A-shares: Solid-State Batteries Gain; Mkt Decline.
This week (September 2nd to 6th), the overall A-share market underwent adjustments, with the Shanghai Composite Index falling by 2.69% for the week, closing at 2765.81 points; the Shenzhen Component Index fell by 2.60%, and the ChiNext Index fell by 2.68%.
In terms of industry performance, the majority of sectors (as classified by Shenwan First Level) saw more declines than gains. This week, only the non-bank financial and commercial retail sectors achieved positive returns, with all other sectors experiencing declines. Among thematic concepts, the lithium battery electrolyte, new energy vehicle, and solid-state battery sectors were particularly active during the week. In terms of news, solid-state batteries have recently become a hot topic in the A-share market, with new progress made in the research of all-solid-state battery materials, and some listed companies have signaled the mass production of solid-state batteries. Industry insiders believe that solid-state batteries, due to their high safety and high energy density, are expected to initiate a new round of electrification innovation cycle.
As the semi-annual reports have been fully disclosed, the enthusiasm for institutional research has cooled down this week, but the number of research activities remains high. As of 19:00 on September 6th, 249 A-share listed companies received institutional research and disclosed their research records within the week. Looking at the earning effect of companies that received institutional research this week, Guangdong Expressway A set a historical high for its share price, closing at 11.68 yuan on September 6th, with the latest total market value of 24.421 billion yuan; while Aideite's share price hit a historical low this week, dropping to 49.87 yuan at one point on the 6th, and finally closing at 50.31 yuan, with the latest total market value of 3.829 billion yuan.
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As the institutional research stock with the most eye-catching share price performance this week, Guangdong Expressway A received research from 96 institutions. Established in 1993 and listed on the Shenzhen Stock Exchange in 1998, the company is an important part of the transportation infrastructure. Its main business activities include the toll collection and maintenance of the Guangfo Expressway (expired), Foshan-Kaiping Expressway, Guangzhou-Zhuhai section of the Beijing-Zhuhai Expressway, and Guangzhou-Huizhou Expressway, as well as external investments. In the first half of 2024, Guangdong Expressway A achieved a revenue of 2.231 billion yuan, a decrease of 4.68% year-on-year; the net profit attributable to the parent company was 855 million yuan, a decrease of 3.41% year-on-year.
When institutional investors inquired about the reasons for the decline in traffic volume and toll revenue on the Guangzhou-Huizhou Expressway in the first half of the year, Guangdong Expressway A responded that the main reasons were the opening of the Guangshan High-Speed Railway, which runs parallel to the Guangzhou-Huizhou Expressway, and the subsequent opening of the Huizhou-Longmen Expressway and the third phase of the Dongguan-Panyu Expressway (a part of the Guanglong Expressway). Changes in the surrounding road network have had a certain diversion effect on the traffic volume of the Guangzhou-Huizhou Expressway, leading to a year-on-year decline in traffic volume and toll revenue.
Regarding the impact of the completion and opening of the Shenzhen-Zhongshan Corridor on the Guangzhou-Zhuhai East section, Guangdong Expressway A stated that the opening of the Shenzhen-Zhongshan Corridor has changed the structure of the regional road network and has had a certain impact on the Guangzhou-Zhuhai East section. According to the July traffic data collected by the section company, after the opening of the Shenzhen-Zhongshan Corridor, the daily traffic volume of the Guangzhou-Zhuhai East section has increased significantly compared to the previous month and the same period last year, while the toll revenue has decreased both month-on-month and year-on-year. The overall impact of the Shenzhen-Zhongshan Corridor on the Guangzhou-Zhuhai East section requires further tracking and assessment.
Looking at Aideite, although the company's share price hit a historical low this week, institutions still maintain a high level of research enthusiasm, with a total of 100 institutions participating in the research of Aideite, with a research frequency of 3 times. Established in 2007, Aideite is a provider of dental restorative materials and digital dental equipment, with its core product being zirconia dental restorative materials. In the first half of 2024, Aideite achieved a revenue of 414 million yuan, a year-on-year increase of 16.74%; the net profit attributable to the parent company was 76.7894 million yuan, a year-on-year increase of 21.41%.
During the research, institutions focused on the sales situation of zirconia products in the first half of the year. Aideite introduced that the overall shipment of its zirconia products continued to climb year-on-year in the first half of the year, achieving a revenue of about 240 million yuan, a year-on-year increase of about 16%, with the gradient series of zirconia products having a high proportion and maintaining a high growth rate in the first half of the year. In addition, the unit price of zirconia products was the same as last year, and the comprehensive gross margin was 61.76%, slightly higher than the same period last year.
Looking at the popular targets of institutional research this week, Shengyi Electronics was the company that received the most attention from institutions, with 161 institutions participating in the research; in addition, Megmeet received research from 120 institutions.
It is worth mentioning that Shengyi Electronics has become the company that received the most attention from institutions in the weekly research many times this year. Shengyi Electronics is a high-quality multi-layer printed circuit board (PCB) manufacturer, mainly engaged in the research and development, production, and sales of various printed circuit boards. Printed circuit boards are indispensable key components in electronic products and are also known as the "mother of electronic products".In the first half of 2024, Shengyi Electronics achieved a revenue of 1.973 billion yuan, a year-on-year increase of 24.64%; the net profit attributable to the parent company was 96.0887 million yuan, a year-on-year increase of 903.93%. When asked by institutions about the main reasons for the changes in the company's revenue and net profit in the first half of the year, Shengyi Electronics stated that the main reasons were the continuous optimization of the product structure and the active improvement of the product business regional layout. With the market demand for high-layer, high-precision, high-density, and high-reliability multi-layer printed circuit boards increasing, the company's production, sales, and revenue all increased compared to the same period last year; the increase in the company's gross profit led to a significant increase in net profit.
At the end of August, Shengyi Electronics increased its investment in the Thai printed circuit board production base, specifically, the company increased its capital by 70 million US dollars for the construction of the Thai company and the production and testing equipment. In the research, Shengyi Electronics introduced the specific progress of the Thai company, stating that the company has completed the establishment of the Thai company, overseas investment filing, land purchase agreement signing, and the transfer of land ownership, the formation of the Thai team, and the planning and compilation as planned, and is expected to officially start construction in the second half of 2024. The establishment of the Thai production base will further increase the company's overseas supply capacity and better meet the needs of international customers.
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