A-share midday review | ChiNext Index rose 0.4% in half a day, Siasun Robot & Automation concept stocks strengthened again. "Bull market leader" brokerage stocks showed unusual movement.

On April 2nd, the A-shares rebounded in the morning session with low volume, and the three major indexes rose slightly. More than 3200 stocks were in the green, with a total turnover of 617.5 billion yuan in the morning session, a decrease of 93.4 billion yuan compared to the previous day. By midday closing, the Shanghai Composite Index rose by 0.24%, the Shenzhen Component Index rose by 0.31%, and the ChiNext Index rose by 0.40%. Haitong pointed out that April is an important time point for the A-share market, with increased focus on fundamentals. In the A-share market, April is often an important window for performance verification, as there is less fundamental data disclosed in the first three months and the market is often influenced by policies or events. After April, the fundamental trend gradually becomes clear and the focus returns to fundamentals. In terms of market performance, brokerage stocks fluctuated higher, with Xiangcai Co., Ltd. hitting the limit up; the Siasun Robot & Automation industry chain rebounded, with several stocks including Zhongshan Broad-ocean Motor hitting the limit up; the heat pump concept surged, with stocks like Guangzhou Seagull Kitchen And Bath Products hitting the limit up; AI application side strengthened, with media and video-related sectors leading the gains, and Sunyard Technology hitting the limit up; computing power sector rebounded, with Jiangyin Hengrun Heavy Industries hitting three consecutive circuit breakers; automotive parts, wind power, and other sectors leading the gains. On the downside, power and energy stocks pulled back, with aerospace and traditional Chinese medicine sectors leading the declines. Looking ahead, EB SECURITIES believes that the index is expected to fluctuate and rebound, with a continuation of structural market trends and rotation of hotspots. Hot sectors: 1. Siasun Robot & Automation industry chain rebounded The humanoid Siasun Robot & Automation and other stocks in the Siasun Robot & Automation industry chain rebounded, with Zhongshan Broad-ocean Motor hitting the limit up, and stocks like Qinchuan Machine Tool & Tool Group Share, Kyland Technology, Saimo Technology, Ningbo Shuanglin Auto Parts, and Shanghai Mechanical & Electrical Industry following the uptrend. Analysis: on the news front, Yushu Technology released the Unitree Dex5 dexterous hand, which can play poker, solve Rubik's cubes, and flip through books, showcasing human-level fine control capabilities. Shanghai Securities believes that the humanoid Siasun Robot & Automation industry chain has entered a stage of "blooming flowers and competing voices". Currently, humanoid Siasun Robot & Automation has entered industrial scenes and has become a domestically and internationally high-certainty application trend. The commercialization of humanoid Siasun Robot & Automation is foreseeable. 2. AI application side strengthened The AI application side strengthened, with media and video-related sectors leading the gains, and Sunyard Technology hitting the limit up, followed by stocks like Sichuan Newsnet Media, Dasheng Times Cultural Investment, Guomai Culture & Media, and Beijing Baination Pictures. Analysis: according to SensorTower data, with the launch of GPT-4o with native image generation capabilities, the active users, in-app subscription revenue, and downloads of ChatGPT all reached historic highs last week. 3. Heat pump concept surged The heat pump concept surged, with Guangzhou Seagull Kitchen And Bath Products hitting the limit up, and stocks like Suzhou Invotech Scroll Technologies, Solareast Holdings, Zhejiang Dayuan Pumps Industry, Guangdong Vanward New Electric, and Songz Automobile Air Conditioning following the uptrend. Analysis: the National Development and Reform Commission and other departments issued a notice on promoting the high-quality development of the heat pump industry, aiming to continuously enhance the production and manufacturing capabilities as well as technological research and development capabilities of heat pumps by 2030, with a focus on improving the energy efficiency of key heat pump products by more than 20%. Institutional perspectives: 1. Shenwan Hongyuan Group: Weak volatility in the second quarter, technology may still have independent trends Shenwan Hongyuan Group pointed out that the direct reason for the short-term market adjustment is the upcoming "April Decision" period (A-share annual report first quarter verification period, Chinese economic data verification period, U.S. tariff fulfillment period), leading to a decrease in market risk appetite. After the short-term adjustment, the pressure of the "April Decision" has been largely released: the growth rate of Internet capital expenditure is positively related to the revenue growth rate of A-share domestic computing power-related sectors, and domestic computing power orders are in a period of concentrated release, with a potential turning point in the first quarter report. The technology market during the performance period is not about "falsification" but about "focus", and the subsequent domestic AI computing power may lead the way in differentiation and strength. Expectations for the improvement of A-share cyclical recovery are already low, and even if the economy does not continue to strengthen in April, there is limited space for additional downward revisions. Only the adjustment pressure during the verification period in April is limited. 2. Haitong: April is an important time point for A-shares, looking ahead to the first quarter clues from three dimensions Haitong pointed out that April is an important time point for the A-share market, with increased focus on fundamentals. In the A-share market, April is often an important window for performance verification, as there is less fundamental data disclosed in the first three months and the market is often influenced by policies or events. After April, the fundamental trend gradually becomes clear and the focus returns to fundamentals.This is because fundamental data disclosures are generally limited from January to March, and the market often reacts to policies or events during this period. However, after April, fundamental trends gradually become clearer, and attention shifts back to fundamentals. Historically, the April market trend of A-shares is greatly influenced by fundamentals: when fundamentals significantly improve, the market continues to rise, as seen in 2013; if fundamental data weakens, short-term market trends may shift to adjustment, as seen in 2019. Although the number of companies disclosing first-quarter earnings forecasts is still limited, we can perhaps take clues from macro high-frequency data, industrial enterprise profits, and analyst performance expectations to provide investors with some reference in advance.3EB SECURITIES: The index is expected to oscillate and rebound, with structural trends and hot spot rotation styles likely to continue. EB SECURITIES pointed out that looking ahead, market sentiment continues to improve, but trading volume remains relatively low, and hot spots are still rotating rapidly. It is expected that the index will oscillate and rebound, and the style of structural trends and hot spot rotation may continue. Direction: Focus on AI-related concepts at the end. Volcano Engine will hold an "AIoT Smart Wave" event on April 2nd, inviting leading players in smart hardware (including several A-share listed companies) to discuss the latest trends in conversational AI smart hardware, focusing on AI toys and other end-side AI hardware products, which may stimulate speculation in related concepts. This article is reprinted from "Tencent Stock Selection", edited by GMTEight: Wang Qiujia.