Low Valuations Combined with High Dividends: Defensive Value Highlighted in 23 Stocks

Securities Times Reporter Liang Qiangang

Recently, market sentiment has become more cautious, and the demand for risk aversion among funds has increased. In the A-share market, high-quality, low-valuation, and high safety margin stocks that are resistant to declines have attracted much attention. Among them, 23 stocks possess both low valuation and high dividend attributes, making them promising safe-haven options for funds during volatile markets.

According to Securities Times Data Treasure, stocks with anti-dip characteristics are selected based on the following three criteria: First, as of the close on March 24, the latest closing price has retreated less than 10% from the year’s high; Second, as of March 24, the rolling price-to-earnings ratio is below 30; Third, based on the 2025 annual report, performance quick report, and forecasted minimum net profit attributable to the parent (or the announced value if no minimum is provided), the net profit attributable to the parent in 2025 is positive and shows year-over-year growth (including turning losses into profits).

Statistics show that a total of 35 stocks meet these criteria. These stocks are mainly distributed across industries such as pharmaceuticals and biotechnology, banking, utilities, transportation, electrical equipment, and food and beverages, with seven stocks each in pharmaceuticals/biotech and banking.

In terms of performance growth, four stocks are expected to have a net profit attributable to the parent in 2025 that grows by over 70%, namely San Sheng Guo Jian, Qian Yuan Electric Power, Putailai, and Sui Hengyun A.

San Sheng Guo Jian’s quick report shows that its net profit attributable to the parent in 2025 will be 2.939 billion yuan, a year-over-year increase of 317.09%, ranking first. During the reporting period, the company reached an important cooperation with Pfizer, receiving an initial licensing payment from Pfizer for Project 707, which contributed approximately 2.89 billion yuan in revenue.

Qian Yuan Electric Power expects its net profit attributable to the parent in 2025 to be between 567 million and 632 million yuan, representing a 160% to 190% increase year-over-year. During the period, water inflow was 45% higher than the same period last year, and electricity generation in 2025 reached 12.12 billion kWh, up 71.9% year-over-year, driving increases in power generation revenue and profit.

Putailai achieved a net profit attributable to the parent of 2.359 billion yuan in 2025, a 98.14% increase. During the reporting period, the global automotive market continued its trend toward intelligence and electrification, energy storage market demand grew strongly, the consumer electronics market recovered, and the phased destocking cycle of new energy batteries and materials ended, gradually improving the industry environment. The company’s wet-process membrane and coating processing business saw significant growth; silicon-carbon anode mass production began, with business bottoming out and gradually recovering; sales of functional materials such as PVDF, PAA, and ceramic coating materials increased rapidly, effectively contributing to performance growth.

Among these 35 anti-dip high-quality stocks, many feature prominent dividend payout and high dividend yields. Data Treasure statistics show that as of the close on March 24, 23 stocks had dividend yields (over the past 12 months) exceeding 2%, including China Merchants Bank, Shanghai Bank, and Sannong Bank, all with yields over 5%.

China Merchants Bank’s dividend yield is 7.68%, ranking first. The company’s net profit attributable to the parent in 2025 is 150.2 billion yuan, a 1.21% increase. As of the end of 2025, the group’s non-performing loan ratio was 0.94%, down 0.01 percentage points from the previous year; the provision coverage ratio was 391.79%, down 20.19 percentage points; and the loan provision coverage rate was 3.68%, down 0.24 percentage points.

Shanghai Bank’s dividend yield is 5.27%, with a net profit attributable to the parent in 2025 of 24.193 billion yuan, up 2.69% year-over-year. During the period, the group maintained stable asset quality, with a non-performing loan ratio of 1.18%, unchanged from the end of last year; the provision coverage ratio was 244.94%, down 24.87 percentage points from the same period last year.

From the secondary market perspective, trading activity among these 35 anti-dip high-quality stocks has significantly increased. Since March, 23 stocks have seen their average daily trading volume grow by more than 10% month-over-month, with six stocks doubling their daily trading volume, including Jian Sheng Group, Qian Yuan Electric Power, Putailai, Zhongke Electric, Yuan Chuang Shares, and Sui Hengyun A.

Jian Sheng Group’s trading volume increased the most, with an average daily turnover of 156 million yuan since March, a 278.77% increase. The company’s net profit attributable to the parent in 2025 is expected to be 405 million yuan, up 24.62% year-over-year. Northeast Securities’ research report states that Jian Sheng Group’s performance exceeded expectations. The company’s expansion in Egypt, diversified advantages, healthy cash flow, and overall operational health support continued order recovery and improved profitability.