Over 70% of Q2 Social Security Fund Heavy Holdings Show Profit Growth in Semi-Annual Reports
As listed companies release their semi-annual reports, the Social Security Fund's Q2 portfolio adjustment movements are gradually becoming apparent.
According to Choice statistics, as of August 14, the Social Security Fund has appeared among the top ten circulating shareholders of nearly 50 listed companies in their semi-annual reports, holding a combined total of over 800 million shares with a combined market value exceeding 15.1 billion yuan. In terms of holding changes, the fund established new positions in 17 stocks, increased holdings in 15 stocks, reduced holdings in 9 stocks, and maintained unchanged positions in 8 stocks.
The new positions span multiple industry sectors including basic chemicals, home appliances, social services, computers, and transportation. In terms of performance, over 60% of companies achieved net profit growth in the first half of the year.
From a market performance perspective, the aforementioned Q2 Social Security Fund heavy holdings have achieved an average gain of over 22% year-to-date, with over 70% of stocks posting gains.
**Multi-Sector Layout with 17 New Positions**
In Q2, among the Social Security Fund's stock holdings, increased positions mainly involved banking, chemical, and electronics sectors, showing preference for stocks with stable earnings growth. The industry distribution of new positions was more diversified, focusing on both traditional advantaged sectors and emerging growth areas.
In the banking sector, Changshu Bank became a favored stock by the Social Security Fund. As of the end of June, four portfolios appeared on the bank's top ten circulating shareholders list, holding a combined 278 million shares, accounting for 8.38% of the bank's circulating shares, with new holdings of 23.7972 million shares.
Regarding new positions, the Social Security Fund established new positions in 17 stocks in Q2, with 5 stocks holding over 10 million shares. Satellite Chemical Co.,Ltd. (002648.SZ) had the largest holding at 20.1693 million shares, followed by Suzhou Sushi Testing Group Co.,Ltd. (300416.SZ) with 14.862 million shares. Four Social Security Fund portfolios simultaneously entered the latter company's top ten circulating shareholders list.
In terms of allocation ratios for new positions, China Catalyst Holding Co.,Ltd. (688267.SH) received the highest allocation ratio from the Social Security Fund, with holdings accounting for 3.45% of circulating shares. The company is engaged in the research, development, production, and sales of specialty catalysts and other chemical products. Additionally, Shenzhen Crastal Technology Co.,Ltd. (300824.SZ) and Suzhou Sushi Testing Group Co.,Ltd. also achieved allocation ratios of around 3%.
Industry-wise, the 17 new positions covered multiple sectors including basic chemicals, home appliances, social services, computers, and transportation, encompassing both traditional advantaged industries and emerging growth sectors.
Furthermore, among the nearly 50 heavy holdings in Q2, the Social Security Fund only reduced holdings in 9 stocks, concentrated in biopharmaceuticals, building materials, and energy metals sectors. The largest reductions were in North Huajin Chemical Industries Co.,Ltd. (000059.SZ) and Amoy Diagnostics Co.,Ltd. (300685.SZ), with reductions exceeding 9.5 million shares and 5.6 million shares respectively, representing reduction ratios of approximately 0.6% and 1.45%.
**Q2 Heavy Holdings Show Mixed Performance**
From the perspective of holding market value changes, the known Social Security Fund heavy holdings had a combined market value exceeding 15.1 billion yuan at the end of Q2, with new positions adding approximately 2.2 billion yuan in market value and overall holding market value increasing by 348 million yuan compared to the previous period.
In terms of market performance, the nearly 50 Social Security Fund heavy holdings showed varied stock price movements, with an overall average gain exceeding 22% year-to-date and over 70% of stocks posting gains. Among them, Goldmye Inc. (301052.SZ) achieved cumulative gains exceeding 140%, Dongguan Dingtong Precision Metal Co.,Ltd. (688668.SH) gained over 133%, and Luoyang Xinqianglian Slewing Bearing Co.,Ltd. (300850.SZ) gained over 96%.
Looking solely at Q2, the Social Security Fund heavy holdings achieved an average gain of 0.51%. Among the 17 new positions, 11 stocks rose, including Dongguan Dingtong Precision Metal Co.,Ltd. and Luoyang Xinqianglian Slewing Bearing Co.,Ltd., both gaining over 30%. Among declining stocks, Satellite Chemical Co.,Ltd. fell 24.62% and Suzhou Sushi Testing Group Co.,Ltd. declined 16.44%, leading the declines.
However, for the Social Security Fund, short-term individual stock volatility has limited impact, as it focuses more on targets with stable long-term growth and clear development prospects.
From a performance perspective, among Q2 Social Security Fund heavy holdings, over 70% of companies achieved year-over-year net profit growth in the first half of the year. Anhui Ronds Science&Technology Incorporated Company (688768.SH) achieved a remarkable 2,063.42% year-over-year increase in net profit for the first half, with total net profit of 14.2355 million yuan. Additionally, companies like Luoyang Xinqianglian Slewing Bearing Co.,Ltd. and Ningbo Jifeng Auto Parts Co.,Ltd. (603997.SH) achieved substantial net profit growth, with increases exceeding 150%.
From an industry distribution perspective, stocks with declining performance in the first half were mainly distributed in basic chemicals and building materials sectors. The Social Security Fund's Q2 portfolio adjustment movements also reflect its high attention to individual stock performance. Taking the chemical sector as an example, heavy holdings showed differentiated performance, with some underperforming stocks facing reductions while some newly added chemical stocks demonstrated relatively better performance.
However, among Q2 increased and new positions, there were also cases of significant performance declines in the first half. For instance, the Q2 increased holding Lixin Energy saw net profit decline by over 90% year-over-year in the first half. Huafon Chemical Co.,Ltd. (002064.SZ), with increased holdings exceeding 20 million shares, experienced a net profit decline of over 35% in the same period. The newly added Zhejiang Fore Intelligent Technology Co.,Ltd. (301368.SZ) also saw net profit decline by over 68% year-over-year.
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