Sungen Group Stock Plunges 99%; Liquidation.

Recently, the valuations of major A-share stock indices are all at historical bottom levels. The price-to-earnings (P/E) ratio of the Shanghai Composite Index is less than 13 times, below the 14% historical percentile; the Shenzhen Component Index P/E ratio is around 20 times, below the 32% historical percentile; and the ChiNext Index P/E ratio is 24 times, below the 1% historical percentile.

Industry insiders have pointed out that with the full disclosure of the semi-annual reports, high-quality stocks with positive performance, especially those that have performed relatively well in the market recently, are likely to continue to outperform the market in the future due to favorable trends in their fundamentals, capital, and technical aspects.

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24 Stocks with Significant Earnings Growth

Stock Prices Continue to Rise

According to the Securities Times · Data Treasure statistics, among the stocks with a net profit growth rate exceeding 50% in the first half of the year and rated by five or more institutions, the stock prices of 24 stocks have risen since August and September.

In terms of earnings growth, Innotech ranks first, with a net profit growth rate exceeding twice that of the same period last year in the first half of the year. Benefiting from the continuous advancement of the national tiered diagnosis and treatment system, the release of multiple clinical practice guidelines and expert consensuses related to respiratory tracts, the enhanced awareness of early diagnosis and treatment among patients, and the company's increased efforts to develop the market in grade hospitals and primary healthcare, Innotech has maintained a good market development momentum in the first half of the year.

Maipu Medical, Ninebot Inc. - WD, and Oulu Tong, among other stocks, have seen their net profits double in the first half of the year. Among them, the main reason for the surge in Maipu Medical's performance is that the company has been working in an orderly manner around the business objectives set at the beginning of the year. With the increase in marketing efforts, the company's main business revenue in the first half of 2024 has grown steadily, and the profitability has significantly improved, leading to corresponding growth in performance. Jinbo Biological's significant earnings growth is mainly due to the company's continuous increase in R&D investment, efforts to enhance brand promotion and market development, achieving sustainable revenue growth.

Innovative drug leader HengRui Medicine is the most institutionally focused stock among the listed companies, with a total of 33 institutions rating it. Founder Securities believes that the company's performance in the first half of the year exceeded expectations. The institution stated that HengRui Medicine's semi-annual report performance shows the company's steady development under the innovation-driven and internationalization strategy, with the rapid growth of innovative drugs and the increase in R&D investment laying a solid foundation for the company's long-term development.

China Life, Ninebot Inc. - WD, and Shenzhou Taiyu, among other stocks, have been rated by more than 20 institutions. Ninebot Inc. - WD has received an upward revision of consensus performance expectations from many institutions. Dongwu Securities believes that as a global leader in the field of intelligent short-distance transportation, the company is far ahead in the high-end two-wheeler market, with strong product innovation capabilities and continuous channel development, entering an accelerated growth phase. The company has performed well in continuously enriching its product matrix and expanding its global sales network, and it is expected to achieve further growth in market share and sales in the future.

Some stocks have been established by the main force.From a valuation perspective, the lowest non-GAAP rolling price-to-earnings ratio is found in Jiayi Shares, which is less than 16 times. Additionally, the price-to-earnings ratios of Weiteng Electric, Shenzhou Taiyu, and Xianle Health are all below 20 times.

These high-quality stocks that have seen significant earnings growth and a counter-trend increase in stock prices typically exhibit a very clear trend of major players establishing positions.

Looking at the market performance since September, STO Express has accumulated a gain of over 15%, with its shareholdings continuously consolidating, and the number of shareholders at the end of the second quarter decreased by nearly 6% compared to the previous quarter, and more than 7% compared to the end of the first quarter. Since September, the cumulative gains of Seno Medical and IGOR Corporation have both exceeded 5%. Among them, the number of shareholders of Jiayi Shares at the end of the second quarter decreased by nearly 17% compared to the previous quarter; the recent trend of shareholding concentration for stocks such as Nine Number Company-WD, Kairun Shares, and China Life Insurance is also quite evident.