- The report reviews the elasticity of various industry indices since the beginning of the current bull market, highlighting that sectors like telecommunications and metal materials have not yet surpassed their previous highs from late January and early February, while indices like Wind All A and Wind All A Equal Weight have reached new highs by the end of February[7] - The report provides a detailed table showing the maximum range increase of primary industry indices from February 5, 2024, to February 27, 2026, with telecommunications business and metal materials & mining leading the gains with 218% and 217% respectively[8] - The report discusses the performance of strong stocks in February, noting that due to fewer trading days and the impact of the Spring Festival, the overall height of strong stocks was not high, and the hotspots were scattered, with rare metals entering a stage of accelerated shrinkage[11]

Investment Rating - The report suggests a positive outlook for the A-share market in March, indicating a potential for a strong performance driven by favorable policies and external conditions [1][5][9]. Core Insights - Historical analysis shows that A-shares tend to exhibit volatility in March, influenced by policy changes and external events, with a notable increase in fundamental factors post the National People's Congress (NPC) [5][6]. - The report anticipates that March 2026 will see a continuation of the spring market trend, with a focus on technology and cyclical sectors, particularly favoring small and mid-cap stocks [1][24]. - The report highlights that sectors with high earnings growth, such as automotive, machinery, and non-ferrous metals, are expected to outperform in March [1][24]. Summary by Sections Section 1: March A-share Market Outlook - Historical data indicates that only 7 out of the last 16 years saw the Shanghai Composite Index rise in March, with performance largely dictated by policy and external events [5][6]. - The report predicts a relatively strong performance for A-shares in March 2026, supported by potentially positive NPC policies and limited external risks [1][9]. Section 2: Industry Allocation - The report emphasizes a focus on technology growth and certain cyclical industries in March, suggesting that these sectors may continue to outperform [1][24]. - Historical trends show that growth and consumption styles have led the market in March, driven by policy support and industry trends [26][28]. - The report identifies that small and mid-cap stocks may have an advantage in March, supported by favorable liquidity conditions and rising commodity prices [1][24][28]. Section 3: Economic and Earnings Recovery - Economic indicators suggest a continuation of weak recovery trends in March, with consumer confidence on the rise and retail sales expected to improve due to supportive policies [18][19]. - Earnings growth is projected to rebound in March, particularly in sectors like non-ferrous metals and chemicals, driven by rising commodity prices and demand in technology sectors [19][20].

Investment Rating - The report recommends a "Buy" rating for several companies within the technology sector, indicating a positive outlook for their stock performance over the next 12 months [31]. Core Insights - The report highlights key companies in the technology sector, including Jiangsu Technology (Electronics, Communication, Computer, Media) as top picks for March 2026 [5][9]. - The report emphasizes the growth potential in various sub-sectors, particularly in 3D printing, liquid cooling solutions, AI chips, and gaming [15][16][18][19][21]. Summary by Category Electronics - **Precision Electronics**: Expected to achieve a net profit of 0.8e-0.9e in 2025, a significant increase of 181.97%-192.21% year-on-year, driven by semiconductor orders and improved operational efficiency [15]. - **Han's Laser**: Anticipated explosive growth in 3D printing, with a potential market share increase due to demand from North American clients [15]. Communication - **Invech**: Projected net profits of 5.87 million, 10.47 million, and 15.35 million from 2025 to 2027, with a strong focus on liquid cooling solutions and overseas market expansion [16]. - **Rui Ming Technology**: Expected to recover from previous losses, with projected net profits of 3.81 million, 4.95 million, and 6.67 million from 2025 to 2027, driven by increased demand in commercial vehicle information systems [17]. Computer - **Haiguang Information**: Positioned as a leader in high-end CPUs and DCUs, benefiting from the growth of domestic AI computing power and collaboration with major tech firms [18]. - **Cambricon**: Anticipated to maintain strong growth in AI chip demand, supported by ongoing R&D and market trends [18]. Media - **Kaiying Network**: Expected to launch several new games in 2026, which are projected to drive revenue growth [19]. - **Perfect World**: Anticipated to release a new RPG game, "Yihuan," with high market expectations, contributing to future revenue growth [21].

Investment Rating - The investment rating for the industry is "Outperform the Market" (maintained rating) [1]. Core Insights - The report emphasizes the rapid development of AI and the value of AI HALO assets, which are characterized by heavy assets and low obsolescence [2][7]. - HALO assets include infrastructure such as power grids, oil and gas pipelines, public utilities, and transportation infrastructure, which are less susceptible to technological disruption compared to software and IT services [7]. - The performance of the US infrastructure stock index has significantly outperformed the US SaaS index, with an increase of 80.59% compared to a decrease of 17.05% over the specified period [7]. Summary by Sections AI HALO Definition - HALO stands for Heavy Assets and Low Obsolescence, indicating a business model based on substantial physical capital with high replication barriers and economic relevance that persists through technological cycles [7]. Market Performance - The report compares the performance of the US infrastructure stock index and the US SaaS index over a 25-year period, highlighting the superior performance of infrastructure stocks [7]. Drivers of AI HALO - The report identifies two main drivers for AI HALO: 1. The rapid enhancement of AI Agent capabilities, which diminishes the moat of light asset models [8][11]. 2. A significant increase in capital expenditures by major overseas companies, which directly benefits HALO assets [12][15]. Company Analysis - The report provides a list of domestic companies related to AI HALO, categorized by industry, including IDC, computing power leasing, wafer foundry, AI chips, AI servers, and more [16].

Group 1 - The core view of the report indicates that the A-share market typically exhibits a calendar effect around the Two Sessions, showing an overall upward trend, with small-cap stocks outperforming large-cap stocks before the sessions and consumer stocks potentially showing stronger price elasticity afterward [2][8][15] - Historical data suggests that during the window period of the first year of each Five-Year Plan, the market is likely to focus on the industrial main lines outlined in the plan, with significant correlations between market performance and financing balance during bull markets [9][10][11] Group 2 - In the week following the Lunar New Year, the A-share market experienced a strong start, led by cyclical sectors, with the CSI 1000 index outperforming other indices, indicating a preference for small-cap stocks [7][8] - The report highlights that the market focus is expected to shift towards policy discussions from the Two Sessions, annual report disclosures, and key events such as the Federal Reserve's meetings and Sino-US relations [7][8] - The report identifies four main investment themes aligned with the "15th Five-Year Plan," including technological innovation, national security, resource management, and consumer services, which are expected to benefit from policy support [11][20]

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The report highlights a significant increase in demand for computing power driven by advancements in AI models, particularly in video generation and multi-modal applications, indicating a structural shift in the industry towards higher quality and more complex models [6][11][17] - The introduction of GLM-5 and its "Interleaved Thinking" mechanism represents a new paradigm where computing power is exchanged for intelligence, leading to increased computational demands for inference tasks [13][27] - The supply side is expected to transition from a state of scarcity to structural balance by 2026, with improvements in domestic chip performance and the approval of NVIDIA's H200 chips for the Chinese market [42][43] Summary by Sections Section 1: Supply and Demand Dynamics - Seedance 2.0 has shown a strong user demand with long wait times for video generation, indicating a critical need for computing resources [11][12] - The demand for computing power is expected to escalate as major internet companies continue to develop large-scale AI models, with a notable focus on multi-modal capabilities [17][18] Section 2: Rapid Release of Computing Demand - The competition among leading internet firms is intensifying, with significant investments in AI infrastructure and model development, leading to a sharp increase in inference computing demand [32][34] - The report predicts that by 2026, the AI application landscape will expand significantly, driving real-time inference computing consumption [6][33] Section 3: Supply Side Improvements - The approval of NVIDIA's H200 chips is expected to alleviate computing power shortages for major internet companies, enhancing model iteration speeds [42] - Domestic chip manufacturers are making strides in performance and ecosystem development, with several companies achieving significant advancements in their products [43][44] Section 4: Full-Chain Inflation in Domestic Computing Power - The report anticipates a "full-chain inflation" cycle in the computing power industry by 2026, with growth expected across various segments including AI data centers and cloud services [49] - Major tech companies are projected to increase their capital expenditures significantly, further driving demand for computing resources [51] Section 5: Related Companies - The report identifies several companies as relevant to the industry, including Dongyangguang, Cambrian, Haiguang Information, Wangsu Technology, and others [4][55]

Group 1 - The North Exchange 50 Index increased by 0.36% in February 2026, outperforming the ChiNext 50 and Sci-Tech 50 indices [3][6][30] - In February 2026, 14 companies saw their stock prices rise by 10% or more, with *ST Yun Chuang, Yi Neng Power, and Can Neng Power exceeding 20% growth, primarily in the power and related industries [3][13][10] - The average daily trading volume on the North Exchange fell to 191 billion yuan in February 2026, with a monthly turnover rate of 28% [3][18][31] Group 2 - As of February 27, 2026, the overall price-to-earnings (PE) ratio of the North Exchange A-shares reached 49 times, which is 103% of the ChiNext's valuation and 58% of the Sci-Tech board's valuation [21][30][32] - The report highlights that 295 companies on the North Exchange released their 2025 performance reports, with 63% showing revenue growth, and 21 companies reported net profit growth exceeding 100% [24][25][26] - Companies such as Tian Gong Co., Zhuo Zhao Adhesive, and Hai Neng Technology are noted for significant revenue and profit growth, indicating strong performance in the market [24][25][26] Group 3 - The report emphasizes the importance of focusing on companies with strong performance forecasts, particularly those with significant improvements in Q4 2025, such as Tian Gong Co. and Zhuo Zhao Adhesive [26][27] - The upcoming quarterly adjustment of the North Exchange 50 Index on March 16, 2026, is expected to attract passive fund allocations to newly included stocks, with Bi Kang Technology being highlighted for its potential impact [26][27] - The report suggests monitoring sectors likely to receive policy support, such as quantum technology and commercial aerospace, to identify quality investment opportunities [26][27]

Investment Rating - The report rates the industry as "Overweight" indicating a positive outlook for the sector [2]. Core Insights - The report identifies four major trends in the inference computing landscape driven by the Token economy, highlighting a surge in demand for inference computing, the emergence of pure inference chips, comprehensive innovations in inference systems, and accelerated breakthroughs in domestic computing chips [3][4][17]. Summary by Sections Inference Computing Trends - Inference computing demand is experiencing explosive growth, with significant increases in model invocation during the Spring Festival, where domestic AI models surpassed U.S. models for the first time [5][6]. - Pure inference chips are becoming increasingly important, as evidenced by Nvidia's $20 billion acquisition of Groq and OpenAI's partnerships with Cerebras, indicating a shift towards specialized inference hardware [9]. - Inference systems are undergoing comprehensive innovations, with a new three-layer network architecture designed to meet the needs of agents, increasing demand for multi-core and multi-threaded CPUs [10][11]. - Domestic computing chips are making rapid advancements, with Huawei's Ascend 950 series introducing new low-precision data formats and significantly enhancing vector computing capabilities [17][18]. DeepSeek V4 Expectations - Anticipations for DeepSeek V4 include leading capabilities in inference and coding, improved handling of long contexts and complex tasks, and continued innovation in technical architecture [22][25]. - Recent papers from DeepSeek suggest breakthroughs in long context processing and complex task handling, which may enhance the performance of domestic computing chip adaptations [29][35]. Recommended Investment Themes - Key investment themes include leadership in the digital economy, AIGC applications, AIGC computing power, data elements, flexible innovation, core Hong Kong stocks, intelligent connected vehicles, new industrialization, and medical informationization [37].

Investment Rating - The report maintains a positive outlook on the computer industry, highlighting significant growth opportunities in inference computing and AI applications [2]. Core Insights - The report identifies four major trends in inference computing driven by the Token economy, emphasizing the explosive demand for inference computing, the rise of pure inference chips, comprehensive system innovations, and accelerated breakthroughs in domestic computing chips [3][4][17]. Summary by Sections Inference Computing Trends - **Trend 1: Explosive Demand for Inference Computing** During the Spring Festival, major domestic AI models saw a substantial increase in inference data, with the number of tokens processed reaching 633 billion on New Year's Eve. In late February, the usage of Chinese AI models surpassed that of the US for the first time, with a total of 4.12 trillion tokens compared to 2.94 trillion tokens from the US [5][6]. - **Trend 2: Emergence of Pure Inference Chips** Nvidia's acquisition of Groq for $20 billion and OpenAI's collaboration with Cerebras underscore the importance of pure inference chips. The future landscape will likely consist of a combination of training GPUs and inference ASICs, creating opportunities for companies focused on inference chips [9][7]. - **Trend 3: Comprehensive System Innovations** The report discusses a new three-layer network architecture designed to meet the demands of AI agents, which includes a fast-response layer, a slow-thinking layer, and a memory layer. This innovation is expected to increase the demand for multi-core and multi-threaded CPUs [10][11]. - **Trend 4: Accelerated Breakthroughs in Domestic Computing Chips** Huawei's Ascend 950 chip introduces new low-precision data formats and significantly enhances vector computing capabilities. The report notes that the domestic supply chain is rapidly improving, with companies like Shenghe Jingwei seeing rapid revenue growth in 2.5D packaging services [17][19]. DeepSeek V4 Expectations - The report anticipates that DeepSeek V4 will achieve industry-leading standards in inference and coding capabilities, with improvements in handling long contexts and complex tasks. Recent technical papers suggest breakthroughs in these areas, enhancing the feasibility of domestic computing chip adaptations [22][25][35]. Recommended Investment Themes - The report highlights several key investment themes, including leadership in the digital economy, AIGC applications, AIGC computing power, data elements, and innovations in industrialization and medical information technology. Specific companies are recommended for investment based on these themes [37][38].

Group 1 - The report indicates that the A-share market is likely to experience a strong oscillation in March, continuing the spring market trend, influenced by policies and external events, with a rising impact of fundamentals after the Two Sessions [7][10] - Historical data shows that in the past 16 years, the Shanghai Composite Index has only risen in March in 7 years, highlighting the volatility of the market during this period [7][10] - The report suggests that March's market performance will be primarily driven by policy expectations, external events, and liquidity conditions, with a potential for positive sentiment following the Two Sessions [7][10] Group 2 - The report emphasizes that sectors related to technology growth and certain cyclical industries are expected to outperform in March, with a focus on small and mid-cap stocks [26][28] - Historical analysis indicates that growth and consumption styles have often led the market in March, driven by policy support and industry trends [28][30] - The report identifies high-growth sectors such as automotive, machinery, and electronics as likely to perform well in March, with a recommendation to accumulate positions in these areas [26][28] Group 3 - The report highlights that March may see a continuation of weak economic recovery, with consumer confidence and retail sales expected to improve due to supportive policies [20][21] - It notes that the profitability of cyclical industries, particularly in metals and chemicals, is likely to rise, contributing to overall earnings growth in the A-share market [21][22] - The report anticipates that the issuance of special bonds may increase in March, further supporting infrastructure investment and economic activity [20][26]