Rebirth of the Capital Legend

"There's no problem overall." Su Yi put down the fund investment strategy report in his hand and said, "But what do you think about the theme investment sector of 'security lens'?"

Hearing Su Yi's words, Hou Baolong asked, "Mr. Su, do you think... there is a problem?"

"No." Su Yi smiled and said, "I just want to hear what you think about the future prospects of this theme investment sector, and why you think the demand in this industry will have explosive growth in the future."

Wang Yifan coughed lightly and said, "According to the industry tracking data of the analysis groups of our investment strategy department, in the past year, the performance of the 'security lens' industry has shown significant growth due to equipment updates, the full popularization of 4G networks, and the implementation of the national 'Sky Eye' plan.

Moreover, due to equipment updates and the comprehensive deployment of new networking equipment.

It is obvious that in the next one to two years, the demand in the entire market will further show explosive growth.

As for why we chose "Hikvision" and "Dahua Holdings" as the entry points for this thematic investment sector.

This is also because these two companies have strong enough competitiveness in the entire industry.

And also, things related to technology and technical products.

Based on the past market development history and the changes in corporate competitiveness under product iteration, it has always been the industry leader that has an absolute advantage and a winner-takes-all situation.”

"Yeah." Su Yi listened to Wang Yifan's analysis and nodded slightly, "The market for technology products does have this characteristic."

"So, Mr. Su agrees with our strategy logic for the theme of 'security lens'?" Wang Yifan got Su Yi's approval and said with a little excitement, "I believe that with the further outbreak of market demand for 'security lens', as industry leaders, 'Hikvision' and 'Dahua Technology' will definitely have a good market trend, and the market trend will not be short-lived."

"What about commercial real estate development?" Su Yi did not think there was anything wrong with the investment strategy of investing in the field of 'security lenses', especially in the two stocks 'Dahua Technology' and 'Hikvision', and building positions. Instead, he turned his thoughts to the investment strategy report formulated by both parties, regarding the theme investment field of 'commercial real estate development', and the logic of selecting corresponding stocks. "Why did you focus on selecting the core stocks of 'Hengda Real Estate', 'Rongchuang Real Estate', and 'Longhu Real Estate' as breakthrough points?"

Hou Baolong said: "Based on our tracking of housing prices in various cities, as well as data tracking of new buildings and new land acquisitions by well-known real estate developers, we can clearly perceive that the real estate markets in cities across the country have entered a bull market stage.

During the outbreak phase of the entire industry...

Comprehensive operating data of a number of development companies in the industry.

We believe that the two major companies, Hengda Real Estate and Rongchuang Real Estate, have the most explosive potential in terms of their current land reserves and national strategic layout.

As for 'Longhu Real Estate', we chose it mainly because of its rich experience in core commercial development.

Moreover, the assets are of high quality and the valuation is the most undervalued.

If the national housing prices and real estate market continue to boom.

The performance growth of these three companies should be the fastest and most violent, and among them, I am most optimistic about the explosive power of "Rongchuang Real Estate".

Because this company is expanding rapidly into cities of all levels across the country.

Another reason is that its current market value is the lowest and it has no historical baggage. In the context of the real estate bull market, its growth rate is extremely fast.”

"Since you are optimistic about the future of the 'commercial real estate development' sector and believe that we are currently in a bull market..." Su Yi paused and said, "Why haven't you made corresponding arrangements for the construction and decoration sector, which is closely related to the real estate market boom, as well as upstream sectors such as steel and cement?"

Wang Yifan replied: "Although the property market is bullish, the real estate market is booming, and the further progress of 'urbanization construction' is beneficial to the relevant industrial chains such as construction decoration, steel, cement, and upstream sectors, but in terms of performance explosiveness and the depth of the market, I think the construction decoration, steel, cement and other sectors mentioned by President Su still have flaws in investment, at least in our current selection."

"Tell me in detail." Su Yi said with a smile.

Wang Yifan thought for a moment and responded: "First, the construction and decoration market is relatively fragmented, and there are no sufficiently competitive companies with the certainty of the real estate sector. Secondly, although the steel sector is also in the process of reversing the industry cycle and is also an industry that the country has proposed as the focus of the 'supply-side' reform, due to the price of iron ore, we do not have a dominant position in the international market. In addition, due to the heavy historical burden of national steel companies and the low net profit margin, even if the industry cycle reverses, even if the downstream real estate industry and infrastructure demand have increased significantly, it is difficult to change the status quo of the entire industry and make it have a fairly strong expectation gap and market explosiveness.

The coal industry is completely different in this respect.

We have absolute control over coal pricing, and macro-control is strongly policy-driven.

This means that when the industry cycle reverses, the coal industry will be able to erode a lot of profits in the thermal power industry, and will have a very strong expectation gap and explosive power.

This is similar to the logic behind our investment in the new energy 'lithium battery' sector some time ago.

As for the cement sector, although the overall demand has increased overnight with the explosion of the real estate industry, the expectation gap and explosive power are slightly insufficient.

So, in the end we take into account the expectation gap in investment and the explosiveness of market expectations.

The target stocks are only locked on a few leading real estate stocks in the "commercial real estate development" sector.

Oh, one more question..."

Wang Yifan paused, and then said, "Manager Hou and I have some disagreements on the issue of diversifying and concentrating investments, and I would like to hear General Manager Su's suggestions."

As he spoke, Wang Yifan told Su Yi about the controversy that had arisen among the visitors at noon.

After listening to Wang Yifan's words, Su Yi pondered for a moment and responded: "Concentrated investment and diversified investment are relative issues. What we call risk diversification is to spread funds across multiple industries with high prosperity. The so-called concentrated investment is to firmly establish a certain industry with high prosperity and obtain market excess returns through concentrated investment.

And I am looking at it based on what Yifan said just now.

It seems that what you have been arguing about is whether to concentrate your positions in selecting industry-leading stocks, or to choose a number of relatively high-quality and undervalued stocks in the industry for a balanced investment layout.

If this is the debate...

Then I think the best strategy should be to focus on industry-leading stocks, or potential stocks with huge expectation gaps and explosive power.

I think our 'Hua Yi Expedition No. 1' fund product.

The investment strategy that should be adhered to is to diversify industry investments, while concentrating positions on leading stocks with strong expectation gaps and explosive power, or potential stocks. "

"There is one more thing." Hou Baolong thought for a moment and said, "At present, the new energy sector, especially the stocks in the 'lithium battery' related industrial chain, have been pushed to high levels by market funds, fulfilling most of the previous expectations of everyone's optimism about the industry. I think at this time, should we start to gradually build positions in stocks on this main investment line and realize profits, so as to increase the layout in the fields of 'commercial real estate development', 'coal', 'security lenses', etc.?

Moreover, I heard that since the country issued the "new energy vehicle" subsidy policy this year, various subsidy frauds have emerged.

Nowadays, relevant departments have begun to plan to rectify this chaos.

There is a high probability that the corresponding "new energy vehicle" subsidy policy will be cancelled or reduced next quarter or next year, or the corresponding rules will be stricter.

If the market forms this expectation and corresponding policies are implemented afterwards.

This will undoubtedly have a significant impact on the companies in the new energy industry chain, which are currently experiencing a boom in capital investment and have high market expectations, as well as the demand in the field of lithium batteries. "