Huatai Securities says A-share market rose last week led by growth; the AI
supply chain rallied on policy catalysts but apparent crowding is high. A
K-shaped recovery is likely to continue short term and weak domestic demand
increases the chance of additional policy support; the AI industry cycle remains
strong but the sentiment pullback is shallow and hedges are thin, leaving
fragility to build. Tactical guidance: moderate positions, do not chase highs
and maintain a safety buffer. Allocation signals: 1) AI hardware and price-up
beneficiary chains with high earnings visibility — optical modules, storage/CCL,
MLCC, MPO; 2) names with two-way supply-demand improvement visible in earnings —
consumer electronics, minor metals, home renovation and building materials; 3)
sectors with steady shareholder returns and defensive attributes to hedge
technology-trade volatility.
