In today's Brokerage morning meeting, HTSC proposed to focus on investment opportunities in sectors benefiting from domestic demand and new Consumer sub-sectors; China Securities Co.,Ltd. stated that the decrease in Real Estate sales and new starts has significantly narrowed, showing ongoing effectiveness in stabilizing after the decline; Galaxy Securities believes that the coal and electricity regulation ability has been further strengthened, and the reconstruction of the sector's valuation is expected to accelerate.
On April 18, the Financial Association reported that the market opened low yesterday and fluctuated before rebounding, with the three major Indexes mixed, and the Shanghai Composite Index recorded an 8-day rise. The total trading volume of the Shanghai and Shenzhen markets was 999.5 billion, a decrease of 112.4 billion compared to the previous trading day, marking the third time this year that it fell below one trillion. In terms of sectors, epoxy propane, food, Real Estate, and tourism saw the largest gains, while cross-border payments, Autos, ports, and Rare Earth Permanent Magnets experienced the largest declines. By the close yesterday, the Shanghai Composite Index rose 0.13%, the Shenzhen Component Index dropped 0.16%, and the Chinext Price Index increased by 0.09%.
In today's Brokerage morning meeting, HTSC proposed to focus on investment opportunities in sectors benefiting from domestic demand and new Consumer sub-sectors; China Securities Co.,Ltd. stated that the decrease in Real Estate sales and new starts has significantly narrowed, showing ongoing effectiveness in stabilizing after the decline; Galaxy Securities believes that the coal and electricity regulation ability has been further strengthened, and the reconstruction of the sector's valuation is expected to accelerate.
HTSC: Focus on the sectors that benefit from domestic demand and the investment opportunities in new consumer segments.
HTSC reported that, according to data from the National Bureau of Statistics, the total retail sales of consumer goods in March reached 4.1 trillion yuan, an increase of 5.9% year-on-year (Wind's consensus forecast was 4.2%), and the growth rate improved by 1.9 percentage points compared to January to February. Under the policies aimed at stimulating the replacement of old products, the growth rate of total retail sales of consumer goods has accelerated, with significant growth in upgraded categories such as home appliances, communication equipment, and Sports entertainment products, and the core CPI has rebounded. Looking ahead, potential external pressure from tariff conflicts exists, and expanding domestic demand has become an important strategy for stabilizing the economy. With the continued rollout of national consumption stimulus policies, there is a Bullish outlook on structural opportunities in the Consumer Sector, focusing on investment opportunities benefitting from domestic demand and new Consumer segments.
China Securities Co., Ltd.: The decline in Real Estate sales and new construction significantly narrowed, and the effectiveness of stabilizing the drop is continuously evident.
China Securities Co.,Ltd. indicated that in March, the nationwide sales area of commercial housing decreased by 0.9% year-on-year, narrowing the decline by 4.2 percentage points compared to January to February, with signs of stabilization. The improvement in sales is more evident in high-tier cities, although the sales growth rate remains in negative territory, and the market stabilization trend needs further consolidation. Real estate companies maintain a strong enthusiasm for acquiring land in core cities, while the premium rate for residential land sales in first and second-tier cities remains high; at the same time, the enthusiasm for starting construction by property developers has also improved significantly, with the decline in newly started construction area in March substantially narrowing.
Galaxy Securities: The coal and electricity adjustment capacity has been further strengthened, and the revaluation of the sector is expected to accelerate.
Galaxy Securities stated that the National Development and Reform Commission and the National Energy Administration have released the "Implementation Plan for Upgrading Coal Power in the New Generation (2025-2027)". The plan further deepens and expands coal power based on the "Three Reforms and Linkages".Technical IndicatorsThis system guides the transformation and upgrading of existing units, the construction and operation of new units, and the demonstration of the new generation of coal power pilots. The investment in upgrading and transforming coal power is expected to accelerate; after transformation, coal power is expected to achieve excess returns through markets such as spot and Carbon Trading, reflecting the adjustment value and environmental value of the units. The Thermal Power Sector suggests paying attention to leading enterprises with strong operational management capabilities; the upgrading and transformation of coal power will also open up space for hydropower and the absorption of New energy Fund.
