In the context of Sino-US economic and trade interaction, two main lines are becoming the core focus of market funds: the long-term breakthrough of domestic substitution of semiconductors and the short-term recovery of cross-border trade.
One of them anchors the strategic direction of technological independence, and the other benefits directly from the loosening of trade barriers. The core targets of the two tracks are completely different from the market rhythm, and each contains highly certain investment opportunities.
Semiconductors: Domestic substitution is accelerating, and equipment and material leaders are the first to break through
The U.S. restrictions on chip exports have forced the domestic semiconductor industry chain to accelerate the process of independent control. Domestic substitution of equipment and materials is ushering in a substantial breakthrough, becoming the most certain main line of the current sector.
North Huachuang is the leader in domestic semiconductor equipment platform, covering etching, deposition, cleaning and other multi-step equipment. It is a benchmark enterprise for domestic equipment. Benefiting from the expansion of wafer fabs and the improvement of equipment localization rate, orders continue to increase.
China Microelectronics Corporation, the leader in etching equipment, has achieved breakthroughs in advanced process equipment below 5nm. Its technical strength is comparable to that of international giants, and it is one of the few companies with global competitiveness among domestic semiconductor equipment.
Tuojing Technology, the leader in thin film deposition equipment, has broken overseas monopoly in the field of PECVD equipment, and its domestic market share has continued to increase. It is the core beneficiary of the substitution of domestic equipment.
Shanghai Silicon Industry, the domestic leader in silicon wafers, has achieved mass production of 12-inch large silicon wafers, breaking the long-term monopoly of overseas companies. As domestic fabs expand production and the process of domestic substitution of silicon wafers accelerates, the company’s performance is expected to grow rapidly.
Anji Technology is the leader in semiconductor material polishing fluids. Its products are widely used in advanced process wafer manufacturing. Its domestic market share is firmly at the forefront, benefiting from the increase in the penetration rate of domestic materials.
Jiangfeng Electronics, the leader in semiconductor targets, is a technological leader in the field of high-purity sputtering targets. Its products have entered the supply chain of leading domestic and foreign wafer factories and are the core targets for domestic substitution.
Cross-border trade: Dividends are released from loosening barriers, and port logistics and payment links are the first to benefit
China-US economic and trade expectations are improving, and trade barriers are loosening, which has brought clear opportunities for orders and performance recovery to the cross-border trade industry chain. Leading companies in port logistics, cross-border e-commerce and payment links will be the first to benefit.
SIPG, a leading domestic port, is located in the core hub of the Yangtze River Delta. Its container throughput ranks among the top in the world. The improvement of Sino-US trade will directly drive the recovery of port business volume, and its performance growth is highly certain.
Ningbo Port, the leading port on the southeast coast, accounts for a high proportion of foreign trade container business. Benefiting from the rebound in foreign trade orders in the Yangtze River Delta, the port’s cargo throughput continues to grow, and it is the core beneficiary of the cross-border trade industry chain.
COSCO SHIPPING Energy, the world’s leader in oil transportation, is also developing container shipping business. As Sino-US trade volume rebounds, shipping rates are expected to stabilize and rebound, and the company’s performance elasticity is significant.
Small Commodity City is the leader in cross-border trade of small commodities in China. Relying on Yiwu’s market advantages, cross-border e-commerce and foreign trade orders have developed rapidly. Benefiting from the loosening of Sino-US trade barriers, order volume is expected to continue to grow.
Huamao Logistics, a leader in cross-border logistics, covers international freight forwarding and cross-border e-commerce logistics. As Sino-US trade picks up, demand for international freight forwarding business increases, and the company’s performance is expected to improve steadily.
Xinyada, a leader in cross-border payments, provides cross-border settlement services for foreign trade companies. Benefiting from the rebound in cross-border trade and the process of RMB internationalization, its business scale continues to expand.
Lakala, a leader in third-party payment, has a complete cross-border payment business layout. With the recovery of foreign trade orders and the increase in cross-border payment demand, the company’s related businesses are expected to develop rapidly.
The core differences and investment pace of the two main lines
– The core logic of the semiconductor sector is the long-term breakthrough of domestic substitution. It is suitable for leading companies that lay out equipment and materials, and focus on the fulfillment of performance brought about by order placement and technological breakthroughs.
– The core logic of the cross-border trade sector is the short-term recovery caused by the loosening of trade barriers. Priority is given to targets in port logistics and cross-border payment links, and attention is paid to the catalysis brought about by the rebound in foreign trade data and freight rates.
One of the two main lines looks at “breakthrough” and the other looks at “recovery”. Against the background of Sino-US interaction, each has a clear market rhythm and is a high-quality track with both certainty and flexibility in the current market.
