Zheng Quan Shi Bao Wang·2025-08-05 15:33Core Viewpoint - The report from China Merchants Securities highlights five key sectors with marginal improvements to focus on in August: AI applications, AI hardware, non-bank financials, defense and military industry, and innovative pharmaceuticals [1] Short-term Focus - The five sectors identified for short-term attention include AI applications, AI hardware, non-bank financials, defense and military, and innovative pharmaceuticals [1] Long-term Strategy - The long-term strategy suggests focusing on cycles and supply-demand dynamics, emphasizing the progress of societal intelligence under the new technology cycle, including continuous iteration of large models, improvement of computing infrastructure and AI ecosystem, commercialization of AI business models, and AI's empowerment of consumer electronics and robotics [1] Domestic Substitution Cycle - Attention is drawn to the domestic substitution cycle, particularly in the context of self-controllable industrial chains related to domestic large models, AI applications, computing power, and the integrated circuit industry [1] Carbon Neutrality Cycle - The report also emphasizes the carbon neutrality cycle, focusing on cost reduction and efficiency improvement across the entire industry chain, including solar energy, wind energy, energy storage, hydrogen energy, and nuclear power [1] Electrification and Intelligence Trend - The trend towards electrification and intelligence is highlighted, with an increase in the penetration rate of electric smart vehicles [1]