CMSC: Listed companies are expected to continue to grow in the fourth quarter, recommending sectors such as non-ferrous metals, batteries, and semiconductors.

CMSC released a research report stating that this week, the improvement in economic conditions mainly focused on the resource, middle-end manufacturing, and information technology sectors. In the upstream resource sector, prices of metals, steel, and coal mostly rose; in the middle-end manufacturing sector, prices in the new energy industry chain mostly increased, with the 3-month rolling comparison of metal forming machine tool output in November showing an expanding growth rate. In information technology, memory prices continued to rise, with the 3-month rolling comparison of telecommunications main business revenue in November showing an expanding growth rate. In the consumer services sector, profits in hog farming increased. Listed companies are expected to continue to see positive growth in Q4 profits, but the growth rate may narrow. It is recommended to pay attention to sectors in the annual report with the potential for high growth or improvement, such as non-ferrous metals, batteries, military electronics, aerospace equipment, power grid equipment, engineering machinery, semiconductors, and media. CMSC's main points are as follows: The production side continued to slow down in the fourth quarter, with consumption and investment declining, weak domestic demand, stable exports, and prices stabilizing. Looking at industrial enterprise profits, listed companies are expected to continue to see positive growth in Q4 profits, but the growth rate may narrow. Judging from the performance of the mid-term economic conditions in the fourth quarter, areas expected to see improved or sustained high growth in annual performance mainly include: 1) Price-increasing commodities: non-ferrous metals (cobalt, tungsten, tin, copper, precious metals), some chemical products (caprolactam, bromine, TDI, etc.), papermaking, lithium electrolyte, memory, polysilicon, cotton, and vegetables; 2) New energy and high-end manufacturing: military electronics, aerospace equipment, automation equipment, wind power equipment, batteries, power grid equipment; 3) Export sectors: engineering machinery, integrated circuits, printed circuits, automobiles, rare earths, medical equipment; 4) TMT sectors with strong demand or improvement: communication equipment, semiconductors, media; as well as the non-banking sector, it is recommended to pay attention to non-ferrous metals, batteries, military electronics, aerospace equipment, power grid equipment, engineering machinery, semiconductors, and media. Information TechnologyThe Philadelphia Semiconductor Index, Taiwan Semiconductor Industry Index, and DXI Index rose this week; DDR5 and DDR4 DRAM memory prices increased month-on-month, while the NAND Index also rose month-on-month; the 3-month rolling comparison of telecommunications main business revenue in November expanded, and the 3-month rolling comparison of semiconductor manufacturing equipment shipments in Japan in November narrowed, while the 3-month rolling comparison of fiber optic cable production in November showed a smaller decline. Middle-end ManufacturingThis week, prices of upstream products in new energy vehicles mostly rose; the photovoltaic price index increased week-on-week; the 3-month rolling comparison of packaging equipment output in November showed an expanding decline, while the 3-month rolling comparison of metal forming machine tool output expanded; weekly port cargo throughput and container throughput growth rates shrank; CCFI rose, while CCBFI, BDI, and BDTI declined. Consumer DemandFresh milk prices rose, while comprehensive sugar prices fell; pork prices went up, piglet wholesale prices fell, and average pig prices declined. In terms of hog farming profits, profits from self-bred pigs and purchased piglets both rose; in chicken farming, chick prices fell. The vegetable price index declined, corn and cotton futures settlement prices rose, and box office revenues and movie ticket prices rose. Sales of air purifiers showed a larger decline, while the price index of Chinese medicinal materials declined. Resource IndustryThe average daily trading volume of construction steel rose; prices of steel billet and rebar rose. Regarding coal prices, prices of mixed power coal at Qinhuangdao fell, while prices of refined coke at Jingtang Port in Shanxi rose; settlement prices of coke and metallurgical coal futures rose. In terms of inventory, coal inventories at Qinhuangdao Port rose, while inventories of coking coal at Jingtang Port and coke at Tianjin Port fell. The national cement price index rose. Brent international crude oil prices rose; China's chemical products price index rose week-on-week, with most chemical product prices falling, and PVC and PTA prices leading the gains, while polyethylene and polyamide prices led the declines. This week, industrial metal prices mostly rose, with copper, nickel, aluminum, tin, cobalt, and lead prices rising, zinc prices falling, and most inventories rising, with zinc and tin inventories rising, while copper, lead, and nickel inventories fell, and aluminum inventories remained stable. Gold and silver prices rose in the spot and futures markets. Finance and Real EstateNet withdrawals in the money market. A-share turnover rate and daily trading volume declined. Land transaction premium rates fell, while sales area of commercial housing increased. The number of second-hand houses listed for sale nationwide decreased, and the listing price index fell. UtilitiesDomestic natural gas prices fell, while UK natural gas futures prices rose. The daily average electricity generation of key power plants nationwide fell by a larger margin year-on-year over 12 weeks. Risk Warning: Industry support falls short of expectations, macroeconomic fluctuations.