Highlights

1. Ministry of Commerce: to build "invest in China" brand in 2024 and relax foreign investment access

The National Business Conference was held in Beijing from January 7 to 8. The meeting stressed that in 2024, the national business system should consciously integrate its thoughts and actions into the decision-making and deployment of the Party Central Committee, and take the initiative to benchmark against the table. Build the "Invest in China" brand and promote the steady quality of foreign investment. We will relax access to foreign investment, strengthen the guarantee of foreign investment services, and continue to build a market-oriented, legalized and international first-class business environment. Improve the effectiveness of open platforms and steadily expand institutional openness. We will further implement the strategy of upgrading the pilot free trade zone, deepen the comprehensive pilot demonstration of expanding the opening up of the service industry, and enhance the functions of various parks such as national economic and technological development zones.

2. The Ministry of Industry and Information Technology issued a guide for the construction of the national automotive chip standard system to give full play to the supporting and leading role of standards in promoting the development of the automotive chip industry

The Ministry of Industry and Information Technology issued guidelines for the construction of the national automotive chip standard system. By 2025, more than 30 key standards for automotive chips will be formulated, and basic requirements such as environment and reliability, electromagnetic compatibility, functional safety and information security will be clarified, and control, calculation, storage, power and communication chips and other key products and application technical specifications will be formulated to form matching test methods for complete vehicles and key systems, to meet the basic needs of safe and reliable application and pilot demonstration of automotive chip products. By 2030, more than 70 automotive chip related standards will be formulated, the general requirements for basic general, product and technology application and matching tests will be further improved, effective support for forward-looking and integrated automotive chip technology and product research and development will be realized, full coverage of typical application scenarios and test methods of automotive chips will be basically completed, and the needs of building a safe, open and sustainable automotive chip industry ecology will be met.

Comment: Starting from 2021, people in the automotive circle who are "missing cores" are anxious. The expansion of automotive chip production has almost become the consensus of the entire industry. At present, there is a trend of overcapacity in the entire industry. In terms of domestic substitution, it is necessary to change the style of play.

3, byte, tencent discuss game project sale, strengthen game cooperation

According to a later LatePost, Byte Beat's game department is negotiating with Tencent to sell a number of games. People close to the deal revealed that the team involved in the sale of the project is scattered in Shanghai, Shenzhen and other places. The light year has spent hundreds of millions of yuan on the development of these games, and the sale has been greatly discounted. The relevant person in charge responded that the deal with Tencent has not yet been finalized. In addition, the team is talking to multiple buyers about the sale of the project.

comment: the major internet giants are shrinking their battle lines and accelerating the processing of non-core businesses. Alibaba's series of investments in other companies before selling, and Baidu's only YY, are all of this logic. Put limited resources into your core business and deepen the moat.

4. UBS: A shares are currently mispriced 8 times PE investment opportunities are hard to find globally

The UBS Greater China Symposium was held in Shanghai. Lian Peikun, director of Greater China Research at UBS Global Investment Bank, said that the current stock market valuation is too cheap. The MSCI China Index PE is only 8 times, and there will be 15% upside this year. Constructive bullish on Hong Kong stocks, mainly due to the low position of foreign Hong Kong stocks, the Fed's future interest rate cuts will promote foreign capital inflows, Hong Kong stocks in the Internet sector earnings growth rate of up to 23%. "Because the valuation is very low now, many fund managers who make long-term investments come to China again to see if there are any opportunities. The fundamentals are the starting point. The valuation is too cheap. It is difficult to find opportunities with 8 times PE in other developed markets and emerging markets." Lian Peikun said.

Comment: From the perspective of a large cycle, everyone knows that falling to the current state is very cheap. From the perspective of space, there is not much room for downward movement. From the perspective of time, it needs to continue to grind.

5, the big business issued a fee reduction plan to notify specific procedural reporting customers not to participate in the reduction

Dalian Commodity Exchange issued the "Notice on the Implementation of the 2024 Fee Reduction Plan" to member units. According to the notice, the fee reduction is divided into two parts: transaction reduction and position reduction. In terms of transaction reduction, the trading fees of members' futures and options varieties will be reduced by 30%, while iron ore futures, coking coal futures and coke futures will not be implemented for the time being. Specific programmatic reporting customers identified by the Exchange do not participate in the transaction reduction. In terms of position reduction, the average daily position of each futures and options variety of the member for the whole year of 2023 is taken as the base, and if the average daily position of the member of the variety in 2024 is not less than the base, the member will be reduced by 10% of the transaction fee payable for the month of the variety. Iron ore futures, coking coal futures and coke futures varieties will not be implemented for the time being. Specific programmatic reporting customers identified by the Exchange also do not participate in position reductions.

Comment: After the SEC refuted the rumors and the exchange issued a fee reduction plan, the rumors in the futures circle were self-defeating. Futures listed companies have finally breathed a sigh of relief.

the number of passengers transported by civil aviation will reach 80 million in June and 2024

On the afternoon of January 8, the Civil Aviation Administration of China held a regular press conference. The relevant person in charge introduced that the 2024 Spring Festival will start on January 26 and end on March 5, for a total of 40 days. It is predicted that during the Spring Festival travel period, the number of passengers transported by civil aviation will reach 80 million, with an average of 2 million passengers per day, which is expected to hit a record high.

comment: judging from the current hot situation in Harbin, the demand for travel is still very strong. recently, major airlines are also reducing refund fees, and the business of major airlines has recovered in an all-round way.

7, listed companies once again "get together" to issue buyback, increase in holdings announcement

on the evening of January 8, a number of listed companies, including Sande Technology, Hisense Home Appliances, Weiming Environmental Protection, Huaxia Ophthalmology and Nanshan Aluminum, issued buyback announcements, and many companies planned to buy back up to more than 100 million yuan. In addition to A shares, on the evening of January 8, a number of Hong Kong stocks, including Tencent Holdings, AIA and Xiaomi Group, also took action to buy back "big investors. In addition to buybacks, on the evening of January 8, a number of listed companies, such as Meihua Biology, Xiantan shares, Huayi Group, Weixing New Materials, Capital online and other listed companies, issued relevant announcements on the increase of shares held by important shareholders or directors, demonstrating their confidence in the future development of the enterprise.

8 and 10 listed companies disclose announcement of pre-increase or pre-profit in 2023 after hours

A total of 10 listed companies, including Bowei Alloy, Taiping Bird, Zhongxing Commercial, Yaoji Technology, Abison, Kailong, Hengmingda, Zhucheng Technology, Shuanghuan Transmission and Hypergraph Software, disclosed the pre-increase or pre-profit announcement for the full year 2023. Specifically, the two listed companies are expected to double their annual net profit in 2023 year-on-year, of which Bowei Alloy is expected to increase its net profit by 101.09 to 129.02 percent year-on-year in the same period, and Taiping Bird is expected to increase its annual net profit by about 125 percent year-on-year. In addition, there are two listed companies to disclose the 2023 results of the express. Among them, China's China exemption announcement achieved a net profit of 6.717 billion yuan in 2023, an increase of 33.52 percent over the same period last year, while Shaanxi State Investment A announced a net profit of 1.09 billion yuan for the whole year, an increase of 30.05 percent over the same period last year.

9, the Federal Reserve Bostick: is expected to cut interest rates twice this year, the first rate cut will be in the third quarter

The Federal Reserve Bostic reiterated that two 25 basis point rate cuts before the end of this year are appropriate; policy still needs to remain tight at the end of the year, but inflation progress will support rate cuts.

Overnight Outside

U.S. stocks: The three major indexes closed up collectively, with the Nasdaq up 2.2 percent. Popular technology stocks rose, with semiconductors and software applications leading the way, with Nvidia up more than 6%,AMD up more than 5%, Nawei Semiconductor, Intel and NXP up more than 3%, and Apple, Google, Amazon and Bo up more than 2%. Oil and gas stocks and aviation stocks fell, with Boeing down more than 8 percent. Popular Chinese stocks fell, with the Nasdaq China Golden Dragon Index down 1.47 percent. Aiqiyi, Xiaopeng Auto fell about 3%, Jingdong fell more than 2%, Weibo, Vipshop, Weilai, Netease, Tencent Music, Futu Holdings fell more than 1%, Ideal Auto, Baidu, Alibaba fell slightly. Pinduoduo rose slightly. Dada plunged 45.87 percent.

Futures:COMEX February gold futures closed down 0.8 percent at $2033.5 an ounce; COMEX March silver futures closed down 0.02 percent at $23.31 an ounce. WTI crude oil futures settled down 4.12 percent at $70.77 a barrel, while Brent crude futures settled down 3.35 percent at $76.12 a barrel. FTSE China A50 index futures closed up 0.37 per cent at 11074 points.

Market Strategy

The market has continued to decline. Previously, the ChiNext Index, as a leading indicator, has eaten the Dayang line. Since then, it has successively set new lows. It has been 5 consecutive negatives so far, and a new round of decline is on the way. Following the GEM index, the China Securities 1000 Index also broke the position in the middle, breaking through the low point in October last year. After the break here, the next target will be lower in April 2022.

Theme Nuggets

automotive chips: on January 8, the Ministry of industry and information technology issued a guide for the construction of the national automotive chip standard system. by 2025, more than 30 key standards for automotive chips will be formulated, basic requirements such as environment and reliability, electromagnetic compatibility, functional safety and information security will be clarified, and technical specifications for key products and applications such as control, calculation, storage, power and communication chips will be formulated, the formation of vehicle and key system matching test methods to meet the basic needs of safe and reliable application and pilot demonstration of automotive chip products.

target: time electric (688187), star semi-conductor (603290)

Base editing therapy: The world's first hemoglobinopathy patient cured by base editing therapy was born. According to reports, Zhengxue Biology cooperated with the First Affiliated Hospital of Guangxi Medical University to successfully use a base editing drug "CS-101" independently developed.An adolescent patient with β-thalassemia major was cured. After receiving autologous stem cell transplantation in October 2023, the patient has successfully achieved hematopoietic reconstitution, continued to get rid of blood transfusion dependence for more than two months, the total hemoglobin concentration has stabilized to more than 130g/L, and has returned to normal life. At present, positive sequence biology has submitted "CS-101" new drug clinical research application.

target: energy health (300272), new open source (300109)

Selected Announcements

[Major matters]

four-link board dongfang zhongke: the company's hongmeng related products are still in the research and development and trial stage

Simei Media: Received advance notice of administrative penalty from Zhejiang Securities Regulatory Bureau

ST collection: the actual controller will be changed to all-China supply and marketing cooperative

Qingyuan shares: the company does not involve BC battery or other battery business

Tongyu Communications: intends to invest in industrial funds with professional investment institutions

yingfeng shares: plans to build a new green environmental protection intelligent production line with an annual output of 0.129 billion meters of high-grade printing and dyeing fabrics in 0.34 billion yuan

[Performance Summary]

Taiping Bird: Expected net profit to increase by about 125 year-on-year in 2023

Powerway Alloys: Expected 101.09 to 129.02% YoY increase in net profit in 2023

Double-Ring Drives: Expected 37.44-40.87 YoY Growth in 2023 Net Profit

Yao Ji Technology: Net Profit Expected to Increase 52%-86% YoY in 2023

kailong shares: expected net profit to increase by 27.46-64.95% year on year in 2023

ZTE Commercial: net profit up 45.98-92.7% YoY in 2023

hypergraph software: expected 2023 net profit of 0.18 billion yuan -0.23 billion yuan year-on-year loss

hengmingda: expected net profit in 2023 to increase by 45.05-55.41 year on year

abison: expected net profit in 2023 to increase by 52.7-72.4 year on year

[M & A]

Rongqi Technology Terminates Acquisition of 60% Equity in Ningde Zhongneng

[Increase in holdings and decrease in holdings]

nanshan aluminum: plans to buy back the company's shares at 0.3 billion -0.6 billion yuan

hisense household appliances: plans to buy back the company's shares at 0.18787 billion -0.37573 billion yuan

huazhiwuhang: plans to buy back the company's shares at 0.1 billion -0.15 billion yuan

capital online: the chief executive plans to increase the company's shares by no less than 10 million yuan

huaxia ophthalmology: plans to buy back the company's shares at 0.15 billion -0.25 billion yuan

weiming environmental protection: plans to buy back the company's shares at 90 million yuan -0.18 billion yuan

Walter shares: to repurchase the company's shares at 15 million -30 million yuan

Xiantan shares: Xiandong Holdings, the controlling shareholder acting in concert, plans to increase its holdings by 12 million yuan -17 million yuan

Shifeng culture: shareholder Wang shengzhong plans to reduce his holdings by no more than 1%

plum blossom biology: management plans to increase its holdings of shares of the company by no less than 80 million yuan

[Other matters]

huayu software: it is planned to contribute no more than 50 million yuan to participate in the establishment of equity investment fund

western animal husbandry: self-produced fresh milk production in December decreased by 3.15 year on year

Linzhou heavy machinery: winning the bid for 0.745 billion yuan project

jianyi group: holding subsidiary won the bid of 0.297 billion yuan project

tiantie shares: the company and its subsidiaries have signed major contracts totaling about 0.105 billion yuan

huakang medical: winning the bid for 88.9558 million yuan project

2 even board jinlongyu: no significant changes have taken place in the company's operation and internal and external operating environment recently

Yunnan City Investment: the scale of the company's real estate business has been significantly reduced

Hengrui Pharmaceuticals: Subsidiary obtains drug clinical trial approval notice

lansi technology: 0.347 billion yuan government subsidy

Addie Pharmaceuticals: ACC017 Tablets Obtain Drug Clinical Trial Approval Notice

Betta Pharmaceuticals: Applications for Clinical Trials of BPI-221351 Tablets and BPI-520105 Tablets Accepted

Changchun Hi-Tech: Holding Subsidiary EG017 Ointment Receives Drug Clinical Trial Approval

Shanghai Electric Co., Ltd.: to implement the technical transformation project of high-density high-speed interconnection printed circuit board production line for computing power network

Trading tips

[IPO]

1. Tengda Technology (Shenzhen Main Board)

requisition code: 001379

Issue price: 16.98

Issue P/E: 26.05

Purchase rating: recommended purchase

2. Yongxing shares (Shanghai main board)

requisition code: 780033

Issue price: 16.20

Issue P/E: 21.76

Purchase rating: recommended purchase

[Stop and Resuming]

Puyuan Jingdian: to issue shares to purchase assets and raise matching funds to resume trading from January 9

ST Tongzhou: to purchase all or part of the shares of reliable cloud will be suspended from January 9

[sales restriction]