Huaan Fund Zhang Liang: Excellent enterprises will continue to grow In the next stage, we are optimistic about the four major investment directions

Xu Jinzhong China Securities News· China Securities Network

China Securities Network News (reporter Xu Jinzhong) on January 18, Huaan Quality Leading Hybrid Fund proposed fund manager Zhang Liang expressed market views that excellent enterprises will continue to grow, the next stage is optimistic about four major investment directions: the service industry recovered due to the easing of the epidemic, the new power system, long-term production capacity growth is limited, the industry capital expenditure continues to decline, and the high-quality consumer industry companies with large adjustments in the early stage.

Zhang Liang pointed out that from the economic level, the economic growth rate will further decline, but excellent enterprises will further grow, and the future market is still full of investment opportunities. At the market level, investors should pay more attention to the long-term certainty of the enterprise and the ability of the enterprise to generate cash flow in the short and medium term.

In terms of specific investment directions, Zhang Liang analyzed the four major investment opportunities in detail.

The first is the service industry that has recovered due to the easing of the epidemic, such as tourist hotels, aviation airports, and scenic performances. With the popularization of vaccines and the progress of specific drugs, the epidemic will gradually ease and travel will gradually return to normal, at which time the certainty of demand outbreaks in the service industry is high. In addition, as far as the actual situation is concerned, these leading companies in the industry have expanded against the trend during the epidemic period, further improved their market share, further optimized and upgraded their products, and significantly improved the competitive landscape of the industry.

The second is the new power system. The establishment of a new power system is a strong support behind the long-term goal of "double carbon" and the industrial policy of "dual control of energy consumption". At present, the proportion of new energy power generation to new power generation is still a long way from the main position of 50%, which undoubtedly depends on the vigorous construction of new energy installed capacity and energy storage, and also depends on the further improvement of intelligent investment in the power grid. In 2021, the installed cost of wind power will drop significantly, and the yield of wind power operation will far exceed that of photovoltaics, and the subsequent increase in wind power installed capacity will drive the rapid growth of related companies. After the upstream raw material capacity constraints on photovoltaics are lifted, there will be better investment opportunities.

In addition, it is also optimistic about industries with limited long-term capacity growth and continuous decline in industry capital expenditure. In the past, such industries have developed extensively, and after the supply-side reform in 2017, the backward production capacity of the industry has been eliminated, and the profitability of the industry has been greatly improved. In the future, under the constraints of environmental protection and "double carbon", the long-term cash flow and profitability of these enterprises are expected to stabilize, and the high-quality enterprises with better returns are worthy of optimism.

Finally, there are high-quality consumer industry companies with large adjustments in the early stage. At present, the fundamentals of some food and beverage companies have gradually begun to improve, and the price of pig breeding industry has also bottomed out, and we should pay close attention to its investment opportunities.