Take stock of the three major opportunities of future A-shares, how to grasp it?

#基金 #

Since 2020, the sudden outbreak of COVID-19 has spread around the world. In this global fight against the epidemic, China's performance as a big country is remarkable, which is not an overnight achievement, but the embodiment of the country's comprehensive strength.

From the perspective of economic growth, China's contribution to world economic growth in 2019 reached about 30%, and in 2020, it became the only major economy in the world to achieve positive growth, and the economy achieved resilient and strong growth, which is also a handful in the world. If according to the evaluation of purchasing power, China's GDP has surpassed the United States for 6 consecutive years to become the world's first, and the number of Chinese patent applications in 2019-2020 has also ranked first in the world for 2 consecutive years.

(Source: Xinhua News Agency, "China's Economic Aggregate Rises to a New Level of 100 Trillion Yuan for the First Time in 2020, Per capita GDP Exceeds $10,000 for Two Consecutive Years", April 7, 2021).

It can be said that China's GDP is not only huge in total, leaping to the forefront of the world, but also has a solid foundation and support in the field of scientific and technological research.

In terms of industrial and enterprise development, China's high-speed rail, photovoltaic and new energy vehicles have gradually completed localization and are at the forefront of the world. Some leading companies began to accelerate their breakthrough and go global.

Standing at the tide of the era of the increasingly powerful motherland, these industries have brought huge investment opportunities while developing rapidly.

Personally, I think that in the medium and long term, we will face three major investment directions in the future, for your reference:

The first is new energy under the "carbon neutral" strategy. Human beings survive and reproduce on the earth, not only food, but also energy. At the beginning of the industrial revolution, human beings have rapidly transformed nature with the help of traditional energy sources such as coal and oil in nature, and have achieved vigorous development. However, the use of traditional energy sources also brings environmental damage, climate warming and frequent natural disasters.

In recent years, the world has vigorously promoted the "carbon neutrality" strategy, and will realize the rapid replacement of traditional energy by new energy in the future. According to the data released by the Automobile Association, the cumulative market penetration rate of new energy vehicles in China from January to September 2021 has reached 11.6%, while in 2020 this figure is only 4%, and in less than a year, this figure has increased by nearly 200%. The corresponding new energy vehicle industry chain has also achieved very good development in the past two years, but the future space is still relatively large.

The second is information technology under the wave of intelligence. In every era, technology is the first productive force. Whether it is an enterprise or a country, mastering advanced technology means standing on the commanding heights of competition, gaining more competitive advantages and not being subject to others.

After experiencing the first industrial revolution represented by steam engine technology, the second industrial revolution represented by electrification technology, and the third industrial revolution represented by computers and informatization, the fourth industrial revolution represented by artificial intelligence is coming.

Dr. Kai-Fu Lee, Chairman and CEO of Innovation Factory, once said in a speech at the "Global Vision" Investment Summit Forum on November 16, 2020 that the penetration rate of AI (artificial intelligence) is only 4%, and today's AI is equivalent to the Internet without search engines, and AI has great potential to empower various industries. In the future, AI will empower all walks of life from the aspects of cost reduction and efficiency improvement, optimization empowerment, intelligent empowerment and restructuring of industry rules.

At present, with the rapid development of big data, cloud computing, 5G and other technologies, the empowerment and development of AI will improve production efficiency faster and open up a new blue ocean.

The third is the innovative industry in biotechnology. With the improvement of people's living standards and the extension of life expectancy, the demand for health and medical care is also increasing. Now, the global biotechnology progress is very fast, human beings can not only cure many diseases, but also repair genetic defects, prevent diseases, so that these biotechnologies play an increasingly large social value and commercial value.

Typical examples such as the new crown epidemic seriously threaten people's life and health and production and operation. However, China's experts have quickly launched inactivated vaccines with the help of biotechnology, and at the same time, they have joined hands with overseas enterprises to accelerate the research and development and promotion of mRNA vaccines, and rapidly improved the epidemic prevention and immunization capacity of the whole people.

Dongxing Securities predicts that the size of China's new crown vaccine market is expected to reach 150-180 billion yuan, of which 100-150 billion yuan will reach 100-150 billion yuan in 2021, and the procurement market size will be about 30-50 billion yuan in 2022. The profits of related biomedical companies also showed explosive growth in 2020.

(Source: Dongxing Securities, "Progress and Competition Pattern of COVID-19 Vaccination", 2021/4/23)

In fact, biotechnology is not only outstanding in epidemic prevention, but also has a wide range of applications in biomaterials, biofuels, bio-environmental protection, biochemical and other fields.

Corresponding to the A-share market, the above directions are mainly concentrated in growth stocks, especially mid-cap growth stocks. These stocks usually have the potential to become first-line blue chips, and the company's business has advantages or potential advantages in terms of breadth, depth, height, etc., and has passed the start-up period of development and entered a period of rapid growth.

It should be noted that since it is a "golden track" in the future, it is inevitable that there will be a situation of "mixed fish and dragons". So how can investors identify high-quality stocks that really have potential?

In fact, this kind of professional thing can be handed over to professional investment institutions, for example, Hui Tianfu Fund has a fund called "Hui Tianfu Mid-Cap Active Growth Hybrid" (A/C code: 008065/008066), focusing on investing in high-quality mid-cap growth stocks and seeking medium- and long-term steady appreciation of fund assets.

Since its inception on March 13, 2020, the product has continued to tap into high-quality companies, and its performance at all stages has been more eye-catching.

(Source: Fund 2021 interim report, as of 2021/6/30, the product was established on 2020/3/13, past performance does not indicate future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the fund.) ）

The fund manager of the product is the strength fund manager of Hui Tianfu - Zheng Lei. According to the data, Zheng Lei has a master's degree in social medicine and health department of Fudan University, with 17 years of experience in the pharmaceutical industry and 11 years of experience in the securities industry, including 6 years of experience in fund managers.

Since his career, Zheng Lei has experienced multiple rounds of cycle transformation, and on the basis of deep ploughing in the pharmaceutical industry, he has formed a complete understanding of multiple industries, and the combination of management is more balanced.

After years of research and accumulation, Mr. Zheng Lei has a deep understanding of multiple industries, formed a comprehensive cognitive system and cross-industry investment and research framework, through the analysis of different industries, from a higher-order perspective to examine the characteristics of the industry and the driving force of the industry, integrated the characteristics of various industries, and laid a good foundation for finding mid-cap stocks with growth capabilities.

The main keywords of Mr. Zheng Lei's investment principles are "identifying risks" and "probabilistic thinking", insisting on selecting high-quality securities, maintaining the consistency of investment logic, and maintaining a stable and determined investment style. Specifically, his investment characteristics are:

The first is to choose high-quality securities, he insists on choosing companies with sustained and stable fundamentals, paying special attention to business models and competitive advantages. Rarely participate in market games such as theme investment and general trend judgment, and will be held centrally for individual stocks with outstanding cost performance.

The second is to emphasize the combination of thinking, he will strictly control the risk exposure of a single sub-industry, so that the correlation between sub-industries is low, thereby reducing the risk of portfolio fluctuations; in the sub-industry with better prosperity, it will be moderately concentrated.

He believes that truly high-quality companies can create long-term excellent returns, will dynamically assess the risk return of the portfolio, and adjust individual stock positions according to fundamental momentum feedback, objective decision-making.

In short, opportunities in the future A-share market are emerging in an endless stream, and high-quality mid-cap growth stocks are the key areas where opportunities continue to emerge. Choosing "HuiTianfu Mid-Cap Positive Growth Hybrid" can use the professional strength of fund companies to play a multiplier effect with half the effort, or an efficient tool to seize the opportunities in the A-share market.

Risk Warning: The fund is risky and the investment needs to be cautious. This material is promotional material only and is not intended as any legal document. Investment is risky, and the fund manager undertakes to manage and use the assets of the fund in good faith, diligence and due diligence, but does not guarantee that the fund will be profitable, nor does it guarantee a minimum return. The past performance of the fund does not indicate future performance, the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the fund, investors should carefully read the "Fund Contract", "Prospectus" and "Product Information Summary" and other legal documents to understand the product information in detail. The Fund is a medium risk level (R3) product, suitable for investors who have been assessed by the customer's risk tolerance level as balanced (C3) and above, and the customer-product risk level matching rules are detailed on the official website of Hui Tianfu. When the consignment agency subscribes, the risk rating rules of the consignment agency shall prevail. This product is issued and managed by Hui Tianfu Fund Management Co., Ltd., and the distributor does not assume the responsibility for investment, redemption and risk management of the product. The specific release time is subject to the announcement. Hui Tianfu Mid-Cap Active Growth Hybrid A was established since 2020/3/13, and the results and benchmarks for 2020 and the first half of 2021 were (%): 52.1/12.5, 10.01/5.74, respectively, and the annual performance of other similar products managed by Zheng Lei is as follows: The results and benchmarks of Hui Tianfu Pharmaceutical and HealthCare Hybrid in each year since its establishment and the first half of 2021 are (%): 1/5.85, -23.86/-24.04, 14.43/8.54, 41.63/23.61, 10.3/8.93, 46.09/35.39, -16.82/-9.02, -3.26/11.14, -18.48/-19.66, 61.49/24.91, 89.84/40.82, 20.73/8.85, HuiTianfu Medical's results and benchmarks for each year since its inception in the first year of holding hybrid A were (%): 6.69/9.53, respectively. 18.26/15.8, the results and benchmarks of Tim Fu Innovative Pharmaceutical Hybrid in each year and the first half of 2021 were (%): -6.34/-16.31, 70.52/22.91, 85/31.55, 15.4/9.84, hui Tianfu Healthy Life One Year Holding Mix (co-managed with Zhang Wei) was established in 2021/3/25, and there is no performance that can be disclosed according to regulations. Source: Fund Annual Report and 2021 Interim Report, as of June 30, 2021, any securities research reports or comments involved in this promotional material may not be forwarded in any form without the prior written permission of the issuing institution. The views or opinions of the relevant research reports are for reference only and do not constitute any investment advice or advice, or any express or implied guarantee or commitment, and the reader should read or refer to the relevant views and opinions carefully.