Jingu Finance News | Citic Securities stated that the preferred investment sectors in the current technology industry are internet, software, and smart automobiles. Since September 24, a combination of policies has significantly improved market sentiment. The firm believes that the technology industry is a dual-offensive investment sector for the future: 1) with the expectation of policy improvement, the technology sector has strong valuation flexibility; 2) as policies related to data industry gradually take effect, it is expected to boost the performance flexibility and revenue expectations of AI-related companies in the future; 3) the technology sector will benefit in the long term from the productivity improvement driven by AI; the successful experience of the data intelligence industry chain in the USA is worth learning from for China, opening up TAM space; 4) the expectation of Fed rate cuts will help improve liquidity and valuation in global software, internet, and other industries.

The firm is firmly bullish on the entire technology sector as a subsequent target for incremental investment, and recommends focusing on investment opportunities in internet, software, and smart automobiles (autonomous driving + battery industry chain). Leading companies in the sector are currently at historically low valuations, benefiting from advancements in AI and energy technology, combined with policy expectations and improvements in liquidity, they are expected to show sustained valuation flexibility, with medium-term profit improvement also anticipated. Key focuses include Tencent (00700), Alibaba (09988), Kingdee International (00268) and others.