Group 1: Demand and Economic Challenges - Total demand weakness has been emphasized as a significant challenge for China's economy, particularly in the context of insufficient domestic demand[2] - The 2024 Central Economic Work Conference highlighted the importance of addressing demand insufficiency to facilitate industrial upgrading[4] Group 2: Industrial Upgrading Dynamics - Industrial upgrading can be quantitatively described by categorizing manufacturing into high-growth and low-growth groups based on export structure changes[2] - High-growth groups have consistently expanded domestically faster than low-growth groups, but since 2021, their export growth has lagged behind that of low-growth groups[8] - The quality of industrial upgrading is measured by the ratio of export delivery value to operating income, which has shown a declining trend since 2021, indicating a slowdown in upgrading quality[8] Group 3: Profitability and Investment Trends - Before 2021, higher profitability in industries correlated with faster fixed asset investment, but this correlation weakened post-2021[8] - Employee salary growth has also slowed since 2021, reflecting broader economic challenges and demand issues[8] Group 4: Future Outlook - If demand insufficiency is addressed, the main themes of China's economic development will likely revert to industrial upgrading, high-end industrialization, and rising household incomes[4] - The capital market is expected to experience a long-term bull market driven by technological innovation and consumption upgrades once demand issues are resolved[4]

Report Overview - The report presents the top ten convertible bonds for July 2025, along with an analysis of the issuing companies [1][2][11] Company Summaries 1. Zhongte Convertible Bond (Zhongte Zhuanzhai) - Bond Rating: AAA; 6 - month - end closing price: 109.399 yuan; Conversion premium rate: 108.66%; PE - TTM of the underlying stock: 11.5 [5][11] - Company is a global leader in special steel manufacturing with a production capacity of about 20 million tons. It has a complete industrial chain and multiple production bases [11][12] - In 2024, revenue was 109.203 billion yuan (down 4.22% YoY), net profit attributable to shareholders was 5.126 billion yuan (down 10.41% YoY). In Q1 2025, revenue was 26.84 billion yuan (down 5.59% YoY), net profit attributable to shareholders was 1.384 billion yuan (up 1.76% YoY) [11] - Company highlights: largest variety - specification range, leading cost - control, and potential expansion through asset injection [12] 2. Shanlu Convertible Bond (Shanlu Zhuanzhai) - Bond Rating: AAA; 6 - month - end closing price: 113.766 yuan; Conversion premium rate: 50.91%; PE - TTM of the underlying stock: 3.9 [5][20] - Company focuses on road and bridge construction and maintenance, with a comprehensive business system [20] - In 2024, revenue was 71.348 billion yuan (down 2.3% YoY), net profit attributable to shareholders was 2.322 billion yuan (up 1.47% YoY). In Q1 2025, revenue was 9.764 billion yuan (up 1.95% YoY), net profit attributable to shareholders was 0.249 billion yuan (up 1.89% YoY) [20] - Company highlights: state - owned background, potential in debt - resolution, local infrastructure opportunities, and overseas expansion [21] 3. Jintong Convertible Bond (Jintong Zhuanzhai) - Bond Rating: AA+; 6 - month - end closing price: 128.025 yuan; Conversion premium rate: 5.74%; PE - TTM of the underlying stock: 20.7 [5][31] - Company engages in non - ferrous metal processing, providing materials for emerging industries [31] - In 2024, revenue was 124.161 billion yuan (up 12.36% YoY), net profit attributable to shareholders was 0.462 billion yuan (down 12.29% YoY). In Q1 2025, revenue was 27.285 billion yuan (up 9.89% YoY), net profit attributable to shareholders was 0.151 billion yuan (up 38.55% YoY) [31] - Company highlights: rebound in copper processing, growth in rare - earth permanent magnets, and expansion in electromagnetic flat wire business [32] 4. Aima Convertible Bond (Aima Zhuanzhai) - Bond Rating: AA; 6 - month - end closing price: 123.919 yuan; Conversion premium rate: 37.61%; PE - TTM of the underlying stock: 14.1 [5][40] - Company is a leading player in the electric two - wheeler industry [40] - In 2024, revenue was 21.606 billion yuan (up 2.71% YoY), net profit attributable to shareholders was 1.988 billion yuan (up 5.68% YoY). In Q1 2025, revenue was 6.232 billion yuan (up 25.82% YoY), net profit attributable to shareholders was 0.605 billion yuan (up 25.12% YoY) [40] - Company highlights: subsidy - driven demand, new national standard benefits, and potential margin improvement [41] 5. Xingye Convertible Bond (Xingye Zhuanzhai) - Bond Rating: AAA; 6 - month - end closing price: 124.495 yuan; Conversion premium rate: 13.03%; PE - TTM of the underlying stock: 6.4 [5][52] - Company is a large - scale joint - stock commercial bank with multiple financial licenses [52] - In 2024, revenue was 212.226 billion yuan (up 0.66% YoY), net profit attributable to shareholders was 77.205 billion yuan (up 0.12% YoY). In Q1 2025, revenue was 55.683 billion yuan (down 3.58% YoY), net profit attributable to shareholders was 23.796 billion yuan (down 2.22% YoY) [52] - Company highlights: stable growth in net interest income, stable asset quality, and expanding scale [53] 6. Youfa Convertible Bond (Youfa Zhuanzhai) - Bond Rating: AA; 6 - month - end closing price: 126.782 yuan; Conversion premium rate: 6.47%; PE - TTM of the underlying stock: 14.7 [5][64] - Company is the largest welded steel pipe manufacturer in China [64] - In 2024, revenue was 54.822 billion yuan (down 10.01% YoY), net profit attributable to shareholders was 0.425 billion yuan (down 25.46% YoY). In Q1 2025, revenue was 11.402 billion yuan (up 6.06% YoY), net profit attributable to shareholders was 0.133 billion yuan (up 9680.17% YoY) [64] - Company highlights: national layout, overseas market expansion, and high dividend policy [65] 7. Chongyin Convertible Bond (Chongyin Zhuanzhai) - Bond Rating: AAA; 6 - month - end closing price: 125.956 yuan; Conversion premium rate: 12.15%; PE - TTM of the underlying stock: 7.3 [5][77] - Company is a regional joint - stock commercial bank in the upper reaches of the Yangtze River [77] - In 2024, revenue was 13.679 billion yuan (up 3.54% YoY), net profit attributable to shareholders was 5.117 billion yuan (up 3.8% YoY). In Q1 2025, revenue was 3.581 billion yuan (up 5.3% YoY), net profit attributable to shareholders was 1.624 billion yuan (up 5.33% YoY) [77] - Company highlights: regional economic development opportunities, asset scale growth, and strategic risk management [78] 8. Baidian Convertible Bond (Baidian Zhuanzhai) - Bond Rating: AA; 6 - month - end closing price: 131.325 yuan; Conversion premium rate: 2.85%; PE - TTM of the underlying stock: 24.3 [5][88] - Company is a high - tech enterprise in power distribution equipment [88] - In 2024, revenue was 4.985 billion yuan (up 15.12% YoY), net profit attributable to shareholders was 0.196 billion yuan (up 79.05% YoY). In Q1 2025, revenue was 0.976 billion yuan (up 4.68% YoY), net profit attributable to shareholders was 0.037 billion yuan (up 11.47% YoY) [88] - Company highlights: improving profitability and strong order backlog [89] 9. Huayuan Convertible Bond (Huayuan Zhuanzhai) - Bond Rating: AA -; 6 - month - end closing price: 129.19 yuan; Conversion premium rate: 14.24%; PE - TTM of the underlying stock: 26.3 [5][101] - Company focuses on the vitamin D3 industrial chain [101] - In 2024, revenue was 1.243 billion yuan (up 13.58% YoY), net profit attributable to shareholders was 0.309 billion yuan (up 60.76% YoY). In Q1 2025, revenue was 0.326 billion yuan (down 1.18% YoY), net profit attributable to shareholders was 0.097 billion yuan (up 5.5% YoY) [101] - Company highlights: leading products in the industry, product expansion, and new drug approvals [102] 10. Yushui Convertible Bond (Yushui Zhuanzhai) - Bond Rating: AAA; 6 - month - end closing price: 124.888 yuan; Conversion premium rate: 30.54%; PE - TTM of the underlying stock: 26.6 [5][112] - Company is the largest water supply and drainage enterprise in Chongqing [112] - In 2024, revenue was 6.999 billion yuan (down 3.52% YoY), net profit attributable to shareholders was 0.785 billion yuan (down 27.88% YoY). In Q1 2025, revenue was 1.652 billion yuan (up 8.66% YoY), net profit attributable to shareholders was 0.237 billion yuan (up 28.91% YoY) [112] - Company highlights: stable local business, market expansion, and cost control [113]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The target price of Bo 25 Convertible Bonds on the first day of listing is expected to be between 123 - 128 yuan, and investors are advised to actively subscribe [3][19]. - The expected first - day new - bond lottery winning rate is around 0.0168% - 0.0235% [4][20]. 3. Summary According to Relevant Catalogs 3.1 Bo 25 Convertible Bonds New - Bond Analysis and Investment Recommendations 3.1.1 Convertible Bond Basic Terms Analysis - The issuance method of Bo 25 Convertible Bonds is priority placement and online issuance, with a bond and issuer rating of AA. The issuance scale is 2.802 billion yuan, the initial conversion price is 52.42 yuan, the conversion parity on June 30, 2025, is 100.52 yuan, the pure - bond value is 98.88 yuan. The game terms (downward revision, redemption, and put - back terms) are normal. The bond has high issuance scale, good liquidity, acceptable rating, and good bond - floor protection. It is easy for institutions to include it in their portfolios, and there is no objection to primary participation [2][15]. 3.1.2 New - Bond Initial Listing Price Analysis - The company is an auto parts supplier engaged in the R & D, production, and sales of automotive mechanical braking products, intelligent electronic control products, and mechanical steering products. The first - day target price of the convertible bonds is 123 - 128 yuan. Considering the current market environment and parity level, the conversion premium rate on the first day of listing is expected to be in the range of [22%, 27%] [3][18][19]. 3.1.3 Convertible Bond New - Bond Lottery Winning Rate Analysis - Assuming the old - shareholder placement ratio is 33% - 52%, the scale of Bo 25 Convertible Bonds available to the market is 1.345 - 1.877 billion yuan. Assuming 8 million online valid subscription accounts, the lottery winning rate is expected to be around 0.0168% - 0.0235% [4][20]. 3.2 Underlying Stock Fundamental Analysis 3.2.1 Company's Main Business and Industry Upstream - Downstream Situation - The company's main business is the R & D, production, and sales of automotive mechanical braking products, intelligent electronic control products, and mechanical steering products. The main upstream industries are steel and aluminum alloy industries, and the main downstream industries are vehicle manufacturers and their supporting markets. The upstream - downstream relationship between the vehicle and the braking and steering systems is mutually promoting and interdependent [21][22]. 3.2.2 Company's Operating Conditions - From 2022 to Q1 2025, the company's operating income showed an overall upward trend, with year - on - year growth rates of 58.61%, 34.93%, 32.95%, and 41.83% respectively. The comprehensive gross profit margin showed a slight downward trend, and the net profit margin also fluctuated. The company's R & D expenses gradually increased, while the accounts receivable turnover rate showed a downward trend. The net profit attributable to the parent company showed an upward trend, and the profitability showed a fluctuating trend [25][30][35]. 3.2.3 Company's Equity Structure and Major Subsidiaries - As of December 31, 2024, the company's equity structure was relatively concentrated. The top two shareholders held 32.8% of the shares, and the top ten shareholders held 52.16% of the shares. The company has 18 subsidiaries and 3 affiliated companies [43]. 3.2.4 Company's Business Characteristics and Advantages - The company has an independent forward - development ability in the fields of automotive mechanical braking products, intelligent electronic control products, and mechanical steering products. Its competitive advantages include a comprehensive product matrix, strong product competitiveness, continuous product - technology innovation, cost - control advantages through reasonable division of labor and management, and brand advantages through strict product - quality control [46][50][51]. 3.2.5 Allocation of This Fund - Raising - The company plans to issue convertible bonds to raise a total of no more than 2.802 billion yuan. The funds will be invested in projects such as the annual production of 600,000 sets of EMB R & D and industrialization, 1 million sets of wire - controlled chassis braking system industrialization, 1 million sets of EPB construction, high - strength aluminum alloy casting, and the annual production of 7.2 million lightweight parts and 2 million brake calipers in Mexico [13][52].

Investment Rating - The report recommends a "Buy" rating for the company Mao Geping, with a target price positioned in the range of 300-500 RMB for 30ml products, targeting the upper middle class [5]. Core Insights - The Chinese perfume market is projected to reach 26.1 billion RMB in 2023, with a CAGR of 12.82% from 2023 to 2028, indicating strong growth potential [1][45]. - The market penetration of perfumes in China is currently low, with a per capita spending of only 16 RMB in 2023, significantly lower than that of developed countries, suggesting substantial room for growth as consumer awareness and acceptance increase [2][50]. - The competitive landscape is dominated by international brands like Chanel and Dior, while local brands such as "Guanxia" and "Wenxian" are emerging by integrating Eastern cultural elements and modern design [3]. Summary by Sections Market Overview - The Chinese perfume market is experiencing rapid growth, with a CAGR of 15% from 2018 to 2023, significantly outpacing global market growth [40]. - The market share of China in the global perfume market is expected to rise from 3.68% in 2023 to 5.67% by 2028, reflecting the increasing importance of the Chinese market [45]. Market Trends - The shift from material consumption to emotional consumption is driving the growth of the perfume market, with consumers increasingly valuing emotional experiences [4]. - The rise of online shopping and social media platforms is reshaping the perfume purchasing landscape, with online sales expected to grow at a CAGR of 22% from 2023 to 2028 [53][54]. Competitive Landscape - International brands currently dominate the market, but local brands are gaining traction by offering products that resonate with Chinese cultural values [3]. - Mao Geping is expanding its product line into perfumes, leveraging its brand recognition and cultural elements to differentiate itself from international competitors [3]. Future Outlook - The report highlights the potential for significant growth in the perfume sector, particularly in lower-tier cities and through online channels, as consumer preferences evolve [50][54]. - The increasing focus on emotional value and self-expression among consumers is expected to further drive the demand for perfumes in China [4][39].

Investment Rating - The report assigns an "Outperform" rating for the industry [1][5]. Core Insights - The report highlights the continuous catalysis of AI in healthcare, emphasizing the positive outlook for domestic AI healthcare development [2]. - It notes the increasing aging population in China, with 310 million people aged 60 and above by 2024, representing 22% of the total population, which necessitates the efficiency improvements offered by AI healthcare tools [3]. - The report discusses various AI healthcare applications, including multi-modal imaging diagnostics, integration with genomics for precision medicine, advancements in surgical robotics, and the rise of remote healthcare and health management [3]. Summary by Sections AI Healthcare Developments - A series of strategic partnerships and product launches in AI healthcare were reported, including a collaboration between Aier Eye Hospital and Huawei Cloud, and the IPO filing of Weimai, which focuses on AI-enabled medical services [2]. - Ant Group launched a new AI health application, "AQ," connecting over 5,000 hospitals and nearly a million doctors [2]. Market Trends - The report identifies key trends in AI healthcare, such as the shift from B2B to B2C applications, the evolution of AI in medical imaging, and the integration of AI with wearable devices for continuous health monitoring [3]. - The deployment of large AI models in over a hundred top-tier hospitals signifies the comprehensive integration of AI into healthcare settings [3]. Related Companies - The report mentions several companies related to AI healthcare, including Madi Technology, Meinian Health, Xiangyu Medical, Rundat Medical, Weining Health, and Jiahe Meikang, although it notes that most of these companies have not yet been covered by research reports [4].

Investment Rating - The report rates the defense and military industry as "Outperforming the Market" [2] Core Views - The global geopolitical situation remains tense, with ongoing conflicts such as the Russia-Ukraine war and rising risks in the Middle East, leading to an intensified arms race and increased focus on military construction [4][38] - The defense industry is expected to see a recovery in demand as the "14th Five-Year Plan" approaches its final year, with long-term growth certainty supported by clear development goals for 2035 and 2050 [4] - The upcoming military parade on September 3 will showcase both traditional main battle equipment and new combat forces, highlighting advancements in military capabilities [3][40] Summary by Sections Market Review - The defense and military index rose by 6.90% last week, outperforming major indices such as the Shanghai Composite and Shenzhen Component [12] - The current PE (TTM) for the defense and military sector is 79.92 times, with sub-sectors showing varied valuations: aerospace equipment at 143.52 times, aviation equipment at 69.14 times, ground weapons at 174.36 times, naval equipment at 50.76 times, and military electronics at 102.36 times [20][21] Key Recommendations - Recommended companies include: 1. Downstream manufacturers: Hongdu Aviation, AVIC Shenyang Aircraft, AVIC Xi'an Aircraft, and AVIC Helicopter [4] 2. Military new technologies: Lianchuang Optoelectronics, Guangqi Technology, and Zhongjian Technology [4] 3. Underwater equipment: Hailanxin, Yaxing Anchor Chain, and Zhongke Haixun [4] 4. Missile industry chain: Feilihua, Guoke Military Industry, and Zhongbing Hongjian [4] 5. Military titanium materials: Western Superconducting [4] 6. Electronic components: Hongyuan Electronics and Aerospace Electronics [4] 7. Military trade direction: Zhongwu Drone [4] Industry Dynamics - Recent policies related to deep-sea technology indicate significant development potential, particularly for specialized equipment like UUVs, supported by top-level planning [3] - The military trade market is expanding, with recent announcements of procurement from Pakistan for Chinese fighter jets, indicating a growing opportunity in military exports [39]

Investment Rating - The report gives a "Buy" rating for Xiamen Bank, with initial coverage [4][11]. Core Views - Xiamen Bank, established in 1996, has a diversified shareholder structure and has achieved full coverage of branches in Fujian Province by 2015, with total assets of 374.2 billion yuan by the end of 2024 [1][19]. - The bank benefits from a favorable economic environment in Fujian Province, which ranks 8th in GDP and 4th in per capita GDP among 31 provinces, with growth rates exceeding the national average [2][34]. - The bank's loan and deposit scales are steadily growing, with a loan total of 210.58 billion yuan in Q1 2025, showing a year-on-year increase of 0.12% [3][26]. - Investment income has maintained a high growth rate, with a year-on-year increase of 18.14% in Q1 2025 [3][31]. Summary by Sections Company Overview - Xiamen Bank has a unique shareholder structure with significant participation from Taiwanese capital, and its management team has extensive experience in the banking industry [19][20]. - The bank's total assets have shown a compound annual growth rate of 9.36% from 2020 to 2024 [19]. Economic Environment - Fujian Province's GDP reached 5.78 trillion yuan in 2024, with a growth rate of 6.3%, surpassing the national average [34]. - The province's per capita disposable income in Q1 2025 grew by 5.6%, ranking 7th among provinces [34]. Financial Performance - In Q1 2025, the bank's total loans amounted to 210.58 billion yuan, with corporate loans increasing by 5.23% to 142.24 billion yuan [3][26]. - The bank's deposit scale reached 221.38 billion yuan, with a year-on-year growth of 14.35% [3][26]. - The non-performing loan ratio stood at 0.86%, indicating good asset quality [3][31]. Investment Income - The bank achieved investment income of 331 million yuan in Q1 2025, reflecting an 18.14% year-on-year increase [3][31]. - The proportion of fee and commission income also increased, contributing to the bank's overall revenue growth [3][31]. Profit Forecast - The forecasted net profit for Xiamen Bank from 2025 to 2027 is 2.50 billion yuan, 2.51 billion yuan, and 2.62 billion yuan, respectively [4].

Investment Rating - The report assigns a "Buy" rating for the company [4][18]. Core Views - The company is accelerating its diversification transformation in the cardiovascular platform, entering the medical aesthetics field with the approval of its polylactic acid facial filler, which is expected to grow significantly in market size by 2030 [1][4]. - The company holds a 13.17% stake in Lepu Biopharma, which is advancing its PD-1 commercialization and ADC pipeline, contributing to cash flow and potential future growth [1][4]. - The company is a leading provider of comprehensive solutions in the cardiovascular department, with continuous expansion of its product pipeline across devices, pharmaceuticals, and services [4][12]. Financial Summary - Revenue projections for 2025-2027 are estimated at 67.81 billion, 74.63 billion, and 81.41 billion CNY, respectively, with net profit forecasts of 9.27 billion, 11.91 billion, and 13.65 billion CNY [4][5]. - The company is expected to experience a revenue growth rate of 11.11% in 2025, following a decline in 2024 [5][15]. - The projected PE ratios for 2025-2027 are 26X, 21X, and 18X, indicating a potential for valuation improvement [4][5]. Market Position - The company is positioned as a leader in the cardiovascular device market, with a significant share in the medical aesthetics sector and ongoing development in the pharmaceutical space [1][4][12]. - The report highlights the expected growth in the medical aesthetics market, with a compound annual growth rate of approximately 23% from 2024 to 2030 [1][4].

Investment Rating - The report initiates coverage with an "Accumulate" rating for the company [3][5]. Core Views - The company is a globally recognized supplier of port handling equipment and is actively pursuing a transformation strategy that includes GPU chip design and sensor business [1]. - In 2024, the company turned a profit with a revenue of 1.184 billion yuan, a year-on-year increase of 76.48%, and a net profit attributable to shareholders of 123 million yuan [2]. - The company has completed the acquisition of GPU chip design business in October 2024, which will be consolidated into the financial statements starting November 2024 [2]. - A strategic partnership was established with 聚众科技 to enter the high-end sensor market, acquiring a 9.09% stake [3]. Financial Summary - The company achieved a revenue of 1.184 billion yuan in 2024, with a projected revenue of 1.379 billion yuan in 2025, reflecting a growth rate of 16.44% [4]. - The net profit attributable to shareholders is expected to grow from 133 million yuan in 2025 to 201 million yuan in 2027, with corresponding P/E ratios of 54.58X and 36.08X [3][4]. - The company’s gross margin is projected to improve from 12.4% in 2024 to 24.1% in 2027 [4].

Investment Rating - The report initiates coverage with an "Accumulate" rating for the company [4]. Core Views - The company's performance is expected to benefit from the new energy efficiency standards for household refrigerators, which are anticipated to drive demand for VIP boards [2][4]. - The company has shown resilience with a significant year-on-year net profit growth of 137.99% in 2024, despite a revenue decline of 10.87% due to the exclusion of a subsidiary from consolidation [1][4]. Financial Performance Summary - In Q1 2025, the company reported a revenue of 324 million yuan, a year-on-year decrease of 4.59%, while the net profit was 33.56 million yuan, reflecting a growth of 3.69% [1]. - The company achieved a comprehensive gross margin of 21.96% in 2024, with specific margins for clean air materials, energy-efficient materials, and dust-free air conditioning at 36.15%, 13.74%, and 14.57% respectively [3]. - The forecasted revenues for 2025-2027 are projected to be 1.612 billion, 1.827 billion, and 2.140 billion yuan, with respective year-on-year growth rates of 9.25%, 13.34%, and 17.14% [4]. Product and Market Insights - The sales volume of energy-efficient materials is expected to increase by 18.38% in 2024, contributing to 52.57% of total revenue [2]. - The clean air materials segment is projected to generate 537 million yuan in revenue, accounting for 36.39% of total revenue, although it experienced a slight decline of 2.17% [2]. - The dust-free air conditioning segment is anticipated to grow by 39.67% on a comparable basis, excluding the impact of the subsidiary [2]. Profitability and Cost Management - The company’s net profit margin improved to 10.9% in Q1 2025, up by 0.9 percentage points year-on-year, attributed to a decrease in expense ratios [3]. - The comprehensive gross margin for Q1 2025 was reported at 25.1%, an increase of 3.95 percentage points compared to the previous year [3]. Valuation Metrics - The earnings per share (EPS) for 2025 is projected at 0.10 yuan, with corresponding price-to-earnings (PE) ratios of 36.16, 31.58, and 26.83 for the years 2025, 2026, and 2027 respectively [4]. - The company’s net asset return rate is expected to gradually increase from 4.16% in 2025 to 4.45% in 2027 [5].