Huatai Securities: Focus on highlights of the second quarter report and industries benefiting from the trend of anti-internal competition.

Huatai Securities stated that the industry prosperity index in June has rebounded, with the downward slope of the non-financial industry prosperity index slowing down. From a fundamental perspective, it is advisable to focus on industries where second quarter performance is expected to improve or maintain high growth, such as minor metals, PCB, storage, wind power, insurance, thermal power, infrastructure, some consumer goods, as well as industries like pharmaceuticals, military industry, gaming, and communication equipment/software that are independently driven by economic cycles. Benefiting from anti-inner loop policies, signs of a bottoming-out in the economic cycle, and relatively sufficient consideration of downward valuation expectations, industries such as steel, coal, and some chemical products are also recommended. On the other hand, the export chain following the global manufacturing cycle is still in decline, leading to downward pressure on industries like home appliances, capital goods, and consumer electronics.