A-shares market opening express: Red market fluctuations! The solid-state battery concept remains active, and the civil explosion sector is rising.

On March 3, the three major A-share indexes collectively opened higher, followed by a fluctuation in the red market. As of 9:39, the Shanghai Composite Index rose by 0.34%, the Shenzhen Component Index rose by 0.42%, and the ChiNext Index rose by 0.36%. In terms of market performance, the solid-state battery concept remained active, with Power HF Co., Ltd. hitting the limit up for the 7th consecutive day; the pyrotechnic sector surged, with Poly Union Chemical Holding Group, Shenzhen King Explorer Science And Technology Corporation, and others hitting the limit up; the automotive sector rose, with Zotye Automobile hitting the limit up. On the downside, stocks related to the Siasun Robot & Automation concept continued to adjust, with Ningbo Zhongda Leader Intelligent Transmission hitting the limit down, while sectors such as retail, semiconductors, and consumer electronics had leading declines. In terms of individual stocks, Orient Group Incorporation's stock price hit the limit down in early trading, with turnover exceeding 1.4 billion yuan. In terms of news, on June 20, 2024, the China Securities Regulatory Commission initiated an investigation into Orient Group Incorporation Co., Ltd. It has been preliminarily found that the financial information disclosed by Orient Group Incorporation for the years 2020 to 2023 is seriously untrue, suspected of major financial fraud, and may involve circumstances requiring compulsory delisting. The case is currently under investigation, and the CSRC will investigate the illegal facts as soon as possible and deal with them seriously according to law. In terms of fund flows, main funds flowed into the energy metals, engineering machinery, precious metals, liquor, and motor industries; funds flowed out of the communications equipment, semiconductor, securities, software development, and chemical raw materials industries. Institutional Views Looking ahead, Guotai Junan believes that the recent market volatility cannot be simply understood as a decrease in "value for money." It is expected that the tech index will not hit a new low, and a new high is expected for the whole year. 1. Guotai Junan: The tech index will not hit a new low. Guotai Junan believes that the recent market volatility cannot be simply understood as a decrease in "value for money." With the market previously rising due to optimistic expectations and overheated trading, as uncertainties increase in the next stage (such as US-China frictions, earnings growth, etc.), policies will be difficult to adjust rapidly in the short term, and investor risk appetite will decrease. We believe that stock index volatility will continue. In 2025, China's stock market subjective investment will return, but it is necessary to differentiate the main battlefield. It is expected that the tech index will not hit a new low and will see a new high for the whole year. However, although the main battlefield this year will be in tech growth, in the short term, it is recommended to "sell high and buy low," as risk preferences will shift downwards in the next stage. 2. Galaxy Securities: A-shares market welcomes structural revaluation opportunities. Galaxy Securities believes that the convening of the National People's Congress and the Chinese People's Political Consultative Conference is expected to provide further guidance on the investment structure of the A-shares market. Against the background of the new and old driving forces of the economy switching, especially with the accelerated development of new productive forces combined with a series of policy boosts, the A-shares market welcomes opportunities for structural revaluation of valuations. Currently, the price-earnings ratio of the full A index is at a historical median level, but compared to overseas markets, it is still relatively low. With the accelerated entry of medium- to long-term funds into the market, investor confidence will further strengthen. It is necessary to pay attention to disruptions caused by Trump's policies towards China and the pace of fundamental economic repair in the domestic economy. 3. GF SEC: The main theme of tech investment is not expected to change significantly. GF SEC believes that the progress of industries such as DeepSeek and domestic Siasun Robot & Automation is bringing corresponding sector stocks closer to investment themes over the past two years, and it may increasingly focus on investment in prosperity, or more segmented sectors, similar to the previous optical module sector. Accordingly, each time a high degree of congestion forms a pullback, it may be an opportunity for reconfiguration. The main theme of tech investment is not expected to change significantly. Focus on AI applications benefiting from reduced inference costs, all-in-one machines, and localized deployments; sub-industries within Siasun Robot & Automation such as tendon ropes and electronic skin; low-growth sectors focusing on military electronics; thematic investments focusing on cultural exports and low-altitude economy. Popular Sectors 1. Active in the solid-state battery concept The solid-state battery concept remained active, with Power HF Co., Ltd. hitting the limit up for the 7th consecutive day, Shanghai Smith Adhesive New Material hitting the limit up, and stocks such as Sanxiang Advanced Materials, Ganzhou Teng Yuan Cobalt New Material, Guangdong Orient Zirconic ind sci & tech, and Guangdong Lyric Robot Automation surging. Analysis: According to a CITIC SEC research report, considering the important catalysis of the solid-state battery industry in 2025, it is a crucial year for the mature product launch and gradual volume production of semi-solid-state batteries, as well as the gradual clarification and convergence of the all-solid-state technology route. It is recommended to seize investment opportunities in related industrial chains, including batteries, materials, equipment, and resources. 2. Surge in the pyrotechnic sector The pyrotechnic sector saw a fluctuation and rise, with Poly Union Chemical Holding Group, Shenzhen King Explorer Science And Technology Corporation hitting the limit up, and stocks such as Tibet GaoZheng Explosive, Xinjiang Xuefeng Sci-Tech, Sichuan Yahua Industrial Group, and Shanxi Tond Chemic rising. Analysis: According to a CITIC SEC research report, considering the important catalysis of the solid-state battery industry in 2025, it is a crucial year for the mature product launch and gradual volume production of semi-solid-state batteries, as well as the gradual clarification and convergence of the all-solid-state technology route. It is recommended to seize investment opportunities in related industrial chains, including batteries, materials, equipment, and resources.Al has one of the highest increase rates.On February 28, the Ministry of Industry and Information Technology issued the "Implementation Opinions on Accelerating the Transformation and Upgrading of the Civil Explosives Industry" to promote enterprise reorganization and integration. The document encourages civil explosives enterprises to carry out cross-regional and cross-ownership reorganization and integration, conduct industry chain integration, and build independent and controllable industry and supply chains. This article is reprinted from "Tencent Select Stocks" and edited by GMTEight: Li Fo.