Virtual reality (VR) is an important frontier direction of the new generation of information technology and a major forward-looking field of the digital economy.
Foreign capital voices support for the A-share market
On the morning of September 26th, the A-share Shanghai Composite Index opened low and rose, and as of midday closing, the index had returned to above 2900 points. According to Wind data, the net inflow of institutional funds exceeded 15 billion yuan in early trading today.
On the market, sectors such as real estate, hotels and catering, brewing, steel, and diversified finance saw the highest growth. Among them, multiple stocks in the real estate sector hit the daily limit up, with Sunshine Shares, Jintou Chengkai, Konggang Shares, Quzhou Development, OCT A, Shenshen Fang A and others recording the daily limit up.
The Baijiu sector, which is dominated by heavyweight stocks, continues to soar today. Rock shares and Shede liquor industry are up by the limit, Luzhou Laojiao, Shanxi Fenjiu and Jiugui Liquor are up by more than 6%, and Kweichow Moutai is up by more than 3%.
On the news front, the recent policy combination has significantly boosted market confidence, and foreign investment banks have also expressed their opinions.
According to the latest institutional brokerage report released by Goldman Sachs, the Chinese stock market experienced its highest daily net buying volume since March 2021 on Tuesday, the second highest level in the past decade. The buying frenzy this time was almost entirely driven by investors who increased their long positions, demonstrating the market's optimistic expectations for China's economic prospects and stock market performance. The report points out that although various Chinese stocks are favored by investors, the A-share market is undoubtedly the leader in this buying wave, attracting a large influx of funds.
Wang Ying, chief equity strategist of Morgan Stanley China, said in the latest comments that the unexpected policy support measures of the People's Bank of China should help improve investor sentiment and liquidity, and promote the onshore and offshore markets to make positive responses in the short term. The scale and long-term sustainability of the rebound depend on the macroeconomic recovery and the bottoming out of corporate profit growth.
Meta releases the latest VR device
On Wednesday local time, at its annual developer conference, American tech giant Meta unveiled its latest virtual reality (VR) headset, Quest 3S, with a starting price of $299. This device can be used to watch movies, run VR fitness apps, and play games. The company positions this helmet as a multitasking computer, competing with Apple's $3499 Vision Pro helmet launched in February this year.
In addition to Quest 3S, Meta also showcased its latest augmented reality smart glasses prototype on Wednesday and announced a series of new features for its Meta AI chatbot. After the announcement, Meta's stock price rose in the short term and reached a historic high.
Thanks to extensive marketing and lower prices compared to many competitors, Meta's previous Quest device became the best-selling VR headset, with millions of units shipped.
The VR industry is expected to exceed 350 billion yuan in scale
Virtual reality (VR) is an important frontier direction of the new generation of information technology and a major forward-looking field of the digital economy. As a window connecting virtual and reality, VR has become a new generation of information transmission carrier. In recent years, with the increasing maturity of VR technology, its industrial applications have developed rapidly and integrated into various industries, providing new support for the upgrading of traditional industries.
The Action Plan for the Integration and Development of Virtual Reality and Industry Applications (2022-2026) proposes five major tasks for the integration and development of virtual reality and industry applications. The Chinese virtual reality industry has ushered in a new round of policy benefits, and has initially established an ecosystem based on technological innovation. It is entering a development window period with product upgrades and integrated applications as the main focus.
According to People's Daily, relevant data shows that the scale of China's virtual reality market will continue to expand from 2021 to 2023. It is expected that by 2026, the overall scale of China's virtual reality industry will exceed 350 billion yuan.
The VR industry has a wide range of participants, running through various links in the industry chain such as core hardware, software systems, interactive technology, content services, and head mounted displays. There are over 260 concept stocks related to it in the A-share market. According to Securities Times Data Treasure, as of the close of September 25th, the total market value of concept stocks in A-shares was 3.1 trillion yuan.
List of oversold+high growth potential stocks released
Institutional research is an important channel for investors to understand the latest layout and industry trends of listed companies.
According to Data Treasure statistics, over 90% of VR concept stocks have received institutional research since the beginning of this year, with three stocks receiving more than 20 surveys within the year, namely Liade, Longli Technology, and Shentianma A.
Liad and Longli Technology have both received 21 surveys this year, making them the two most frequently surveyed companies. Liad's optical motion capture technology can be used for accuracy verification and evaluation of AI glasses positioning, 4D gesture tracking, etc. Currently, it has provided products to multiple AR/VR glasses manufacturers at home and abroad. The VR products developed by Longli Technology have been supplied in bulk to terminal brands such as Varjo and Meta.
From a valuation perspective, as of the close on September 25th, the rolling price to earnings ratio of 29 VR concept stocks is less than 20 times. Dahua Group, Sofia, Phoenix Media, Chinese Media, Kangguan Technology and other companies have relatively low rolling P/E ratios.
Among them, Dahua Corporation's rolling P/E ratio is below 10 times, and the company's "AR Yunjing" is based on AR technology, which achieves three-dimensional panoramic monitoring by linking videos, checkpoints, surrounding resources, etc.
Sofia's rolling P/E ratio is 10.19 times. The DIY Home integrated system independently developed by the company adopts core advantageous technologies such as 3D real-time engine and VR/AR virtual reality technology, which connects the entire process from front-end marketing design to back-end production and installation.
From the perspective of future growth potential, according to the unanimous prediction of more than 5 institutions, there are 22 VR concept stocks with a net profit growth rate expected to exceed 20% from 2024 to 2026. As of the close on September 25th, among these concept stocks, there are five that have experienced a pullback of more than 40% from their annual high, namely Jept, Sanlipu, Jingce Electronics, Runjian Shares, and Yongxin Optics.