Brokerage mornings | Domestic demand expected to continue steady recovery focus on four major investment themes

The market experienced a volatile adjustment yesterday, with trading volume in the Shanghai and Shenzhen markets reaching 1.67 trillion, an increase of 76.5 billion from the previous trading day. In terms of sectors, nurturing diamonds, coal, wind power equipment and other sectors led the gains, while AI applications, lithium mining and other sectors led the declines. As of the close of yesterday, the Shanghai Composite Index fell by 0.51%, the Shenzhen Component Index fell by 0.78%, and the Growth Enterprise Board Index fell by 1.12%. At today's morning meeting of securities firms, China Securities Co., Ltd. pointed out that high growth in load and continued development of new energy will ensure that demand for energy storage continues to grow; Tianfeng stated that in the short term, the cement industry has strong profit support at the bottom; Huatai released the outlook for 2026: domestic demand is expected to continue steady recovery trend, focusing on four major investment themes. China Securities Co., Ltd.: High growth in load, continued development of new energy will ensure that demand for energy storage continues to grow China Securities Co., Ltd. pointed out that the enthusiasm for energy storage investment is extremely high, with planned investment projects in Eastern and Western Mongolia expected to more than double next year compared to this year, and the capacity compensation policy is sustainable. At the same time, high growth in load and continued development of new energy will ensure that demand for energy storage continues to grow. Currently, batteries are in short supply, and various lithium battery materials have the potential for continued price increases. Positive on cathodes, anodes, electrolytes, separators, copper and aluminum foils, as well as additives such as 6F and VC. Positive on the battery and integrated sectors. AIDC matches storage to provide certainty for high growth in overseas markets. Tianfeng: In the short term, the cement industry has strong profit support at the bottom Tianfeng stated that in the cement industry, most provinces in the northern region have begun staggered production during the heating season, with over 85% of clinker lines in shut-down status. Last week, various provinces successively announced their shutdown plans for December, with the Yangtze River Delta region planning to shut down for 13-15 days. Under environmental pressure, Hunan plans to shut down for a month in December, with overall efforts to stagger production intensifying. In the short term, the cement industry has strong profit support at the bottom. Leading enterprises will begin to replenish production capacity to meet overproduction targets by 2025. As of November, a total of 52.5 million tons of capacity replacement and additional production have been completed, while 83.59 million tons of capacity have been phased out. In 2025, the main policy is to provide overproducing cement enterprises with a window of opportunity to replenish capacity targets. Tianfeng believes that the actual effects of overproduction control are likely to emerge from 2026 onwards. Huatai's outlook for 2026: Domestic demand is expected to continue steady recovery trend, focusing on four major investment themes Huatai stated that in 2025, there will be continued differentiation between new and old consumption, with the transformation of "people, goods, and venues" and technological advancements driving rapid iterative innovation and structural growth opportunities in the consumer industry. Emerging new consumption tracks such as trendy IP, cosmetics and personal care, and instant beverages have seen the emergence of outstanding leaders. Looking ahead to 2026, Huatai believes that continued efforts to promote consumption policies will stimulate the potential of supply and demand, domestic demand is expected to continue a steady recovery trend, industry will continue to experience differentiation in prosperity, leaders will achieve sustained growth through their leading and innovative capabilities, and integration capabilities. Based on industry transformation, Huatai suggests focusing on four major investment themes: 1) Rise of domestic brands: Focus on trendy toys, beauty care, gold and jewelry and other domestic brands, interpreting a new competitive landscape in domestic and international markets; 2) Technology consumption under the empowerment of AI: Emphasize the rapid increase in the penetration rate of intelligent products brought about by technological and product innovation in technology consumption enterprises; 3) Emotional consumption: Changes in supply and demand are still evolving, focus on service consumption, instant beverages, pets, new types of tobacco and other leading growth potentials; 4) Undervalued high-yield blue-chip leaders: Strength in offense and defense, focus on marginal recovery opportunities. This article is reprinted from "Cailianshe." GMTEight editor: Jiang Yuanhua.