China Jianyin Investment: Mergers and acquisitions in the new cycle, suggest laying out from four main lines.

The research report of Zhongjin Company believes that as a fundamental institutional system in the capital market, M&A restructuring is an important tool to support the transformation and upgrading of China's economy and optimize its structure. Zhongjin believes that this round of policy has strong determination and market consensus, and is expected to continue the prosperous trend. Based on the current policy direction and market characteristics, it is recommended to focus on four main lines: 1) Emerging industries, especially technology innovation mergers and acquisitions, are still the strongest policy support direction. Focus on emerging pillar industries with strong financial strength and high R&D investment willingness, in line with the construction of a modern industrial system and the development of new productive forces, pay attention to integration opportunities in the "dual innovation" sector industrial chain. 2) Consolidation trend of leading companies in traditional industries. Focus on leading companies in sectors such as chemicals, machinery equipment, automotive parts, electricity, coal, and transportation with strong liquidity and integration capabilities. 3) State-owned enterprise market value management. 4) Diversified choices for unlisted companies. Against the background of changes in the IPO environment in recent years, some unlisted companies still have a high willingness to choose M&A restructuring as a securitization path. Focus on unlisted high-quality enterprises with high ROE, income, and profit growth rates, and seize investment opportunities brought by the linkage between primary and secondary markets.