Starting Point of Slow Bull

Starting Point of Slow Bull Weichai Heavy Machinery is a leading domestic ship power enterprise. Its performance and stock price have hovered at low levels for many years, mainly due to the stable development of the civil shipbuilding industry. Recently, two factors may bring about an increase in the prosperity of the ship power industry. First, the most serious floods since 2008 broke out in many places this year. Under the guidance of the policy of making up for shortcomings, localities are expected to increase the allocation of flood control vessels as standing disaster relief materials. Second, the impact of African swine fever, coupled with the impact of this year's floods causing a reduction in feed corn production, meat prices will still hover at high levels, the residents' dietary structure will be passively improved, and the demand for aquatic products will further increase, driving the prosperity of aquaculture and ocean fishing, which will in turn be transmitted to ship machinery, and Weichai Heavy Machinery will continue to benefit. Topics: Startup, Management.

Weekly Thoughts

On July 30, nearly half a month after the release of economic data for the first half of the year, the Political Bureau of the CPC Central Committee held a meeting. Xinhua News Agency today gave an interpretation of the meeting “First Observation | What profound meanings did this informative Political Bureau meeting reveal”. CITIC Securities analysis pointed out that moving towards the second centenary goal as planned aims to stabilize external expectations and release a signal that China does not want major subversive changes in the international pattern.

The establishment of long-term goals sets the tone for stable development, and the whole society is no longer eager for quick success and instant benefits, and a slow bull can be expected. From now on, it is necessary to gradually establish a “socialist bull” market positioning, and seize the investment logic of making up for shortcomings and refining long boards. Use value investment methods to explore high-quality targets.

Weekly Events

Nongfu Spring passed the review and is about to be listed on H-shares. Hangzhou will give birth to a large number of billionaires again. In “Plastic Porter”, we have already said that Nongfu Spring is not a packaged water company, but a material trading company. Through raw material price band operation, hedging and other financial means, it obtains maximum benefits.

Weekly Market

Period: 2020720-20200726

The three major indices of A and H shares ended their two-day decline and began to rebound. The Chinese stock market began to gradually decouple from the US stock market and walked out of an independent market. Shanghai Stock Connect saw net outflows for three consecutive weeks, and Shenzhen Stock Connect ended net outflows for two consecutive weeks.

Hot Industry Concept Board

From the perspective of Wind Level 4 industries, system software, biotechnology, hotels, resorts, and precious metals were among the top gainers, while photography supplies, apparel retail, real estate services, and oil and gas drilling were among the top losers. This week, aquatic products, Tibet revitalization, and vaccines were among the top gainers, while north-south ship merger, propylene, polypropylene, and China FAW were among the top losers.

Market (%)	Index	This Week	1 Week Ago	2 Weeks Ago	3 Weeks Ago
Shanghai Composite	3310.01	3.54	-0.54	-5	7.31
Shenzhen Component	13637.88	5.43	-1.37	-4.07	9.96
ChiNext Index	2795.4	6.38	-1.3	-4.18	12.83
Hang Seng Index	24595.35	-0.45	-1.53	-2.48	1.4
HSCEI	982.9	0.06	-1.59	2.82	3.22
Red Chip Index	4011.91	1.38	-2.07	-4.76	4.37
Dow Jones	26428.32	-0.16	-0.76	2.29	0.96
Nasdaq	10745.28	3.69	-1.33	-1.08	4.01
S&P 500	3271.12	1.73	-0.28	1.25	1.76

Shanghai-Shenzhen-Hong Kong Stock Connect

Market (CNY, Billion)	This Week	Previous Week	2 Weeks Ago	3 Weeks Ago
Shanghai Connect	-115.24	-156.05	-51.01	137.32
Shenzhen Connect	72.67	-91.43	-140.15	144.76
Hong Kong Connect	25.23	139.13	154.41	292.06

Positions

Opened a position in Weichai Heavy Machinery this week. Weichai Heavy Machinery is a leading domestic ship power enterprise. Its performance and stock price have hovered at low levels for many years, mainly due to the stable development of the civil shipbuilding industry. Recently, two factors may bring about an increase in the prosperity of the ship power industry. First, the most serious floods since 2008 broke out in many places this year. Under the guidance of the policy of making up for shortcomings, localities are expected to increase the allocation of flood control vessels as standing disaster relief materials. Second, the impact of African swine fever, coupled with the impact of this year’s floods causing a reduction in feed corn production, meat prices will still hover at high levels, the residents’ dietary structure will be passively improved, and the demand for aquatic products will further increase, driving the prosperity of aquaculture and ocean fishing, which will in turn be transmitted to ship machinery, and Weichai Heavy Machinery will continue to benefit.

Type	Code	Name	This Period Dynamic
Stock	SZ002241	Goertek	Clear
Stock	SZ000880	Weichai Heavy Machinery	Open Position
Stock	OEG	OEG	Clear
Stock	SNSS	SNSS	Open Position
Fund	F210008	Golden Eagle Strategy Allocation Mixed	Increase
Fund	F001351	Nuoan CSI 500 Index Enhanced	Clear
Fund	F163115	Shenwan Lingxin CSI Military Industry Index	Clear
Fund	F270010	Guangfa CSI 300 Index	Clear
Fund	F260104	Invesco Great Wall Domestic Demand Growth Mixed	Increase
Fund	F000566	Huatai-PineBridge Innovation Upgrade	Increase
Fund	F320022	Nuoan Research Selected Stock	Increase
Fund	F001692	Southern National Policy Power Stock	Increase
Fund	F163415	Xingquan Commercial Front-end Load	Increase
Fund	F519674	Galaxy Innovation Growth Mixed	Increase