库存周期企稳，A股盈利逐步修复

Core Views - The nominal and actual inventory levels showed signs of replenishment in July, indicating that the steady growth policies have begun to take effect, although revenue has not yet shown a sustained recovery. The progress of both stock and incremental policies remains a key focus for future observation [1][7][11] - A-share listed companies are still in the process of bottoming out, but there are signs of a weak recovery in fundamentals. As of August 30, the overall mid-year performance of all A-shares has improved compared to the previous two quarters, primarily driven by the main board, while the performance of the Sci-Tech Innovation Board and the Growth Enterprise Market has weakened [1][11][12] Market Trends - The market has shown a certain degree of preemptive reaction to mid-year performance, with historical data indicating a significant correlation between stock price changes and performance growth rates in the first ten trading days before the mid-year report release. However, this correlation has weakened in the ten trading days following the report release [1][11][12] - Recent steady growth policies have accelerated, leading to improved market expectations for the economy. High-dividend sectors that previously saw crowded investments are showing signs of fund loosening, with high-growth and low-valuation industries such as computers, agriculture, power equipment, automobiles, non-ferrous metals, and media likely to attract capital [1][11][12][16] Industry Insights - The second quarter saw a notable improvement in the performance of A-share companies, with the overall net profit growth rate for all A-shares at -1.65%, an increase of 3.20 percentage points from the first quarter. The main board's net profit growth rate was 1.87%, up 5.64 percentage points from the previous quarter [11][12][13] - The report highlights that the military industry, despite its underwhelming mid-year performance, is expected to recover due to various catalysts, including new growth points represented by commercial aerospace and low-altitude economy. The report suggests focusing on military central enterprises and companies with military trade as their second growth curve [4][21][22] Investment Recommendations - The report recommends focusing on two major policy directions: boosting domestic demand and promoting self-sufficiency. It emphasizes the importance of tracking the implementation of policies from the July Politburo meeting and upcoming events such as the Federal Reserve's interest rate meeting and the U.S. presidential election debates [5][22]