Securities Morning Meeting Highlights | Quantum computing is currently at a crucial turning point from scientific breakthroughs to commercialization.

The market was volatile and strong yesterday, with the Shanghai Composite Index rising nearly 1% on high volume to re-enter the 4000-point mark. The total turnover of the Shanghai and Shenzhen stock markets was 2.06 trillion yuan, an increase of 182.9 billion yuan from the previous trading day. In terms of sectors, the phosphate chemical, semiconductor, and CPO sectors led the gains, while the Hainan, film and television, tourism, and hotel sectors led the declines. By the close of trading yesterday, the Shanghai Composite Index rose by 0.97%, the Shenzhen Component Index rose by 1.73%, and the ChiNext Index rose by 1.84%. At today's securities morning meeting, China Securities Co.,Ltd. pointed out that the increase in aluminum supply is shifting overseas, maintaining a tight balance between supply and demand; Huatai stated that the performance of grid equipment in the third quarter is significantly diverging, with a strong logic for going overseas; CICC believes that quantum computing is at a key turning point from research breakthroughs to commercialization. China Securities Co.,Ltd.: Increase in aluminum supply shifting overseas, maintaining a tight balance between supply and demand China Securities Co.,Ltd. stated that in the next three years, the global supply and demand of electrolytic aluminum will basically be in a balanced state, but this balance is built on the basis of China's electrolytic aluminum production exceeding capacity and the timely release of overseas electrolytic aluminum new capacity. Any slight supply problem will lead to a shortage of supply. When the transmission chain of high prices-high profits-new supply is restricted by supply, the price has a foundation for easy rise and difficult fall. At the same time, the competition for AI investment in Europe and America is facing a shortage of power batteries, posing a threat to the superseding of over 4 million tons of aluminum supply in Europe and America. Once triggered, the price of aluminum may accelerate upward. Huatai: Clear divergence in the performance of grid equipment in the third quarter, strong logic for going overseas Huatai stated that in terms of revenue in the third quarter, non-UHV main grid > UHV main grid > distribution > meter. In terms of the overall growth rate of net profit attributable to mothers in the third quarter of the sector, the non-UHV main grid, UHV main grid, distribution, and meter were 38.2%, 5.2%, -23.6%, and -28.4%, respectively, showing a more significant difference. 1. The performance of the non-UHV main grid sector is good, mainly due to the strong overseas demand in this field, combined with continued strong domestic demand for main grid construction (with a bid amount of 76.55 billion yuan for transmission and transformation equipment in 24 years, a YOY +8.2%; in 25 years, batches 1-5 78.675 billion yuan, YOY +19.5%). 2. In terms of distribution, enterprise overseas revenue and orders also maintained high growth, but companies with a higher proportion of domestic revenue were more severely affected by the price reduction of domestic collective procurement and the weakening growth of new energy and industrial demand outside the network. 3. The income of the UHV sector is relatively stable year-on-year, mainly due to the slow delivery pace of the domestic market. 4. The performance of meter companies is poor, mainly due to the significant price decline in the previous period, gradual delivery of this part of the orders, and pressure on corporate profitability; at the same time, competition in overseas markets is intensifying. CICC: Quantum computing is at a key turning point from research breakthroughs to commercialization CICC believes that quantum computing, as the frontier direction of a new round of technological revolution and industrial transformation, is accelerating from experimental verification to commercial applications. With global tech giants (Google, IBM, Microsoft, etc.) constantly breaking through the scale of quantum bits and error correction accuracy, China has achieved multiple breakthroughs in prototypes such as "Zu Chongzhi" and "Nine Chapters." ICV expects the global quantum computing market to grow from $5 billion in 2024 to over $800 billion in 2035, with a CAGR of over 55%. Among them, the hardware link will benefit first, and core equipment such as measurement and control systems and dilution refrigerators are expected to enter the mass production cycle soon. The report concludes that quantum computing is at a key turning point from research breakthroughs to commercialization, with the hardware link likely to achieve industrial breakthroughs first. This article is reprinted from "Cailianshe", GMTEight editor: Li Fo.