Today, the short-term sentiment has recovered as expected. Contrary to expectations, the fluctuations this morning were not significant, with only a few short-term stocks experiencing large declines.
Yesterday, we focused on PCBs. To recap yesterday’s viewpoint: the iconic company in the sector, Shenghong Technology, is showing a strong trend, while Zhongjing Electronics has stopped falling at a high divergence point after a correction. The elastic stock in the sector, Yihua New Materials, has shown an intention to rally. The original text can be found in yesterday’s detailed analysis.
Today’s sector performance met expectations, with Yihua hitting the daily limit due to sector sentiment. A strong sector should behave this way; the market is now competing on initiative, understanding, and overall insight. If you can comprehend the situation, both the first and subsequent steps can yield profits, as long as you don’t deviate too far. Tomorrow, this sector will continue, and the industry chain will further expand and explore. The price increase of electronic fiberglass has not been captured by Honghe Technology and Zhongcai Technology (this logic was shared relatively early when the PCB sector was not this strong), but the trend has not ended. If it consolidates horizontally at this position, there may be opportunities for low absorption. Additionally, I will emphasize several subdivisions within the industry chain that may continue to be explored, which have been discussed in previous articles.
Dingtai High-Tech: The only global manufacturer of key PCB drilling needle production equipment that is self-researched, self-manufactured, and self-used, with Shenghong being the largest supplier of PCB drilling needles.
Han’s Laser: A major domestic supplier of PCB processing equipment for drilling, exposure, forming, and testing.
Jiangnan New Materials: The market leader in copper ball series products domestically and ranks among the top globally. The copper ball series is a core material for PCB electroplating processes.
In other directions, there is an expectation of a return in the military industry. Under normal circumstances, Hunan Tianyan’s performance today indicates that there should be a premium tomorrow. The overall timing of the return is difficult to judge. Currently, the sector rotation shows that technology and pharmaceuticals are performing better today, and it is hard to predict whether there will be differentiation or continued expansion tomorrow, as they are all large sectors. Therefore, it is best to observe some signs of stopping the decline in previously strong sectors during the rotation.
Core Hotspot Pool:
Focus Stocks: Zhongjing Electronics, Great Wall Military Industry, Hunan Tianyan, Hengbao Co., Ltd., Dadongnan, Chengbang Co., Ltd., Haoshanghao, Kaimete Gas, Saili Medical
Military Industry: Bolite, Jiuzhiyang, Xuanji Information, Nanshan Holdings, Leike Defense
Pharmaceuticals: Guangshengtang, Shenzhou Cell, Saiseng Pharmaceutical, Jiuzhitang, Chengyi Pharmaceutical, Weiming Pharmaceutical, Suli Co., Ltd., Huahai Pharmaceutical, Meinuohua, Changchun Gaoxin, Saili Medical, Huana Pharmaceutical
PCB: Yihua New Materials, Zhongyi Technology, Tongguan Copper Foil, Bomin Electronics, Fangzheng Technology, Jin’an Guoji, Zhongjing Electronics, Pengding Holdings, Dongshan Precision
Photovoltaics: Yijing Optoelectronics, Jixin Technology, Yamaton, Yaopi Glass, Shunwei Co., Ltd., Huayin Electric Power
Semi-conductors: Xuanji Information, Bomin Electronics, Xuedilong, Chengbang Co., Ltd., Haoshanghao, Dawei Co., Ltd., Kaimete Gas
Digital Currency: Hengbao Co., Ltd., Chutianlong, Yuyong Co., Ltd.
Military Industry: Great Wall Military Industry, Hunan Tianyan, Feiyada, Northern Long Dragon, Zhongguang Lightning Protection, Inner Mongolia First Machine
The content of this article is for record-keeping purposes only and does not constitute investment advice!