Open Source Securities Sees Next-Stage Returns Coming More From Tech Rotation

According to Jin10, Open Source Securities said its latest research report expects next-stage returns to come more from internal rotation within technology, as crowded trades have been partly digested, the implied volatility of the STAR 50 Index has declined, and sub-sector opportunities in technology may emerge. The report recommended balanced allocation and highlighted small-cap and micro-cap stocks, sectors with better-than-expected net profit growth such as electronics, defense and military, computers, oil and petrochemicals, non-bank financials, and nonferrous metals, as well as industry rebalancing opportunities in nonferrous metals, basic chemicals, new energy, agriculture, pharmaceuticals, and some midstream manufacturing such as shipbuilding. It also said banks, utilities, and power stocks offer a relatively better risk-return profile in a volatile market, while AI materials, domestic computing power chains, PCB and optical module upstream suppliers in overseas computing power chains, programming agents, enterprise agents, power equipment, electricity, energy metals, and liquid cooling are worth watching.