CITIC Securities: External risks are controllable, focusing on three main sectors including AI computing power, coal, and coal chemical industry.

CITIC Securities believes that the negotiations between the US and Iran are currently in a deadlock, causing oil prices to fluctuate and rise back above $105. Although this will continue to be a disruptive factor in the market, the risk of the situation spinning out of control and deteriorating dramatically is relatively limited. The A-share market has also become desensitized to geopolitical fears. The performance of the AI computing power sector has seen some disruptions, but overall it still belongs to the scarce high prosperity direction. The market performance after the release of financial reports also reflects the transition of the AI computing power industry from "thematic concept" to "performance realization" stage. In a scarce prosperity environment, market funds are choosing to concentrate on high-prosperity tracks. Overall, the current market is at a critical window of prosperity verification, with a focus on three logical main lines: the AI computing power sector, energy security sectors such as coal and coal chemical industry, and midstream manufacturing especially the new energy sector. Industries that are particularly noteworthy include: AI computing power, oil and gas production, coal, coal chemical industry, power equipment, and machinery equipment.