Pengpai News reporter Ge Jia
Zhang Kun
In the early morning of March 30, the "top stream of 100 billion" fund managed by Zhang Kun, deputy general manager of E Fund , all released their 2021 annual report, and the invisible heavy holdings in their holdings and the latest views were also released.
According to the comparison of Pengpai News reporters, among the invisible heavy-weight stocks ranked 11th to 20th, the "new faces" include Pop Mart (09992.HK), Focus Media (002027.SZ), Oriental Fortune (300059.SZ), Mengniu Dairy (02319.HK), Times Electric (688187.SH), Honghua Digital Technology (688187.SH), etc.
increases the allocation of finance, consumption, etc., and reduces the allocation of medicine, etc.
E Fund Blue Chip Selection is the largest among the four funds under management. As of the end of 2021, the net asset value of the fund was 67.623 billion yuan. The changes in the shareholding of this fund are representative.
2021 annual report shows that the stock positions of E Fund Blue Chip Selected are basically stable, and Zhang Kun has adjusted the structure. In terms of industry, the allocation of finance, consumption and other industries has been increased, and the allocation of medicine and other industries has been reduced; in terms of individual stocks, the investment ratio of individual stocks with distinct business models, clear long-term logic and reasonable valuation levels has been increased.
The fund's heavily held stock has always been the most concerned by investors. The fund's stock position was 94.23% as of the end of 2021, and it holds a total of 84 stocks. The holdings of the first to 10th individual stocks account for 88.2% of the fund's net value.
Specifically for individual stocks, E Fund Blue Chip Selection has no new faces in the top ten heavily held stocks at the end of the period. They are still Tencent Holdings (00700.HK), Hikvision (002415.SZ), Luzhou Laojiao (000568.SZ), Kweichow Moutai (600519.SH), China Merchants Bank (600036.SH, 03968.HK), Wuliangye (000858.SZ), Yanghe Shares (002304.SZ), Hong Kong Exchanges (00388.HK), Yili Shares (600887.SH), Ping An Bank (000001.SZ).
However, since the top ten heavily held stocks of the fund have been previously disclosed in the 2020 fourth quarter report, in the fund annual report, what is more worthy of attention is the invisible heavily held stocks of the fund manager.
2021 annual report shows that the invisible heavy-holding stocks ranked 11th to 20th in E Fund Blue Chip Select include: Meituan (03690.HK), Pop Mart, Focus Media, Oriental Fortune, Pianzihuang (600436.SH), Aier Eye Hospital (300015.SZ), Shanxi Fenjiu (600809.SH), Tiantan Biology (600161.SH), Tongce Medical (600763.SH), Mindray Medical (300760.SZ). The total holdings of the above 11 to 20 stocks account for 6.32% of the fund's net value.
Among them, Pop Mart, Focus Media, and Oriental Fortune are all newcomers on the list. Meituan, Aier Eye Hospital, Tiantan Biology and Tongce Medical have all suffered significant share reductions.
As of the end of 2021, the net share value of E Fund Blue Chip Select was 2.5825 yuan, the growth rate of share value in 2021 was -9.89%, and the benchmark yield for performance in the same period was -7.05%.
In addition, E Fund high-quality companies hold invisible heavy holdings ranked 11th to 20th for three years include: Meituan, Pop Mart, Focus Media, Oriental Fortune, Mengniu Dairy, Aier Eye Hospital, Times Electric, Tongce Medical, Jinxin Reproductive (01951.HK), and Honghua Digital.
Among them, Pop Mart, Focus Media, Oriental Fortune, Mengniu Dairy, Times Electric and Honghua Digital Technology are all "new faces". The targets for
reduction also overlap with E Fund Blue Chip Selection, which are Meituan, Aier Eye Hospital, Tongce Medical, and Jinxin Reproduction.
As of the end of 2021, E Fund High-quality Enterprise held fund shares in three years and was 1.2535 yuan, with a growth rate of -8.22% in 2021, and a benchmark yield for performance in the same period was -7.05%.
Two International (QDII) Stock Fund , E Fund High Quality Selection Rankings 11th to 20th include: Alibaba (09988.HK), Meituan, NetEase (09999.HK), Pop Mart, Mengniu Dairy, Yum China (09987.HK), Shanxi Fenjiu (600809.SH), Dongpeng Beverage (605499.SH), Tiantan Biology (600161.SH), and Sankeshu (603737.SH).
E Fund Asia Selected Stocks Ranking 11th to 20th include: NetEase, Pop Mart, China Offshore Oil (0083.HK), China Property Insurance (02328.HK), Pinduoduo (PDD.US), Yum China, China Shenhua (01088.HK), Jinxin Reproduction, Yonghe Medical (02279.HK), Sander International (00967.HK), and China Animal Health Products (00940.HK).
"The value of an enterprise is the discount of all free cash flows in its life cycle "
Looking forward to the future, Zhang Kun stated in his annual report that he always believes that the value of an enterprise is the discount of all free cash flows in its life cycle.
From an annual perspective, Zhang Kun believes that free cash flow is often affected by factors such as capital expenditure rhythm and operating capital fluctuations, and often shows large fluctuations. Therefore, investors often use net profit (and its growth rate) or revenue (and its growth rate), and even production capacity (and its growth rate) as approximate variables for valuation. This is reasonable to some extent, because the conversion process of free cash flow is "income-net profit-free cash flow".
"However, it cannot be ignored that since it is an approximate variable, it cannot be represented 100%. Each step of the above conversion may be unsmooth." Zhang Kun gave an example, for example, the conversion from income to net profit may be affected by intensified competition, showing an increase in revenue but not profit; the conversion from net profit to free cash flow may be affected by factors such as excessive capital expenditure but insufficient final utilization rate, and increasing operating capital.
Therefore, Zhang Kun said, "When we are used to using agency variables such as income and net profit to value companies, we also need to consider the potential unsmooth possibility of these agency variables to transform into the essential variable of free cash flow. I think this may also be one of the reasons why Amazon calls on its investors to pay attention to its free cash flow directly."
Zhang Kun further pointed out that when studying companies, free cash flow has always been one of the financial indicators it pays most attention to. Although there will be fluctuations between years, it is not difficult to distinguish whether a company can create abundant free cash flow for shareholders from a 5-10-year dimension. Further from the bottom perspective, how much the products produced by an enterprise are eager for by its customers, whether it has an excellent business model, and whether it has a moat to maintain a good competitive landscape over a long period of time are important determinants that enable revenue to be smoothly converted into net profit and then converted into free cash flow.
"As managers, we always feel the heavy responsibility on our shoulders." Zhang Kun wrote that the assets of the fund belong to every holder. For each holder, what they actually hold is part of the equity of the listed company held by the fund. We will always stand with our holders and strive to find some high-quality listed companies that can generate abundant free cash flow and the free cash flow generated can grow over time. This is the only way for the company's equity value to grow over time, and then, within a long enough time, it will eventually be reflected in the fund's net value growth.
Editor in charge: Shi Dongdong Photo editor: Zhang Tongze
