Impact Analysis of Central Enterprises Relocation to Xiongan Policy on Relevant Listed Companies

Based on the latest market data and the policy background of central enterprises relocating to Xiongan, I will systematically analyze the impact of this policy on relevant listed companies.

From December 25 to 28, 2023, the headquarters projects of three central enterprises in the second batch of relocation to Xiongan New Area—China Agricultural Development Group, China Huadian Group, and China Chengtong Holdings—started construction successively. So far, “all four central enterprise headquarters in the second batch have started construction”. The first batch of relocated central enterprises includes China StarNet, Sinochem Group, and China Minmetals Resources Group [0]. This is a key measure for the coordinated development of Beijing-Tianjin-Hebei and the relocation of non-capital functions from Beijing, with supporting infrastructure, office, and living facilities gradually being implemented.

• China Huadian Group: Huadian International (600027.SS, market cap ~52 billion yuan), etc.
• China Chengtong Holdings: China National Storage Group (600787.SS, market cap ~12.4 billion yuan), Yueyang Forest & Paper (600963.SS, market cap ~8 billion yuan), Guanhao High-tech (600433.SS, market cap ~5.8 billion yuan), etc.
• China Agricultural Development Group: China Animal Husbandry Group (600195.SS, market cap ~8.2 billion yuan), CNADC Seed Industry (600313.SS, market cap ~7.3 billion yuan), etc.

• Public Utilities/Infrastructure Related: As a public utility enterprise, Huadian International is expected to obtain new installation or operation and maintenance orders if it lays out supporting energy and power projects in the new area, and may form a “regional premium”; the short-term elasticity of report orders and revenue depends on project progress and capital expenditure plans.
• Logistics and Supply Chain: China National Storage Group has rich experience in warehousing, logistics, and supply chain integration. The construction and industrial agglomeration of Xiongan New Area have potential for location and network synergy with it; China National Storage Group has an ROE of ~3.35% and a net profit margin of ~0.73% [0], and profit improvement needs to observe order conversion and project implementation.
• Paper Making and Materials: Yueyang Forest & Paper and Guanhao High-tech may receive partial demand support in the construction and daily operation of the new area, but considering product and market structure, incremental space needs to be evaluated based on specific projects and contract implementation.
• Agriculture and Seed Industry: China Animal Husbandry Group and CNADC Seed Industry have certain long-term opportunities in R&D and cooperation due to policy emphasis on agricultural technology and food security; short-term needs to track specific cooperation or orders related to Xiongan.

• Short-term: Headquarters construction and relocation involve capital expenditure and migration costs, which may increase phased expenses and personnel adjustment pressure.
• Medium to long-term: If management structure optimization and process improvement are implemented, it may improve management efficiency and resource allocation quality. China Animal Husbandry Group and CNADC Seed Industry have ROE of ~3.83% and ~2.74% respectively [0]; subsequent efficiency improvement depends on organizational and institutional implementation.

• Settling central enterprises help strengthen alignment with the Beijing-Tianjin-Hebei coordinated development strategy and enhance cooperation and resource allocation opportunities in the regional market.
• In terms of project approval, policy support, and industrial synergy, they may get more communication channels and supporting opportunities.

Current main indicator comparison (all based on latest quotes and company profiles [0]):

• Huadian International (600027.SS): Price 5.25 yuan, P/E ~8.97x, P/B ~0.89x, ROE ~9.49%
• China National Storage Group (600787.SS): Price ~5.70 yuan, P/E ~26.73x, P/B ~0.89x, ROE ~3.35%
• Yueyang Forest & Paper (600963.SS): Price ~4.53 yuan, P/E ~90.60x, relatively low ROE
• Guanhao High-tech (600433.SS): Price ~3.31 yuan, P/E ~331.00x, low ROE
• China Animal Husbandry Group (600195.SS): Price ~8.00 yuan, P/E ~38.10x, ROE ~3.83%
• CNADC Seed Industry (600313.SS): Price ~6.73 yuan, P/E ~136.13x, ROE ~2.74%

Observations:

• Public utilities/infrastructure related: Huadian International, as a public utility enterprise, may bring new installation or operation and maintenance orders and form a “regional premium” if it lays out supporting energy and power projects in the new area; short-term elasticity of report orders and revenue depends on project progress and capital expenditure plans.
• Most companies have P/B <1 or close to 1, reflecting market attention to their asset quality and return improvement space; if Xiongan-related projects drive order implementation and capital return improvement, there may be a valuation repair logic.
• Different sub-sectors are affected to different degrees and at different paces; need to combine company’s own order disclosure, project commissioning progress, and financial indicators for verification.

Note: No specific target price or valuation range is given. Whether valuation undergoes substantial restructuring depends on: 1) Visibility of Xiongan projects’ contribution to company revenue/profit; 2) Sustainability of ROE and cash flow improvement; 3) Changes in market expectations for regional policies and risk appetite.

• Positive factors: Business increments and policy resource inclination brought by regional construction, and the endowment of central enterprises in industrial chain and resource integration.
• Uncertainties: Migration costs, project cycles, order conversion and execution risks, and the impact of macro environment on company’s main businesses (energy, logistics, agriculture, paper-making).
• Risks: Slower-than-expected project progress, short-term cash flow drag from capital expenditure, changes in industrial competition pattern, cost and expense management pressure, etc.

• Huadian International (600027.SS): Low valuation (P/E ~9x), high ROE (~9.49%) and potential policy overlay; focus on installation/order implementation and profit realization pace.
• China National Storage Group (600787.SS): Logistics/supply chain has regional synergy potential; focus on ROE and order improvement.
• China Animal Husbandry Group and CNADC Seed Industry: Under the background of agricultural technology and food security, focus on marginal improvement of business structure through cooperation and R&D conversion.

• Track company announcements and project disclosures (orders, contracts, capital expenditure, commissioning plans).
• Pay attention to the contribution description of Xiongan-related businesses to revenue/profit in subsequent financial reports.
• Combine industry policies and Beijing-Tianjin-Hebei industrial synergy documents to grasp the rhythm of industry and regional resonance.

Note: The above analysis is based on the latest quotes and company profile data [0]; no target price or valuation range is involved. Specific investment decisions need to consider one’s own risk tolerance, holding period, and judgment on policy sustainability; if necessary, deep research mode can be further enabled to obtain more granular order and project tracking data.