CITIC Securities: The pain period has passed, and right-side opportunities are emerging. We are optimistic about the performance during the new car catalyst period in August.

According to a research report by Citic Securities, the A-share smart selection targets faced significant pressure on volume, price, and profit in H1 26 due to intensified diversion within the HarmonyOS system and price increases in storage and lithium carbonate, compounded by the capital market being siphoned off by the AI sector. Consequently, stock prices have gone through a prolonged period of pain. Recently, the negative impact of mid-year reports has materialized, and as market capital begins to rebalance between the AI and non-AI sectors, the rebound has exceeded our expectations. We are optimistic about the performance during the new car catalysis period in August.