Market Overview

On May 6, 2025, the A-share market reflected the impact of the “May Day” holiday, with the three major indices opening and closing higher. The Shanghai Composite Index rose by 1.13%, the Shenzhen Component Index increased by 1.84%, and the ChiNext Index gained 1.97%. The CS A500 Index rose by 1.33%, with the A500ETF fund (512050) increasing by 1.42%. The trading volume of A-shares reached 1.36 trillion yuan, with over 4,900 stocks rising.

Huaan Securities’ Outlook

Huaan Securities Co., Ltd., a securities institution operating in the securities brokerage sector, provided insights into the market outlook for May. The company noted that after the rapid impact of the U.S. “reciprocal tariffs” in April, the market has been continuously recovering and maintaining a high-level fluctuation. For May, the market is expected to continue this trend with limited upward momentum and downward risk. The company recommends a “dumbbell-shaped” configuration strategy, focusing on growth technology and stable dividend assets.

Sector Performance

The securities sector showed strong performance in the first quarter of 2025, with more than 70% of listed securities companies reporting increased revenue and net profit. The rise in market trading volume and active trading contributed to the improved performance of securities companies. The combined revenue of 42 listed securities companies reached 125.93 billion yuan, a 27.6% increase from the same period last year. Net profit increased by 83.48% to 52.18 billion yuan.

Company Recommendations

Huaan Securities issued buy ratings for several companies, including Top Screen Group, Three Squirrels, ShengXiang Biotech, and Kefu Medical. The recommendations were based on their respective business performance and growth potential. For instance, Top Screen Group’s Q1 performance met expectations, with rapid expansion in robot products. Three Squirrels faced revenue fluctuations due to the timing of the Spring Festival, while ShengXiang Biotech’s respiratory testing products showed sustained high growth. Kefu Medical’s income growth was steady, with rehabilitation products performing particularly well.

Conclusion

Overall, Huaan Securities Co., Ltd. expects the market to continue its high-level fluctuation in May, with a focus on growth technology and stable dividend assets. The company’s recommendations reflect a positive outlook for the securities sector and specific companies within it, indicating a promising period for investment.