Private Equity Boosts Research on Consumer Sector as New Favorite

Since October, the market has experienced a volatile rebound, and private equity research has also gone full throttle. The latest statistics from Private Equity Ranking Network show that in the first half of October, more than 200 private equity firms have conducted research on 45 listed companies, including several strong stocks with a price increase of more than 40% in the first half of October. In terms of industry distribution, the consumer sector has become the new favorite of private equity research, with many leading private equity firms increasing their layout in the consumer sector. In the view of industry insiders, under the continuous release of policy benefits, the structural market trend of A-shares is expected to continue, and the consumer sector, which has benefited from policy support and has previously fallen deeper, is worth focusing on and exploring.

Statistics from Private Equity Ranking Network show that in the first half of October, a total of 246 private equity managers participated in the research of listed companies, covering 45 listed companies in 27 secondary industries of Shenwan, with a total of 345 research visits.

Since October, several leading private equity firms have researched rapidly rising targets. The data shows that among the 16 listed companies that have been researched by private equity no less than 5 times since October, Tianma New Materials, RoboTech, and Qinglong Pipe Industry have seen their stock prices increase by 62.08%, 49.7%, and 48.74% respectively in the first half of October. Among them, Tianma New Materials has attracted private equity research from Chengrui Investment, Tongyi Investment, Hongcheng Investment, etc., and RoboTech has attracted private equity research from Zhengyuan Investment, Qushi Assets, Shanghai HeXi Private Equity, Evolution Theory Assets, etc.

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In terms of industry distribution, consumption has become a key focus of private equity research. According to statistics, among the 27 secondary industries covered by private equity research, the five industries of leisure food, software development, motorcycles and others, chemical pharmaceuticals, and communication equipment have been researched more than 20 times. At the same time, Jinzai Food is the company with the most private equity research visits since October.

JinZai Food is a modern food enterprise integrating R&D, production, and sales. The company's product matrix covers three major categories: fish products, bean products, and poultry meat products, forming seven major product series represented by "small fish, quail eggs, dried tofu, dried meat, konjac, vegetarian meat". From the research records, institutions are quite concerned about JinZai Food's new product launch plan, overseas sales targets, and the pace of new product launches.

In addition to intensive research, several leading private equity firms have recently directly increased their positions in the consumer sector. Zhu Jigang, General Manager of Xita Investment, said that in the short term, under the general market rise pattern, the main performers are industries that have previously fallen more and have a collective consensus. However, in the medium term, the market will gradually focus on industries with improved fundamentals. The industries that the company has recently increased its holdings in are mainly the internet, consumption, consumer healthcare, and new energy, and it will optimize the portfolio according to the changes in fundamentals.

Yuan Le Sheng Assets also frankly stated that before the policy inflection point appeared, the company's portfolio configuration direction was mainly focused on technology, resource products, and the internet. Recently, with the unexpected release of policy benefits, the company has made moderate adjustments in structure, reduced the configuration of resource products, and increased the configuration of consumption and internet sectors. After a long period of deep adjustments, industries such as consumption and the internet, which have benefited from policies, may see unexpected increases.

Wang Sheng, Senior Fund Manager of Xing Shi Investment, analyzed that the start of a new economic cycle will create new investment opportunities. Under the continuous efforts of policies, the economy is likely to recover steadily afterwards, and the stock market will enter the second stage accordingly. In this process, growth assets in the cyclical sector will receive a boost on the performance level, thereby opening up room for valuation increases. Therefore, growth stocks in the consumer and technology sectors are worth focusing on.Looking ahead to the fourth quarter, the effects of the relevant policies that have been introduced will gradually become apparent, playing a positive role in improving the economic fundamentals and market risk appetite. The founder of a private equity firm said that in terms of the subsequent allocation structure, one can be optimistic about the consumer and technology sectors that have been oversold and have lower valuations, especially the consumer sector, which will also benefit from consumer promotion policies and "trade-in" policies.