Zhongyuan Securities·2025-04-03 00:45Core Insights - The report highlights the ongoing recovery in the A-share market, with a focus on sectors such as technology, healthcare, and renewable energy, indicating a shift towards growth-oriented investments as the economy stabilizes [5][9][10]. Domestic Market Performance - The Shanghai Composite Index closed at 3,350.13 with a slight increase of 0.05%, while the Shenzhen Component Index closed at 10,513.12, up by 0.09% [3]. - The average price-to-earnings (P/E) ratios for the Shanghai Composite and ChiNext are at 14.24 and 37.51 respectively, suggesting a favorable environment for medium to long-term investments [9][10]. International Market Performance - Major international indices showed mixed results, with the Dow Jones down by 0.67% and the S&P 500 down by 0.45%, while the Nikkei 225 increased by 0.62% [4]. Industry Analysis - The AI industry is experiencing rapid growth, with significant investments in computing power infrastructure, particularly in data centers and AI servers, driven by the increasing demand for AI applications [14][25]. - The electrical equipment sector is expected to see continued valuation recovery, supported by a rebound in manufacturing activity, as indicated by a manufacturing PMI of 50.2% in February 2025 [18][20]. - The renewable energy sector, particularly wind and solar power, is witnessing increased demand, with a notable rise in installed capacity and government support for infrastructure development [36][33]. Key Economic Policies - Recent government policies aim to enhance price governance mechanisms and promote sustainable development in public utilities, which may positively impact sectors like energy and utilities [5][8]. - The National Development and Reform Commission has initiated plans to support the high-quality development of the heat pump industry, indicating a focus on energy efficiency and innovation [5][8]. Investment Recommendations - Investors are advised to focus on sectors with strong fundamentals and stable earnings, such as traditional engineering machinery and renewable energy, while also considering opportunities in emerging technologies like AI and robotics [31][35].