The Ruiyuan Growth Value Mixed Fund, managed by star fund managers Fu Pengbo and Zhu Lin, has disclosed its first-quarter report for 2026. During the reporting period, the fund increased its positions in individual stocks within the PCB, semiconductor, and optical communication sectors that benefit from the rapid development of artificial intelligence. Zhongji Innolight Co.,Ltd. received significant additions, and the fund repurchased shares of Han'S Laser Technology Industry Group Co.,Ltd., a provider of intelligent manufacturing equipment services. Overall, the fund maintained a high portfolio allocation in the first quarter, reflecting a strategy focused on "targeting high-growth sectors and industry leaders."
As of the end of the reporting period, the net asset value per share for the Ruiyuan Growth Value Mixed Fund A was 1.9177 yuan. The fund's net asset value per share decreased by 2.58% during the quarter, compared to a decline of 2.43% in its benchmark index.
Regarding holdings, the fund's top ten major holdings included: Contemporary Amperex Technology Co.,Ltd. (300750.SZ), Suzhou Dongshan Precision Manufacturing Co.,Ltd. (002384.SZ), Eoptolink Technology Inc.,Ltd. (300502.SZ), Zhongji Innolight Co.,Ltd. (300308.SZ), Victory Giant Technology(Huizhou) Co.,Ltd. (300476.SZ), Suzhou Maxwell Technologies Co.,Ltd. (300751.SZ), Luxshare Precision Industry Co.,Ltd. (002475.SZ), TENCENT (00700.HK), Hangzhou Greatstar Industrial Co.,Ltd. (002444.SZ), and Han'S Laser Technology Industry Group Co.,Ltd. (002008.SZ). Zhongji Innolight Co.,Ltd. entered the fund's top ten holdings for the first time.
In terms of portfolio adjustments, the Ruiyuan Growth Value Mixed Fund reduced its positions in Eoptolink Technology Inc.,Ltd., Suzhou Dongshan Precision Manufacturing Co.,Ltd., Contemporary Amperex Technology Co.,Ltd., and Victory Giant Technology(Huizhou) Co.,Ltd., with the reduction ratio for each exceeding 10%. Positions in TENCENT, Luxshare Precision Industry Co.,Ltd., Hangzhou Greatstar Industrial Co.,Ltd., and Suzhou Maxwell Technologies Co.,Ltd. were also decreased.
The composition of the top ten holdings saw notable changes, as the fund increased its allocation to PCB, semiconductor, and optical communication stocks that benefit from AI's rapid development. The significantly increased weighting reflects the investment strategy and direction outlined in the fund's annual report.
Fu Pengbo stated that the fund also invested in core hardware companies within the PCB and optical module sectors, which demonstrate strong product and customer synergies. Rapidly growing AI demand is driving volume increases for upstream products, and these companies are continuously upgrading their technologies to meet customer needs. Some holdings benefit from AI-driven demand for high-layer-count PCBs, with capacity expansions leading to improved product mixes and better-than-expected earnings growth. Other significant holdings primarily cater to demand for high-speed computing servers and high-speed network switches or are positioned in high-growth segments of optical communication and interconnect.
The fund's key sector allocations also continued to include new energy photovoltaics, biomedicine, and manufacturing, largely maintaining similar exposures to the previous year. For its Hong Kong stock allocations, the fund focused on internet technology and innovative pharmaceutical stocks, expressing confidence in the business moats of key companies. Following market adjustments, overall valuations have returned to levels seen at the beginning of the previous year. With the dissipation of some earlier negative factors, the risk-reward profile appears favorable.
During the portfolio adjustment process, the fund also trimmed positions in some longer-held stocks, a decision based on assessments of individual companies' near-term growth potential and comparative fundamentals. These adjustments aim to sharpen the portfolio's focus on high-growth sectors and rapidly expanding companies, with positive results observed so far.
Fu Pengbo pointed out that the market gains in 2025 were largely attributable to valuation expansion, with earnings growth from listed companies contributing a smaller portion; non-financial enterprises even saw a slight decline in net profit. He expects valuation increases in 2026 are unlikely to match those of 2025, making corporate earnings growth and shareholder returns the core considerations for stock selection. As April begins, it remains to be seen whether large-cap and value styles will regain prominence and if the market will gradually shift towards pricing based on earnings and cash flows. Analyzing the 2025 annual reports and 2026 first-quarter reports of listed companies will continue to guide the search for firms with improving fundamentals and positive industry momentum.
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