Highlights of the Securities Morning Meeting | Continue to track the chain of price increases Three major directions worth paying attention to.

Yesterday, the market hit bottom and rebounded, with the three major indexes narrowing their losses in the afternoon. The trading volume of the Shanghai and Shenzhen stock markets reached 2.44 trillion. In terms of sectors, the concepts of green electricity, chemicals, coal, and carbon fiber performed strongly. On the downside, sectors such as gas turbines and military industries weakened. At the close, the Shanghai Composite Index fell by 0.1%, the Shenzhen Component Index fell by 0.63%, and the Growth Enterprise Index fell by 0.96%. At today's morning meeting of securities firms, Huaxi believes that it is worth continuing to track the price chain, with three major directions worth paying attention to; CICC believes that the long-term intensification of the Middle East conflict may lead to financial market turbulence worldwide; China Securities Co., Ltd. believes that the upgrade of AI computing power drives the upgrade of heat dissipation architecture, and liquid-cooled primary side equipment is undergoing a value reassessment. Huaxi: Continue tracking the price chain, three major directions worth paying attention to In 2026, the structural theme may gradually shift from technology to the price chain. The following directions are worth paying attention to: first, the input inflation side, with energy chains (oil and gas, coal chemicals, upstream raw materials in chemicals, shipping) seeing price increases due to geopolitical factors. Certain certainty, small metals and aluminum in non-ferrous metals have relatively high certainty, gold and copper are showing a mix of long and short, Shenzhen Agricultural Power Group focuses on feed raw materials, fertilizers, pesticides; second, the endogenous inflation side, focusing on the repair of traditional industries driven by "anti-turn-over", including chemicals, steel, coal, building materials, and pigs; third, the technology-driven price side, focusing on the upstream AI computing power industry chain, including computing power infrastructure (servers, computing chips), storage chips, optical communications, and upstream materials in PCB (fiber optic, glass fiber) and electric power. CICC: Long-term intensification of the Middle East conflict may lead to global financial market turbulence The Middle East conflict is a typical supply shock, with its direct impact being disrupted oil supply and rising oil prices. For the United States, which already faces insufficient supply, slow inflation decline, and soaring government debt, the Middle East conflict exacerbates its "stagflation" risk, leaving macro policies in a dilemma. If the conflict does not last long, its impact may be relatively mild. However, if the conflict escalates, the pressure on US fundamentals increases, financial turmoil may intensify, spillover effects increase, and the impact on the global economy and markets may be significantly greater. China Securities Co., Ltd.: AI computing power drives the upgrade of heat dissipation architecture, and liquid-cooled primary side equipment undergoes a value reassessment The high density of AI computing power is driving data center heat dissipation from air cooling to liquid cooling. The requirements for low temperature, stability, and controllability of the liquid cooling architecture have been greatly increased, turning the primary side system from auxiliary support to core infrastructure. Cold water chillers and compressors are especially critical in the primary side cooling equipment. With the upgrading of data center cooling systems towards medium-high efficiency, large cooling capacity, and magnetic levitation centrifugal direction, the single-machine value, technological barriers, and industry concentration of cold water chillers and compressors are synchronously rising. Magnetic levitation centrifugal compressor manufacturers with independent technology, as well as leading enterprises in cold water chillers with large cooling capacities and access to mainstream supply chains, will continue to benefit. This article is reprinted from "Cai Lianshe", GMTEight edited by: Liu Jiayin.