Brokerage Morning Meeting Highlights | Optimistic about Apple Hardware Innovation Cycle from 2025-2027 and Subsequent AI Developments

Market fluctuated and rose yesterday, with the three major indexes experiencing highs and lows before rebounding. The turnover in the Shanghai and Shenzhen markets was 1.98 trillion yuan, a decrease of 140.4 billion from the previous trading day. In terms of sectors, the oil and gas, film and television, and computing hardware sectors led the gains, while the battery, non-ferrous metals, and wind power sectors led the losses. As of the close of yesterday, the Shanghai Composite Index rose by 0.13%, the Shenzhen Component Index rose by 0.38%, and the ChiNext Index rose by 1.27%. At today's morning meeting of securities firms, CITIC SEC stated that they are optimistic about the 2025-27 Apple hardware innovation cycle and subsequent progress in AI; China Securities Co., Ltd. pointed out that the pharmacy industry is undergoing a personalized development path; Huatai believes that the profitability of bulk chemical products may improve, with downstream products potentially leading the recovery. CITIC SEC: Optimistic about the 2025-27 Apple hardware innovation cycle and subsequent progress in AI CITIC SEC stated that at 1:00 AM Beijing time on September 10, Apple unveiled the iPhone 17 series, AirPods Pro 3, and Apple Watch Series 11 at the fall 2025 product launch event. CITIC SEC believes that the core highlights of this new product lineup include the iPhone Air model, blood pressure monitoring on the watch, and AI real-time translation function on the headphones. Additionally, Apple has maintained a relatively stable pricing strategy for the new iPhone models, starting at 256GB across the board, with prices staying consistent with the previous generation products despite upgrades in specifications. They are optimistic about the 2025-27 Apple hardware innovation cycle and subsequent progress in AI, and recommend focusing on companies with a foundation in Apple-related business performance, while also looking at companies in new areas such as foldable screens, AI servers, and Siasun Robot & Automation. China Securities Co., Ltd.: Personalized development path for the pharmacy industry China Securities Co., Ltd. believes that pharmacy transformation is imperative. In recent years, with changes in the economic environment, industry policies, and consumer habits, leading pharmacies have actively adapted to these changes. Looking at the medium to long term, traditional pharmacy formats may face various development challenges, and personalized transformation is necessary. The Chinese pharmacy industry may differentiate into specialized pharmacies and diversified pharmacies. Specialized pharmacies aim to meet the specialized medication needs of outpatients, while diversified pharmacies cater to the daily health needs of the population. The industry may mildly recover by 2025, focusing on high-quality leading enterprises. The transformation is expected to catalyze valuation gains. Huatai: Improved profitability of bulk chemical products, downstream products may lead the recovery Huatai stated that by the end of August 2025, the CCPI-crude oil price differential was around 480, below the 30% percentile since 2012. Global macroeconomic uncertainties continue to affect oil price fluctuations, with most downstream chemical products entering a weak demand season, keeping price differentials at low levels. The price increases in August mainly affected tight supply and good overseas demand for certain products, and the profitability in the petrochemical industry has reached a bottom. With policies promoting fair competition, supply-side adjustments are expected to accelerate, leading to improved profitability of bulk chemical products. In the medium to long term, with the exit of high-energy-consuming plants in Europe and the United States, economic growth in Asia, Africa, and Latin America will drive demand, making overseas markets an important growth engine for the domestic chemical industry. Capital expenditure in the industry has been decreasing since June 2025, and with accelerated supply-side adjustments, the industry may see a recovery starting in the second half of 2025. Downstream segments with cost reductions and improved demand may lead the recovery. This article is reproduced from "Cailianshe", GMTEight editor: Liu Jiayin.