In terms of industries, key national strategic sectors such as new energy, electronics manufacturing, and biomedicine, which possess leading-edge technology innovation capabilities, will be areas with good investment opportunities.
*This article is reprinted from 'Securities Daily', with reporters Xing Meng and Wu Xiaolu.,Original title: 'The First Batch25The first day of share lifting restrictions for companies listed on the Sci-tech Innovation Board before their initial public offering: The Sci-tech Innovation Board is operating smoothly "The market is optimistic about the long-term investment potential of enterprises".
