Recently, institutions have targeted the electronics and power equipment industry and conducted frequent research on related enterprises. As of April 18th, among the top ten listed companies surveyed by institutions in the past month, 8 are from the electronics and power equipment industry. From the perspective of industry distribution, the above two industries also rank among the top in terms of the number of institutions surveyed. In addition, with the gradual disclosure of the first quarter reports of listed companies, the undervaluation direction supported by performance has attracted attention from institutions.

According to Choice data, as of April 18th, a total of 657 listed companies have undergone 31345 institutional surveys in the past month. Among them, Lanqi Technology ranked first with a frequency of 455 surveys, and BOE A and Huate Gas, which belong to the same electronics industry as Lanqi Technology, also ranked in the top ten with a frequency of 2729 and 268 surveys, respectively. The top ten companies in terms of research frequency include power equipment companies such as Huaming Equipment, Hongfa Group, and Xuji Electric.

Specifically, as the most closely watched listed company by institutions in the past month, Lanqi Technology released its 2024 Q1 performance forecast on April 11, which shows that the company is expected to achieve a year-on-year increase of 9.65 times to 11.17 times in net profit attributable to the owners of the parent company in the first quarter. Regarding the main reasons for the performance changes, Lanqi Technology stated that since the beginning of this year, it has benefited from the rapid growth in global demand for AI servers, and the demand for higher bandwidth memory modules in AI and high-performance computing has increased. As a result, some of the company's new chip products have begun to be shipped on a large scale. On the day after the release of the performance forecast, over 350 top public funds, including E Fund, Jiashi Fund, Fuguo Fund, and Huitianfu Fund, went to conduct research, focusing on the impact of the rapid development in the AI field on the company's products and business.

The second most frequently surveyed institution is Huaming Equipment, a leading enterprise in transformer tap changer research. As of April 18th, the company's stock price has risen by over 50% so far this year. On the evening of April 18th, Huaming Equipment released its Q1 2024 report, which showed that the company's operating revenue and net profit attributable to shareholders of the listed company after deducting non recurring gains and losses increased by 9.4% and 24.09%, respectively. In the recent summary of institutional research, Huaming Equipment stated that it is actively expanding into markets such as Southeast Asia, the United States, and Europe, and overseas markets are expected to become new growth points for the company's performance.

At the same time, with the disclosure of the first quarter report, the latest top ten circulating shareholders of Huaming Equipment have emerged. Among them, Bank of Communications Alpha Core Hybrid increased its holdings by 1.4724 million shares in the first quarter of this year, ranking as the ninth largest circulating shareholder. Singapore's sovereign wealth fund GIC PRIVATE LIMITED (Temasek) became the tenth largest circulating shareholder in the first quarter, holding 6.8457 million shares.

From the perspective of industry research conducted by institutions, electronic and power equipment attract institutions to conduct cluster research. According to Choice data, as of April 18th, the frequency of institutional research conducted by these two major industries in the past month was 5012 and 3424, respectively, ranking first and third.

Pan Gui, Chief Analyst of Tianfeng Securities Electronics, believes that the semiconductor industry is expected to recover this year, and AI will drive the semiconductor cycle upwards. On the incremental level, we focus on cloud computing power, terminal NPUs (embedded neural network processors), storage space, and other aspects. On the stock level, we focus on the driving force of AI hardware and applications on the replacement needs of mobile phones, PCs, and other devices.

For the power sector, according to a research report by Guotai Junan Securities, European and American countries may invest more than $1.4 trillion in global power grid investment before 2030, with an expected annual investment of $500 billion worldwide. After 2030, power grid investment will further increase. The research report also believes that overseas power grids have entered a new round of replacement cycle, and there is broad investment space for overseas power grids. Due to the low concentration of overseas power grid suppliers, domestic power equipment enterprises have good conditions to "go abroad".

In addition to the two major industries mentioned above, as listed companies gradually disclose their Q1 2024 reports, institutions are also paying attention to the quarterly report trends. "In terms of pro cyclical performance, the transportation chain, export chain, and undervalued pro cyclical direction with performance support may have opportunities for valuation repair. In terms of technology manufacturing, with the increasing disclosure of performance by listed companies, most technology themed directions will face performance challenges. By the middle of the year, the impact of overseas technology giants on next year's demand will gradually become clear, which is expected to boost market confidence in industry trends." said Ni Chao, General Manager and Fund Manager of Equity Research Department of Golden Eagle Fund.

China CITIC Prudential Fund believes that it can focus on investment opportunities in undervalued pro cyclical companies and upstream resource goods, such as non-ferrous metals, industrial manufacturing, chemicals, express delivery, etc. Meanwhile, on the basis of high cost-effectiveness, traditional growth areas such as new energy, military industry, and consumer electronics may usher in industry turning points, and valuations are expected to recover.