Medicine
Market review: in this period, the pharmaceutical industry rose by 1.08% as a whole, while the Shanghai and Shenzhen 300 fell by 0.94% in the same period, which was stronger than the market as a whole.
Investment suggestion: it is suggested to pay attention to covid-19 prevention and control related enterprises.
Risk tip: the epidemic development exceeded expectations.
In the current period, the bank (CITIC) index fell 0.17%. Compared with the macro disturbance, we pay more attention to the improvement of the “internal strength” of the industry. It is considered that the extremely low valuation level of the current banking sector fully reflects the pessimistic expectations of the market on the credit risk exposure and macroeconomic downturn of the real estate industry. At the same time, considering the good performance growth and continuously improved asset quality of the bank, it is considered that the current sector has high allocation value and maintains the investment rating of “stronger than the market” of the industry. It is suggested to focus on the head state-owned banks and joint-stock banks with solid asset quality, as well as the head urban commercial banks and rural commercial banks in regional economically developed areas.
Risk tip: the asset quality has deteriorated significantly, resulting in systemic risk.
Media
In the special meeting of the financial stability and Development Commission of the State Council held on March 16, it was particularly mentioned that “prudent introduction of contractionary policies”. In the past few years, cultural and entertainment, education, Internet and other sectors have faced great regulatory pressure. We believe that the cautious introduction of contractive policies can alleviate the market’s concern about the uncertainty of future regulatory policies to a certain extent and boost market confidence. The special meeting also provided relevant guidelines for the supervision and governance of the platform economy, followed the principle of seeking progress while maintaining stability, and promoted the rectification of the platform company through standardized, transparent and predictable supervision, so as to promote the stable development of the platform economy.
We believe that a number of statements made at this meeting have driven the improvement of market sentiment and reduced market concerns about regulatory policies. It is recommended to pay attention to the distribution process of the game version number. However, the recurrence of the current epidemic may still have a certain impact on the offline film market and advertising in the short term. In the medium and long term, with the emergence of the effect of the dynamic clearing and epidemic prevention policy and the continuous decline of the current severe situation and mortality, the influencing factors caused by the recurrence of the epidemic are expected to gradually weaken.
Risk warning: the risk of international political turmoil; The risk of repeated outbreaks and virus mutation; The tightening of regulatory policies exceeded expectations; Intensified market competition; Goodwill impairment risk; The quality of output content is lower than expected; The characteristics of project system lead to unstable performance.
Electronic
The current electronics (Shenwan) index fell by 1.33%, underperforming the Shanghai and Shenzhen 300 index (- 0.94%) in the same period, ranking 12th among 31 Shenwan level industries. From a long-term perspective, the demand for 5g + alot, automotive electrification and intelligence, VR / AR, smart home and other application fields will continue to grow. In addition, due to the complex changes in the current international economic and political situation, there is an urgent demand for domestic substitutes in the upstream of chips, electronic devices, raw materials and so on. It is suggested to pay attention to the fields of semiconductor equipment, semiconductor materials, automotive electronics and passive components (MLCC, PCB).
Lithium battery
The current lithium battery index rose 0.92%, outperforming the Shanghai and Shenzhen 300 index. The Shanghai composite index is expected to fluctuate upward in the short term. Combined with the prosperity of the industry and the trend of the sector, the short-term lithium battery sector continues to see a rebound, focusing on the high-quality targets with undervalued value in subdivided areas and determined performance growth.
Risk warning: systemic risk; The price of raw materials fluctuates greatly; The sales volume of new energy vehicles is lower than expected; Industry competition intensifies
