The short-term correction just provides an opportunity to increase positions. Optimistic institutions generally say. So, in the coming March, which sectors and individual stocks have allocation opportunities? According to the statistics of tonghuashun, the research department reporter of Securities Daily found that there are 333 research papers optimistic about the future performance of the financial industry in the near future, and financial stocks are expected to become one of the key areas of capital allocation.
Financial stocks are affected by the fluctuation of market sentiment in the short term, while the medium-term trend is that the improvement of fundamentals brings about the restoration of valuation. Huatai Securities pointed out that at the current time, the financial sector benefits from the three logics of policy support, increased guarantee of reasonable and sufficient liquidity, strengthened demand for capital allocation, and accelerated reform of capital market, adding that the current valuation of the sector is at a low level, or it will usher in phased allocation opportunities.
Indeed, in 2020, the acceleration of capital market reform has become an important driving force for A-share to keep growing. On March 1, the newly revised Securities Law was officially implemented, and the top-level legislative design was introduced, which improved the efficiency of the capital market and further promoted the long-term and healthy development of the capital market. In fact, with the continuous expansion of the science and technology innovation board and the promotion of the gem reform, the new three board reform, spin off listing, refinancing, M & A and restructuring policies have been successively implemented, in 2020, growth stocks and value stocks are expected to become the protagonists of the long Bull market, which is widely recognized by institutions.
Although the overall valuation of a shares has been restored by about 30% since 2019, the valuation of the financial sector is still at a low level, especially the banking sector. According to statistics from the research department of Securities Daily, as of February 28, nearly 30 banking stocks were still in the state of breaking net, and the latest market to net ratio of Huaxia Bank, Minsheng Bank, Bank of communications, Bank of Beijing and other stocks were all in a lower position in the industry, while the stable operation of fundamentals had already provided a solid foundation for the restoration of banking valuation.
At the same time, the stock valuation of securities companies known as bull market engine is also controversial. The profitability of the securities industry in 2019 is amazing. According to the operating data of securities companies in 2019 released by the Securities Industry Association, 133 securities companies achieved a total revenue of 360.483 billion yuan in 2019, a year-on-year increase of 35.37%; net profit of 123.095 billion yuan, a year-on-year increase of 84.77%. By the end of 2019, the total assets of 133 securities companies were 7.26 trillion yuan, an increase of nearly 16% year on year; the net assets were 2.02 trillion yuan, an increase of nearly 30% year on year. The settlement margin of customers in the whole industry is 1.3 trillion yuan, an increase of nearly 40% year on year. Analysts pointed out that if this trend continues, the valuation level of the securities industry is very low, especially the valuation level of the first-line securities companies will be far lower than the historical average, and their stock price rising potential and valuation elasticity are far from being realized.
Since it is an indisputable fact that the financial industry is favored by institutions, which target stocks can stand up to the short-term pressure of A-share? According to the Research Report of securities companies, 28 financial stocks have been highly praised by the institutions, among which, two stock institutions, including Ping An Bank and Ping An of China, have given 23 favorable ratings such as buy in or increase in holdings, and China Pacific Insurance, China CITIC Securities, Xinhua insurance, Zhangjiagang bank, Ningbo bank, Huatai Securities, China Merchants Bank and Industrial Bank are also listed Top of the organizations like list.
Source: responsible editor of Securities Daily: Zhong Qiming, nf5619