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Focus on the 2024 interim reports of listed companies

Editor's NoteThe performance of listed companies in my country is slowly recovering. As of August 22, 2024, a total of 1,717 A-share companies have announced performance forecasts, of which 804 companies have strong performance forecasts, accounting for 47%; 908 companies have weak performance forecasts, accounting for 53%. This issue of the capital market mainly analyzes the composition of companies with strong and weak performance forecasts, as well as the characteristics of the semi-annual reports of Internet companies, listed banks, and communications companies, and looks forward to the market in the second half of the year. With the pressure of the internal economic slowdown and the release of external liquidity pressure, the valuation of A-shares may be significantly repaired and usher in a rebound, but we must be vigilant against the challenges brought about by continued global economic uncertainty and sluggish investment activities.

■Zhang Wei

A-share listed banks have successively disclosed their 2024 semi-annual reports, showing overall steady profit growth and stable asset quality. Driven by factors such as strong performance certainty, low valuations, and high dividend yields, bank stocks have recently become a bright spot in the weak A-share market.

Large state-owned banks are favored due to their solid fundamentals

Recently, the A-share market has seen a phenomenon of "the overall market is weak and falling, while state-owned banks are hitting new highs." For example, Bank of China recently hit a record high, with its share price rising by nearly 30% this year. It is worth noting that the dynamic price-to-earnings ratio of large state-owned banks is even higher than that of some small and medium-sized banks.

Ye Xiaojie, director of the Finance Department of the Shanghai National Accounting Institute, said in an interview with China Economic Times that the main factors for the record high valuations of state-owned banks include: First, the fundamentals remain sound, which is conducive to attracting investors' attention. In the current economic environment, state-owned banks are more likely to be favored by investors with their capital strength, extensive business network and high risk resistance. Second, valuation repair. In the past few years, the banking sector as a whole has undergone a long period of adjustment, and its valuation is in a trough. State-owned banks are more likely to be favored by the market with their higher certainty, helping them to repair their valuations. Third, the high dividend characteristics of state-owned banks are in line with the current market trend. Against the backdrop of falling deposit rates and large fluctuations in financial markets, investors prefer the high dividend characteristics of state-owned banks.