The market is light in the last week of 2017, but there are still institutions not stopping researching. According to Wind Data, as of Dec. 28, 105 institutions have researched 32 listed companies this week. Advanced manufacturing industries like semiconductor and electronics attract much attention. Industry insiders expect a slow bull in 2018 and suggest paying attentions to stocks representing the direction of economic transition, such as stocks engaged in 5G, homegrown chips and artificial intelligence.
Institutions not stop researching at year-end
The first trading day of 2018 will be ushered in next week, but dedicated institutions are still researching listed companies in the last week of 2017. Data shows that 25 publicly offered funds and 26 privately offered funds are still researching listed companies now. Funds like AEGON-Industrial Fund Management, Yinhua Fund, HFT Investment Management and Bank of Communications Schroder Fund Management are the most “workaholic” in terms of the number of listed companies being researched by them.
As to the industries being researched, over three listed companies are researched, respectively, in industries like semiconductor, electronic equipment and instrument, and iron & steel, suggesting that both publicly offered funds and privately offered funds are quite interested in companies involved in advanced manufacturing.
Besides Shenzhen Selen Science & Technology Co., Ltd. (002341.SZ) and Yongxing Special Stainless Steel Co., Ltd. (002756.SZ) which are frequently researched by publicly offered funds this week, Zhejiang Dahua Technology Co., Ltd. (002236.SZ), a leader in the artificial intelligence of security and protection, received three publicly offered funds and two privately offered funds this week. Midea Group Co., Ltd. (000333.SZ), a leading company in intelligent home appliances, is also researched by multiple publicly offered funds and privately offered funds. Well-known Shenzhen Qianhe Capital Management managed by renowned fund manager Wang Yawei turns its eyes to Unisplendour Corporation Limited (000938.SZ) involving cloud computing. Two semiconductor companies, Foshan Nationstar Optoelectronics Co., Ltd. (002449.SZ) and Jiangsu Jiejie Microelectronics Co., Ltd. (300623.SZ), are also researched by multiple publicly offered funds.
Though light market in the year-end leads to average performance of researched stocks, Unisplendour Corporation reported considerable gains this week. The stock surged over 13 percent in just three trading days ended on Dec. 28, according to the closing price on Dec. 25 when Qianhe Capital Management researched it.
Advanced manufacturing industries quite favored
In comparison with traditional manufacturing, advanced manufacturing applies hi-tech outcomes in the R&D, design, production and management of the manufacturing industry for better effectiveness. Advanced manufacturing represents new directions of economic transition and provides future investment with effective reference.
Zhang Bowei, a strategy researcher from Huashang Fund, claims that under the overall requirement of “promoting China’s industry to be part of middle- and high-end global value chain, and cultivating several world-class advanced manufacturing clusters”, investment opportunities in manufacturing sector deserve long-term attentions.
Dahua Technology, frequently researched by institutions this week, is a leader in the advanced manufacturing sector. As a leading company in the artificial intelligence of security and protection, the company hiked greatly before November this year.
Haitong Securities analyst Zheng Hongda says that with the continuous development of the "smart city" and "safe city" in China, the security filed will be at the forefront of artificial intelligence. At the company level, Dahua Technology not only slows down the expansion of manpower costs, improves management efficiency and reduces various expense ratios. It also actively deploys areas in video and intelligent security IoT platform. Meanwhile, the company continues to participate in military security operation and PPP projects. Zheng believes that the company benefits remarkably from the trend of intelligent security. Driven by multiple factors, its revenue is expected to maintain rapid growth.
Unisplendour is a leader in cloud computing. The company said in the survey that its cloud service strategy has three levels: cloud computing infrastructure construction services, cloud computing industry application solution services and cloud computing platform services. Under the guidance of its cloud service strategy, Unisplendour will vigorously extend and expand the "cloud-network-terminal" industry chain through big data. Horizontally, it will expand the industry applications in cloud computing, smart cities and mobile Internet. It will transform itself from a traditional software and information technology service provider to a comprehensive cloud service provider which will be involved in the construction, operation and maintenance of modern information system.
As for investment opportunities in advanced manufacturing, Elitimes said that the A-share market will diverge next year. If investors can grasp policy direction, it is expected to find more bullish stocks in advanced manufacturing. Yang Delong from First Qianhai Fund also believes that the A-share market will embrace a slow bull in 2018. Investors can keep an eye on new growth stocks that represent the new economic direction, such as stocks in 5G, domestic chips, artificial intelligence.
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