Public fund research heats up! Pharmaceutical and biological sectors receive 116 research visits in one week with "cliff-like first place," 4 "expected profit increase concept stocks" enter top ten of the list

Chinatimes.net.cn Reporter Zhang Mei Beijing Report

As the A-share market enters the critical period for annual and first-quarter earnings reports, the enthusiasm for institutional research has recently surged. According to the latest data from Public Fund Paimai, during the week of March 16 to 22, 119 public fund institutions conducted intensive surveys on 70 A-share stocks, totaling 570 research visits.

In this wave of research activity, performance growth concepts have become the main focus. Data shows that last week, 19 “profit forecast and growth concept stocks” received key attention from public funds. Notably, among the top ten stocks by research visits, Xinhecheng, Changgao Electric New, Shenkeda, and COFCO Technology stood out, with 25, 20, 17, and 17 visits respectively, making them the most sought-after stocks among institutions.

Blue Sail Medical Leads with 50 Visits

From an industry perspective, the pharmaceutical and biotech sector demonstrated strong appeal. Data indicates that last week, public funds researched a total of 9 stocks in this sector, with 116 visits, making it the only industry to surpass 100 research visits, clearly ahead of all other sectors.

Focusing on individual stocks, Blue Sail Medical was the most prominent last week. The company was visited 50 times, ranking first in the pharmaceutical and biotech sector and the most visited stock overall. According to research information, public funds mainly focused on the progress of Blue Sail Medical’s cardiovascular division’s new overseas product registration and sales, as well as pricing strategies and sales tactics post-group procurement.

Additionally, Aidi Te and Puluo Pharmaceutical, also in the biotech sector, performed well, with 22 and 21 visits respectively, ranking in the top ten. For Aidi Te, the focus was on customer acceptance of its price increase strategies and the promotion of its dental implant business; for Puluo Pharmaceutical, attention was on the long-term sustainability of its CDMO gross profit margin and how the company plans to grow its medical aesthetic raw materials business to 1 billion yuan within three to five years.

Machinery and Electronics Industry Enter Top Three

Besides pharmaceuticals, the machinery and electronics sectors also attracted significant research attention last week, with 79 and 57 visits respectively, ranking second and third among industries. As representatives of high-end manufacturing and technological innovation, these sectors’ economic outlook and order trends are closely watched by institutions amid current macroeconomic conditions.

In the machinery sector, nine stocks were researched, including Guangli Technology, Shenkeda, Ouke Technology, and Haineng Technology, each with at least five visits. Guangli Technology was visited 35 times, ranking second among all stocks; Shenkeda had 17 visits, making it into the top ten overall. The focus of institutional research on these companies generally centered on technological breakthroughs, new product launches, and the recovery of downstream demand.

The electronics sector, with 10 stocks receiving research, was the most covered industry last week. Companies such as Aobo Zhongguang, Dawei Shares, Shennan Circuit, and Zhishang Technology each received at least five visits. As the consumer electronics supply chain experiences cyclical fluctuations and increased localization, institutions are intensively researching leading companies with core competitiveness and resilient performance in niche areas.

Chuangjin Hexin Makes 18 “Moves”

At the public fund level, leading fund companies accelerated their research activities during this earnings window. Data shows that last week, 55 public fund institutions conducted at least five research visits, with nine reaching double digits.

Chuangjin Hexin Fund was the most diligent, with 18 visits last week. Its research targets were dispersed across industries but showed particular interest in machinery, covering Shenkeda, Haineng Technology, and Ouke Technology. Following closely, Huaxia Fund conducted 16 visits, also favoring machinery, covering Guangli Technology, Jingce Electronic, Shantui Shares, and Ouke Technology.

Bosera Fund, Ping An Fund, and China Merchants Fund each conducted 13 visits, ranking third. Notably, their strategies varied slightly: Bosera focused more on machinery stocks; Ping An emphasized biotech and pharma, including Blue Sail Medical, Aidi Te, and Puluo Pharmaceutical; China Merchants’ research spanned electronics and biotech, with three stocks in each sector. These subtle differences in research focus among top institutions may indicate varied investment priorities for the next phase.

What can public fund research tell ordinary investors about portfolio adjustments? Li Chunyu, a fund manager at Rongzhi Investment FOF, told Huaxia Times that research by public funds can provide useful references for individual investors’ portfolio adjustments, mainly in three aspects: First, indicating industry trends. The sectors most researched by public funds often have strong fundamentals or policy support, helping investors shift to high-confidence sectors and avoid weak ones. Second, aiding in stock selection. Public funds tend to focus on companies with strong earnings visibility and solid fundamentals, offering guidance to reduce the risk of “踩雷” (getting caught in poor investments). Third, offering allocation ideas. The industry distribution of research reflects fund managers’ style judgments, which can help individual investors with style-based allocation.

What is the outlook for the second half of the year? Rongzhi Fund told Huaxia Times that over the next six months, investment opportunities in the A-share market are expected to revolve around two main themes: “certainty” and “growth prospects.” Amid macroeconomic uncertainties, defensive assets with stable cash flows and high dividend yields, such as utilities and certain financial sectors, are likely to become more attractive. Meanwhile, changes in the global energy landscape also create structural opportunities in areas benefiting from energy security strategies and cost advantages, such as coal chemical, new energy, and energy storage sectors, which may see a window of growth.

Editor: Ma Xiaochao Chief Editor: Xia Shencha