On January 23, Yi Huiman, chairman of the China Securities Regulatory Commission, mentioned the state-owned company valuation again. He pointed out that we must make every effort to maintain the stable operation of the capital market, vigorously improve the quality and investment value of listed companies, and build a valuation system for listed companies with Chinese characteristics. The core driver of China Special Appraisal is the reform of state-owned enterprises. Improving the ability to pay dividends and profits is the ultimate goal. Improving ROE is a necessary condition. Improving ROE can be divided into two ways: internal potential tapping and external mergers and acquisitions. The State-owned Assets Supervision and Administration Commission "one benefit" The "Five Ratios" assessment focuses more on internal potential tapping, while external mergers, acquisitions and restructuring are also expected to accelerate in the future. On the morning of the 24th, the deputy director of the State-owned Assets Supervision and Administration Commission proposed that he will further study the inclusion of market value management in the performance evaluation of State-owned enterprises, guide them to pay more attention to the market performance of listed companies, and increase cash dividends. At present, the dividend rates of some central state-owned enterprises in construction have reached considerable levels. The leading central state-owned enterprises with low valuations still have good investment value.
For example, $CHINA EVERBRIGHT WATER LIMITED(U9E.SI)$ P/B=0.299, P/E=3.29, dividend yield=9%, it can pay out more dividend if it needs to push up the market valuation.
$CHINA AVIATION OIL(S) CORP LTD(G92.SI)$
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