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The top 50 quality resources stocks have been released.
Since the beginning of the year, the three major resource sectors of petroleum and petrochemical, coal, and non-ferrous metals have generally strengthened, and the industry index has all risen by more than 10%, ranking among the top five on the list of application-level industries, and has become one of the focuses of the market. Among them, aluminum, copper, gold and other metals performed prominently, with stocks such as northern copper, Jiangxi copper, Hunan gold and aluminum of China all rising more than 30%.
The logic behind the rise in resource stocks is the collective outbreak of commodities at home and abroad, with a number of important futures prices hitting record highs. As of the latest close, COMEX gold has continued to rise since November 2022, with a cumulative increase of more than 40%. The main contract of Shanghai copper began to rise rapidly in March, with a cumulative increase of 19%.Haktutsspin2020.25%, more than the increase in the past year. WTI crude began to pull back slightly in April, rising more than 20 per cent since the start of the year, with the latest cumulative gain of more than 10 per cent.
List of top 50 resource stocks released
According to the statistics of the Securities Times, from the perspective of performance, institutional attention, dividends, market capitalization, and so on, a number of listed companies in the resource sector with sustained and stable profitability, positive dividends and leading the industry have been selected. The conditions are as follows:
1. The average weighted return on equity (ROE) in the past 3 years is more than 10%.
2. More than 10% of cash dividends have been declared in 2023.
3. Recent performance has been covered by agency ratings.
4. The total market capitalization exceeds 10 billion yuan.
After statistics and screening, among the top 50 resource stocks, not only traditional energy sources such as thermal coal and oil, but also lithium, an important new energy resource, are included. Aluminum and copper also account for a large proportion of industrial metals. In addition, cobalt, magnesium, titanium, tin and other rare metals were selected.
Since the beginning of the year, the stock prices of the top 50 resource stocks have outperformed the industry index, with an average increase of 16.17%, with more than 40% of stocks rising by more than 20%. Luoyang Molybdenum Industry and Xinji Energy led the way, reaching 72.69% and 70.4%, respectively.
Luoyang Molybdenum shares hit a new high since listing, with a total market capitalization of 185.141 billion yuan. The company is the world's leading producer of copper, cobalt, molybdenum, tungsten and niobium.
Xinji Energy's main business is coal mining, washing and thermal power generation. In 2023, the company's commercial coal output was 19.3691 million tons, an increase of 5.16% over the same period last year, and the sales volume of commercial coal was 19.6861 million tons, an increase of 8.7% over the same period last year.
The top 50 resource stocks are more willing to pay dividends.
Coal, oil and other resources stocks are an important part of dividend assets. From the perspective of dividend yield, the average dividend yield of the top 50 resource stocks in 2023 (calculated in terms of the total annual declared dividends and the total market capitalization at the end of 2023) reached 4.09%, significantly higher than 1.75% of the average of the sector as a whole. The dividend yields of Yanzhou Mining Energy, Guanghui Energy, Pingping Coal and Shanxi Coking Coal are all more than 8%.
From the perspective of the persistence of cash dividends, 32 of the top 50 resource stocks have paid dividends for five consecutive years since 2019, accounting for more than 60% of the total. Among them, the total cash dividends of PetroChina and China Shenhua have been more than 10 billion yuan for five consecutive years, and the dividends of China Coal Energy and Huaibei Mining have increased year by year.
Behind the big dividend is the strong cash flow support. Data show that the median net cash flow generated by the operating activities of the top 50 resource stocks last year reached 4.115 billion yuan, of which 12 shares exceeded 10 billion yuan, including Shenhuo shares, Zijin Mining, Tianqi Lithium Industry, PetroChina and other leading companies.
Multi-channel funds are heavily positioned in top 50 stocks
The top 50 resource stocks have a high degree of attention, with more than 3 raters. While getting more agency ratings, the top 50 stocks all had heavy fund positions in the first quarter.
The fund holds the highest proportion of shares is Huafeng Aluminum. At the end of the first quarter, 56 funds piled into the stock, accounting for 18.89% of the outstanding A-shares. Yintai gold, Yongxing materials, Shenhuo shares, Chifeng gold and other stocks of the fund holding ratio of more than 10%.
As a model of value investment, social security funds and insurance funds also favor resource stocks.
At the end of the first quarter, among the top 50 resource stocks, 14 shares received social security funds and risky assets at the same time, Guanghui Energy also received 3 social security funds and 2 dangerous capital warehouses. Shenhuo shares, Chifeng Gold, Shanxi Coking Coal and Xiamen Tungsten Industry respectively received 4 social security funds or dangerous assets.
Institutions are optimistic about the follow-up trend of resource stocks.
For the future trend of resource stocks, a number of institutions continue to be optimistic. Guohai Securities Research News believes that from the follow-up interpretation, there are two points at the core of high dividends in resource stocks: first, capital expenditure is limited, and high dividends are willing to support the comparative advantage of ROE; second, overseas re-inflation is a "tailwind period" before the US election, and overseas-priced commodities may still have room to rise.
Haitong Securities Research News believes that the strength of this round of resource products reflects three major logics of the market: first, the global manufacturing recovery stimulates the expectation of improved demand; second, the early dovish statement of the Federal Reserve triggered the market to "snatch" trading and cut interest rates; third, changes in the supply and demand pattern of some commodities themselves. If the market of the resource sector is to rise further in the future, it will need further event catalysis, and the main catalytic factor may come from the Fed's interest rate cut policy or the higher-than-expected domestic economic recovery.