360 Security Technology (SH:601360) Sou Hu Cai Jing·2025-11-03 08:53Core Viewpoint - The A-share market shows a rebound with all three major indices closing in the green, driven by strong performance in the AI application sector and software stocks [1][3]. Group 1: Market Performance - The Software 50 ETF (159590) rose by 0.81%, marking a two-day consecutive increase [1]. - The Software 50 ETF attracted a net inflow of over 33 million yuan throughout the day, continuing its trend of capital absorption for six consecutive days, totaling over 80 million yuan [1]. Group 2: Policy and Industry Development - The State Council meeting on October 31 emphasized accelerating the cultivation and large-scale application of new scenarios, leveraging China's vast market and diverse application scenarios [3]. - The meeting highlighted the importance of aligning supply and demand, focusing on new fields and high-value scenarios, and ensuring a complete cycle from technological breakthroughs to industrial applications [3]. Group 3: Company Performance - Among the popular stocks in the Software 50 ETF, 360 (三六零) saw a rise of over 7%, while Tuowei Information (拓维信息) and Deepin Technology (深信服) increased by over 2% [3]. - 360 reported a revenue of 2.24 billion yuan for Q3 2025, a year-on-year increase of 16.88%, with a net profit of 160 million yuan [3]. Group 4: Investment Insights - Zhongtai Securities noted that the software sector is experiencing a combination of low positioning and performance resonance, suggesting a favorable environment for investment [5]. - The computer sector's heavy position ratio is at a historical low of 2.76%, indicating significant potential for recovery [5]. - The software sector has seen a year-to-date increase of 36.04%, with a widening gap between software and hardware performance, suggesting potential for a rebound [6]. Group 5: Global Trends and Implications - Overseas software companies have reported strong Q3 earnings, positively influencing the domestic market, with companies like Google and Cloudflare maintaining investments in AI infrastructure [7]. - The trend of AI integration in search engines is becoming a competitive battleground for manufacturers [7]. Group 6: Future Outlook - The domestic AI application market is poised for significant growth, with leading companies showing impressive revenue and profit growth in Q3 2025, indicating the approach of a commercial explosion in AI applications [8]. - The cost of AI models is decreasing while their capabilities are improving, which is expected to drive the prosperity of AI applications [9].