Morning Brief

MarketResearch MorningBrief [October22nd,2024] MorningBrief ZHOUJinyu021‐38674924zhoujinyu011178@gtjas.comS0880516080007 Contents TopRecommendations ●A‐ShareStrategySpecial:ETFsIntoGrowthStocks ●WarIndustrySector:UpdateReport ●LithiumPowerBatterySector:UpdateReport ●HomeAppliancesSector:UpdateReport ●IndustrialGasSector:UpdateReport ●Active(Passive)AssetAllocation:MajorAssetsAllocation LatestReports ●SemirGarment(002563):OW,TP@RMB7.50↑ ●SMICS(688981):OW,TP@RMB136.80↑ ●PientzehuangPharma(600436):CO,TP@RMB248.64↑ ●FuyaoGlass(600660):OW,TP@RMB70.00 SectorRatingsoftheMonthMarketStrategyWeeklyViewpoint 本报告内容译自同日发布的简体中文报告《国泰君安晨报》，报告观点及内容如有任何不一致的地方，一律以该简体中文版报告为准。 TopRecommendations A‐ShareStrategySpecial:ETFsIntoGrowthStocks High‐frequencydatashowthatthenewcashflowfromstockETFsisflowingfromblue‐chipvaluestocksintotheleadingscience‐techgrowthstocks.Afterlate‐September,passivefundsrecordedanetinflowintoscience‐techgrowthstocksandheavy‐weightfinancialstocks,concentratinginsemiconductor,battery,photovoltaic,medicalinstrument,securities,telecomequipmentandliquorsectors.Theproportionoftheturnoverofscience‐techgrowthstockamongpassivefundshasrisenconsiderably,withmorethan70%CR10oflevel‐Isectorsandinlinewiththemainstreammarkettrend.InthefirstweekaftertheNationalDayholidays(October8th—11th,2024),theproportionsoftheturnoverofpowerequipment&alternativeenergy,electronic,cosmeticsandpharmaceuticalsectorsrosequickly,whilethatofnon‐bankfinanceandsteelsectordecreased. WarIndustrySector:UpdateReport Weconcludethefollowingfourmajorinvestmentthreadsandfeaturedcompanies:(1)finalassembly:AVICShenyangAircraft(600760);(2)componentsandparts:AVICOptronic(002179)andSpaceAppliance(002025);(3)subsystems:AVICAirborneSystems(600372)andNorthNavigationControl(600435);(4)materialsandprocessing:FushunSpecialSteel(600399),AVICHeavyMachinery(600765),FeilihuaQuartzGlass(300395),ToLandAlloy(300855),HuaqinTech(688281)andBrightLaser(688333). Therelatedfeaturedcompaniesinclude(1)finalassembly:AerospaceCHUAV(002389)andAVICXi’anAircraft(000768);(2)componentsandparts:UnigroupGuoxinMicroelectronics(002049),HongyuanElectronic(603267),ZhenhuaTech(000733)andTorchElectron(603678);(3)sub‐systems:AECCAviationPower(600893),ZhonghangElectronicMeasuring(300114)andJianghangAircraftEquipment(688586);(4)materialsandprocessing:AvicAviationHigh‐Tech(600862),SinofibersTech(300777),WesternSuperconducting(688122),GuangweiComposites(300699)andAviationTech(688239). LithiumPowerBatterySector:UpdateReport Thelithiumbatteryindustryisnowatthenadirofitsbusinesslifecycle.Butthearrivalofthehighseasonofalternativeenergyautoindustryandthestronger‐than‐expecteddemandfromenergystorageindustrymayhelptoimprovethedemand.AndtheimplementationofthenewEuropeanemissionstandardsin2025andthe“hurryimport”byU.S.maysustainthedemandinthemediumterm. Atpresent,weprefer(1)theleadinglithiumbatteryproducersofexcellentbusinessresults,includingContemporaryAmperex(300750),BYD(002594),EVEEnergy(300014),Kedali(002850),CNGRAdvancedMaterial(300919)andShangtaiTech(001301);(2)theleadingcompaniesinthelithiumbatteryindustrialchainwhosestockshavesufferedoverselling,includingDynanonic(300769),EnergyNewMaterial(002812)andYunengMaterial(301358);(3)consumerbatteryproducerswhichbenefit fromtherevivalofconsumerelectronicindustryandtheriseofAI:CosMXBattery(688772),HighpowerTech(001283)andXTCNewEnergyMaterials(688778);(4)powerbatteryindustrialchainsuppliers:LuckyHarvest(002965)andVMAXNewEnergy(688612);(5)solid‐statebatteries:EaspringMaterial(300073),GSPAutomotive(605088)and(#4680batteryforTeslapickuptrucks)YifiLaser(688646) HomeAppliancesSector:UpdateReport ThediscountsalesintheNovember11thShoppingFestivalandthegovernmentsubsidiestohomeappliancesreplacementmayleadtogooddomesticsalesin2024Q4.Ofallproducts,whitegoodsarethedirectbeneficiaries,andwerecommendMidea(000333)(2024PE:15.3x),Haier(600690)(15.3x),HisenseHomeAppliances(000921)(11.5x)andTCLHomeAppliances(002668)(13.8x).Browngoodsarealsoamongthebeneficiaries,andwerecommendTECElectronics(1070.HK)(9.5x)andHisenseVisual(600060)(11.3x).Inviewoftherevivalofdomesticdemandandbusinessfundamentals,werecommendRoborock(688169)(19.5x)andEcovacs(603486)(20.7x).Inviewofthepossiblelaggedappreciationofkitchenappliancesstocksfollowingthelaunchingofpolicystimulustorealestatesales,werecommendRobam(002508)(13.5x)andVatti(002035)(13.4x). IndustrialGasSector:UpdateReport Intheshortrun,theoxygendemandfromsteelplantshasincreasedalittle,whichwillfavortheriseofoxygenandothermajorgasprices,aswellastostabilizeraregasprices.Inthelongrun,theoutsourcingratioofmajorgaswillkeeponrising,andtheimportsubstitutionofelectronicspecialgasmayspeedup.Offeaturedcompanies,werecommendHangzhouOxygenPlant(002430)andShaanguPower(601369).OtherbeneficiariesincludeHuateGas(688268),QiaoyuanGas(301286),PericSpecialGas(688146),KaimeiteGases(002549),JinhongGas(688106)andHeyuanGas(002971). Active(Passive)AssetAllocation:MajorAssetsAllocation Wemaintain“StandardPosition”forA‐sharestocks.Therecentpolicypackagehasreversedtheextre