Guosen Securities(SZ:002736) Guoxin Securities·2025-10-20 05:06Core Insights - The recent week (2025.10.13-2025.10.17) saw mixed performance in overseas markets, with South Korea leading gains and Hong Kong experiencing significant declines, particularly the Hang Seng Tech Index which fell by 7.98%. The valuation divergence is evident, with the Korean Composite Index PE expanding by 2.7x while the Hang Seng Tech Index PE contracted by 1.7x [2][7] - In the A-share market, major broad indices collectively declined, with the CSI 500 down by 5.17%, CSI 1000 by 4.62%, and the National CSI 2000 by 4.69%. Only large-cap value stocks saw a slight increase of 2.08%, while growth styles experienced significant pullbacks. Overall, valuations contracted, with the CSI 2000 PE shrinking the most by 7.4x [2][28] - The essential consumer sector shows superior valuation attractiveness. The valuation metrics for food and beverage, as well as agriculture, forestry, animal husbandry, and fishery sectors, indicate significant room for valuation recovery, with their 1-year, 3-year, and 5-year average valuation percentiles being notably low [2][50] Global Valuation Tracking - The global equity markets exhibited mixed results, with notable valuation changes. The U.S. markets saw slight PE expansions, while European markets showed divergence with Germany and the UK declining, and France increasing. The Indian SENSEX30 is highlighted as having lower valuation percentiles compared to the French CAC40, indicating a valuation advantage [7][8] A-share Broad Index Valuation Tracking - As of October 17, A-share broad indices' PE, PB, and PS metrics are positioned between the 88%-96% percentile range over the past year, while PCF percentiles remain low at 12%-30%. In the short to medium term, large-cap value stocks are relatively superior, while small-cap growth stocks, despite recent pullbacks, still exhibit low valuation attractiveness [29][30] Industry Valuation Tracking - The majority of primary industries experienced declines, with only coal (+4.17%), banking (+4.89%), food and beverage (+0.86%), and transportation (+0.37%) showing gains. The TMT sector faced the most significant pullbacks, with electronic and computer sectors seeing PE contractions of 5.05x and 5.33x respectively [50][51]