Shang Hai Zheng Quan Bao·2025-11-14 18:39Core Insights - Central state-owned enterprises (SOEs) are crucial to national strategy and play a key role in maintaining the stability of the capital market, accounting for approximately 30% of the total market capitalization of A-shares [1] - The "value management" strategy has become a core focus for SOEs, transitioning from a marginal topic to a central strategy, with the National New SOE Composite Index rising over 20% in 2024 [1][2] - Experts emphasize that SOE value management is a systematic project aimed at aligning intrinsic value with market value, rather than merely short-term stock price management [1][2] Value Creation and Performance - The fundamental aspect of value management is enhancing intrinsic value, with over 220 SOEs reporting year-on-year growth in net profit in the first three quarters of 2025, and 19 companies doubling their net profits [2] - The State-owned Assets Supervision and Administration Commission (SASAC) emphasizes the need for SOEs to focus on improving the quality of development through mergers, share buybacks, and cash dividends [2] Case Study: China Mobile - China Mobile serves as a leading example of effective value management among SOEs, achieving an A-grade in SASAC's annual assessment and focusing on strategic emerging industries like artificial intelligence for growth [3] - SOEs are increasingly using market-oriented methods such as mergers and acquisitions to concentrate resources in core and strategic emerging sectors, enhancing asset securitization and capital operation efficiency [3] Value Transmission - Effective communication of created value to the market is critical for successful value management, with cash dividends being a direct method for SOEs to convey value to investors [4] - Over 310 SOEs distributed dividends totaling over 408 billion yuan in 2024, with several companies making their first-ever dividend payments [4][5] - Stock buybacks and increases in shareholding are also important tools for maintaining investor confidence, with over 60 SOEs announcing buyback or increase plans in 2024 [5] Long-term Strategy and Institutionalization - The SASAC has incorporated value management into the performance assessment of SOE leaders, enhancing its importance and prompting SOEs to develop specific value management systems [6] - More than 120 SOEs have disclosed dedicated value management systems, with over 45 companies creating targeted valuation enhancement plans [6] - The shift towards institutionalized value management aims to transform it from a short-term action into a long-term strategy, focusing on sustainable value creation [7]