Zheshang Strategy Liao Jingchi: The Rise and Fall of Ten-Baggers (2019-2021): Core Assets and New Energy - A Deep Review of "Sector Consensus" Market Trends

English summary

A comprehensive review of ten-baggers from 2019 to 2021: all sectors flourished, with advanced manufacturing as the biggest winner. Ten-baggers accounted for 1.49% of all A-shares, of which 42.86% were new energy-related stocks. Excess returns concentrated in high-prosperity sectors, with the highest gain reaching 34.06x. Both valuation and earnings grew: median PE and PB increased 5.34x and 8.91x, respectively. Drivers: double tailwinds from ample domestic and overseas liquidity and industry prosperity. Ten-baggers mainly emerged in tech, consumer, and cyclical sectors, driven by surging demand under global liquidity easing and constrained supply, leading to earnings expansion. They were built on strong beta, and companies with higher ROE gained excess returns through competitive advantages. In subsequent corrections, about two-thirds were halved, with both earnings and valuations declining. After the new energy bull market, about 80% of ten-baggers experienced pullbacks, with 63% falling over 50%. Three main reasons include...