On the morning of April 22, China Europe Fund released the first quarterly report of its funds in 2022.
Zhou Weiwen added new energy, technology, etc., reducing the allocation of consumption and other industries. Ge Lan’s position changed slightly in the first quarter, and the management scale shrank to 96 billion yuan. Cao Mingchang continued to maintain the undervalued strategy.
On the whole, Zhou Weiwen is not pessimistic about the future and looks for two types of investment opportunities along the main line of “alpha for good industries and beta for industries with reversed difficulties”. Cao Mingchang regards infrastructure and real estate as an important starting point for steady growth, and is optimistic about real estate, infrastructure, finance, optional consumption and other industries with low valuation and close relationship with the macro economy. Ge Lan is still optimistic about the medium and long-term investment opportunities in the pharmaceutical and biological sector, but short-term market fluctuations are inevitable, and will continue to strive to create long-term investment returns for holders.
Zhou Weiwen: optimistic about the industry with sustained prosperity and reversal of difficulties
Zhou Weiwen’s representative work, China Europe new blue chip, reduced the position of the consumer industry and increased the allocation of new energy and technology in the first quarter, but still maintained a balanced allocation mode. The proportion of the top ten heavy positions in the net assets of the fund is still not high. Compared with last year’s heavyweight stocks, Xiamen Faratronic Co.Ltd(600563) , Muyuan Foods Co.Ltd(002714) , Luxshare Precision Industry Co.Ltd(002475) , Cosco Shipping Energy Transportation Co.Ltd(600026) , Songcheng Performance Development Co.Ltd(300144) , Luzhou Laojiao Co.Ltd(000568) , Fuyao Glass Industry Group Co.Ltd(600660) , Hengli Petrochemical Co.Ltd(600346) withdrew from the list of the top ten heavyweight stocks in the first quarter.
Top ten heavyweight stocks of China EU new blue chip
Source: first quarterly report of the fund
“After adjustment, the market is not pessimistic about the future.” Zhou Yuwen analyzed three main reasons in a quarterly report: first, a considerable part of the adjustment of the track has basically been completed, and the foam has been very small. Second, in the past two or three years, the stock prices of many excellent companies in the sector have risen very little. After the industry boom bottoms out, it will usher in an improvement and gradually appear investment opportunities; Third, although the world is facing liquidity tightening, the previous policies of the Central Bank of China are more forward-looking, and there is room for loose monetary policy, which is relatively favorable.
Based on this, Zhou Weiwen said that he would look for two types of investment opportunities along the main line of “alpha for good industries and beta for difficult industries”. The first category is the industries that will continue to prosper in the coming years. For example, the valuation of new energy, photovoltaic, military and other industries is not low, but the fundamentals of subdivided sectors will be differentiated. The fund will select segments with positive changes in Fundamentals for allocation. The second category is the dilemma reversal industry. The share prices of these industries are low, and there is uncertainty in short-term operation. However, from the perspective of about two years, the probability operation will return to normal. The representative industries include breeding, catering, tourism, media, real estate, etc.
Cao Mingchang: steady growth for a long time is the main direction
infrastructure and real estate is an important starting point
As a representative of value investment, Cao Mingchang’s stock position is basically stable, and the top ten heavyweight stocks have little change. Taking the value discovery of China Europe as an example, compared with the end of last year, the top ten heavyweight stocks only added Huaibei Mining Holdings Co.Ltd(600985) , while Qumei furniture withdrew from the top ten.
Top ten heavyweight stocks of China EU value discovery
Source: first quarterly report of the fund
Cao Mingchang pointed out in the first quarterly report that there are two reasons for the serious differentiation of the current market: one is the return of undervalued value, and the other is that the stable growth environment is more conducive to the development of undervalued industries such as real estate infrastructure.
Looking ahead, Cao Mingchang said that stable growth will be the direction of policy support for a long time in the future, and infrastructure and real estate are important starting points for stable growth. In such a macro environment, those industries with low valuation and close relationship with the macro economy, such as real estate infrastructure finance and optional consumption, may perform well. The opportunities for growth stocks may not gradually appear until steady growth has achieved a certain effect.
Glenn: medium and long-term excellent companies are expected to resume the growth trend
In the first quarter, Glenn’s stock position changed little. Taking its representative work China Europe medical health as an example, compared with the end of last year, only Chongqing Zhifei Biological Products Co.Ltd(300122) , and Kyushu pharmaceutical withdrew from the top ten heavyweight stocks of the fund.
Top ten health stocks in Central Europe
Source: first quarterly report of the fund
The top ten positions of China Europe alpha are more stable. Compared with the end of last year, there is only an adjustment in order, and there is no position adjustment and stock exchange.
China Europe alpha top ten heavyweight stocks
Source: first quarterly report of the fund
At the end of the first quarter, Ge Lan’s management scale was 96.1 billion yuan, a decrease of 14.2 billion yuan compared with the end of 2021. It is worth noting that the quarterly report shows that China Europe Fund has subscribed in batches for a total of more than 9.7 million China Europe medical and health funds from January 27 to February 11. The company also subscribed for about 12.7 million China Europe medical innovation funds on January 27, with a total transaction amount of more than 50 million yuan.
Looking to the future, Glenn said that innovation related markets are far from reaching the ceiling of the Chinese market, and overseas markets are gradually accumulating strength. Specifically, at the company level, the trend of enterprise transformation and innovation is still continuing, and the number of clinical applications for innovative drugs has reached a new high year by year. In terms of innovation quality, in recent years, the overall layout of R & D pipelines has become more rational, resources are inclined to differentiation, and even innovative varieties with global competitiveness have been born.
According to Glenn, from the perspective of early clinical pipeline, on the one hand, relevant molecules following the latest overseas technologies are emerging rapidly, on the other hand, the variety layout is more diversified, and these changes are expected to maintain the long-term prosperity of innovation. With the gradual advancement of overseas clinical, it is expected that Chinese innovative products will gradually enter the harvest period overseas.
At the same time, China’s innovative drug service enterprises have gradually formed a globally competitive industrial cluster, reaching a global leading level in some segments. In addition, the competitiveness of relevant service providers is more reflected in the technology and management ability of the platform. The market share of leading enterprises will continue to improve and maintain their high prosperity. “With the rapid improvement of per capita income and cognitive level of Chinese residents, the demand for medical services and consumer medicine is still growing rapidly and not fully met, and there is still huge space in the future.”
Below 100 billion! Zhang Kun is also anxious behind the overall withdrawal of the position adjustment trend with a management scale of 84.928 billion: stocks are like unpredictable weather, difficult in the short term but optimistic in the long term
“Top flow” latest warehouse adjustment! Liu Gesong and Fu Youxing are optimistic about the structural market in the second quarter
Increase the warehouse of Maotai on a large scale! 50 billion top flow Li Xiaoxing, half of the heavyweight stocks “exchange blood” balanced allocation of consumer technology in the first quarter
Exposure of warehouse adjustment in the first quarter! Ge Lan’s holdings of Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , gf’s top current targeting Sungrow Power Supply Co.Ltd(300274) Yang Jinjin and Han Chuang “reappear differences”
Zhu Shaoxing’s first quarterly report: jiacang Wuxi Apptec Co.Ltd(603259) , Luxshare Precision Industry Co.Ltd(002475) , Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271)
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