The three major indices of A-shares experienced a slight increase, with the robotics sector maintaining its strength. A new policy on the scrapping and updating of old operating trucks has emerged, presenting opportunities for the heavy truck industry. Additionally, various products in the building materials sector are seeing price increases, signaling the potential for a new wave of growth.
Market Review: On March 18, the three major A-share indices collectively saw minor gains. By the end of the trading day, the Shanghai Composite Index rose by 0.11%, closing at 3429.76 points; the Shenzhen Component Index increased by 0.52%, finishing at 11014.75 points; and the ChiNext Index gained 0.61%, closing at 2228.64 points. The total trading volume for the Shanghai and Shenzhen stock markets reached 1.52 trillion yuan, a decrease of 53.3 billion yuan compared to the previous trading day.
Market activity was somewhat chaotic, with more stocks rising than falling, as over 2900 stocks gained ground. In terms of sectors, robotics concept stocks remained strong, with approximately 20 stocks such as Fangzheng Electric (002196) hitting their daily limit. High-pressure fast charging stocks also performed actively, with Incore (300713) reaching its limit. Port stocks showed volatility but generally strengthened, with COSCO SHIPPING Ports (001872) also hitting the daily limit.
On the downside, consumer stocks like liquor saw adjustments, with Rocky Holdings dropping more than 5%. In focus, high-pressure fast charging stocks like Futec Technology, Incore, Jinguang Co. (300510), Aotexun (002227), Jingquanhua (002885), and Taiyong Changzheng (002927) saw their stocks hit the limit.
Recent news includes a technology release from BYD (002594) on March 17, showcasing its “megawatt flash charge” technology, which allows for a 5-minute charge that provides a range of 407 kilometers. Gold concept stocks also surged again, with Mingpai Jewelry (002574) achieving a six-day limit, and stocks like Laishen Tongling (603900) and Dengyun Co. (002715) hitting their limits. Notably, the spot price of gold reached a historic high of $3008.52 today.
Robotics concept stocks remained active, with stocks like Xiangyang Bearings (000678), Wangma Co. (002276), and Fangzheng Electric hitting their limits. Other stocks such as Shuanglin Co. (300100), Dongtu Technology (300353), KeDa Intelligent (300222), and Shuangjie Electric (300444) also saw significant gains. On March 18, Yuejiang Robotics, one of Guangdong’s “Seven Swordmen,” launched the world’s first full-size humanoid robot product, Dobot Atom, capable of dexterous operation and knee walking, with a starting price of 199,000 yuan.
In individual stock performance, Deep Sea Technology remained relatively strong, with companies like Oriental Ocean, Shenkai Co. (002278), Juli Rigging (002342), and Ocean King (002724) achieving four consecutive limits. Meanwhile, the consumer sector experienced increased differentiation, with Mingpai Jewelry returning to the limit at the end of trading, while another consumer benchmark, Jinyi Film (002905), faced a drop.
On the indices front, after a significant surge last Friday, the brief volume contraction over the following two days may help stabilize short-term holdings. However, to sustain the rebound, the market still requires a substantial bullish line to confirm the short-term upward structure. Conversely, if the index continues to experience volume shrinkage and breaks below the 5-day moving average, the short-term consolidation period may extend again. Nevertheless, the medium-term trend remains bullish, allowing for active opportunities to buy on dips.
Theme Investment Opportunities:
- Heavy Trucks: The Ministry of Transport, the National Development and Reform Commission, and the Ministry of Finance have issued a notice regarding the implementation of scrapping and updating old operating trucks. The policy supports the scrappage of trucks meeting the National III and IV emission standards, accelerating the update of a batch of high-standard, low-emission operating trucks. Differentiated subsidy standards will be applied based on the type of scrapped vehicle, early scrappage timing, and the type of new vehicle purchased. This subsidy policy will be in effect from January 1, 2025, to December 31, 2025. According to Southwest Securities (600369), the expansion of the scrappage policy is expected to lead to the scrapping of 5 million vehicles this year, with a scrapping subsidy amount of approximately 90 billion yuan, which could replace 10 million vehicles, resulting in subsidies nearing 130 billion yuan.
- Xiaomi Cars: Xiaomi founder and CEO Lei Jun announced on Weibo that the company is working diligently to increase production capacity, with a revised delivery target of 350,000 units for 2025. According to Guoxin Securities (002736), Xiaomi has ample reserves in smart driving technology, with plans to roll out end-to-end intelligent driving by the end of 2024. The first phase of production capacity has been expanded, and the second phase is under construction. Xiaomi’s strategy focuses on major products, with plans to enter the SUV market in 2025. The pure electric SUV model, Xiaomi YU7, is expected to become a hot-selling model.
- Ultra-High Voltage: On March 18, the State Grid Corporation announced the commencement of construction on the 1000 kV ultra-high voltage AC project connecting Datong-Huailai-Tianjin South, marking a new channel for “West-to-East Power Transmission.” This project is scheduled to be operational by June 2027 and is the first ultra-high voltage project started in the country this year. Once completed, it will facilitate the consumption of over 14.6 billion kilowatt-hours of renewable energy annually.
- Humanoid Robots: Recent reports highlight that Midea Group (000333) has developed a humanoid robot capable of dancing, making heart symbols, and following voice commands. The company’s Vice President and CTO Wei Chang stated that Midea has integrated its R&D resources to establish an innovation center for humanoid robots, aiming to develop both short-term products and long-term technologies. On March 18, Yuejiang Robotics launched the Dobot Atom, the world’s first full-size humanoid robot with dexterous operation and knee walking capabilities, starting at 199,000 yuan.
- AI Agents: Reports indicate that SAIC Motor (600104) has launched a car-mounted AI operating system, IM AIOS, developed jointly with Zebra, based on Alibaba’s Tongyi Qianwen large model. This system incorporates human-like communication, multi-agent collaboration, and ecosystem partnerships.
- High-Pressure Fast Charging: At the BYD Super e-platform technology launch, the “megawatt flash charge” technology was unveiled, allowing for a maximum charging voltage of 1000V and a peak charging speed of 2 kilometers in one second. Fast charging is crucial for addressing power replenishment issues, and the upgrade of high-pressure fast charging presents new opportunities.
- Commercial Aerospace: Recently, Star River Dynamics successfully launched the Vesta-1 rocket from the Jiuquan Satellite Launch Center, placing eight satellites into a 535 km sun-synchronous orbit. The Vesta-1 rocket, with a total of 18 launches (17 successful), is currently the most frequently launched commercial rocket in the private aerospace sector.
Market Outlook: According to Citic Construction Investment (601066), several building materials sectors have started to see price increases, including a national rise in cement prices over the past two weeks. With construction activities gradually resuming, these price increases are expected to drive a new wave of growth in the building materials sector.
Overall, as the market adjusts and adapts to various new policies and sectors, opportunities remain for investors to capitalize on trends, particularly in the areas of heavy trucks, electric vehicles, and advanced technologies.
