Securities Morning Meeting Highlights | Technological Breakthroughs and Capital Empowerment to Accelerate the Industrialization of Nuclear Fusion. Focus on Midstream and Upstream Investment Opportunities.

The market fluctuated and rose yesterday, with the Shanghai Composite Index opening higher and closing with six consecutive gains. The total turnover of the Shanghai and Shenzhen markets was 1.88 trillion yuan, a decrease of 19.6 billion yuan from the previous trading day. In terms of sectors, the commercial aerospace concept continued to soar, while the computing power hardware concept and the Fujian sector strengthened. In terms of decline, the precious metals, insurance, and dairy sectors led the losses. At the close of yesterday, the Shanghai Composite Index rose by 0.53%, the Shenzhen Component Index rose by 0.88%, and the ChiNext Index rose by 0.77%. At today's brokerage morning meeting, Huatai believes that product strength may become one of the core competitive advantages for real estate companies to cross the cycle in 2026, reshaping their market position and competitive landscape. Zhongtai pointed out that the investment strategy for the home appliance industry in 2026 can be seen from four main aspects. China Securities Co., Ltd. stated that technological breakthroughs and capital empowerment are accelerating the industrialization of nuclear fusion, focusing on investment opportunities in the midstream and upstream sectors. Huatai: Product strength may become one of the core competitive advantages for real estate companies to cross the cycle in 2026, reshaping their market position and competitive landscape Huatai stated that on December 22-23, the Ministry of Housing held a work conference to summarize the real estate work in 2025 and deploy key tasks and prospects for 2026 in line with the "15th Five-Year Plan" policy direction. Huatai believes that policies in 2026 such as controlling incremental supply, destocking, and optimizing supply will be further implemented, combined with potential reserve requirement ratio cuts and interest rate cuts to help the market stabilize, continuously optimize supply-side factors, and product strength may become one of the core competitive advantages for real estate companies to cross the cycle, reshaping their market position and competitive landscape. The Ministry of Housing meeting followed a firm attitude towards stabilizing the industry and provided a series of directions. The "optimized supply" orientation is expected to drive the reshaping of the competitive landscape of enterprises and bring development opportunities for property management companies. Key recommendations: 1. Real estate stocks with "good credit, good cities, and good products" characteristics; 2. Real estate companies that rely on operational capabilities to control cash flow lifelines during market adjustments; 3. Hong Kong local real estate companies benefiting from the recovery of the Hong Kong market; 4. Property management companies benefiting from stable cash flow and dividend advantages. Zhongtai: Investment strategy for the home appliance industry in 2026 focuses on four main points Zhongtai stated that the home appliance sector is still in a "slow bull phase" and there are four main investment logics for 2026: 1. Dividend sectors: In terms of funds, previously biased towards trend investment in home appliances, this year insurance funds continue to flow in. With the full implementation of new regulations for insurance funds and the reduction of the risk coefficient for equity, they are more willing to invest in targets such as Midea with growth value and dividends. 2. Overseas sectors. 3. Two-wheeler sector: the current biggest characteristic is low expectations and low valuations, seeing if bottoming and rebounding is possible. The market believes that the new national standard and subsidy reduction will significantly affect industry growth next year. However, there is a slight difference between new national standard products and consumer demands, and the impact of the new national standard may be weaker than expected by the market. Increment is as follows: the industry is "ruled by scale", the introduction of two national standards reduces players, and market share is expected to continue to increase; 2. Three-wheeler single unit profit is high; 3. The logic of going overseas. 4. Sweeping robot sector. Investment advice: pay close attention to the logic of dividends + brand going overseas in the large home appliance sector; targets that have the opportunity to bottom out and rebound. China Securities Co., Ltd.: Technological breakthroughs and capital empowerment accelerate the industrialization of nuclear fusion, focusing on investment opportunities in the midstream and upstream sectors China Securities Co., Ltd. stated that controlled nuclear fusion, due to advantages such as abundant fuel, clean and environmental protection, high energy density, and relative safety, is considered the ultimate solution for energy revolution and has become a new focus of strategic competition in energy fields for major countries such as China, the US, and Europe. With breakthroughs in high-temperature superconductivity and AI technology empowerment, policy dividends and continuous capital investment, construction of large-scale scientific devices has become a focal point for countries, and commercial fusion projects are also favored by the capital market. The current focus of the controlled nuclear fusion industry is on technological engineering and breakthroughs in commercial feasibility, with the construction of large scientific devices and experimental reactors generating large orders, and high-value investment opportunities concentrating on the midstream and upstream sectors. This article is reprinted from "Cai Lian She". Editor: Liu Jiayin.