Institutional Buy Calls! Hillhouse, Feng Liu's Top Holdings See 30% Upside!

Here is the translation of the provided text into English: "Mocking 3000 points, questioning 3000 points, accepting 3000 points, envying 3000 points, looking up to 3000 points, adapting to 2700 points."

A joke that sums up the endless heartache of A-share investors.

Although the overall performance of the A-share market is heartbreaking, in conjunction with the international market, the undervaluation of A-shares is obviously already quite attractive.

And looking at the trend of individual stocks, there are no lack of strong stocks born in the weak market.

Since entering September, securities firms are still actively analyzing listed companies, and more than a hundred companies have been given target prices by securities firms that are more than 50% higher than the current stock price, and many of them have already been heavily held by well-known investment institutions such as Hillhouse and Gaoyi.

On September 4, the Shanghai Composite Index fluctuated and closed at 2784 points.

After more than half a year, A-shares once again lost the 2800-point mark.

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And the bottoming out is not yet over.

On September 6, the Shanghai Composite Index once again fell to 2765 points.

Since the adjustment began on May 21, the cumulative decline has reached 12.78%, and the Shanghai Composite Index has successively broken through the 2900-point and 2800-point integer marks, and the daily turnover has also fallen from the previous trillion yuan to less than 500 billion yuan.

From August 12 to 14 this year, the A-share market's daily turnover was below 500 billion yuan for three consecutive trading days, and then it increased in volume, but on August 28, it shrank again to 49.8952 billion yuan.

Looking at the historical data, the last time the daily turnover was less than 500 billion yuan was on May 25, 2020.

Regarding the continued low turnover of A-shares, Meng Lei, a China equity strategist at UBS Securities, believes that it is mainly caused by a lack of market confidence and pressure on mid-term performance, among other factors.

In his view, the catalyst for the market is still on the policy side, waiting for a new round of stimulus policies to be introduced, and the market is expected to improve after the confidence is truly boosted.

"Although the market is currently in a relatively low-spirited position, the regulatory authorities have repeatedly spoken out in support of the A-share market, and have also seen the strategic importance of the A-share market to the country's economic development.

At this point, the downside risk is controllable, and it is more about waiting for a catalyst or the so-called signal."

Meng Lei said.

Although the overall performance of the A-share market is heartbreaking, in conjunction with the international market, the undervaluation of A-shares is obviously already quite attractive.

And looking at the trend of individual stocks, there are no lack of strong stocks born in the weak market.

Huawei concept stock Shenzhen Huaqiang has won 16 consecutive daily limit-ups in 17 days, and the market jokingly said, "Perhaps the sky is the limit."

Also a Huawei concept company, KeSen Technology has also strongly closed out 10 consecutive daily limit-ups in the past 10 days, and similar performances include Xin Ya Process, whose stock price has also risen rapidly recently and has successively closed out several daily limit-ups, and Xin Ya Process is also involved in the Huawei concept.

Since entering September, securities firms are still actively analyzing listed companies.

So far, a total of 1,022 companies have received the latest buy ratings from securities firms.

Among them, 447 companies have been given a clear target price by securities firms, 266 companies have a target price that is 30% higher than the current latest closing price, 126 companies have a target price that is 50% higher than the current latest closing price, and the target prices of 12 companies such as Junshi Biosciences, Inspur Information, and Bionic Lefen are expected to double the current stock price.

Investors can also pay attention to the public number and leave a message in the background "the rise space is more than 30%" to get the complete table without any conditions.

"Is it already profitable?"

Every time the performance is released, the vast majority of innovative drug companies have to face such a "soul question".

Junshi Biosciences, which has come to the spotlight with the PD-1 star product Tevaplizumab, disclosed its performance on the last day of August.

Although it is still losing money during the reporting period, the loss has narrowed.

Thanks to the significant increase in sales of the core product Tevaplizumab, the company's revenue in the first half of this year also achieved nearly a 20% increase.

Zhou Yu, an analyst at Pacific Securities, said that in 2024, the domestic sales of Tevaplizumab continued to increase, and maintained a high growth trend, coupled with the expectation of being approved and listed in more overseas regions in the future, thus predicting that the company's operating income in 2024, 2025, and 2026 will be 2.065 billion yuan, 3.579 billion yuan, and 4.703 billion yuan respectively, and the net profit attributable to the parent company will be -1.227 billion yuan, 0.24 billion yuan, and 0.929 billion yuan respectively.

Assuming a WACC of 9% and a perpetual growth rate of 3%, using the DCF method and the NPV method for valuation and taking the average of the two, the target market value is calculated to be 59.394 billion yuan, corresponding to a future stock price of 60.26 yuan, with a rise space of up to 146.06% compared to the current stock price.

Artificial intelligence, AI concept stock Inspur Information has been recognized by Guotai Junan, and its analyst Zhu Lijiang believes that the company achieved a revenue of 42.064 billion yuan in the first half of this year, a year-on-year increase of 68.71%, and a net profit attributable to the parent company of 0.597 billion yuan, a year-on-year increase of 90.56%, and continues to maintain a high increase, which is in line with market expectations.

The company is a leading enterprise in the global server industry.

According to the latest data released by Gartner and IDC, in the first quarter of 2024, the company's server market share continued to rank second in the world and first in China.

With the continuous evolution of large models and generative AI, intelligent computing power has become the mainstream computing power.

As a leading intelligent computing enterprise, the company continues to improve and strengthen the layout of intelligent computing product technology, promoting and leading the development of the intelligent computing industry.

In terms of algorithms, the company has launched the enterprise large model development platform EPAI, supporting more than 20 heterogeneous accelerated computing chips, reducing the trial and error costs for enterprises to develop large model applications, and also launching the "Source 2.0-M32" open source large model, helping enterprises to achieve efficient landing of AI applications.

In terms of computing power, the company has launched a number of stable and efficient multi-computing power AI server products, and has jointly released an AI general server with Intel, for the first time in the industry, realizing that the server runs a large model with hundreds of billions of parameters based on a general processor, flexibly meeting customer needs.

The high demand for AI computing power is expected to drive the company's business to exceed expectations.

On September 5, the latest research report from Guotai Junan stated that it is expected that Inspur Information's earnings per share in 2024, 2025, and 2026 will be 1.7 yuan, 1.98 yuan, and 2.26 yuan respectively, with a year-on-year increase of 40%, 17%, and 14%.

Considering the continuous promotion of AI computing power demand on the company's performance, the expected target price is 72.58 yuan per share.

Observing the companies that have been optimistic about the securities firms and have a target price that is more than 30% higher than the current stock price, there are many companies that have already been held for a long time by well-known institutions or investors.

For example, Tongrentang, an old Chinese medicine company that has been held for a long time by the star fund manager Feng Liu of Gaoyi, has maintained a counter-trend growth and stable development trend despite the overall pharmaceutical industry moving forward under pressure.

During the reporting period, the company achieved a revenue of 9.763 billion yuan and a net profit attributable to the parent company of 1.021 billion yuan, respectively, a year-on-year increase of 0.02% and 3.49%.

In the first half of the year, Tongrentang continued to implement the strategy of major varieties and boutiques, and through optimizing and implementing marketing reforms, continuously improved the quality of operations and the penetration rate of the entire variety of e-commerce channels, and enhanced the core competitive advantage of the company.

Dai Wen, an analyst at Huatai Securities, said that it is expected that the company's net profit attributable to the parent company in 2024, 2025, and 2026 will be 1.96 billion yuan, 2.33 billion yuan, and 2.74 billion yuan respectively, with a year-on-year increase of 17%, 18%, and 18%, thus giving the company a target price of 50.02 yuan, which is nearly 50% higher than the current price.

Tongkun Shares, which was newly held by Feng Liu at the end of the second quarter, achieved a revenue of 48.215 billion yuan in the first half of the year, a year-on-year increase of 30.67%, and a net profit attributable to the parent company of 1.065 billion yuan, a year-on-year increase of 911.35%.

Although the market performance has been poor since July, it has recently been optimistic about Guotai Junan and has been given a target price of 15.7 yuan.

Longi Green Energy, which has been held for a long time by HHLR Management Co., Ltd. - China Value Fund (Exchange) and Chen Fashu of Hillhouse, and iFLYTEK, which has been held for a long time by Ge Weidong, have also been given higher target prices by securities firms."

Please note that the translation provided is a direct translation of the original text, and some terms and phrases may not have direct English equivalents, so they have been translated based on their meaning in the context.