First, the index performance is in line with expectations:
The start-up and science and technology innovation sectors fell by more than 1%, while the main board showed a slight increase.
The leading gainers are in the directions emphasized in recent days: going from high to low, focusing on high dividend stocks and those in a low position showing signs of recovery, such as the coal, tourism, hotel, traditional Chinese medicine, and fertilizer industries.
The leading losers are in the high-level correction, such as the automotive sector, and those affected by news, such as the optical electronics, consumer electronics, and semiconductor sectors. It is expected that this situation will continue.
Second, short-term sentiment.
The leading company in the 9-board sector, Yashili Optoelectronics, encountered a trading limit halt, with the current consecutive trading days reaching 5. Shenma Power has hit the limit with a focus on nuclear power, power grid equipment, and rubber.
Lidon Optoelectronics, with a focus on optical lenses, virtual reality, in-car lenses, and exports, has also hit the limit.
Intraday strength-wise, Shenma Power has a potential for 6 consecutive trading days, but its cost-effectiveness is no longer high.
When the leading stocks are in a downturn, short-term trading can be paused, waiting for a rebound in leading stocks or a change in sentiment before making a move.
The end of a consecutive trading halt implies waiting for the next opportunity, especially since the cycle of Yashili Optoelectronics seems to have ended.
Third, sector analysis.
1、Virtual reality:
Large US technology stocks led by Apple experienced a decline, dragging down the MR direction of A-shares. Shuangxiang Stock fell limit-down in the morning auction, dealing a heavy blow to the sector.
It may be advisable to wait for a day or two of adjustment before buying low in undervalued stocks within the sector. Banjie shares, a newly discovered stock in the morning, opened high and hit the limit, and similar new concepts may also be worth paying attention to.
2、Traditional Chinese medicine:
The sector, characterized by low valuation, high dividend yield, and a low position, performed well today.
Companies like Bushi Pharmaceutical, Jiangzhong Pharmaceutical, and Guilin Sanjin have dividend yields exceeding 5%, while Juzhitang and Enwei Medicine have dividend yields exceeding 3%, all showing long-term investment value.
Even though the dividend yield is much higher than bank deposits, it is not highly valued by many. Why is that? Those who don't trade stocks don't understand these things, and stock traders don't find a 4.5% annual return attractive...
3、Coal:
The Coal Index has a high dividend yield of 8.03% over the past 12 months, attracting recent favor from funds.
China Shenhua hit a 15-year high today, with a three-year increase of nearly 200%. Lanke Kechuang's profit distribution plan for the first three quarters was announced, with a cash dividend ratio of 62%.
Yankuang Energy has committed to a cash dividend ratio not lower than 60% from 2023 to 2025, with a per-share dividend not lower than 0.5 yuan.
Yankuang Energy is a dividend specialist; if bought in 2019, after several years of dividends, the cost is already negative.
The strong performance of coal stocks is also due to the restoration of import tariffs.
Starting from January 1, 2024, coal import tariffs have been restored, increasing import costs. Combined with the start of the domestic heating season and high-level operation of power plants, all have an impact on the price of coking coal.
4、Real estate:
Continuous updates on the real estate sector.
Yesterday, the minimum down payment for second-home improvement housing provident fund loans in Shanghai was lowered to 40%.
Insurance funds have established large real estate direction funds, and with the expectation of relatively loose liquidity in 2024, real estate may see a recovery.
The real estate sector has experienced a significant decline in the past two years and has its own rebound demand. Combined with industry recovery expectations, it is worth actively paying attention to.
5、Photovoltaics and lithium batteries:
After two trading days of adjustment, the lithium battery sector has temporarily stabilized.
Focusing on core companies like Tibet Mining and Jiangte Motor in this direction, buying a bit on the dip and selling a bit on the rise, it is expected to outperform the market in 2024.
Fourth, summary.
Continuously emphasizing high dividend yields, today continues: high dividend stocks may perform well in January and serve as a solid force against the index decline, continuing to allocate on dips.
Sectors that surged last year, if rebounding later, should be quickly exited, as they may underperform the index in 2024! Short-term direction is unclear; before standing on the trend line, the technical outlook is bearish.
