Report Industry Investment Rating - Not provided in the given content Core Viewpoints - "One - package debt - resolution policy" has been in place for two years, and debt resolution has entered the second half. The credit risk is expected to remain controllable during the debt - resolution cycle, and more attention should be paid to the creditworthiness development in the post - debt - resolution cycle [2][3] - As of now, the local government's implicit debt resolution work is expected to have passed the halfway mark. By the end of 2025, the overall progress of platform delisting in the country may reach 70 - 80%, and the resolution progress of operating debts is also expected to exceed half by the end of the year [2][3][39] Summary According to the Table of Contents 2024 - present Debt Resolution Actions - Since the "one - package debt - resolution" proposal, a series of policies centered around the "Document 35" have been introduced, including "Document 47", "Document 14", "Document 134", "Document 150", "Document 226", and "Document 99", which have continuously refined and supplemented the debt - resolution requirements [6][7] Implicit Debt Resolution Progress - In 2025, the issuance of replacement bonds continued to advance, with a disclosed issuance plan of 19042.34 billion yuan and an annual progress of 95.21%. The issuance scale of special new special bonds reached 8505.78 billion yuan [2][8] - Since 2024, a total of 63225.88 billion yuan of debt - resolution funds have been implemented, accounting for 51.4% of the implicit debt balance to be resolved before 2028. As of now, Guangdong, Beijing, Shanghai, 22 prefecture - level cities, and 113 counties have announced the achievement of the goal of "zero implicit debt across the region", and Inner Mongolia announced its withdrawal from the key debt - resolution provinces on July 29 [2][9][13] Delisting Progress - As of the end of 2024, 40% of local government financing platforms had exited the financing platform sequence. As Inner Mongolia withdrew from the key provinces, Chongqing, Guangxi, Liaoning and other places are also actively seeking delisting. It is expected that by the end of 2025, the overall delisting progress in the country may reach 70 - 80% [3][15][16] Operating Debt Disposal - By the end of 2024, the scale of operating financial debts of financing platforms was 14.8 trillion yuan, a decrease of about 25% compared with the beginning of 2023. The bond issuance interest rate has significantly decreased, and high - interest debts in bank loans and non - standard debts are mainly reduced through three ways. The proportion of bank loans in the interest - bearing debt structure has increased rapidly, and the non - standard debts have been significantly reduced [20][23][26] - In 2024, the overall interest payment scale of urban investment was 3.05 trillion yuan, with a growth rate of only 2.06%. The comprehensive financing cost of urban investment platforms was 4.72%, a decrease of about 7bp compared with 2023 [29] Industrial Transformation - The ways of establishing industrial platforms include setting up a holding parent company, separating or integrating industrial - attribute subsidiaries, and developing industrial businesses on the original basis of entities with low urban investment attributes [33] - The injected operating assets depend on local resource endowments. Industrial transformation can also be achieved through equity investment and mergers and acquisitions of listed companies [36] Summary - The "one - package debt - resolution policy" continues to advance, and debt resolution has entered the second half. The credit risk is expected to remain controllable during the debt - resolution cycle, and more attention should be paid to the creditworthiness development in the post - debt - resolution cycle [3][41]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company's revenue from gypsum boards is under pressure, but its two wings of business remain stable and are expanding [7][9] - The company reported a revenue of 13.558 billion yuan in the first half of 2025, a year-on-year decrease of 0.29%, and a net profit attributable to shareholders of 1.930 billion yuan, down 12.85% year-on-year [8] - The company is focusing on promoting high-margin products and expanding overseas projects, with significant growth in its paint segment [9] Financial Performance Summary - Revenue and Profit Forecast: - Revenue is projected to grow from 22.426 billion yuan in 2023 to 31.016 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 7.05% [6][10] - Net profit is expected to increase from 3.524 billion yuan in 2023 to 4.748 billion yuan in 2027, with a CAGR of approximately 13.98% [6][10] - Earnings Per Share (EPS) is forecasted to rise from 2.09 yuan in 2023 to 2.81 yuan in 2027 [6][10] - The company’s price-to-earnings (PE) ratio is projected to decrease from 11.20 in 2023 to 9.54 in 2027, indicating potential undervaluation [6][10] Business Segment Performance - Gypsum Board and Keel: - Revenue from gypsum boards was 6.677 billion yuan, down 8.57% year-on-year, with a gross margin of 38.68%, down 0.94 percentage points [7][9] - Revenue from keels was 1.137 billion yuan, down 10.72% year-on-year, with a gross margin of 21.65%, up 0.43 percentage points [7][9] - Waterproofing: - Revenue from waterproofing materials was 1.720 billion yuan, up 0.63% year-on-year, with a gross margin of 16.97%, down 2.34 percentage points [7][9] - Paint: - Revenue from paint was 2.511 billion yuan, up 40.82% year-on-year, with a gross margin of 31.79%, up 0.51 percentage points [7][9] Cost and Margin Analysis - The overall gross margin for the first half of 2025 was 30.35%, down 0.60 percentage points year-on-year, primarily due to rising costs of raw materials [7][9] - The net profit margin decreased by 2.05 percentage points to 14.23% due to increased costs and competitive pressures [7][9] Cash Flow and Financial Health - The net cash flow from operating activities was 9.62 billion yuan, down 52.86% year-on-year, attributed to changes in accounts receivable [7][9] - The company’s liquidity ratios indicate a healthy financial position, with a current ratio of 2.19 and a quick ratio of 1.57 [10]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The report highlights that structural optimization and fair value changes have improved profits, with a continued high dividend payout [8] - The company is experiencing a decline in revenue due to a downturn in the board industry, but is increasing efforts in auxiliary materials and customized home decoration channels [10] - The report projects a steady growth in net profit for the years 2025 to 2027, with expected EPS of 0.78, 0.89, and 1.02 respectively [8][10] Financial Performance Summary - For 1H2025, the company reported revenue of 3.634 billion yuan, a decrease of 7.01% year-on-year, while net profit was 268 million yuan, an increase of 9.71% [8][9] - The gross margin for the first half of 2025 was 18.27%, an increase of 0.80 percentage points, attributed to better sales of high-margin products [10] - The company’s net profit margin increased by 1.12 percentage points to 7.37% due to structural optimization and fair value changes [10] Revenue and Profit Forecast - Revenue forecasts for 2025, 2026, and 2027 are 8.880 billion yuan, 9.562 billion yuan, and 10.344 billion yuan respectively, with growth rates of -3.36%, 7.67%, and 8.18% [7] - The projected net profit for the same years is 651 million yuan, 742 million yuan, and 849 million yuan, with growth rates of 11.26%, 13.94%, and 14.41% [7][10] Dividend Information - The mid-term dividend payout ratio is 86.74%, with a dividend yield of 2.74% [8][9]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company has made significant progress in innovative drug development, with the successful launch of Deutetrabenazine soft capsules, which are approved for treating metastatic castration-resistant prostate cancer (mCRPC) [9] - The company is expected to achieve revenue of 0.8 billion, 3.0 billion, and 5.0 billion RMB in 2025, 2026, and 2027 respectively, indicating a strong growth trajectory [9] Financial Performance - For the first half of 2025, the company reported total revenue of 0.13 million RMB and a net profit of -0.62 billion RMB, showing a reduction in losses compared to the same period last year [9] - Revenue growth rates are projected to be 21,708.1% in 2025, 275.0% in 2026, and 66.7% in 2027 [7][10] - The company is expected to continue incurring losses, with net profits projected at -221 million RMB in 2025, -85 million RMB in 2026, and -9 million RMB in 2027 [7][10] Research and Development Progress - The company has developed HP518, the first oral AR PROTAC drug in clinical trials in China, with clinical trial applications approved by both the NMPA and FDA [9] - HP515, another drug for treating MASH, has also progressed well, with clinical trial applications approved and ongoing patient enrollment [9] Market Performance - The company's stock has shown a performance of -7% over the last 12 months, compared to a 25% increase in the chemical pharmaceutical sector [4]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company achieved a revenue of 8.856 billion yuan in the first half of 2025, with a year-on-year growth of 0.22%, and a net profit attributable to shareholders of 910 million yuan, reflecting a significant year-on-year increase of 791.93% [7] - The company has a strong cost advantage and is enhancing its brand through a comprehensive channel strategy, which has led to a market share increase despite challenging market conditions [7] - The forecast for the company's revenue and net profit for 2025-2027 is 19.994 billion yuan, 12.22 billion yuan; 21.296 billion yuan, 16.27 billion yuan; and 22.568 billion yuan, 19.56 billion yuan respectively, with corresponding PE ratios of 17.6, 13.2, and 11.0 [7] Financial Performance Summary - The company's revenue for 2023A is 18,487 million yuan, with a projected growth rate of 9.9% [6] - The net profit for 2023A is 664 million yuan, with a net profit growth rate of 61.7% [6] - The EPS for 2025E is projected to be 0.98 yuan, with a PE ratio of 17.6 [6] - The company's gross margin for the first half of 2025 is 11.97%, an increase of 2.7 percentage points year-on-year [7] - The company completed the merger with Sun Valley Holdings, adding a capacity of 65 million birds, contributing an additional 85 million yuan to the performance in the first half of 2025 [7]

Core Insights - The report indicates a significant increase in the lithium battery supply chain prices across the board, with specific price movements noted for lithium carbonate and other materials [1][12][24]. Market Review - The Shanghai Composite Index rose by 1.7% this week, while the solid-state battery index increased by 3.96%, outperforming the Shanghai index. Year-to-date, the Shanghai Composite Index is up 10.29%, the solid-state battery index is up 30%, lithium equipment (CITIC) is up 41.91%, and lithium batteries (CITIC) are up 11.47% [7][9]. - The total trading volume for the entire A-share market reached 105,094.59 billion yuan, a week-on-week increase of 23.9%. The trading volume for the solid-state battery index was 2,317.21 billion yuan, up 47.92% week-on-week, while lithium equipment (CITIC) saw a trading volume of 20.66 billion yuan, up 11.1% [7][9]. Price Tracking - As of August 15, the price of lithium carbonate (battery grade Li2CO3 ≥99.5%) was 83,000 yuan per ton, an increase of 13,000 yuan from the previous week. The price of lithium iron phosphate (domestic) was 34,300 yuan per ton, up 170 yuan week-on-week. The price of ternary materials (523) was 114.53 yuan per kilogram, up 3.03 yuan week-on-week. The price of lithium hexafluorophosphate was 55,000 yuan per ton, up 480 yuan week-on-week, and the average price of graphite electrodes was 12,500 yuan per ton, up 250 yuan week-on-week [12][24]. Industry News & Company Announcements - Funeng Technology has achieved large-scale shipments of semi-solid-state batteries, gaining recognition from various clients including major automotive manufacturers [24]. - Nandu Power has signed the world's largest semi-solid-state battery energy storage project, with a total capacity of 2.8 GWh, which is expected to significantly enhance the regional grid's ability to accept renewable energy [26]. - The solid-state battery project by Tailan New Energy has been included in the national key research and development plan, focusing on developing high-energy-density and long-cycle-life battery systems [27]. Demand Tracking for Power Batteries - In the first seven months of 2025, the production of power and other batteries reached 831.1 GWh, a year-on-year increase of 57.5%. The cumulative growth rate has slowed by 2.9 percentage points compared to the previous month. The export volume of power batteries for the same period was 96.4 GWh, up 29.4% year-on-year, with a single-month export volume of 15 GWh, up 54.17% year-on-year [29][30]. - In the first half of 2025, the registration of pure electric passenger vehicles in 30 European countries reached 1.19 million units, a year-on-year increase of 24.9%, while hybrid electric vehicles registered 2.384 million units, up 16.0% year-on-year [33][35].

Group 1 - The defense and military industry index experienced a slight increase of 0.15% over the week from August 9 to August 16, 2025, ranking 21 out of 31 in the Shenwan first-level industry classification [7][12] - Over the past month, the industry index rose by 11.17%, ranking 5 out of 31 [10][14] - In the past year, the index has increased by 46.85%, ranking 11 out of 31 [14][15] Group 2 - The current PE-TTM for the defense and military industry is 90.20, which is at the 77.77 percentile compared to the past ten years, indicating a relatively high valuation level [15][46] - The performance of individual stocks in the defense and military sector showed significant variation, with the top performers being Fenghuo Electronics (38.73%), Feilihua (30.81%), and Aowei Communication (18.03%) [19][29] - Conversely, the worst performers included Qiyi Er (-5.82%), Xice Testing (-6.00%), and Zhongguang Optical (-6.06%) [19][29] Group 3 - Key industry data indicates that the price of sponge titanium is currently 50 RMB/kg, unchanged from the previous week, but up 11.11% from a month ago [30][34] - The LME nickel spot settlement price is currently 14,910 USD/ton, reflecting a 0.17% increase from the previous week but a 7.85% decrease from a year ago [30][34] - The price of domestic acrylonitrile is 8,250 RMB/ton, down 1.20% from the previous week but up 3.13% from a year ago [34][36] Group 4 - Recent industry news includes the successful first tethered ignition test of the Long March 10 rocket and the successful launch of the satellite internet low-orbit 08 group satellites [44][45] - The defense trade market is expected to expand due to escalating geopolitical conflicts, with a focus on military trade, unmanned equipment, commercial aerospace, low-altitude economy, and military AI as key investment themes [46]

Report Title - Futures | Waiting for a Turnaround [1] Report Industry Investment Rating - Not provided Core Views - The 10Y Treasury bond active bond yield may be in the 5th wave of upward movement since May 7th, with the upward target point possibly being the high of 1.75% on July 25th (the high of the 3rd wave). The upward movement of interest rates started on May 7th when the central bank proposed dual cuts at a pre - market press conference, and the equity market reacted most明显, which promoted the adjustment of the bond market [3]. - The weekly technical analysis of Treasury bond futures shows a short - term decline, and attention should be paid to the possible turning points. This week, the 10 - year Treasury bond futures were weak. After the short - term rebound, they fell again. T2509 entered the 5th wave of decline after the equal - tariff situation, and attention should be paid to the possible turning points when the decline structure is complete or broken. The long - end Treasury bonds were significantly adjusted this week, with TL being the weakest [4]. - The data tracking of Treasury bond futures shows that they fell across the board, and it is still necessary to wait for the right time to participate in the long - basis trading strategy. This week, the trading activity of Treasury bond futures rebounded, and the position transfer was in progress. As of August 15th, the positions of the 2509 contracts of Treasury bond futures declined across the board. The CTD net basis and IRR of the 2512 contracts showed differentiation, and considering the recent upward movement of market yields, it is better to wait for a better opportunity to participate in the long - basis trading strategy [5]. Summary by Directory 1. Weekly Technical Analysis 1.1 Pre - trend Review - This week, Treasury bond futures declined significantly, and TL hit a new low first. T2509's short - term rebound ended, and it started to fall on Monday. TL had a larger decline and hit a new low on July 30th on Thursday. Currently, both the daily and weekly lines are below the moving average system, showing short - term weakness [9]. 1.2 Future Market Outlook - T2509 fell again this week and may still be in the process of decline. Attention should be paid to the changes in the trend structure during the decline, and it may bottom out and rebound after the decline ends. T2509 opened lower and moved lower on Monday, confirming that it entered the 5th wave of decline since the equal - tariff situation and may currently be in the 3rd sub - wave of the decline. Wait for the decline structure to be complete or broken for possible turning points [11]. 2. Weekly Tracking of Treasury Bond Futures - This week, Treasury bond futures fell across the board. As of the close on August 15th, the closing prices of the 2509 contracts of 2 - year, 5 - year, 10 - year, and 30 - year Treasury bond futures were 102.346, 105.660, 108.295, and 117.48 yuan respectively, changing by - 0.038, - 0.180, - 0.345, and - 1.84 yuan compared with the previous week [16]. - The trading activity of Treasury bond futures increased significantly this week. The average daily trading volume of the 2509 contracts of Treasury bond futures at all maturities increased to varying degrees compared with last week. The trading volume/position ratio increased at all maturities [16]. - As of August 15th, the positions of the 2509 contracts of Treasury bond futures declined across the board, and investors gradually transferred their positions to the 2512 contracts [16]. - As of August 15th, the CTD net basis of the 2512 contracts of Treasury bond futures at all maturities showed differentiation, with the 5 - year and 30 - year net basis declining and the 2 - year and 10 - year net basis rising. The IRR of the 2512 contracts at all maturities also showed differentiation, with the 2 - year IRR declining and the 5 - year, 10 - year, and 30 - year IRR rising. Considering the recent upward movement of market yields, it is better to wait for a better opportunity to participate in the long - basis trading strategy. The spread between the 09 - 12 contracts increased across the board this week [21].

Report Industry Investment Rating No relevant content provided. Core Views - In a high - valuation environment, some fixed - income investors have a "fear of high prices" due to their sensitivity to potential drawdowns. Institutions that have earned substantial returns from equity - linked assets in the first seven months of this year want to lock in profits while participating in the equity market [6]. - High - convexity convertible bonds can better leverage the "attack when the market rises, defend when the market falls" advantage. A quantitative strategy based on convertible bond convexity has achieved a 19.1% return in 2025 (monthly rebalancing, AA - and above ratings), outperforming the CSI Convertible Bond Index by 4.4% [8]. - The number of convertible bonds with the "attack - and - defend" feature is decreasing. High - gamma convertible bonds are becoming harder to find, and the crowding of the high - convexity strategy may be increasing [12]. - For fixed - income + investors seeking stable returns, high - convexity convertible bonds are a good choice. For investors who can tolerate some volatility, it's not advisable to exit easily. The long - term focus for bond selection is on the technology + AI sectors, and there are still some left - hand opportunities for undervalued leading stocks in related industries [15]. Summary by Directory 1. Which Convertible Bonds are "Attack - and - Defend"? - As of August 15, 2025, the convertible bond's 100 - yuan premium rate reached 29.21%, the highest since 2024 and in the 98% historical percentile since 2021. The median price of convertible bonds is around 132 yuan, and the market may continue to rise [6]. - The high - convexity strategy has shown significant excess returns in 2025. The latest positions of the strategy on August 15, 2025, are provided in the report [8][11]. 2. Market One - Week Performance - As of Friday's close, the Shanghai Composite Index closed at 3696.77, up 1.70% for the week, and the CSI Convertible Bond Index closed at 475.25, up 1.60% for the week. The top - three rising sectors in the stock market were communication (+7.11%), comprehensive finance (+7.07%), and non - bank finance (+6.57%), while banking (-3.22%), steel (-2.00%), and textile and apparel (-1.36%) declined [16]. - No new convertible bonds were listed this week. 357 convertible bonds rose, accounting for 78%. The top - five gainers and losers in terms of price changes and valuation changes are provided in the report [19]. 3. Important Shareholder Convertible Bond Reduction Situations - Companies that announced convertible bond reduction this week include Fuchun Dyeing & Weaving, Zhongbei Communication, Southeast Grid, Tianrun Dairy, and Lingyi Precision Manufacturing [26]. - A list of issuers with high convertible bond holding ratios by major shareholders and their reduction situations is provided [27]. 4. Convertible Bond Issuance Progress - Shenergy Co., Ltd. has a board proposal for a 20 - billion - yuan convertible bond issuance, and Awinic Technology Co., Ltd. has passed the shareholders' meeting for a 19.01 - billion - yuan issuance [28]. 5. Private EB Project Updates There were no progress updates on private EB projects this week [29]. 6. Style & Strategy: Small - Sized, Low - Rated, and Equity - Biased Bonds Outperform - This week, the small - sized, low - rated, and equity - biased style in the convertible bond market outperformed. As of the last trading day of the week, high - rated convertible bonds underperformed low - rated ones by 1.96 pct, large - sized bonds underperformed small - sized ones by 2.41 pct, and equity - biased bonds outperformed debt - biased ones by 5.74 pct [30]. 7. One - Week Convertible Bond Valuation Performance: Convertible Bond Valuations Reach New Highs - The 100 - yuan premium rate of the convertible bond market reached a new high. As of the last trading day of the week, it closed at 29.21%, up 0.84% from the previous week. The median full - caliber convertible bond conversion premium rate rose 0.58 pct to 28.93%, and the market - value - weighted conversion premium rate (excluding banks) decreased 0.93 pct to 46.16% [40]. - For equity - biased convertible bonds, the median conversion premium rate closed at 10.53%, up 0.97 pct from the previous week. For debt - biased convertible bonds, the median pure - debt premium rate closed at 11.76%, up 0.84 pct from the previous week [40]. - In terms of extreme pricing, as of the last trading day of the week, there were 2 convertible bonds below par value, 1 below the bond floor, and 5 with a YTM greater than 3%, with their quantities in the 12.5%, 17.3%, and 11.1% historical percentiles since 2016, respectively [43]. - The median YTM of bank convertible bonds was - 5.54%, 7.33 pct lower than the 3 - year AAA corporate bond yield. The median YTM of AA - to AA+ debt - biased convertible bonds was - 2.16%, 4.15 pct lower than the 3 - year AA corporate bond yield [43]. - The adjusted 100 - yuan premium rate increased, reaching high historical percentiles in the past six months and since 2018 [56].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company has shown a significant increase in its performance, with a total revenue of 2.345 billion yuan in the first half of 2025, representing a year-on-year growth of 27.35%. The net profit attributable to shareholders reached 480 million yuan, up 24.29% year-on-year, while the non-recurring net profit surged by 64.12% to 475 million yuan [7] - The company is undergoing a comprehensive transformation towards AI+, focusing on creating a business model that integrates AI technology with its operations. This includes collaboration with ecosystem partners to develop smart inspection solutions [7] - The traditional business remains stable, and new ventures such as charging piles are expected to open a second growth curve for the company. Revenue projections for 2025-2027 are 4.962 billion, 6.158 billion, and 7.513 billion yuan, with net profits of 905 million, 1.177 billion, and 1.436 billion yuan respectively [7] Financial Performance - The company reported a revenue of 3.251 billion yuan for 2023, with a projected growth rate of 43.5%. By 2025, the revenue is expected to reach 4.962 billion yuan, with a growth rate of 26.2% [6][8] - The net profit for 2023 was 179 million yuan, with a projected increase to 905 million yuan by 2025, reflecting a growth rate of 41.2% [6][8] - The company's gross margin and net margin for the first half of 2025 were 54.42% and 19.38% respectively, indicating stable profitability [7] Business Model and Strategy - The company is leveraging AI technology as a core component of its business strategy, aiming to create a model that combines smart terminals and AI agents for continuous service revenue [7] - The AI+ inspection business is being developed in collaboration with partners, focusing on a comprehensive solution that integrates smart technology with industry-specific applications [7] Market Performance - The company's stock has shown a significant performance compared to the market, with a 12-month market performance of 143% against the CSI 300 index [4]