Risk Opportunities Coexist And Mine Next Outbreak Point

The early market speculation on the reform of state-owned enterprises is mainly concentrated on large central enterprises.

However, from the chain of SOE reform, the benefits of private capital can not be ignored.

This year's government work report has focused on breaking the monopoly of high monopoly industries.

Sinopec has become a leading target for the reform of state-owned enterprises. The reform of Sinopec mainly focuses on opening up downstream industries and allowing private capital to enter.

Some sectors of the open industrial chain allow private capital to enter, not only help large state-owned companies to enhance efficiency, but also more importantly, give private enterprises more space for development to the front rank of the industry, so the powerful private enterprises are also the main beneficiaries, such industries mainly have petroleum and petrochemical industries.

When it comes to the reform of state-owned enterprises, we believe that the biggest driving force lies in two points, one is performance, and the other is the revitalize of assets. Two.

From the standpoint of performance, some industries with weak performance are far more eager to reform than some industries with superior performance.

The industries that are facing more challenges in the current performance include shipping and coal.

Secondly, from the perspective of assets revitalization, if we want to complete the reform of state-owned enterprises, enterprises must have enough high-quality assets to help listed companies to make profits, so as to make the capital operation bigger and stronger through the platform of listed companies.

In this regard, stock selection focuses on some listed companies with strong background of central enterprises.

From the point of view of state-owned enterprise reform, it is not opportunity and risk.

We suggest that we should focus on the risks of the two industries, one is medicine, but the other is military industry.

Once the reform is carried out in the field of medicine, private capital has obvious advantages in sales, and leading listed companies with state-owned enterprises but not enough brand strength are expected to face greater challenges.

In addition, the market has been paying close attention to the reform process of the military industry. We believe that military industry involves national security issues.

Before the market, the military industry reform has placed a relatively large expectation, many military industry shares have been soaring, but the overall performance of the military industry is still not enough to support the growth of the stock price, and the risk of valuation is objective.