Since this year, even affected by the epidemic, technology stocks have soared almost across the board. Although there has been a big drop in the middle, they have all set new highs after adjustment. In the view of many investors interviewed by time finance, there is no doubt that technology stocks will run through the market in 2020.
But its worrying whether the performance of these companies can keep up with the continuous rise of their valuations as the subsequent annual reports are published?
Institutions firmly value science and technology investment
The overall judgment of our organization is mainly in four directions: first, the new generation of information technology; second, high-end equipment; third, new materials; fourth, biomedicine. These four directions are the emerging industries supported by the state, and also the industries in which we think there may be the largest number of technology bull stocks in the segment in the future. For example, Zhang Aoping, the general manager of capital, told time finance and Economics on 27 days.
The idea of Du Mingtang, the founder of insight capital, is similar to that of Zhang Aoping. In an interview with times finance and Economics on the 27th, he also mentioned that chips, medicine and new materials are the industries that may have the most technological bull stocks in the future.
According to Du Mingtang, the key to technological bull stocks is to have growth value. On the one hand, the company has relatively strong barriers to competition. Just like Maotai, it has unique resources and brand advantages. Of course, the most important is irreplaceable and original, such as some high-tech new materials related to medicine, industry and automobile. On the other hand, the current valuation is not particularly high, and there is a certain room for growth.
Zhang Chi, chairman of Xinding capital, also put forward the idea of technological bull stocks in an interview with times finance and Economics on the 27th, science and technology bull stocks are most likely to appear in the new economic sectors corresponding to scientific and technological innovation boards such as artificial intelligence, new energy vehicles, chip semiconductors, biomedicine, big data, cloud computing, etc.
In recent years, the countrys emphasis on science and technology, as well as the experience of Sino US trade frictions and other things, let us see the importance of science and technology, and a large number of scientific and technological talents began to flow back. With capital, with talent, sooner or later things will come out. Zhang Chi believes that with this kind of emphasis, Chinas technology sector will surely rise. In the past 20 days, the technology sector of a share has risen by nearly 100% and is still rising, thats the reason.
In Zhang Chis view, the era of science and technology leading development has come. A real science and technology-based enterprise will replace Maotai as the leading A-share company, which is an inevitable trend.
Benchmarking company has worries
In recent years, with the rapid rise of technology stocks, the shadow of the leading role in various sub sectors has appeared.
China Resources micro (688396. SH), a red chip enterprise established in the Cayman Islands, is the largest power semiconductor company in China and the only one with a complete semiconductor industry chain.
On February 27, China Resources micro was officially listed on the science and technology innovation board, becoming the first red chip in the A-share market. Its issuing price is 12.80 yuan (RMB, the same below). After opening at 50 yuan, it immediately reached the highest price of 50.2 yuan on that day, and then slightly fell back, and finally closed at 42.01 yuan, up 228.2% relative to the issuing price, with the highest increase of nearly 300%.
Time sharing trend chart of the first day of listing (February 27) of China Resources micro. Screenshot source: Oriental Fortune
China Resources micro was listed at this time, just in the high boom cycle of semiconductor industry. Recently, thanks to the sales of consumer electronics and new energy vehicles that 5g technology is about to bring, many stocks in the semiconductor sector have set new highs.
For example, on February 13, the company reached the highest level since its listing, with the highest price of 233.77 yuan on that day. Although there was a shock after that, the callback was not significant.
Stock price trend chart of China micro Corporation since December last year. Screenshot source: Oriental Fortune
The stock price of the newly listed star semi director fluctuated slightly on the first day of listing on February 4, but it still closed up with an increase of 44.03%. After that, the stock price surged all the way, so far, the price limit board has not been opened.
The stock price trend chart of star since its semi leading listing. Screenshot source: Oriental Fortune
On February 26, the Ministry of industry and information technology issued the guidance on orderly promoting the resumption of industrial communication enterprises, focusing on supporting 5g, industrial Internet, integrated circuit, industrial robot, additive manufacturing, intelligent manufacturing, new display, new energy vehicles, energy conservation and environmental protection and other strategic emerging industries.
On February 24, 11 national ministries and commissions including the national development and Reform Commission, the Ministry of industry and information technology and the Ministry of transport jointly issued the intelligent vehicle innovation and development strategy. By 2025, it is planned to realize the large-scale production of intelligent vehicles with conditional automatic driving, and realize the market-oriented application of highly automatic driving intelligent vehicles in specific environment.
Smart car is a very important field in 5g application, and Ningde era, the first growth enterprise, is the biggest benchmark enterprise. On the evening of February 26, Ningde times, a power battery giant, issued a series of fixed increase plans and investment announcements, proposing to raise no more than 20 billion yuan in cash.
With the gradual implementation of cooperation with Tesla, the trend of Ningde eras stock price in the secondary market has attracted much attention. Since last year, the share price of Ningde times has soared all the way. As of the afternoon of February 27, the market value has reached 330.1 billion yuan.
The stock price trend chart of Ningde era since December last year. Screenshot source: Oriental Fortune
In the concept of technology stocks, there is another eye-catching company - Gao Xinxing. Recently, Gao Xinxing launched the countrys first 5g police patrol robot for temperature measurement. Due to the superposition of 5g, infrared temperature measurement, robots, sensors, face recognition and other subjects, it was greatly hyped by market funds.
According to the trading public information of Shenzhen Stock Exchange on February 26, Gao Xinxing was on the list of dragon and tiger due to the cumulative 20% deviation of closing price increase in three consecutive trading days. On February 27, Gao Xinxing closed at 6.92 yuan, slightly lower than that on February 26, with trading volume of 185 million yuan and total market value of 12.206 billion yuan.
Gao Xinxings stock price trend since December last year. Screenshot source: Oriental Fortune
The target is less, so it needs to be hard to make iron
Although we are optimistic about the future development of the technology industry as a whole, on the specific investment performance of individual stocks, the technology sector shows a trend of rising and falling together.
In this regard, there is an analytical view on the market that the birth of Internet technology benchmarking enterprises in the United States actually stepped on the corpses of hundreds and thousands of technology enterprises. So its the same for A-share market. The individual level must eliminate a lot of junk companies.
A shares must have the conditions for the birth of technology bull stocks. With the improvement of the whole economic environment, many technology-based companies with high-tech competition threshold will have a relatively large market value growth space. Of course, I dont think its easy to say whether we can reach the market value of Maotai. In fact, in the past two years, a lot of excellent companies have sprung up, and the foundation is still good, but it needs to be verified by the market and further amplified by customer demand.
Zhang opined that the core of becoming a good company is that its products or services can be accepted by the market. So the focus is on two points, one is R & D, the other is to be able to form its own business model.
Zhang opined that for science and technology enterprises, first of all, they must have sufficient scientific and technological innovation capabilities. It can be simply judged from the R & D level that the proportion of R & D investment in total revenue should be relatively high. However, a company with good technology is not necessarily a good business model, and a good business model is not necessarily a good company.
Therefore, its R & D investment and scientific and technological achievements must be able to realize the commercialization transformation, and finally be able to create a closed-loop, and actually create profits and revenue in the market. Zhang added.
Zhang Chis judgment on technology bull stocks is that the growth should be good enough, the technical barriers should be high enough, the market share should be large enough, and the market position should be basically monopolized.
He continued, the core point is that the frequency of use should be high, and the market space is too small. It has relatively large profits, small accounts receivable and good cash flow. If these points are achieved, they belong to Maotai technology
Science and technology Maotai needs registration system soil
Zhang Chi said, A shares were originally only allowed to be listed in profitable enterprises. Now there are scientific and technological innovation boards and new three boards. As a whole, the multi-level capital market has been improved and has the soil for the birth and growth of technology Maotai . From a unprofitable enterprise to a profit giant enterprise, it can develop step by step in the capital market.
Zhangs view focuses on the registration system. He told time finance, the registration system can give more support to more scientific and technological innovation enterprises, especially to those who have not yet earned income and have not yet made profits in the early stage.. Only in the soil of registration system can real technology bull stock be born, and enterprises with a market value of trillions like apple, Microsoft and Amazon can emerge.
On the whole, the soil of A-share has the soil of initial birth and cultivation of technology Maotai . But we also need to see that the overall price earnings ratio of scientific and technological innovation board is still on the high side compared with the U.S. and Hong Kong stocks. At the end of last year, a number of enterprises broke out in science and technology innovation board. Zhang said.
NASDAQ in the United States has always been the cradle of science and technology stocks and the battlefield of growing science and technology stocks. The A-share market has always been based on the system reviewed by the national development and Audit Commission and the high-profit business indicators as the premise of listing, which makes Chinas capital market basically a capital market dominated by traditional manufacturing industry. Zhang keriang, general manager of the stock to business department of Yintai securities, told time finance and economics 27.
The state has also realized this, so it launched the science and technology innovation board in 2019, and will usher in the new three board selection layer in 2020. Both of these two plates are registered systems, which take market value as the listing standard and market-oriented issuance success as the listing conditions, which has completely changed the structure of Chinas capital market, he said. It can be said that the capital market has already met the conditions for Cultivating Science and technology Maotai.
Zhang said that in the future, technology companies will not only get the support of the capital market, but also the support of national policies from all aspects. From the perspective of national policy, Chinas economic development stage must rely on scientific and technological innovation as a breakthrough stage, which is the big environment for the birth of Maotai science and technology