Huachuang Securities: This round of DeepSeek market may still have upward potential.

Huachuang Securities issued a research report stating that the current DeepSeek market background is similar to the ChatGPT market from 23/1 to 23/4, both being structurally driven markets triggered by sufficient rebound and technological catalysis. This round of trading is more active, and the increase and trading heat may reach peak levels faster. The average daily trading volume of the ChatGPT market was around 980 billion yuan, while it is 1.4 trillion yuan in this round. In comparison of increase, valuation, trading heat, and concept capacity, it is believed that there may still be upward space in this round of DeepSeek market. The main viewpoints of Huachuang Securities are as follows: 1. The market background of the current DeepSeek market is similar to the ChatGPT market from 23/1 to 23/4, both being structurally driven markets triggered by sufficient rebound and technological catalysis. 2. This round of trading is more active, and the increase and trading heat may reach peak levels faster. The average daily trading volume of the ChatGPT market was around 980 billion yuan, while it is 1.4 trillion yuan in this round. 3. In comparison of increase, valuation, trading heat, and concept capacity, it is believed that there may still be upward space in this round of DeepSeek market. 1. There may still be upward space in terms of increase: The DeepSeek market is rising faster, but there is still space for increase compared to the ChatGPT market. The ChatGPT index rose by 74% from 23/1 to 23/4, while the DeepSeek index has risen by 58% since 1/20 (as of 2/10). 2. Valuation is in the middle, and there may still be upward space: Since the start of the DeepSeek market, the TMT index PE-ttm has increased from 48 times to 53 times, with an increase of 10%, and the percentile rank from 39% to 54% since 2010; compared to the ChatGPT market, the TMT index PE-ttm has increased from 37 times to 49 times, with an increase of 32%, and the percentile rank from 15% to 38%. 3. There is still space for trading heat to reach peak levels: The trading heat is measured by the ratio of trading volume to total A shares and the ratio of free float market value to total A shares. Currently, the trading heat of the TMT index is 1.9, at the 92nd percentile since 2010, and there is still space to reach the peak of 2.3 in the ChatGPT market.