The essence of the morning meeting of the securities firm | DeepSeek continues to catalyze attention to core industry chain investment opportunities.

Last Friday, the market rose high and then fell back, with the ChiNext Index leading the gains. The total turnover of the Shanghai and Shenzhen stock markets that day was 1.96 trillion yuan, an increase of 424.9 billion yuan from the previous trading day. In terms of market performance, hot spots in the market rotated rapidly, with more stocks rising than falling. Over 4,100 stocks in the entire market rose, with over 100 stocks hitting their daily limit or rising by more than 10%. In terms of sectors, the medical information technology, DeepSeek concept, photovoltaic equipment, and computing power leasing sectors performed well, while few sectors like banking declined. By the close of last Friday, the Shanghai Composite Index rose by 1.01%, the Shenzhen Component Index rose by 1.75%, and the ChiNext Index rose by 2.53%. In today's brokerage morning meeting, China Securities Co.,Ltd. emphasized that DeepSeek continues to catalyze, focusing on investment opportunities in the core industrial chain. Tianfeng stated that after the New Year rally, they are focusing on three major investment directions. Guotai Junan believes that the photovoltaic sector is currently at an expected bottom position. China Securities Co.,Ltd.: DeepSeek continues to catalyze, focusing on investment opportunities in the core industrial chain China Securities Co.,Ltd. mentioned that the domestic and international AI application traffic and monthly active users continue to grow. DeepSeek web traffic has increased by 22 times, with 100 million new users added in 7 days. DeepSeek is becoming popular, accelerating the domestic AI industry chain. The entire AI industry is embracing models like V3/R1 in terms of computing power, application layers, and edge AI. DeepSeek continues to catalyze, especially with R1 as an open-source model whose performance is comparable to top proprietary models like o1, which reflects AI equality to a certain extent. The improvement in reinforcement learning's reasoning ability brings the possibility of generalizing the RL paradigm, with continuous iterations of base models expected to sustain high activity and attention in the entire AI industry chain. Attention should be paid to core investment opportunities in computing power, applications, edge, and data. Tianfeng: Focus on three major investment directions after the New Year rally Tianfeng mentioned that Phase 3 of the match point 2.0 is ongoing, with a rebound in social financing. After the New Year holiday, they will observe further improvements in the fundamentals based on economic recovery and market liquidity. According to the economic recovery and market liquidity, the investment focus can be narrowed down to three directions: (1) tech AI+ breakthrough led by Deepseek and open source, (2) valuation recovery of consumer stocks and gradual recovery of consumer segmentation, and (3) continuing rise of undervalued dividends. The retreat of dividends often occurs when there is a trend of strong industries, so the height of undervalued dividends depends on the progress of the AI industry trend, which in turn depends on breakthroughs in AI application and consumption. The core factor in consumer sector investment is valuation. In the current consumer sector, with low valuations, declining interest rates, and policy stimulus leading to a recovery cycle (albeit weak), being overly pessimistic about consumption due to macro narratives can be a risk, with a focus on Hong Kong internet. Guotai Junan: The photovoltaic sector is currently at an expected bottom position Guotai Junan mentioned that the photovoltaic sector is currently at an expected bottom position, with the industry fundamentals stabilizing at the bottom and positive changes in the supply side occurring. The expected continuous improvement in industry prosperity and supply-demand improvement may present sector opportunities, maintaining an industry rating of overweight. They recommend focusing on: 1) the battery, silicon wafer, and photovoltaic glass segments with continuously decreasing inventory and the potential for profit improvement, as well as leading companies with superior layouts in each segment, and 2) continuous breakthroughs in new technologies, such as higher efficiency in BC battery components and the gradual application of technologies like copper slurry and screen printing. This article is republished from "Cailianshe". Editorial by GMTEight: Xu Wenqiang.