Wang Jiahao from GF Machinery:Amidst the Many Paths, Seek Not the Universe but the Heart
Introduction: Wang Jiahao, a senior analyst at GF Machinery, graduated from Zhejiang University and Johns Hopkins University. With four years of securities research experience, he began his career as a transportation analyst and transitioned to machinery research in 2022, becoming a "rookie" in the machinery industry. Starting with coverage of the shipbuilding supply chain and upstream equipment, he gradually expanded into subfields such as rail transit, natural gas heavy trucks, and compressors. Although most of the sectors he covers are niche and less prominent, he is fully committed, tirelessly "panning for gold in the desert," striving to offer his clients better opportunities and uniqueinsights. Headheres to a meticulous, in-depth, and compelling research style, continually growing while staying true to his original aspirations.
I. Rebellion and Obsession: Exploring the Diverse Paths of Life
Going back over a decade, Wang Jiahao, now emerging as a rising star in his field, was once a “rebellious teenager” who had just entered middle school. Back then, he refused to do repetitive homework, often debated with teachers, and was frequently "punished" by standing in the hallway. He seemed to be the class's "typical troublemaker" and defiant of authority. However, when it came to things he was interestedinandfoundmeaningful,hewouldbecomesoabsorbedthathewouldlosetrack of time, often studying for an entire night. On one occasion, even while standing in the hallway for punishment, his mind wandered through the worlds of math, physics, and history. Nevertheless, this never affected his academic performance his English and Chinese grades remained above average, while subjects like math, physics, and history, his strengths, consistently ranked at the top.
"Looking back, I realize how lucky I was. The understanding and tolerance of my parents and teachers were my greatest support at that time." Eventually, Wang Jiahao was admitted to the School of Economics in Zhejiang University with excellent grades, and he carried this rebellious spirit into college, where he achieved near-perfect scores in all the courses he was truly passionate about.
The "rebellion" and "obsession" he cultivated during his school days evolve into guiding principles in his professional life "Rebellion grants me a fair perspective, while obsession keeps me focused on in-depth research. Both of them also make me realize the value of patience and persistence."
In his research work, he is rarelyswayed byothers' opinions and always maintains asense of rationalityand skepticism.Hedares to challenge "authority" and "consensus", which enables him to provide fair and balanced recommendations and judgments, earning the trust of many buy-side clients.
In 2021, when there was uncertainty in the market about whether the shipbuilding cycle had begun and many believed that tanker orders would not materialize on a large scale under the carbon neutrality trend, Wang Jiahao, through meticulous research and careful industry observation, confidently predicted that tanker orders would be inevitable, though the recovery of profitability would take longer. By early 2024, when 17 VLCCs were ordered globally in January and February, it became clear that the shipbuildingcycle was indeed on the horizon. "I believe the investment research process is about breaking established perceptions and daring to challenge the 'truths' that appear on the surface. There will be confusion and repeated questioning, but that’s also the joy of this work."
When it comes to things he is passionate about, Wang exhibits an extraordinary level of focus and dedication. During a roadshow on shipbuilding, a client even asked him if he had worked in the industry for many years. Embarrassed, he replied, "No," explaining that he simply loved the shipbuilding industry and had been deeply immersed in its research.
Looking back from where he stands today, rebellion and obsession have intertwined to shape his path of growth. The journey of life is diverse, on the answer sheet of riding the waves and exploring the future, Wang continues to seek his own answers.
II.Adhering to Patience and Perseverance, Seeking Water in the Desert
After graduating from university, standing at the crossroad of life, he resolutely embarked on the path of sell-side research.
Many believe that sell-side research is fiercely competitive, but from another perspective, it is also a fully market-oriented and relatively free and inclusive field. He views this as fertile ground for his growth and work. In his opinion, "Sell-side research does not require homogeneous research and services, ineffective noise or extreme efforts that lead to burnout. What it needs are diverse voices, perspectives and research content. The key to sell-side research lies in influencing and changing others' viewpoints, and anticipating and understanding market and industry trends."
He was introduced to the industry by his mentor Yan Hai from Shenwan Hongyuan Transportationandlatertransitionedintothemachinerysectorundertheguidanceof Dai Chuan at GF Machinery. When he first entered the machinery industry, he didn't focus on the high-profile subfields but instead chose to delve into less-traveled areas like oil services, coal mining machinery, shipbuilding and mining equipment, rooting himself in areas that others had previously overlooked or dismissed as lacking potential. He believes that his decision to pursue sell-side research was not driven by a desire for quick success, but rather by his love for the work and his passion for influencing and changing others through his efforts.
In his view, while the sectors he covers may represent only a small branch of
the broader machinery industry, they are not easy to research. Studying cyclical sectors requires both long-term and broad perspectives to understand their position and patterns from a higher vantage point. For example, in his research on shipbuilding, the machinery team conducted a 100-year review of the industry's cycles. In their oil services research, they painstakingly dissected the financial reports of nearly every major domestic and international oil services company, attending and translating every earnings call from global industry giants. He spent six months writing a report on Neway Valve, a general valve company, conducting extensive research and breaking down each of its downstream sub-industries. The final 60-page in-depth report impressed many clients.
He closely monitors the latest developments in the industry, consistently producing high-quality and insightful research, and reporting to clients on a weekly basis. Underthe leadership of the chief analyst, "GF Machinery" has gradually built influence in the shipbuilding sector. A year ago, to systematically track the development trends in the shipbuilding sector, he initiated the first-ever series of conference calls on the shipbuilding sector, named the "Ship Talk" series. Over the past year, it has been updated to 18 sessions, with one organized every 2-3 weeks on average. The "Ship Talk" series provides a broad platform for investors to track the development of the sector from various perspectives along the shipbuilding supply chain. Additionally, he and his team released 23 in-depth reports on the oil services sector, guiding investors through the unfamiliar oil services industry and uncovering numerous quality companies and investment opportunities. Fortunately, over the past two years, the sectors he covers have gradually presented many opportunities, which he considers a pleasant surprise.
"The key to research is not about pursuing ineffective competition or excessive overtime, but about staying true to the original purpose of research, maintaining a high level of enthusiasm and focus, and having a sharp eye for spotting opportunities." He believes there are many paths to success. The market doesn’t only value sectors and companies that are highly visible and popular; if one can truly uncover the value of niche sectors and companies and produce meaningful research, the market will still pay attention.
Even when his work is busy, he continues to enjoy hobbies like fishing and poker. To him, both share a common trait the need for patience. One must wait for the right opportunity and give everything to capture it when it arises. Opportunities are unevenly distributed across time and space; when they haven't appeared, one must wait patiently, but when they do, it's crucial to seize them with full force. At the same time, it is essential to assess the situation. When faced with a trap or when the odds are against you, it's important to know when to give up and conserve your strength. When asked about his guiding principles, he said, "I'd rather search for water in the desert, where opportunities seem scarce, than chase afterbubbles. I have the patience and perseverance for that."
III. Navigating the Waves: Conducting Research with Direction and Structure
In the process of building his research framework,Wang Jiahao believes that the two people who had the greatest influence on him were his mentors, Yan Hai from Shenwan Hongyuan Transportation and Dai Chuan from GF Machinery.
Yan Hai guided him in establishing his cyclical research framework after entering the industry. To Wang, Yan Hai was driven by endless passion and worked with immense diligence. Even though Yan’s roadshow participation ranked among the top three at the research institute, he still insisted on personally writing in-depth reports and refused to engage in ineffective research. Yan’s words have stayed with Wang: “If clients don’t gain the equivalent value from reading your reports, it’s better not to send them atall thantowastetheirtime.” UnderYan’s influence, Wangdevelopedaprofound understanding of the vitality and impact of sell-side research approaching sell-side research from the client’s perspective and delivering extreme value to consistently impress and influence others.
Dai Chuantaughthimhow toconduct sell-sideresearchwithdirectionandstructure. As Dai often said, “We aim to be the most directionally sound sell-side team in the machinerysector,withdirectionencompassingforesight,depth,big-picturejudgmentand industry comparison.” Dai built a complete framework for the fragmented machinery sector, a standout feature compared to many other sell-side analysts. Dai’s inherent sense of mission, his near-religious devotion to sell-side research, and his dedication and passion for his work deeply moved and motivated Wang to keep pushing forward.
“One of the greatestjoysof sell-side research is advancing andlearning togetherwith a group of people.” In his view, the biggest strength of GF Machinery team is its framework, legacy and inclusiveness. From the chief analyst to every team member, everyone adheres to a research philosophy and system that are directionally sound and well-structured, while also allowing each person to fullyexpress their individuality and strengths. The team works harmoniously while respecting differences. Additionally, Wang also keeps learning alongside his colleagues, former coworkers, and buy-side fund managers. Their research perspectives and methods continually influence him, allowing his research framework to evolve and improve.
Personally, Wang describes his research style as “meticulous and in-depth, pursuing innovation, avoiding ineffective research, and refraining from writing ineffective reports.” Heholdshimselfto ahighstandard,strivingto makeeachreportaclassicin the industry, aiming for perfection and staying true to his original aspirations.
When discussing his own future, he stated, “In line with the team’s configuration, I am working hard to learn and cover more sectors and content. But one thing will never change Ifirmly believethat it’s not about coveringas much as possible; it’s about depth. Analysts must thoroughly understand the companies and sub-industries that truly have value, and that’s also my hope for the coming year.”