Highlights of the morning meeting of securities firms | Supply, consumption, and environmental protection triple catalysis are expected to push up the central price of lithium.

Last Friday, the market fluctuated and continued to rebound throughout the day, with the Shenzhen Component Index leading the gains. Overall, more stocks rose than fell, with over 3,500 stocks in the entire market rising. The turnover of the Shanghai and Shenzhen markets was 1.053 trillion, an increase of 27 billion from the previous trading day, with turnover exceeding 1 trillion for the third consecutive day. As of the close of trading last Friday, the Shanghai Composite Index rose by 0.39%, the Shenzhen Component Index rose by 1.12%, and the ChiNext Index rose by 0.94%. Foreign inflows sold a net of 5.333 billion throughout the day, with the Shanghai-Hong Kong Stock Connect selling a net of 1.71 billion and the Shenzhen-Hong Kong Stock Connect selling a net of 3.623 billion. At today's securities morning meeting, Zhongtai believes that the next modality with a high probability of breakthrough in AI is 3D; China Securities Co., Ltd. stated that with the triple catalysis of supply, consumption, and environmental protection, the central point of lithium prices is expected to rise; Tianfeng suggested focusing on multiple themes such as international expansion and GLP-1. Zhongtai: Wensheng 3D The Next Stop for Artificial Intelligence Zhongtai stated that the new generation of artificial intelligence technology and industrial revolution represented by large models and generative methods are flourishing. From Wenshengwen represented by Chat GPT, to Wenshengtu represented by DALLE, to Wensheng video represented by Sora, the "violent aesthetic" continues to break through the technological ceiling. Multimodality has become the consensus trend, with the next modality with a high probability of breakthrough likely being 3D, according to Zhongtai. Currently, overseas exploration of AI+3D technology is mainly divided into industrial and non-industrial scenarios. Non-industrial scenario applications are mainly represented by Google's DreamFusion and Nvidia's Magic3D, focusing on 3D asset design in games and metaverses. Industrial scenario applications mainly focus on derivative design software, such as PTC's Creo and Autodesk's Fusion 360, both of which provide derivative design capabilities. Investment recommendation: From an industry perspective, it is recommended to continue tracking and paying attention to the progress in the field of Wensheng 3D modeling. China Securities Co., Ltd.: Supply, consumption, and environmental protection catalyze lithium prices to move higher China Securities Co., Ltd. stated that with the overseas supply reduction, downstream consumer production increase, and environmental disturbance in Jiangxi, the fundamentals and news are both positive for the rise in lithium prices. Following the announcements of production cuts/reductions in production targets by Australian mines such as Core and Greenbushes, Australian mining company Cattlin announced a reduction in the production target for the 2024 fiscal year. More and more companies are suspending expansion plans, and the surplus in the supply-demand balance sheet has significantly narrowed compared to previous predictions. On the consumption side, according to GGII statistics, the production of power battery companies in March has increased significantly, with production guidance of some leading companies increasing by 70% to 80% compared to the previous month, significantly revising previous pessimistic expectations, and the second quarter consumption peak season can be expected. In the short term, the fundamentals provide support for lithium prices. In addition, the central environmental inspection team entered Jiangxi, where local companies are required to reduce production, affecting the operating level. It is expected that production in March will be affected. The volume of lithium mica slag is large, posing environmental hazards, and has the potential to affect future supply, stimulating a significant increase in lithium prices. It is expected that under factors such as tightening supply, improved consumption, and environmental disturbances, the central point of lithium prices is still expected to move higher. Tianfeng: Suggested to focus on multiple themes such as international expansion and GLP-1 Tianfeng stated that by early February 2023, the medical industry market has been fluctuating, triggering a large number of lower revisions of terms. Three out of four companies have decided not to lower the conversion price, reflecting the companies' confidence in the long-term stable development and intrinsic value enhancement of the pharmaceutical industry. After the festival, the overall market has recovered, with the overall conversion premium rate of the industry continuing to decline, and the follow-up elasticity has been restored; compared with the overall industry, the pharmaceutical industry's premium rate recovery situation is good, with an average conversion premium rate low, having a certain advantage in cost-performance, and is optimistic about the subsequent valuation repair. (This article is reproduced from "Financial Union", GMTEight Editor: Huang Xiaodong).