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What do anti-fall slow-growing stocks look like?

China General Nuclear Power Group hits new historical high

July 24,China General Nuclear PowerWith a surge of 5.04%, the stock price hit a new historical high. The market value of A shares exceeded 200 billion yuan for the first time. The cumulative increase since the beginning of this year has reached 70.57%, far outperforming the Shanghai Composite Index during the same period.

In the first two years after listing,China General Nuclear PowerThe stock price trend was not satisfactory, and it hit a low point at the end of July 2021. Starting from 2023, the company's stock price gradually stabilized and rebounded, showing a slow bull trend.A deeper look into the reasons behind the rise in CGN's share price may reveal its unique position in the industry and high dividends with steady growth.

China General Nuclear PowerIt is one of the few nuclear power companies in the A-share market. It was listed on the Shenzhen Stock Exchange in 2019 and has been listed for nearly 5 years. By the end of 2023, the total grid-connected power of nuclear power plants managed by the company was 214.146 billion kWh, accounting for 52.65% of the grid-connected power of nuclear power units nationwide. In the past few years after listing, the company's net profit growth rate was not high, generally maintained between 1% and 10%. However, the company's cash flow is very abundant. The net cash flow from operating activities from 2019 to 2023 was more than 30 billion yuan, which is close to 3 times the company's net profit.

As China Merchants Securities mentioned in its research report, CGN is a rare pure nuclear power operator with a solid leading position in the industry. The company is also the only nuclear power generation platform under CGN Group. The group covers the upstream and downstream of the nuclear power industry chain, with obvious synergy effects. In recent years, the company's debt ratio has continued to decline, currently falling to around 60%; at the same time, the operating cash flow is sufficient, which can provide good support for the addition of new units.

As one of the "leaders" of central enterprises,China General Nuclear PowerAfter listing, the company actively gave back to investors. According to the Securities Times Databao statistics, since its listing, the company has paid out a total of more than 21 billion yuan in cash dividends. In the past five years, it has used more than 40% of its net profit to implement cash dividends.The annual dividend yield exceeds 2%.

Scarce slow bull stocks are released

Six obvious characteristics

Recently, the overall trend of the A-share market has been sluggish. The Shanghai Composite Index fell below the 2,900-point mark during trading today, and the cumulative increase this year has turned from positive to negative.

As of the close of July 24, among the core indices of the A-share market, the Beijing Composite 50, CSI 1000, Science and Technology Innovation 50, ChiNext Index, and Shenzhen Component Index have all seen a year-to-date decline of more than 10%. Only a few indices such as the Dividend Index and SSE 50 have seen a positive cumulative increase this year.

From an industry perspective,Only five industries have recorded increases this year, namely banking, utilities, petroleum and petrochemicals, transportation, and coal.21 industries have fallen by more than 10% this year, with comprehensive, computer, social service, media, and light manufacturing indexes ranking in the top five. Against this backdrop, stocks that can still rise against the market trend and hit record highs are rare.

Databao selects slow bull stocks whose share prices have risen against the market trend based on stocks that have been listed for more than two years. The specific conditions are as follows:

1. As of the close of July 24, the highest intraday price this year hit a record high.

2. The latest closing price has retreated less than 10% from the historical high.

3. The number of daily limit ups and daily limit downs has been 0 so far this year, and the average daily fluctuation is less than 5%.

According to the statistics of Databao, a total of 25 stocks were shortlisted. These stocks have significant characteristics in terms of industry distribution, market value range, valuation level, dividend, company attributes, and institutional holdings.

1.Industry:The above 25 stocks are mainly distributed in 6 industries, namely public utilities, transportation, banking, environmental protection, coal, and communications. Among them, the public utilities industry has the largest number of stocks, reaching 9.

2.Market value：These stocks generally have the characteristics of large-cap stocks; as of now, the average A-share market value has reached 300 billion yuan, and more than 70% of the A-share market value exceeds 50 billion yuan.

3.Valuation: The overall P/E ratio is low, the median rolling P/E ratio is 14.56 times, and the rolling P/E ratio of 7 stocks is less than 10 times.

4.Cash dividend: In the past 12 months, these stocks have all implemented dividends, with an average dividend yield of 3.84%, and 7 of them have a dividend yield of more than 5%.

5.Company attributes: More than 90% of the stocks belong to state-owned enterprises, of which 13 are central enterprises, accounting for more than half.

6.Institutional holdings: There is a large number of holdings. At the end of the first quarter of this year, the average proportion of these stocks held by institutions in the outstanding shares reached 75.32%.

4 10x Super Bull Stocks Emerge

Looking at a longer time period, some of these slow bull stocks have grown into super bull stocks.

According to Databao statistics, as of the close of July 24, the cumulative increase of the four stocks since their listing (excluding the first day) exceeded 10 times, namelySDIC Power, Guodian Power, Sichuan Investment Energy, Yangtze Power。

SDIC PowerThe cumulative increase since its listing has reached 72.39 times, ranking first. The company is mainly engaged in the development, construction and operation of various types of energy and power projects. In 2023, the installed capacity of hydropower holdings was 21.28 million kilowatts, making it the third largest listed company in China in terms of hydropower installed capacity. The company's recently released operating data showed that from January to June 2024, the company's domestic holding companies had a total power generation of 77.364 billion kWh and online power of 75.26 billion kWh, with year-on-year increases of 8.53% and 8.66% respectively.

In terms of future growth potential, according to the consensus forecasts of more than five institutions, there are three stocks whose net profit growth rates are expected to exceed 10% in both this year and next year. They are:Huaneng Hydropower, Guodian Power, Shandong Hi-Speed。

Among them, the institutions that unanimously predicted the highest average net profit growth rate wereGuodian Power, the net profit growth rate is expected to reach 46.03% and 10.6% in 2024 and 2025 respectively.

Statement: All information content of Databao does not constitute investment advice. The stock market is risky and investment should be cautious.

Editor: He Yu

Proofread by: Tang Haocheng

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