CITIC Securities: AI continues to drive growth, and the electronic industry cycle is expected to continue upwards.

The report from CITIC Securities Research shows that in the first half of the year, consumer electronics and semiconductors continued to rebound. With further catalysis from AI computing power, they have entered a new round of double prosperity resonance, driving performance to continue to rise. In the first half of 2025, a total of 467 companies in the electronics sector had total operating income of 1.8578 trillion yuan, an increase of 19.2% year-on-year; total net profit attributable to the parent company was 85.9 billion yuan, an increase of 29.0% year-on-year. Looking forward to the second half of the year and next year, the peak season for consumer electronics will be combined with the intensive release of new AI products on the end side. The positive guidance of AI-related capital expenditures from domestic and foreign major companies will drive the fundamentals of the electronics industry in a positive direction. With the catalysis of various benefits such as innovation and upgrading, the industry cycle is expected to continue to rise, and the overall allocation value is highlighted.