thlsu.com.

After a series of sharp increases, the A-share market has welcomed adjustments, staging a "roller coaster" style of violent fluctuation trends. Industry insiders have their own opinions, some advise everyone to stay calm, while others believe that the current situation is just a trial run. After all, it takes ten years to sharpen a sword, the bull market of 2014 was about ten years apart from the bull market of 2005, and in 2024, another ten years have passed, and there is no lack of possibilities for the market to repeat history.

Regardless of the rise and fall, since this round of the market, institutional investors have added positions or increased holdings in some favored targets. There are also some companies being "watched" and researched by major institutions. The industry focuses more on fields such as TMT, power equipment, pharmaceuticals, and mechanical equipment.

Does the A-share market still have at least 10% rebound space in the short term?

Since the end of September, under the care of policy warmth, the A-share market has embarked on a rapid recovery trend, but since the correction on October 9, the index has shown a fluctuating trend of interlaced rises and falls.

Advertisement

However, the mainstream market view still mostly looks good at the opportunities for Chinese assets in the future. "The light boat has passed thousands of mountains" is the summary of recent A-shares and Hong Kong stocks by Zhang Yidong, the global chief strategist of Xingye Securities.

Zhang Yidong said that everyone should have firm confidence in China's capital market and not set limits on the time and space of the rising market. Before the reversal logic ends, it is possible to rise to where and when it rises. As for fluctuations, the earlier they come, the better, because the later the fluctuations come, the more injured the latecomers are, which is not conducive to the better development of the market.

At the same time, foreign capital's attention to China's stock market is also continuously increasing. For example, the well-known investment bank Morgan Stanley said in a research report released recently that the policy shift exceeded its expectations, including strong monetary easing, unprecedented liquidity tools to boost the stock market, and a rare statement on the "stabilization and recovery" of the real estate market. It is expected that the GDP growth rate in the next two quarters is expected to improve moderately, rebounding from 3% (annualized rate) in the second and third quarters of this year to 5%. The A-share market still has at least 10% rebound space in the short term.

34 companies were net bought by institutional funds for more than 10 million yuan

Under the relatively consistent market bullish expectations, combined with the bulk transaction data statistics since September 24 (as of October 14), among them, the institutional special seat appeared on the buy side of 242 transactions and on the sell side of 86 transactions, with the net purchase amount of institutions during the period being about 1.999 billion yuan.

Among them, the new energy company **Power Source was the highest in the amount of institutional funds purchased. On September 30 and October 8, the company successively had three bulk transactions, and all the buyers came from the institutional special seat, with a total purchase of 11.4254 million shares, involving an amount of 1.198 billion yuan. The institutional purchase amount of a single company accounted for nearly 60% of all institutional net purchases during the statistical period.In the first half of this year, the company has benefited from brand premium, product innovation, economies of scale, and improved project management capabilities, leading to a steady growth in performance. During the reporting period, the company achieved a revenue of 31.02 billion yuan, a year-on-year increase of 8.38%; and a net profit attributable to the parent company of 4.959 billion yuan, a year-on-year increase of 13.89%. Zheshang Securities believes that **Power is a global leader in photovoltaic inverter and energy storage system suppliers, with a significant advantage in global brand and channel, and considering the decline in upstream raw material prices and the rise in the prosperity of energy storage installations, the company's performance is also expected to accelerate.

Although the mid-term performance has declined, Robust Medical, which recently proposed a mid-term dividend plan for the first time and set a new high for the dividend payout ratio, has also been recognized and purchased by institutional funds. On October 8, the company completed two block trades involving an amount of about 217 million yuan, and the buyers were also from institutional dedicated seats.

In addition, four companies, including Jiayou International and Eastern Airlines Logistics, have also seen institutional net purchases exceeding 100 million yuan in recent periods, and another 28 companies have seen institutional net purchases of more than 10 million yuan.

Eight companies have been surveyed by over a hundred institutions

In addition to actively increasing their positions, statistics have found that since the beginning of this round of increases, major investment institutions have also conducted surveys on 351 companies, with a focus on industries such as TMT, power equipment, pharmaceuticals, and mechanical equipment.

In terms of the number of surveys, 80 companies have been surveyed multiple times recently, among which Ningbo Bank has been surveyed 6 times, and Shanghai Yanpu and Inovance Technology have been surveyed 5 times respectively.

Taking Inovance Technology as an example, the company's industrial robot business grew well in the first half of the year. In response to the institutions' concerns about the expansion pace and future expectations of the six-joint robot, the company stated that in the first half of the year, the six-joint robot accounted for about 30% of the robot sets sold by the company. Thanks to the continuous improvement of the six-joint product and effective market strategy, the company's six-joint robot business has achieved good breakthroughs. With the increasing demand for machine replacement and intelligent development of industrial robots, the company firmly believes that the industrial robot business will still have good development space and is expected to become one of the important products for the company's future growth.

Ningbo Bank stated in response to the institutions' questions about how to gain advantages in industry competition that it has always adhered to a differentiated business strategy, actively adapted to changes in the business environment, continuously accumulated differentiated comparative advantages, and promoted high-quality development of the bank. It also summarized four development experiences: first, deepen the main line of business to promote sustainable development; second, strengthen professional management to consolidate core advantages; third, accelerate technological transformation to empower business management; and fourth, firmly hold the bottom line of risk to ensure stable operation.

In terms of the number of survey institutions involved, recently, 20 companies have been "watched" by more than 50 institutions at the same time, and the survey institutions for eight companies have exceeded one hundred.

Taking Jinzi Food as an example, the company's survey activity on October 10 attracted the participation of 180 institutions, including a series of domestic and foreign investment institutions such as Goldman Sachs (Asia) Securities, Gao Yi Assets, and Huaxia Fund. In response to the institutions' questions about future overseas sales targets and channel expansion strategies for the second half of this year, the company stated that it is actively promoting the development of overseas markets and vigorously developing distributors. As of the half-year of this year, the company's products have been exported to nearly 40 countries and regions worldwide. In the second half of the year, the company will firmly focus on the development strategy of "big single product, full channel, branding, and internationalization"; focus on investing in modern channels to improve the overall service capacity of distributors; and continuously strengthen cooperation with snack specialty channels.