Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company has shown significant revenue growth, with projected revenues increasing from 5,900 million RMB in 2023 to 11,207 million RMB by 2027, reflecting a compound annual growth rate (CAGR) of 16.5% [7] - The net profit is expected to rise from 333 million RMB in 2023 to 752 million RMB in 2027, with a notable increase of 155.4% in 2025 [7] - The company is focusing on enhancing its brand value through collaborations with popular IPs and cultural initiatives, which have successfully attracted younger consumers [8] - The company's strategy of integrating cultural elements into its products has resulted in impressive sales growth, with a 238% year-on-year increase during specific promotional events [8] - The financial forecasts indicate a strong performance, with net profits projected at 4.9 billion RMB in 2025, 6.5 billion RMB in 2026, and 7.5 billion RMB in 2027, corresponding to price-to-earnings (PE) ratios of 24.4, 18.5, and 16.0 respectively [8] Financial Summary - Revenue is projected to grow from 5,899.85 million RMB in 2023 to 11,206.80 million RMB in 2027, with a revenue growth rate of 33.6% in 2023 and declining to 16.5% by 2027 [9] - The net profit margin is expected to improve, with net profit margins increasing from 5.6% in 2023 to 6.8% in 2027 [9] - The company's return on equity (ROE) is forecasted to rise from 9.2% in 2023 to 14.8% in 2027, indicating improved profitability [9]

Market Performance - As of February 6, 2026, the Shanghai Composite Index fell by 1.27%, the Shenzhen Component Index decreased by 2.11%, and the CSI 300 Index dropped by 1.33%[8] - The market saw a rise in micro-cap stocks despite the overall market adjustment[8] - Year-to-date, the CSI 300 Index has increased by 0.3%, while the CSI 300 enhanced portfolio has risen by 0.5%, yielding an excess return of 0.2%[20] Enhanced Fund Performance - For the CSI 300 enhanced fund, the minimum excess return was -1.39%, the median was 0.24%, and the maximum was 1.33% for the week ending February 6, 2026[12] - The CSI 500 enhanced fund had a minimum excess return of -0.67%, a median of 0.38%, and a maximum of 1.40%[12] - The CSI 1000 enhanced fund reported a minimum excess return of -0.78%, a median of 0.34%, and a maximum of 1.66%[12] Sector Performance - The food and beverage, beauty care, and electric equipment sectors performed well this week with returns of 4.31%, 3.69%, and 2.20% respectively[9] - Conversely, the non-ferrous metals, telecommunications, and electronics sectors underperformed with returns of -8.51%, -6.95%, and -5.23% respectively[9] Risk Considerations - There are risks associated with factor failure, model failure, and market style changes that could impact the effectiveness of the investment strategies employed[4]

Investment Rating - The investment rating for Weichai Power is upgraded to "Buy" [2][7]. Core Views - The power energy sector is driving a dual enhancement in profit valuation for engine companies, with significant revenue and profit growth observed in overseas engine companies' power generation segments [7]. - The company is expected to achieve substantial revenue growth, with projected revenues of RMB 233.71 billion, RMB 249.96 billion, and RMB 269.94 billion for 2025, 2026, and 2027 respectively [6][7]. - The net profit forecast for the company is RMB 12.02 billion, RMB 14.26 billion, and RMB 16.36 billion for the same years, indicating a strong growth trajectory [6][7]. - The company’s earnings per share (EPS) is projected to increase from RMB 1.38 in 2025 to RMB 1.88 in 2027, reflecting a positive outlook on profitability [6][7]. Financial Performance Summary - Revenue growth rates are expected to be 8.4%, 7.0%, and 8.0% for 2025, 2026, and 2027 respectively, following a significant growth of 22.2% in 2023 [6][8]. - The net profit growth rates are forecasted at 5.4%, 18.6%, and 14.8% for the years 2025 to 2027, showcasing a robust profit expansion [6][8]. - The company’s return on equity (ROE) is projected to improve from 12.9% in 2025 to 15.4% in 2027, indicating enhanced efficiency in generating profits from shareholders' equity [6][8].

Core Insights - The report maintains a positive investment rating for the light industry sector, indicating a favorable outlook for potential investments [2][5] - The electronic cigarette industry in China is experiencing significant growth, with the leading brand, RELX, showing a revenue increase of 45.60% year-on-year for the first three quarters of 2025, alongside improvements in gross margin to 29.30% and net margin to 23.00% [5][27] - The industry is undergoing a transformation due to stringent regulations, leading to increased market concentration and providing opportunities for compliant and technologically advanced companies [5][27] Company Overview - The company, RELX Technology, focuses on the research, design, and sales of consumer-grade electronic vapor products, primarily through a comprehensive offline distribution and "brand store+" retail model [8][12] - The management team consists of experienced professionals with backgrounds in fast-moving consumer goods and technology, enhancing the company's strategic direction and operational management [11] Financial Performance - The company's financial data indicates a robust recovery, with a significant increase in net profit for the first three quarters of 2025, reflecting a strong operational performance [16][18] - The sales expense ratio has decreased significantly, contributing to improved profitability metrics [21] Industry Situation - The domestic electronic cigarette market is undergoing consolidation due to strong regulatory measures, with a comprehensive control system established for production, sales, and taxation [27] - Internationally, the market shows regional differentiation, with emerging markets becoming key growth areas while facing high entry barriers in developed regions [28] Competitive Advantages - The company has established a competitive edge through early compliance with regulations, a strong R&D framework supported by multiple laboratories and patents, and a robust supply chain management strategy [29][30] - The dual strategy of deepening domestic compliance while expanding into international markets positions the company favorably against competitors [29]

Group 1: Report Industry Investment Rating - No information about the report industry investment rating is provided in the content [N/A] Group 2: Core Viewpoints - On February 5, 2026, the 30y Treasury bond model's single - day output probability was 10.57%, MA5 was 39.29%, and the model's view changed from oscillating to bullish, the first MA5 bullish signal since the model output an adjustment signal on October 30, 2025. The high yield of the new 30y Treasury bond might affect the model [4][7] - The 3 - year AAA medium - short note model remained bullish, with the bullish signal lasting for 43 trading days since December 8, 2025 [4][7] - On February 4, 2026, the 10 - year Treasury bond model's MA5 changed from oscillating to bullish, ending the oscillating adjustment period since December 2025. A factor of large banks' buying and selling of 7 - 10 - year Treasury bonds was added [4][7] - The 2 - year Treasury bond model fluctuated greatly recently. On February 4, 2026, it showed a single - day output probability turning bullish, and MA5 entered the oscillating range [4][7] - The gold model has been giving bullish signals since October 29, 2025. It entered the oscillating adjustment range on January 28, 2026, and is currently on the edge of the oscillating adjustment range [4][8] - The crude oil model has been generally bullish recently. The retracement on February 2, 2026, led to a marginal decline in the model's output probability, but it remains in the bullish range [4][8] Group 3: Summary by Related Catalog 1 Model Recent New Results Display - 30y Treasury bond model: On February 5, 2026, single - day output probability 10.57%, MA5 39.29%, changed from oscillating to bullish [7] - 3 - year AAA medium - short note model: Remained bullish, bullish signal for 43 trading days since December 8, 2025 [7] - 10 - year Treasury bond model: MA5 changed from oscillating to bullish on February 4, 2026, ending the oscillating adjustment since December 2025 [7] - 2 - year Treasury bond model: Fluctuated greatly, single - day output probability turned bullish on February 4, 2026, MA5 entered the oscillating range [7] - Gold model: Bullish since October 29, 2025, entered oscillating adjustment on January 28, 2026, currently on the edge of oscillating adjustment [8] - Crude oil model: Generally bullish, retracement on February 2, 2026, led to a marginal decline in output probability, still in bullish range [8]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - A recent trade agreement between the US and India is expected to boost compliance oil transportation demand, as India will cease purchasing Russian oil and increase imports from the US [4] - Following the imposition of punitive tariffs by the US, India's imports of Russian oil have decreased significantly, with a total of 26 million tons imported from September 2025 to January 2026, reflecting an 11.6% year-on-year decline [4] - The cessation of Russian oil imports by India is anticipated to further support compliance market freight rates, with potential increases in demand for oil from the Americas [4] - The current high demand in the foreign trade oil transportation sector presents an opportunity for oil transport companies to release performance potential, with expectations of rising freight rates due to upstream expansion and geopolitical events [4] Summary by Sections Recent Market Performance - The shipping and port sector has shown a performance of -8% compared to the Shanghai and Shenzhen 300 index [2] Analyst Information - The report is authored by analyst Zhu Yubo, with contact information provided for further inquiries [3] Related Reports - The report references previous analyses on geopolitical events and oil transportation market opportunities [3]

Inflation Data - January CPI is expected to decrease slightly to 0.4% year-on-year, influenced by rising pork prices and falling vegetable prices[7] - February and March CPI are projected to be 1.4% and 1.0% respectively, driven by seasonal demand for pork and vegetables[3] Producer Price Index (PPI) - January PPI is anticipated to be -1.5% year-on-year, with the factory price index rising by 1.7 percentage points to 50.6%[9] - February and March PPI are expected to be -1.4% and -1.2% respectively, amid stabilizing supply conditions[9] Credit and Financing - January new credit is projected at 5.20 trillion yuan, with February and March expected to be approximately 0.88 trillion and 3.92 trillion yuan respectively[16] - January new social financing is estimated at 738 billion yuan, with February and March expected to be 198 billion and 609 billion yuan respectively[22] Money Supply (M2) - January M2 growth is expected to remain stable at 8.5% year-on-year, with February and March projected at 8.5% and 8.4% respectively[24]

- The report introduces a **style rotation model**, which includes the **value-growth rotation strategy** and the **large-small cap rotation strategy**. The construction idea is based on macroeconomic data, supplemented by market sentiment indicators to depict market risk preferences and crowding levels. The model uses a three-dimensional multi-factor scoring system to build a comprehensive style rotation scoring framework[6][9][14] - The **value-growth rotation strategy** scores higher for the value style, with a comprehensive score of 4 as of January 31, 2026. In January 2025, the strategy also scored 4, with the growth index yielding 5.65% and the value index yielding 2.38%[9][11] - The **large-small cap rotation strategy** scores higher for the small-cap style, with a comprehensive score of 2 as of January 31, 2026. In January 2025, the strategy scored 4, with the CSI 300 index yielding 1.65% and the CSI 1000 index yielding 8.68%[11][13] - The report also introduces an **industry rotation model**, constructed using four dimensions: macroeconomic indicators, mid-level fundamental indicators, micro-level technical indicators, and trading crowding indicators. A total of 10 indicators are combined into a scoring system to provide a comprehensive solution for industry index rotation[6][14][30] - The **macroeconomic indicators** divide industries into five sectors: upstream cyclical, midstream manufacturing, downstream consumption, TMT, and large finance. The scoring system is based on second-order differences in macroeconomic growth and liquidity. As of January 31, 2026, the macroeconomic growth dimension was in the "expansion strengthening/recession easing" stage, and the liquidity dimension was in the "easing intensification/tightening mitigation" stage. The recommendation is to allocate to large finance and midstream manufacturing sectors[18][20] - The **fundamental indicators** include historical prosperity, prosperity changes, and prosperity expectations. As of January 31, 2026, the top five industries ranked by fundamental factors are non-bank finance, non-ferrous metals, electronics, automobiles, and communication, while the bottom five are real estate, construction, coal, petroleum and petrochemicals, and agriculture, forestry, animal husbandry, and fishery[21][22] - The **technical indicators** include index momentum, leading stock momentum, and candlestick patterns. As of January 31, 2026, the top five industries ranked by technical factors are communication, media, basic chemicals, non-ferrous metals, and building materials, while the bottom five are construction, electricity and utilities, transportation, real estate, and home appliances[25][28] - The **crowding indicators** include financing inflows, turnover rate, and transaction proportion. As of January 31, 2026, the industries with the highest crowding levels are defense and military, petroleum and petrochemicals, non-ferrous metals, media, and basic chemicals, while the industries with the lowest crowding levels are textiles and apparel, automobiles, transportation, non-bank finance, and banking[26][29] - The **industry rotation comprehensive scoring system** combines positive scores from macroeconomic, fundamental, and technical dimensions while negatively configuring crowding factors. As of January 31, 2026, the top five industries ranked by comprehensive scores are non-bank finance, communication, non-ferrous metals, machinery, and electronics, while the bottom seven are construction, real estate, coal, home appliances, petroleum and petrochemicals, food and beverages, and electricity and utilities[30][32] - The **industry rotation strategy** has demonstrated stable excess returns historically. Since 2017, the strategy has achieved an annualized return of 18.4%, compared to a benchmark annualized return of 4.7%, resulting in an excess annualized return of 13.7%. The monthly IC average is 12.3%[15][16][17] - The **industry rotation strategy performance metrics** for individual years are as follows: - 2017: Excess return 25.6%, IC 28.0, IR 4.42 - 2018: Excess return 4.5%, IC 5.6, IR 0.69 - 2019: Excess return 13.2%, IC 19.6, IR 3.19 - 2020: Excess return 15.0%, IC 18.1, IR 1.85 - 2021: Excess return 25.7%, IC 10.7, IR 1.11 - 2022: Excess return 11.7%, IC 6.7, IR 0.61 - 2023: Excess return 8.9%, IC 10.1, IR 1.77 - 2024: Excess return 4.6%, IC 4.6, IR 0.40 - 2025: Excess return 15.6%, IC 5.7, IR 0.65 - Overall period: Excess return 13.7%, IC 12.3, IR 1.41[16][17]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The domestic model release period is intensifying, with significant models such as DeepSeek's open-source OCR2, Kimi's K2.5, Alibaba's Qwen3-Max-Thinking, and Baidu's Wenxin 5.0 being launched recently. ByteDance plans to release three new AI models in February, indicating a rapid acceleration in model commercialization [5] - Domestic cloud vendors are maintaining high capital expenditures, with ByteDance planning 160 billion yuan for 2026, up from approximately 150 billion yuan in 2025. Alibaba is also advancing a 3-year plan for 380 billion yuan in AI infrastructure [5] - The rapid iteration of domestic models is expected to significantly increase demand for inference-side computing power, with 2026 being a pivotal year for the deployment of domestic supernodes. Major companies like Huawei and Alibaba are launching new supernode solutions [5] - Investment suggestions highlight that the acceleration of domestic model iterations and improvements in inference-side performance will benefit the domestic computing power industry chain, with a focus on companies like Chipone Technology, Huafeng Technology, and Weicai Technology [5] Summary by Sections Recent Market Performance - The report notes a recent market performance with fluctuations, including a -13% change in one segment and a 67% increase in another [2] Key Company Ratings - Chipone Technology: Market cap of 109.3 billion yuan, with a rating of "Increase" [4] - Huafeng Technology: Market cap of 42.1 billion yuan, with a rating of "Increase" [4] - Weicai Technology: Market cap of 17.9 billion yuan, with no specific rating provided [4]

Core Insights - The real estate sector has shown a decline of 2.1% over the past week, ranking 17th among 29 sectors in the market, while the Shanghai and Shenzhen 300 index and the Wind All A index experienced changes of 0.1% and -1.6% respectively [5][38]. - New home sales in 36 cities reached 1.425 million square meters last week, reflecting a week-on-week increase of 14.2% and a year-on-year increase of 146.5%. However, cumulative sales from January 1 to January 30 totaled 5.398 million square meters, down 30.3% year-on-year [5][10]. - The second-hand housing market saw a total transaction area of 1.706 million square meters across 15 cities last week, with a slight week-on-week decrease of 0.7% but a significant year-on-year increase of 744.4%. Cumulative sales for the same period reached 6.739 million square meters, up 15.8% year-on-year [5][16]. Real Estate Market Conditions - The inventory of new homes in 13 cities stands at 7.7738 million square meters, showing a slight decrease of 0.2% week-on-week and a year-on-year decrease of 3.8%. The average de-stocking period is 23.0 months, which is stable compared to the previous week but has increased by 6.7 months year-on-year [5][24]. - In terms of land transactions, the total area sold in 100 cities from January 26 to February 1 was 1.7955 million square meters, marking a week-on-week increase of 49.2% and a year-on-year increase of 419.7%. The average land price was 979 yuan per square meter, down 28.0% week-on-week and down 74.4% year-on-year [5][32]. Investment Recommendations - For mainland developers, the report recommends companies such as Binjiang Group and China Merchants Shekou in A-shares, and China Overseas Development and Greentown China in Hong Kong stocks, highlighting that sales growth expectations post-market recovery will drive valuation improvements [5][9]. - Light asset operation companies are also recommended, as they are expected to maintain stable fundamentals during the downturn. Suggested companies include Greentown Service for property management and China Resources Mixc Lifestyle for commercial management [5][9]. - For Hong Kong developers, the report suggests focusing on companies like Sun Hung Kai Properties and Henderson Land Development, which are expected to benefit from a recovering residential sales market [5][9]. Financing Conditions - In the realm of domestic credit bonds, real estate companies issued a total of 8 bonds last week, amounting to 4.96 billion yuan, which is a decrease of 42.9% week-on-week but an increase of 346.3% year-on-year. The net financing amount was -3.97 billion yuan due to repayments totaling 8.93 billion yuan [5][36].