Towards the end of the year, institutional investors are making frequent moves and are preparing for next year's investment layout through extensive research. When it comes to the market next year, industry insiders said that the valuation risk of A-shares has been fully released, and 2024 may usher in mean reversion, specifically optimistic about artificial intelligence, semiconductors, innovative drugs and other technology growth sectors.
Recently, institutions have frequently investigated listed companies to invest and explore opportunities. According to Choice data, as of December 21, 574 listed companies have been surveyed by institutions since December. Among them, there are more than 1,000 surveys conducted by private equity institutions and more than 3,000 surveys conducted by public offering institutions.
Specifically, listed companies such as New Hope, BESTORE, Zelgen Pharmaceutical, Obi Zhongguang, Xinyuan Micro, and Xiechuang Data have received more attention, and they have attracted more than 100 institutions for research.
Since December, Xiechuang Data, a company in the consumer electronics sector, has held two investor exchange activities, including public and private equity institutions such as Dacheng**, Huaxia**, Nanfang**, Penghua**, Yunzhou Private Equity, Cactus Private Equity, Juming Investment, as well as trust companies such as Huaneng Trust, Shanghai Trust, and Lujiazui Trust.
Xiechuang data said that the company has mastered a number of core technologies in the fields of hardware and structural design, information transmission, etc., including automatic focus technology, voice control technology, soft light sensitive technology, camera low power consumption technology, motion detection technology, Internet of Vehicles mileage accurate calculation technology, wireless wifi calibration and testing technology, 360-degree non-jamming rotation technology of moving head camera, etc., which are at the leading level in the domestic industry.
In addition to paying attention to the company's R&D level, the future growth space of the company's core business is also a topic of concern for institutional investors.
Inovance, a robotics company, has recently held a series of investor exchange activities, which have attracted the attention of public and private equity companies such as CEIBS, Wells Fargo, Bank of Shanghai, Jingxi Investment, and Qushi Investment.
When asked whether there are bottlenecks in the future development of the company's servo and inverter business, Inovance Technology said that there is still enough room for growth in this field, and its share is mainly driven by the continuous improvement of the competitiveness of the company's products and solutions, as well as the overall localization dividend. In addition, the company's market share in the discrete market and the project-based market is relatively low, and in recent years, it has been continuously strengthening its expansion efforts in these two markets, and overseas markets are also the focus of expansion.
Looking ahead to next year, institutions are generally cautiously optimistic.
Wan Kaihang, chief investment officer of Starstone Investment, said that mean reversion will be a key driver for A-shares in 2024. On the one hand, the start of profit recovery will support enterprises to reflect actual value. In the third quarter of 2023, the year-on-year profit growth rate of listed companies will turn from negative to positive, and with the counter-cyclical policy and the strengthening of demand-side improvement, the performance of enterprises with stock advantages is expected to improve quarter by quarter. On the other hand, the current valuation risk of A-shares has been fully released, and as the overseas dollar siphon effect is coming to an end, the convergence of interest rate differentials between China and the United States will promote the reversion of asset pricing to the mean, and domestic advantageous assets have better allocation value.
Qinmu Assets said that it tends to make a layout from the perspective of spring restlessness, and it has become a trend to switch to the kinetic energy of the technology growth sector, so the current adjustment of the growth industry is an opportunity, focusing on domestic substitution and recovery logic, and it is expected that these areas may be the main battlefield of the market. Looking ahead to 2024, the investment opportunities exist on the one hand, in the many industrial chain opportunities driven by the bottoming out of the economy, and on the other hand, in the resilience brought about by the reopening of the technology cycle.
From the perspective of investment direction, Wan Kaihang said that it will focus on the two major directions of "strong spear" and "hard shield". From a long-term perspective, growth industries with technological breakthroughs and market breakthroughs will be an important engine for domestic economic growth. Domestic technology leaders still have a lot of room for growth compared with their overseas counterparts, and they are the "strongest spears" in their portfolios, such as high-quality companies in the fields of medicine and technology.
From a medium-term perspective, the biggest attraction is mean reversion. Wan Kaihang believes that in the past three years of market adjustment, the core assets of A-shares with pricing power have generally digested the valuation, and the profit has already bottomed out, and the potential return space is large. This is the "strongest shield" in the portfolio, including service-oriented consumption, media and the Internet.
Original**: Shanghai **Daily.