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As one of the important institutional investors in A-shares, the holdings of public funds have always attracted much attention from the market.

As of July 19, all the second quarter reports of public funds in 2024 have been disclosed. The market size hit a new high, exceeding 30.71 trillion yuan, a month-on-month increase of 6.47%, with 314 new funds issued, raising a total of 347.004 billion yuan.

In terms of industries, public funds increased their holdings in the technology, precious metals and energy industries. In terms of individual stocks, the top three A-shares increased holdings were BYD, Xinyi Sheng and Zhaoyi Innovation; in terms of overseas heavyweight stocks increased holdings, the top three were Nvidia, Apple and Microsoft.

New Trends in Public Funds' Major Holdings

With the disclosure of the second quarter reports of public funds, the public funds' heavily-weighted stocks are also released.

Statistics show that at the end of the second quarter, public funds held a total of 2,664 A-share companies with a total market value of about 2,428.8 billion yuan, a decrease of about 504.2 billion yuan compared with the market value of 2,933 billion yuan at the end of the first quarter.

From the perspective of individual stocks, in the second quarter, a total of 142 A-share companies were heavily held by hundreds of funds. The top ten holdings of public funds are: Kweichow Moutai, CATL, Zijin Mining, Wuliangye, Midea Group, Tencent Holdings, China Merchants Bank, Mindray Medical, Luxshare Precision, and Yangtze Power.

In terms of the market value of fund holdings, 46 A-share companies were held by public funds with holdings exceeding 10 billion yuan in the second quarter. Only Kweichow Moutai and CATL had holdings with a market value exceeding 100 billion yuan in the second quarter.

Among them, 1,268 funds hold a total market value of Kweichow Moutai of approximately 119.7 billion yuan, and 1,469 funds hold a total market value of CATL of approximately 102 billion yuan.

From the perspective of industry distribution, the five industries with the highest total market value of holdings of heavily weighted stocks by public funds in the second quarter were electronics, food and beverages, pharmaceuticals and biology, power equipment, and non-ferrous metals, with a total market value of 1.2645 trillion yuan, accounting for more than half.

Among them, the four industries whose fund holdings increased by more than 10 billion yuan in the second quarter compared with the first quarter were electronics, communications, utilities, and banks. The four industries whose fund holdings decreased by more than 10 billion yuan in the second quarter compared with the first quarter were food and beverage, pharmaceuticals and biology, computers, and power equipment.

As for the future market, fund managers are generally optimistic about industries with long-term growth logic such as technological innovation, industrial upgrading, and domestic substitution. New energy, high-end manufacturing, information technology, and companies with export advantages are generally regarded as key investment directions.

When reviewing the product operations in the second quarter of 2024, Zhao Yi of Quanguo Fund emphasized the importance of increasing the concentration of the portfolio, especially in the new energy industry. He believes that as the overseas bases of some leading companies begin to supply, these overseas companies will enter a new growth cycle, and the growth of overseas market demand will bring new development opportunities for these companies.

Oriental Cable becomes the most popular stock in Zhejiang

Institutional shareholding is an important indicator to measure how well a listed company performs in the secondary market.

As of the first half of 2024, there are 30 A-share listed companies in Zhejiang with more than 50 institutional shareholders. Among them, the top of the list is still firmly guarded by "seed players" such as Hikvision, Oriental Cable, Bank of Ningbo, and Top Group.

In the list, the top 10 A-share listed companies in Zhejiang Province have more than 100 fund holdings. Among them, Hikvision has 309 holding institutions, ranking first.

Oriental Cable is worth paying attention to. Compared with the previous quarter, the number of institutions holding shares in Oriental Cable has increased significantly, jumping straight from the ninth place to the second place, leaving behind Bank of Ningbo, Sanhua Intelligent Control, Top Group and others.

Public information shows that Dongfang Cable is the only company in China that masters the design and independent production of marine umbilical cables. The company currently has three major product areas: land cables, submarine cables, and marine engineering, and is a core supplier of submarine cables and land cables in China.

As of April 25, the company had orders backlog of 7.137 billion yuan, including 2.580 billion yuan for submarine cables, 3.682 billion yuan for land cables, and 875 million yuan for marine engineering. 220 kV and above submarine cables and umbilical cables accounted for nearly 30% of the total orders backlog.

On July 9, Oriental Cable issued an announcement, confirming that it had newly won the bid for the submarine cable of China Power Construction East China Institute (about 80 million yuan), the submarine cable of British SSE Company (about 150 million yuan), and the submarine cable of InchCapeOffshore Company (about 1.8 billion yuan). The total winning bid amount for the submarine cables is about 2.03 billion yuan.

According to the European Wind Energy Association, Europe's offshore wind installations are expected to grow from 34GW in 2023 to 121GW in 2030, with a compound annual growth rate of 20%. With the acceleration of offshore wind development in Europe, Oriental Cable's overseas performance is expected to increase.

In the first quarter of 2024, Oriental Cable achieved operating income of 1.31 billion yuan, a decrease of 8.86% from the same period last year; and achieved net profit of 263 million yuan, an increase of 2.95% from the same period last year.

As of July 22, a total of 40 institutions have made forecasts for Oriental Cable's 2024 annual performance, with an average forecast net profit of 1.3434 billion yuan and an average forecast earnings per share of 1.9535 yuan. According to this forecast, the company's net profit in 2024 will increase by 34.33% compared with the previous year.

As of the first half of this year, a total of 181 major institutions held Oriental Cable, with a total holding of 86.3578 million shares, accounting for 12.56% of the circulating A shares. Among them, 95 new major institutions appeared in the list, holding 25.4718 million shares; 29 institutions disappeared from the list, originally holding 299 million shares.

From the perspective of industry distribution, as of the first half of 2024, the top five industries with the largest number of institutional shareholders were machinery and equipment, basic chemicals, automobiles, power equipment, and pharmaceuticals and biology.

In the field of mechanical equipment, Wuzhou Xinchun is worth paying attention to. The company's main business is the research and development, production and sales of bearings and accessories, auto parts, hardware, and lathe parts. The main products are bearing products, auto parts and thermal management system parts.

The company is a national high-tech enterprise, with a national enterprise technology center, a CNAS national certification laboratory, an academician expert workstation, a Zhejiang Provincial Key High-end Bearing Enterprise Research Institute and a Zhejiang Provincial Engineering R&D Center for Aviation Rolling Bearings. The company has a technical R&D team that has long been focused on bearing products and precision parts.

As of the first half of 2024, a total of 24 major institutions held Wuzhou Xinchun, with a total holding of 22.6246 million shares, accounting for 6.18% of the circulating A shares.

As of July 22, a total of 11 institutions have made forecasts for Wuzhou Xinchun's 2024 annual performance, with an average forecast net profit of 198.84 million yuan and an average forecast earnings per share of 0.5382 yuan. According to this forecast, the company's net profit in 2024 will increase by 43.90% compared with the previous year.