Core Viewpoint - A-shares opened higher on the first trading day after the National Day and Mid-Autumn Festival holiday, with significant gains in gold and storage chip sectors, driven by rising international gold prices and advancements in nuclear fusion technology [1] Group 1: Market Performance - The three major A-share indices opened collectively higher, with the Shanghai Composite Index up by 0.4%, the Shenzhen Component Index up by 0.53%, and the ChiNext Index up by 0.4% [1] - The gold and non-ferrous metal sectors experienced substantial increases, with companies like Chifeng Jilong Gold Mining and Sichuan Gold both hitting the daily limit, while Shandong Gold and Western Gold rose over 7% [1] Group 2: Sector Highlights - International gold prices have surpassed the $4,000 mark for the first time, leading to continuous new highs [1] - The controlled nuclear fusion concept saw a strong opening, with companies such as Hezhong Intelligent and Yongding Co. hitting the daily limit, following key breakthroughs in China's nuclear fusion device construction [1] - The storage chip sector also saw initial gains, with companies like CanSemi and Xiangnong Chip rising over 13%, while Shenzhen Technology and Tongfu Microelectronics reached the daily limit [1]

Core Viewpoint - The A-share market opened positively on the first trading day after the National Day and Mid-Autumn Festival holiday, with all three major indices rising, indicating strong market sentiment and sector performance [1] Market Performance - The Shanghai Composite Index opened up by 0.4%, the Shenzhen Component Index by 0.53%, and the ChiNext Index by 0.4% [1] - The gold and non-ferrous metal sectors experienced significant gains, with stocks like Chifeng Jilong Gold Mining and Sichuan Gold hitting the daily limit, while Shandong Gold and Western Gold rose over 7% [1] - International gold prices have surpassed the $4,000 mark, reaching new highs [1] Sector Highlights - The controllable nuclear fusion concept saw a strong opening, with stocks such as Hezhong Intelligent and Yongding Co. hitting the daily limit, following key breakthroughs in China's nuclear fusion device BEST construction [1] - The storage chip sector also performed well at the beginning of the trading session, with stocks like CanSemi and Xiangnong Chip rising over 13%, and companies like Shenzhen Technology and Tongfu Microelectronics hitting the daily limit [1] - Institutions reported a continuous increase in DRAM spot prices, contributing to the positive sentiment in the storage chip sector [1]

Core Insights - The controllable nuclear fusion sector is experiencing significant growth, with several companies reaching their daily price limits [1] Group 1: Stock Performance - Companies such as Hezhong Intelligent and Yongding Co., Ltd. have hit the daily limit up [1] - Other companies like Haheng Huaton, Tianli Composite, and Changfu Co., Ltd. have seen their stock prices increase by over 10% [1] - Additional firms including Shanghai Electric, Zhongzhou Special Materials, Zhejiang Fuhua Holdings, Western Superconducting, and Guoguang Electric are also witnessing upward trends in their stock prices [1]

我国可控核聚变领域再迎重大进展。据报道，10月1日，位于安徽合肥的紧凑型聚变能实验装置 （BEST）项目建设取得关键突破。BEST装置主机关键部件——杜瓦底座研制成功并顺利完成交付，精 准安装于BEST装置主机大厅内，标志着项目主体工程建设进入新阶段。 科技部国家科技专家库专家周迪在接受《证券日报》记者采访时分析，今年以来，我国可控核聚变行业 政策信号明确、装置建设加速、技术突破频现，长期成长趋势已确立。随着国家队主导，民营企业与民 间资本陆续入局，可控核聚变行业迎来"科研突破+工程落地"双爆发，商业化进程正从"技术验证"阶段 逐步向"实体建造加速期"过渡，相关上市公司有望从中受益。 商业化进程加速 据悉，BEST是我国正在建设的燃烧等离子体物理实验装置，该装置采用紧凑高场超导托卡马克技术路 线，运用高性能超导磁体等新技术，为未来核聚变发电"探路"。其总装工作于2025年5月份正式启动， 预计两年后建成，并在全球范围内首次实现聚变能发电演示。 北京艾文智略投资管理有限公司首席投资官曹辙表示，若BEST装置在未来几年内通过核聚变点亮第一 盏灯，将从科学验证、工程突破、产业链培育到全球格局重构等多维度，为可控核聚 ...

Core Insights - The report maintains an "Outperform" rating for the public utilities and environmental sectors, highlighting the successful completion of China's first ship-based green methanol refueling operation in Zhejiang Province and the anticipated demand for fusion equipment in Q4 [1][2][3] Market Review - In September, the CSI 300 index rose by 3.20%, while the public utilities index increased by 0.41% and the environmental index by 0.77%. The relative performance of public utilities and environmental sectors ranked 13th and 11th among 31 first-level industry classifications [1][13][23] - The environmental sector saw a 0.77% increase, with the power sector's thermal power rising by 2.34%, while hydropower and new energy generation fell by 3.08% and 1.36%, respectively. The water sector increased by 1.27%, and the gas sector rose by 5.65% [1][26][32] Important Events - China Ship Fuel successfully completed the first ship-based green methanol refueling operation in Zhejiang Province, marking a significant milestone for the Ningbo-Zhoushan Port as a hub for LNG, biofuels, and methanol refueling capabilities [2][14] - The BEST fusion energy project achieved a key milestone with the successful installation of its first critical component, the Dewar base, indicating progress in the construction of fusion devices in China [3][15][16] Sector Analysis Public Utilities - Coal and electricity prices are declining simultaneously, allowing thermal power profitability to remain reasonable. Recommendations include major thermal power companies such as Huadian International and Shanghai Electric [4][21] - Continuous government support for renewable energy development is expected to stabilize profitability in the sector, with recommendations for leading companies like Longyuan Power and Three Gorges Energy [4][21] - Nuclear power companies are expected to maintain stable profitability due to growth in installed capacity and generation, with recommendations for China National Nuclear Power and China General Nuclear Power [4][21] Environmental Sector - The water and waste incineration industries are entering a mature phase, with significant improvements in free cash flow. Recommendations include companies like China Everbright Environment and Zhongshan Public Utilities [22] - The domestic scientific instrument market, valued at over $9 billion, presents substantial opportunities for domestic replacements, with recommendations for companies like Focused Photonics [22] - The EU's SAF blending policy is expected to increase demand for raw materials, benefiting the domestic waste oil recycling industry, with recommendations for companies like Shanggou Environmental Energy [22] Investment Strategy - The report emphasizes the importance of integrating renewable energy with smart energy management, recommending investments across the renewable energy supply chain and companies involved in comprehensive energy management [21][22]

Market Outlook - The market is expected to continue the upward trend observed in September, maintaining a low-slope oscillating movement in October, with a high probability of an upward trend due to the low base effect from last year and anticipated earnings growth in most industries [1][2] - The upcoming Fourth Plenary Session and the introduction of the 15th Five-Year Plan are expected to influence market expectations and trading directions, maintaining a high risk appetite in October [2] Industry Recommendations - Key sectors to focus on include non-ferrous metals, power equipment, machinery, automotive, electronics, and media, particularly those with sustained high prosperity and potential for turnaround [1][3][7] - Specific recommendations include industrial metals, precious metals, photovoltaic equipment, batteries, automation equipment, passenger vehicles, semiconductor, consumer electronics, and gaming [3][7] Investment Style and Fund Flows - The market is leaning towards a large-cap style in October, with growth expected to continue to outperform, and a more balanced industry style [3] - There is a positive outlook for net inflows of incremental funds in October, driven by financing funds and continued interest in industry and thematic ETFs [4][5] Economic and Liquidity Conditions - The macro liquidity environment is expected to remain stable, with the central bank maintaining a supportive monetary policy, which is crucial for market stability [4] - The overall funding supply is improving, with a notable increase in the issuance of equity funds and a shift from net redemptions to net subscriptions in ETFs [5] Earnings and Sector Performance - The third-quarter earnings report is anticipated to show significant growth in sectors such as high-end manufacturing, AI industry chain, and essential consumer goods, driven by low base effects and policy support [6][7] - The sectors with the highest expected earnings growth include mid-to-high-end manufacturing, AI-related industries, and certain resource products [6]

Group 1 - The market is expected to continue the upward trend observed in September, maintaining a low-slope oscillation, with the current phase identified as the second stage of a bull market, driven by continuous inflow of incremental capital [2][3][25] - Key sectors to focus on include AI computing and applications, semiconductor self-sufficiency, solid-state batteries, commercial aerospace, and controllable nuclear fusion, along with "anti-involution" related directions [3][17][25] - The upcoming Fourth Plenary Session and the anticipated 15th Five-Year Plan are expected to influence market expectations and trading directions, with a high probability of maintaining a favorable risk appetite in October [3][22][25] Group 2 - The industry configuration strategy suggests a focus on high-growth sectors, particularly in large-cap styles, with recommendations for indices such as CSI 300, ChiNext 50, and 300 Quality Growth [4][20][21] - Recommended industries include non-ferrous metals (industrial metals, precious metals, minor metals), power equipment (photovoltaic equipment, batteries, wind power equipment), machinery (automation equipment), automotive (passenger cars, auto parts), electronics (semiconductors, consumer electronics), and media (gaming) [4][20][21] - The liquidity outlook indicates continued net inflow of incremental capital, with a strong emphasis on the role of public and private funds, as well as industry and thematic ETFs [5][7][24] Group 3 - The third-quarter earnings reports are expected to show a rebound in profitability across most industries due to a low base from the previous year, reinforcing market confidence [19][23][26] - High-growth areas anticipated for improvement include mid-to-high-end manufacturing, AI industry chain, and resource sectors benefiting from price increases [8][33][36] - The report highlights the importance of monitoring the performance of sectors such as electronic devices, power equipment, and machinery, which are expected to show significant growth [8][33][36]

Core Viewpoint - The October stock market is expected to be influenced by the Federal Reserve's interest rate cuts, which may enhance market risk appetite and support economic recovery policies, leading to a focus on growth and value investment strategies in sectors like TMT, pharmaceuticals, and securities [1][3]. Group 1: Recommended Stocks - Stocks such as Zhaoyi Innovation, Luxshare Precision, and WuXi AppTec have received multiple recommendations from various brokerages, indicating strong market interest [1][3]. - Zhaoyi Innovation's stock price increased by 8.2% and WuXi AppTec by 6.42% as of September 30, reflecting positive market sentiment [3]. Group 2: Key Investment Themes - The focus remains on eight key sectors, including AI computing power, semiconductor self-sufficiency, solid-state batteries, commercial aerospace, and controllable nuclear fusion, which are expected to drive investment interest [3]. - The technology sector is anticipated to maintain its upward trend, with both domestic and overseas AI industries showing continuous improvement [3]. Group 3: Market Strategy Recommendations - Long-term strategies should consider high-growth and high-elasticity sectors such as communications, non-ferrous metals, gaming, and Hong Kong internet stocks [4]. - The market is advised to pay attention to sectors with improved fundamentals, particularly in non-banking areas, as well as to events that may catalyze market expectations, such as low-altitude economy and embodied intelligence [4].

Group 1: Industry Developments - The BEST project in Hefei, Anhui, has achieved a key breakthrough with the successful development and delivery of the Dewar base, marking a new phase in the construction of the fusion energy experimental device [2] - The BEST device will demonstrate nuclear fusion power generation for the first time internationally, with total assembly work starting in May 2025 and expected completion in two years [2] - Germany's government has approved an action plan to build the world's first nuclear fusion power plant, with over €2 billion allocated for research and infrastructure by 2029 [2] Group 2: Policy Support - The "Atomic Energy Law" was passed by the National People's Congress on September 12, 2023, which encourages and supports controlled thermonuclear fusion research and technology development [4][5] - The law establishes a management system tailored to the characteristics of controlled thermonuclear fusion, promoting its application [5] Group 3: Market Outlook - The controlled nuclear fusion sector is seeing increased transaction volumes and a potential surge in orders for component manufacturers due to accelerated construction of devices globally [5] - Major investment activities are occurring in the controlled nuclear fusion space, with significant financing from tech giants in the U.S. and a projected annual investment of several hundred billion yuan if commercialized [5] Group 4: Company Performance - Shanghai Electric has become a leading supplier of core equipment for nuclear fusion projects, showcasing its capabilities at the 25th China International Industry Fair [6][8] - West Superconducting has actively engaged with major domestic controlled nuclear fusion projects, leveraging its superconducting wire products [8] - Forecasts indicate significant profit growth for several companies in the controlled nuclear fusion sector, with Yongding Co. expected to see a 451.02% increase in net profit by 2025 [6][9]

Group 1: Industry Developments - The BEST project in Hefei, Anhui, has achieved a key breakthrough with the successful development and delivery of the Dewar base, marking a new phase in the construction of the compact fusion energy experimental device [1] - The BEST device will demonstrate nuclear fusion power generation for the first time internationally, with total assembly work starting in May 2025 and expected completion in two years [1] - Germany's government has approved an action plan to build the world's first nuclear fusion power plant, with over €2 billion allocated for research and infrastructure by 2029 [1] Group 2: Policy Support - The "Atomic Energy Law" was passed in China, encouraging and supporting controlled thermonuclear fusion research and technology development, effective from January 15, 2026 [2] - The law establishes a management system for fusion fuel and facilities, promoting the application of nuclear fusion [2] Group 3: Market Outlook - Analysts predict a significant increase in net profits for fusion-related stocks, with companies like Yongding Co. expected to see a 451.02% increase in net profit by 2025 [3][6] - Shanghai Electric has been a key player in the nuclear fusion project since 2000, showcasing its core equipment at the recent industrial expo [5] - The global competition in controlled nuclear fusion is intensifying, with frequent financing activities among companies and significant investments anticipated in the future [2] Group 4: Company Performance - Shanghai Electric leads in net financing buy-ins among fusion concept stocks, with an amount of ¥16.38 billion [3] - West Superconducting has actively engaged in major domestic fusion projects, leveraging its superconducting wire products [5] - Institutions have shown strong interest in companies like China Nuclear Power and West Superconducting, indicating a positive outlook for the sector [5]