On March 20, the main A-share index closed slightly higher today. By the close, the Shanghai index rose 0.55% to 3079 points, the Shenzhen Stock Exchange Index rose 0.21%, and the GEM index rose 0.12%. More than 3,800 shares rose, and traded 1 trillion yuan throughout the day, breaking through trillion yuan for the 3rd day in a row.

On the market, Kimi's smart assistant began closed testing. Kimi's concept, AiGC concept, and Sora concept rose and stopped; the low-altitude economy sector rebounded, and Rice Information went up and down in 3 days; the education sector strengthened, and MeiJim rose and stopped; AI mobile phone concept stocks rallied, Furong Technology's 3 connected boards; the high-voltage fast charging sector fluctuated upward, and Colin Electric rose and stopped; data elements, mobile game concepts, and film and television concepts rose and stopped; data elements, mobile game concepts, and film and television concepts rose and stopped. In addition, the cultivating diamond sector declined, with power diamonds leading the decline; the steel sector weakened, *ST West Steel fell to a standstill; the brewing industry, robot actuators, and PLC concepts had the highest declines.

Let's take a look specifically:

AI application concepts have exploded. Sora, film and television media, skit games, and Kimi concept stocks have surged across the board, while Huace Film and Television, Zhongguang Tianze, and Ciwen Media have risen and stopped. In terms of news, the domestic AI model Kimi has broken through the ability to write long texts. The dark side of the AI model startup Moon announced that Kimi's smart assistant has made another breakthrough in long context window technology, increasing the length of non-destructive context by an order of magnitude to 2 million words.

Minsheng Securities believes that the continuous iteration of domestic models and the subsequent launch of multi-modal models are expected to empower the application level. Guojin Securities pointed out that Kimi is currently being used effectively in domestic models. The continuous iteration of AI tools and models has made the downstream industry more clear about how to apply AI, and is concerned about the empowerment or transformation that AI tools bring to the film, television, gaming and other industries.

The low-altitude economy continues to be strong, and many stocks such as Rice Information, Yongyue Technology, and Sichuan Jiuzhou have risen and stopped. Cinda Securities pointed out that there is a high degree of compatibility between flying cars and the automobile industry chain. The technical experience and industrial chain advantages accumulated by China in the field of aircraft and new energy vehicles are expected to be transferred to the flying vehicle sector on a large scale. Under the continuous promotion of China's low-altitude airspace management reforms, the time for commercialization of the flying vehicle industry is approaching, focusing on opportunities for industrial chain growth.

Education stocks strengthened, Oriental Fashion and MeiJim rose and stopped, and China Hi-Tech rose more than 7%. CITIC Securities believes that since this year, some education segments have shown a marked reversal trend, such as education and training, examination, etc. At the same time, along with the explosion of AIGC technology, the education technology circuit has also shown great development prospects, and all kinds of players are flourishing. The bank believes that along with positive changes in the education industry, some leading companies are expected to show strong growth potential. It is recommended to focus on: 1) leading education and training companies that are actively transforming and growing again; 2) vocational training companies with high demand and the industry is expected to rebound; 3) higher education companies with historically low valuations, high performance certainty, and are expected to gradually face valuation restoration.

The AI medical concept is active. Berry Gene and Saili Healthcare are on the 3rd board. Runda Healthcare rose more than 9%, while Wanda Information, Hongbo Pharmaceuticals, and Sichuang Healthcare followed suit. According to the news, Novo Nordisk Foundation announced a few days ago that it has reached an agreement with Nvidia to build a superAI computer called “GEFION” for the Nordic country Denmark to lead the country into the AI field. Furthermore, at its annual health event “The Check Up,” Google announced a series of new initiatives to apply artificial intelligence (AI) models to the healthcare industry.

The cultivating diamond sector declined, with Power Diamond and Sifangda falling more than 1%, while Huangge Cyclone and China Machinery Precision Industries followed suit. However, some experts say that since December 2023, the price of top-grade blanks (cultured diamonds) has stabilized to 33 to 35 US dollars/carat, mainly due to the clearance of low-end production capacity and production restrictions by major manufacturers such as Zhongnan Diamond and Yellow River Cyclone (600172). The sales volume of cultivated diamond manufacturers is expected to increase by 30-40% year-on-year in 2024Q1.

The small metal concept had the highest decline. Tin Industry shares fell by more than 4%, Chinatungsten Hi-Tech fell by more than 2%, and Xiamen Tungsten and Luoyang Molybdenum industries followed suit. Guotai Junan released a research report saying that as a strategic resource, the extraction volume of tungsten is controlled by national indicators. The first batch of mining indicators was lowered in 2024. Against the backdrop of declining mine grade and stricter environmental protection, the supply of tungsten ore was limited. Meanwhile, on the demand side, against the backdrop of rising prosperity in the photovoltaic industry and gradual recovery in the manufacturing industry, demand for tungsten products may be boosted. Tungsten prices are running strongly, and industry companies are expected to benefit.

In terms of individual stocks, Mango Supermedia closed up 6.36% to 26.58 yuan. The stock price hit a new high since December 22, 2023. According to the news, “With Fengxing” starring Zhao Liying and Lin Gengxin began airing on Tencent Video, Mango TV and other platforms on March 18, and received a lot of attention. Judging from the fact that it was broadcast on the evening of the 18th, “With the Phoenix” has broken many records: it is the highest number of reservations for Mango TV series, Tencent video series, Tencent simulcast series, Tencent's broadcast series, and mainland drama history. According to other data, the popularity of “With the Phoenix” broke 30,000 in 25 hours and 39 minutes, setting Tencent Video's record for the fastest hit club series.

Today, Northbound Capital made net purchases of 5.568 billion yuan throughout the day, of which Shanghai Stock Connect made net purchases of 2.56 billion yuan and Shenzhen Stock Connect made net purchases of 3.09 billion yuan.

Looking ahead to the future market, Huajin Securities said that there is a high probability that A-share profits will rise in the second quarter. Judging from historical experience, three types of industries have high profit flexibility. One is the industry with upward industrial trends, such as the TMT, electronics, automobile, and pharmaceutical industries driven by artificial intelligence and new quality productivity; the second is the optional consumer industry, represented by the home appliance, automobile, food and beverage industry; and the third is the cycle industry, represented by agriculture, forestry, animal husbandry and fishing, non-ferrous metals, petroleum and petrochemical industries.