CICC: Focus on Three Investment Themes in Light of Q3 Earnings Reports

Gelonghui, October 20 — CICC highlighted three investment themes in light of the Q3 earnings reports: The current internal growth expectations remain relatively subdued, while the renewed escalation of US-China tariffs has increased external uncertainties. During this earnings season, investors may focus more on fundamental developments and seek structural highlights from the Q3 reports. Key areas to watch during the earnings disclosure phase include: 1) Sectors with standout Q3 performance, such as gold, TMT sectors benefiting from high AI activity, and non-banking financials. 2) High-growth opportunities less correlated with economic cycles and external risks, including the AI supply chain, as well as white goods, construction machinery, and power grid equipment companies with significant trade exposure to non-US economies and well-established overseas production capacity. 3) Industries that have achieved supply-side consolidation amid a mild recovery environment, including industrial metals, lithium batteries, innovative drugs, commercial vehicles, rail transit equipment, and railways and highways.