Qiu Xiang, Chief A-Share Strategist at CITIC Securities, believes that the profit growth of A-share companies in 2026 will follow a pattern of slow growth in the first half and strong growth in the second half. In terms of thematic investment opportunities and sector allocation, four key trends warrant attention: First, the manufacturing sector’s pursuit of global pricing power, with resource and traditional manufacturing industries upgrading to convert market share advantages into pricing power and sustained profit margin growth. Key sectors to watch include non-ferrous metals, chemicals, and new energy; Second, the global expansion of Chinese enterprises has significantly raised the ceiling for market capitalization and profit growth. Key sectors to focus on include machinery, innovative pharmaceuticals, power equipment, and defense; Third, the technology rally continues, with AI (Artificial Intelligence) further expanding its commercial footprint, sustaining technology trends, and amplifying the relative competitive advantages of Chinese companies. Key sectors to watch include semiconductors, computing power, edge hardware, and AI applications; Fourth, opportunities for an unexpected recovery in domestic demand. Although the current performance of domestic demand-exposed stocks is generally lackluster, they harbor significant potential for recovery and valuation flexibility.