The market continued to fluctuate, and institutions continued to pay more attention to the undervalued sector. Data show that as of the closing on March 15, coal, banking, architectural decoration, petroleum and petrochemical and other undervalued sectors have shown strong resilience this year. The intensive research reports of securities companies suggest the allocation opportunities of undervalued sectors.
Some institutions believe that the short-term undervalued sector may have relative returns. In addition, the varieties of the first quarterly report exceeding expectations and the portfolio of "high dividend + undervalued value" are also worthy of attention.
underestimated sector toughness sufficient
In 2022, A-Shares continued to adjust, driving the valuation of the whole market and industry sectors down. In contrast, the toughness of some undervalued sectors is prominent.
As of the closing on March 15, among the 31 Shenwan industries, the coal sector ranked first with an increase of 2.29% this year, and it is also the only sector rising; From the perspective of sector valuation, the latest price earnings ratio (TTM) of the coal sector is only 10.46 times, ranking the fifth lowest among the 31 Shenwan industries.
As of the closing on March 15, the banking, architectural decoration, petroleum and petrochemical sectors had a relatively small decline this year, and their performance was better than that of the three major A-share indexes in the same period; From the latest sector valuation, the price earnings ratio (TTM) of the above three sectors are 5.8 times, 10.3 times and 12.4 times respectively, ranking the first, fourth and seventh lowest among the 31 Shenwan industries.
Recently, a number of securities companies have published industry research reports around securities, non-ferrous metals, optional consumption, social services, transportation, commercial trade, media, communication, medicine and biology, food and beverage and other fields, which generally mentioned the layout opportunities for undervalued targets, especially those with uncertain performance. China Post Securities pointed out in the research report that the securities sector has shown a callback trend since the beginning of the year, with a high margin of safety. Considering that a number of securities companies have recently disclosed performance forecasts and express reports, which show that the performance has increased steadily, the sector is basically oriented well, and the downward trend of stock price and valuation has opened the configuration window.
focus on opportunities in segments
China Merchants Securities Co.Ltd(600999) pointed out that with the adjustment of the market and the decline of bond maturity yield, the absolute valuation and relative valuation of A-Shares have a certain cost performance, and the undervalued sector is attractive to funds pursuing absolute return; For medium-term investors, the super allocation of small cap value style has a better cost performance.
According to Wang Hanfeng, chief strategist of China International Capital Corporation Limited(601995) ( China International Capital Corporation Limited(601995) ), the market valuation is relatively low in history, which is attractive compared with other major markets, and the short-term undervalued sector may have relative gains. In terms of specific industry allocation, it is suggested to pay attention to the areas where there is room for policy development, such as infrastructure, real estate related industrial chain (building materials, construction, household appliances, home furnishings, etc.), brokerage finance, and the middle and lower reaches of the consumer industrial chain with more adjustment, low valuation and clear medium and long-term prospects in 2021, including household appliances, light industry and home furnishings, automobiles and parts, agriculture, forestry, animal husbandry and fishery, medicine and other sectors.
For the layout direction of the undervalued sector, there are two types of opportunities recognized by securities companies in the near future: one is the varieties whose quarterly results are expected to exceed expectations, and the other is the portfolio of "high dividend + undervalued value".
Citic Securities Company Limited(600030) strategy team suggests paying attention to high-quality developers, building materials and household enterprises, communication operators with significantly improved cash flow, fine chemical enterprises with new business development space such as new materials, etc. It is suggested that we focus on a variety of quarterly expected products that can be expected to be released. We can focus on disclosing the leading companies in the 1 to February data, which are better in lithium ion, photovoltaic, semiconductor, Baijiu, medicine and construction.
China Greatwall Securities Co.Ltd(002939) ( China Greatwall Securities Co.Ltd(002939) ) Wang Yi, chief strategist, pointed out that high dividend portfolios are expected to perform well. High dividends usually mean undervaluation, which can provide a margin of safety for stock prices. In the context of a better economy, the performance of the undervalued sector is expected to improve.
