Citic Securities: Liquidity Shock Disturbance, Focus on Performance Resilience and AI Theme in Internet Sector

According to the research report of CITIC Securities, since entering 2026, the Internet sector has been affected by concerns about the changing AI narrative, the return of Internet companies to an investment period and the downward market bias and liquidity tightening caused by geopolitical events, leading to a decrease in valuation to historical lows. Looking ahead to 2026, considering the uncertainty of liquidity disturbances, it is recommended to focus on companies with low valuations, high earnings certainty, stable cash flow, and good shareholder returns; at the same time, the trend of the AI industry is still accelerating, so it is recommended to focus on model iteration capabilities, Agent paradigm innovation, and performance realization for catalyzing the AI narrative.