In 2020, the performance of listed companies in medical equipment, food processing, computer communication equipment, chemicals, general machinery and other industries will be eye-catching. Judging from the performance of the first quarterly report of 2021, companies that have achieved substantial growth are mainly concentrated in the mid-upstream and procyclical sectors that benefit from economic recovery, including the non-ferrous and mechanical equipment industries, the production and sales of new energy vehicles, and the electrical equipment industry that drives high-speed growth in profitability. , Basically geared towards good military industry, as well as the medical and pharmaceutical industry where demand for products has increased sharply during the epidemic.

There may be more opportunities in the vaccine sector

Luo Ying, investment manager of HSBC Jinxin, said that the pharmaceutical sector has been very impressive in terms of performance and stock price performance in the past two years. The financial report shows that the overall revenue growth of the pharmaceutical sector in 2020 is about 6%, and the profit growth is 30%. In the first quarter of 2021, the revenue growth of the entire sector is 30%, and the profit growth is about 80%.

From the perspective of subdivided industries, the medical device sector has the most impressive performance because it directly benefits from the export of anti-epidemic materials, including gloves, masks, ventilators, testing reagents, and so on.

The financial report shows that the overall revenue growth of the sector in 2020 is 60%, and the profit growth is 150%. In the first quarter of 2021, revenue will double the growth, and profit growth will be more than 250%.

As for the impact of the epidemic on the medical device sector, is it a one-off? Luo Ying believes that it is not a one-off. The core reason is that many excellent medical equipment companies have entered the global supply chain system with the help of this new crown epidemic, which will accelerate the globalization of China's medical equipment.

Luo Ying said that after the big bull market in the pharmaceutical sector in the past three years, if you look further this year, pharmaceuticals still have very good structural opportunities. If you look at the dimensions from the second quarter or even the second half of the year, there may be more opportunities in the vaccine sector in the pharmaceutical sub-sector.

As for how to choose the investment target, Luo Ying said that the first is a good track, and the second is to make a good product through research and development. Third, good sales. She said that to sell products through good sales based on good channels and good products, to achieve the best market share, to achieve the largest, these are important criteria for selecting an excellent company.

The textile and apparel industry is gradually recovering

The year-on-year growth rate of the textile and apparel industry this year is also very eye-catching, and the profitability of most segmented leaders has even returned to the size of 2019. At the same time, upstream manufacturing also showed a surge in orders in the first quarter. So, will this state continue?

In this regard, Li Jie, deputy director of the China Securities Research Institute, said that the characteristic of the clothing industry is that it has been more affected during the epidemic, but it has rebounded more strongly after the epidemic. Especially in the first quarter of this year, the entire industry has experienced a very beautiful year-on-year growth. If you compare other consumer goods industries with clothing, you will find that the clothing industry is indeed performing relatively well.

From the perspective of listed companies, since the second quarter of last year, due to the gradual recovery of the industry, more and more listed companies have also experienced positive growth, especially in the first quarter of 2021, a large number of companies 2019 will be even better. This part of the company is mainly some leading companies with high prosperity such as sportswear and children's clothing, leading companies in the development of home textiles that benefit from the release of demand, and some leading companies with outstanding performance in other sub-categories.

However, Li Jie reminded that there are still a large number of good companies that have not fully repaired at this stage, so these companies should gradually complete the repair process in the following quarters.