Financial news app Zhitong Finance learned that on October 24th, the 'Top Stream' fund manager Li Xiaoxing released the third quarter report of the largest managed fund, YinHuaXinJia Two-Year Holding Period Fund. As of the end of the third quarter, the top ten heavy-weighted stocks held by the YinHuaXinJia Two-Year Holding Period Fund were: Contemporary Amperex Technology (300750.SZ), Shenzhen Inovance Technology (300124.SZ), AVIC Xi'an Aircraft Industry Group (000768.SZ), East Money Information (300059.SZ), Naura Technology Group (002371.SZ), AVIC Shenyang Aircraft (600760.SH), Chinahongqiao (01378), Guizhou Space Appliance (002025.SZ), AVIC Jonhon Optronic Technology (002179.SZ), and CSI SWS Food & Beverage Index (688120.SH). Among these, Li Xiaoxing newly invested in Contemporary Amperex Technology, Chinahongqiao, AVIC Jonhon Optronic Technology, and CSI SWS Food & Beverage Index during the third quarter, and increased holdings in Shenzhen Inovance Technology. It is worth mentioning that after two and a half years, Contemporary Amperex Technology once again became the fund's largest holding.

In the report, Li Xiaoxing stated that from the fundamental perspective of the new energy industry chain, it is currently operating at the bottom level. The lithium battery industry chain is still digesting the capacity expansion in the past, with prices in some segments rebounding slightly after hitting bottom, but overall still running at low profitability. The uncertainties faced by the overseas demand in the new energy industry are gradually improving. Looking at the quarterly performance in the capital markets, the adjustment time and extent of the new energy sector are significant. The industry still maintains a certain growth level, which would be more optimistic in terms of stock prices. From a stock selection perspective, focus on leading companies with significant cost advantages.

Contemporary Amperex Technology returns to the top holding position.

Specifically, as of the end of the third quarter, the equity investment position of the YinHuaXinJia Two-Year Holding Period Fund reached 94.54%. The size of the fund at the end of the third quarter was 5.875 billion yuan, a slight increase of 0.527 billion yuan compared to the end of the second quarter.

As of the end of the third quarter, the top ten heavy-weighted stocks held by the YinHuaXinJia Two-Year Holding Period Fund were: Contemporary Amperex Technology, Shenzhen Inovance Technology, AVIC Xi'an Aircraft Industry Group, East Money Information, Naura Technology Group, AVIC Shenyang Aircraft, Chinahongqiao, Guizhou Space Appliance, AVIC Jonhon Optronic Technology, and CSI SWS Food & Beverage Index.

Among them, Li Xiaoxing added Contemporary Amperex Technology, China Hongqiao, Avic Jonhon Optronic Technology, and Huahai Qingke in the third quarter, and increased the holdings of Shenzhen Inovance Technology.

Regarding heavy positions, compared with the end of the second quarter, the top ten heavy positions held by Yinhuaxinjia's two-year fund in the third quarter report have changed with 4 stocks. It is worth mentioning that after two and a half years, Contemporary Amperex Technology once again became the fund's largest heavy position.

On the other hand, Wuliangye, Shanxi Xinghuacun Fen Wine Factory, Beijing Kingsoft Office Software, Inc., and AECC Aviation Power exited the top ten holdings; Avic Xi’an Aircraft Industry Group and East Money Information each saw a reduction in holdings by 6.41%, 16.03% by Li Xiaoxing.

In terms of net value, as of the end of the third quarter, the net value of the fund held by Yinhuaxinjia for two years was 0.6412 yuan; the net value growth rate of the fund in the third quarter was 14.75%, with a performance benchmark yield of 13.51%.

The market may enter a relatively stable upward phase, with gradual improvement in overseas demand for new energy.

In the third-quarter report, Li Xiaoxing pointed out that sharp rises and falls in the market are not normal. The significant market increase at the end of the third quarter more reflects the restoration of optimism in the market, which may enter a relatively stable upward phase. Quality companies with reasonable valuations aligned with the national development direction may significantly outperform the market, with a relatively bullish outlook on new productive forces. Additionally, the wealth effect from the market rise may lead to a recovery in consumer confidence, potentially benefiting some undervalued consumer stocks.

New productive forces and high-level technology self-reliance are key areas for technological focus. With key support from national policies, there is strong optimism in domestic semiconductor substitutes, domestication of information technology, and defense technology sectors. As the global semiconductor restocking cycle comes to an end, avoiding pro-cyclical investments, there is a structural optimism towards domestic substitutes, investment opportunities driven by breakthroughs in advanced domestic manufacturing processes, semiconductor equipment, and domestic computational chips. In the field of computers, the direction of domestication of information technology is expected to restart, with a positive outlook on leading companies in areas such as CPUs, operating systems, databases, and continued monitoring of progress in the AI industry.

The execution of the '14th Five-Year Plan' for national defense and military industry has entered a crucial period, and industry demand is expected to transition from weak recovery to strong recovery by the end of the year. Looking ahead to the 100th anniversary of the founding of the military in 2027, indicating strong rigidity in the construction of national defense equipment in the next two years, the national defense industry can anticipate a high industry prosperity over the two-year period, with clear horizontal comparative advantages between industries. There is a positive outlook on the long chain of the industry chain, core manufacturers of central SOEs, missile industry chains undergoing reversal of predicament, as well as new quality directions such as unmanned systems, satellite internet, and support for domestic large aircraft.

Li Xiaoxing believes that from the perspective of the fundamental aspects of the new energy industry chain, it is currently at the bottom of its operation, with the lithium battery industry chain still digesting the past rapid expansion of production capacity. Some segments have rebounded slightly after touching the bottom of the prices, but overall, they are still operating in a low-profit state. The prices of the photovoltaic and wind power industry chains are also at the bottom and face the same situation of slowing growth and oversupply as electric vehicles. However, there may not be significant downward space in the future, and certain segments may stabilize and rebound. The uncertainty faced by the overseas demand in the new energy industry is gradually improving. From a quarterly perspective of the capital market, the adjustment time and amplitude of the new energy sector are significant enough, and the industry still maintains a certain growth rate, which would lead to a more optimistic stock price performance. From a stock selection perspective, focus on leading companies with obvious cost advantages.

Consumption is still in the expected improvement phase after the policy shift in the fourth quarter. The market has been very positive in recent times, and the market's bottom area is likely to be established, leading to a relatively optimistic outlook for the market trend. Although there is still pressure on the short-term fundamentals of consumption, it is challenging to find support from the fundamentals at present. However, after a series of policies are introduced by the central bank, finance, and other sectors, expectations regarding housing prices and incomes will gradually improve. Market confidence in the economy in the medium to long term will also gradually strengthen. Currently, most consumer stocks are still reasonably undervalued, and there is bullish valuation repair opportunity in food and beverage, home appliances, autos, and other sectors.

Li Xiaoxing stated that the overall market valuation is relatively low, and the fundamentals of many companies are gradually entering an upward trajectory, making the secondary market highly optimistic for the medium to long term.