CITIC Securities: The TMT and cyclical sectors are showing a high prosperity and high profitability pattern, worth further attention.

CITIC Construction Investment stated that the first quarter report performance disclosure shows that the TMT and cyclical sectors are presenting a high prosperity and high profitability trend, worth paying attention to in the future. In terms of specific sectors, computing power remains the main theme of the first quarter report, and is spreading from core hardware storage chips, optical modules, PCBs to liquid cooling, computing power leasing, power supply, and other "computing power +" links; benefiting from the explosive growth of AI computing center storage demand, the lithium battery industry has ushered in a new wave of structural incremental demand, with representative stocks of its industrial chain showing outstanding performance in the first quarter, and the sector's upward momentum continues to extend to the entire industry chain; the prosperity of the innovative pharmaceutical sector has been confirmed from both the performance side and the trading side, with BD cooperation progressing in a normalized manner and the industry's pace of going global continuing to accelerate.