2023 is coming, and many investors are paying attention to the movements and opportunities in the stock market. So, we will analyze the industries and sectors that are likely to perform well in 2023, as well as their investment logic and risk points. First of all, we see 2023 as a big year for the tech industry. With the rapid development and popularization of 5G, artificial intelligence, cloud computing, Internet of Things and other technologies, the technology industry will usher in a new round of innovation and growth.
The technology industry can not only improve the production efficiency and service level of society, but also drive the transformation and upgrading of other industries. We expect that the revenue and profit growth of the technology industry will continue to maintain high speed in 2023, and the market valuation will further increase.
We recommend investors to focus on the following segments:
- 5G: 5G is the foundation of future communication technologies, which will provide higher network speeds, lower latency, greater capacity, and more application scenarios for various industries. We expect that the construction and coverage of 5G base stations will enter a peak period in 2023, and the penetration rate of 5G mobile phones will also increase significantly, and 5G-related chips, equipment, operators, applications and other enterprises will benefit. We recommend paying attention to Huawei, ZTE, Samsung, Qualcomm, Ericsson and other companies.
- Artificial intelligence: Artificial intelligence is one of the most revolutionary and promising technologies today, which is capable of simulating and surpassing human intelligence, bringing great value and change to various fields. We expect that in 2023, the algorithms, data, computing power, scenarios, etc. of artificial intelligence will be further improved and enriched, and enterprises related to artificial intelligence, hardware, platforms, and services will usher in explosive growth. We recommend following Alibaba, Tencent, Baidu, Google, Amazon and other companies.
- Cloud computing: Cloud computing is a model of providing on-demand computing resources and services through the Internet, which can reduce the cost and risk of enterprises and improve the efficiency and flexibility of enterprises. We expect that the market size and number of users of cloud computing will continue to expand in 2023, and enterprises related to cloud computing infrastructure, platforms, applications and other enterprises will enjoy strong demand. We recommend paying attention to Alibaba Cloud, Tencent Cloud, HUAWEI CLOUD, Microsoft Cloud, Amazon Cloud and other companies.
- Internet of Things: The Internet of Things refers to the technology of connecting various physical devices through the network and realizing information exchange and intelligent control, which can realize the interconnection of all things and bring convenience and wisdom to life and work. We expect that the technical standards and security specifications of the Internet of Things will be further unified and improved in 2023, and enterprises related to the Internet of Things will usher in a new round of development opportunities. We recommend paying attention to companies such as Xiaomi, Huawei, Apple, Intel, Qualcomm and others. Second, we see 2023 as a year of recovery for the consumer sector. Due to the new crown epidemic and economic crisis in 2022, the consumer industry has been greatly impacted and stressed, and many consumers' incomes and confidence have been affected, and consumer demand and levels have declined. However, as vaccines become more widespread and the economy recovers, we expect consumer sentiment and capabilities to improve in 2023, and the consumer industry will gradually emerge from the downturn and regain growth momentum. We recommend investors to focus on the following segments:
- Medical health: Medical health is one of the most basic and important needs of human beings, which is not only related to people's quality of life and longevity, but also related to social stability and development. We expect that the healthcare industry will continue to maintain rapid growth in 2023, especially after the new crown epidemic, people's attention and investment in health will increase, and health-related drugs, devices, services, insurance and other companies will be favored. We recommend following companies such as Pfizer, Johnson & Johnson, Roche, Novartis, Bayer and others.
- Education and training: Education and training is one of the most core and long-term investments of mankind, which can improve people's knowledge and skills, increase people's employment and competitiveness. We expect that the education and training industry will usher in a new round of development opportunities in 2023, especially after the new crown epidemic, people's demand and desire for learning will be stronger, and education and training-related courses, platforms, content, certificates and other enterprises will be welcomed. We recommend paying attention to New Oriental, Good Future, NetEase Youdao, UBTECH, Coursera and other companies.
- Tourism and leisure: Tourism and leisure is one of the most common and pleasant consumption of human beings, which can enrich people's life experience and cultural vision, and relieve people's stress and troubles. We expect that the tourism and leisure industry will rebound significantly in 2023, especially after the new crown epidemic, people's demand and expectations for travel will be stronger, and tourism-related transportation, accommodation, catering, entertainment and other enterprises will usher in a recovery. We recommend following companies such as Ctrip, Qunar, Mafengwo, Tuniu, and Fliggy. Finally, we believe that 2023 is a breakthrough year for the environmental energy industry. With the intensification of global climate change and environmental pollution, the environmental protection energy industry has become a common concern and key support of the international community and governments. We expect that in 2023, the environmental protection energy industry will usher in the dual promotion of policy dividends and market demand, and enterprises related to environmental protection energy, energy conservation and emission reduction, recycling and other enterprises will show strong development potential. We recommend investors to focus on the following segments:
- Clean energy: Clean energy refers to energy that does not produce or produce very few greenhouse gases and pollutants, such as solar energy, wind energy, hydro energy, biomass energy, etc. We expect that the technical cost and social recognition of clean energy will be further increased in 2023, and clean energy-related power generation, energy storage, transmission and distribution, equipment and other enterprises will enjoy the dual benefits of policy support and market demand. We recommend paying attention to LONGi, Tongwei, Zhonghuan, Goldwind, BYD and other companies.
- Energy conservation and emission reduction: Energy conservation and emission reduction refers to improving environmental quality and ecological conditions by improving energy efficiency and reducing energy consumption intensity, reducing greenhouse gas and pollutant emissions. We expect that the technical level and industry standards of energy conservation and emission reduction will be further improved in 2023, and enterprises related to energy conservation and emission reduction in buildings, industry, transportation, lighting and other enterprises will be driven by government supervision and social responsibility. We recommend paying attention to Sinoma Energy Conservation, CLP Environmental Protection, CRRC Times, OPPLE Lighting, CLOU Electronics and other companies.
- Recycling: Recycling refers to the maximum utilization of resources and the minimization of waste through the recovery, reuse, remanufacturing and other ways of waste, and the construction of a low-carbon circular economic system. We expect that in 2023, the technological innovation and market scale of recycling will be further expanded, and enterprises such as recycling-related waste recycling, waste batteries, and waste plastics will usher in opportunities for industrial upgrading and value revaluation. We recommend paying attention to Jinfeng Liquor, Guoxuan Hi-Tech, Anhui Heli, Hengyi Petrochemical, Kingfa Technology and other companies.
In short, the stock market will be full of opportunities and challenges in 2023, and investors need to allocate assets and select individual stocks reasonably according to their risk appetite and income goals. We believe that the technology industry, consumer industry and environmental protection energy industry will be the three most noteworthy sectors in 2023, which not only have strong growth and competitiveness, but also have better risk resistance and stability.