On January 16th, China Taiping Fund manager Cheng Zhouzhong shared his outlook on the investment prospects for 2024. Cheng pointed out that looking ahead to 2024, the overall profitability of listed companies may experience positive growth. Excluding the financial sector, this growth may fall between 5% and 10%. Some leading companies in the industry will likely be the first to emerge. The market in 2024 is expected to be relatively better, with some structural opportunities. However, the possibility of a significant index-level market rally in 2024 is not very high. The conditions for such a rally are not yet in place, but there will definitely be structural opportunities. In the consumer sector, Cheng is bullish on two areas: healthcare and essential consumption. Cheng believes that in the context of an aging population, the entire healthcare industry is relatively certain and can benefit from the aging population. From a larger policy perspective, the healthcare industry has already hit bottom and is rebounding. High-quality enterprises have started to emerge after a period of adjustment. Within the healthcare sector, Cheng is relatively optimistic about companies excelling in formulation exports and internationalization, as well as the raw materials sector. Chinese raw materials have a strong competitive advantage globally. In the second half of 2024, the raw materials sector will see a turning point in destocking, and there will be an opportunity for price and quantity recovery. Chinese raw material companies hold a high position in the global supply chain. In terms of consumption, Cheng is positive on essential consumption. In 2024, protein prices are expected to stabilize, and even potentially rise in the second half of the year. 2024 will bring about a slight inflationary environment, which will benefit the entire food industry, especially essential consumption. Regarding the new energy sector, Cheng believes that after a year of adjustment, 2024 may bring about opportunities for recovery. The new energy race includes new energy vehicles, photovoltaics, and smaller sectors like energy storage. Despite the 30-40% growth in the photovoltaic industry in 2023, the global industry is expected to grow by 15%-20% in 2024. Additionally, from a supply and demand perspective, as demand continues to rise, the growth rate of supply is slowing down. New areas include grid transformation and rapid charging. In the TMT sector, Cheng is relatively optimistic about the improvement of domestic computing power, including innovative technology, and cyclic fluctuations in consumer electronics. Overall, consumer electronics present short-term opportunities. However, the industry still needs heavyweight new products to drive overall demand. Apple's MR may be a direction, but it is relatively expensive, and whether it can drive the entire industry remains to be seen. Moreover, in the manufacturing sector, Cheng has always been optimistic about the "specialized, refined, new" direction. In the cyclical sector, Cheng believes that the ceiling for many cyclical industries has been reached. Therefore, there may be limited space for growth, but there could be further concentration. Additionally, after periods of supply and demand mismatch, there may be opportunities. The cyclical sector will experience elasticity in response to PPI prices. Although there may not be much change in production volume, there is significant elasticity in prices and profits. Therefore, Cheng is relatively focused on the cyclical sector's short-term investment opportunities in 2024. Regarding the financial sector, Cheng is relatively cautious. From a broader policy perspective, the process of financial institutions benefiting entities will continue. Therefore, opportunities for investment in the overall financial sector may be relatively limited. There may be some individual opportunities for companies that focus on dividend yields, as the market also pursues so-called dividend rate companies, but overall, Cheng is relatively cautious about this sector.