Jidong Cement Q2 Revival; 2024 Ind. Slump.

Today, influenced by the significant drop in global markets, the A-share market opened lower across the board, with key stock indices such as the Shanghai Composite Index, the CSI 300, and the SSE 50 all hitting new lows not seen in over half a year. The majority of individual stocks fell, with trading volume slightly contracting to 561.6 billion yuan.

In terms of sector performance, lithium battery, retail chains, healthcare, and automotive sectors led the gains, while oil, non-ferrous metals, ST (Special Treatment), and consumer electronics sectors experienced the most significant declines.

Real-time monitoring data from Wind showed that the power equipment industry received a net inflow of over 2.7 billion yuan in main funds, and the pharmaceutical and biotechnology sector saw a net inflow of nearly 1.5 billion yuan. The automotive, communication, transportation, and household appliance sectors also saw net inflows exceeding 100 million yuan. In contrast, the non-ferrous metals and electronics industries both saw net outflows of over 1 billion yuan, with the food and beverage, construction decoration, and computer industries also experiencing outflows exceeding 100 million yuan.

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Looking ahead, Ping An Securities believes that mid-term market structural opportunities will continue to increase. In 2024, regulatory authorities will intensify efforts to invigorate the mergers and acquisitions market, focusing on supporting technology and industry M&A, including encouraging M&A in the STAR Market, supporting the integration and collaboration of upstream and downstream industries, supporting voluntary delisting through mergers, and studying fast-track reviews for reorganizations of large-cap companies. Attention should be paid to new quality productive forces, advanced manufacturing, and state-owned enterprise reforms.

Yongxing Securities pointed out that short-term market concerns are mainly concentrated on insufficient economic growth momentum, slow corporate recovery, and the need for time to verify the effectiveness of new real estate policies, which are all confidence-related issues. However, since the first quarter, overall profit forecasts have been marginally revised upwards, and the national team's expectation of stabilizing the index through broad-based ETFs has helped to stabilize market sentiment and strengthen investor confidence. Investment opportunities arise from the "hard technology" growth direction within new quality productive forces, such as cutting-edge technologies in chips, AI, autonomous driving, and humanoid robots.

In terms of hot topics, the lithium battery concept showed strength against the trend, with the sector index rising against the trend and hitting a new high in a month. Individual stocks experienced a surge in trading limits, with Haisco Xinyuan, Keheng Shares, Nantu Power, Silai Ke, and others hitting the 20% trading limit, while Xin Ya Process, Baihe Hua, and Saiwu Technology also strongly sealed the board.

In terms of news, the Shanghai Municipal Development and Reform Commission and the Finance Bureau jointly issued the "Shanghai Municipal Implementation Plan for Further Strengthening the Promotion of Consumer Goods Replacement," allocating more than 4 billion yuan in funds; increased support for automotive products, raising the subsidy for individual consumers purchasing new energy passenger cars from 10,000 yuan to 20,000 yuan; increased the subsidy standard for individual consumers replacing old cars with new energy passenger cars to 15,000 yuan; introduced a new subsidy policy for the replacement of electric bicycles, providing a 500 yuan subsidy for individual consumers replacing old electric bicycles.

Guo Jin Securities stated that according to the battery investment clock, the "2024 capacity utilization bottoming out" has been revised to "2024 capacity utilization increasing." The investment recommendation has been revised from buying leaders in high-cost differential tracks to recommending attention to leaders in each track with increasing capacity utilization, such as CATL and Koda Li, as well as second leaders in tracks with high capacity utilization, such as Eve Energy in the battery segment. At the same time, attention should be paid to the investment value of companies in the sector with "fixed income +" attributes.

The retail chain concept remained strong throughout the day, boosted by policy benefits. Shuyu Pingmin vertically hit the 20% trading limit, while Laobaixing and Shensai Ge both continued to seal the board for the second consecutive day, with Renmin Tongtai, Jian Zhijia, and Kaikai Industry also quickly hitting the trading limit.

However, ST stocks, which had been rebounding consecutively, experienced a retreat today, with nearly 50 stocks such as ST Lingda, ST Muyao, *ST Hanma, and ST Shu Yuan hitting the trading limit down or falling more than 5%. Among them, *ST Boxin, ST Yushun, *ST Jingfeng, ST Gaohong, and others experienced a "sky floor" trend.