September comparison of the five-dimensional industry by EB Securities: Expected market style mainly tends towards growth and balance.

EB SECURITIES released a research report stating that, considering subjective factors in September, in the comparative framework of the five-dimensional industry, the market style is expected to lean towards growth and balance, with sectors with high valuations being worth more attention. Based on the scoring, industries such as power equipment, communication, computer, electronics, automotive, media, etc., received high scores and are worth investors' focus in the future. EB SECURITIES main points are as follows: Introduction to the five-dimensional industry comparative framework Stock price performance is influenced by multiple factors, and a single indicator is difficult to effectively guide industry comparison. To do a good industry comparison, it is necessary to analyze and make comprehensive judgments on various factors that may affect stock prices, assigning higher weight to future possible market dominant factors. Based on this, the bank has constructed a "five-dimensional industry comparative framework" that integrates market style, fundamentals, capital, trading, and valuation. Historical backtesting shows that the five-dimensional industry comparative framework has performed well, with industries that score higher showing better performance Through the retrospective analysis of the historical performance of the five-dimensional industry comparative framework from 2016 to February 2025, it can be observed that industries with higher scores in this framework tend to have better stock performance. Industries are divided into groups 1 through 5 based on score levels, with annualized returns of 11.8%, 1.3%, -1.4%, -7.5%, and -10.5%, respectively. By going long on group 1 industries and shorting group 5 industries to construct long-short portfolios, the annualized return of the long-short portfolio is 23.7%, with an annual Sharpe ratio of 1.69. Subjective factors judgment in September In the five-dimensional industry comparative framework, three dimensions involve some subjective judgments, namely market style, trading, and valuation. In terms of market style, it is expected that economic realities may experience fluctuations and market sentiment may remain high, corresponding to rotation between growth and balance at the style level. In terms of capital, it is expected that future dominant funds will be financing funds, with public funds possibly experiencing net inflows. In terms of valuation, it is anticipated that market sentiment may remain high, indicating that industries with high valuations will perform better. Industry allocation viewpoint for September: Focus on the growth theme Considering subjective factors in September, from the perspective of the five-dimensional industry comparative framework, it is expected that the market style will mainly lean towards growth and balance, with sectors with high valuations being relatively more worth focus. Based on the scoring, industries such as power equipment, communication, computer, electronics, automotive, media, etc., received high scores and are worth investors' focus in the future. Risk warning: Historical patterns may become ineffective; significant decrease in market sentiment; overseas risk events causing disruptions exceeding expectations.