Original title: New energy main line bottom recovery GEM index rebounded by nearly 1% in shock

Shanghai Securities News Reporter Fei Tianyuan

On May 22, the A-share market showed a pattern of sideways fluctuations. The rise of the new energy sector represented by PV in the afternoon drove the GEM index to rise late, outperforming the two main board indexes. By the end of the day, the Shanghai Stock Exchange Index had closed at 3158.54, up 0.02%; The Shenzhen Composite Index rose 0.12% to 9693.05; The GEM index rose 0.88% to 1877.93. The total turnover of Shanghai and Shenzhen stock markets was 831.2 billion yuan, about 30 billion yuan higher than the previous trading day.

PV concept raises the tide of flood limit

In the afternoon of yesterday, the market popularity focused on the main line of new energy, among which the rise of photovoltaic concept was the most prominent. The Shenwan PV equipment index closed up 7.30%, Dongfang Risheng harvested 20% of the limit, Trina Solar, Zhonglai Shares, Yubang New Material, etc. rose more than 10%, and Tongwei Shares and Longji Green Energy, the two industry leaders, rose 9.09% and 6.89% respectively.

On the news side, according to the WeChat official account of "China Photovoltaic Industry Association CPIA", in order to discuss the current problems faced by the photovoltaic industry, the causes and countermeasures, and guide the orderly development of the industry, under the guidance of the Electronic Information Department of the Ministry of Industry and Information Technology, the China Photovoltaic Industry Association recently held a "high-quality development forum for the photovoltaic industry". The meeting said that the photovoltaic industry is an industry with a high degree of marketization, and it is advisable to solve relevant problems through marketization, but also give full play to the role of the government, including improving key technical indicators.

According to the analysis of Industrial Securities, the price of PV main materials will continue to decline in 2023, and the cost line has been touched at the beginning of 2024, which will lead to the reduction of the accumulated net profit of listed PV main materials enterprises in the first quarter from 34.2 billion yuan in 2023 to - 3.2 billion yuan in 2024, and the net cash flow from operating activities will also turn negative. It is judged that the photovoltaic industry is still in the bottom stage, but integrated leading enterprises are expected to gradually show competitive advantages in the industry cycle by virtue of their leading cost control ability and perfect sales channels.

The bottom of the concept of medical beauty rebounded

Similarly, the concept of medical beauty has also been revived at the bottom. In the morning trading yesterday, the long adjusted medical beauty concept stocks experienced abnormal movements. At the beginning of the trading, the largest increase of Hyaluronic acid leader Huaxi Biological was close to 17%, and then the fluctuation fell back, and the closing increase narrowed to 5.15%. Harbin Sanlian gained the limit of increase, Landside, Ogilvy Medical, etc. rose by more than 3%, and Amec, Bettany, etc. rose by more than 1%.

On the news side, the Guangdong Provincial Health Commission recently issued a notice on the adjustment of medical cosmetic surgery projects. The notice shows that physical therapy and injection therapy are newly added in the first level project of cosmetic surgery, including the injection of hyaluronic acid (i.e. hyaluronic acid), collagen and other fillers. According to industry analysis, new injection projects such as hyaluronic acid in cosmetic surgery may boost the consumption of hyaluronic acid.

According to the analysis of Guojin Securities, compared with the US and South Korean markets, the Chinese medical and beauty industry has a certain gap in terms of penetration rate and competition pattern. With the continuous improvement of China's medical beauty penetration rate and the continuous optimization of the market competition pattern, the industry's incremental space is worth looking forward to. Influenced by the emotional side, the valuation of A-share medical and beauty sector has been reduced to a relatively low level. It is judged that the industry is still in a stage of high prosperity and development, and is expected to benefit from the double drive of the increase in the proportion of compliant products and the increase in the penetration rate of medical and aesthetic products in the future. There is a large room for improvement in industry performance and valuation, and we are optimistic about the domestic medical and aesthetic leaders with technology, products and brand reserves.

See more core assets in various fields

Recently, the rotation of the A-share market has accelerated again. For example, the hot real estate sector in the early days rose and fell yesterday, while new energy, medical beauty and other bottom varieties took over. In the view of some institutions, the current market as a whole lacks a clear main line. With the implementation of the real estate stabilization policy and the subsequent recovery of corporate profits, core assets represented by industry leaders are expected to continue to strengthen.

Zhang Qiyao, chief strategic analyst of Industrial Securities, said that through the industry rotation intensity index built by the team, it can be observed that this indicator has risen rapidly since May, indicating that the market has once again come to a stage lacking a clear main line. In this context, it is suggested that investors should keep their multi head thinking and focus on core assets in various fields.

Zhang Qiyao believed that with the gradual implementation of the real estate policy, the economic expectations continued to improve and the highlights began to increase. Therefore, we should pay attention to certainty while taking into account the future. Core assets in all fields not only have certain profit growth to ensure long-term space and sustainability, but also have appropriate dividends to provide certainty for short-term stability and security, which is expected to become the direction of consensus building.