Broker Morning Meeting Highlights | Focus on low-cost opportunities for physical AI

Yesterday, the market fluctuated and adjusted throughout the day, with the three major indices opening low and moving lower. The Sci-tech Innovation 50 Index plummeted by 7.7%. The trading volume of the Shanghai and Shenzhen stock markets was 3.45 trillion yuan, a decrease of 209.5 billion yuan from the previous trading day. The market was chaotic, with over 3100 stocks falling across the board. In terms of sectors, the robotics and automation concept, non-ferrous metals, and innovative drugs performed well. The semiconductor and computing power industry chains experienced significant drops. By the close of trading, the Shanghai Composite Index fell by 2.03%, the Shenzhen Component Index fell by 3.85%, and the ChiNext Index fell by 5.71%. At today's brokerage morning meeting, China Securities Co., Ltd. suggested focusing on low-cost opportunities in physical AI; Zhongtai emphasized the good performance in Q2 and the acceleration in the second half of the year, as well as catalyzing factors such as recent oversold sea wind targets; Huatai maintained the view that the Fed will keep interest rates unchanged this year. China Securities Co., Ltd.: Focus on low-cost opportunities in physical AI This year, the main focus of Siasun Robot & Automation will revolve around "T-chain mass production rhythm & domestic host factory capitalization." Optimus is nearing mass production, with current suppliers receiving production guidance for the T-chain. The transition of the Fremont automotive production line to Siasun Robot & Automation before mass production of Optimus is a substantive step. Optimus V3 is expected to be released and put into production on schedule in the middle of the year, indicating a turning point for the Siasun Robot & Automation industry that has been fermenting for 4-5 years. It is recommended to focus on high-success-rate Tesla chains, technological upgrades, undervalued stocks with expected differentials, and other domestic chains with the capacity for large-scale production. Zhongtai: Emphasize the good performance in Q2, the acceleration in the second half of the year, and catalyzing factors for recent oversold sea wind targets On the international front, the Spanish Haizea Wind Group has begun manufacturing single-pile foundations for the Norfolk Vanguard West project in the UK; Scottish Power has submitted a 2GW offshore wind project application to the Scottish government for the Machair Wind project; Amazon has signed a 600MW power purchase agreement for the Gennaker offshore wind farm in the Baltic Sea. Domestically, the National Development and Reform Commission and the National Energy Administration jointly issued the "Thirteenth Five-Year Plan" for the construction of a new energy system, stating that by the end of the thirteenth five-year plan, wind and solar power installations will exceed 2.8 billion kilowatts; the approval of the 408MW offshore wind project in Jiangsu, and the pre-bidding of wind turbines for the 253MW project. With the performance window approaching, it is important to focus on the good performance in Q2, the acceleration in the second half of the year, and catalyzing factors for recent oversold sea wind targets and core component targets. Huatai: Maintaining the view that the Fed will keep interest rates unchanged this year The June non-farm payrolls report eased concerns in the market about the overheating of the US job market. Leading indicators indicate that the employment levels in the coming months will be around 0-5,000, maintaining the view that the Fed will keep interest rates unchanged in the second half of the year and may need to raise them next year. The average increase in non-farm payrolls from April to June was 111,000, a relatively high level, in line with the leading indicator (NFIB employment intentions) indicating that in the coming months, employment levels will be around the 0-5,000 balance. In addition, considering the recent sharp drop in oil prices, inflation may have reached its high point for the year in May. The short-term pressure for a Fed rate hike (July-September) may be significantly reduced, maintaining the view that the Fed will keep interest rates unchanged this year. This article is reproduced from "Cai Lianshe", GMTEight editor: Xu Wenqiang.