Our reporter Zhang Ying
Trainee reporter Ren Shibi Chu Lijun
After the volatile market in February, the first trading day of March saw A-shares have a "good start".
The three major stock indexes rose across the board: the Shanghai Composite Index, the Shenzhen Component Index and the ChiNext Index rose 0.77%, 0.24% and 0.16% respectively.
Does this mean the arrival of the A-share spring market?
Which stocks are worth investing in?
The "Securities Daily" reporter combed the gold stock research report of 20 securities firms in March and found that a total of 173 individual stocks were recommended.
In addition, electronics, power equipment, medicine and biology and other industries are favored by securities companies.
173 gold stocks highlight five highlights
As of March 1, 20 securities firms including China Securities, Ping An Securities, Guosen Securities, etc. announced the list of gold stocks for March. Among the 173 gold stocks, 40 were recommended by two or more brokers.
Among them, Zhou Dasheng and Zhongke Shuguang were both recommended by 4 securities companies, and ranked first in the number of recommendations; Skyworth Digital, Wuliangye, Yunda Co., Ltd., Zhonghuan Co., Ltd., Ningbo Bank, Maiwei Co., Ltd., Gemdale Group, GAC Group, Mingtai Aluminum, etc. All 9 stocks were recommended 3 times.
After further sorting, it is found that the above 173 gold stocks present five major points of interest, which are worthy of investors' attention.
First, the performance is generally good.
According to data from Flush, as of March 1, 39 of the above 173 companies have disclosed their 2021 annual performance reports or performance reports, and 31 have achieved a year-on-year increase in net profit, accounting for nearly 80%.
Among them, nine companies, including Nord, Rongbai Technology, and Keda Manufacturing, doubled their net profits year-on-year.
In addition, 77 companies have disclosed their annual performance forecasts for 2021, and 64 companies have positive performance forecasts.
Among them, 31 are expected to achieve the largest year-on-year increase in net profit of 100% and above.
The second is to focus on small and medium-sized tradable market capitalization stocks.
According to the data, among the above 173 companies, 118 have a market value of less than 50 billion yuan, accounting for nearly 70%.
Among them, 45 companies have a market value of less than 10 billion yuan.
In addition, there are more than 6 companies with a circulating market value of less than 2 billion yuan, including Action Education, Pulian Software, Walrus New Materials, Jiuqi Co., Ltd., Baicheng Pharmaceutical, and Yuanli Technology.
Third, the valuation margin of safety is relatively high.
As of March 1, the median price-earnings ratio of A-shares was 29.26 times. Among the 173 stocks mentioned above, 71 of them had a price-earnings ratio lower than this level, accounting for more than 40%.
Among them, 10 stocks including COSCO SHIPPING Holdings, Nanjing Bank, and Poly Development are less than 10 times.
The fourth is to increase the position of northbound funds.
As of now, 142 of the 173 stocks mentioned above have been held by northbound funds, with a total of 12.954 billion shares.
Among them, Beijing-Shanghai high-speed railway and China Energy Construction are the most sought after, with 138 million shares and 133 million shares increased by northbound funds respectively.
In this regard, Chen Li, chief economist of Chuancai Securities and director of the research institute, said in an interview with a reporter from Securities Daily that my country's economy has long-term growth momentum and continues to attract a large net inflow of northbound funds. While the quality of gold stocks is excellent, The current valuation is relatively reasonable.
Hu Bo, manager of Rongzhi Investment Fund, a subsidiary of privately-owned Pai Pai.com, said that the recognition of gold stocks by Beijing Capital indicates that their quality is high and fits the market investment direction.
Fifth, the stock price is stable.
Some institutions believe that gold stocks send a signal to the market that the company has investment value, or form a certain support for the company's stock price.
Among the above 173 stocks, 131 stocks rose in February, accounting for 75.72%.
Among them, Yuntianhua performed well, with a cumulative increase of 53.69%; in addition, four stocks including Pingmei Co., Ltd., China Ceramic Electronics, Yankuang Energy, and Northern Rare Earth also increased by more than 30%.
Electronics and other three industries have become the focus of configuration
From the perspective of Shenwan’s first-tier industries, the aforementioned 173 gold stocks are mainly concentrated in electronics, power equipment, pharmaceutical and biological industries, and the number of individual stocks involved is 16, 14, and 12 respectively. The overall style is biased towards technological growth.
Regarding the investment opportunities in the above three industries, Chen Li believes that after the previous correction, the valuation of the relevant sectors is relatively reasonable at this stage and has good allocation value.
Specifically, in the electronics sector, with the continued strong demand for chips such as new energy vehicles, IDC, and 5G, the semiconductor and upstream raw material industries will continue to benefit; in terms of power equipment, the cost of wind power and photovoltaics will continue to optimize, and the commercial value will continue to increase. The equipment industry will maintain rapid growth; in terms of pharmaceutical biology, the overall valuation of the sector is currently in a relatively reasonable range, and the pharmaceutical and biological sector will continue to differentiate in 2022. It is recommended to focus on innovative drug synchronization companies with strong R&D capabilities and strong product competitiveness.
Hu Bo believes that the electronics industry represents a high-prosperity track, the pharmaceutical and biological industry is a sector with rebound opportunities, and the power equipment industry is a sector that benefits from steady growth.
Ma Cheng, chairman of Juze Investment, said that investment opportunities in the above industries should be treated differently.
First, look at the electronics and power equipment industries.
Among them, the investment logic of the electronics industry is mainly that with the rapid increase in the penetration rate of new energy vehicles, it will further drive the high prosperity of the upstream industry; the power equipment industry has benefited from the implementation of my country's "dual carbon policy", which has driven wind energy, photovoltaic The rapid development of green power and ultra-high voltage also ushered in a period of opportunity.
For the pharmaceutical sector, we should be cautious for now, mainly because this year's "centralized pharmaceutical procurement" will further increase the depth and breadth, which may affect the performance of the sector. Investors are advised to wait for the policy to be clear before making relevant arrangements.
Structural opportunities expected to increase in March
Behind the selection of gold stocks, there are differences among major brokerages on investment opportunities in March, and optimism and cautious views are intertwined.
Optimists believe the market will outperform February in March.
For example, Ping An Securities believes that although the A-share market will still be dominated by shocks, structural opportunities are expected to increase, and the overall performance will be better than February.
After entering March, with the release of economic data, the policy statements of the two sessions and the performance of listed companies, the market uncertainty has gradually decreased.
CITIC Construction Investment believes that in March, the stock market will continue to fight back in the short term, and medium-term challenges will remain.
At present, the market is still in a favorable window period. With the approach of the two sessions, the stable growth of the infrastructure chain has begun to gradually materialize. In the follow-up, as the Fed's interest rate hike expectations in March cool down and the yields of domestic long-end government bonds fall, the growth sector environment will be improved.
Cautions said the market rally could end as early as early March.
For example, Cinda Securities proposed that from mid-late March to April, the company's annual report and industry high-frequency data will be released one after another. If the performance trend is downward, the index trend will weaken accordingly, otherwise, it will return to the bull market.
"Although the current domestic policy of steady growth has gradually been implemented, the economy has not yet shown a clear signal of improvement, and the superimposed external risks are constantly fermenting. Factors such as rising U.S. bond interest rates, geopolitical tensions, and global risk asset corrections still affect investor sentiment in A-shares. Inhibition," Galaxy Securities said in its research note.
In terms of allocation, growth stocks are favored by brokerages.
In its research report, Zheshang Securities proposed the "three lows" allocation strategy, that is, using low valuations, low stock prices, and low positions as anchors to tap stable growth and new growth, and the current market characteristics of the stock game may show a seesaw effect.
Looking forward to March, the portfolio allocation can be marginally balanced.
Specifically, since the beginning of the year, steady growth and growth stocks have diverged significantly.
As far as growth stocks are concerned, in addition to oversold track stocks in the early stage, new growth directions can be actively explored around financial reports, such as automotive electronics and semiconductor sub-fields.
Soochow Securities said that price logic correction and economic growth will bring interest rates back to a reasonable level, so attention should be paid to investment opportunities in the growth stock track.
CITIC Construction Investment is optimistic about power semiconductors and photovoltaics with high prosperity, and CXO, which is expected to improve marginally.
At the same time, it is recommended that investment focus on aluminum and crude oil chains that benefit from geopolitics, thermal power that benefits from falling coal prices, and the digital economy that receives policy support.
(Securities Daily)