CITIC Construction Investment: Middle East ceasefire repairs sector sentiment, focusing on the low position of AI in the physical configuration opportunity.

Citic Securities Research Report suggests that a ceasefire agreement in the Middle East has been reached and market sentiment is expected to see improvement. In May, the automobile sector showed signs of domestic demand pressure and strong exports. The sector has seen a significant rebound since the end of April, and the pessimistic expectations for domestic demand may have already been priced in. The recent pullback in the sector is not fundamentally negative, mainly due to changes in liquidity factors such as the "high and low switch" in funding. Nonetheless, the outlook for the automobile export market remains positive for the whole year. At the same time, the bottomed alpha targets in the robotics and intelligent driving sectors have high cost performance, and the medium-term industry trend is expected to continue to materialize.