Market Strategy - The report suggests a cautious outlook on index movements, emphasizing the potential for mid-cap stocks to uncover real investment opportunities [2][8] - It highlights that while corporate earnings are supported, sustained outperformance is challenging, and market style may shift towards mid-cap blue chips in the consumer, manufacturing, and cyclical sectors [8] Industry Strategy - In the home appliance sector, consumption driven by home scenarios is leading growth, with resilient performance from smart products [3][8] - Data from the "Double 11" shopping festival indicates strong overall performance in the home appliance industry, with significant growth in brands like Midea and Haier, and a notable 12.5% increase in transaction share on Tmall [8] Thematic Strategy - The military industry is highlighted with the commissioning of China's first electromagnetic aircraft carrier, marking a significant advancement in military capabilities and benefiting related enterprises in the new production capacity chain [4][8] - The report identifies specific companies and ETFs related to the defense sector that are expected to benefit from this advancement [8]

Investment Rating - The report maintains a "Positive" outlook on the defense and military industry, indicating a turning point in profitability and growth potential [6][4]. Core Insights - The military industry is expected to enter a new growth cycle driven by the initiation of the "14th Five-Year Plan" equipment construction, military trade, and commercial aerospace advancements [2][3]. - The overall revenue for the military sector increased by 3.07% year-on-year in the first three quarters of 2025, while net profit attributable to shareholders decreased by 9.89%, showing a narrowing decline compared to the previous year [6][11]. - Key segments such as components, sub-systems, and assembly levels have shown signs of recovery, with revenue growth turning positive for the first time since 2021 [18][25]. Summary by Sections 1. Performance Analysis - In Q3 2025, revenue growth rates for components, sub-systems, and assembly levels were 8.30%, 3.37%, and 1.16% respectively, marking a positive shift from negative growth in 2024 [18][19]. - The net profit for the components level increased by 6.94% year-on-year, while sub-systems and assembly levels saw declines of 28.98% and 19.48% respectively [18][23]. 2. Cash Flow Improvement - The cash flow from operations for sub-systems and assembly levels improved, while components faced temporary pressure [40][42]. - The sales collection ratio for assembly levels rose significantly by 23.23 percentage points to 92.50% in Q3 2025, indicating better cash flow management [40][41]. 3. Prepayments and Inventory - Prepayments (including contract liabilities) across all levels showed an upward trend, with assembly levels increasing by 21.85% to 63.345 billion yuan [48][49]. - Inventory levels for components, sub-systems, and assembly increased by 12.57%, 8.81%, and 19.82% respectively, suggesting a positive outlook for future performance [53][54]. 4. Segment Performance - The weaponry segment led revenue growth with a remarkable 27.52% increase, while the aerospace segment grew by 6.17% and the information technology segment by 5.37% [35][36]. - The information technology segment achieved a net profit growth rate of 136.38%, indicating strong performance and future growth potential [36][39].

Investment Rating - The report maintains a "Positive" investment rating for the basic chemical industry, particularly focusing on the phosphate sector due to the anticipated growth in energy storage demand [5]. Core Viewpoints - The report highlights the potential for an upward adjustment in the phosphate industry chain's prosperity expectations, driven by rapid growth in energy storage demand [2][3]. - The phosphate rock segment is identified as having the strongest supply rigidity, making it a key focus for investment opportunities [3][46]. - The report emphasizes that the demand for phosphate rock is expected to increase significantly due to the growth of energy storage applications, particularly lithium iron phosphate batteries [8][12]. Summary by Sections 1. Energy Storage Demand Impact - The growth in energy storage is expected to enhance the demand for phosphate, with global energy storage battery shipments projected to exceed 500 GWh in 2025, a year-on-year increase of approximately 60% [8][12]. - It is estimated that the demand for lithium iron phosphate will lead to a requirement of about 1.2 million tons of lithium iron phosphate and approximately 4.4 million tons of phosphate rock in 2025 [15][39]. 2. Supply Side Dynamics - Concerns about a potential collapse in phosphate market prices due to new supply releases are addressed, with the report suggesting that the supply-demand balance will remain tight in the coming years [17][37]. - The report notes that the pricing power of phosphate rock suppliers is increasing, supported by steady demand from traditional agricultural needs and the rapid growth of new energy materials [25][37]. 3. Investment Recommendations - The report recommends focusing on companies with significant phosphate rock production capacity, such as Xin Yang Feng, Yun Tu Holdings, and Xing Fa Group, which also have lithium iron phosphate production capabilities [3][46]. - It also highlights potential recovery opportunities in the lithium iron phosphate segment due to mismatches between demand growth and supply expansion [3][46].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 76.67 CNY [3][10][6] Core Insights - The company's revenue for the first nine months of 2025 reached 538 million CNY, reflecting a year-over-year growth of 5.0%. However, the net profit attributable to the parent company was a loss of 40.85 million CNY, compared to a profit of 10.77 million CNY in the same period last year [2] - The company has made significant progress in the research and development of its 3D CAD products, which are expected to benefit from the domestic industrial software localization trend [9] - The company is experiencing a slowdown in domestic business, with a decline of 5.4% in the first half of 2025, while overseas business is growing rapidly at 42.2% [9] Financial Performance Summary - Revenue projections for 2025-2027 are 1.017 billion CNY, 1.172 billion CNY, and 1.384 billion CNY, respectively, with year-over-year growth rates of 14.6%, 15.2%, and 18.1% [5] - The net profit attributable to the parent company is forecasted to be 87 million CNY in 2025, 147 million CNY in 2026, and 256 million CNY in 2027, with growth rates of 36.1%, 68.6%, and 74.0% respectively [5] - The company’s gross margin is projected to remain high, at 94.9% in 2025, increasing to 95.5% by 2027 [5] Valuation and Forecast - The DCF valuation model indicates an enterprise value of 11.183 billion CNY and an equity value of 13.002 billion CNY, leading to a per-share value of 76.67 CNY [11][10] - The report highlights a decrease in operating expenses due to workforce optimization, which may lead to further reductions in expense ratios in the future [9]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 16.20 CNY, based on a 20x PE ratio for 2026 [3][5]. Core Insights - The company's core game "Yihuan" is expected to launch in 2026, contributing to revenue growth. The projected net profits for 2025-2027 are 780 million, 1.571 billion, and 1.607 billion CNY respectively [3]. - The company reported a Q3 revenue of 1.73 billion CNY, a year-on-year increase of 31%, primarily driven by the growth of "Zhu Xian World" [8]. - The film and television segment has turned profitable, with a revenue of 920 million CNY in the first three quarters of 2025, a year-on-year increase of 433% [8]. Financial Summary - Revenue for 2023 is projected at 7.791 billion CNY, with a year-on-year growth of 1.6%. For 2024, revenue is expected to decline by 28.5% to 5.570 billion CNY [4]. - The gross margin for Q3 2025 was reported at 64.8%, an increase of 13.1 percentage points year-on-year, attributed to improved margins in the film and television sector [8]. - The net profit attributable to the parent company for Q3 2025 was 160 million CNY, compared to a loss of 210 million CNY in the same period last year [8].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 59.77 CNY based on a 43x PE ratio for 2025 [3][6]. Core Insights - The company's performance continues to improve, with a significant increase in net profit and revenue driven by higher gross margins and effective cost control. The gross margin for the first three quarters was 63.96%, up 2.09 percentage points year-on-year [9]. - The company has launched scenario-based intelligent solutions, expanding its business coverage, including smart monitoring systems for various industrial applications [9]. - The proprietary model PHMGPT has been continuously updated, enhancing product intelligence and significantly reducing manual intervention in diagnostic processes [9]. Financial Performance Summary - Revenue for 2023 is projected at 498 million CNY, with a year-on-year decline of 9.0%. However, revenue is expected to grow by 17.2% in 2024 and continue to increase in subsequent years [5]. - The net profit attributable to the parent company is forecasted to be 63 million CNY in 2023, with a significant year-on-year decrease of 46.0%. The net profit is expected to recover with a growth of 71.5% in 2024 [5]. - The earnings per share (EPS) are projected to be 0.71 CNY in 2023, increasing to 1.39 CNY by 2025 and reaching 2.32 CNY by 2027 [5][10]. Valuation Comparison - The report includes a comparison of the company's valuation with peers, indicating an average PE ratio of 62.40 for comparable companies, with the company being valued at 43x for 2025 [10].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the first half of 2025, driven by policies and the capital environment, the REITs sector outperformed stocks and bonds, with the consumption and affordable rental housing sectors leading the market. Since the third quarter, REITs have weakened and deviated from stocks and bonds. Despite positive signals from policies, the market reaction has been lagging, and the current correction may offer a layout window for long - term funds [5][8]. - Against the backdrop of a long - term decline in the bond market interest rate center and the continuation of the asset shortage logic, public REITs are expected to meet a large amount of low - interest substitution demand. Their characteristics such as certain cash flows from underlying assets, stable high dividends, and strong bond attributes make them attractive to institutions with stable liability ends like wealth management and insurance [5][8]. 3. Summary According to the Directory 3.1 Secondary Market Performance - In October, the public REITs market continued to decline, but the decline was narrower than in September. The CSI REITs (closing) index fell 1.74% in October, while the CSI Convertible Bond index fell 0.11%, and the CSI 1000 fell 0.91%. The Shanghai and Shenzhen 300 remained flat compared to September, and the ChinaBond Composite Index (total value) wealth index rose 0.64% [9]. - In terms of volatility, the REITs index performed poorly in October, with greater volatility than the CSI Convertible Bond index, only stronger than the Shanghai and Shenzhen 300 and the CSI 1000 [9]. - In October, the new infrastructure and municipal infrastructure sectors led in terms of gains, reaching 5.08% and 3.63% respectively. The ecological and environmental protection infrastructure rose slightly by 1.57%, while other sectors declined. The park infrastructure fell 2.94%, the warehousing and logistics infrastructure fell 1.95%, and the water conservancy infrastructure fell 1.67% [11]. - By project attribute, the property - right type declined by 1.54% in October, far more than the 0.15% decline of the franchise - right type. The top 5 performing REITs in October were Southern Runze Technology Data Center REITs, Southern Wanguo Data Center REITs, CICC First Agricultural REITs, Huatai Jiangsu Expressway REITs, and Fuguo First - created Water Service REITs [12]. 3.2 Transaction Situation - In October, the trading heat was similar to that in September. The average daily turnover rate decreased slightly, while the average daily trading volume increased slightly. The average daily trading volume in October was 505 million yuan, a 1.47% increase from September, and the average daily turnover rate was 0.57%, a 4.51% decrease from September [18]. - By project type, the new infrastructure, water conservancy infrastructure, and affordable rental housing were more popular in the market, with average daily turnover rates of 0.99%, 0.85%, and 0.84% respectively. By project attribute, the property - right type had higher trading heat than the franchise - right type [18]. - In October, the large - scale trading volume declined, with the monthly trading volume at 932 million yuan, down from 1.309 billion yuan in the previous period. The discount rate for large - scale transactions was - 0.79% in October, compared to - 0.30% in the previous period [18]. 3.3 REITs Valuation - For franchise - right REITs, since their future cash flow structure is different and the value at maturity is 0, P/FFO, cash distribution rate, and the REITs valuation yield provided by ChinaBond valuation are more appropriate valuation indicators. For property - right REITs, P/NAV, P/FFO, cash distribution rate, and the REITs valuation yield provided by ChinaBond valuation can all be used as valuation indicators [21]. - Among the asset categories of franchise - right REITs, transportation infrastructure and ecological and environmental protection facilities have lower valuations, with P/FFO of 10.51 and 10.79 respectively, and dividend yields of 9.5% and 7.3%. Municipal infrastructure and water conservancy infrastructure have relatively higher valuations, with P/FFO reaching 31.71 and 20.04 respectively, and dividend yields of only 6.2% and 6.3% [22]. - Among the asset categories of property - right REITs, park infrastructure and warehousing and logistics infrastructure have lower valuations, with P/NAV of 1.20 and 1.21 respectively, and dividend yields of 4.8% and 4.0%. Affordable rental housing and consumption infrastructure have relatively higher valuations, with P/NAV reaching 1.55 and 1.45 respectively, and dividend yields of only 2.9% and 4.2% [22]. 3.4 Primary Market Situation - As of October 31, 2025, the number of listed public REITs products in China reached 76, with a total market value of 22.0577 billion yuan, an increase of one product compared to the end of September but a decrease of 403 million yuan in total market value [26]. - Currently, there are 21 REITs funds waiting to be listed, including 12 initial offerings and 9 expansion offerings. CITIC Construction Investment Shenyang International Software Park REITs has been established, and Huaxia Anbo Warehousing REITs has reached the pricing stage. One product was issued in October, but none were listed [26].

Investment Rating - The report maintains a "Buy" rating for the company [5][12]. Core Views - The company is expected to see steady growth in its retail segment, with a projected revenue of 2,486.7 billion yuan for Q3 2025, reflecting a year-over-year increase of 10.5% [8]. - The report anticipates a narrowing of losses in the food delivery segment due to strategic reductions in subsidies and improved operational efficiency [8]. - The target price for the company's stock is set at 190.96 HKD, based on a valuation of 9X PE for retail and new businesses in 2026 [12]. Financial Forecasts - Revenue projections for 2025-2027 are adjusted to 13,312 billion, 14,094 billion, and 14,856 billion yuan, respectively, with net profits expected to be 271 billion, 438 billion, and 525 billion yuan [3][12]. - The company is expected to achieve a gross margin of 15.8% in 2025, with a net profit margin of 1.55% [10]. - The operating profit margin (OPM) for Q3 2025 is projected to be 5.5%, indicating a year-over-year increase of 0.34% [8]. Segment Performance - The retail segment is projected to achieve a revenue of 1,155,005 million yuan in 2025, with a year-over-year growth rate of 14.87% [10]. - The logistics segment is expected to generate revenue of 493.0 billion yuan in Q3 2025, reflecting a year-over-year increase of 11.1% [8]. - New business revenue is forecasted to reach 128.7 billion yuan in Q3 2025, with a significant year-over-year growth of 158.9% [8].

Report Industry Investment Rating No relevant content provided. Core View of the Report - The current active bond has successfully switched to "25 Ultra - long Special Treasury Bond 06" ("Te 6"), and the spread between it and the previous active bond "25 Ultra - long Special Treasury Bond 02" ("Te 2") has fluctuated between 8 - 16bp and is now around 8bp. The spread may decline further, but the compression process may be long and the space is relatively limited [7][10]. - The compression of the spread is restricted by two factors: the rapid increase in the trading activity of "25 Coupon - bearing Treasury Bond 02" and the impact of value - added tax [21][22]. Summary According to the Directory 1. Bond Market Weekly View: Limited Spread Compression Space after Bond Switching - From the perspective of liquidity premium, the spread between the new and old bonds after the bond switch may widen temporarily but will eventually decline. The subsequent issuance of the new bond under the original code has a weak impact on the spread compression. Attention should be paid to the trading activity of "25 Coupon - bearing Treasury Bond 02" [7][20]. - Due to the difference in the start date of issuance and the value - added tax policy, there should be a certain tax spread between Te 6 and Te 2. The actual tax spread may be lower than the theoretical one. The spread compression is restricted by the activity of "25 Coupon - bearing Treasury Bond 02" and value - added tax [21][22]. 2. This Week's Focus in the Fixed - Income Market: Accelerated Issuance of Local Bonds 2.1 Attention to Domestic Economic Data - This week, China will release data such as October's social retail sales and industrial added value, and the US will release data like October's seasonally adjusted CPI, PPI, and the EIA monthly short - term energy outlook report. The Bank of Japan will release the summary of opinions of the Monetary Policy Meeting in October [23][24]. 2.2 This Week's Expected Interest - Rate Bond Issuance is 708.1 billion - The issuance scale of interest - rate bonds this week is expected to be 708.1 billion, including 293 billion of treasury bonds, 285.1 billion of local bonds, and about 130 billion of policy - bank bonds [24][25]. 3. Review and Outlook of Interest - Rate Bonds: The Bond Market Gave Back Some Gains 3.1 Net Withdrawal of 1.57 trillion in Open - Market Operations - At the beginning of the month, there was a large - scale maturity of reverse repurchases, and the overall net withdrawal was 1.57 trillion. The repurchase volume increased seasonally, and the funds rate fluctuated after falling to a low level [29][31]. - The issuance scale of certificates of deposit decreased, and the issuance was mainly in medium - term tenors. The issuance rates of different tenors showed differentiation [37]. 3.2 Bond Market Interest Rates Rose on the Whole - Last week, the bond market gave back some gains. Although the export data declined more than expected, the bond market interest rates rose mainly due to factors such as fund fluctuations and the rise of the equity market. The yields of 10Y treasury bonds and 10Y CDB active bonds increased by 1.4bp each, and the 5Y CDB bond had the largest increase of 5bp [7][49]. 4. High - Frequency Data: Commodity Prices Declined - On the production side, the operating rates were divided. The daily average crude steel output in late October decreased year - on - year. On the demand side, the year - on - year growth rates of passenger car wholesale and retail improved, while the year - on - year growth rate of commercial housing transaction area was still weak. The export index showed differentiation [55]. - In terms of prices, crude oil, copper, and aluminum prices declined, and coal prices were divided. The building materials price index decreased, and the prices of downstream vegetables and pork increased [56].

Investment Rating - The industry investment rating is maintained as "Positive" [5] Core Insights - The successful commissioning of the Simandou project is expected to significantly alter the iron ore supply landscape, with the project having a production capacity of 120 million tons per year and an average grade exceeding 65% [8] - Chinese enterprises hold substantial equity in the Simandou project, enhancing their influence over iron ore pricing and settlement systems, which may lead to a transformation in the pricing dynamics of iron ore [8] - The mid-term outlook suggests an oversupply of iron ore, which could lead to a decline in prices, benefiting the cost structure of the steel industry and potentially increasing profit margins for steel companies [8] Summary by Sections Investment Recommendations and Targets - For the steel sector, it is recommended to focus on companies with optimized product structures and stable profitability, such as Nanjing Steel (600282, Buy), CITIC Special Steel (000708, Buy), and Shandong Steel (600022, Buy) [3] - Other companies mentioned include Hualing Steel (000932, Not Rated) and Sansteel Minguang (002110, Not Rated) [3] Industry Overview - The Simandou iron ore project is poised to disrupt the current dominance of the four major iron ore suppliers, potentially becoming the fifth largest mine globally [8] - The project is expected to enhance the bargaining power of Chinese companies in the iron ore market, with a shift towards using the Dalian Commodity Exchange's iron ore futures prices as a benchmark for trade [8] - The anticipated increase in iron ore production from various global mining projects may lead to a supply surplus, impacting pricing and profitability in the steel sector [8]