Hundreds of billions in private equity funds are actively being researched, with Feng Liu, Zhou Yingbo, Lin Peng, and others each having preferred targets.

Caixin February 28 News (Reporter Feng Qijuan)
Since the beginning of the year, sectors such as commercial aerospace, mining machinery, electronics, and semiconductors have attracted significant attention from private equity firms.

Several billion-dollar private funds have been actively conducting research this year, with six out of the top ten private equity firms in research activities holding over 100 billion yuan. Looking at the sectors of the companies being researched, stocks listed on the Shenzhen Stock Exchange and the STAR Market remain the primary focus for private equity firms.

According to Wind data, well-known investment managers such as Feng Liu, Zhou Yingbo, and Lin Peng have appeared on the research lists of listed companies.

Research data shows that mining machinery and aerospace stocks are also closely watched by Gao Yi Asset Management. From the research records, Feng Liu notably participated in the research meeting of Hikvision on January 20. Mining giants Haian Group and Hangzhou Bank have also been researched twice this year by Gao Yi Asset Management.

In January this year, Zhuang Yan, founder of Heyuan Fund, participated in research on Zhejiang Mining Co., Ltd., which also produces mining machinery.

Notably, Yunzhou Capital has researched companies such as Chaojie Co., Ltd. and Guanglian Aerospace, both of which are involved in commercial aerospace concepts. Chaojie Co. is the only stock that this private equity firm has researched twice this year. Among the 11 on-site research activities held by Chaojie Co., well-known private equity firms such as Shicheng Investment and Panjing Investment have also appeared.

Since the beginning of this year, Lin Peng, founder of Hexie Hui Yi, has personally visited the research sites of Dongpeng Beverage and Jereh Group, a company in the energy equipment sector. Regarding chemical stocks like Huayi Group, Hexie Hui Yi has conducted two research visits. Additionally, well-known private equity firms such as Chongyang Investment and Qushi Assets have also appeared at Huayi Group’s research events.

Despite the market’s changing style, leading private equity firms are unanimously focusing their research efforts on the “new quality productivity” and core sectors.

Multiple Billion-Dollar Private Funds Active in Early Year Research

According to Wind statistics, as of February 28, the top ten private equity firms in terms of total research visits and the number of companies researched are largely the same, with only the ninth and tenth positions differing. It has been verified that six of the top ten private equity firms with over 100 billion yuan in assets include Danhua Spring, Gao Yi Asset Management, Panjing Investment, Hexie Hui Yi, Fusheng Asset Management, and Yuanxin Investment.

In these two research rankings, Zhenyuan Investment ranks first, having conducted 59 research visits covering 50 companies, making it the only private equity firm with over 50 research visits and over 50 companies researched during this period.

In the same period, the second-ranked Danhua Spring participated in 44 research activities, covering 43 companies; the third-ranked Gao Yi Asset Management participated in 40 research activities, covering 30 companies.

As of now, there are 15 private equity firms that have conducted at least 20 research visits and researched at least 20 companies this year.

Regarding the sectors of the researched companies, private equity firms still pay relatively little attention to the Beijing Stock Exchange (BSE). Only 60 private equity firms have participated in research on BSE-listed stocks this year. Among them, Shanghai Lanhai Investment, a private equity firm focused on equity investments, has researched three BSE stocks: Kaide Co., Ltd., Kemar Materials, and Fuji Da; additionally, five private equity firms, including billion-yuan private firm Shifeng Asset, have researched two BSE stocks each—Tongli Co., Ltd. and Tietuo Machinery.

In comparison, stocks listed on the Shenzhen Stock Exchange remain the core focus for private equity research. Private equity firms also show relatively high frequency in researching STAR Market stocks.

Which Stocks Did Feng Liu, Zhou Yingbo, Lin Peng, and Others Research at the Start of the Year?

Since the beginning of the year, private equity firms such as Gao Yi Asset Management, Yunzhou Capital, and Hexie Hui Yi have clearly focused their research on core sectors aligned with their investment styles.

According to Wind industry classifications, Gao Yi Asset Management has paid particular attention to stocks in the industrial machinery, electronic equipment and instruments, electronic components, aerospace, integrated circuits, and regional banks sectors.

Overall, Gao Yi Asset Management has researched the most stocks in the industrial machinery sector, including three mining machinery stocks: Nankuang Group, Nape Mining Machinery, and Zhongchuang Zhiling; as well as 3D printing stocks Huashu Gaoke, CNC tool stock Huarei Precision, and power equipment stock Zhenyu Technology. Research records show that Huashu Gaoke’s products are mainly used in aerospace.

Before the Spring Festival, Gao Yi Asset Management researched two aerospace stocks: AVIC Western Aircraft and Guanglian Aerospace. The former mainly focuses on military large aircraft assembly, while the latter’s main businesses include aerospace tooling, aerospace parts, and drones.

In January, Gao Yi Asset Management researched three electronic equipment and instrument stocks: Jingzhida, Hikvision, and Aike Optoelectronics. Among them, Feng Liu, Wang Yanwei, and Yan Shilin appeared on Hikvision’s research list on January 20.

Since the start of the year, Gao Yi Asset Management has only researched two stocks twice: Haian Group and Hangzhou Bank, with the former specializing in mining giants and the latter being a regional city commercial bank.

It is worth noting that among the CPO leading stocks, Zhongji Xuchuang was also on the research list at the end of January, alongside Gao Yi Asset Management, Yunzhou Capital, Juming Investment, Panjing Investment, and Fusheng Asset Management, all of which are billion-yuan private funds.

Since the beginning of the year, Yunzhou Capital has focused its research on stocks in the electronic equipment and instruments, electronic components, integrated circuits, and auto parts and equipment sectors.

In January, founder Zhou Yingbo visited the research sites of Chaojie Co., Ltd. and Jingce Electronic. Besides Jingce Electronic, Ding Junfeng also appeared at the research site of Yangjie Technology. Partner Lü Yiwen has already researched companies such as Chaojie Co., Ltd., Guanglian Aerospace, and Amaton this year.

Chaojie Co., Ltd., a private company in the auto parts sector, is the only stock that Yunzhou Capital has researched twice this year. Zhou Yingbo and Lü Yiwen visited the site separately. According to research records, Chaojie Co., Ltd. has achieved stable, small-batch deliveries to private rocket companies over the past year, accumulating R&D and manufacturing experience. The company also has a dedicated commercial aerospace team.

Statistics show that Chaojie Co., Ltd. has held 11 research meetings this year, all in person. After the Spring Festival, they held two consecutive on-site meetings on February 25 and 26. Well-known private equity firms such as Shicheng Investment and Panjing Investment also appeared on the research list.

Since the beginning of this year, Hexie Hui Yi has focused on researching stocks in the electronic equipment and instruments, electronic components, interactive home entertainment, and life sciences tools and services sectors.

At the end of January, Hexie Hui Yi’s founder Lin Peng and Managing Director Han Dong jointly conducted an on-site research visit to Dongpeng Beverage; on February 4, Lin Peng appeared at the research site of Jereh Group, a company in energy equipment.

Statistics show that Huayi Group, a chemical stock, is the only stock that Hexie Hui Yi has researched twice this year. The team participated in on-site research on January 27 and February 25. Other private equity firms such as Chongyang Investment and Qushi Assets also appeared on Huayi Group’s research list after the Spring Festival.