Today (April 29), after the Shanghai and Shenzhen stock markets opened slightly higher, the overall trend of early trading was weak. Near noon, the stock index showed a wave of upward performance. In the afternoon, the three major stock indexes further rose, especially the gem index.
On the disk, the general rising market reappeared, white horse consumption rose, commercial department stores, cultural media, household appliances, automobiles and other sectors broke out, and other industries and concept sectors also joined hands to do more, with a sharp rise in local profit-making effect. In addition, education, meta universe, hepatitis concept and other targets also have a strong trend. It is worth mentioning that medicine, engineering construction and other sectors continue to “demon shares”. As of press time, Shandong Xinhua Pharmaceutical Company Limited(000756) has achieved 6 boards in 8 days and Zhejiang Construction Investment Group Co.Ltd(002761) 4 connected boards.
Xiangcai securities previously pointed out that at present, the market has entered a sensitive period, and both the point and time belong to a more sensitive cycle. After the short-term index continues to fluctuate, the post holiday market is expected to gradually usher in the band rebound market. Due to the inherent high elasticity of the gem, it is more likely to become the main force of the rebound in the future.
At present, under the background of scattered A-share hotspots and intensified sector rotation, possible investment opportunities are hidden. Select some institutional research reports. Let’s see what themes are available for reference.
[theme 1] Education
Guosheng securities mentioned that the new vocational education law was passed and will come into force on May 1, 2022. The new vocational education law continues to support and encourage enterprises to participate in vocational education, which helps to cultivate high-quality technical and skilled talents close to industrial development.
Clarify China’s vocational education system and emphasize the equal importance of vocational education and general education. The new vocational education law specifies that China’s vocational education system includes vocational school education and vocational training. Among them, vocational school education is divided into secondary and higher vocational school education. Vocational training includes pre employment training, on-the-job training, reemployment training and other vocational training. In addition, the new vocational education law emphasizes that “vocational education is an education type with the same important status as general education” and promotes the “mutual integration of vocational education and general education”, aiming to improve the social recognition of vocational education and promote the high-quality development of vocational education.
From the perspective of investment suggestions, the institution further analyzed that the new vocational education law lays a solid legal foundation for building a modern vocational education system with Chinese characteristics, continues the state’s encouraging attitude towards vocational education since 2019, and further benefits the academic vocational education and vocational skill training sector. The core recommends the leading targets of private higher education and vocational education segments. The core recommends China Oriental Education, China Education holding, hope education, Jiangsu Chuanzhiboke Education Technology Co.Ltd(003032) , and pays attention to Yuhua education, Gaoxin education group, Neusoft education, China Science and technology training and Zhonghui group.
[Theme 2] commercial department stores
Previously, Everbright Securities Company Limited(601788) said that looking forward to the future, due to the impact of the epidemic, we expected the operation of Listed Companies in March to be unsatisfactory. However, with the gradual improvement of the epidemic situation in the future, the optional products will gradually recover. In particular, some department store stocks with low price to book ratio will have certain flexibility. In view of the overall consumption capacity of first tier cities is better than that of second and third tier cities, we first promote the Department Store Leader of first tier cities. Due to the impact of the epidemic, the sales data of gold jewelry sector in March 2022 may perform poorly, but from the perspective of the whole year of 2022, gold jewelry is still a relatively optimistic sub sector.
China Galaxy Securities Co.Ltd(601881) securities mentioned to pay attention to the potential impact of the recent repeated epidemic and the expected performance of the May Day holiday, and maintain the recommended high-quality target. For e-commerce and agent operation sectors: the war report of Jingdong home and Jingdong 415 local shopping festival was released. During the promotion period, the one-day sales of FMCG category reached a historical peak; The sales of mother and baby, vegetables, pets, home, computer digital, mobile phones, household appliances and other categories have more than doubled year-on-year; Supermarket merchants also continued to make efforts in the promotion Guangzhou Ruoyuchen Technology Co.Ltd(003010) issue the annual report of 2021 and the first quarter report of 2022 Nanji E-Commerce Co.Ltd(002127) issue the annual report for 2021.
Other chain sectors: Vats Liquor Chain Store Management Joint Stock Co.Ltd(300755) released the report for the first quarter of 2021. The company’s operating revenue increased, mainly due to the continuous expansion of Huazhi fidelity chain brand effect, grasping the market demand, better coping with the epidemic situation, orderly marketing scheduling, significant improvement in market response ability and operation efficiency, and continuous improvement in the distribution capacity of chain stores, The continuous increase in the number of direct supply terminal outlets is caused by the continuous and substantial increase in operating revenue.
Supermarket sector: Gaoxin retail issued a profit warning. In the face of many uncertain market factors and macro factors, Gaoxin retail continued to build its stores into “offline experience center and online performance center”, adhered to the strategy of “multi industry and all-channel development”, and focused on its own ability construction, improved commodity power and built the ability of fresh supply chain; Pay attention to the supply enterprises New Hua Du Supercenter Co.Ltd(002264) release the report on the implementation of major asset sales and related party transactions.
[Topic 3] covid-19 drugs
Guolian Securities Co.Ltd(601456) mentioned that China’s epidemic prevention and control will still be the focus of market attention and investment is relatively active. We suggest to focus on the research and development progress of domestic covid-19 drugs and companies related to covid-19 detection industrial chain. Affected by the epidemic, the post epidemic construction is worth considering. It is suggested to continue to pay attention to the progress of new medical infrastructure, which is expected to increase the supply of high-quality medical resources and become the core driver of the industry. In addition, the results of the first quarter will be announced one after another. The epidemic may interfere with the performance of relevant companies. It is recommended to pay attention to companies with deterministic growth in the first quarter. Vaccine and CXO related industrial chains are still sectors with high growth, so it is recommended to continue to pay attention.
In addition, Everbright Securities Company Limited(601788) pointed out that at present, domestic covid-19 specific drugs with advanced research and development progress include RdRp inhibitor vv116, azvudine and AR inhibitor prochloramide, while domestic 3clpro inhibitors with the same target as paxlovid are mostly in the approved clinical or preclinical stage. Based on the changes and invariance of pharmaceutical investment, we believe that we should actively grasp the investment opportunities in the direction of innovation and internationalization in the future. In terms of innovative drugs and vaccines, Rongchang Biology (H) is recommended; For CXO, recommend Pharmaron Beijing Co.Ltd(300759) , Pharmablock Sciences (Nanjing) Inc(300725) ; In the field of equipment and Life Sciences, it is recommended that Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Shinva Medical Instrument Co.Ltd(600587) , Amoy Diagnostics Co.Ltd(300685) ; In terms of innovative cutting-edge technologies, pay attention to unlisted enterprises such as Aibo biology; For domestic consumption, we recommend Jinxin reproduction (H), Lbx Pharmacy Chain Joint Stock Company(603883) , Shandong Wit Dyne Health Co.Ltd(000915) , Boya Bio-Pharmaceutical Group Co.Ltd(300294) .
Guosen Securities Co.Ltd(002736) said that the performance of the pharmaceutical industry in the first quarter continued the main line of covid-19 epidemic, and we expect the vaccine and covid-19 testing business to maintain a high-profile growth; At the same time, the CXO industry will also benefit from the transfer of the global industrial chain and continue to grow rapidly. The cdmo business related to covid-19 drugs will also bring greater performance increment to relevant companies.
The agency further analyzed and focused on covid-19 main line and high-quality stocks with reasonable valuation. Covid-19 epidemic is still the biggest main line in the pharmaceutical sector. It is suggested to pay attention to the detection, small molecule drugs, traditional Chinese medicine, vaccines and other sectors related to the epidemic. In addition, the early correction range of some high-quality stocks is large, and the valuation has been quite attractive. It is suggested to make a positive layout.
[theme 4] project construction
China Merchants Securities Co.Ltd(600999) mentioned that at present, the cost side is still high and the delivery is affected by the epidemic. The profitability of the consumer building materials sector is still under pressure in the short term. We continue to wait for the fundamental turning point. Considering the resumption of work after the epidemic is alleviated and the early price rise is transmitted to the terminal, we pay attention to Q2 or the turning point. In the medium term, the risks of the real estate chain are gradually released, and the room for the rise of raw material prices is limited. With the enhancement of the scale effect of high-quality leaders (national capacity and channel construction), channel reform (overweight small B or C), product structure optimization (category expansion or system integration), the endogenous growth momentum still exists, and the impact brought by upstream and downstream industrial factors may be gradually weakened. In the long run, the clearing of the consumer building materials market will be accelerated, the industry concentration will continue to improve, and the competition pattern will be further optimized. Continue to recommend the leader of the first echelon of the strong HENGQIANG, and pay attention to the dilemma reversal of the second tier leader who underestimates the value.
In addition, Gf Securities Co.Ltd(000776) said that they are optimistic about the recovery of infrastructure investment in 2022. In terms of companies, it is suggested to pay attention to several main lines: (1) undervalued construction central enterprises: China State Construction Engineering Corporation Limited(601668) , with high dividend rate and real estate business valuation and repair space; Q1 order exceeds the expected China Railway Group Limited(601390) ; China Communications Construction Company Limited(601800) , with more BOT assets; (2) Building transformation: Transformation of green power operation Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) and transformation of chemical industry China National Chemical Engineering Co.Ltd(601117) ; (3) High growth local state-owned enterprises: focus on Anhui Construction Engineering Group Corporation Limited(600502) etc; (4) Steel structure: it is expected that the prosperity will continue to improve, such as the steel structure processing leader ( Anhui Honglu Steel Construction(Group) Co.Ltd(002541) ) and Changjiang & Jinggong Steel Building(Group)Co.Ltd(600496) , Zhejiang Southeast Space Frame Co.Ltd(002135) with new breakthroughs in BIPV.
Soochow Securities Co.Ltd(601555) pointed out that the central bank had issued 23 anti epidemic financial measures to give advanced support to real estate, urban investment and construction enterprises. In March, infrastructure continued to rise. Although the downward trend of real estate has not been reversed, the positive effects are accumulating. From the perspective of Zhengzhou, which relaxed significantly earlier, the transaction data has not been significantly reflected, and the forward-looking indicators such as the volume of views have been significantly improved. We believe that due to the impact of the epidemic and inflation, the recovery of fundamentals may be slow and tortuous, but the gradual recovery of performance growth in the next four quarters is a high probability. As a core variety in the investment chain, building materials need more attention, whether it is cyclical or growing.
