Private equity firms' March "treasure hunt" targets the electronics and pharmaceutical biotech industries

By (, @E1@

The latest data from the Private Fund Ranking Network show that in March, a total of 871 private fund institutions made trips between listed companies to conduct research. They covered 343 stocks across 27 Shenwan first-level industries, with a total of 2,752 research visits. During this period, 54 “top-tier” private fund institutions with assets under management exceeding 100 billion yuan were especially prominent. They collectively completed 354 research visits, and the two industries of electronics and biopharmaceuticals became the key areas of focus.

In March, 91 listed companies received key attention from private fund institutions, with each company receiving no fewer than 10 research visits. Among them, from the biopharmaceuticals industry, Mindray Medical ranked first with 105 research visits, drawing interest from 13 well-known 100-billion-yuan-level private fund institutions, including Shanghai High-Yield Asset Management Partnership (Limited Partnership) (hereinafter referred to as “High-Yield Asset”) and Danfoss Spring (Beijing) Investment Management Co., Ltd. (hereinafter referred to as “Danfoss Spring”). Also from the biopharmaceuticals industry, Wintai Healthcare was equally favored, receiving 54 research visits; eight 100-billion-yuan-level private fund institutions conducted in-depth “fact-finding” on it.

In March, the electronics industry, thanks to 592 research visits involving 58 companies, firmly held the top spot on the hottest track. In this industry, the presence of four companies—Yuanjie Technology, Shenzhen Sunlinn Circuit, Transsion Holding, and SAme Shanghai—appeared frequently near the top of private fund research rosters. They were researched 50 times, 48 times, 46 times, and 43 times, respectively. Among them, Yuanjie Technology can be considered a “popularity leader” in the electronics sector, attracting attention from well-known 100-billion-yuan-level private fund institutions such as Shanghai ZhonYun Investment Management Co., Ltd. (hereinafter referred to as “ZhonYun Investment”). The discussion focused on the company’s product progress in the CPO/NPO (co-packaged optical/near-packaged optical) field. Shenzhen Sunlinn Circuit drew a cluster of 12 100-billion-yuan-level private fund institutions, including Danfoss Spring and High-Yield Asset. Everyone was especially concerned about the development of its PCB (printed circuit board) business. Transsion Holding attracted attention because earlier it introduced Dr. Yu Dong, an expert in the international voice and artificial intelligence field; it received interest from 100-billion-yuan-level private fund institutions such as Shanghai Mingfeng Investment Management Co., Ltd., and research was conducted around Dr. Yu Dong’s core work tasks. SAme Shanghai received attention from Shanghai Ningquan Asset Management Co., Ltd. and Shanghai Panjing Investment Management Center (Limited Partnership) (hereinafter referred to as “Panjing Investment”); the research mainly focused on the company’s overseas market expansion and its 2026 order outlook.

Among the listed companies that private fund institutions researched frequently, many specialized and new (“specialized, refined, distinctive, and innovative”) enterprises emerged. Data show that among the stocks researched by private fund institutions in March, 104 were concept stocks related to specialized and new initiatives, accounting for more than one-third.

In terms of institutions, in March there were 53 private fund institutions whose research frequency was no fewer than 10 times. Among them, Shenzhen Shangcheng Yipin Asset Management Co., Ltd. ranked first with 61 research visits. The industry with the most researched stocks in its portfolio was the biopharmaceuticals industry (8 stocks), followed by electronics and computer industries (7 each). Guangdong Zhengyuan Private Fund Management Co., Ltd. (hereinafter referred to as “Zhengyuan Investment”) ranked second with 52 research visits, and its research focus was concentrated in the electronics industry, covering 11 related stocks. Among 100-billion-yuan-level private fund institutions, High-Yield Asset, Danfoss Spring, and Panjing Investment entered the top ten by number of research visits, and all of them are optimistic about the electronics and biopharmaceuticals industries.

Private fund institutions that actively conducted research generally hold an optimistic view of the market. Zhengyuan Investment’s fund manager Liao Maolin said to a reporter from the Securities Daily: “From late March to early April, the A-share market has shown a relatively independent trend, indicating that the market’s sensitivity to disruptions from geopolitical conflicts is gradually being toned down. Looking ahead, the market will enter a gradual de-sensitization and repair phase. However, before the disturbance factors have fully faded, the market is likely to remain dominated by structural features characterized by rotation with reduced trading volume, gradually brewing new main themes. It is recommended to focus on deterministic directions with clear industry trends and low linkage to geopolitical risk.”

“After recent adjustments, the upside space for the A-share market is actually even larger.” Tang Wei, fund manager of ZhonYun Investment, analyzed in an interview with a reporter from the Securities Daily: judging from the key factors affecting the market, the logic of an A-share “slow bull market” has not been broken. On the one hand, the trend of China’s economic transformation and upgrading remains solid. Although the current turmoil in the Middle East in this round has brought some impact to domestic raw material costs and export expectations, the overall impact is controllable. In the process, the stable and secure environment China has demonstrated, along with the resilience of its industrial chain, stands out even more on a global scale. On the other hand, in a domestic low-interest-rate environment, the attractiveness of adjusted stock assets to long-term capital has further increased, and the trend of all society’s funds moving toward allocation to equity-type assets will not change.

(Editor: Wen Jing)

Keywords:

                                                            Private funds