Wen / Wan Yongqiang (Director of Zhitong Financial Research Center)
[Jinri Toutiao]
1. According to SIPRI statistics, world military expenditure has started a new round of growth since 2016. In 2020, the proportion of world military expenditure in global gross domestic product (GDP) increased by 0.2 percentage points to 2.4%. With the deterioration of the international security situation, world military expenditure has increased year by year. The United States, Russia, Britain, France and other world military powers have gradually increased the proportion of military spending in GDP since 2018.
At the same time, China's defense expenditure increased by 6.8% in 2021 compared with the same period last year, ending the decline in growth for three consecutive years (during the 13th five-year Plan period, the defense budget increased by 7.6%, 7%, 8.1%, 7.5% and 6.6%, respectively).
However, the proportion of China's defense expenditure in GDP is still significantly lower than that of military powers such as the United States and Russia, the problem of mismatch between national defense strength and economic strength is still obvious, and there is much room for improvement in the future.
Comments:The military industry is still in an upward business cycle, from downstream machine factories to upstream raw materials and accessories, the enterprises involved can benefit. It is expected that the upcoming "1 August" Politburo meeting will form guidance for programmatic documents in areas such as army building and equipment development in the future, or become an important short-term catalyst for the plate market. The main varieties are AVIC (02357), China Shipbuilding Defense (00317) and Guangqi Science (00439).
2. The focus of technological innovation! Huawei's first Mini LED smart screen will be launched in the future.
On July 26th, Huawei released a poster, which is scheduled to release Huawei's smart screen V75 Super on July 29th. The poster shows that the smart screen backlight relies on up to 46080 Super MiniLED chips, fine light control, but also can truly restore natural color. At the same time, the smart screen system will use HarmonyOS2. This is the first MiniLED product released by Huawei after Samsung, LG and other big display manufacturers.
Comments:Mini LED is the future development direction, the main varieties are Xinli International (00732), Jingdong Jingdian (00710), Huaxian Optoelectronics (00334), Jingmen Semiconductor (02878).
[general trend study]
The trend of the market is worse than expected, with the Hang Seng Index falling by more than a thousand points.
The collapse of the education sector has a far-reaching impact on the market, this sector is basically abandoned, transformation is the only way out, such as vocational education and quality education, it is estimated that these two tracks will become crowded again. Before the transformation, the road is tortuous and long, so it is recommended not to grab and rebound easily.
At the same time, real estate stocks in the increase in the down payment, hit the property management stocks, this kind of variety because of the high position, the main force felt a chill, but also afraid of the policy when to come. As a result, there has been a centralized cash out of the situation.
The medical profession is also worried that a new round of collection will emerge at any time, so they are in a hurry.
The life of the Internet giant is also difficult, the anti-monopoly is still going on, and most of the varieties are broken.
As a result of the sharp fall, great changes have taken place in the market logic, and varieties with policy risks have run away one after another. Funds turn to the direction strongly supported by national policies, such as chip SMIC (00981), Huahong Semiconductor (01347), Fudan Fuhua (01385) and so on. There are other strong brokerages, the specific logic of which can be found in the daily unwinding.
This break down, is a new round of reshuffle, the next variety will be the direction of the future capital chase. Short-term look at the military industry, MINILED, medium-term continue to be optimistic about lithium electricity, photovoltaic, chips and other varieties.
[hot plate analysis]
The Securities Regulatory Commission released the results of the classification of securities companies in 2021 on the evening of July 23. The number of Class A securities companies has increased. This year, there are 50 Class A companies, an increase of 3 over last year, of which 15 are AA companies, the same as last year, and 35 Class A companies, 3 more than last year. Some small and medium-sized securities firms with characteristic business get bonus points, and nearly 20 small and medium-sized securities firms are rated as Class A Class A.
Comments:Specifically, the brokerages that have won the AA rating are Anxin Securities, Oriental Securities, Everbright Securities, Guangfa Securities, Guotai Junan, Guoxin Securities, Huatai Securities, Ping an Securities, Shenwan Hongyuan, Societe Generale Securities, Galaxy Securities, China Merchants Securities, China International Capital Corporation, CITIC Construction Investment and CITIC Securities. Among them, Guotai Junan Securities and China Merchants Securities have maintained the AA level for 14 years in a row. It is worth noting that Oriental Securities (03958) and Guangfa Securities (01776) were promoted to AA. Upgrading shows that the business of the enterprise is better, and there will be more room for development in the future.
[announcement highlights]
1. Minimally invasive Healthcare (00853): MicroPort Cardiac Rhythm Management C round financing of US $150 million was introduced to investors such as Hillhouse.
Zhitong Financial APP News, Mini Chuang Medical (00853) issued an announcement that on July 26, 2021, several member companies of the Group entered into an agreement with a total of 8 investors, according to which these investors and subsidiaries agreed to make additional capital injection to the target company by subscribing for round C preferred shares of the target company, with a total amount of US $150 million.
It is reported that the target company MicroPort Cardiac Rhythm Management Limited is mainly engaged in managing the design, development and global commercialization of arrhythmia treatments, as well as cardiac resynchronization therapy (CRT) for heart failure. Its products include PLATINIUMTM implantable defibrillator series, 1.5T and 3T whole body magnetic resonance compatible ENOTM, TEOTM and OTOTM pacemakers. In 2021, Target Group launched new pacemaker series ALIZEATM and BOREATM, which have Bluetooth ®technology and wireless remote monitoring function.
In addition, these investors include investor A for SPR-VI Holdings Limited, Hillhouse Investment as Hillhouse Fund IV, L.P. The only management company, while Hillhouse Fund IV, L.P. Owns investor A. Investor B is Star Lee Limited, which is wholly owned by CGVC Company Limited and is an indirect wholly-owned subsidiary of Country Garden Holdings Company Limited (02007), a major property developer in China. Investor C is Everfund and its investment manager is Yong Rong (Hong Kong) Asset Management Limited, which is controlled by Yong Huang and authorizes Xiaoxiao Cai to manage Everfund's investments. Investor D is a special purpose company wholly owned by CICC Healthcare Investment Fund, L.P. Investor E is L Squared Bio Investment I Limited Partnership and is committed to investing in health care companies. Investor F is Worldstar Global Holdings Limited, focusing on equity investment opportunities in emerging industries. Investor G is Yi Fang Da Sirius Inv. Limited, an investment company controlled by Yifangda Asset Management (Hong Kong) Co., Ltd. Investor H is China World Investment Limited, an indirect wholly-owned subsidiary of China International Capital Corporation (03908).
Comments:This capital increase and the introduction of new investors will bring the target group the funds needed to further strengthen its product research and development and market development, thus helping the target group to better enhance its market competitiveness, broaden market resources and promote rapid development. At the same time, this capital increase and the introduction of new investors are also conducive to further enhance the group's brand influence and market value. The main points: 1, there is a high-level endorsement, itself is the appeal; 2, there is still a lot of room for development in the current market scale and localization rate in the field of neural intervention, and the above collection conditions are not yet available. Some industry insiders predict, "roughly estimated that at least in the next 3-5 years, this field is still in the window of rapid development, and it is unlikely to be included in the collection."
2. Zhitong Financial APP News, Lianyirong Technology-W (09959) issued an announcement that on July 26, 2021, the company spent HK $46.7926 million to buy back 3.723 million shares at a repurchase price of HK $11.98-HK $12.76 per share.
Comments:Lianyirong's own "high-quality genes" and strong background add a lot of color to it-Tencent is the company's largest shareholder, with a combined shareholding of more than 19%. In several rounds of financing, the famous China Merchants Ventures, CITIC Capital, Singapore Government Investment and Bertelsmann have joined one after another. Not only that, its IPO cornerstone investment camp has introduced international top capital such as BlackRock and Sequoia. Lianyirong has a diversified and high-quality customer base: in 2020, it has cooperated with more than 340 core enterprises, covering more than 25% of China's top 100 enterprises and more than 200 head financial institutions. Relying on the strong flywheel effect to achieve efficient customer acquisition and strong customer retention, Lianyirong's financial technology solution customer retention rate reached 99% in 2020. This strong buyback is the best response to shorting.
Statement: all the analyses in this column are for sharing and communication only, and do not constitute suggestions for the sale and sale of specific securities, and do not represent the interests of any organization. At the same time, there may be biased views, for reference only. Readers should carefully consider whether the analysis in this article is in line with their own situation, make their own investment decisions and bear their own investment risks.