[Red Envelope] Who is the next Yunnan Energy?

Foreword [Taogu Ba]

The core of trading is unity of knowledge and action

A trading expert with ten years of experience once said the true essence of trading is never about exhausting every means to catch every market fluctuation but about practicing these four words throughout your life

The market is always changing, with hot spots rotating and cycles shifting. The rise of legendary dragons and the end of market trends often happen in the blink of an eye. Some obsess over technical indicators, others focus on capturing news catalysts, but ultimately they lose themselves in chasing gains and avoiding losses—because they understand countless trading theories but fail in real trading due to their own inner struggles.

Trading has always been a long journey of self-cultivation, testing not only the ability to analyze upward logic and identify breakout dragons but also the resilience of one’s mindset. When reviewing, one can accurately see the trend; in real-time, fear causes missed entry points. Even with strict rules for take-profit and stop-loss, greed and illusions often lead to profit withdrawal and increased losses. This is the gap between knowledge and action, a threshold most traders find hard to cross.

After ten years of accumulation, seasoned traders understand that the highest realm of trading is inner harmony with the market. The so-called unity of knowledge and action means having the courage to act decisively when recognizing new cycle signals; maintaining clarity and discipline to exit promptly when misjudging; and staying firm in one’s trading system when faced with tempting stocks.

There’s no need to chase every opportunity. True winners make their cognition instinctive through daily practice, letting discipline conquer emotions. When every decision is logical and every operation aligns with your true self, trading ceases to be a battle with the market and becomes a reconciliation with oneself. This is the ultimate truth that ten-year traders have realized.

1. Trading Review:

2. Huasheng Tiancheng: Still within the pattern; recent repeated emphasis that the logic remains, so the pattern continues.

3. Runze Technology: Still within the pattern.

4. Yasheng Group: Yesterday, dipped about -2% for bottom fishing. Betting on a second-day rebound. Today, as expected, it surged, with half of the gains wiped out, remaining within the pattern.

5. Market Breakdown:

(a) Index Understanding: The indices rebounded collectively, with the Shenzhen Component Index up over 2%, and the ChiNext Index up over 3%. Total trading volume in Shanghai and Shenzhen was 2.4 trillion yuan, down 249.7 billion from the previous trading day. Over 4,500 stocks rose, showing overall sentiment recovery. However, the actual limit-up streak was only 2 days, indicating short-term sentiment is still fragile.

(b) Limit-up Tiers:

The highest limit-up streak is 5 days, with continuous one-word (single limit-up) stocks, followed by three-day streaks, also one-word. Overall, the market’s bullish sentiment remains weak. Yunnan Energy’s breakthrough of 7 days of limit-up was suppressed, making it the first dragon to break the ice after the holiday. Overall, Yunnan Energy’s five-day post-break performance exceeded expectations, with funds attempting to guide a new rally. But short-term market sentiment is poor, and during the meeting period, regulators have not relaxed their tightening measures. Therefore, the sustainability of various modes should be viewed with lowered expectations, mainly for arbitrage. Today, Yunnan Energy’s performance was decent throughout the day, so the expectation of a new high remains. The maximum number of limit-ups that can be participated in has dropped to 2 days; stocks with turnover from second to third limit-up tomorrow can be considered for trial.

As for Shun Na Shares, as a supplement to Yunnan Energy’s rally, can it become the next Yunnan Energy? If it opens weak but turns strong early tomorrow, with strong capital support for a rebound, then it could be the second phase of Yunnan Energy.

3. Sector Analysis:

(a) Computing Power Hardware (Leading Theme)

Core Catalysts:

• Explosion in AI inference demand: Nvidia sets the tone for AI entering inference phase, shifting from “model training” to “model application,” with surging demand for 800G+ optical modules, PCBs, and cooling solutions.
• Policy + Industry resonance: “Compute and power synergy” included in government work reports, accelerating domestic substitution, with fiber optics and optical modules prices rising.
• Capital grouping: Tech mainline is highly certain, with institutional accumulation, leading the ChiNext rally.

Strong/Limit-up Stocks:

• Changguang Huaxin (20cm, hitting new highs), Zhongying Technology, Xunjie Xing, Dongshan Precision, Huilv Ecology, Guanghe Technology, Changfei Optical Fiber.

(b) Power Sector (Strong rebound)

Core Catalysts:

• Essential need for compute-power synergy: AI data centers’ electricity consumption surges, green power/grid becoming the foundation of computing infrastructure.
• Policies + Orders: Over 82.5 billion yuan invested in power grids annually; ultra-high voltage and smart grid tenders are intensive, with capacity electricity prices underpinning performance.
• Defensive attributes: Low valuation + high dividend yield (average over 5.2%), preferred for risk aversion.

Limit-up Stocks:

• Lvfadian Power, Huadian Energy, Jinko Technology.

© Commercial Aerospace (Strong momentum)

Core Catalysts:

• Policy boost: National commercial aerospace bureau established, with over 60% of launches expected to be commercial by 2026, and domestic production rate exceeding 80%.
• Industry explosion: Intensive maiden flights in March (Li Jian No. 2, Zhuque No. 3, etc.), reusable rockets reducing costs, satellite networking accelerating.
• Event catalysts: Shanghai Commercial Aerospace Conference upcoming, launch season approaching.

Limit-up Stocks:

• Aerospace Electric, Zhongheng Design.

(d) Oil & Gas / Coal (Leading decline)

Core Catalysts:

• Diminishing geopolitical premium: Trump’s statement that conflicts are basically over, Houthi blockade concerns cleared, oil prices plunged over 9%.
• Policy pressure: G7 + IEA plan to jointly release strategic oil reserves, suppress oil prices.
• Capital flight: After previous surge, profit-taking concentrated, quantitative trading intensifies sell-offs.

Leading Decliners:

• Oil & Gas: Zhunyou Shares, Intercontinental Oil & Gas (limit down).
• Coal: China Coal Energy (big drop).

4. Tomorrow’s Opportunities:

(a) First limit-up to second limit-up: Zhongdian Xinlong + Haio Shares;

(b) Continuous follow-up of limit-up tiers: Qunxing Toys;

© Rebound pattern: Shun Na Shares;

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