Bull Market Enters New Phase? 152 Stocks Hit Record Highs
After a significant rise in the market over the previous period, major indices have recently shown some divergence and adjustment, with the market trend shifting from a general increase to a structural one, as well as opportunities in individual stocks. At this juncture, a batch of stocks has reached historical highs, mainly distributed in the fields of technology, finance, consumer goods, transportation, and machinery equipment. From the perspective of market style, these fields also often overlap with characteristics such as growth, high performance, and high dividends.
The number of stocks hitting historical highs has increased significantly, with technology stocks in electronics and communications occupying many seats.
Recently, stimulated by a series of favorable policies and other factors, the market has welcomed a significant increase. On October 10th, the first operation of the swap facility with a scale of 500 billion yuan was implemented, adding another significant favorable factor to the market.
Against the backdrop of the overall warming market, the number of companies hitting historical highs is also emerging on a large scale. According to incomplete statistics, as of the close on October 9th, in the nearly three trading days, excluding newly listed stocks within the year, 152 stocks have reached historical highs. Looking at the industry distribution, technology stocks such as electronics and communications occupy a larger number of seats.
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Further statistics show that there are 21 electronic stocks that have reached historical highs, among which there are more companies in the fields of semiconductors, components, consumer electronics, and electronic chemicals, with 6 semiconductor companies, such as Sugon Information, SmartSens-W, ACM Research Shanghai, Cambricon-U, etc., most of which are STAR Market companies.
Taking Sugon Information as an example, the company's stock price closed at 131 yuan on October 9th, and at one point during the day, it rose to a maximum of 148.7 yuan, once again setting a historical high since its listing in August 2022. Prior to this, the company's stock price had already experienced a relatively strong increase, such as from September 24th to October 9th, the stock price increased by more than 70%.
Component companies include Shengyi Electronics, Shiyun Circuit, Shenghong Technology, Huidian Shares, etc. Behind some of these companies' stock prices hitting new highs, they also delivered a good performance report card, such as Huidian Shares, the company closed at the daily limit on October 8th, and further rose to 46.86 yuan on October 9th, setting a historical high. Huidian Shares' main business is printed circuit boards, on October 8th, it disclosed the performance forecast for the first three quarters of this year ahead of schedule, expecting to achieve a net profit of 1.821 billion to 1.871 billion yuan, a year-on-year increase of 91.05% to 96.29%. According to its statement, the increase in performance is mainly due to the structural demand growth for printed circuit boards in emerging computing scenarios such as high-speed computing servers and artificial intelligence.
In addition, Dinglong Shares, an electronic chemical company that recently hit a new high, also delivered a good performance report for the third quarter. Dinglong Shares' main business is photoelectric imaging display and semiconductor process materials. According to its performance forecast for the first three quarters released on October 8th, it is expected to achieve a net profit of 367 million to 379 million yuan, a year-on-year increase of 108% to 115%.
In the communications field, many companies have also reached historical highs, such as China Mobile, Guangmai Technology, China Telecom, New Easy Sheng, Zhongji Xu Chuang, etc. (see Table 1). Among them, many companies are "big players", such as China Mobile and China Telecom, which set historical highs of 119 yuan and 7.32 yuan respectively during the trading day on October 9th. Looking at a longer period, both companies have previously shown a "slow bull" performance, and their stock prices have recently accelerated with the warming market sentiment.Financial Stocks Surge to New Highs
Led by Banks, Securities Firms, and Fintech Companies
Among the stocks that have recently hit historical highs, financial stocks have also occupied multiple seats, mainly distributed in the sub-sectors of banking, securities firms, and financial technology.
Looking at bank stocks, since the beginning of this year, they have continuously surged to new highs, staging a "slow bull" market. Recently, with the acceleration of market indices, the share prices of several bank stocks have also accelerated, reaching historical highs, such as Chengdu Bank, Postal Savings Bank of China, Agricultural Bank of China, China Construction Bank, and Bank of Beijing.
Taking Chengdu Bank as an example, from September 12th to September 30th, the bank's stock rose by 22%. On September 30th, the company's stock price reached a peak of 15.8 yuan, setting a historical high. On October 8th, the company's stock price opened high and further surged to 17.23 yuan.
The rise in bank stocks may not be unrelated to market sentiment and industry fundamentals. Regarding the logic of focusing on bank stocks, Galaxy Securities has expressed that incremental policies increase the intensity of macro policy counter-cyclical adjustments, strengthen the collaborative innovation of policy tools, and create a better financial environment for the financing and investment of operating entities and the implementation of macro policies. By promoting the economy through incremental policies, banks are expected to continue to benefit.
In the non-bank financial sector, such as "bull market helmsman" securities stocks like China Galaxy Securities and Oriental Fortune; insurance stocks like China Pacific Insurance and other targets have all set historical highs in recent days. Taking China Galaxy Securities as an example, the company's stock price closed with three consecutive limit-up boards from September 27th to October 8th. On October 8th, it closed at 16.93 yuan, setting a historical high since its listing in January 2017.
Fintech is also an area where stocks have recently surged to new highs. Statistics show that recently, 12 computer targets have set new highs, most of which are financial technology concept stocks, such as Tonghuashun, Zhinan, Wealth Trend, and Huijin Technology. Taking Tonghuashun as an example, the company's stock price accumulated a 126% increase from September 24th to October 8th, and on October 9th, it reached a peak of 277.38 yuan, setting a historical high.
Looking at the operational fundamentals of the aforementioned companies, most are related to the securities market. For example, Tonghuashun provides financial information, data analysis, and software system services for the capital market; Zhinan mainly provides financial data analysis services through securities tool-type software terminals; Wealth Trend's main business includes securities information services.
In addition, there are also technology companies in the banking sector, such as Huijin Technology. The company's main business includes cash management systems for bank self-service equipment and internal control systems for bank cash turnover. From the secondary market perspective, the company's stock price has risen ahead of the market. For example, from September 5th to October 8th, the company's stock price rose more than twice in 17 trading days. On October 9th, it further surged to 28.00 yuan, setting a historical high since its listing in November 2016.Additionally, financial technology companies such as iSoftStone and FABEN Information have also recently reached historical highs (see Table 2).
Many consumer goods stocks hit new highs
Transportation, machinery, and other sectors also stand out
Among the list of stocks that have hit new highs, besides technology and finance, there are several other main lines that are also relatively focused, such as consumer goods, transportation, machinery, power grid equipment, real estate, etc.
Looking at the pharmaceutical stocks within the main line of consumer goods, 13 have recently reached historical highs, with related companies such as Innot, BeiGene, Ltd., Jiudian Pharmaceutical, Hisci, Zol药业, KeLun Pharmaceutical, Lingrui Pharmaceutical, China Resources Sanjiu, etc.
From a sub-sector perspective, the aforementioned companies that have hit new highs include multiple fields such as chemical pharmaceuticals, medical devices, biological products, and traditional Chinese medicine. Further looking, most of these companies are high-performing stocks. Specifically, the data from this year's mid-year report shows that among the 13 pharmaceutical stocks that have recently hit historical highs, only 2 companies have seen a decline in performance, while the remaining 11 have achieved growth. Among them, some companies have even achieved a doubling of their performance, such as Hisci, which achieved a net profit of 165 million yuan in the first half of this year, a year-on-year increase of 119.4%; Innot achieved a net profit of 206 million yuan in the first half of the year, a year-on-year increase of 166.45%.
Looking at the stock price performance in the secondary market, under the strong market-wide rise, many stocks have shown a "deep squat jump" trend. For example, Kelun Pharmaceutical, the company's stock price was in an adjustment state from the end of August to late September, and from September 25th to October 8th, it rebounded by more than 30%.
In addition, in the consumer goods sector, food and beverage companies such as Dongpeng Beverages and Wanchen Group; commercial vehicle companies such as JAC Motors and Yutong Bus; and home appliance companies such as Haier Smart Home have also recently reached historical highs.
In addition to consumer goods, transportation, machinery, power grid equipment, and infrastructure sectors also have many companies reaching historical highs.In the transportation sector, nine companies have reached new highs, with typical examples including Qingdao Port, China Merchants Highway, Tangshan Port, Wannan Expressway, Shandong Expressway, and Shenzhen Expressway.
Overall, the transportation companies that have recently reached new highs often share characteristics such as low price, low valuation, and high dividend yield. Among the nine transportation stocks that set new highs, as of the close on October 9th, four had share prices below 10 yuan, and eight had share prices below 15 yuan, with Tangshan Port being the lowest at 4.66 yuan; the valuations (TTM) of the nine stocks were below 20 times, with Shenzhen Expressway being the lowest at 10 times. In terms of dividend yield, six were above 4%, and both Shenzhen Expressway and Guangdong Expressway A exceeded 5%.
Additionally, companies such as Yunji Group, RoboTech, Invictus, and Yizumi in the machinery and equipment sector; Sanxing Medical and Siyuan Electric in the power grid equipment sector; and real estate companies such as China World Trade Center and Shenzhen Housing A have also recently set historical highs (see Table 3).
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