In the capital market, we often hear the term "value investing", but what is real value? Is it those ** stocks with a market value of tens of billions or hundreds of billions? The answer is clearly not. The real value is often hidden in those small and mid-cap companies that are temporarily ignored by the market but have the potential for sustained growth. Recently, due to tight market liquidity, small market capitalization** has generally suffered indiscriminately**, which gives us a rare opportunity to look for those targets that have been wrongly killed and have long-term growth potential.
We have sorted out the 31 over-falling targets that have recently adjusted their market value to below 5 billion. But among these 31 targets, not all of them are worthy of our attention. We need to screen out companies with stable performance, clear industry trends, and long-term growth potential. Therefore, we further screened and selected 9 companies as the first recommendation. These 9 companies can be divided into two main categories: those with particularly low valuations and those with real growth companies that are accelerating industry trends.
For companies with particularly low valuations, our main focus is on their profitability and valuation levels. For example, although Zhenjiang shares have a small market capitalization, its profitability in the United States stent foundry business is strong, and future shipments are expected to continue to grow. With its cost-effective advantages and overseas channel advantages, INVT continues to increase its volume in the inverter market. Keller and Yangdian Technology have a high market share and profitability in their respective segments.
For real growth companies with accelerated industry trends, we pay more attention to the industry prospects they are in and the company's competitive advantages. As a leading enterprise of small magnesium alloy products, Xingyuan Zhuo Magnesium is expected to greatly increase its profitability in the future with the decline and volume of upstream magnesium prices, as well as the continuous expansion and upgrading of the company's own products. Shangsheng Electronics benefits from the trend of intelligence and vehicle configuration upgrades, and the value of acoustic bicycles is expected to increase exponentially. Flextron Electric and Yuanli have obvious competitive advantages and market share in the field of industrial control and new energy materials. As a leader in HJT technology, Liansheng Technology has high profitability and market share in both domestic and overseas markets.
In summary, sustained performance growth is one of the most important factors in investment. In the current market environment, looking for small and mid-cap companies with long-term growth potential that have been wrongly killed is undoubtedly an investment direction worth paying attention to. However, it should be noted that investment is always accompanied by risks, and investors must fully research and analyze the company's fundamentals and market conditions when making investment decisions to ensure the safety and return of investment.
A shares