The opportunity for A-share small- and mid-cap nuggets is coming

In the current market environment, the performance of small and mid-cap stocks and dividend policies have received a lot of attention. According to the latest "National Nine Articles" policy, listed companies need to strengthen the supervision of cash dividends, which will undoubtedly have a significant impact on the company's dividend strategy. From the evidence available, small and mid-cap stocks have shown some growth potential and profitability in 2024.

Mid- and mid-cap stocks are expected to continue to dominate in 2024, especially in emerging sectors such as AI. This information suggests that small and mid-cap stocks may have delivered good results in certain sectors and geographies.

As for the view of the annual report, we can see that small and mid-cap stocks are responding positively in the face of new policies. For example, some companies are preparing a performance dividend plan for 2023, which is not expected to touch the risk of being regulated. This positive attitude helps to boost investor confidence in the company.

As for the expectations for the future industry, according to the Prospective Industry Research Institute, there will be several industries that will become new drivers of economic growth in 2024. In particular, industries such as artificial intelligence, new energy, and pharmaceuticals are expected to maintain strong growth momentum in the next few years. Small- and mid-cap companies in these sectors are likely to have more opportunities to grow due to technological advancements and increased market demand.

Small and mid-cap stocks have shown decent growth potential and profitability in the current market environment. With the implementation of the "National Nine Measures" policy, it is expected that the dividend policies of these companies will be further optimized, so as to attract more investors' attention. At the same time, we should also focus on small and mid-cap stocks in emerging industries, which may show greater growth potential in the future.

What are the details of how small- and mid-cap stocks will perform in emerging industries such as AI in 2024?

Details of the performance of small- and mid-cap stocks in emerging industries such as AI in 2024 include the following:

1. The emerging industries represented by AI are still in an upward cycle, which is the core factor driving the small-cap dominant style. CITIC Securities emphasized this in its report and recommended paying attention to small and medium-sized companies in some sub-sectors that have been fully adjusted in the early stage and are expected to continue to catalyze in the future.
2. The performance of emerging industries is two sides of the same coin, especially in the upstream diffusion of AI represented by new computing power technologies and domestic computing power chains.
3. Huaxi Securities mentioned in its investment strategy report that the market review showed that the Science and Technology Innovation Board underperformed the Shanghai Composite Index, and the style of small-cap stocks weakened, but it was recommended to pay attention to the structural opportunities brought by the development of the AI industry.
4. Although there are some risks, such as greater drawdown pressure on AI-related themes, the low-altitude economic correction will remain mainstream after the pullback, suggesting that there are still good performance opportunities for small and mid-cap stocks in areas such as AI.
5. In certain periods, small-cap stocks as a whole performed strongly, such as the CSI 2000 Index rising 8% and the CSI 1000 Index rising more than 4%, reflecting the market's positive expectations for emerging industries such as AI.

The details of the performance of small- and mid-cap stocks in emerging industries such as AI in 2024 are mainly reflected in the fact that these sectors are still in an upward cycle and have good investment opportunities. At the same time, investors are advised to pay attention to the progress of small and medium-sized companies in sub-sectors that have been fully adjusted in the early stage and are expected to continue to catalyze in the future, as well as new computing power technologies and domestic computing power chains. In addition, despite the risks, the overall performance of small-cap stocks has remained strong in certain periods, indicating a positive attitude towards these emerging sectors.

What are the specific impacts of the "National Nine Articles" policy on the supervision of cash dividends of listed companies?

The specific impact of the new "National Nine Articles" policy on the supervision of cash dividends of listed companies is mainly reflected in the following aspects:

1. Strengthen supervision: The new "National Nine Articles" clearly propose to strengthen the supervision of cash dividends of listed companies, which means that for those companies that have not paid dividends for many years or have a low proportion of dividends, more stringent measures will be taken to restrict and manage.
2. Restricting the reduction of shareholdings by major shareholders and implementing risk warnings: For companies that do not actively pay dividends, the new policy will restrict the reduction of their majority shareholders and may impose risk warnings on them, so as to encourage these companies to improve their dividend policies.
3. Incentives for high-quality dividend companies: The new policy increases incentives for high-quality companies to increase dividend yields through a variety of measures, which will help improve the quality of dividends of listed companies and the sense of gain for investors.
4. Enhance the stability, sustainability and predictability of dividends: The new policy aims to enhance the stability, sustainability and predictability of dividends of listed companies, and promote the realization of multiple dividends and pre-dividends to meet the needs of different investors.
5. Curbing short-term speculation: By strengthening the supervision of cash dividends, the new "National Nine Measures" will help curb short-term speculation in the market and promote the long-term healthy development of the capital market.
6. Promote banks and other financial institutions to increase the proportion of dividends: Especially for listed banks, the new policy is conducive to promoting them to better reward shareholders on the basis of sound and sustainable operation, and really enhance investors' sense of gain.

The new "National Nine Articles" policy has had a positive impact on the supervision of cash dividends of listed companies by strengthening supervision, incentivizing high-quality companies, and enhancing the stability and predictability of dividends, aiming to promote the healthy and stable development of the capital market.

Which sectors will be the new drivers of economic growth in 2024, and what are the specific forecasts?

In 2024, artificial intelligence, commercial space, and low-altitude economy will become new drivers of economic growth. Specific forecast data shows that by 2025, the size of the mainland AI chip market will reach 178 billion yuan, and the compound annual growth rate (CAGR) is expected to be 42.9% in 21-25 years. In addition, the Central Economic Work Conference mentioned the need to build strategic emerging industries such as commercial aerospace and low-altitude economy, indicating that there will be great development in these fields. These data and policy guidance suggest that areas such as artificial intelligence, commercial space, and the low-altitude economy will be important drivers of economic growth in 2024.

For small- and mid-cap stocks with high dividends and high dividends, how should investors assess their annual reports and future growth potential?

For high-dividend, high-dividend small- and mid-cap stocks, investors should take the following steps and approaches when evaluating their annual reports and future growth potential:

1. Objectively evaluate the reliability and comprehensiveness of the annual report: First of all, it is necessary to conduct an objective evaluation of the annual report of the listed company, and pay attention to the written description of the company's or project prospects, especially where the profit growth point is. Many public companies may dedicate themselves to a large number of words describing the bright prospects of the company or project, but not saying anything about how much revenue and profit it will actually bring, which can mislead investors.
2. Analyze financial statements: Financial statements are an important source of data to understand the health of a company. By analyzing historical (financial, business) data, evaluating financial data and business discussions, and retaining the true from the false, the evaluation conclusion is drawn. Specifically, vertical analysis, horizontal analysis, and trend analysis can be used to deeply understand the changes in the financial statements and the proportion of important items.
3. Identify growth and profitability: A company's growth and profitability are key indicators to assess its future growth potential. Investors should pay attention to the profitability analysis and growth analysis of the company, and how to identify these factors through the comprehensive analysis of financial statements.
4. Consider equity investment strategies: For small and mid-cap stocks, especially those with sustained high growth potential, investors should consider their valuation levels and the likelihood of future earnings growth. Institutional investors, such as funds, usually preferentially invest in small- and mid-cap stocks with low valuations and high growth potential.
5. Focus on industry status and development potential: Small- and mid-cap hybrid potential stocks tend to have greater development potential and faster revenue growth in multiple industry segments. Investors should pay attention to the position of these companies in their respective industries and their future growth potential.
6. Understand the importance of dividend yield: Dividend yield is an important evaluation criterion for high dividend investment methods. By calculating the ratio of dividends per share to stock price, it is possible to intuitively understand the ability and value of a stock to pay dividends.

When evaluating high-dividend and high-dividend small- and mid-cap stocks, investors should comprehensively consider the reliability and comprehensiveness of annual reports, in-depth analysis of financial statements, the company's growth and profitability, the investment strategy of the stock, its industry status and development potential, and dividend yield and other dimensions of information to make more comprehensive and accurate investment decisions.