Current key events:
Continuous progress in the supervision of zhonggai shares: from March 8 to 30, 2022, the SEC added 11 companies such as Baiji Shenzhou, yum China, zaiding medicine, shengmei semiconductor, Hehuang medicine, Weibo, Baidu, iqiyi, futu, Kaixin Yuanda medicine and Nocera to the relevant “identification list” in accordance with the foreign company accountability law. On April 2, 2022, the CSRC announced the provisions on strengthening the confidentiality and archives management related to overseas securities issuance and listing of domestic enterprises (Exposure Draft), so as to promote the regulatory cooperation of cross-border listing.
Hong Kong stock Internet companies actively repurchased: Alibaba, jd.com, Baidu and other large and medium-sized Internet companies have promoted the repurchase plan and actively repurchased shares. Alibaba expanded the repurchase scale to $25 billion.
Current configuration recommendations:
It is suggested to pay attention to the valuation repair opportunities of Hong Kong stocks and China concept stocks after the positive progress of China concept supervision. Industry level concerns: 1) high-quality financial, real estate and construction enterprises benefiting from steady growth measures; 2) technology Internet enterprises with strong growth and oversold valuation.
The main lines of target screening include: 1) profit selection, 2) growth selection, 3) repurchase selection, etc.
Gold stock portfolio in April:
Postal Savings Bank Of China Co.Ltd(601658) (1658. HK): a large state-owned bank that actively promotes marketization and has the most growth potential.
Greentown China (3900. HK): with the background of CCCC, the financing cost has dropped to the leading level; Active investment, land acquisition and return to the first and second tier cities, and the gross profit margin has stabilized; Accelerated turnover; Outstanding brand advantages and fast de industrialization.
China State Construction Engineering Corporation Limited(601668) International (1311. HK): new central enterprises + foreign capital background, mainland + Hong Kong and Macao market leaders, benefiting from steady growth, affordable housing and deepening integration of Guangdong, Hong Kong and Macao.
Baidu group SW (9888. HK): the valuation of the company’s car manufacturing business has not been reflected in the stock price. The company will release its first concept model in April and mass produce in 2023. At that time, the market value is expected to increase.
Ideal car-w (2015. HK): the company has excellent product power. In the future, it will layout pure electric track and power intelligent driving, with strong growth; At the same time, it has realized profit and positive cash flow, with a high margin of safety.
Kwai -W (1024.HK): the advertising system is improving cash flow, reducing efficiency, and continuously promoting leading enterprises with narrowed losses. Meituan-w (3690. HK): a local life leader with the advantages of scale effect and operation efficiency. The growth rate of takeout business is better than expected, the wine travel to the store is growing rapidly, and the new business is developing with high quality.
Shunyu optical technology (2382. HK): the leader in the optical industry, dragged down by the mobile phone business, the risk of stock price decline is released, and has great growth potential in the medium and long term.
COFCO jiajiakang (3690. HK): a new round of pig price rise cycle is about to start. The company has stable finance, low breeding cost and both attack and defense.
China Resources beer (0291. HK): the high-end strategy is clear. The price increase, high-end structure upgrading and efficiency improvement will continue to drive the company’s profit release.
Risk warning: the risk of global epidemic exceeding the expected development; Risks of increased volatility in overseas markets; Risks of unexpected changes in macro policy and regulatory environment.
