Special Notes

the content in this push is excerpted from the research report issued by the League of Nations Securities Research Institute. If in doubt, the full version of the report shall prevail.

Year-to-date Guolian gold stock portfolio yield of 14.5 per cent:

year-to-date contribution of constituent stocks of the Guolian gold stock portfolio:

Top 10 Gold Stock Portfolio Recommendations for September 2023:

01

Wanma shares

(002276.SZ): Electric new

Reason for recommendation:

Chemical cross-linking, silane cross-linking insulation companies have a higher market share and higher barriers;

Production capacity continues to expand, and the release of fixed increase is mainly used for the construction of Qingdao plant, ultra-high voltage phase III, new cable production line and Shanghai New Materials Research Institute;

Charging pile product performance growth, station operations more refined.

Risk:

fund-raising projects are not progressing as expected; market demand is slowing; competition is intensifying.

Recommended by: He Zhaohui

Certificate of practice No.: S0590521100002

02

Love Cody

(600933.SH): Automotive

Reason for recommendation:

The die-casting process is the most widely used aluminum alloy processing process, and aluminum alloy die-casting companies are expected to continue to benefit from the lightweight wave;

The company is a leading die-casting enterprise for small and medium-sized parts, actively transforming large parts in new energy vehicles, the proportion of new energy projects continues to increase, and high-value new energy-related products are expected to be released, driving the company's die-casting business volume and price to rise;

Through the acquisition of Yinbaoshan new die-casting and Fule Taicang layout semi-solid die-casting products and zinc alloy die-casting products, the company's layout in the field of new technology to provide long-term growth momentum for the company's development.

Risk:

downstream demand is less than expected, capacity is less than expected, and raw material price increases are at risk.

Recommended by: Huang Chengbao

Certificate of Practice No.: S0590523020001

03

Weichuang Electric

(688698.SH): Mechanical

Reason for recommendation:

the company's PLC and servo system business is cut from high-voltage servo to low-voltage servo, with large market space, small revenue base and fast growth rate. Moreover, with the increase of self-research proportion of parts and components, the gross profit margin of this business is expected to increase from 2023 to 2025.

the company's H1 overseas revenue in 2023 was 0.163 billion, accounting for 26.82, up 174 percent year-on-year. with the further development of European and American markets, overseas business is expected to maintain rapid growth in the future;

The low-voltage servo and hollow cup motor products of the company's robotics division are the core components of humanoid robots and are expected to become downstream customer parts suppliers.

Risk:

Risk of technology upgrade iteration lag and failure of new product development; risk of import dependence on electronic components such as IC chips and IGBTs; risk of exchange rate fluctuations; risk of trade policy in the Indian market.

Recommended by: Zhang Xu

Certificate of Practice No.: S0590521050001

04

Chinese ships

(600150.SH): Military

Reason for recommendation:

Shipbuilding industry boom upward, currently in the middle of the boom cycle, large-scale ship replacement demand has not begun to show;

China and South Korea are the main shipbuilding receiving countries in this cycle, South Korea's production capacity is limited by the rise of labor costs, domestic production capacity is limited by policies and labor costs, head ship enterprises such as Chinese ships will fully benefit from the upward trend of downstream demand;

The interim report showed that the company's operating cash flow increased significantly in the second quarter, reaching the best level since 2018, indicating that the company's operations began to improve significantly, profits continued to decline due to the impact of the type of ship delivered, and the Q2 gross margin of shipbuilding and repair and offshore workers decreased by 0.83pct year-on-year in 2023, an increase from the previous year. Based on delivery analysis, Q2 main business gross margin is expected to improve significantly in 2024.

Risk:

Downstream demand fell short of expectations; performance releases fell short of expectations; and the global recession.

Recommended by: Sun Shuming

Certificate of practice No.: S0590521070001

05

Zhenhua Technology

(000733.SZ): Military Industry

Reason for recommendation:

Platform-based listed companies, electronic components industry leader;

continuous upgrading of products and improvement of cost control ability;

The issuance is conducive to the company's capacity expansion and long-term development.

Risk:

Risk of market demand falling short of expectations; risk of technology research and development falling short of expectations; risk of order delivery falling short of expectations; risk of increased competition in the industry; risk of failure of issuance.

Recommended by: Sun Shuming

Certificate of practice No.: S0590521070001

06

Remote Communication

(603236.SH): Communication

Reason for recommendation:

Modules show a global pattern of "rising from the east to the west". The company has the largest share of shipments in 22 years, and the number of global cellular connections will maintain double-digit growth in the next three years;

The downstream area has a wide layout, and the scale effect is prominent;

Equity incentives help companies achieve performance goals.

Risk:

Global IoT connections grew less than expected, the company's overseas market expansion was blocked, and shipments of high-margin products fell short of expectations.

Recommended by: Sun Shuming

Certificate of practice No.: S0590521070001

07

Zhaochi shares

(002429.SZ): Electronic

Reason for recommendation:

The company has strong cost control capabilities and has cost advantages in LED chips, COB packaging, terminal manufacturing and other fields;

LED chips will be expanded in Q2 2023, the scale will rise to the first echelon, and the price will be raised slightly in June. it is expected that the performance in the second half of the year will improve significantly month on month.

COB shows that packaging orders continue to improve month on month, with monthly shipments of more than 5000 square meters and expansion in August 2023. With the continued reduction of prices, the medium-and long-term market space is broad.

Risk:

LCD panel price increases short-term impact on profit margins; poor macroeconomic impact on LED display demand; COB cost reduction slows; downstream demand ramp-up is slow.

Recommended by: Xiong Jun

Practising Certificate No.: S0590522040001

08

This world

(603369.SH): Food & Beverage

Reason for recommendation:

product, promote the "V-system attack, open system promotion, this world activation" strategy, product matrix full force, to ensure performance growth. The core product opening system is stable and high, while the V-series is growing faster than expected this year. And after the epidemic increased the flow of people overlay product positioning clear, elegant and the current world collection series also have a recovery growth. 23H1 Special A +/Special A/A realized income of 38.18/17.58/0.226 billion yuan respectively, up 25.56/36.86/28.34, with a balanced growth rate and no short board.

In terms of channels and marketing, group buying remains strong, circulation increases, and the corresponding terminal marketers continue to increase their size to screen and cultivate core high-quality distributors. Marketing held high, continued to promote the national edge brand positioning, the use of diversified communication matrix to increase contact, through sports events, concerts, industry forums and other innovative ways to strengthen the spread of heat;

regional market, the province continues to strengthen at the same time, is expected to open the market outside the province. This world has been out of the province for 7% in 21 years, 6% in 22 years, and 10% in 23 years. At present, judging from the difficulty and path of the target (organization, product, region), the realizability is relatively high. 23H1 inside/outside the province to achieve revenue of 54.98/0.439 billion yuan, with an increase of 27.36/40.44 percent, revenue accounted for 92.60/7.40 percent, the growth rate outside the province bright.

Risk:

Poor macroeconomic conditions affect liquor consumption; industry competition intensifies; nationalization process is blocked.

Recommended by: Chen Mengyao

Certificate of practice No.: S0590521040005

09

Stone Technology

(688169.SH): Household appliances

Reason for recommendation:

low permeability under the price-for-volume into the clean electrical growth of a new inflection point. 2023 H1 all-round sweeper prices fully explored, the industry as a whole incremental products down to 3000-4000 yuan price belt, price-for-volume initial cash. It is estimated that the penetration rate of sweepers will reach 7% in the next 5 years, the sales volume will reach 14.03 million units/year, the CAGR-5 will reach 26.04, and the number of sweepers will reach 10.5 units per 100 households in cities and towns.

overseas demand gradually recovered, low penetration rate and the same frequency with domestic development, stone technology in the North American market to successfully build high-end brand power, North American line listing rate ranked second, omni-channel third, the future offline market has a large incremental space;The German-speaking region has a high market share and is expected to continue to grow strongly in the second half of the year from a low base due to the macro environment in 2022; the Asia-Pacific region has also expanded rapidly;

obstacle avoidance algorithm and comprehensive product strength advantages highlighted, through the supply chain control is expected to achieve cost reduction and efficiency, price-for-volume strategy under the sales volume and penetration rate is expected to increase significantly.

Risk:

New product sales are less than expected; changes in the overseas macro environment; price wars and other vicious competitive risks.

Recommended by: Chen Mengyao

Certificate of practice No.: S0590521040005

10

Sansheng Guojian

(688336.SH): Medicine

Reason for recommendation:

self-free track product release speed, innovative drug scale have improved;

the company's three self-exempt varieties of domestic research and development progress are the top three;

has been commercialized varieties of etanercept, Septin have improved.

Risk:

Adamu biosimilar drug collection, self-exempt drug research and development/sales are less than expected, and the risk of a deterioration in the competitive landscape of self-exempt drugs.

Recommended by: Zheng Wei

Certificate of practice No.: S0590521070002

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