Consensus on broker recommended stocks for April

Brokerage firms’ monthly “top stock” portfolios have long been one of the barometers for institutional capital allocation. With the April investment window opened, and as of the time The Securities Daily reporter’s text was submitted on April 6, 42 brokerage firms have already released their monthly investment strategies, with a total of 315 individual stocks entering the April “golden stock” recommendation list. Judging from industry distribution and stock concentration, leading companies with global competitive advantages, along with sub-sectors that align with long-term industry trends, have become the configuration direction unanimously recognized by brokerage firms.

Focus on core high-quality assets

Among the many recommended targets, in April, Ningde Times, Inext (中际旭创), and BYD were the three most hotly recommended individual stocks, respectively receiving joint recommendations from 9, 8, and 7 brokerages, highlighting the trend of institutional capital concentrating on top-tier high-quality assets.

Specifically, Ningde Times has already been strongly recommended by nine brokerages: Haitong Securities? (华泰证券), Central China Securities (中原证券), Soochow Securities (东吴证券), Guotou Securities (国投证券), Bank of Chengdu? (中银证券), Guotai Junan? (国泰海通), Open Source Securities (开源证券), Huachuang Securities (华创证券), and CICC (中金公司). Open Source Securities’ stated rationale is that Ningde Times is the global leader in lithium batteries, with extremely strong earnings resilience. Against the backdrop of geopolitical factors disrupting the oil and gas price environment and pushing prices higher, its strategic position in the new energy sector is being elevated.

For Inext, Galaxy Securities (中国银河) believes that as artificial intelligence initiatives accelerate across the globe, the company, as a global leader, benefits from the growth in demand for high-speed optical modules represented by 800G. At the same time, as the penetration rate of silicon photonics optical modules rises, along with the mass production and large-scale shipments of 1.6T optical modules primarily based on silicon photonics, the company’s products have a foundation for both volume and price increases.

For BYD, Central China Securities believes that the commercialization of its super-fast flash charging technology will open a new product cycle and drive growth in domestic sales. Meanwhile, benefiting from rising oil prices, its export business is expected to continue to achieve strong growth.

From an industry perspective, according to statistics from Guosen Securities, in April brokerage “golden stock” focus areas are primarily concentrated in fields such as basic chemicals, electronics, non-ferrous metals, machinery, and communications. Brokerages have added more positions in industries including communications, banking, and transportation.

Regarding the overall assessment of the A-share market in April, brokerage analysts generally believe that the market is in a “relatively low point in the medium term,” and after risks have been sufficiently released, the probability of a rebound and upward trend through consolidation is relatively high.

“Right now may be the A-share market’s relatively low point in the medium term.” Li Jin, an analyst at CICC, said that although short-term price action still has uncertainty, after going through adjustments, risk in the A-share market has been further released, and valuations are at a relatively reasonable level. From a medium-term perspective, the macro environment the market is in has not undergone fundamental changes; the logic supporting the A-share market to “move steadily forward” still holds. Risk release and downward adjustment are expected to bring good configuration opportunities.

Yang Chao, Chief Analyst for Strategy at China Galaxy Securities, further analyzed that the three major logics—policy support, capital entering the market, and the re-pricing of Chinese assets—have not changed. The downside space for A-shares is relatively limited. External geopolitical conflicts have not shaken the underlying basis of China’s long-term “slow bull” for the medium to long term. It is suggested to adopt a strategy centered on earnings, while laying out positions when opportunities arise.

“Chinese assets internally have stability. In the medium term, they are expected to rebound and rise in a volatile manner; it’s recommended to seize the opportunity to position accordingly.” Zhang Yusheng, Chief Analyst for Strategy at Everbright Securities, said that China’s domestic market has a relatively high energy self-sufficiency rate, giving it a certain degree of resistance to sustained increases in external energy prices. In addition, judging from volatility in overseas markets over the past several rounds, domestic exports typically benefit as external uncertainties rise. Looking ahead to the medium term, Chinese assets internally have stability and are expected to attract continued inflows of capital.

In terms of specific configuration directions, Yu Xiang, Chief A-share Strategy Analyst at CITIC Securities, proposed three major configuration clues: first, stocks that saw relatively large pullbacks earlier, whose share prices have stabilized in the past week but whose fundamentals are stronger and with earnings that are being realized—such as chromium, copper, and rare earths; second, stocks whose demand narrative is relatively insulated from macro factors and that have independent industry trends—such as wind power, silicon carbide, home energy storage, and innovative drugs; third, stocks with relatively rigid demand but with supply that faces clear constraints. Under oil-price shocks, profits are likely to flow to the most tightly supplied demand-supply links within each industry chain, such as glyphosate and refrigerants.

Golden stocks in March showed structural characteristics

Looking back at the performance of brokerage “golden stocks” in March, data from Wind Information shows that amid increased market volatility, out of 342 golden stocks that month, 62 achieved share price gains, representing about 18.13%, with structural characteristics being evident.

In terms of individual stock performance, in March there were four golden stocks with gains exceeding 20%. Among them, the top performer was Fosuo Technology (佛塑科技), recommended by China Merchants Securities, with a gain of 35.16%; second place was Yuanjie Technology (源杰科技), jointly recommended by Pacific Securities (太平洋证券), Central China Securities (中原证券), and Shenwan Hongyuan Securities (申万宏源证券), with a gain of 30.59%. Guosen Securities’ recommendation, Asin Integration (亚翔集成), and Soochow Securities’ recommendation, Baofeng Energy (宝丰能源), followed with gains of 24.74% and 21.44%, respectively.

In addition, WeChat? (卫星化学) recommended by Haitong? (东海证券), BYD recommended jointly by AVIC Securities (中航证券), Yangtze Securities (长江证券), and Haitong International (海通国际), Ningde Times recommended jointly by Huachuang Securities (华创证券), Guolian Minsheng (国联民生), and CICC (中金公司), Nuocheng Jianhua (诺诚健华) recommended by Ping An Securities, and Huagong Technology (华工科技) recommended by Central China Securities—all saw gains of more than 15% that month. These covered multiple areas ranging from upstream materials to high-end manufacturing, information technology, and biomedical pharmaceuticals, showing that in a volatile market, precisely selecting industry tracks is the key to achieving excess returns.