The order of industry increases in each bull market of the Chinese stock market is not entirely fixed, but there are certain patterns and commonalities, roughly as follows:

1. Financial sector: Securities firms:

Usually, they are the vanguard of a bull market. At the beginning of a bull market, market trading activity significantly increases, leading to a substantial rise in the brokerage business income of securities firms. Additionally, as the stock market improves, there is an increase in corporate listings, financing, mergers, and acquisitions, which also promotes the development of securities firms' investment banking business. Therefore, the securities sector often initiates first, driving the overall market's enthusiasm. For example, during the 2014-2015 bull market, securities stocks had a very prominent performance at the beginning of the market's upturn.

This time, many individual stocks in the securities sector have hit the daily limit for two consecutive days, such as Oriental Wealth and Tonghuashun.

2. Banks and insurance: Following the rise of the securities sector, financial sectors like banks and insurance will also follow suit. The rise of the banking sector is mainly due to the positive economic outlook, increased credit demand, and enhanced profitability of banks; the insurance sector benefits from increased investment returns and growth in premium income. The rise of these large financial sectors plays an important role in stabilizing the overall market index.

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In this instance, banks have not risen much, mainly because banks have generally performed well this year.

3. Cyclical sectors: Resources such as nonferrous metals, steel, and coal:

After the financial sector starts, cyclical stocks will experience an upturn. Economic recovery and prosperity will drive an increase in demand for raw materials, thereby pushing up the prices of products in industries like nonferrous metals, steel, and coal, and correspondingly increasing corporate profits.

For example, during the 2005-2007 bull market, the nonferrous metals sector saw a significant increase in value due to a substantial rise in global prices of nonferrous metals and other raw materials.

I personally hold more cyclical stocks such as coal and copper, and recently, I have noticed that they have generally performed well. For instance, among the stocks I follow, many have risen by more than four percentage points daily.4. Midstream Manufacturing Industries such as Chemical and Mechanical Engineering:

These industries are situated at the middle link of the industrial chain, benefiting from the demand pull of upstream and downstream sectors. When the prices of upstream resource industries rise, the costs for midstream manufacturing industries will increase, but the prices of their products will also rise accordingly. Moreover, as the economy expands, the market demand for products from midstream manufacturing industries will continue to grow.

In the chemical industry, the industries with strong logic are those where prices rise. Every year, there are strong-performing stocks emerging in the chemical industry.

For machinery, there seems to be a significant room for growth in overseas markets. However, since most have already seen good increases in the early stages, it might be necessary to wait for a correction before the upward trend in overseas markets can cycle back.

5. Consumer Goods Sector: Durable Consumer Goods Industries such as Automobiles and Home Appliances:

As the economy enters a phase of stable growth and residents' incomes increase, their consumption capacity improves, leading to a gradual release of demand for durable goods like automobiles and home appliances. The performance of these industries will improve, which in turn will drive stock prices upward. For example, in some bull markets, the automobile and home appliance sectors tend to perform well in the middle to later stages.

Necessary Consumer Goods Industries such as Food and Beverages, and Pharmaceuticals: Regardless of the economic situation, the demand for food, beverages, and pharmaceuticals is relatively stable. In bull markets, these industries' performance growth has strong certainty, making them a focus for capital. Especially in the later stages of a bull market, when the market's risk appetite decreases, capital will be more inclined to allocate to these more defensive consumer stocks.

Consumer foods have fallen significantly in the past two years, particularly in the liquor industry, where valuations have dropped to a level that presents significant investment value. The rebound in recent days has been particularly strong.

From a comprehensive cost-performance analysis based on valuation and this year's decline, Shuijingfang and Luzhou Laojiao are relatively inexpensive and still have some room for growth.

6. Technology Sector:TMT (Telecommunications, Media, and Technology) Industry:

Including sub-sectors such as electronics, computers, and telecommunications. The rise of the technology sector typically occurs in the mid-to-late stages of a bull market, when the market's outlook on the economy becomes more optimistic and capital begins to chase technology stocks with high growth potential and innovation. For instance, during the bull market from 2012 to 2015, many companies within the TMT industry saw significant increases in their stock prices, becoming the stars of the market.

Emerging Technology Sectors such as New Energy and Semiconductors:

As the national support for emerging industries like new energy and semiconductors continues to grow, these sectors also attract investment during bull markets. The rapid development of new energy vehicles has driven the performance growth of related companies along the industry chain, and the acceleration of domestic substitution in the semiconductor industry has also opened up a broad market space for companies.

Other Sectors: Transportation, Logistics, and Other Service Industries:

Economic prosperity stimulates trade and the movement of people, thereby promoting the development of transportation, logistics, and other service industries. The performance of companies in these sectors will improve with the increase in business volume, and their stock prices will also show some performance.

Construction, Building Materials, and Other Infrastructure-Related Industries:

During periods when the country increases investment in infrastructure construction, industries such as construction and building materials will benefit from the increase in projects, with both orders and performance seeing growth, which in turn drives stock prices up.

It should be noted that each bull market's development has its unique background and driving factors, and the order of industry increases may also be affected by policy orientation, international situations, and other factors, making them different.

A-share industries, based on a comprehensive analysis of valuation, performance, growth potential, dividend yield, year-to-date performance, historical performance, and stock nature, have preliminarily identified some stocks worth investing in.

1. Securities IndustryDongcai and CITIC. If more people open accounts, Tonghuashun is also a good choice.

II. Steel Industry

$Hegang Resources (SZ000923)$, $Nansteel Shares (SH600282)$ are two stocks worth investing in.

III. Food and Beverages

1. Baijiu

The increase in the past two days has been quite significant, and the valuation of many stocks has returned to above 20. Stocks with a PE ratio below 20, such as Shuijingfang and Luzhou Laojiao, are relatively cheaper, and their mid-year report performance for 2024 is still positive growth.

2. Non-Baijiu

Several beer companies have good performance and are suitable for a small position, such as Pearl River and Yanjing.

3. Food Processing

I believe that the best cost-performance ratio is Anjoy Food. It has been widely followed up front, and I have written a detailed article introducing the logic of this stock.The stock has hit its upper limit for two consecutive days, indicating that capital has recognized its value.

4. Seasoning and Fermented Products

Zhongjiao Gaoxin's Meiweixian has been under pressure due to reforms in the past 24 years, with a profit of about 700 million, which is valued at 20 times. Adding the company's land value of 5 billion, this year it is worth 19 billion, currently valued at 16.7 billion. If the profit for the 25th year is estimated to be around 900-1000 million, there is a market value space of 25 billion, with nearly a 50% increase in value.

IV. Agriculture, Forestry, Animal Husbandry, and Fishery

In the agriculture, forestry, animal husbandry, and fishery industry, the two stocks that can resist cyclical fluctuations are Chengbao Pet and COFCO Sugar, which have had stable performance for nearly 5 years.

COFCO Sugar Holdings Limited

COFCO Sugar Holdings Limited is a domestic A-share listed company under COFCO Group Limited. The company has two major industries: sugar and tomato processing, and it is the largest sugar production and trading company in the country, as well as a leading tomato product manufacturing company. Trade sugar, self-produced sugar, processed sugar, and tomato production and processing are the four major businesses of COFCO Sugar. The 2022 annual report shows that the company's trade sugar business is the core source of revenue, accounting for 65.71%, while self-produced sugar, processed sugar, and tomato revenue account for 15.94%, 10.52%, and 7.08% of total revenue, respectively, with the highest gross margin for tomato products. The company's annual sugar business volume is about 4.65 million tons, accounting for more than 30% of the national consumption volume, and the proportion in the terminal market is continuously increasing. The company continues to strengthen its sugar source control ability, ranking at the forefront of the industry.

I. High Dividend Ratio in the Middle of the Year, Continuous Realization of Shareholder Returns

The company's mid-year report performance has reached a historical high, and under the high growth performance, the company has conducted semi-annual dividends for two consecutive years. The company's "2024 Interim Profit Distribution Plan" shows that based on the total share capital of 2,138,848,228 shares as of June 30, 2024, a cash dividend of 2 yuan (including tax) per 10 shares is proposed, totaling a proposed cash dividend of 427,769,645.60 yuan, accounting for 49.60% of the net profit attributable to ordinary shareholders of the listed company in the consolidated statement for the first half of 2024.

II. Sugar Prices Downward, Company Achieves Performance Growth Against the TrendSugar business is the core of the company, accounting for more than ninety percent of the operating revenue. In terms of self-produced sugar, the spot price of white sugar fluctuated downward in 2024H1, falling from a high of about 6,800 yuan/ton in April to about 6,400 yuan/ton in early September. Under the pressure of declining sugar prices, the company has achieved counter-cyclical growth in performance by relying on a stable integrated industrial chain model and expansion in the downstream processing segment. The company has now formed an integrated sugar production chain both domestically and internationally, including sugar refining and sales. In 24Q2, Zhangzhou Sugar Industry has been completed and put into production, increasing the company's total refined sugar production capacity to 2.35 million tons. Benefiting from the gradual recovery of import profits, it is expected to contribute to profits in Q4. In the long term, the sugar refining business effectively extends the company's sugar industry chain, helping the company to transcend cycles and achieve long-term growth.

III. Increasing investment in R&D and innovation, emphasizing brand marketing, and further strengthening the tomato business

In the tomato business, the company is based on upstream planting, with both the quantity and quality of raw materials improving. In terms of processed products, the company has increased its investment in R&D, with R&D expenses of 0.30 billion yuan in the first half of 2024, setting a new historical high for direct R&D investment, with a year-on-year increase of 175.33%. In the downstream sales segment, the company places great emphasis on brand marketing and has opened up both online and offline sales channels. In the first half of the year, the company's domestic sales ratio reached 41%, with a significant increase in the production of small-packaged sauces and an increase in the annual production of tomato powder. The total number of the company's product distribution points has increased by 70% compared to the previous year, with products being distributed and sold in major terminal stores such as Walmart, Jiajia Yue, Yonghui, Jingkelong, and Pang Donglai. Online, it has become the number one brand of tomato products on e-commerce platforms like JD.com and Tmall.

IV. In the foreseeable 3-5 years, the company's competitive advantage is expected to steadily increase, with the market share likely to rise further, and the valuation range has room for further improvement. Currently, the company's valuation is at a low point over the past six years, and the bottoming out of sugar prices provides positive support for performance. With both performance and valuation moving upward, the company is poised for a double whammy.

V. Basic Chemicals

1. Chemical Raw Materials

Suyan Jing Shen, with low valuation and dividends, has certain growth potential. Personally, I hold a small position.

2. Chemical Products

Juhua Shares and Jingshang Resources, these two stocks have a very good competitive landscape and status. Among more than 400 chemical stocks, they have maintained robust profit growth across cycles for many years. This year, the valuation seems a bit high, but with rapid performance growth, it will be digested next year.

Next are Meihua Biology and Wanhua Chemical.3. Agricultural Chemical Products

Stanley, the most stable performer, but lacking in growth potential, with a low holding cost and difficulty in incurring losses.

Yunnan Tianhe, a stock that was quite popular in the past few years, currently has good valuation and dividend. Building a position at the beginning of the year is a good opportunity.

Zangge Mining, with products including potash fertilizer, lithium mines, and copper, possesses the ability to resist market cycles.

4. Rubber

General Shares, a tire stock that goes global. This stock was highlighted in the analysis article on global tire stocks and is considered to have good growth potential.

7. Textile and Apparel

Many individual stocks in the textile and apparel industry have the characteristics of high dividends and moderate valuations, making them still have certain investment value. For details, see the industry analysis articles written previously.

1. Shenzhen Zhonghua A

The main business includes jewelry and gold business, bicycles, and new energy lithium battery materials business. The bicycle and lithium battery materials business includes the production, assembly, procurement, and sales of bicycles and electric bicycles, as well as the procurement, sales, and commission processing of lithium battery materials.The industry is still good, but the valuation is too high, and it is not suitable to buy in at present.

2. Youngor

High dividend yield, one of the dividends, long-term dividend distribution, poor growth. Bought it for more than a year in 2018, and there was still a 10% return from dividends plus increase in value.

3. Weixing Shares — Key focus. The current valuation is a bit high, and a drop is an opportunity.

1. The company released the 24H1 interim report, with revenue/attributable net profit for the first half of 2024 increasing by 25.6%/37.8% to 2.3 billion/420 million, and single Q2 revenue/attributable net profit increasing by 32.2%/36.2% to 1.5 billion/340 million. The interim dividend is 230 million, with a dividend payout ratio of 56.2%.

2. Both button and zipper production and sales are booming, and profitability continues to improve.

The company's revenue for the first half of 2024 increased by 25.6% to 2.3 billion, with button business revenue increasing by 27.1% to 930 million, achieving a gross margin of 42.1%, up by 0.27 percentage points year-on-year; zipper business revenue increased by 24.0% to 1.26 billion, with a gross margin of 42.9%, up by 0.34 percentage points year-on-year. During the reporting period, the production capacity for buttons was 5.9 billion pieces, an increase of 100 million pieces compared to the same period last year; the production capacity for zippers was 440 million meters, an increase of 15 million meters compared to the same period last year. The overall capacity utilization rate increased from 57.1% to 70.7%. With the continuous destocking of downstream brand garment companies and the completion and production of the company's Vietnam Industrial Park, the brand awareness and customer satisfaction in the overseas market continue to improve, and orders for both production and sales were booming in the first half of 2024.

3. Overseas growth is better than domestic growth, continuously verifying the substitution logic.

In the first half of 2024, the company's domestic revenue increased by 24.8% to 1.54 billion, and international revenue increased by 27.2% to 760 million, with international business growth outpacing domestic business growth. In the future, the company will take the production of the Vietnam Industrial Park as an opportunity to accelerate the layout of the international marketing network and the development of international brands. The Vietnam Industrial Park officially opened on March 20, 2024, and is currently able to take orders, produce, and deliver normally. Considering the first year of production, the capacity utilization rate of the Vietnam Industrial Park will not be high; plus the depreciation of fixed assets, although facing certain loss pressure in 2024, the internationalization strategy is an important future growth driver for the company.

4. The interim dividend is in line with expectations, and the logic of high dividend and stable growth continues to be realized. In the mid-term of 2024, the company's dividend cash is 234 million yuan, with a dividend payout ratio of 56.2%, in line with the company's announcement at the beginning of the year regarding the 2024 mid-term cash dividend plan, that is, the upper limit of the 2024 mid-term cash dividend does not exceed 60% of the net profit attributable to the shareholders of the listed company for the corresponding period. Since the company went public in 2004, it has distributed dividends 21 times, with dividend payout ratios of 88.9%/74.3%/94.3% for 2021/2022/2023, respectively, continuing to share the company's growth dividends with shareholders.4. Heilan Home

The dividend yield is relatively high, and the valuation is comparatively low within the industry, but the growth potential seems insufficient.

5. Jiansheng Group

I have previously highlighted this stock. It has a dividend yield of 5%, with a moderate valuation, and it has shown good growth potential in overseas markets. The stock has experienced a significant drop in the past, which presents a certain arbitrage opportunity.

VIII. Light Industry Manufacturing

1. Jiayi Shares

This company has been very successful in expanding overseas in the past two years, and its stock performance has been excellent as well, with a 105% increase this year, 63% last year, and 56% in 2022, making it a strong bull stock.

The dividend yield is also 4%, with a moderate valuation. If the company can maintain such a high growth rate next year, it still holds certain investment value.

However, the valuation growth rate is expected to decrease, as the stock has surged for three years, and there may not be many significant opportunities next year.

2. Jiangxin Home Furnishings

This is a company with very good growth potential in overseas markets, primarily in the United States.1. Overview:

Leader in Smart Home Technology, Homegrown Brand Sets Sail. The company is an important ODM supplier in the global smart electric sofa and smart electric bed industry. With excellent design and development, outstanding product quality, and reliable after-sales service, the company has established good long-term business relationships with internationally renowned furniture companies such as Ashley Furniture, Pride Mobility, HomeStretch, Raymours Furniture, and R. C. Willey. At the same time, the company owns internationally recognized brands such as MotoMotion, MotoSleep, MotoLiving, HHC, and Yourway, and vigorously develops its own brand business. As of 2024H1, the company has built over 100 small in-store shops in the stores of American retail customers, taking the first step in "building its own brand overseas."

2. Industry:

The penetration rate of smart home technology is increasing, with sofas and mattresses being the core categories. The rising demand for convenience and personalization among consumers is driving the popularity of smart furniture. In 2023, the global smart home market size was $101.07 billion, and it is expected to grow from $121.59 billion in 2024 to $633.2 billion in 2032, with a CAGR of 22.9%. Among them, the global functional sofa market size in 2022 was $29.8 billion, with the United States, as the birthplace of functional sofas, accounting for about 54% of the global functional sofa market, with a market penetration rate of 49.7%. The global smart electric bed market size in 2022 was $5.207 billion, with the United States accounting for about 44% of the smart electric bed market, with a market penetration rate of 14%.

3. Company: Actively Exploring Markets, Successful Construction of Own Brands

1) Products: The company values R&D, and the team comprehensively understands and satisfies customers' personalized needs from appearance, function, materials to quality, with breakthrough products introduced every year. As of the end of June 2023, the company has a total of 620 authorized patents domestically and internationally, and 215 patents are still under application.

2) Brands: The company owns its own brands such as MotoMotion, MotoSleep, and MotoLiving. Since 2023, the company has adopted an innovative "shop-in-shop" model, successfully introducing products and brands into the retail terminal market. As of 2024H1, the company has built over 100 small in-store shops in the stores of American retail customers, taking the first step in "building its own brand overseas."

3) Production: The company currently has two major production bases in Changzhou and Vietnam. The company started production in Vietnam in 2019, and all furniture products exported to the United States are currently produced in Vietnam. The company's global production layout not only reasonably avoids tariffs, anti-dumping duties, and countervailing duties but also maintains the company's sustainable operating ability.

4) Customers: On the one hand, the company has in-depth cooperation with leading companies such as Ashley Furniture. As these customers accelerate their market expansion, the company's order volume will gradually increase, achieving common growth. On the other hand, the company has increased investment and efforts in developing the American market, and new retail customers have made a significant contribution to the increase. From January to June 2024, the company has obtained 49 new customers, all of whom are retailers.

4. Yongxin Shares, Zijiang:

These two companies mainly produce paper packaging boxes, have good dividends, and have certain growth potential. They are suitable for holding a certain position.In recent years, the average dividend + capital gain yield can reach around 15%.

IX. Building Materials

Affected by the real estate market, the performance of this industry has been generally poor in recent years, but there are still some companies that stand out and are worth investing in, especially those that have gone global.

1. Mianbaobaby — Dividends of 6 percentage points, valuation around 10 is moderate, 15% growth is very prominent in real estate.

Revenue growth is relatively fast, with a high proportion of mid-term dividends returning to investors. In the first half of 2024 (24H1), the company achieved a revenue of 3.908 billion, a year-on-year increase of 19.77%, with net profit attributable to the parent and non-IFRS net profit of 2.44 billion and 2.35 billion, respectively, a year-on-year decrease of 15.43% and an increase of 7.47%. In the second quarter of 2024 (24Q2), the company achieved a single-quarter revenue of 2.425 billion, a year-on-year increase of 12.74%, with net profit attributable to the parent and non-IFRS net profit of 1.56 billion and 1.54 billion, respectively, a year-on-year decrease of 27.34% and a decrease of 3.72%. The pressure on profits in Q2 is mainly due to the decline in gross margin and the reduction in investment income. In the first half of 2024, the company distributed 2.3 billion in cash dividends (including tax), with a dividend payout ratio of 94.21%.

The company is one of the higher dividend varieties in the real estate chain. Except for 2020, when the company dynamically adjusted cash dividends due to the acquisition of Yufeng Hantang and other factors, the company has been returning to shareholders and investors with high dividends since 2017. In 2023, the estimated dividend payout ratio is about 66.10%, and the dividend yield is about 6.06% (calculated based on the closing price on July 30, 2024).

Artificial boards + customized home furnishings, the expansion of the existing renovation market and the clearance of artificial board market enterprises, with an average increase in production capacity: The main products of artificial boards include plywood, fiberboard, particleboard, etc., which can be used in industries such as furniture manufacturing, building decoration, and flooring. Since 2020, the number of enterprises in the artificial board industry has decreased significantly, and the average production capacity of enterprises or production lines has continued to grow.

Customized home furnishings upgrade from single products to whole home customization: Customized home furnishings have the advantages of high design and flexible customization, which can respond to different needs in a timely manner, attract and enhance customer stickiness, and the market size is growing rapidly. In 2023, the penetration rate of customized home furnishings has developed to over 50%, the high growth stage is gradually ending, and the new cycle will test the brand strength, channel strength, and design productivity of enterprises more.

The outlook for the home building materials market is positive: Urbanization deepens, and the demand for improved consumption increases. The贝壳研究院 conservatively estimates that China's home decoration market size will be around 3.9 trillion in 2024. With the arrival of the real estate stock era, the demand for renovation of second-hand houses nationwide increases, and the proportion of the existing housing renovation market will reach 60% in 2024.

2. BeiXin Building MaterialsBy the end of 2023, the company announced its inaugural equity incentive plan, intending to grant up to 12.9 million restricted shares to a total of 347 individuals, including company directors, senior management, and core personnel, representing 0.764% of the company's share capital. The incentive targets for net profit after deducting non-recurring gains for the years 2024-2026 are set at 4.265 billion yuan/6.164 billion yuan/6.473 billion yuan, with year-over-year growth rates of 22.0%/44.5%/5.0%, respectively. These ambitious growth targets reflect the company's aspirations under its "One Body, Two Wings, Global Layout" strategy.

X. Real Estate

Many people may have certain biases against investing in real estate industry stocks in recent years, feeling that they lack growth potential and are not worth investing in. However, the performance of some individual real estate stocks in recent years has challenged our perceptions.

1. Shenzhen Real Estate A

A stock with重组 expectation.

2. TeFa Service

TeFa Service has firmly established itself as the leader in the high-tech park track, with top-tier customer resources such as Huawei and Alibaba. By leveraging its accumulated service barriers, it will actively expand into new property service fields.

TeFa Service's primary service areas are technology parks and office properties, and it has already secured top-tier corporate customer resources in China, including Huawei, Alibaba, Tencent, Ant Financial, China Mobile, and DJI Technology. The company has been cooperating with Huawei for 24 years and with Alibaba for 9 years, mainly providing them with Integrated Facility Management (IFM) services and Internet Data Center (IDC) operation and maintenance services. As Huawei and Alibaba continue to upgrade their high-tech park property needs, the company, in undertaking core customer innovation business property management projects such as data center operation management, R&D center equipment facility management, and autonomous driving operation services, forms a service barrier through the accumulation of experience.

Government service revenue growth accelerates, becoming a new profit growth pole.

The company was the first in the country to carry out market-oriented government purchase of public service business and is moving towards professionalization and standardization.Dominating the Property Services Track in Industrial Parks, Pioneering New Tracks in Energy, Hospitals, and Ports

The company set high standards for entering the Shenzhen market in 2022, with hospital property services being a high-unit-price, high-collection-rate business format. Benefiting from the company's rich experience and substantial resources in industrial park property management, the company aims to create a dual advantage of "high quality + low price"; in 2023, the company made its first acquisition in energy property management. The construction of a modern energy system has unleashed the demand for energy property management, and there is a huge development space for clean energy storage. The property industry has a good structure, but the valuation is too high, and the increase this year is too large, making it unsuitable for investment.

3. China World Trade Center

The company owns a TOD project in the central location of Beijing's CBD area, which is a mature business district and ranks first in Beijing in terms of comprehensive performance. At the same time, the company's assets include office buildings, shopping malls, hotels, and apartments, with a rich variety and full functionality.

Office Buildings and Shopping Malls Operate Stably, Contributing to a Stable Source of Income

The company's main source of revenue is property leasing and management business, accounting for more than 80% of the company's revenue; among the property leasing and management business, office buildings and shopping malls contribute more than 80%. The occupancy rate of office buildings and shopping malls has been maintained at over 90% even during the pandemic, and the rental unit price has also begun to rebound. The revenue from the office building and shopping mall business segment is expected to maintain stable growth in the future.

Apartment and Hotel Recovery, Expected to Contribute New Performance Growth Points

The company's apartments underwent renovation and upgrading from 2018 to 2020, during which the occupancy rate was low. After the upgrade, the rental unit price of the apartments increased significantly. Relying on the supporting facilities of the China World Trade Center, the apartments are expected to become the preferred rental location for high-income groups in the surrounding area, and there is still potential for the rental unit price to increase. At the same time, its occupancy rate has already begun to recover. The hotel business was severely affected by the pandemic in 2022 and is expected to return to pre-pandemic levels after the impact of the pandemic is eliminated, contributing new performance growth points to the company.

Dividend Ratio Maintains a High Level and Continues to Improve

The company's operating cash flow has always been positive, and there are no large-scale investment and renovation plans in the short term. The stable cash flow can effectively support the company's dividends. The dividend ratio disclosed in the 2023 annual report has reached 104%, which is quite attractive.Growth is average, a 45% increase this year seems a bit excessive, and the valuation is not cheap, making it unsuitable for investment.

Eleven, Beauty and Personal Care

A branch of consumer goods, this industry still has quite a few excellent individual stocks with performance support, and these stocks also have good stock characteristics, which are worth paying attention to. The following are the ones I have emphasized this year, and looking at the industry performance in recent days, they are also the best performing, which shows that the analysis is logically sound.

1. Kosh Corporation

2. Jinbo Biotech

The above two are the most resilient in the beauty and personal care industry in the past two years.

3. Aesthetic Customer

This stock was a bull stock in the previous years, but its performance and competitive landscape are not as good as they were in the past few years.