The Zhitong Finance App learned that Morgan Stanley released a research report saying that the mainland automation and general equipment industry has bottomed out, but it is difficult to see a turning point in 2024. The bank is more optimistic about leading companies that can continue to achieve localization, have less exposure to new energy sources, expand their business scope, and seize overseas opportunities to gain market share domestically and globally.
The bank said it called for an increase in holdings of Haitian International (01882) and Lijin Technology (00558), based on traditional industry recovery and overseas growth; as well as an increase in holdings in Huichuan Technology (300124.SZ) because of its steady fundamentals and strong product competitiveness. However, the bank called for a reduction in its holdings of Green Harmonics (688017.SH) and Eston (002747.SZ) due to excessive valuations; it also called for a reduction in Guomao shares (603915.SH) due to weak fundamentals and pressure on profit and profit margins.