On April 17, all 4 products of Ruiyuan Fund disclosed the first quarter report of 2024. In the first quarter, well-known fund managers Fu Pengbo and Zhu Ling increased their holdings of some companies and Hong Kong stocks that benefited from the growth of export chains and equipment substitution, while Zhao Feng increased their holdings of some new energy companies with attractive valuations and companies with low valuations and stable fundamentals.
Fu Pengbo and Zhu Lan expect that in the second quarter, the improvement of fundamentals and changes in the economy may have a stronger and clearer guiding effect on investment throughout the year. Zhao Feng said that with the slowdown in demand growth, listed companies will be more rational about expansion and will pay more attention to profitability and shareholder returns, which will improve the quality of earnings and returns of listed companies.
Tencent and Meituan newly entered the top 10 heavy stocks
Compared with the positions at the end of 2023, in the first quarter of this year, Ruiyuan Growth Value, managed by Fu Pengbo and Zhu Lan, increased its holdings in Lixun Precision, Tencent Holdings, Guanghui Energy, Myway Shares, and Sino Biologics, of which Tencent Holdings newly entered the top 10 heavy stocks, and at the same time reduced its holdings in China Mobile, CATL, Tongwei Shares, Wanhua Chemical, and Dongfang Yuhong.
Image source: Wind-Ruiyuan Growth Value Blend
In the first quarter, Zhao Feng's Ruiyuan Balanced Value Three-Year Holding Hybrid increased its holdings in CATL, Wanhua Chemical, Weiming Environmental Protection, Meituan-W, and China Property Insurance, among which Meituan-W and China Property Insurance newly entered the top 10 heavy stocks, and at the same time reduced their holdings in China Mobile, Tencent Holdings, Sieyuan Electric, Sinocare Biologics, and China Resources Beer.
Image source: Wind-Ruiyuan Equilibrium Value Three-Year Holding Hybrid
In the first quarterly report, Fu Pengbo, Zhu Ling and Zhao Feng introduced the recent position adjustment ideas.
In the first quarter, Ruiyuan Growth Value Mix still maintained a high position operation, mainly reducing some of the top 20 companies in net value, adding some companies that benefited from the growth of the export chain and equipment substitution and renewal from the bottom up, while increasing the allocation of Hong Kong stocks, and increasing the position when energy stocks pulled back.
In the first quarter, Ruiyuan Equilibrium Value Mixed Three-Year Holding Mix reduced its holdings in companies related to fixed asset investment, as well as companies with unattractive static valuations and difficult to judge future growth, and increased its holdings in some new energy companies with attractive valuations, as well as companies with low valuations and stable and predictable fundamentals.
In addition, combined with the announcement of Ruiyuan Fund's announcement of self-purchase in January this year and the first quarterly report, on January 29, Ruiyuan Fund purchased 50 million yuan each of its Ruiyuan Growth Value Mix and Ruiyuan Balanced Value Three-year Holding Mix, totaling 100 million yuan.
The improvement of fundamentals and changes in the economy may play a leading role in investment
Fu Pengbo and Zhu said in a quarterly report that from the perspective of economic data, exports have improved, and the prosperity of related manufacturing industries has rebounded; during the holiday period, residents' travel and consumption have recovered, driving the prosperity of the service industry; real estate sales are still weak, and infrastructure investment has been weaker than expected under the pressure of resolving debt. Compared with the 2023 scenario of "higher expectations, weaker reality", the market has lowered its expectations this year, and the actual situation may not be bad.
In the case of redundancy in the industry's production capacity, Fu Pengbo and Zhu Ling believe that enterprises need to exchange price for volume to maintain and increase market share, and it is not easy for PPI to improve, but when positive signals appear, it may correspond to the improvement of corporate profits. Referring to the performance in 2023, in the context of abundant liquidity, the improvement of corporate earnings is a necessary condition for the upward movement of the market operation center.
In the first quarter, Zhao Feng's views on the economy and the market tended to be positive. On the one hand, many companies are already at attractive valuations, with potential returns far outpacing other assets even if economic and earnings growth slows in the future, and on the other hand, market sentiment is extremely pessimistic and investor expectations have largely bottomed out. As of February, the PPI of all industrial products has been declining year-on-year for 17 consecutive months, and social inventories have been continuously compressed at a low level.
"Looking ahead to the second quarter, there will be some structural opportunities in the A-share market, and the valuation level of the sector index is still below the historical average. With the disclosure of the annual report and the first quarterly report of listed companies, Fu Pengbo and Zhu Ling expect that the improvement of fundamentals and economic changes in the second quarter may have a stronger and clearer guiding effect on investment throughout the year.
In the recent annual report exchange of listed companies, Zhao Feng found that more and more companies said that they would control the speed of expansion, shrink loss-making business lines, and pay more attention to the balance between revenue growth and profitability. As demand growth slows, listed companies will be more rational about expansion and will pay more attention to profitability and shareholder returns, which will improve the quality of earnings and returns of listed companies.
Reviewer: Dong Fengbin Editor: Ya Wenhui Proofreader: Zhang Jing Producer: Zhang Nan Signed: Sun Hong