Core Viewpoint - The recent surge in institutional research on stocks, particularly the interest in Jing Sheng Machinery, indicates potential investment opportunities driven by solid fundamentals and industry trends [1][3]. Group 1: Institutional Research and Stock Performance - 381 companies were involved in institutional research this week, with approximately 70% experiencing price increases [1]. - Jing Sheng Machinery attracted attention from 115 institutions, surpassing other popular stocks, indicating strong interest in its business prospects [1][3]. Group 2: Valuation Screening - The first investment principle emphasizes valuation screening, focusing on the company's "cost-performance" ratio within its industry rather than just a low PE ratio [3]. - Jing Sheng Machinery operates in the semiconductor equipment sector, particularly in silicon carbide, which is a high-growth area, and its current valuation appears reasonable based on its financial performance [3][4]. Group 3: Fundamental Screening - The second principle highlights the importance of fundamental screening, with institutions focusing on Jing Sheng Machinery's core silicon carbide and semiconductor businesses [4]. - The company has begun mass production of silicon carbide crystal growth furnaces, indicating technological validation and market readiness [4]. Group 4: Industry Trends - The third principle involves screening for industry trends, with Jing Sheng Machinery positioned in the semiconductor equipment sector, particularly benefiting from the growth in new energy vehicles and photovoltaic industries [5]. - The demand for silicon carbide is driven by the need for efficient power devices, making it a critical component in these expanding markets [5]. Group 5: Investment Strategy - The stock price of Jing Sheng Machinery has shown volatility due to institutional research, but a long-term investment strategy should focus on valuation, fundamental performance, and industry trends [6]. - Investors are advised to wait for a price correction to a more reasonable valuation before making investment decisions, rather than chasing short-term price movements [6].