The CITIC Securities Research Report points out that since 2025, the A-share market has emerged from a “dumbbell” pattern that has continued for 3 years, and the recovery in growth in the hard technology sector represented by science and innovation and the GEM is the fundamental foundation. After systematic valuation restoration from June to October, trend differentiation between industries intensified since October, and continued growth in performance up to Q3 is the foundation for the resilience of most industries after October. At present, the expected profit of the Shuangchuang and Technology sector is higher than the current level of achievement. It is recommended to focus on the 2026 performance implementation situation; compared with industries similar to PB, the profit level of defense and military industry still has room to improve; the profit gap between the food and beverage industry and the home appliance industry is gradually narrowing, but there may be a process of valuation getting closer in the long term; the trend of switching between old and new economic growth momentum within the general market index is remarkable, and the stability of overall profit and price fluctuations is the basis for its allocation value. January 2026 is the 2025 annual report performance forecast observation time window. It is recommended to pay attention to the performance implementation of relevant industries.

The CITIC Securities Research Report points out that since 2025, the A-share market has emerged from a “dumbbell” pattern that has continued for 3 years, and the recovery in growth in the hard technology sector represented by science and innovation and the GEM is the fundamental foundation. After systematic valuation restoration from June to October, trend differentiation between industries intensified since October, and continued growth in performance up to Q3 is the foundation for the resilience of most industries after October. At present, the expected profit of the Shuangchuang and Technology sector is higher than the current level of achievement. It is recommended to focus on the 2026 performance implementation situation; compared with industries similar to PB, the profit level of defense and military industry still has room to improve; the profit gap between the food and beverage industry and the home appliance industry is gradually narrowing, but there may be a process of valuation getting closer in the long term; the trend of switching between old and new economic growth momentum within the general market index is remarkable, and the stability of overall profit and price fluctuations is the basis for its allocation value. January 2026 is the 2025 annual report performance forecast observation time window. It is recommended to pay attention to the performance implementation of relevant industries.