On April 20, Shanghai and Shenzhen A shares continued to adjust, among which the gem index hit a year low of 235791 with a decline of 3.66%. It is noteworthy that the “first brother of gem” Contemporary Amperex Technology Co.Limited(300750) fell sharply. As of the close of the day, “ningwang” closed at 407 yuan with a decline of 7.55%, a new low since 2022.
At the same time, the new energy sector is in the doldrums as a whole, and several new energy track stocks hit new lows during the year. For example, Sungrow Power Supply Co.Ltd(300274) plummeted by 20cm, and the share price also hit new lows during the year; Another track stock, Kechuang board company Jiangsu Goodwe Power Supply Technology Co.Ltd(688390) fell 13.87%, and its share price was also at a recent low.
New energy track stocks used to be a banner of the market. If the core asset stocks represented by Kweichow Moutai Co.Ltd(600519) in previous years are the world, the new energy track stocks represented by Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) are undoubtedly performing brilliantly in recent two years Kweichow Moutai Co.Ltd(600519) has driven the whole Baijiu sector to rise, while Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) have promoted the rise of new energy track shares. In this regard, Contemporary Amperex Technology Co.Limited(300750) is undoubtedly a very typical representative.
For example, Contemporary Amperex Technology Co.Limited(300750) hit a low of 63.4 yuan on June 11, 2019, and its share price reached 692 yuan on December 3, 2021. In just two and a half years, the increase was as high as 10 times, and its performance was far better than Kweichow Moutai Co.Ltd(600519) . The proposal of targets such as carbon neutralization and carbon compliance, and the adjustment of core asset stocks have led to the new energy track becoming a “hot pastry” in the market. From another point of view, A-Shares have always been speculation “new” complex. As a new concept and theme of the market, coupled with strong policy support, it is not surprising that new energy track shares are sought after by the market. As the “leader”, the Contemporary Amperex Technology Co.Limited(300750) share price has also continuously hit a historic high.
On April 20, the share prices including Contemporary Amperex Technology Co.Limited(300750) , Sungrow Power Supply Co.Ltd(300274) and others hit new lows in the year, which is just a microcosm of the recent trend of new energy track stocks. For example, the relevant indexes and funds of the new energy sector have fallen by 30%, which objectively means that the relevant sectors and funds have fallen into a “technical” bear market.
Generally speaking, since the middle of December 2021, the Shanghai and Shenzhen stock markets have begun to adjust. Even as a new track stock in the market, it will also be affected by the general trend, which has been proved by the market many times. In particular, after March, the market adjustment will be further intensified due to the superposition of geopolitical tensions and other factors. All this will undoubtedly have a negative impact on the new energy track stock and lead to the decline of stock price. In fact, it is reasonable.
From the performance of individual stocks, after the hot rise in the early stage, the decline has appeared. For individual stocks, falling more will rise, rising more will fall. Even Kweichow Moutai Co.Ltd(600519) , we can’t jump out of such a “strange circle” The Kweichow Moutai Co.Ltd(600519) share price has accelerated since 2016, with a maximum increase of more than 17 times. However, after reaching a high of 260859 yuan, its share price has also entered a deep adjustment Contemporary Amperex Technology Co.Limited(300750) has risen too fast in the past two years, and the stock price adjustment is also a normal phenomenon.
Moreover, at present, the market has begun to have differences over new energy track stocks. For example, the Shanghai Putailai New Energy Technology Co.Ltd(603659) 2021 annual report of the battery industry shows that many public funds have entered the list of the top ten circulating shareholders. The first quarterly report shows that the public offering in and out is obvious. For example, the proportion of position reduction of ABC Huili new energy theme in the first quarter was more than 13%, the proportion of position reduction of Huaxia energy innovation was more than 5%, and the proportion of position increase of Xinda Aoyin new energy industry was close to 5%. The entry and exit of public offering highlights its differences on new energy track stocks, which will also have a negative effect on its stock price.
In addition, the sluggish performance of new energy track stocks is also related to factors such as the continuous epidemic, chip tension and the sharp rise in the price of upstream raw materials. For example, the shortage of chips leads to the lack of production capacity of new energy vehicles, which will inevitably affect the electric vehicle battery industry. The sharp rise of upstream raw materials will compress the profit space of Listed Companies in the new energy track, resulting in the decline of their investment value.
Of course, the current decline of Contemporary Amperex Technology Co.Limited(300750) share price does not mean that new energy track stocks have ushered in a cold winter. In fact, due to the need to protect the environment and the demands of realizing carbon neutralization and carbon compliance, the listed companies of new energy track have a very broad prospect. The current decline has also created conditions for long-term capital investment in new energy stocks. After the industry reshuffle and eliminating the false and preserving the true of individual stocks in the sector, it is expected that the share prices of new energy track stocks, including Contemporary Amperex Technology Co.Limited(300750) etc., will usher in spring again.
