Preface

The arrival of the National Day holiday does not halt the pace of institutional investors. They continue their research activities to identify quality stocks and investment opportunities for the upcoming quarter. Between September 22nd and September 28th, around 200 listed companies were visited by institutional investors, with technology and advanced manufacturing firms featuring prominently. This enthusiasm reflects a strategic shift in investment focus for the fourth quarter.

Lazy bag

Institutional investor visits often reveal market preferences. The tech sector, including electronics, AI, and electrical equipment, draws significant interest, anticipating future growth.

Main Body

As the holiday approaches, institutional investors remain busy conducting research visits to various companies. Their primary goal during this period is to prepare for the upcoming 'autumn sowing' by identifying potential high-performing stocks. The week preceding the holiday, from September 22 to September 28, saw about 200 listed companies welcoming institutional investors. This trend was clearly evident in the technology and high-end manufacturing sectors, suggesting a strategic shift in investment focus for the coming quarter.

Institutional interest has predominantly fixated on companies' Q4 and future operational strategies. Key areas of focus have included company orders, production capacity, and international expansion plans, all indicating favorable prospects across various industries. This trend has been particularly pronounced in the technology, AI, and pharmaceuticals sectors, which continue to attract considerable attention.

Prominent among these is JingZhiDa, which received visits from nearly 150 institutions during the specified week. Investors have been drawn to JingZhiDa's progress in computational chip testing, with the company disclosing its strategic reserves in SoC (System on Chip) testing technologies. In the AI era, the synergy between computational and storage chips presents enormous business opportunities. JingZhiDa aims to collaborate closely with downstream clients to offer comprehensive high-end computational chip testing solutions.

Beyond computational technology, demographics from across the industrial spectrum, such as Innovative Pharmaceuticals and robotics, are experiencing a similar surge of activity. Leading firms like Precision Intelligent Technology, GaoWeida, and XinLiTai have all fielded inquiries about their respective innovations.

On September 23, a strategic partnership agreement was inked between Ant Financial and GaoWeida, focusing on AI data services for banking and fintech sectors. According to experts at GaoWeida, AI big data stands as a key strategic field, with global fintech market projections surpassing $450 billion by 2025. Companies now seek to marry technology with practical applications to leverage this vast market potential.

Meanwhile, AI applications in biopharmaceutical manufacturing are progressively advancing. XinLiTai's current AI endeavors target early-stage molecule design, clinical programming, and medical writing optimization, significantly enhancing R&D efficiency. Seiko Technology disclosed its strategy for robotics, revealing advancements in its single-joint exoskeleton robot line.

Evaluating order and production dimensions reveals ample order reserves and saturation in existing capacities across many enterprises, highlighting both individual business robustness and industry vitality. In the electronics sector, growing demand for computation and high-speed networking drives opportunities in the PCB business. For instance, Deep South Circuit's production capacity is primarily expanding through new factory constructs and existing facility updates, including a new phase four plant at Nantong and a Thailand plant.

Conversely, cable sector companies are experiencing 'orders chasing capacity.' For example, recently Huawutong Cables highlighted its production constraints limiting further order acceptance, spurring moves to expand capacity and update supply chain systems.

In the realm of new energy materials, this pattern of dual developments in production and sales continues with Rising Tech. Anticipating a product capacity of 80,000 tons annually following the construction projected for completion by 2025's second half, Rising Tech expects its manganese-iron-phosphate lithium cathode output to surge.

Beyond domestic arrangements, several firms are breaking new ground in overseas markets. This international thrust underscores an ambition to capitalize on burgeoning opportunities beyond China's borders.

Key Insights Table