Reborn in 2012, building a new energy empire

A week passed quickly, and at 11 a.m. on Friday, Jiang Haoran opened his personal trading account.

The soybean meal 1301 contract has broken through the 4000 mark and has been fluctuating around 4050 in the past few days, with shrinking trading volume.

He moved the mouse and placed a close order for fifty lots at a price of 4080. This was significantly higher than the current price; if the order was filled, he would reduce his position; if not, it wouldn't matter.

He closed the trading software and had just picked up his teacup when there was a knock on the door.

"Come in."

The office door was pushed open, and two analysts walked in one after the other.

Zhao Lei was carrying a thick folder, and Lin Wei was holding a notebook. Both of them looked exhausted after a week of non-stop work.

"President Jiang, this is the infrastructure sector target selection report that we compiled as requested, focusing on listed companies with state-owned enterprise backgrounds and long-term bottoming-out periods." Zhao Lei placed the folder on the table.

"Thirty-seven companies were initially screened, and those with delisting risks or a history of financial fraud were excluded. In the end, sixteen companies that met the criteria were retained."

Jiang Haoran nodded, but didn't open it immediately: "Thank you both for your hard work. I'll leave the report here and take a look first. I'll contact you again if I need anything."

The two left and gently closed the door behind them.

Jiang Haoran then opened the report. He skipped the detailed analysis on the following dozens of pages and went straight to the summary table on the first page. The names, codes, main businesses, market capitalization, price-to-earnings ratios, and stock price ranges for the past three years of the sixteen companies were neatly arranged.

His gaze swept quickly across the form, his fingertips lightly tapping on several names as he looked. Qinglong Pipe Industry, Guangdong Hydropower, Anhui Construction Engineering, Qianjiang Water Conservancy, Guotong Shares…

The images in my memory began to overlap with the data on the paper.

Half an hour later, he pressed the phone: "President Chen, Chang Yu, please come over here."

Soon, Chen Jingge and Chang Yu entered the office one after the other.

Chang Yu has been tired of playing games lately, so he's at the company learning from Chen Jingge and is full of energy.

"Sit down." Jiang Haoran turned the report to them. "Take a look at this."

Chen Jingge picked up the report and started looking through it. Chang Yu also came over, but the technical terms and financial data made his head spin.

"This is..." Chen Jingge quickly scanned the list, "Companies in the infrastructure sector?"

"Yes." Jiang Haoran leaned back in his chair. "Zhao Lei and Lin Wei spent a week screening them out. Sixteen companies, all state-owned enterprises, whose stock prices had been hovering at the bottom for two or three years."

Chang Yu scratched his head: "Hao... President Jiang, these companies all look like they're barely alive. The stock prices aren't fluctuating, and the trading volume is low."

"It's precisely because we're half-dead that we have a chance." Jiang Haoran smiled, took a pen from the pen holder, and quickly sketched on the form.

The sound of the pen tip gliding across the paper was clear and crisp.

"Qinglong Pipe Industry specializes in prestressed steel cylinder concrete pipes and is a core supplier for the South-to-North Water Diversion Project and other large-scale water diversion projects." He wrote down the numbers next to him, "Buy two million."

"Guangdong Hydropower, a leading water conservancy project in South China, has undertaken the construction of more than a dozen large reservoirs." He then wrote down another number, "also two million."

Anhui Construction Engineering Group, 850,000.

"Qianjiang Water Conservancy, 700,000."

……

He checked off ten companies in total, noting the specific purchase amount next to each one. Finally, he wrote the total amount at the bottom of the page: fifteen million.

Chen Jingge frowned slightly as he looked at the numbers: "Haoran, isn't investing fifteen million at once too aggressive? These companies' stock prices haven't moved for years, what if..."

"There's no 'what if'," Jiang Haoran interrupted him, his tone firm. "Uncle, do you remember the spirit of this year's Central Economic Work Conference?"

Chen Jingge was taken aback: "What?"

"Stabilize growth," Jiang Haoran uttered. "The economic data for the first half of the year has just been released: GDP growth has slowed, exports are weak, and consumption hasn't picked up. What can we rely on to stabilize growth?"

"Of the three drivers of growth, exports are subject to external control, consumption takes time to cultivate, and the only one that can produce quick results is investment. Moreover, it must be investment that the government can lead."

He stood up, walked to the window, and turned his back to the two men: "At the State Council executive meeting in mid-July, one of the key points regarding economic work was 'increasing effective investment in key areas.' The market's goldmine is right here; this is already a signal. Where will the investment go next?"

He turned around, his gaze sweeping over the two of them. "There is still room for traditional infrastructure development, but more important are areas that address shortcomings and benefit people's livelihoods: urban renewal of old pipe networks, renovation of farmland irrigation facilities, rural water supply security, and flood control and disaster reduction projects."

Chang Yu was a little confused: "What...what does this have to do with the companies we invested in?"

"This is very important." Jiang Haoran walked back to the table, pointing to the report. "These projects have high technical barriers, long investment cycles, and the returns aren't particularly attractive. Private capital is unwilling to enter on a large scale, and may not even possess the corresponding qualifications and capabilities. Who can undertake them?"

"Private capital is unwilling and unable to enter these fields. Who can take them on? Only these state-owned enterprises." He turned around, his gaze sharp. "They have the qualifications, the experience, and the existing teams. When the favorable policies come, projects, funds, and orders will flood into them like a tide."

Chen Jingge's brows gradually relaxed, his fingers slowed their tapping on the edge of the table, and he fell into thought.

Chang Yu listened intently, and subconsciously asked, "Then...then the stock price will go up?"

"It won't just go up." Jiang Haoran walked back to the table, pointing his finger at the report. "These companies have market capitalizations of several billion, and their stock prices have been falling for years. The money that was going to run has already run; what's left are just holding onto inactive shares. Once a steady stream of large orders comes in and their performance reaches a turning point, do you think they won't go up?"

Chen Jingge's brows gradually relaxed, his fingers slowed their tapping on the edge of the table, and he fell into thought.

Having invested in the market for many years, he naturally understands this logic: stocks that have fallen to rock bottom often have the greatest potential for rebound once their fundamentals reverse.

"Look at Qinglong Pipe Industry," Jiang Haoran said, pulling up a data page on his computer. "It's one of the few companies in China that can produce ultra-large diameter prestressed steel cylinder concrete pipes."

"This type of pipeline is a core component of large-scale water diversion projects, with high technological barriers. If the country really wants to carry out large-scale water conservancy infrastructure construction, promote inter-regional water transfer, and upgrade urban water supply networks, it will be inundated with orders."

He then pulled up the page for Guangdong Hydropower: "Look at this one, the absolute leader in water conservancy and hydropower projects in South China. If Guangdong, Guangxi, Hunan and other places need to build or reinforce reservoirs or upgrade irrigation systems, it will be the top priority contractor."

"But..." Chen Jingge looked up, "whether these policies will be implemented, and if so, on a large scale, are all unknowns. Isn't it too risky to bet heavily on them now?"

Jiang Haoran met his gaze and slowly said, "Uncle, what kind of money do you make from investments? It's money from the difference in understanding."

"By the time everyone sees the policy documents being issued and orders actually coming in, the stock price will have already skyrocketed. What we want to profit from is the 'expectation gap' between now and the stock price taking off."