CCSC(SH:601375) Zhongyuan Securities·2025-10-13 00:26Core Insights - The report highlights a mixed performance in various sectors, with some industries showing signs of recovery while others face challenges due to regulatory changes and market dynamics [5][6][19]. Domestic Market Performance - The Shanghai Composite Index closed at 3,897.03, down 0.94%, while the Shenzhen Component Index fell by 2.70% to 13,355.42 [3]. - The overall market sentiment remains cautious, with fluctuations observed across different indices, indicating a need for strategic investment approaches [15]. International Market Performance - Major international indices such as the Dow Jones and S&P 500 also experienced declines, reflecting a broader trend of market volatility [4]. Industry Analysis - The basic chemical industry reported a slight revenue increase of 4.70% year-on-year, with net profits growing by 0.40% in the first half of 2025, indicating a bottoming recovery phase [16][18]. - The photovoltaic sector saw a significant drop in new installations, with a 55.29% year-on-year decline in August, while the overall market remains competitive with price adjustments across the supply chain [20][21]. - The gaming sector is projected to perform well, driven by favorable policies and AI advancements, with a notable increase in revenue and profit margins [24][26]. Policy Developments - The Chinese government has implemented measures to enhance service-oriented manufacturing and optimize urban land use, aiming for sustainable economic growth by 2028 [5][9]. - Recent policies targeting the semiconductor and new materials sectors are expected to stimulate innovation and investment, aligning with the country's strategic goals [36][37]. Investment Recommendations - The report suggests a balanced investment strategy focusing on growth and value sectors, particularly in TMT (Technology, Media, and Telecommunications), pharmaceuticals, and securities [13][34]. - Specific attention is recommended for leading companies in the photovoltaic and gaming industries, as they are expected to benefit from market trends and policy support [20][26].