Everbright Securities January 2026 Industry Investment Logic and Market Sentiment Analysis

Based on the searched Everbright Securities research reports and relevant market analysis materials, I provide you with a systematic and comprehensive analysis of industry investment logic and market sentiment.

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Everbright Securities ranks the Electronics sector as one of the highest-scoring sectors under the growth style in its January 2026 strategy report [1]. The investment logic for the Electronics sector is mainly reflected in the following aspects:

• Surge in AI Computing Power Demand:
  Driven by the booming development of generative artificial intelligence, the computing power industry maintains high prosperity. According to IDC data, China’s intelligent computing power scale will reach 1,037.3 EFLOPS in 2025, and is expected to further increase to 2,781.9 EFLOPS by 2028, with a compound annual growth rate (CAGR) of 46.2% from 2023 to 2028 [2].

• Accelerated Domestic Substitution of AI Chips:
  The market demand for AI chips represented by GPUs, ASICs, and FPGAs is experiencing explosive growth. According to Frost & Sullivan’s forecast, the scale of China’s AI chip market will surge from RMB 142.537 billion in 2024 to RMB 1,336.792 billion by 2029 [2].

• Initiation of Memory Chip Price Hike Cycle:
  Starting from the second half of 2025, the memory sector has entered a price hike cycle due to supply-demand gaps. WSTS predicts that 2026 growth will be mainly driven by memory chips (+39.4% YoY) and logic chips (+32.1% YoY) [3].

• High-End Trend of PCBs:
  AI servers have significantly higher requirements for PCBs in terms of transmission speed, number of layers, density, etc., driving the technical route to focus on high-end categories such as high multi-layer boards and HDI. From 2024 to 2029, the CAGR of AI-related PCBs with 18 layers and above will reach 20.6% [4].

Non-Ferrous Metals is one of the core cyclical sectors recommended by Everbright Securities. Regardless of whether the market style is growth-oriented or defensive, this sector ranks among the top in the five-dimensional sector comparison framework scoring [1].

• Copper: New Pattern Dominated by Supply and Demand:
  On the supply side, medium- to long-term capital expenditure is insufficient, and it is difficult to deliver new projects. Global copper ore supply may see zero or even negative growth in 2026; on the demand side, the expansion of AI computing power amplifies copper demand through the power system, and U.S. grid investment is accelerating. The global copper supply-demand gap is conservatively estimated at approximately 830,000 tons in 2026, the price center is expected to move significantly upward, and the high may exceed $13,000 per ton [5].

• Gold: Cyclical Plus Structural Bull Market:
  Overseas interest rate cuts will continue to drive residents’ cyclical ETF investment demand, and concerns about U.S. dollar credit brought by high U.S. deficit rates will continue to drive central bank gold purchases [5].

• Silver: Medium-Term Upward Trend:
  Supply remains stable overall, with photovoltaic, electrical and electronics sectors as core supports, and global silver inventories are still on a downward trend overall [5].

• Minor Metals such as Rare Earths, Tungsten, and Tin:
  Supply-side reforms and export rush are expected to resonate, and continued supply-side tightening will support new price highs [5].

Power Equipment is a core manufacturing direction recommended by Everbright Securities, and the sector has both technology and cyclical attributes [1].

• 2 Trillion Yuan Market for Grid Equipment:
  In 2025, the total market scale corresponding to domestic grid equipment enterprises exceeded RMB 2 trillion, a year-on-year increase of 15%. The sector’s driving force is undergoing qualitative changes - RMB 823 billion (+9%) within the grid, RMB 580 billion (+19%) outside the grid, and RMB 665 billion (+20%) for overseas markets [6].

• AI-Induced Power Demand as a New Growth Driver:
  AI is accelerating power consumption, North America is facing severe power shortages, and electricity prices are rising rapidly. The power supply architecture of data centers is shifting from terminal loads to hub-level loads that require dedicated 230-500kV substations for support [6].

• High Prosperity of Transformer Exports:
  From January to November 2025, exports of power transformers reached $5.5 billion, a year-on-year increase of 49%. The delivery lead time for power transformers in North America has extended to over 100 weeks, and it is expected that the U.S. will face a 30% supply gap for power transformers in 2025 [6].

• Strong Certainty of High Growth in Energy Storage:
  The global energy storage demand growth rate is expected to exceed 60% in 2026, lithium batteries have entered a new cycle, and the demand growth rate is expected to reach around 30% [7].

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According to Everbright Securities’ January 2026 strategy report Be Patient for the Spring Rally, regarding whether short-term market sentiment can persist around the Spring Festival, the report states:

“From a historical perspective, the January rise and fall of the Shanghai Composite Index in a given year shows a certain ‘trade-off’ relationship with the December rise of the previous year. That is, if the Shanghai Composite Index closed higher in December of the previous year, it usually closes lower in January of the current year, and vice versa. Overall, economic data still faces certain downward pressure in the short term. We believe that the market may need policy injection of a new round of upward momentum in the future, and investors should probably be patient with the index performance in January.” [1]

Everbright Securities also warns of risks:

[1].

Institution	Core View	Judgment Around the Spring Festival
Everbright Securities	Be patient for the spring rally	The market may gradually cool down from mid-January to before the Spring Festival
CITIC Securities	Investors are eager for gains, and the probability of volatile upward movement after the New Year is higher	Enter the market after adjustments; sectors with strong industrial trends still have opportunities
Huatai Securities	Capital and overseas disturbances are short-term emotional shocks that do not affect the upward trend of the spring rally	The spring rally is highly likely to continue
Shenwan Hongyuan	The spring rally still has depth, and the feature of active themes may continue	The spring rally may start slowly
Zheshang Securities	Bullish on the Spring Festival of the Year of the Horse, prepare two strategies for short-term trading	It is still expected to “climb to a higher level” before March

[8][9]

• Continuous Policy Support:
  Policies such as the Notice on Deepening the Market-Oriented Reform of New Energy Grid-Connected Electricity Prices to Promote High-Quality Development of New Energy (Document No. 136) are being continuously implemented [10]
• Medium- to Long-Term Funds Entering the Market:
  Medium- to long-term funds began to gradually enter the market in December 2025, becoming a market stabilizer
• Continuous Inflow of Resident Funds:
  Coupled with the continuous inflow of resident funds
• Expectation of Loose Liquidity:
  A Fed rate cut in January is highly likely, and the domestic central bank may further cut interest rates and reserve requirement ratios [8]
• Equipment Upgrade and Trade-In Policies:
  The first batch of RMB 62.5 billion in ultra-long-term special treasury bond support funds for 2026 has been allocated [8]

• Adjustment Pressure Indicated by Historical Patterns:
  The performance of the Shanghai Composite Index in January shows a “trade-off” relationship with that of December of the previous year
• Downward Pressure on Economic Data:
  Fundamental recovery still takes time
• External Risk Factors:
  Uncertainties such as China-U.S. relations and geopolitics
• Valuation Pullback Risk:
  Expectations for some hot sectors are relatively fully priced; be wary of the “good news fully priced” scenario

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According to Everbright Securities’ five-dimensional sector comparison framework, the following sectors rank among the top in scoring regardless of whether the market style is growth-oriented or defensive [1]:

Sector	Growth Style Ranking	Defensive Style Ranking
Electronics	1st	2nd
Non-Ferrous Metals	4th	3rd
Power Equipment	2nd	4th
Automobiles	5th	5th
Non-Bank Financials	—	1st

1. Short-Term (Before the Spring Festival):
   Be patient, pay attention to possible market adjustment pressure, and avoid excessive chasing of highs
2. Medium-Term (Spring Rally):
   Consumption and growth are expected to become the two main themes; it is recommended to accumulate positions on dips
3. Allocation Directions:
   Electronics (AI computing power chain, domestic substitution of semiconductors), Non-Ferrous Metals (copper, gold), Power Equipment (energy storage, grid exports)

The Electronics, Power Equipment, and Non-Ferrous Metals sectors recommended by Everbright Securities have solid industrial logic support, with AI innovation cycles, supply-demand mismatches, and grid upgrades as core driving forces. Short-term market sentiment is expected to continue supported by continuous policy efforts and loose liquidity, but caution should be exercised regarding the risk of market cooling from mid-January to before the Spring Festival. It is recommended to adopt a strategy of accumulating positions on dips.

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[1] Everbright Securities - January 2026 Strategy View: Be Patient for the Spring Rally (http://www.microbell.com/data/39554c5df61bffab5c8b53a5ae4fb760.html)

[2] Dongxing Securities - 2026 Annual Strategy for Electronics Sector: Tapping into the AI Innovation Cycle (https://pdf.dfcfw.com/pdf/H301_AP202512171802307018_1.pdf)

[3] 2025 Electronic Components Market Analysis and 2026 Trend Outlook (https://news.qq.com/rain/a/20260107A05GVP00)

[4] In 2026, AI Investment Depends on Exceeding Expectations (https://news.pedaily.cn/202601/559533.shtml)

[5] Sinolink Securities - 2026 Annual Strategy for Non-Ferrous Metals Sector: Supply-Demand Restructuring and Resource Repricing (https://finance.sina.com.cn/roll/2026-01-03/doc-inhezuxn8172137.shtml)

[6] 2026 Annual Strategy Report on Power (Grid) Equipment in the Power Equipment and New Energy Sector (https://www.sdyanbao.com/detail/940341)

[7] Core Investment Opportunities in 2026 from the Perspective of New Fortune Best Analysts (https://www.stcn.com/article/detail/3549762.html)

[8] Huajin Securities - Post-Holiday Spring Rally Underway, Focus on Growth Regular Report (https://pdf.dfcfw.com/pdf/H3_AP202601031813835494_1.pdf)

[9] Three Major Institutions Look at the Market Outlook: The Spring Rally Still Has Depth (https://www.21jingji.com/article/20260108/herald/690edf07ba94041bb8af90542c437ae9.html)

[10] Securities Brokers: Two Trading Themes Are Emerging in the Market; Consumption and Growth Lead the Spring Rally (https://news.china.com/socialgd/10000169/20260106/49140669.html)