Daily data tracking
Three major indexes: the Shanghai index fell 0.50%, the Shenzhen composite index fell 0.93% and the gem index fell 2.5% O9%
Shenwanyi sector: leisure services, building materials and household appliances rose; Electrical equipment, agriculture, forestry, animal husbandry and fishery, comprehensive plate
Concept sector: the concept of continuous board, securities and playing board rose; Semiconductor silicon wafer, third generation semiconductor and power battery
Transaction and northbound capital: the transaction between the two cities was about 1203.6 billion yuan, an increase over the previous trading day, and the net inflow of northbound capital was about 395 million yuan
Hotspot tracking: disk analysis
The trend of A-Shares continued to differentiate, and the funds recently switched to the undervalued sector. The industries with the highest increase in the past five days were building materials, building decoration, mining, non bank finance, transportation and real estate.
Under the expectation of steady growth, the senior management stated that the reserve requirement should be lowered in due time, and the monetary policy is expected to change from neutral marginal easing to relatively easing. Superimposed on the recent recovery of some economic data, it shows that economic growth is still resilient. Therefore, it is suggested that investors should actively participate in the cross-year market.
By reviewing the market performance of A-Shares after the release of the historical RRR reduction news, we found that the probability of rise was high, and the growth style rose first under the expectation of loose liquidity. We believe that the next year’s market will unfold slowly. We suggest investors to grasp two main lines:
First, the opportunity of low absorption in the large consumer sector. With the opening of the tide of price increase in the consumer sector, enterprises with strong future pricing power and brand advantages are expected to take the lead in benefiting. After the cost side pressure of leading companies is gradually relieved, they are expected to enjoy the dividend of raw material price decline + profit elasticity repair in the medium and long term. In 2022, leading companies of consumer goods are expected to usher in a new era of valuation and profit, It is suggested that leading companies with high quality and large consumption should pay attention to alpha attribute;
Second, the long-term investment opportunities of high boom growth stocks benefit from long-term policy support + high boom + loose liquidity margin. It is recommended to continue to pay attention to the investment opportunities in the direction of high boom and high-end manufacturing, but pay attention to the changes in the micro trading structure caused by the excessive increase in the early stage.
In terms of Hong Kong stocks, it was mainly disturbed by the external stock market. The sharp decline of China concept stocks dragged down the performance of Hong Kong stock market, making the index bottom again. Basically, with the superposition of delisting of China concept shares in the United States, the previous stricter review of foreign companies by the U.S. Securities Regulatory Commission triggered concerns about China concept shares in the market, and the relevant stocks decreased significantly.
In terms of liquidity, the accelerated pace of American taper and the expectation of raising interest rates in advance have had a negative impact on the liquidity environment of short-term Hong Kong stocks. The sharp decline of general stocks in the emotional side has had a certain impact on the sentiment of Hong Kong stocks. We expect that it is difficult for short-term Hong Kong stocks to form an upward trend and will continue to maintain a wide range of shocks.
However, in the long run, the listing of zhonggai shares in Hong Kong stocks after delisting from the United States may be a more convenient and fast choice. Therefore, it will also bring more high-quality assets to the Hong Kong stock market. Superimposing the current undervalued value of Hong Kong stocks will be a favorable investment environment for value investors. It is suggested to select high-quality core assets with alpha attribute and undervalued stocks with upward boom.
Hot spot tracking: Comments on key sectors
In terms of policy, Premier Li Keqiang’s statement of “timely RRR reduction” on Friday made the expectation of RRR reduction begin to heat up. Under the expectation of loose liquidity, securities companies are expected to benefit from the A-share cross-year market brought by RRR reduction. In addition, the CSRC announced the list of 10 pilot securities companies for account management optimization. The construction of comprehensive wealth management accounts makes the head securities companies expected to further consolidate their competitive advantage in the wealth management track by virtue of their scale advantages and build “aircraft carrier” securities companies.
Basically, the profitability reached a new high. In the first three quarters, the revenue and parent net profit of 45 listed securities companies increased by 23% and 25% respectively year-on-year, maintaining high growth.
In terms of valuation, at present, pe-ttm of securities companies is 19.5 times (8.75% quantile in recent five years) and Pb is 1.75 times (47.68% quantile in recent five years). The share price of O sector has fallen by nearly 20% since the beginning of the year. The share price is not consistent with the growth of performance, so there is a certain space for valuation repair.
Under the expectation of loose market liquidity, superimposed with multiple advantages such as policy support and stable performance growth, the low-level securities companies are expected to usher in the valuation repair market, and are optimistic about the performance of the leading strong HENGQIANG and characteristic boutique securities companies.
This document puts forward the action objectives of improving the treatment rate of domestic sewage and the harmless treatment level of rural domestic waste. Combined with the “14th five year plan” for the development of urban domestic waste classification and treatment facilities issued in May this year, the overall goal of steadily improving the total incineration capacity and increasing the treatment capacity to more regions is put forward, and multiple measures are taken to promote the healthy and rapid development of the waste treatment industry.
With the opening of rural and urban markets, the release of a large number of market demand in the future will improve the marketization level and penetration of the industry and further boost the performance growth of industry companies.
In terms of valuation, the orders of leading companies increased rapidly and their performance maintained a rising stage of rapid growth, but the valuation was at the bottom of the region in recent five years, and the valuation had a strong margin of safety.
Risk tip: the stock market is risky and investment should be cautious
