Today (December 30), the three major A-share stock indexes opened up and down. After the shock consolidation at the beginning of the market, the stock index swept away yesterday’s decline, gradually concussed and pulled up, showing a pulse upward trend, with a clear view of the strong pattern. From the disk point of view, the industry and concept sectors rose more or fell less, the military industry, Yuan universe, digital currency, medical devices and other sectors performed prominently, and the local profit-making effect still exists.
Haitong Securities Company Limited(600837) pointed out that near the end of the year, all parties in the market are more cautious, and new hot spots in the coming year are brewing. Therefore, there is no need to worry too much about the short-term correction. Under the background of stable growth and the surrounding loose cycle, the market as a whole still has the basis for support and boost.
Under the background of scattered A-share hotspots and intensified plate rotation, possible investment opportunities are hidden. Select some institutional research reports, and let’s see what themes are available for reference.
[theme I] military industry
Zhongtai Securities Co.Ltd(600918) said that at present, China is in a critical period of national defense modernization. The technology maturity of advanced fighters and missiles has been high. Military enterprises have greatly expanded their production to support the accelerated assembly of advanced equipment. From the perspective of capacity construction, at present, most of the capacity expansion plans in the upper, middle and lower reaches of the aviation manufacturing industry chain can fully reach the production capacity in the middle and later stage of the 14th five year plan. In the next two to three years, the industry will be in the stage of continuous investment of new capacity and accelerated release of performance. Some weapon and equipment models are accelerated, and more weapon and equipment models can be expected in the future. The industry fundamentals are expected to continue to improve. The configuration value of the military industry is prominent, and it is recommended to over configure the military industry.
China Galaxy Securities Co.Ltd(601881) securities mentioned that in the short term, the sector has the demand for the release of valuation risk, but the adjustment space is limited. At present, the valuation quantile of the military sector is about 60%, and the upper limit of valuation improvement is far from coming; In the medium term, with the continuous release of industrial capacity and downstream demand, the prosperity of the industry is expected to continue to rise; In the long run, the “Centennial goal of building the army” is nearly late, and the “Centennial change” is bound to accelerate the modernization process of our army, and the development of the industry can be expected. The “policy chain, value chain and industrial chain” drive together to build a strong engine for high-quality development of the military industry. It is recommended to optimize the track, select individual stocks from bottom to top, and recommend Avicopter Plc(600038) , Aecc Aviation Power Co Ltd(600893) , Beijing Beimo High-Tech Frictional Material Co.Ltd(002985) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Nanjing Quanxin Cable Technology Co.Ltd(300447) , Guangdong Shenglu Telecommunication Tech.Co.Ltd(002446) and Beijing Emerging Eastern Aviation Equipment Co.Ltd(002933) .
Looking forward to 2022, Soochow Securities Co.Ltd(601555) judgment: 1) the production capacity of the military industry continues to expand. With the gradual release of new production capacity of many enterprises in the industry and the superposition of scale effect under the resonance of supply and demand, the sector is expected to enter a new development stage of accelerated release of profits and its performance is expected to continue to improve; 2) The high outlook of the industry is gradually reflected from the upstream to the middle and downstream along the industrial chain, and the downstream enterprises have entered a period of accelerated performance growth. 3) From the perspective of valuation, after 2022, compared with upstream enterprises, downstream enterprises have greater flexibility to digest valuation with high profit growth. []
[Topic 2] metauniverse
New era Securities pointed out that the meta universe may be understood as the next generation Internet, which will produce different connections and experiences of time and space between people and things based on different terminals, and the ultimate form will depend on the development of technology. At present, we believe that there are several directions that can be grasped around the meta universe. First, new hardware terminals and consumer arvr devices can be compared with the situation of mobile phones; Second, the new operating system or operating platform built on arvr devices, represented by Microsoft, Google, apple, wechat and other platform companies; Third, in addition to the transferred entertainment and enterprise industrial applications, or new applications with a volume of 100 million will be generated, and the business model will be extended by changing the new interaction mode of connection and experience.
Open source Securities said that the conceptual framework of metauniverse and its representative direction of the Internet may have become a market consensus. At present, the investment layout should give more consideration to its landing path and commercialization feasibility. Based on this, we once again suggest to focus on four main lines: Open World Games and UGC game platform, virtual human, VR / Ar / MR and NFT.
Guosen Securities Co.Ltd(002736) believes that metauniverse is expected to continue to catalyze plate performance. 1) VR and other hardware equipment experience continues to improve, the price continues to decline, 5g, cloud computing, blockchain and other infrastructure are gradually mature, and the content and application ecology are also developing rapidly driven by hardware and infrastructure; 2) “Media is information”, as a more immersive and abundant media form, the meta universe will inevitably bring greater impact and reconstruction of human society and economy; With the acceleration of hardware and infrastructure, metauniverse is expected to mature at a faster speed. And bring new opportunities in platform ecology, hardware requirements, infrastructure, content form, etc; Driven by the head organization, the industrial ecology is expected to accelerate the landing and continue to catalyze the performance of the sector. []
[Topic 3] digital currency
Everbright Securities Company Limited(601788) said that the digital RMB is positioned in the legal currency, and the corresponding social supporting facilities need to be upgraded and transformed into rigid. It is suggested to pay attention to three main investment lines: with the acceleration of the promotion of digital currency and the approach of the time point of full implementation, various preparations and infrastructure upgrading will be gradually accelerated, and companies in relevant industrial chains will usher in the opportunity of accelerating development, It is suggested to pay attention to three main investment lines.
The first main line suggests paying attention to the payment hardware market. The promotion of digital currency and the implementation of barcode payment supervision and other policies will drive the iterative upgrading of payment hardware, and the suppliers of intelligent payment equipment at the receiving end and physical hardware wallet at the paying end will benefit. It is recommended to pay attention to Xgd Inc(300130) , Urovo Technology Co.Ltd(300531) , Grg Banking Equipment Co.Ltd(002152) , Wuhan Tianyu Information Industry Co.Ltd(300205) , Chutian Dragon Co.Ltd(003040) , etc.
The second main line suggests paying attention to the bank it upgrading and transformation market. Banks play a great role in the issuance and trading of digital RMB. Due to their legal currency positioning, banks need to upgrade their systems to meet the trading needs of digital currency in the future. There is a huge market space for bank it transformation. It is suggested to pay attention to Shenzhen Sunline Tech Co.Ltd(300348) , Tansun Technology Co.Ltd(300872) , Guangzhou Kingteller Technology Co.Ltd(002177) , Chase Science Co.Ltd(300941) , Client Service International Inc(300663) , Jiangsu Hoperun Software Co.Ltd(300339) .
The third main line suggests paying attention to the promotion and scenario service companies serving digital RMB. Specifically, third-party payment services and acquiring companies will also benefit from the implementation of digital currency. It is suggested to pay attention to Lakala Payment Co.Ltd(300773) , Xgd Inc(300130) and Hyunion Holding Co.Ltd(002537) .
Orient Securities Company Limited(600958) mentioned that blockchain is the preferred technology for central banks’ digital currency. With the help of blockchain technology, CBDC (central bank digital currencies) can incubate a variety of advantages. Blockchain technology comes from bitcoin, and central banks are mainly cautious and exclusive of cryptocurrencies represented by bitcoin. Although the decentralization of blockchain technology conflicts with the centralized management of the central bank, blockchain technology can still be effectively used in the relevant development and management links of CBDC. We believe that CBDC can help the central bank to improve the competitiveness of its legal currency, suppress the circulation of cryptocurrency and improve the central bank’s financial control ability. With the help of the blockchain technology of cryptocurrency, CBDC improves its ability to prevent crime and promote inclusive finance, so as to ensure the central bank’s ability to control money in the digital age. []
[Topic 4] medical devices
Guolian Securities Co.Ltd(601456) said that the global pharmaceutical manufacturing capacity migrated to China, and China’s cdmo field grew rapidly. Covid-19 virus continues to mutate under the global epidemic, and the epidemic prevention and control in China is good, ensuring the continuous supply of manufacturing capacity. CXO, especially cdmo, has stronger stability in supply, undertaking delivery and quality. We believe that the signing of large orders by leading enterprises (such as small molecule covid-19 oral medicine) will occupy the production capacity, overflow some conventional orders to other cdmo enterprises, boost the industry performance in the short term and improve the industry status in the long term.
In the post epidemic era, there is a strong demand for medical infrastructure, and medical equipment infrastructure is the first force. Global basic public health construction is generally insufficient, and medical infrastructure planning in the post epidemic era has been put on the agenda. Since 2020, the issuance of medical related bonds in some provinces of China has accelerated the layout of China’s medical infrastructure. In addition, overseas countries represented by Spain, France and Italy have also launched corresponding new medical infrastructure schemes, which is expected to stimulate the demand of the medical device industry.
AVIC securities mentioned that based on the judgment of short-term fluctuation and repeated uncertainty of covid-19 epidemic situation, it can continue to pay attention to the investment opportunities of covid-19 prevention and control industry chain in the short term, including covid-19 oral drugs, vaccines and antibodies, as well as the listed companies deeply involved in covid-19 prevention and control drug supply chain. At the same time, with the confirmation of the end of economic policy and the arrival of a new round of stable growth cycle, the trend of market consolidation and recovery has been established, and the market focus may focus on the sectors with marginal improvement and valuation repair logic. It is suggested to continue to pay attention to the undervalued value with consumption attribute, and the growth and valuation of traditional Chinese medicine will dynamically match to a reasonable range in a period of time, At the time point when the valuation switching is gradually approaching, the advance layout needs to pay particular attention to the marginal improvement and the sustainability of growth. []
