Three Clues To Pulse The Market Opportunities

After overtaking repair in 6 and July, the market needs to accumulate further upward momentum. The pressure from the pre intensive trading area and the annual line makes the shock digestion the main keynote of the next stage.

Coupled with the high price trend in the late period, the policy will still be restricted. In the context of moderate economic growth, the policy level will suppress inflation and tighten monetary space, which will create a disturbance to the market.

In the short term, the conjecture of policies and the screening of the growth of listed companies will become the main concern of investment in August. From the current point of view, the conditions for market reversal are not available. We should pay attention to the following three investment opportunities: first, the steady growth industries of Chinese newspapers, such as food and beverage, textile and garment, etc., two is the industry that has picked up in the second half of the year, such as power equipment and machinery industry, and three is the small and medium sized board stocks with growth support.

The four major industries are the main force of the Chinese newspaper market.

According to the expectation of the China Daily, the companies with stable mid term performance concentrated in liquor, medicine, textile and clothing, coal and other industries.

From the performance forecast of the first half of 2011 released by some listed liquor companies, the net profit has increased substantially year by year. The price rise of medium and high grade liquor is the main reason for the increase of gross profit margin, and the increase of raw material prices has relatively little impact on the profit of enterprises.

In the second half of this year, the liquor industry will usher in the peak season of production and consumption, and the scale and profit level of liquor production and sales is expected to further improve.

Coal industry, because demand is still strong, the contradiction between supply and demand of coal industry is difficult to eliminate, coal prices and quality coal listed companies are still worth watching.

Judging from the expected performance, the two quarter off-season and the anti seasonal sales prices rose, resulting in industry profit growth in the first quarter of the year to continue to improve, and because the peak summer and coal storage in the second half of the year, it is expected that the coal industry's annual profit growth will reach about 20%.

From the first half of the year, the medium-term performance of the pharmaceutical industry remained stable, and most of the two quarter profit growth exceeded the first quarter.

Last year, the profit growth rate of the pharmaceutical industry showed a gradual downward trend in each quarter, with a lower base in the second half of this year. The profit growth rate showed a recovery trend this year, showing a trend of "low before and after high" throughout the year, and the annual growth rate of the pharmaceutical industry is expected to remain above 20%.

On the other hand, in the first half of 2011, the adjustment period of the pharmaceutical sector was longer and the adjustment range was larger.

It is suggested that the key varieties include excessive market worry about undervalued varieties, pharmaceutical related industries that are not affected by price cuts, resource listed companies and innovative pharmaceutical companies.

In terms of textile and garment industry,

Three industries rebound in the second half of the year {page_break}

In addition to the industry where the growth of China's newspaper performance is more determined, the industry picked up in the second half of the year, such as power equipment and communications.

In terms of the power equipment industry, the State Grid's investment in smart grid in the first half of the year is lower than expected, and the second half is expected to accelerate construction. UHV AC pmission projects have not made progress yet, and hope for approval is placed in the second half of the year.

In terms of communication equipment industry, the performance growth of relevant companies in the telecom equipment industry, which is mainly invested by the operators, has a steady expectation. The investment opportunities of the optical communications sub industry and the wireless equipment sub industry are worthy of special attention. Such companies will benefit from the recognition of overshoot rebound and stable growth.

Machinery industry, the main engine sales in the two quarter fell as expected. Its share price has already reflected the expectation of the slowdown in investment growth. The industry will continue to maintain prosperity in the context of investment driven economic growth mode. In the second half of this year, the performance growth of the industry is expected to exceed expectations under the guidance of water conservancy construction and affordable housing construction.

Small and medium sized gold stocks

Under the uncertain macro environment, the overall valuation level of small and medium sized boards and gem still has considerable moisture. From top to bottom, there is still room for downside earnings forecasts.

But noteworthy highlights are: first, the emerging industries such as energy saving, environmental protection, new energy, smart grid, Internet of things, electronic components, greening and garden decoration, which are gathered in small and medium sized ones, are still the long-term investment direction under the background of pformation. Secondly, some small and medium sized growth companies are wrongly killed. The investment value of some high-quality stocks is highlighted, and better market elasticity determines that these stocks will stand out in the rebound of market activity.

For the investment of small and medium-sized plates, we think that bottom-up choice is particularly important for certainty of performance growth.

It is noteworthy that the performance of medium and small board companies and GEM companies obviously faces two kinds of situations: compared with the early warning of the performance of GEM stocks, the performance growth of small and medium-sized companies can still be punctuated.

From the point of view of the industry sector, some companies that are relatively well adjusted in valuation and relatively profitable in terms of electronic components, energy saving, environmental protection, consumer medicine, high-end machinery and equipment, computer software and other industries should be given priority attention.