New trend! Foreign institutional investors "team up" to make moves, showing great enthusiasm for researching A-share listed companies

Choice data shows that since February 9, institutional visits to nearly 70 listed companies have been concentrated, with a focus on industries such as machinery equipment, automobiles, and basic chemicals.

From the logic of price increases in products like dyes and memory, to domestic and international capacity deployment plans, these have become core topics of institutional inquiry. Foreign institutions such as BNP Paribas and TX Capital have also conducted company research, paying attention to global capacity layouts and long-term growth logic in wind energy, PCB, and other enterprises.

Price hikes and capacity situations under scrutiny

Recently, prices of raw materials, chemical products, electronic components, and other categories have fluctuated, prompting institutions to focus on reasons for price increases, sustainability, and company response strategies.

Regarding tight TMP supply and rising prices, Baichuan Co., Ltd. explained that most industry companies use the calcium process. Due to the decline in by-product calcium formate prices and the increase in raw material n-butyraldehyde prices, some manufacturers have decided to halt or reduce production, leading to tight market supply. The company produces via the sodium process, with by-product sodium formate. Currently, TMP capacity is 70,000 tons per year, with normal production and strong overall demand.

The dye sector’s price increases have also attracted attention. Hangmin Co., Ltd. stated that the company mainly produces printing and dyeing fabrics, using dispersed dyes extensively. Dyes and auxiliaries account for over 20% of dyeing costs. They usually purchase dyes in a staggered manner, and price transmission depends on downstream demand. Zhejiang Longsheng revealed that driven by rising prices of reducing agents, the company re-quoted some dispersed dye varieties on February 8, with the main products’ black dispersed dye prices recently rising by 5,000 yuan per ton. Whether these prices are sustainable depends on supply and demand.

Regarding the trend of rising prices in consumer electronics memory, SMIC (Semiconductor Manufacturing International Corporation) judged during research that the construction speed of new wafer fabs is relatively fast, enabling quick production of memory wafers. They can immediately meet the market demand for storage in mid-to-low-end smartphones, computers, edge devices, watches, and consumer products. As their capacity increases, middlemen will also release inventory, and some reversal may occur in the third quarter.

In addition to price trends, the release pace of capacity by listed companies has become another major focus for institutions.

Flaure New Materials’ flexible sensors are accelerating commercialization. The company has built a pilot production line in the first quarter of 2025 and has successfully put into production. They have delivered thousands of tactile sensors to customers and are now in the third-generation electronic skin product mass production preparation stage. Furthermore, the company plans to complete the formal mass production line in the first quarter, with annual sensor capacity expected to exceed 10,000 units after reaching full capacity.

Chongde Technology revealed that its current production line is operating at full capacity. Through optimization and improvement of production equipment, processes, and logistics, capacity utilization is steadily increasing. The company also outsources lower-technical-content rough processing steps. As the company’s fundraising projects are gradually put into operation, capacity will increase significantly, helping to meet business growth needs.

Hars’ Thai capacity expansion is progressing as planned, with the goal of achieving the planned capacity by the end of 2026. The company stated that leading customers are systematically shifting orders to the U.S., and the Thai plant’s capacity is continuously improving, providing strong support for responding to changes in the international trade environment and ensuring supply chain security.

Foreign institutions “group” attack

In the week before the Spring Festival, foreign institutions showed high enthusiasm for researching A-share listed companies, with names like Bank of America Securities, Citigroup, and Oberweis Fund appearing on research lists.

TianShun Wind Energy has been a popular company for recent research and also maintains high attention among foreign institutions. Besides well-known domestic institutions like Southern Fund, CITIC Asset Management, and Harvest Fund, several foreign institutions such as Marshall Wace and TX Capital have also conducted research on the company. Investors have inquired about 2026 shipment volume, capacity, and overseas business.

“TianShun Wind Energy expects that from 2025 to 2026, domestic offshore wind bidding and construction will accelerate, especially in Guangdong. Coupled with the global offshore wind demand in Europe, Southeast Asia, and Japan/Korea, market demand will continue to grow, and a new round of opportunities may emerge after the 2021 rush to install.” TianShun Wind Energy stated.

Currently, in terms of domestic capacity, TianShun Wind Energy’s Yancheng Sheyang and Yangjiang bases are under construction; the Zhangzhou base is in planning, with an expected capacity of 500,000 tons, mainly targeting the global offshore equipment market. Overseas, the company’s Cuxhaven, Germany, base is progressing steadily, with a designed capacity of 500,000 tons of monopiles.

TianShun Wind Energy revealed that, industry-wide, domestic and international offshore wind project bidding has been launched successively. The next three years are expected to be a major delivery year for domestic projects, and from 2028 to 2030, it will be a delivery peak for overseas projects already underway.

Recently, the PCB concept has been active in the A-share market, with Ouke Yi, a PCB drill pin and rod supplier, also attracting attention from foreign institutions like BNP Paribas and Oberweis.

“Ouke Yi states that as AI servers, high-speed switches, and other equipment drive PCB development toward high multi-layer and high-density, there is a growing demand for micro-drill bits, high aspect ratio drill bits, and coated drill bits that can significantly improve durability and hole wall quality.”

It is reported that Ouke Yi has proactively laid out rod material R&D, possessing advanced nano-hard alloy material R&D and production capabilities, with substantial technical reserves. Currently, the CNC tool park has a capacity of 1,300 tons of rod material, capable of quickly forming PCB drill pin and rod material production and supply. The company has already supplied core downstream customers with various specifications of main products and will actively plan and further expand capacity and supply of PCB drill pin and rod materials.

Meanwhile, the reporter noted that several foreign institutions recently issued research reports optimistic about the Chinese stock market. For example, Manulife Investment expects that by 2026, three major sectors will see growth opportunities: intelligent manufacturing and equipment empowered by AI; domestically produced high-end equipment; and outbound investment trends. The firm is particularly optimistic about three types of companies, including automation and robotics firms, engineering machinery benefiting from cyclical demand recovery, and lithium battery equipment companies. It forecasts that the total potential market size for robotics within China will grow from $58 billion in 2025 to $108 billion in 2028.

(Article source: Shanghai Securities News)