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On the evening of May 17, Jiangnan Water Affairs and Chengfa Environment announced that Great Wall Life Insurance Co., Ltd. (hereinafter referred to as "Great Wall Life") held more than 5% of the shares in the company. This means that Great Wall Life held up two listed companies at the same time.

As a well-known risk capital, Great Wall Life has listed many times since last year, and is active in the capital market. Its listed companies are involved in infrastructure, public utilities and financial industries.

Jiangnan Water announced on the evening of May 17, the company received the "simplified equity change report" issued by Great Wall Life on the same day. As of the announcement, Great Wall Life increased its stake by 4676 through the secondary market.100freespinsnodeposit.170,000 shares, accounting for 5% of the total share capital of the company100freespinsnodeposit.0001%, touch the "card line".

On the evening of the same day, Chengfa Environment announced that Great Wall Life increased its stake in Chengfa Environment by 399500 shares through centralized bidding in the secondary market on May 16. In addition, Great Wall Life held a total of 32.1043 million shares in Chengfa Environment, accounting for 5.0001% of the company's total share capital.

With regard to the reasons for listing two A-share companies, Great Wall Life said it made long-term investments based on the allocation needs of insurance companies and the allocation value of listed companies. The source of funding is the self-owned funds of Great Wall Life.

The reporter noted that the two companies listed by Great Wall Life this time are public utility environmental protection companies. The businesses of the two companies have the attributes of natural monopoly and franchise respectively, and have the characteristics of resisting periodic fluctuations, which are more consistent with the allocation needs of insurance capital.

It has been disclosed that the main business of Jiangnan water is tap water production and sale, tap water drainage and related water treatment business, as well as engineering business and drainage business. In 2023, Jiangnan Water achieved an operating income of 1.364 billion yuan, an increase of 7.57 percent over the same period last year, and a net profit of 323 million yuan, an increase of 15.32 percent over the same period last year. In the first quarter of this year, its revenue and net profit increased by 0.61% and 14.33% respectively compared with the same period last year.

As early as January this year, Great Wall Life bought 6.872 million shares of Jiangnan Water at an average price of 4.85 yuan per share, accounting for 0.7368 per cent of the company's total share capital. Since then, it has continued to increase its positions. Until the completion of this increase, Great Wall Life held 46.7617 million shares, accounting for 5.0001 per cent of the company's total share capital.

Great Wall Life has continued to buy Jiangnan Water this year.

Look at the environment of Chengfa, which is involved in environmental protection and highway industry. In the first quarter of this year, the company achieved revenue of 1.357 billion yuan, down 10.74% from the same period last year, and its net profit was 223 million yuan, down 27.33% from the same period last year. Chengfa Environment said that it was mainly due to the contraction of engineering income such as the company's environmental protection solutions and integrated services business, as well as the impact of extreme weather at the beginning of the year, and the potential for the transfer of operational capacity of new projects continued to climb, but the structural change in income was highlighted, and the overall business quality was improving.

Great Wall Life said it did not rule out the possibility of continuing to increase its shares in Jiangnan Water and Chengfa in the next 12 months.

In January this year, Great Wall Life also raised the brand of Wuxi Bank. According to Wuxi Bank's quarterly report this year, Great Wall Life holds 150 million shares, or 6.97%, making it the third largest shareholder in the top 10.

The reporter noted that since last year, Great Wall Life has raised a total of a number of listed companies. On the evening of June 2, 2023, Zhejiang Jiaoko and Zhongyuan Expressway both issued announcements that Great Wall Life increased its stake in the company through centralized bidding trading, reaching the "licensing line".

At present, Great Wall Life owns more than 5% of the domestic and overseas listed companies, including Financial Street, Zhejiang Jiaoko, Central Plains Expressway, Wuxi Bank, Chengfa Environment, Jiangnan Water, and so on.

Industry insiders analyzed to reporters that from the trading prices of the two newly bought listed companies, Great Wall Life's signage is not caused by falling share prices and constantly replenishing positions, but by taking the initiative in the rise of the underlying stock price, which can reflect the recognition of the value of the stock.

(article source: Shanghai Securities News)