As of October 11, 2024, there are as many as 950 listed companies on the A-share market with stock prices lower than 5 yuan, but 10 stocks have become the 'favorites' of the social security fund and have been significantly increased in holdings.

It's noted that Jiangsu General Science Technology from the tire sector (601500), along with Zhejiang Yankon Group, Anhui Wanwei Updated High-Tech Material Industry, Shenzhen Kingsino Technology, Xinxing Ductile Iron Pipes, Baoxiniao Holding, CNOOC Energy Technology & Services, Beijing Geoenviron Engineering & Technology, Inc., Tangshan Port Group, and Nanjing Iron & Steel, have all been selected. Despite their low prices, the favor of the social security fund has made them the sudden focus of the market.

"Low-price stocks" are attracting attention from the social security fund. The reason is that many low-price stocks have solid performance and potential behind them. As a model of long-term value investment, the social security fund focuses on in-depth analysis of the long-term investment potential of stocks rather than short-term market price fluctuations. Therefore, when these low-price stocks are undervalued, the social security fund decisively increases its holdings.

Among these companies, Jiangsu General Science Technology, as one of the leading tire companies in China, has significant room for growth due to its remarkable international development advantages. The company achieved a net income of 0.287 billion yuan in the first half of the year, a year-on-year increase of 393.32%; achieved a non-net profit of 0.276 billion yuan, a year-on-year increase of 514.84%. The continuous increase in holdings by the social security fund indicates confidence in the future development of Jiangsu General Science Technology.

From building the first overseas production base in Thailand in 2019, to constructing the second overseas production base in Cambodia in 2022, Jiangsu General Science Technology has become the first in the industry to achieve full production at the 'dual overseas bases' in 2024, entering the 'fast lane' of globalization layout. By adhering to top-level design and innovation leadership, the company continues to promote the internationalization, intelligence, and greenization of industrial upgrades. Practicing the '5X Strategic Plan', aiming to achieve 5 major production bases and a production scale of 50 million tires by 2030, Jiangsu General Science Technology has successfully overcome external macro-environmental challenges and difficulties in overseas factory construction to achieve remarkable progress. Currently, the company's annual production capacity at the dual overseas bases is approximately 24.5 million semi-steel tires and 2.95 million all-steel tires.

Since the opening of the Thailand and Cambodia bases, Jiangsu General Science Technology has seen booming production and sales with overflowing orders. To fully meet the strong demand in overseas markets, the company's Thailand Phase II project and Cambodia Phase II project successfully started operations on June 28th and August 28th, 2024, and are expected to become new growth points. In addition, the company has announced plans to further promote the selection and construction of a third overseas base to continuously enhance its international market competitiveness.

In terms of technological innovation, Jiangsu General Science Technology is vigorously fostering new productive forces. The company's leadership introduced that in 2024, focusing on the pain points of new energy vehicles, they launched differentiated products such as the Qianlima Longma series ET commercial vehicle tires, EV passenger vehicle tires, and noise-reducing cotton puncture-resistant tires. These products highlight advantages in comfort, fuel efficiency, wear resistance, and handling, which are well received by users. The Qianlima GA8 performed on par with top international brands in third-party tests, and the independently developed multiple racing tires have achieved excellent results in international competitions. Furthermore, the company's cutting-edge technology, the 'Eucommia Gum Technology', in new energy passenger car tires has achieved mass production, marking a significant breakthrough in the industry.

In terms of market promotion, Jiangsu General Science Technology is accelerating the construction of market channels, continuously speeding up the establishment of overseas offices in key countries and localizing marketing services, advancing product innovation, brand store construction, and marketing empowerment. The company has deepened cooperation with leading customers in the United States, Europe, Southeast Asia, and other countries and regions, while actively participating in international tire exhibitions such as SEMA in the United States, Cologne in Germany, and Dubai, to promote new product launches, special marketing seasons, and other terminal channel activities, continuously enhancing brand influence.

On October 8, at the Jiangsu General Science Technology's 2024 interim performance briefing, Chairman Gu Cui stated that the increasing global total automobile fleet and the rapid growth of new energy vehicles will continue to drive strong growth in tire demand. The superior cost-effectiveness of domestic tire brands is becoming more apparent, with continuously increasing market share overseas, demonstrating a trend of upward penetration. With the steady growth of automobile production and sales, it is expected that future tire demand will continue to improve.

In fact, in the global market, Chinese tire companies are also accelerating their rise. According to the 2024 Global Tire Top 75 list compiled by TireBusiness based on the 2023 global tire companies' sales revenue, there are a total of 38 Chinese companies, accounting for over half, with a total sales revenue of approximately $38.14 billion, a year-on-year increase of 15.14%, far exceeding the average growth rate of 2.43% of the 75 companies on the list.

Looking at the development of top tire companies worldwide, it is not difficult to find that a stable global layout is an important engine for expanding sales scale. With the steady global economic recovery and continuous rise in tire industry demand, the tire industry is entering a period of high prosperity. Jiangsu General Science Technology, actively expanding overseas, has always been led by innovation. Through diversified layouts and a combination of both domestic and international markets' dual-wheel drive, it is expected to develop even bigger growth space, and will also provide more outstanding performance to social security funds and the wider investors.