Guotai Junan Securities: Value stocks are expected to reach an important turning point. Pay attention to low-crowded sectors such as non-financial, batteries, and electronics with upward profit expectations.

Guotai Haitong released a research report stating that with the sinking of risk-free returns, the reform of the capital market and the transformation of the Chinese economy, there is still a lot of room for the "transformation bull" to reach new heights, and they are optimistic about leading companies in specific sectors. After several years of decline and valuation contraction, value stocks are expected to reach an important turning point. The bank measures that stock prices have not fully reflected the expected upward revision of current earnings expectations from two dimensions: earnings-price matching and earnings-congestion matching. They recommend paying attention to sectors such as non-banking, batteries, electronics, machinery, motorcycles, and commercial vehicles where earnings expectations are expected to rise.