The ChiNext Index plunged nearly 4% in late trading, with more than 30 stocks in the two cities falling below their limits. Fuel cells, industrial hemp, intellectual property, and sub-new stocks were the main force in the decline.

is written in front:

The three major A-share stock indexes fell unilaterally throughout the day, and the bulls showed no resistance. The ChiNext Index once plunged nearly 4% in late trading, and more than 30 stocks in the two cities fell by the limit. Material batteries, industrial hemp, intellectual property, and sub-new stocks became the main forces of decline. Agricultural stocks continued to be strong. The chip concept bucked the trend and hit the daily limit. . The market sentiment has reached a freezing point again. The market has a defensive mentality. is patiently waiting for the index to stop falling and stabilize. .

As of the close, the Shanghai Composite Index fell 2.48% to close at 2882 points; the Shenzhen Component Index fell 3.15% to close at 9000 points; the GEM Index fell 3.58% to close at 1478 points. The net outflow of Shanghai Stock Connect was 3.2 billion, and the net outflow of Shenzhen Stock Connect was 1.95 billion.

Yesterday’s market hot spots were: rare earths, agriculture-pesticides and large aircraft. The logic is still in the MYMC environment, starting from the logic of countering opponents. Today, only agriculture is sustainable.

Yesterday’s ban on Huawei on the other side of the ocean caused national concern. However, an internal letter from HiSilicon in the early morning gave us a glimpse of Huawei’s pattern. Domestic chips have become one of the few bright spots today.

1. Strategy research report

The core of the strategy report is to grasp the main contradictions within the strategy cycle.

In the short term, the 5 market will still be in a state of adjustment and shock. There are large variables in external factors, and investors' risk aversion has increased.

From a medium-term perspective, ’s larger-than-expected tax and fee reductions have brought the bottom of profits to an early stage. The fourth quarter of 2018 may be the bottom of the profit cycle. However, considering that there is a time lag between the introduction of policies and the display of financial report data, the bottom may continue to stay for some time.

In the long term, A shares may be slowly developing for the first time in their history. The capital market has set the tone of "one hair has an impact on the whole body", focusing on indirect financing and leaning towards direct financing; medium and long-term funds are entering the market.

The top ten technological progress trends driving A-shares - China Merchants Securities

With the opening of 5G investment, the rapid development of communications is expected to promote a new round of product innovation and technological progress; artificial intelligence applications (government, home, driving, fintech), new energy Technology, intelligent equipment, etc. will lead a new round of intelligent revolution, so this article summarizes the top ten technological progress trends . The above technological progress is the basis of the bull market of technology companies.

. 2019 is the first year of 5G pre-commercial use.

comments: In the future, it will be the basis for scientific and technological progress.

. "Beidou-3" is basically completed, and the downstream industry is facing good development opportunities.

comments: A model of military-civilian technology integration.

. The next wave of smartphone replacements will depend on the introduction of 5G new technology .

comments: The new momentum in the consumer electronics industry is expected to drive a rebound in mobile phone sales.

4. Large funds and the Science and Technology Innovation Board assist the localization of semiconductors and .

comments: Semiconductors require reverse investment + heavy asset investment. Without the help of large infrastructure, it is difficult for the localization of semiconductors to develop rapidly.

5. New energy vehicles are in a period of switching between old and new kinetic energy . New energy vehicles are experiencing a gradual decline in subsidies, and future growth will rely more on the release of consumer demand.

6. The photovoltaic industry reduces costs and improves efficiency. The main tone of the photovoltaic industry after experiencing suppression is industrial upgrading and cost reduction; there is huge room for improvement in domestic demand and strong growth momentum in overseas demand.

7. The development of intelligent manufacturing equipment industry has become an important direction for the transformation and upgrading of my country's manufacturing industry; industrial robots and CNC machine tools are two important areas.

8. The policy environment , hardware environment and market environment required for the development of the cloud computing industry are basically mature, the market leader effect will be more obvious, and private cloud will gradually transition to public cloud.

9. Artificial intelligence is penetrating into various fields , including artificial intelligence security, smart driving, smart home appliances, wearable devices, smart customer service, etc. As technology continues to improve, huge market space will be released in the future; financial technology is gradually penetrating and changing the traditional financial service model.

0. Automobiles are intelligent and connected.The smart driving test standard has been released, and many car manufacturers have developed L3 or L4 smart driving vehicles and formulated mass production plans. At the same time, favorable policies are frequently coming out, and real-life scenario experiments are accelerating.

Dry Information Research Report Note: The importance of technology is self-evident. Specific to the investment in technology stocks, there are major difficulties: uncertainty of growth and generally high valuations. The first problem of can be solved by reading more research reports; the second problem is to seize the investment opportunities brought by the recent sharp decline. Tomorrow, the important contents of the research report will be compiled into a separate document. Welcome to pay attention.

Analysis of the impact of Sino-US MYMC and related industries - Great Wall Securities

The impact of Sino-US MYMC on related industries: We analyze from four dimensions, including MYMC, the area where the United States and Canada impose tariffs, , Industries with a high proportion of trade between China and the United States , A shares account for the largest share of U.S. revenue in the industry , Industry performance in MYMC interpretation since last year . Overall conclusion:

Looking at in the short term, the upgrade of MYMC is better than in the direction of import substitution (agricultural products, large aircraft, etc.). In addition, precious metals, military industry and other industries also benefit;

MYMC is negative The United States specifically targets the 2-0-2-5 related industries (aerospace, information and communication technology, machinery) that impose additional tariffs on China's manufacturing, and the main industries that China exports to the United States (mechanical and electrical products, miscellaneous products, textiles, metal products), Industries in which U.S. revenue accounts for a relatively high proportion of the revenue of Chinese listed companies (technology hardware, consumer discretionary, medical supplies).

In the medium and long term, , MYMC will force China to accelerate the construction of an endogenous national innovation system, and industries related to independent innovation will have long-term investment opportunities.

From the perspective of CITIC's first-level industries: (1) The industries that are positively affected by MYMC mainly include national defense and military industries, non-ferrous metals (precious metals), agriculture, forestry, animal husbandry and fishery, banks, public utilities, catering and tourism (duty-free industry). Among them, agriculture, forestry, animal husbandry, fishery, catering and tourism (duty-free industry) will benefit from the logic of import substitution and rising inflation; the national defense and military industry will benefit from the logic of tense international relations under the interpretation of MYMC; industries such as precious metals, banks, and public utilities will benefit from risk aversion and defense logic.

(2) The industries affected by MYMC with short and long positions are mainly industries related to technological innovation. In the short term, it will be suppressed by the United States, but in the medium and long term, it will benefit from its own innovative logic. Continue to pay attention to industries such as computers, electronics, communications (5G), medicine (innovative drugs), and select high-quality stocks from the bottom up.

(3) Industries that are relatively negatively affected by MYMC include machinery (some industries have a negative impact on exports), light manufacturing (some companies have large exports to the United States and are concerned about overseas production capacity layout), and transportation (a reduction in short-term trade volume is negative) Shipping) etc.

Dry research report Note: Due to space issues and sensitivity issues, this article does not excerpt more content. This research report is a professional research report that I have personally read about the MYMC process introduction and industry impact. It is recommended in every Please read the detailed version or the original PDF of the daily research report.

2. Industry research report

Buying stocks means buying an industry. Choosing the right industry is very important. The goal of the industry research report is to help everyone understand and explore the current booming industries.

Domestic chips - Guotai Junan

The industry is recovering, and independent controllability is imminent.

In the context of MYMC, it is necessary to accelerate the realization of independent controllability of semiconductors. Mainland China's integrated circuit market reached US$250 billion in 2018, but only 12% of it was supplied by Chinese manufacturers. At the same time, according to data from the General Administration of Customs, China's integrated circuit imports reached US$310.4 billion in 2018, accounting for 14.5% of China's imports that year, making it the largest imported commodity. Integrated circuits and software are strategic, basic and leading industries that support economic and social development. We must promptly study and improve the next step of supporting policies to promote the development of the integrated circuit and software industries to a higher level. Therefore, it is an inevitable choice to achieve independent controllability under the background of MYMC and vigorously develop integrated circuits.

The indicator of the proportion of non-finished goods in inventory, which reflects the dynamic trend, has stabilized and rebounded, indicating that the global destocking cycle has come to an end. Comprehensive Broadcom, TSMC, SMIC , STMicroelectronics and other leading companies' latest quarterly reports all pointed out that 1Q19 was the low point of the economy for the whole year, and the economy recovered in the second half of the year. Both the data side and the industry have reached the same conclusion. Therefore, we believe that this round of destocking cycle has come to an end and the industry will stabilize and rebound soon.

The market and production capacity supply are both in China, and the transfer of the integrated circuit industry is the general trend: (1) Mainland integrated circuits are ushering in a new round of factory construction peak. In the next few years, mainland China’s wafer capital expenditure will be on the order of hundreds of billions. At the same time, the proportion of domestic investment will increase significantly. In particular, wafer fabs represented by Yangtze Memory, Hefei CXin and other memory fabs will be put into operation one after another, which will significantly boost the technology and performance of domestic equipment manufacturers. breakthrough. (2) In the 5G+AI era, mainland China’s voice has increased. In the 5G field, Huawei has launched a full set of 5G commercial network solutions based on non-standalone networking (NSA). The 5G base station core chip Tiangang + terminal Kirin 1020 baseband chip core technology is independently controllable; AI field HiSilicon 7nm Ascend 910 cloud computing The capability significantly exceeds NVIDIA V100, and 5G+AI is expected The voice of Times Continental chip companies will be significantly enhanced.

investment advice: The semiconductor industry is recovering, and independent control of chips is the general trend. We continue to be optimistic about the follow-up opportunities in the sector. Specific to the stock selection ideas, we believe that there are three main lines: wafer production line promotion, high-tech major technological breakthroughs, and independent controllability. We recommend Weill Technology, Wingtech , SMIC, Northern Huachuang, Shengmei Semiconductor, Goodix Technology, Ninestar, Guoke Micro , etc., and Ziguang Guowei and other leading companies are expected to benefit. .

Domestic substitution in the communications industry - Guosheng Securities

mymc creates opportunities. Domestic substitution is at the right time

The communications industry is the first to bear the brunt of the shortcomings of "strong systems and weak devices". Since last year, global trade protectionism has risen. The communications industry is both a representative of high-end manufacturing and the cornerstone of information security, thus becoming the "frontier" of mymc. In the context of the upcoming 5G, we have been alerted to some of the deficiencies in the underlying construction of domestic hard technology.

has turned "danger" into "opportunity", and MYMC has given domestic alternatives a good opportunity to take the stage. experienced ZTE’s chip embargo in 2018, and Chinese people paid more attention to the lack of hard technology. The state also continues to support the development of scientific and technological enterprises oriented by hard technology in terms of policies. Equipment manufacturers such as Huawei and ZTE are bound to start to favor domestic manufacturers in their choice of upstream suppliers. Previously, the penetration rate of domestic products in PA, FPGA, circulators and other devices was far below 50%. Domestic upstream manufacturers have taken this opportunity to welcome A round of development opportunities is expected to transform the previous "vicious cycle" of no singles and no property into a "virtuous cycle" of promoting production through sales. From 1G to 5G, we have witnessed the counterattack of the domestic communications industry, and high R&D expenditures have paved the way for domestic substitution.

focuses on the domestic substitution process in industries such as "circulators, PAs, filters, FPGAs, high-frequency and high-speed materials, connectors, and industrial switches". The main root cause of 's "weak devices" lies in semiconductors, and making up for shortcomings does not happen overnight. There are some companies in the industry that are gradually growing into high-quality domestic upstream suppliers. They have made significant breakthroughs in technology, process, patents, etc., and have even passed downstream certification and provided stable supply. We believe that with the support of giant companies such as Huawei and ZTE, new leading companies are expected to be born in these industries.

investment advice: recommends paying attention to domestic alternative combinations, circulator: Tianhe Defense (300397); PA: Haite High-tech (002023); filter: Dongshan Precision (002384); FPGA: Unisoc Microelectronics (002049); High-frequency and high-speed materials: Huazheng New Materials (603186); Connectors: Yonggui Electrical Appliances (300351); Industrial Internet operating system: Dongtu Technology (300353).

Huawei industry chain - Huatai Securities

Born for 5G, Huawei cycle is expected to start

Historical reference: the rise of Apple and Apple’s industry chain in the 3/4G era. Since Apple released its first disruptive smartphone in 2007, Apple has developed into a global consumer electronics leader with its excellent product performance and user experience.For Huawei's industrial chain, although there is also the problem of compressing suppliers' profits, this is not the main contradiction. Scale effect is the key.

With 5G as the core and comprehensive strategic layout, Huawei's future growth potential may be further unleashed. As 5G commercialization approaches, Huawei has accelerated its pace of growth. According to the latest financial report, in the first quarter of 2019, Huawei achieved sales revenue of 179.7 billion yuan, a year-on-year increase of 39%, which was further accelerated compared to the 19.5% growth rate in 2018. At present, Huawei is focusing on 5G's forward-looking layout of new scene entry points: smart homes, smart TVs, folding screen mobile phones, VR equipment, etc. We believe that in the future in the 5G era, Huawei's growth potential is expected to be further released.

investment advice: Born for 5G, Huawei’s cycle is expected to start. Huawei relies on its technical advantages in the communications field and has extensive layout in important areas involved in the Internet of Things era. We believe that the 5G era is an important development opportunity for Huawei, and companies in the Huawei industry chain are expected to fully benefit. In terms of target selection, from the perspective of benefit certainty, it is recommended to pay attention to core gold medal suppliers with a stable industry structure in the long term, such as: Shengyi Technology (PCB), Luxshare Precision (connector), Shanghai Electric Co., Ltd. (PCB), BOE A (panel), etc.; considering the elasticity of stock prices, it is recommended to pay attention to companies that have newly entered the supply chain, such as: Weier shares (mobile phone camera chip), Shuobed (mobile phone antenna), etc. .

dry information research report note: Huawei is expected to release a series of new products in the second half of the year, which is expected to boost the theme valuation in the short term. Therefore, we believe that the current time is a better layout window period.

Encore full map - Guosheng Securities

Encore industry chain can be divided into four parts:

) IT infrastructure: mainly refers to CPU chips, servers, storage, switches, and routers. These are the basis of information security and localization alternative space Huge;

) Basic software: mainly refers to operating systems, databases, and middleware. As basic software technology gradually matures Mature, domestic manufacturers are actively seizing the market share of foreign giants;

) Application software: mainly refers to software provided for user needs in different industry fields, such as ERP field, power industry, financial industry, government applications, and office software. Currently, domestic replacement Gradually penetrate from basic software to high-end software;

4) Information security: mainly refers to border security products, terminal security products, and security management products. At present, domestic information security products can basically replace similar foreign products.

2019 will be the first year of the launch of Encore. The industry has broad prospects. Recommended investment main lines: China Software, Zhongke Shuguang, China Great Wall, Beixinyuan, East China Computer , Taiji Co., Ltd. , Zhongfu Information, UFIDA Network, Venus Star , Guardong, Nanyang Shares, etc.

Digital Rural - Minsheng Securities

The "Digital Rural Development Strategy Outline" was released, and agricultural big data is expected to become the focus of development.

The "Digital Rural Development Strategy Outline" was released. The strategic goals are clear and the rural digital economy will be developed from four angles. This "Outline" puts forward ten key tasks for the development of digital rural areas. Among them, developing rural digital economy and applying information technology to daily agricultural production have become one of the important tasks. The "Outline" proposed that the development of agricultural digital economy should mainly focus on four aspects, including consolidating the foundation of digital agriculture, promoting agricultural digital transformation, innovating rural circulation service systems, actively developing new rural business formats, etc., and highlighted "accelerating the promotion of cloud computing" , Big Data, Internet of Things, and Artificial Intelligence in Agricultural Production and Operation Management" to create scientific agriculture, smart agriculture, and brand agriculture. The

policy has once again catalyzed the construction of a big data center for the entire agricultural product industry chain. Agricultural informatization has ushered in many favorable policies within this year. This "Outline" once again proposed to promote the construction of agricultural and rural big data centers and the big data of the entire industry chain of important agricultural products, and promote the integration and sharing of basic agricultural and rural data.The construction of big data centers for the entire industry chain for important agricultural products is expected to become the focus of agricultural informatization construction.

Look at agricultural informatization investment opportunities from two main lines: One main line is the information demand brought about by policies, including land rights confirmation, two-zone delineation, three land adjustments, etc., and the other main line is around improving agricultural production efficiency. Construction of agricultural Internet of Things and big data. As the dividends brought by land rights confirmation and other businesses are gradually released, improving agricultural production efficiency will become the focus of development in the next stage. The big data platform built around agricultural products has been successfully piloted in some areas and will be further promoted in the future. Companies that have laid out relevant fields in advance are expected to benefit mainly.

investment advice: It is recommended to pay attention to China Information and New World .

The above can be viewed online or downloaded in the daily dry information research report database, and this article will not introduce it in detail.

3. Individual stock research reports

Today is Friday. As a rule, we will not update popular individual stock research reports.

will update tomorrow, Saturday night, the 10 stocks that securities analysts are most optimistic about over the past week (sorted by target price increase).

All the research reports mentioned above can be viewed in the research report library of the "Daily Research Report" applet. More research reports can be searched in the research report database. The focus of is: all are free to view and support free downloading.