Li Rui of Oriental Fund: The short-term acceleration of the new energy automobile industry The growth of the medium and long-term growth is relatively clear

In the A-share market, there are very few short-term explosive and medium- and long-term growth industries, but it is the consensus of the industry that new energy vehicles belong to such a scarce industry. The author found that among the new energy vehicle investment theme funds, the Oriental New Energy Automobile Hybrid Fund helmed by Li Rui performed prominently, and according to the statistics of Haitong Securities, the performance of the product in the last year, the last two years and the last three years ranked among the top 10 of the same kind.

Specifically, according to the statistics of Haitong Securities, as of September 30, 2021, the Oriental New Energy Automobile Hybrid Fund (400015) under the Orient Fund (the effective date of the fund contract: June 21, 2018, Mr. Li Rui has served as the fund manager of the fund since June 21, 2018) ranked 2/865 of the same kind in the latest year, ranked 2/622 of the same kind in the past two years, and ranked 6/474 of the same kind in the past three years. (Source: Haitong Securities - Fund Performance Ranking (2021-10-02), Deadline: 20210930; Similar: Strong Stocks Hybrid, Evaluation Date: 20211002). In addition, it is worth mentioning that the Oriental Fund has also performed well in terms of overall investment and research strength, and the yield of its equity assets has ranked 4/145 in the same industry in the latest year. (Source: Haitong Securities: Fund Company Equity and Fixed Income Assets Performance Ranking (2021.10.2), Deadline: 20210930, Evaluation Date: 20211002)

According to public information, as a thematic hybrid fund, the stock investment ratio of the Oriental New Energy Automobile Theme Hybrid Fund is 60%-95%, of which the securities assets of industries and listed companies invested in industries and listed companies related to the theme of new energy vehicles account for no less than 80% of the assets of non-cash funds. The fund focuses on the industries related to the theme of new energy vehicles and investment opportunities of listed companies, and the product investment scope covers the upstream, middle and downstream industries involved in the new energy vehicle industry chain, as well as the back-end, automobile intelligence and other related industries, from which to dig deep into the individual stocks with investment value, the investment theme is clear, and the investment strategy is clear.

It is understood that Li Rui, fund manager of the Oriental New Energy Automobile Theme Hybrid Fund, holds a master's degree in finance from Chinese Min University, has 10 years of experience in the securities industry, and is good at research and investment in the manufacturing field. Analyzing the investment value of the new energy automobile industry, Li Rui said that the current penetration rate of new energy vehicles is still very low, and the ceiling of the penetration rate in the future is very high, and the growth of the medium and long term is more clear. In the short term, the new energy automobile industry is also in the process of accelerating upward outbreak. From the perspective of industrial development, the new energy automobile industry has entered a new stage of the industrial life cycle, "the original new energy automobile industry is greatly affected by policies and has a stronger cyclicality; after entering a new stage, the growth, certainty and sustainability of the new energy automobile industry are improving, and the fluctuations of the new energy automobile industry are also becoming smaller." Li Rui said.

Specific to the subdivision of the investment sector, Li Rui analysis believes that in the medium and long term, the power battery should be a link with higher investment value in the entire industrial chain. In addition, there are also very good investment opportunities in the materials section of the midstream. "From the perspective of development prospects, China's leading power battery companies have not yet formed a complete global supply, and the overseas share is in the process of gradually rising, and the potential development space is still very large." Li Rui pointed out. In the midstream materials link, with the development of power battery technology, the requirements for material systems and material quality are improving. "In the process of technological upgrading, the gap between the head enterprises and the second- and third-tier enterprises will be widened." It can also be seen from the market share data that the concentration of the industry is further improving. The head of the material enterprises may not only enjoy the dividends of the high-quality development of the industry, but also may enjoy the dividends brought about by the increase in their own share. Li Rui said. In addition, Li Rui believes that in the process of automobile intelligence, there are also significant investment opportunities in the three first beneficiary directions of car companies, intelligent cockpits and bicycle intelligence.

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