Guoxin Securities believes that looking back, the market may rebound. The intensive disclosure period for the August mid-term report is expected to be an inflection point for the market to switch from valuation digestion to profit drive, and the earnings season is expected to be a relatively good allocation window for the second half of the year. The market's current core concern is the sustainability of overseas AI capex, but at least two rounds of similar debates since 2020 will eventually end with the next performance data. Each debate will be accompanied by a 10% to 20% correction in the sector, and the market will then be repaired within a few months. Currently, both domestic and foreign technology profits have maintained high growth. At the same time, the overall profit growth rate continues to rise, driven by PPI. The profit growth rate of all A non-financial reports is expected to reach double digits. Combined with systemic support at the policy level and the continued decline in the sensitivity of A-shares to overseas shocks, the market may enter a new structural upward phase.

Guoxin Securities believes that looking back, the market may rebound. The intensive disclosure period for the August mid-term report is expected to be an inflection point for the market to switch from valuation digestion to profit drive, and the earnings season is expected to be a relatively good allocation window for the second half of the year. The market's current core concern is the sustainability of overseas AI capex, but at least two rounds of similar debates since 2020 will eventually end with the next performance data. Each debate will be accompanied by a 10% to 20% correction in the sector, and the market will then be repaired within a few months. Currently, both domestic and foreign technology profits have maintained high growth. At the same time, the overall profit growth rate continues to rise, driven by PPI. The profit growth rate of all A non-financial reports is expected to reach double digits. Combined with systemic support at the policy level and the continued decline in the sensitivity of A-shares to overseas shocks, the market may enter a new structural upward phase.