Everbright Securities: The market may continue to rebound in the short term, focusing on three performance main lines.

Everbright Securities' research report suggests that the market may continue to rebound in the short term, with a focus on three performance main lines. Recently, overseas stock markets, particularly the semiconductor sector, have gradually stabilized and rebounded, which positively impacts the stabilization of A-share technology sector. The intensive disclosure period of semi-annual reports in August is expected to become a turning point for the market, shifting from valuation digestion to profit-driven momentum. The earnings season may serve as the best allocation window for the second half of the year. It is advisable to focus on three performance main lines for allocation. The first is technology hardware, which is the strongest direction for performance improvement this round; second is the pricing chain, which directly benefits from the rebound in PPI with a high certainty of performance realization; the third main line is export manufacturing, benefiting from global manufacturing inventory replenishment and supply chain advantages. In addition, sectors such as non-bank financials, pharmaceuticals/CRO, and military industries also deserve attention for their semi-annual report sentiment, overall presenting a pattern of multiple performance main lines running in parallel.