Brokerage morning meeting highlights | The theme and rotation pattern of small stocks will continue.

Last Friday, the market fluctuated and rose, with the Shanghai Composite Index opening higher and breaking through 4100 points, and the Shenzhen Component Index rising by over 1%. The total turnover of the Shanghai and Shenzhen stock markets was 3.12 trillion yuan, an increase of 322.4 billion yuan from the previous trading day, reaching the 3 trillion mark again after 73 trading days, the fifth time in history. On the market, hot spots quickly rotated, with over 3900 stocks rising, and over a hundred stocks hitting the daily limit for two consecutive days. In terms of sectors, the AI application concept collectively broke out, with over twenty component stocks hitting the daily limit, and Inly Media Co., Ltd. hitting the daily limit for 5 days out of 4. The commercial aerospace concept was active, the controllable nuclear fusion concept continued to be strong, while the brain-computer interface concept fell. At the close, the Shanghai Composite Index rose by 0.92%, the Shenzhen Component Index rose by 1.15%, and the ChiNext Index rose by 0.77%. At the morning meeting of securities firms today, CITIC SEC believes that the rotation pattern of themes and small stocks will continue; China Securities Co., Ltd. believes that the commercialization process of AI companies is expected to accelerate further; Huatai believes that there may still be room for the spring market and recommends combining fundamental expectations to find high-performance cost-effective direction. CITIC SEC: The rotation pattern of themes and small stocks will continue The current market is still in an environment where there is ample configured and quantitative funds, active stock trading funds, and a lack of stocks pricing funds. To break out of the fundamental-driven one-way trend in the market, it is still waiting for expectations of domestic demand changes to happen. In terms of fund rhythm, it is only two weeks after the Spring Festival to the two sessions, and for funds that are out of the current market's main themes, "delaying entry and waiting for clearer fundamental clues" is a more rational choice - whether it is specific policies to stimulate domestic demand, urban and rural income increase plans, or industry trends, they can wait until the signals are clear during the two sessions to make a decision. The current market's consistent expectation is that "policies may not change significantly," which is a valid judgement from a static perspective. However, looking at it dynamically, this year's external trade environment is far more complex than last year. Any adverse changes could further increase the difficulty of achieving a 5% GDP growth solely through external demand, highlighting the importance of domestic demand. China Securities Co., Ltd.: The commercialization process of AI companies is expected to accelerate further The current AI industry is dynamic, with overseas xAI and Anthropic continuously financing, the domestic "artificial intelligence + manufacturing policy" launched, KNOWLEDGE ATLAS and MiniMax listed with a large increase, and the subsequent launch of DeepSeek-V4 is expected to trigger a new wave of AI application boom. As the model's capabilities continue to increase, especially the significant reduction in inference and long-window costs, downstream AI application scenarios are accelerating into the commercialization verification stage, with a focus on search & marketing, coding, multimodal, agent, AI for science fields where related companies' commercialization processes are expected to accelerate further. Huatai: There may still be room for the spring market. It is recommended to combine fundamental expectations to find a high-performance cost-effective direction Last week, A-shares continued to rise on volume and broke through the previous high, driven by the increasing risk preference. Under the strong momentum effect, there may still be room for the spring market, but looking at industry upside-down standard deviation, turnover share, leverage funds, and ETF trends, the trading structure is more concentrated, and some hot sectors may need to digest overcrowded pressure. The probability of the market turning to rotation is gradually increasing. The window for performance forecasts is approaching, and it is recommended to combine fundamental expectations to find high-performance cost-effective directions, focusing on industries with improved external demand chains and themes that are relatively low in saturation and have potential catalysts, specifically focusing on games, duty-free, batteries, engineering machinery, and agrochemicals. The medium-term configuration strategy remains unchanged, and it is recommended to accumulate resources in the upstream of the power chain on dips. This article is reprinted from "Cailianshe", GMTEight editor: Li Fo.