Investment Rating - The industry investment rating is "Outperform" [3] Core Views - The report highlights ongoing speculation regarding interest rate cuts, with a focus on gold and copper markets. The expectation for a December rate cut remains uncertain, influenced by mixed employment data and the lack of CPI data due to government shutdowns. Despite fluctuations in market expectations, historical trends suggest that even if a rate cut does not occur, it will not alter the long-term direction for gold [10][11] - The impact of Russia's gold sales is deemed limited, as the country has significantly reduced its gold purchases in 2023 and is primarily selling gold domestically due to sanctions on international transactions. This is expected to have minimal effect on the global market [10] - Copper prices show resilience, remaining stable within the range of $10,600 to $11,000 per ton, supported by strong supply and demand fundamentals. Recent production guidance from Freeport has been adjusted downward, indicating a tighter supply outlook for 2026 [11] Summary by Sections Gold Market - The ongoing debate over interest rate cuts is affecting gold prices, with December cut probabilities fluctuating between 30% and 70%. The report suggests that the direction for gold remains positive regardless of short-term rate cut outcomes [10] - Russia's gold reserves are over 2,300 tons, but their recent sales are not expected to significantly impact international gold prices due to domestic selling constraints [10] Copper Market - Copper prices have shown strong resilience, not following broader market declines. The report notes a recent increase in the operating rate of copper rod production, indicating robust demand [11] - Freeport's production guidance for copper has been revised downwards, suggesting a tighter supply situation moving forward [11] - The report anticipates further upward adjustments in earnings expectations for copper mining stocks due to ongoing fiscal expansion and liquidity conditions [11] Market Performance - The report indicates that the non-ferrous metals index has underperformed the broader market, with a decline of 6.75% recently. Specific sectors such as lithium and gold have shown varying performance, with lithium stocks performing relatively better [12]

Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for its stock performance in the near term [6]. Core Insights - The company is set to launch a metal extraction agent project with an expected production capacity of 10,000 tons per year by the end of the year, which is anticipated to generate significant revenue [1]. - The company is the sole supplier of special carbon black for high-voltage cables in China, with a production capacity of 50,000 tons per year for its first phase project, which has entered trial production [2]. - A second phase project for high-voltage cable shielding materials is under construction, with an expected launch in mid-2026, further expanding the company's product offerings in the high-voltage cable market [3]. Financial Summary - Projected revenues for 2025, 2026, and 2027 are estimated at 30.95 billion, 37.04 billion, and 47.84 billion respectively, with net profits of 3.75 billion, 4.18 billion, and 5.69 billion [4]. - The company’s revenue growth rates are projected at 36.59% for 2025, 19.68% for 2026, and 29.15% for 2027, indicating strong growth potential [4]. - The earnings per share (EPS) is expected to increase from 1.36 in 2024 to 2.63 in 2027, reflecting a positive trend in profitability [4].

1. Report Industry Investment Rating - The report does not provide an industry - wide investment rating. 2. Report's Core View - The target price of Maolai Convertible Bond on the first trading day is expected to be between 133 - 137 yuan, and investors are advised to actively subscribe. The expected first - day conversion premium rate is in the range of 40% - 45% [3][22]. - The expected first - day new - bond subscription winning rate is around 0.0018% - 0.0026% [4][23]. 3. Summary by Related Catalogs 3.1 Maolai Convertible Bond New - Bond Subscription Analysis and Investment Recommendations 3.1.1 Convertible Bond Basic Terms Analysis - The issuance method of Maolai Convertible Bond is priority placement and online issuance, with both the bond and the issuer rated A+. The issuance scale is 563 million yuan, the initial conversion price is 364.43 yuan. As of November 20, 2025, the conversion parity is 94.67 yuan, the pure bond value is 83.19 yuan. The game terms (down - revision, redemption, and put - back terms) are normal. Overall, the bond issuance scale is average, liquidity is average, the rating is weak, and the bond floor protection is acceptable. It is difficult for institutions to include it in their portfolios, but there is no objection to primary participation [2][18]. 3.1.2 New - Bond Initial Listing Price Analysis - The company mainly engages in the R & D, design, manufacturing, and sales of precision optical devices, optical lenses, and optical systems. After deducting issuance fees, 420 million yuan is planned for the ultra - precision optical production and processing project, 120 million yuan for the ultra - precision optical technology R & D center project, and 20 million yuan for working capital. The project is expected to expand the company's mass - production capacity in the ultra - precision optical device and lens fields and increase its market share in the semiconductor ultra - precision optical segment [3][21]. 3.1.3 Convertible Bond New - Bond Subscription Winning Rate Analysis - Assuming the old shareholders' placement ratio is 63% - 74%, the scale available for the market is 146 million - 208 million yuan. Assuming the online effective subscription volume is 8.08 million accounts, the winning rate is expected to be around 0.0018% - 0.0026% [4][23]. 3.2 Underlying Stock Fundamental Analysis 3.2.1 Company's Main Business and Industry Upstream and Downstream - Maolai Optics is a precision optical integrated solution provider, focusing on R & D, design, manufacturing, and sales of precision optical devices, lenses, and systems. The upstream of the optical industry is mainly optical raw material manufacturing, with optical glass having the largest market share (about 70% in a 3 - billion - yuan market in 2024). The company's products are mainly used in industrial - grade precision optics, with downstream industries including semiconductors, life sciences, AR/VR testing, and unmanned driving [24][25]. 3.2.2 Company's Operating Conditions - From 2022 to H1 2025, the company's operating income was 439 million yuan, 458 million yuan, 503 million yuan, and 319 million yuan respectively, with year - on - year growth rates of 32.36%, 4.4%, 9.78%, and 32.26%. The comprehensive gross margin fluctuated slightly, and the net profit margin also had fluctuations. The company's R & D expenses trended upward, while accounts receivable increased, and the accounts receivable turnover rate generally declined. The net profit attributable to the parent company was relatively stable [27][30][31]. 3.2.3 Company's Equity Structure and Major Subsidiaries - As of June 30, 2025, Maolai Holdings is the largest shareholder with a 59.47% stake, and Fan Yi is the second - largest shareholder with a 3.41% stake. The top two shareholders hold a total of 62.88% of the shares, and the top ten shareholders hold 74.89% in total. Fan Yi and Fan Hao are the joint actual controllers, directly and indirectly controlling 66.29% of the shares [4][44]. 3.2.4 Company's Business Characteristics and Advantages - The company has advantages in technology R & D, capital, customer resources, and talent. The precision optical industry has high barriers in technology, capital, customer resources, and talent, which are difficult for new entrants to overcome [47][51][52]. 3.2.5 Allocation of This Round of Raised Funds - The company plans to issue convertible bonds to raise up to 563 million yuan. After deducting issuance fees, 420 million yuan is for the ultra - precision optical production and processing project, 120 million yuan for the ultra - precision optical technology R & D center project, and 20 million yuan for working capital [16][54].

Quantitative Models and Construction - **Model Name**: FIFAA (Flexible Indeterminate Factor Asset Allocation) **Model Construction Idea**: Combines quantitative academic rigor with subjective forward-looking flexibility, using historical data (ex-post) and subjective views (ex-ante) to derive asset-factor exposure and optimize portfolio allocation[2][15][74] **Model Construction Process**: 1. **Factor Selection**: Select tradable, low-correlation macroeconomic factors with clear economic logic. Factors include global equities (economic growth), U.S. Treasuries (interest rate/defensive), credit, inflation protection, and currency protection[15][16][20] 2. **Asset-Factor Mapping**: Use LASSO regression to calculate historical beta exposure, then adjust using subjective views derived from professional investor interviews. Subjective single-factor beta is converted into multi-factor beta using matrix transformations[16][35][39] - Formula for historical beta regression: $$y\,=\,X W\,=\,w_{1}x_{1}+\cdots+w_{n}x_{n}$$[32] Loss function for Ridge regression: $$L(w)\,=\,\sum_{i=1}^{n}(y_{i}-\sum w_{j}x_{i j})+\lambda\sum w_{j}^{2}$$[33] Subjective beta transformation: $$\beta_{f}^{*}\,=\,(1\quad F_{f})\,{\binom{\beta_{f}}{\beta_{!f}}}$$[35] $$\beta=F^{-1}\beta^{*}$$[39] 3. **Factor Exposure Optimization**: Optimize factor exposure based on subjective risk/reward judgment or quantitative methods[17] 4. **Portfolio Optimization**: Maximize expected returns while minimizing factor exposure differences. Constraints include absolute exposure differences ≤ 10% of the larger exposure value[44] - Optimization formula: $$m a x(w^{T}r)$$ $$s.\,t.\,w^{T}I\;=\;1$$ $$a b s(w^{T}\beta_{i}-w^{T}\beta_{j})<0.1*m a x(a b s(w^{T}\beta_{i}),a b s(w^{T}\beta_{j}))$$[44] 5. **Rebalancing**: Allow slight deviations in factor exposure to reduce transaction costs and frequency[18] **Model Evaluation**: Provides higher returns and risk-adjusted performance compared to equal-weighted portfolios. Simplified implementation demonstrates practical feasibility[2][74] Model Backtesting Results - **Default Parameters**: - Historical beta optimization: Annualized return 13.63%, annualized volatility 11.47%, max drawdown -18.97%[49][50] - Adjusted beta optimization: Annualized return 15.43%, annualized volatility 16.46%, max drawdown -33.86%[49][50] - Equal-weight portfolio: Annualized return 10.32%, annualized volatility 11.91%, max drawdown -25.27%[49][50] - **Different Adjustment Coefficients**: - Coefficient range (0.1-0.5): Annualized return varies between 15.16%-15.43%, annualized volatility between 15.73%-16.46%, max drawdown between -30.51% to -37.50%[57][59] - **Different Expected Returns**: - Neutral expected return scenarios (5%, 10%, 15%): Annualized return ranges from 13.63%-15.90%, annualized volatility from 11.47%-16.45%, max drawdown from -18.97% to -36.67%[69][70][71][72] Quantitative Factors and Construction - **Factor Name**: Macroeconomic Factors (Economic Growth, Interest Rate, Inflation) **Factor Construction Idea**: Represent macroeconomic trends using tradable indices to ensure simplicity and reduce calculation errors[15][20][30] **Factor Construction Process**: - Economic growth: Represented by stock indices (e.g., Wind All A Index, S&P 500)[30] - Interest rate: Represented by bond indices (e.g., China Bond Treasury Wealth Index)[30] - Inflation: Composite of commodity indices (e.g., Nanhua Industrial, Agricultural, Energy, and Black Metal indices)[20][30] **Factor Evaluation**: Tradable and low-correlation factors ensure practical applicability and reduce subjective judgment uncertainty[15][16][20] Factor Backtesting Results - **Macroeconomic Factor Correlation Matrix**: - Wind All A vs. S&P 500: 0.15 - Wind All A vs. China Bond Treasury: -0.12 - Wind All A vs. Commodity Composite: 0.30[28][30] - **Factor Performance**: - Economic growth factor (Wind All A): Annualized return 13.63%-15.43% depending on optimization method[49][50][69] - Inflation factor (Commodity Composite): Adjusted beta optimization shows higher returns during inflationary periods[49][50][69]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [5]. Core Insights - The company is transforming into a "digital ecosystem operator" by leveraging its resources in the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on residential and urban renewal projects [1][2]. - A significant acquisition of Wisdom Knight Holdings Limited for HKD 977 million positions the company strategically in the AI and green energy computing sectors [2]. - The traditional business model is now a growth driver, with a successful debt-to-equity conversion plan reducing the interest-bearing debt ratio from 45% to 7% [2]. - The integration of AI computing services and energy management is expected to enhance operational efficiency and profitability [3]. Financial Summary - The company forecasts net profits for 2025, 2026, and 2027 to be CNY 718 million, CNY 579 million, and CNY 789 million, respectively, with growth rates of +139.13%, -19.41%, and +36.41% [3][4]. - Revenue projections show a significant increase from CNY 801.54 million in 2025 to CNY 6,432.54 million in 2027, reflecting a growth rate of 470.13% [4]. - The company’s earnings per share (EPS) is expected to improve from -CNY 3.32 in 2024 to CNY 0.70 in 2027 [4]. Strategic Development - The company’s "urban ecosystem" strategy aims to convert idle factories and land into high-performance computing centers, aligning with its capabilities in urban development [3]. - The acquisition of high-value B-end resources from major cloud service providers and leading AI companies is anticipated to open new growth avenues [3]. - The dual business model of AI computing services and lifecycle management is validated commercially, enhancing the company's resilience and profitability [3].

Investment Rating - The report maintains an "Outperform" rating for the industry [5] Core Insights - The demand for PCB drill bits is expected to continue growing due to the rapid development of AI, which drives the need for high-performance PCBs in various sectors such as communication, computing, consumer electronics, and automotive [2][20] - The industry is characterized by a high concentration of leading companies, with DingTai High-Tech holding a market share of approximately 26.5% in 2023, indicating a trend towards increased market consolidation [3][25] Summary by Sections 1. PCB Drill Bits - PCB drill bits are essential tools used in the PCB drilling process, available in various specifications and primarily made from high-speed steel or hard alloy materials, with diamond tools also being utilized for their superior wear resistance [1][13] - The global production of PCB drill bits reached 2.58 billion units in 2020, with a market value of $590 million, and the domestic market value in China was approximately 2.068 billion yuan [2][20] 2. AI Development Impact - The rapid advancement of AI technology is significantly boosting the demand for PCBs, particularly in AI servers that require complex multilayer boards, thus enhancing the market for PCB drill bits [2][20] - The PCB market is projected to grow as AI-related applications expand, with the high-performance server market expected to see substantial growth [27] 3. Industry Concentration - The PCB drill bit market is concentrated, with the top four companies, including DingTai High-Tech, Jinzhou Precision, and others, holding significant market shares [3][25] - DingTai High-Tech's production capacity is increasing, with plans to expand further, which may enhance its competitive advantage in the market [31]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The target price of Rui Convertible Bond on the first day of listing is expected to be in the range of 129 - 134 yuan, and investors are advised to actively subscribe. The expected conversion premium rate on the first day of listing is in the range of 32% - 37% [3][20]. - The expected first - day lottery winning rate of the convertible bond subscription is around 0.0063% - 0.0075% [21]. 3. Summary According to Relevant Catalogs 3.1. Rui Convertible Bond New Issue Analysis and Investment Recommendations 3.1.1. Analysis of Convertible Bond Basic Terms - The issuance method of Rui Convertible Bond is priority placement and online issuance, with both the bond and the issuer rated AA-. The issuance scale is 1 billion yuan, the initial conversion price is 73.85 yuan, the convertible bond parity on November 14, 2025, is 97.49 yuan, the pure bond value is 92.79 yuan, and the game terms are normal. Overall, the bond issuance scale is average, the liquidity is average, the rating is acceptable, and the bond floor protection is good [2][16]. 3.1.2. Analysis of New Bond Initial Listing Price - The company's main business is the R & D, production, sales, and service of connection system products. The funds raised will be used for the renovation and upgrade projects of high - frequency high - speed connection systems and intelligent energy connection systems, with the rest for working capital. This will help the company maintain its leading position and enhance its competitiveness [19]. - Based on market environment and parity level, the first - day conversion premium rate of Rui Convertible Bond is expected to be in the range of 32% - 37%, corresponding to a first - day target price of 129 - 134 yuan [3][20]. 3.1.3. Analysis of Convertible Bond New Issue Lottery Winning Rate - Assuming the old shareholders' placement ratio is 35% - 45%, the scale of Rui Convertible Bond available to the market is 550 million - 651 million yuan. With an assumed online effective subscription of 8.67 million households, the lottery winning rate is around 0.0063% - 0.0075% [21]. 3.2. Underlying Stock Fundamental Analysis 3.2.1. Company's Main Business and Industry Up - and Downstream Situation - The company is engaged in the R & D, production, sales, and service of connection system products, with a complete product chain and R & D and production capabilities for various connection systems. It has established long - term partnerships with well - known customers [22]. - The upstream suppliers are basic raw material and accessory industries with sufficient supply, which helps stabilize and reduce manufacturing costs. The downstream application fields of connectors are extensive, and the development of downstream industries such as new energy vehicles will drive the connector manufacturing industry [22][23]. 3.2.2. Company's Operating Conditions - The company's revenue has shown a fluctuating upward trend from 2022 to H1 2025, with the new energy sector's revenue accounting for an increasing proportion. The comprehensive gross margin has slightly decreased, and the net profit margin has fluctuated. The company's R & D and other expenses have generally increased, and the accounts receivable situation is relatively good, but the net profit attributable to the parent company has fluctuated greatly [26][29][31]. 3.2.3. Company's Equity Structure and Major Subsidiaries - As of June 30, 2025, the company's equity structure is relatively dispersed. Wu Shijun is the largest shareholder, and Huang Bo is the second - largest shareholder. Wu Shijun is the controlling shareholder and actual controller [45]. 3.2.4. Company's Business Characteristics and Advantages - The company has a complete product chain and offers comprehensive connection system solutions. It has advantages in technology R & D, continuous process innovation, and customer resources [49][52]. 3.2.5. Allocation of This Fund - Raising - The company plans to issue convertible bonds to raise up to 1 billion yuan. After deducting issuance fees, 500 million yuan will be used for the renovation and upgrade project of high - frequency high - speed connection systems, 200 million yuan for the renovation and upgrade project of intelligent energy connection systems, and the remaining 300 million yuan for working capital [14][53]. - The high - frequency high - speed connection system project will add a production capacity of 5.56 million sets, with expected post - tax internal rate of return of 15.94% and a payback period of 7.47 years. The intelligent energy connection system project will add a production capacity of 6.7 million sets, with an expected post - tax internal rate of return of 13.84% and a payback period of 7.69 years [53][54].

Investment Rating - The report maintains an "Outperform" rating for the real estate sector [8] Core Insights - The Hong Kong real estate market is experiencing a significant recovery, driven by the removal of restrictive measures and declining interest rates. The private residential price index has risen for four consecutive months, with a month-on-month increase of 1.32% in September. The rental index has also increased for ten months, reaching a historical high [16][18] - The competitive landscape among Hong Kong developers is becoming increasingly concentrated, with the top four developers accounting for nearly 50% of total sales in 2024. This trend indicates a shift towards a more monopolistic market structure [18] - The report highlights the importance of policy adjustments, such as reducing purchase restrictions and expediting the recovery of idle land, to boost market confidence and stimulate demand [3][20] Summary by Sections Hong Kong Real Estate Market - The market is witnessing a recovery due to the removal of demand management measures and lower transaction costs, which have significantly stimulated homebuyer demand [16][18] - The top four developers in Hong Kong, including Sun Hung Kai Properties and Henderson Land, have seen substantial sales, with Sun Hung Kai achieving sales of HKD 36 billion in 2024, representing 20% of total sales [18] Market Performance - The A-share real estate sector outperformed the broader market, with a weekly increase of 2.70%, surpassing the benchmark by 3.78 percentage points [20][21] - The Hong Kong real estate sector also outperformed, with a weekly increase of 4.99%, exceeding the Hang Seng Index by 3.73 percentage points [33] Credit Market - The issuance of real estate credit bonds totaled CNY 3.62 billion this week, with a net financing amount of -CNY 4.13 billion. Cumulative issuance for the year stands at CNY 374.38 billion, with a net financing amount of -CNY 41.90 billion [20][40] REITs Market - The REITs index increased by 0.82% this week, with the property-type REITs index rising by 0.62% and the operating rights-type REITs index increasing by 1.08% [42][51] - The total transaction volume for REITs this week was CNY 1.353 billion, with property-type REITs accounting for CNY 732 million [56]

Investment Rating - The report maintains an "Outperform" rating for the defense and military industry [7] Core Insights - The report emphasizes the focus on high-quality advancement in national defense and military modernization during the "14th Five-Year Plan" period, with a core goal of enhancing strategic capabilities to safeguard national sovereignty and security [2][39] - The defense and military sector is expected to experience sustained growth due to the release of new orders and the execution of backlog orders from the previous plan, particularly in main battle equipment and emerging domains [3][43][44] Summary by Sections Market Review - The Shenwan Defense and Military Index fell by 2.15% last week, ranking 27th among 31 Shenwan primary industries [15] - As of last Friday's close, the PE (TTM) for the Shenwan Defense and Military sector was 77.31 times, with aerospace equipment at 305.96 times and military electronics at 105.17 times [24] Key Recommendations - Recommended companies include: AVIC Chengfei, Hongdu Aviation, AVIC Shenyang, AVIC Xifei for downstream mainframe manufacturers; Lianchuang Optoelectronics, Guangqi Technology, Zhongjian Technology for military new technologies; and others in missile industry chains and underwater equipment [4] Industry Dynamics - The report highlights the importance of the "15th Five-Year Plan" in driving modernization efforts, with a focus on advanced weaponry and military training [39][41] - The unveiling of the J-20 and drone collaboration showcases advancements in military capabilities, emphasizing the strategic advantages of unmanned systems [3][42] Future Outlook - The report anticipates a positive outlook for the defense and military sector in 2026, driven by the release of new orders and the completion of backlog orders from the previous plan [43] - The international geopolitical landscape is evolving, creating opportunities for the expansion of China's military trade market, with a notable shift towards high-end military equipment [44]

Group 1 - The core viewpoint of the report emphasizes that the commercialization of AI is more important than digital transformation, with the computer industry expected to undergo a revaluation due to the recovery of fundamentals and the acceleration of AI commercialization by 2026 [2][3]. - The report highlights that the overall revenue of the computer sector reached 11,533.72 billion yuan in the first three quarters, representing a year-on-year increase of 6.93%, while the net profit attributable to the parent company increased by 18.45% to 203.14 billion yuan [2][3]. - The report identifies key segments to watch in 2026, including domestic computing power, overseas storage and computing power, cloud computing, IDC, and application chains, particularly focusing on AI applications in various industries [3][4]. Group 2 - Domestic computing power is accelerating, with leading companies like Huawei, Cambricon, and Haiguang Information driving development, supported by increased demand from major clients such as Alibaba and ByteDance [3][4]. - The overseas computing and storage market is evolving towards commercial application, with significant capital expenditures expected to drive performance in 2026, particularly in the CCL upstream sector [3][4]. - The cloud computing sector is witnessing a surge in demand, exemplified by OpenAI's partnership with Amazon, which involves a $38 billion AI cloud computing deal over seven years, indicating a growing need for underlying computing power [3][4]. Group 3 - The IDC sector is expected to see accelerated order releases as major domestic companies continue to invest, with orders anticipated to gradually materialize in 2026 [3][4]. - The application chain, particularly in AI, is projected to experience a dual recovery in valuation and fundamentals, with significant advancements expected in AI applications across healthcare, education, finance, and office scenarios [3][4]. - The report notes that the AI-driven demand for high-bandwidth memory (HBM) and other advanced storage solutions is reshaping the supply-demand structure and industry value [3][4].