Investment Rating - The report maintains an "Overweight" rating for the public utility industry, expecting the industry index to outperform the market index by over 10% in the next six months [47]. Core Insights - The public utility index increased by 1.0% over the past two weeks, underperforming the CSI 300 index by 2.2 percentage points, ranking 28th among 31 industries [6][13]. - Year-to-date, the public utility index has decreased by 0.02%, also underperforming the CSI 300 index by 0.9 percentage points, ranking 23rd among 31 industries [6][13]. - Among the sub-sectors, the heating service sector rose by 6.4%, photovoltaic power generation by 5.2%, and electric energy comprehensive services by 3.3% in the last two weeks [15]. - The report highlights significant developments in the southern regional electricity market, marking a key step towards a unified national electricity market [42]. Summary by Sections 1. Market Review - As of July 3, the public utility index has seen a 1.0% increase in the last two weeks, while the CSI 300 index has outperformed it by 2.2 percentage points [6][13]. - The sub-sectors showed mixed performance, with five sectors rising and two declining [15]. 2. Industry Valuation - The public utility sector's price-to-earnings (P/E) ratio is 18.5 times, with the photovoltaic sector at 747.3 times, indicating a significant valuation disparity [20][21]. 3. Industry Data Tracking - The average price of Shenxi Yulin block coal (Q6000) was 596 RMB/ton, up 2.4% from the previous value, while Qinhuangdao port coal (Q5500) averaged 613 RMB/ton, up 0.4% [32][33]. 4. Key Company Announcements - China Nuclear Power reported a 15.65% year-on-year increase in cumulative power generation for the first half of the year [40]. - Longyuan Power announced a 23.58% decrease in power generation for June compared to the previous year [40]. 5. Key Industry News - The southern regional electricity market's continuous settlement trial was launched, aiming to optimize electricity resource allocation across provinces [44]. - The State Council emphasized encouraging private capital participation in water and electricity infrastructure projects [44]. 6. Industry Weekly Perspective - The report suggests focusing on companies like Huadian International and Guodian Power due to the decline in average coal prices [42].

Investment Rating - The report maintains a "Neutral" rating for both the real estate and building materials sectors [2]. Core Views - The real estate market is experiencing a "price for volume" trend, with sales recovery needing further observation. The average price of second-hand residential properties in 100 cities fell by 0.75% month-on-month and 7.26% year-on-year, while new residential properties saw a slight increase of 0.19% month-on-month and 2.59% year-on-year [4][29]. - High-energy cities are showing significant sales increases, with Beijing's second-hand housing transactions up 20.4% and Shenzhen's new residential sales up 24.4% year-on-year [4][30]. - The building materials sector is facing challenges such as weak demand and excess capacity, but there are expectations for price stabilization and improvement in profitability due to industry self-discipline and reduced competition [5][50]. Summary by Sections Real Estate Market Overview - The real estate market is showing signs of recovery in high-energy cities, with a focus on improved housing projects. However, overall housing prices are still slowly declining. The first four months of the year saw a sales recovery, but May's traditional peak season showed a year-on-year decline, indicating that the sustainability of this recovery needs to be monitored [4][30]. - The report suggests focusing on stable central state-owned enterprises and regional leaders in first and second-tier cities, such as Poly Developments, China Merchants Shekou, and others [4][30]. Building Materials Market Overview - The building materials sector is currently facing weak demand and inventory pressures. The China Cement Association has issued guidelines to promote high-quality development and prevent excessive competition, which may support price recovery and improve profitability [5][50]. - The report highlights that leading cement companies are shifting from price competition to value creation through technological innovation and mergers and acquisitions, which could provide growth opportunities [5][50]. - The report recommends focusing on companies with strong competitive advantages and solid fundamentals, such as North New Building Materials and Rabbit Baby [5][51].

Investment Rating - The report maintains a "Buy" rating for Shenghong Technology (300476) [1] Core Views - The company is expected to benefit from the booming AI demand, with significant growth in its high-value products, particularly in the PCB sector, which includes HDI and high-layer boards [3][4][11] - Shenghong Technology has established strong relationships with major international clients, which is expected to drive continued order growth [4][65] - The company is actively expanding its high-end production capacity to meet increasing customer demands, positioning itself favorably in the AI computing market [4][65] Summary by Sections Company Overview - Shenghong Technology has been deeply engaged in the PCB field for many years, achieving a leading market position. It ranks 13th globally among PCB manufacturers and 4th among domestic firms [11] - The company has multiple production bases globally, including in Huizhou, Changsha, and Vietnam, enhancing its ability to meet international customer needs [12] Financial Performance - In Q1 2025, the company reported revenue of 43.12 billion yuan, a year-on-year increase of 80.31%, with net profit growing by 339.22% [17][21] - For 2024, the company expects revenue to exceed 10.73 billion yuan, a 35.31% increase from the previous year, with net profit projected at 1.15 billion yuan [14][73] Product Demand and Market Trends - The demand for HDI products is expected to surge due to their advantages in high-density interconnection and reliability, particularly in AI servers [24][57] - The global AI server market is projected to grow significantly, with IDC estimating a market size of 158.7 billion USD in 2025, reflecting a 26.86% year-on-year increase [50] Competitive Advantages - The company has a strong technological edge, with advanced capabilities in producing high-layer HDI and multi-layer boards, which are critical for AI applications [4][65] - Shenghong Technology has successfully entered the supply chains of major clients like NVIDIA, AMD, and Tesla, which enhances its order visibility and growth potential [65] Future Outlook - The company forecasts EPS of 5.65 yuan and 7.51 yuan for 2025 and 2026, respectively, with corresponding PE ratios of 25 and 19 [3][4][73] - The expansion of production capacity in Vietnam and Thailand is expected to significantly increase the company's market share in the HDI segment by 2029 [66][72]

Investment Rating - The report maintains an "Overweight" rating for the agriculture, forestry, animal husbandry, and fishery industry [43] Core Views - The SW agriculture, forestry, animal husbandry, and fishery industry slightly underperformed the CSI 300 index, with a rise of 2.9% from June 20 to July 3, 2025, lagging behind the index by approximately 0.35 percentage points [12][15] - All sub-sectors recorded positive returns during the same period, with notable increases in the fisheries (11.56%), agricultural product processing (4.39%), animal health (3.63%), feed (2.85%), breeding (2.34%), and planting (2.27%) sectors [15][19] - Approximately 92% of individual stocks in the industry achieved positive returns, indicating a generally favorable market environment [16] Summary by Sections Industry Performance - The SW agriculture, forestry, animal husbandry, and fishery industry index's overall price-to-book (PB) ratio is approximately 2.65 times, reflecting a recovery followed by a slight decline in the past two weeks. The current valuation is at about 58.9% of the historical average since 2006, indicating it remains at a historical low [20][24] Key Industry Data - **Pig Farming**: - The average price of external three-line pigs increased from 14.22 CNY/kg to 15.3 CNY/kg during the reporting period [24] - The number of breeding sows reached 40.42 million, slightly up by 0.1% month-on-month and 1.2% year-on-year, indicating a stable supply near the upper limit of the regulatory range [24] - Profit from self-bred pigs rose to 119.72 CNY/head, while profit from purchased piglets improved to -26.26 CNY/head [29] - **Poultry Farming**: - The average price of broiler chicks was 1.36 CNY/chick, and layer chicks were 3.9 CNY/chick, both showing a slight decline [31] - The average price of broiler chickens was 6.75 CNY/kg, with a profit margin of -2.17 CNY/chick, indicating continued pressure on profitability [34] Industry Insights - The report emphasizes the potential for recovery in pig prices due to supply adjustments, while also highlighting the ongoing challenges in poultry profitability. The feed sector is expected to benefit from reduced raw material cost pressures, and the pet market is projected to expand rapidly, with leading domestic companies likely to experience significant growth [43][44]

Investment Rating - The report maintains a "Market Weight" rating for the non-ferrous metals industry, indicating that the industry index is expected to perform within ±10% of the market index over the next six months [57]. Core Insights - The non-ferrous metals industry has seen a 7.18% increase over the past two weeks, outperforming the CSI 300 index by 3.92 percentage points, ranking third among 31 industries [3][12]. - The energy metals sector led the gains with a 9.83% increase, followed by industrial metals at 9.26%, while precious metals saw a decline of 1.09% [12][19]. - The report highlights a positive outlook for the rare earth industry, driven by recovering export demand and emerging applications in humanoid robotics [51]. Summary by Sections Market Review - As of July 3, 2025, the non-ferrous metals industry has increased by 21.14% year-to-date, outperforming the CSI 300 index by 20.30 percentage points, ranking first among 31 industries [12]. - The report notes that the industrial metals prices have rebounded due to improving global macro sentiment and dovish signals from the Federal Reserve [52][54]. Price Analysis - As of July 2, 2025, LME copper was priced at $10,010 per ton, aluminum at $2,614.50 per ton, and nickel at $15,340 per ton [24][54]. - Precious metals prices included COMEX gold at $3,368.70 per ounce and silver at $36.79 per ounce [36][50]. Industry News - The Ministry of Commerce announced an acceleration in the review of export licenses for rare earths, indicating a commitment to maintaining global supply chain stability [51]. - The Federal Reserve's Chairman Powell stated that the timing of potential interest rate cuts remains uncertain, which may impact gold prices in the short term [50][43]. Company Announcements - Companies such as China Rare Earth (000831), Jinchuan Group (300748), and Xiamen Tungsten (600549) are highlighted for their strong performance and growth potential in the rare earth sector [51][55]. - Zijin Mining (601899) is noted for its significant resource reserves and recent acquisition activities, enhancing its market position [55].

Investment Rating - The report maintains a "Market Weight" rating for the mechanical equipment industry, indicating that the industry is expected to perform within ±10% of the market index over the next six months [43]. Core Insights - The humanoid robot industry is expected to see early industrial applications, with local government policies accelerating the commercialization process. Key investment themes include technological upgrades and advancements in robotics [2][39]. - The engineering machinery sector is projected to maintain growth due to stable infrastructure investment and the acceleration of special bond issuance, despite a negative growth rate in excavator sales in May 2025 [2][39]. - The mechanical equipment sector has shown a bi-weekly increase of 4.30%, outperforming the CSI 300 index by 1.05 percentage points, ranking 17th among 31 industries [12][19]. Market Performance - As of July 3, 2025, the Shenyin Wanguo mechanical equipment sector's PE TTM is 26.77 times, with sub-sectors such as general equipment at 34.10 times and automation equipment at 45.21 times [1][23]. - The general equipment sub-sector had the highest bi-weekly increase of 5.64%, followed by automation equipment at 4.41% and rail transit equipment II at 3.53% [19][22]. Company Recommendations - The report suggests focusing on companies like Huichuan Technology (300124) and Greentech Harmonic (688017) for humanoid robots, and Sany Heavy Industry (600031) and Hengli Hydraulic (601100) for engineering machinery [2][39][41].

Investment Rating - The report maintains an "Overweight" rating for the food and beverage industry, indicating an expectation that the industry index will outperform the market index by more than 10% over the next six months [52]. Core Viewpoints - The report highlights that the liquor sector is stabilizing, with a focus on the performance of various segments during the peak consumption season. It notes that the white liquor market is experiencing a slight decline but may see demand recovery in the second half of the year as economic conditions improve [4][48]. - The report emphasizes the importance of consumer sentiment and seasonal demand, particularly in the beer and soft drink segments, which are expected to benefit from the summer season [4][49]. - Key companies to watch include high-end liquor brands like Kweichow Moutai (600519) and other segments such as seasoning products, dairy, and snacks, which are expected to show strong performance due to favorable market conditions [4][50]. Summary by Sections 1. Market Review - The SW food and beverage industry index rose by 0.33% from June 20 to July 3, 2025, underperforming the CSI 300 index by approximately 2.92 percentage points [11]. - Most sub-sectors underperformed the CSI 300 index, with the baking sector showing the highest increase of 4.01%, while the soft drink sector had the largest decline of 2.46% [13][14]. - Approximately 85% of stocks in the industry recorded positive returns during this period, with notable gainers including Jindawei (+18.71%) and Ximai Food (+15.36%) [15]. 2. Industry Data Tracking 2.1 Liquor Sector - Prices for major liquor brands such as Feitian Moutai and Guojiao 1573 have decreased, indicating market adjustments [21]. 2.2 Seasoning Sector - Prices for raw materials like sugar and glass have shown mixed trends, with sugar prices increasing slightly while soybean meal prices have decreased [24]. 2.3 Beer Sector - Prices for barley and aluminum have increased, while corrugated paper prices have decreased, reflecting changes in production costs [30]. 2.4 Dairy Sector - The average price of fresh milk remained stable, while the pork wholesale price also held steady, indicating a balanced supply-demand situation [35][37]. 3. Industry News - Recent reports indicate a slight decline in the national white liquor price index, with specific categories showing varied performance [39][40]. - The beverage and tea manufacturing sector has seen a revenue increase, suggesting a positive trend in profitability [41]. 4. Company Announcements - Kweichow Moutai has announced share repurchase plans, reflecting confidence in its long-term performance [44]. - Other companies in the snack and soft drink sectors have also made announcements regarding price adjustments and government subsidies, indicating proactive management strategies [46][47].

Investment Rating - The report maintains an "Overweight" rating for the computer industry, indicating an expectation that the industry index will outperform the market index by more than 10% over the next six months [1][33]. Core Insights - Domestic technology giants are aggressively entering the AI healthcare sector, which is expected to accelerate the implementation of AI applications in various scenarios. This trend is likely to enhance the informatization and accessibility of healthcare in China [1][29]. - The AI healthcare market in China is projected to grow significantly, with a forecasted increase from 8.8 billion yuan in 2023 to 315.7 billion yuan by 2033, representing a compound annual growth rate (CAGR) of 43.1% [22]. - The SW computer sector has shown a cumulative increase of 4.48% over the past two weeks, outperforming the CSI 300 index by 1.23 percentage points, and has a year-to-date increase of 6.38%, surpassing the CSI 300 index by 5.54 percentage points [11][21]. Summary by Sections 1. Market Review - The SW computer sector has experienced a cumulative increase of 4.48% from June 20 to July 3, 2025, ranking 15th among 31 sectors. However, it has seen a decline of 2.29% in July, underperforming the CSI 300 index by 3.11 percentage points [11][12]. 2. Valuation Situation - As of July 3, 2025, the SW computer sector's PE TTM (excluding negative values) stands at 51.39 times, which is in the 80.80% percentile for the past five years and 66.29% for the past ten years [21][23]. 3. Industry News - Major developments include Ant Group's launch of the AI healthcare application "AQ," which connects over 5,000 hospitals and nearly 1 million doctors, and the collaboration between Ruijin Hospital and Huawei on the RuiPath pathology model [22][29]. - The Hong Kong government has reiterated its commitment to becoming a global innovation center for digital assets, as outlined in its latest policy declaration [24]. 4. Company Announcements - Newland announced the establishment of its subsidiary NovaPay US Inc. in the U.S. to facilitate cross-border payment services [25]. - The company Zhihui Technology plans to issue H shares and list on the Hong Kong Stock Exchange [26]. 5. Weekly Perspective - The report emphasizes the rapid development of AI healthcare applications and the potential for high demand for AI computing power, suggesting investment opportunities in AI applications and related fields [29][30].

Market Overview - The A-share market experienced a rebound, with the Shanghai Composite Index reaching a new high for the year at 3461.15, up by 0.18% [1] - The Shenzhen Component Index rose by 1.17% to 10534.58, while the ChiNext Index increased by 1.90% to 2164.09 [1][2] - The overall market showed a trend of more stocks rising than falling, with over 3200 stocks increasing in value and more than 60 stocks hitting the daily limit [2] Sector Performance - The top-performing sectors included Electronics (up 1.69%), Electric Equipment (up 1.38%), and Pharmaceutical Biology (up 1.35%) [1][2] - Conversely, sectors such as Coal, Transportation, and Steel showed declines, with Coal down by 1.16% [1][2] IPO Activity - As of June 30, a total of 43 IPOs were accepted by the three major exchanges, with a total of 152 IPOs accepted throughout June [3] - The increase in IPO acceptance is attributed to changes in the policy environment, calendar effects, and ongoing support for technological innovation in the capital market [3] Market Trends and Outlook - The market is currently in a stable upward trend, supported by core heavyweight stocks, with the Shanghai Composite Index maintaining a position above the 5-day moving average [4] - The upcoming earnings season is expected to shift market focus towards fundamental drivers, with stable profit-generating industries likely to receive valuation premiums [4] - Key sectors to watch include TMT (Technology, Media, and Telecommunications), Electric Equipment, Pharmaceuticals, and Finance [4]

Investment Rating - The report maintains an "Overweight" rating for the basic chemical industry, indicating an expectation that the industry index will outperform the market index by over 10% in the next six months [6]. Core Insights - D-Allulose has been officially approved as a new food ingredient in China, which is expected to open up significant domestic market opportunities [1][2]. - D-Allulose is a natural sweetener with important applications in food and health sectors, offering similar sensory characteristics to sucrose while having significantly lower caloric content [5]. - The global market for D-Allulose is projected to grow at a compound annual growth rate (CAGR) of 51.62% from 2019 to 2023, with an expected market size of $204 million in 2024 and $545 million by 2030 [5]. Summary by Sections Event Overview - On July 2, the National Health Commission of China announced the approval of D-Allulose and 19 other new food ingredients, which includes safety assessments for various substances [2]. Market Potential - D-Allulose is primarily used in food and beverages, with 55% of its applications in food and 37% in beverages as of 2020. The market is expected to maintain rapid growth due to its high solubility and blood sugar regulation properties [5]. Supply and Demand - Current production capacity for D-Allulose in China is approximately 30,000 tons, with major producers including Bailong Chuangyuan (15,000 tons), Sanyuan Bio (10,000 tons), and Baolingbao (7,000 tons). All current production is for export, but domestic applications are anticipated to accelerate following the approval [5]. Investment Recommendations - The report suggests focusing on companies such as Bailong Chuangyuan (605016), Sanyuan Bio (301206), and Baolingbao (002286) due to the significant market potential of D-Allulose following its approval [5].