Long-term investment opportunities after coVID-19

The reshaping of the global industrial chain pattern will have a profound impact on the enterprises involved in all links. At present, domestic enterprises deeply involved in the global division of labor are mainly divided into three types when facing the industrial chain transfer:
The first category of enterprises can keep up with the pace of terminal customers, invest overseas in new production capacity in time, and avoid the impact brought by the relocation of industrial chain to the greatest extent. Electronics companies are the most representative. Against the backdrop of rising labor costs, escalating trade wars and slowing demand in China, it has become a trend for some production capacity to be transferred to Southeast Asia. For example, Lixun Precision has invested more than 1.7 billion yuan in Vietnam to cooperate with the relocation of downstream assembly plants to localize the supply chain and maintain stable growth of the company's performance. Fenda Technology set up a subsidiary in Vietnam to further optimize the company's capacity and strategic layout, reduce the company's production costs, so as to better understand and follow up customer needs.
The second type of enterprises have the willingness of capacity transfer, but the layout of such capacity abroad is relatively mature, so it is difficult to realize the capacity transfer. Such as Malaysia in recent years, in order to benefit from their skills in semiconductor research and development, improve the commercial law as well as the good infrastructure, has become the back-end semiconductor manufacturing center of southeast Asia, domestic enterprises in the local directly increases the difficulty of the factory, only through mergers and acquisitions way realize the indirect transfer of production capacity, since 2018, the rich micro electric, huatian technology has begun to domestic semiconductor manufacturers such as mergers and acquisitions sealing test factory in Malaysia.
Third class enterprise is mainly related to national economic security, public health and safety of the manufacturing industry (e.g., active pharmaceutical ingredients, breathing machine, etc.), outbreak exacerbated the importance of supply chain security, in the United States, Japan and other countries clearly put forward to support these areas under the background of enterprise back home, relevant domestic enterprises will be difficult to simply reduce impact by means of outsourcing industry chain.