Core Insights - The report from China Merchants Securities highlights five key sectors for short-term focus: AI applications, AI hardware, electrical equipment, non-ferrous metals, and innovative pharmaceuticals [1] - In the medium to long term, the emphasis is on cyclical trends and supply-demand dynamics, particularly in the context of the new technology cycle and carbon neutrality initiatives [1] Group 1: Battery Technology - Chinese scientists have successfully overcome critical challenges in all-solid-state lithium batteries, leading to significant performance upgrades [2] - Three key technologies have been identified: 1) iodine ion "special glue" for self-repairing interfaces without external pressure; 2) composite electrolytes that combine flexibility and stability; 3) new fluorinated polyether electrolytes that resolve the conflict between high energy density and safety [2] - Semi-solid batteries are expected to be mass-produced in the short term, while all-solid-state batteries may enter full-scale industrialization in the long term [2] Group 2: Offshore Wind Industry - The offshore wind power sector is transitioning from policy-driven growth to market-driven development, with significant structural shifts as land-based tax rebates are phased out while offshore incentives remain [2] - The recovery in the offshore wind industry is supported by rising equipment prices and improved profitability, alongside intensified competition in foundational segments [2] - The shortage of capacity in Europe is driving Chinese companies to expand overseas, with deep-sea and high-voltage direct current technologies expected to initiate a new growth cycle [2]