Energy storage and photovoltaic sectors have fully taken off! The market is expected to maintain a healthy rotation, while attention should be paid to opportunities for extended gains within the technology sector.

Summary: ① The A-share market rose amid fluctuations yesterday, with the Shanghai Composite Index returning to the 4,000-point mark. However, insufficient trading volume led to stock differentiation, concentrating profitability in core leading stocks; ② The new energy sector experienced a comprehensive surge, with strong performances from heavyweight stocks in energy storage and photovoltaics. Institutional research reports indicate that domestic energy storage project tenders have significantly increased year-on-year, with optimistic expectations for the full year; ③ New Easycom’s Q3 earnings showed high year-on-year growth but a decline in revenue quarter-on-quarter. Market feedback today will be critical, as its performance may influence the computing hardware sector. If large-cap technology stocks consolidate, capital might shift towards upstream raw material sectors.

The market trended higher amidst volatility yesterday, with the Shanghai Composite Index once again surpassing the 4,000-point level and the ChiNext Index rising nearly 3%, reaching a new high for the year. Additionally, driven by positive news, the Beijing Stock Exchange 50 Index surged over 8%. The drawback was the limited increase in trading volume, resulting in continued structural differentiation among individual stocks. Profitability remained concentrated among leading core stocks.

The new energy sector, represented by energy storage and photovoltaics, saw a comprehensive surge yesterday. Sungrow Power Supply surged over 15% with a transaction value exceeding RMB 26 billion. Other heavyweight stocks such as LONGi Green Energy Technology, Tongwei Co., Ltd., and JA Solar also hit their daily limit. According to institutional research reports, domestic energy storage projects tendered 255.8 GWh from January to September this year, marking a 97.7% year-on-year increase. Considering that Q4 is typically a peak season for tenders, total tenders for the year are expected to reach at least 361.6 GWh.

The resurgence of the new energy sector can be seen as a relatively healthy rotation within the market. The tech sector, represented by computing hardware, has undergone repeated developments recently, with related core stocks now trading at elevated levels. Capital still needs new leading directions. In this context, sectors such as energy storage and lithium batteries, where fundamentals have shown signs of reversal, are gradually seeing capital inflows and position adjustments. As of yesterday, an increasing number of stocks have shifted back into upward mid-term trends. Investors can continue to seek low-buying opportunities around core stocks during market fluctuations.

Last night, optical module giant New Easycom released its earnings report. Third-quarter revenue stood at RMB 6.068 billion, representing a year-on-year increase of 152.53% but a quarter-on-quarter decline of 4.97%. Net profit reached RMB 2.385 billion, up 205.38% year-on-year and 0.6% quarter-on-quarter. Following this relatively underwhelming earnings report, today’s market reaction remains noteworthy. If the stock can quickly regain support after a low opening, it will generate positive feedback for the entire computing hardware sector. However, if key large-cap tech stocks enter consolidation, capital interest may further extend upstream toward raw material sectors. For instance, recent sub-sectors like drill bits, copper foil, and electronic cloth have seen emerging leaders in catch-up rallies. Under the demonstration effect of capital flows, related extended industries may still hold further potential for exploration.