In today's brokerage morning meeting, htsc stated that the construction of a national unified electrical utilities market is accelerating, with a bullish outlook on three main lines; Galaxy Securities indicated that 5G applications are expected to develop on a large scale, selecting high-quality symbols with improved marginal prosperity; haitong sec expressed a bullish view on the steady rise of rare earth prices.
On December 4th, Caixin reported that the market was volatile and divergent yesterday, with the Shanghai Composite Index slightly stronger and the Chinext Index making a small adjustment. The total turnover of the Shanghai and Shenzhen markets for the whole day was 1.72 trillion, a decrease of 70.8 billion from the previous trading day. Throughout the day, market hotspots rapidly rotated, but overall strength was limited, with many high-priced stocks plummeting at the close. In terms of sectors, the diamonds, convertible bond concept, logistics, and real estate sectors led the gains, while e-commerce, agriculture, gaming, and semiconductor sectors led the declines. At the close of trading yesterday, the Shanghai Composite Index rose by 0.44%, the Shenzhen Component Index fell by 0.4%, and the Chinext Index fell by 0.44%.
In today's brokerage morning meeting, htsc stated that the construction of a national unified electrical utilities market is accelerating, with a bullish outlook on three main lines; Galaxy Securities indicated that 5G applications are expected to develop on a large scale, selecting high-quality symbols with improved marginal prosperity; haitong sec expressed a bullish view on the steady rise of rare earth prices.
htsc: The construction of a national unified electrical utilities market is accelerating, bullish on three main lines.
HTSC believes that the national unified electrical utilities market will provide an important mechanism foundation for building a new electrical utilities system and enhancing the new energy consumption capacity in China, helping to solve the spatial issues in the new energy consumption bottleneck. The investment themes continue to be bullish on structural growth of wind power demand under the backdrop of constructing a new electrical utilities system, continued construction of the main grid at high voltage and ultra-high voltage levels, and accelerating distribution grid transformation and upgrade. The flexibility of the grid brings about the demand for upgrading and transforming the distribution grid. As the proportion of new energy distributed increases, power resources increase at the local and county levels, relieving the pressure on power balance not only on the main grid, necessitating the expansion of the distribution grid to enhance capacity for charging stations and distributed resources. At the same time, the distribution network ecosystem has changed, and achieving source-grid-load-storage integration at the distribution level is more economical, requiring more intelligent control to achieve "four capabilities", bullish on smart meters and distribution grid transformers benefiting.
Galaxy Securities: 5G applications are expected to scale up, preferring high-quality symbols with improved marginal prosperity
Recently, the Ministry of Industry and Information Technology and others jointly issued the "5G Scale Application "Sailing" Action Upgrade Plan", aiming to continuously enhance the industrial full-chain support, network full-scene service capabilities, and multi-level collaborative eco-driving force of 5G scale applications, to fully promote 5G to achieve a broader, deeper, and higher-level multi-dimensional empowerment. Galaxy Securities' research report believes that 5G applications are expected to scale up, preferring high-quality symbols with improved prosperity in the communication sub-sector. The 'Sailing Upgrade Plan' focuses on the upgrades in application, industry, network, and ecology, systematically advancing relevant work on 5G scale applications, strengthening multi-level collaborative innovation in the communication industry chain. Against the backdrop of the continuous enhancement of the digital economy's 'AI+' action and the empowerment of new applications for the industry, the national integrated computing power system's new infrastructure is expected to be consolidated.
Recommend focusing on: Telecommunication operators leading network infrastructure upgrades and new space, including China Mobile / China Telecom / China Unicom; optical module leader Zhongji Innolight / Eoptolink Technology Inc. / Suzhou Tfc Optical Communication; leading companies in smart construction and operation such as Runjian Co.,Ltd.; Internet of Things and advanced applications including Fibocom Wireless Inc. / Meig Smart Technology / Willfar Information Technology / Beijing Inhand Networks Technology.
haitong sec: bullish on the steady rise in rare earth prices
Haitong Securities believes that rare earth prices have already completed the bottom adjustment, and the price rebound reflects the support of rare earth smelting production costs. In the context of demand recovery, they are bullish on the steady rise in rare earth prices. The rare earth supply pattern is improving, with domestic supply growth slowing down, and limited foreign supply in the short term. Additionally, the formal implementation of the 'Regulations on the Management of Rare Earths' will further strengthen the supply constraints of rare earths. At the same time, the continuous growth in demand for new energy, robots are expected to become the next demand hotspot. In terms of inventory, the recovery of downstream demand has led to a decrease in inventories of downstream products such as dysprosium iron, metal praseodymium neodymium, and sintered neodymium iron boron. In terms of costs, due to the high concentration in the rare earth industry and the national production quotas and controls on production levels, the production costs in the rare earth industry provide strong support for prices.
