20240621-中国银河-每日晨报_4页

Market Brief: June 21, 2024
Prepared by Zhou Ying

Key News

1. Social Financing Growth in January-May 2024:
   The cumulative social financing scale increased by 148 trillion yuan from January to May 2024, a decrease of 2.52 trillion yuan compared to the same period last year.
2. PBOC LPR Rates Stable:
   The one-year and five-year LPR rates for June stayed unchanged from the previous period.

Analyst Commentary

1. JinGong: Investment Value Analysis of Small-Cap Stocks After the New "September Order No. 9"

• Key Points:

  • The New "September Order No. 9," released on April 12, 2024, aims to promote high-quality development in the capital market.
  • Recent equity market trends show a more pronounced decline in small-cap stocks compared to large-cap stocks, though signs of a rebound are emerging.

• Basic Factor Analysis:

  • Four key basic factor categories were identified: dividend payout, delisting risk, long-term value, and debt repayment capability.
  • Small-cap stocks generally lag behind large-cap stocks in metrics related to profitability, growth, and efficiency.

• Portfolio Construction:

  • A portfolio based on the A-Share Index with refined basic factors selected aims to identify fundamentally strong small-cap stocks.
  • Backtesting indicates that a combination of high-dividend, low-revenue volatility, and low-leverage companies shows significant excess returns.

• Risk Warning:

  • Market dynamics can change quickly due to real-time policy changes. This report's conclusions are based on historical data and statistical trends and do not guarantee future performance.

2. Electric Power & New Energy (DianXin): Acceleration of UHV Projects and Growth in HVDC Penetration

• Key Points:

  • UHV Expansion: China is experiencing a significant acceleration in UHV projects, with a potential investment timeline extending beyond two years.
  • Gigawatt-Scale Renewable Projects: Accelerated grid connection for the 450 GW wind and solar projects has created new pathways for energy consumption.
  • HVDC Penetration: Growing technological maturity and declining costs in HVDC applications are expected to boost HVDC usage significantly.

• Investment Recommendations:

  • Focus on companies with high technological barriers:NARI Group (600406.SH), XJ Electric Co., Ltd. (000400.SZ), China XD Electric Group (601179.SH), Ping High Electric (600312.SH), Tianjin University Electric (600089.SH), Four Direction Electric (601126.SH).
  • Keep an eye on **Huamei Equipment (002070.SZ) and Jingbei Electric (002533.SZ).

• Risk Warning:

  • Potential delays in grid construction or intensified competition in the sector may threaten project viability.

Disclaimer
This report is provided by China Galactic Securities Co., Ltd. for clients. The content is based on historical data and does not constitute a formal investment recommendation. Market changes are subject to unforeseen policy shifts.

Stock research at China Galactic Securities publicly available on www.chinastock.com.cn.