Essence of Securities Morning Meeting | Focus on industries expected to reverse under the "anti-internal competition" policy.

The market surged yesterday and then fell back, with the three major indexes rising slightly, and the Shanghai Composite Index returned above 3500 points. The total turnover of the Shanghai and Shenzhen markets was 1.49 trillion, down 11 billion from the previous trading day. In terms of sectors, silicon energy, real estate, rare earth permanent magnets, and diversified finance sectors led the gains, while PCB, consumer electronics, gaming, and military industries sectors led the declines. As of the close of yesterday, the Shanghai Composite Index rose by 0.48%, the Shenzhen Component Index rose by 0.47%, and the ChiNext Index rose by 0.22%. At today's brokerage morning meeting, Guotai Haitong stated that the A-share market may maintain a range-bound volatile pattern, with structural opportunities brought by policy expectations in July; CICC reminded investors to focus on second-half performance and valuation repair opportunities; Huatai pointed out industries that may reverse under the "anti-internal drive" policy. Guotai Haitong: A-share market may maintain a range-bound volatile pattern, focus on structural opportunities brought by policy expectations in July Guotai Haitong stated that with moderate economic recovery and external disturbances still existing, the A-share market may maintain a range-bound volatile pattern, with structural opportunities brought by policy expectations in July. In terms of allocation, it may adopt stable assets with low volatility and dividends as the core, and grasp growth assets such as technology and new consumption for income elasticity. CICC: Investors should focus on second-half performance and valuation repair opportunities CICC believes that the fundamentals of the power grid and industry have remained resilient in the first half of 2025, and investors should focus on second-half performance and valuation repair opportunities. In terms of the power grid, domestic grid investment remained high in January-May, and although the pace of ultra-high voltage approvals is slower than expected, it is expected to catch up rapidly in the third quarter, facing pressure from new energy integration. CICC believes that grid investment will maintain an upward trend for the whole year and the next two to three years. In terms of industry automation, since the first quarter of 2025, the demand in some industries has continued to improve, overall inventory clearance is smooth, but overall capital expenditure momentum is still somewhat weak, and the new cycle is expected to fluctuate slightly. In addition, it highlights the focus on new productive forces (AIDC + humanoid Siasun Robot & Automation), nuclear energy revival, and three major investment directions of going global. Huatai: Focus on industries with potential reversal under the "anti-internal drive" policy Which industries are expected to reverse under the "anti-internal drive" policy? Huatai stated that from a financial report perspective, screening industries with historically low fixed asset turnover, gross profit margin, and low HHI, the pressure of "internal drive" is mainly concentrated in industries such as coal, steel, chemicals, new energy, machinery, and light industry. Among them, from the perspective of cash flow, capital expenditure, etc., the acceleration of capacity clearance, and mid-term business prospects or improvements in varieties include: 1) Coal: Northern port coal inventory, key power plant coal inventory available days have fallen, coal prices may stabilize; 2) Steel: Main steel gross profit margin rebounded, steel key enterprise inventory, molten iron production declined; 3) Some chemicals: Improvement in supply and demand for chemical products, chemical raw materials, agrochemical products, etc.; 4) Photovoltaic: Second-quarter installation rush drove domestic installation growth rate to rise, with midstream exports driven by the European market. This article is reprinted from "Financial Associated Press". GMTEight editor: Jiang Yuanhua.