In the fourth quarter, which stocks have public fund managers been researching? Year-end research often hints at their investment direction for the coming year. Notably, star fund managers like Zhu Shao Xing, who rarely appears in such activities, have drawn particular attention.
According to Wind data, as of December 8, public fund managers have intensified their research efforts in Q4 to position for year-end and spring market trends. Zhu Shao Xing, a seasoned veteran at Fullgoal Fund, has appeared multiple times in research records. Specifically, on October 30, he conducted an online solo research session on Sinoseal Holding Co., Ltd., a leader in the mechanical sealing sector. The next day, he joined colleagues for an on-site meeting with Luxshare Precision Industry Co., Ltd., a traditional leader in the Apple supply chain.
Two consecutive days of research are unusual for Zhu, who has over 20 years of experience as a fund manager. Looking at the two stocks’ performance: Luxshare, after a nearly 15% decline in H1, rebounded with a 74% gain in H2. Meanwhile, Sinoseal, following minor declines in September and October, has seen modest growth in recent months. As of December 9, Sinoseal’s trailing P/E ratio stands at approximately 18.5x.
**Holding for 25 Quarters Without Heavy Allocation** Zhu’s Fullgoal Tianhui Selected Growth fund has patiently held Sinoseal, raising questions about his strategy. During his solo research, Zhu focused on the company’s international business, asking about gross margins. Sinoseal responded that international projects, typically large-scale, show higher gross margins than domestic ones due to pricing advantages. The company also emphasized its strategy of capturing incremental market share before transitioning to stable recurring revenue from maintenance services.
Regarding its German subsidiary KS, Sinoseal noted stable performance and significant order growth in the first three quarters of 2025.
Zhu’s fund first appeared in Sinoseal’s top 10 shareholders in Q3 2019 and has remained since, though it never became a top 10 holding in his portfolio—likely due to its smaller market cap (~¥7.5B) compared to giants like Kweichow Moutai and CATL. Notably, Sinoseal lacks heavy institutional ownership, with Zhu’s fund being the sole public fund among its top 10 shareholders in Q3 2025.
**Strong Fundamentals: A Leader in Mechanical Seals** Sinoseal, founded in 1978, is China’s only listed mechanical seal specialist. Its products, widely used in petrochemicals, energy, and metallurgy, have dominated domestic market share since 2017. In Q3 2025, revenue rose 12.3% YoY to ¥1.28B, with net profit up 2.71% to ¥278M. Analysts highlight its “incremental-to-recurring” business model as a moat, ensuring long-term client stickiness and high-margin after-sales revenue. Overseas sales, exceeding ¥85M in H1 2025, are another growth driver.
Subsidiaries like Xindi Peer (specialty valves) and KS (Germany) also contribute synergistically. Industry sources suggest Zhu’s long-term stake reflects his preference for resilient, cyclical businesses—Sinoseal’s technical edge and steady growth align perfectly.
**Luxshare Precision: A Core Holding Rebound** In contrast to Sinoseal’s “hidden gem” status, Luxshare is a staple in Zhu’s top 10 holdings. After a brief exit in Q2 2025, it re-entered in Q3. During Zhu’s research, Luxshare emphasized its AI-driven growth, projecting stronger 2026 performance due to vertical integration and global partnerships. Q3 revenue surged 24.69% YoY to ¥220.9B, with net profit up 26.92% to ¥11.5B.
Key drivers include: - **Consumer Electronics**: AI terminals boosting demand for precision components. - **Data Centers**: 448G copper/1.6T optical solutions gaining traction with cloud/AI clients. - **Automotive**: Focus on smart cockpits and ADAS systems. - **Humanoid Robots**: Full-chain capabilities (excluding batteries), targeting 3,000 units in 2025.
Analysts see Luxshare as a long-term play in Zhu’s portfolio, leveraging AI and diversification.
*(Mentions of funds and stocks are for analysis only, not investment advice.)*
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