Venture(US:VEMLY) Sou Hu Cai Jing·2025-07-30 02:54Core Viewpoint - The ChiNext board is experiencing structural opportunities amid increasing global tech competition, with the Tianhong ChiNext ETF showing significant price increases over various time frames, driven by valuation advantages and strong fundamentals [1][2]. Valuation Insights - The ChiNext index is currently at a significant valuation low, with a price-to-book ratio of approximately 4 times, marking a historical low of 32% since the index's inception. In contrast, the CSI 300 and CSI 500 indices have price-to-book ratios at 42% and 62%, respectively, highlighting the ChiNext's valuation advantage [2]. Performance and Growth - The ChiNext index has shown a strong performance, with an 18.74% increase since June 20, leading among major indices. Year-to-date, it remains in the top tier, demonstrating robust market resilience [4]. - The profitability turning point for the ChiNext is evident, with revenue and net profit both showing year-on-year growth, particularly a 20% increase in net profit for Q1 2025, providing solid support for the index's rise [8]. Historical Context - Historically, the ChiNext index has outperformed major indices during bull markets, with a cumulative increase of 141% since its base date, significantly surpassing the 50% increase of the CSI 300 index, validating its long-term growth potential [12]. Industry Strengths - The ChiNext's high elasticity is attributed to its deep coverage of new economy sectors, with over 65% of its constituents in key technology areas such as power equipment, electronics, pharmaceuticals, and communications. These sectors have recently shown marginal improvements in fundamentals, contributing to the index's momentum [14]. - The power equipment sector has risen by 29.4%, electronics by over 14%, pharmaceuticals by 11.6%, and communications by over 10%, indicating strong industry performance [14]. Research and Development - In 2024, the R&D expense ratio for ChiNext constituents is projected to reach 4.97%, significantly higher than that of the CSI 300 and Shenzhen Composite indices, reflecting a commitment to innovation [16]. - Continuous high-intensity R&D investments over three years are expected to yield a net asset return on equity (ROE) exceeding 12% by 2024, establishing a sustainable growth foundation through enhanced technological barriers [18]. Investment Strategy - The Tianhong ChiNext ETF, characterized by low valuation, high growth potential, and refined management, offers a clear investment strategy for investors looking to capitalize on the ChiNext's development opportunities [22].