According to the research report from Galaxy Securities, three primary avenues are worth focusing on for A-share market allocation. The first is technological innovation, self-reliance, controllability, and industrial prosperity trends, with particular emphasis on core links exhibiting high performance prosperity, such as power equipment, energy storage, semiconductors, computing power, and communication equipment. The second area of focus encompasses resource sectors that stand to benefit from the year-on-year turnaround of the Producer Price Index (PPI) and the upward shift in the price center, including non-ferrous metals, basic chemicals, petroleum and petrochemicals, building materials, and steel. The third area highlights themes related to energy and alternative demands amidst geopolitical conflicts, along with defensive sectors such as coal, coal chemical industry, new energy, finance, and public utilities. Additionally, the valuation of the consumer sector is currently at a historically low level, with some sub-sectors offering room for expected recovery. It is, therefore, recommended to pay attention to sectors such as agriculture, forestry, animal husbandry, and fishery, as well as food and beverages, and household appliances.
