Group 1: Company Overview - The report highlights Northern Huachuang (002371) as a leading domestic semiconductor equipment platform enterprise, benefiting significantly from the wave of domestic substitution [6][7] - The company has a diverse product matrix and focuses on core processes in integrated circuit manufacturing, including etching and thin film deposition, while expanding into ion implantation and coating development equipment [6][7] - In the first half of 2025, the company achieved revenue of 16.142 billion yuan, a year-on-year increase of 29.51%, and a net profit of 3.208 billion yuan, up 14.97% year-on-year [6] Group 2: Market Demand and Growth - The demand for semiconductor equipment is surging due to the expansion of domestic wafer production capacity and advancements in process technology, with China's 12-inch wafer capacity expected to reach 10.1 million pieces per month by 2025 [7][8] - The report notes that the global semiconductor equipment market is expected to see strong growth driven by the expansion plans of wafer foundries and the transition to advanced process nodes [7][8] - Northern Huachuang's semiconductor equipment revenue is projected to reach 26.578 billion yuan in 2024, accounting for approximately 90% of total revenue [8] Group 3: Financial Projections - The report provides financial forecasts for Northern Huachuang, estimating revenues of 39.283 billion yuan, 49.665 billion yuan, and 61.156 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 31.65%, 26.43%, and 23.14% [10] - The net profit for the same period is expected to be 7.530 billion yuan, 9.676 billion yuan, and 11.863 billion yuan, with growth rates of 33.95%, 28.50%, and 22.61% [10] Group 4: Industry Trends - The report discusses the impact of government policies aimed at maintaining market price order and preventing excessive competition in the basic chemical industry, which may influence pricing strategies across sectors [11][12] - It also highlights the recovery in import and export growth rates, with September 2025 exports increasing by 8.3% year-on-year, supported by strong demand from the EU, ASEAN, and Belt and Road countries [15][16]

[Table_Reportdate] 2025年10月15日 标配 行 业 月 报 [证券分析师 Table_Authors] 方霁 S0630523060001 fangji@longone.com.cn 联系人 董经纬 djwei@longone.com.cn [table_stockTrend] -35% -27% -18% -9% 0% 8% 17% 23-08 23-11 24-02 24-05 申万行业指数:电子(0727) 沪深300 [相关研究 table_product] 1. 华为折叠手机市场，存储需求推 动闪迪NAND闪存涨价超10% —— 电子行业周报（2025/9/1-2025/9/7） 2. 商务部启动美国进口模拟芯片反 倾销调查，苹果发布iPhone17系列新 机——电子行业周报（20250908- 20250914） 3. 华为昇腾AI芯片及鲲鹏CPU路线 图，英伟达拟50亿美元投资英特尔 ——电子行业周报（2025/09/15- 2025/09/21） 4. 英伟达拟向OpenAI投资1000亿 美元，小米召开多品类新品发布会 ——电子行业周报（2025/09/22- 202 ...

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage in this regard [1]. Core Insights - The company, Northern Huachuang, is positioned as a leading platform enterprise in the domestic semiconductor equipment sector, poised to benefit significantly from the wave of domestic substitution [1][4]. - The company has shown robust revenue growth, with a 29.51% year-on-year increase in revenue for the first half of 2025, reaching 16.142 billion yuan, and a net profit of 3.208 billion yuan, up 14.97% year-on-year [4][5]. - The semiconductor equipment market is expected to see sustained demand growth driven by the expansion of domestic wafer production capacity and advancements in process technology [4][39]. Summary by Sections 1. Company Overview - Northern Huachuang is a major player in high-end semiconductor equipment in China, with a diverse product matrix and a focus on core processes in integrated circuit manufacturing [4][12]. - The company has expanded its product offerings through strategic acquisitions, including the successful integration of Xinyuan Micro in 2025, which enhanced its capabilities in critical equipment for coating and developing [4][12]. 2. Market Dynamics - The Chinese semiconductor equipment market is the largest globally, with a projected sales growth of 35% in 2024, reaching 49.6 billion USD, accounting for approximately 42% of the global market [39]. - The demand for semiconductor equipment is expected to grow significantly due to the expansion of domestic wafer fabs and the ongoing shift towards advanced process nodes [39][47]. 3. Financial Performance - The company has demonstrated a compound annual growth rate (CAGR) of 48.99% in revenue from 2020 to 2024, with a net profit CAGR of 79.88% during the same period [4][25]. - The revenue from semiconductor equipment is projected to reach 26.578 billion yuan in 2024, constituting about 90% of total revenue [4][17]. 4. Future Projections - Revenue forecasts for 2025 to 2027 are estimated at 39.283 billion, 49.665 billion, and 61.156 billion yuan, respectively, with year-on-year growth rates of 31.65%, 26.43%, and 23.14% [5][6]. - The net profit for the same period is expected to be 7.530 billion, 9.676 billion, and 11.863 billion yuan, with corresponding growth rates of 33.95%, 28.50%, and 22.61% [5][6].

[Table_Reportdate] 2025年10月14日 [table_invest] 超配 行 业 周 报 [证券分析师 Table_Authors] 张晶磊 S0630524090001 zjlei@longone.com.cn 证券分析师 谢建斌 S0630522020001 xjb@longone.com.cn [table_stockTrend] -19% -9% 0% 10% 20% 30% 39% 24-10 25-01 25-04 25-07 申万行业指数:基础化工(0722) 沪深300 [相关研究 table_product] 1.制冷剂价格上行，萤石及氢氟酸行 情回暖——氟化工行业月报 2.石化化工稳增长方案出台，关注细 分行业"反内卷"进展——基础化工 行业周报（2025/9/22-2025/9/28） 3.行业高景气持续，企业盈利能力提 升——氟化工行业月报 [Table_NewTitle 反内卷政策释放信号 ] ，维护市场价格秩 序 ——基础化工行业周报（2025/10/06-2025/10/12） [table_main] 投资要点： ➢ 投资建议： 供给侧有望结构性优化，挑 ...

Group 1: Pharmaceutical and Biotechnology Industry - The pharmaceutical and biotechnology sector experienced an overall decline of 1.20% in the week from October 6 to October 10, ranking 25th among 31 industries, underperforming the CSI 300 index by 0.69 percentage points [5] - Year-to-date, the sector has risen by 21.87%, ranking 12th among 31 industries and outperforming the CSI 300 index by 4.54 percentage points [5] - The current PE valuation for the pharmaceutical and biotechnology sector is 30.87 times, at the historical median level, with a 129% premium over the CSI 300 index [5] - Notable sub-sectors that increased include Traditional Chinese Medicine II and Pharmaceutical Commerce, with gains of 1.51% and 0.64% respectively [5] - A total of 244 stocks (50.94%) rose while 215 stocks (44.89%) fell during the week, with the top five gainers being Zhendemedical (21.00%), Wanbangde (12.01%), Changshan Pharmaceutical (8.69%), Zhenbaodao (8.56%), and Pumen Technology (6.66%) [5] Group 2: Regulatory Developments - On October 10, the State Council released regulations for the management of clinical research and clinical application of biomedical new technologies, effective from May 1, 2026, establishing a clear framework for the regulated development of these technologies [6] - The regulations emphasize the establishment of a comprehensive safety supervision system, protection of ethics and rights of subjects, and strict legal responsibilities [6] - On October 9, the National Medical Products Administration announced a draft for public consultation regarding the acceleration of post-marketing research and evaluation of traditional Chinese medicine injections, mandating companies to conduct studies based on fixed production processes [6] Group 3: Mergers and Acquisitions - Novo Nordisk announced an agreement to acquire Akero Therapeutics for $4.7 billion, gaining access to Akero's FGF21 analog Efruxifermin, a potential best-in-class therapy for metabolic dysfunction-related fatty liver disease (MASH) [7] - The acquisition could reach a total value of $5.2 billion upon FDA approval of Efruxifermin for treating MASH-related decompensated cirrhosis [7] Group 4: Electronic Industry Insights - The electronic sector is facing increased tensions due to U.S.-China trade frictions, with the U.S. imposing an additional 100% tariff on Chinese imports, exacerbating global semiconductor supply chain issues [11][12] - OpenAI has established a partnership with AMD to deploy a total of 6GW of AMD GPU computing power, marking a shift towards a "computing alliance" era in AI competition [11][13] - The electronic industry is currently in a phase of moderate recovery, with recommendations to focus on AI server supply chains, AIOT, device materials, and domestic automotive electronics [11][15] Group 5: Market Performance - The Shanghai Composite Index closed at 3889 points, down 0.19%, with major indices showing mixed performance [17] - The electronic sector underperformed the broader market, with the electronic index declining by 2.63% [14] - The market saw a significant outflow of large funds, with net outflows exceeding 128 billion yuan [17]

Export Data - In September 2025, exports increased by 8.3% year-on-year, up from 4.4% in the previous month[2] - The export value reached $328.57 billion, marking a new high for the year[2] - Exports to Africa and Latin America saw significant growth, with year-to-date increases of 28.3% and 6.9% respectively[2] Import Data - Imports rose by 7.4% year-on-year, compared to 1.3% in August[2] - The month-on-month increase in imports was 10.3%, significantly above the four-year average of 1.66%[2] - Key imports included copper and copper products, which maintained high growth rates despite a slight decline[2] Trade Balance - The trade surplus for September was $90.45 billion, an increase of $8.69 billion compared to the same month last year[2] Market Trends - The manufacturing PMI for developed countries remains below the growth threshold, indicating ongoing contraction in sectors like manufacturing[2] - The diversification of export markets has been validated, with exports to other regions increasing from 8.11% to 15.55% year-on-year[2] Product Performance - Mechanical and high-tech products showed strong export growth, while labor-intensive products faced pressure, with toys and footwear experiencing declines of 28.0% and 13.3% respectively[2][7] - Notable increases in exports were seen in rare earths (97.1%) and fertilizers (95.4%) compared to the previous month[7]

Investment Rating - The report suggests a cautious approach to the electronic industry, indicating a moderate recovery in demand and recommending gradual investment in specific sectors [6][7]. Core Views - The ongoing US-China technology friction is intensifying, with China's Ministry of Commerce implementing stricter export controls on rare earth elements, while the US plans to impose an additional 100% tariff on Chinese imports. This situation is expected to exacerbate the global semiconductor supply chain tension and may accelerate the domestic supply chain replacement [6][12]. - OpenAI has established a significant partnership with AMD to deploy a total of 6GW of AMD GPU computing power, marking a shift towards a "computing alliance" era in AI competition. This collaboration is anticipated to drive the global AI computing infrastructure to a new scale [6][13]. - The electronic industry is currently experiencing a mild recovery in demand, with price stabilization observed. The report recommends focusing on sectors such as AI server supply chains, AIOT, equipment materials, and domestic automotive electronics [6][7]. Summary by Sections Industry News - China's Ministry of Commerce announced new export controls on rare earth elements, particularly affecting the semiconductor sector [12]. - President Trump stated that the US will impose an additional 100% tariff on Chinese imports starting November 1, which could significantly raise the tariff levels [12]. - OpenAI and AMD have finalized a strategic agreement to provide 6GW of computing power for AI infrastructure, with AMD expected to receive substantial chip sales contracts [13]. - TSMC reported a 31.4% year-on-year increase in revenue for September 2025, indicating strong performance in the semiconductor market [14]. Market Performance - The report notes that the electronic industry underperformed the broader market, with the Shanghai-Shenzhen 300 Index down 0.51% and the Shenwan Electronics Index down 2.63% [19][21]. - As of October 10, 2025, various sub-sectors within the electronic industry showed mixed performance, with semiconductors down 3.28% and other electronic components down 2.51% [21][22]. Investment Recommendations - The report suggests focusing on companies benefiting from strong domestic and international demand in the AIOT sector, such as Lexin Technology and Hanguang Technology [7]. - It also highlights the AI innovation-driven sector, recommending investments in computing chips and optical devices [7]. - The report emphasizes the importance of domestic supply chain replacement in semiconductor equipment and materials, suggesting companies like North Huachuang and Zhongwei Technology as potential investment targets [7].

Investment Rating - The report assigns an "Overweight" rating to the pharmaceutical and biotechnology industry, indicating that the industry index is expected to outperform the CSI 300 index by 10% or more over the next six months [1][33]. Core Insights - The pharmaceutical and biotechnology sector experienced an overall decline of 1.20% from October 6 to October 10, 2025, ranking 25th among 31 industries in the Shenwan index, underperforming the CSI 300 index by 0.69 percentage points. Year-to-date, the sector has risen by 21.87%, ranking 12th among the 31 industries and outperforming the CSI 300 index by 4.54 percentage points [3][14]. - The current PE valuation for the pharmaceutical and biotechnology sector stands at 30.87 times, which is at the historical median level, with a valuation premium of 129% compared to the CSI 300 index [22][14]. - Notable stock movements include a 21.00% increase in Zhendemedical, a 12.01% rise in Wanbangde, and a 1.51% increase in the Traditional Chinese Medicine II sub-sector [27][3]. Market Performance - The pharmaceutical and biotechnology sector's performance for the week of October 6 to October 10, 2025, showed a decline of 1.20%, with Traditional Chinese Medicine II and pharmaceutical commerce sub-sectors increasing by 1.51% and 0.64%, respectively [13][3]. - Year-to-date, the sector has increased by 21.87%, with the top-performing sub-sectors being medical services (41.37%), chemical pharmaceuticals (36.28%), and biological products (16.22%) [14][3]. Industry News - On October 10, 2025, the State Council released regulations for the management of clinical research and application of new biomedical technologies, effective from May 1, 2026, establishing a clear framework for the sector's development [4][29]. - The National Medical Products Administration announced on October 9, 2025, that companies with Traditional Chinese Medicine injections approved before 2019 must accelerate post-marketing research and evaluation [4][30]. - Novo Nordisk announced on October 9, 2025, a $47 billion acquisition of Akero Therapeutics, gaining access to a potential best-in-class therapy for metabolic dysfunction-related fatty liver disease [5][30]. Investment Recommendations - The report suggests that the pharmaceutical and biotechnology sector has been underperforming recently, but the acquisition by Novo Nordisk indicates a long-term trend of multinational corporations enriching their R&D pipelines through mergers and acquisitions. The upcoming ESMO conference is anticipated to provide new data on domestic innovative drugs and potential business development opportunities [6][31]. - The report emphasizes that domestic innovative drug companies are rapidly gaining global competitiveness, and innovative drugs remain a key investment theme in the medium to long term. The innovative drug sector is expected to continue showing high revenue growth and reducing losses [6][31]. - Recommended stocks include Teabo Bio, Betta Pharmaceuticals, Kelun Pharmaceutical, KAILI Medical, Pumen Technology, and Huaxia Eye Hospital, with a watchlist including Zhongsheng Pharmaceutical, Rongchang Bio, Qianhong Pharmaceutical, Yifeng Pharmacy, Baipusais, and Lingrui Pharmaceutical [6][31].

Key Insights - The report emphasizes the importance of performance fundamentals during the earnings season, focusing on technology and resource sectors as key investment themes [5][6][7] - The mechanical equipment industry is experiencing upgrades in perception capabilities with the release of Figure03, a new humanoid robot that showcases enhanced functionalities for both household and commercial applications [10][11][12] - The fluorochemical industry is witnessing a price increase in refrigerants, with a recovery in the market for fluorite and hydrofluoric acid, indicating a positive outlook for the sector [16][17][18] Group 1: Earnings Season and Market Overview - Global stock markets mostly declined in the week ending October 10, 2025, with the Nikkei 225 leading gains due to policy expectations from Japan's new leadership [5] - The report notes a significant drop in oil prices due to OPEC+ production increases and trade tensions, while gold prices remain high due to safe-haven demand [5][6] - The domestic equity market saw a mixed performance, with 17 sectors rising and 14 falling, highlighting the volatility influenced by U.S.-China trade relations [6][7] Group 2: Mechanical Equipment Industry - Figure03, released by Figure AI, demonstrates significant advancements in robotic capabilities, including improved motion fluidity and precision in tasks such as household chores and logistics [10][11] - The design of Figure03 incorporates innovative materials and structures, enhancing its usability and maintenance, which reflects a shift towards practical applications in real-world scenarios [11][12] - The humanoid robot's sensory and visual systems have been upgraded, allowing for better interaction in complex environments, which is crucial for its operational reliability [12][13] Group 3: Fluorochemical Industry - The prices of third-generation refrigerants have increased, with R32, R125, and R134a showing significant year-on-year price rises of 64.47%, 55.22%, and 40.00% respectively [16][18] - The report indicates a tightening supply-demand relationship for refrigerants, driven by strong downstream demand and regulatory changes affecting production quotas [18] - The rising prices of raw materials such as fluorite and anhydrous hydrofluoric acid further support the optimistic outlook for the fluorochemical sector [17][18]

Core Viewpoints - Focus on the performance fundamentals driven by the earnings season, emphasizing technology and resource sectors [7][8] Global Asset Review - Global stock markets mostly declined during the week of October 10, with the Nikkei 225 leading gains due to policy expectations from Japan's new ruling party president, while major markets erased gains from the holiday period due to US-China trade tensions [11][12] - Major commodity futures saw gold and aluminum prices rise, while crude oil and copper prices fell; the US dollar index increased, leading to depreciation of major non-USD currencies [11][12] Domestic Equity Market Review - In the domestic equity market for the week ending October 10, cyclical stocks outperformed financials, consumption, and growth sectors, with an average daily trading volume of 25,869 billion yuan, up from 21,743 billion yuan [16] - Among the 31 primary industries tracked, 17 sectors rose while 14 fell, with notable gains in non-ferrous metals (+4.44%), coal (+4.41%), and steel (+4.18%), while media (-3.83%), electronics (-2.63%), and electric equipment (-2.52%) saw significant declines [18] Interest Rates and Exchange Rates - The liquidity environment is expected to remain loose, supported by seasonal fiscal spending and cash inflows post-holiday, despite pressures from tax payments and policy tool expirations [9][19] - The yield on 10Y US Treasury bonds decreased to 4.05%, while the yield on 10Y Chinese government bonds fell to 1.846%, indicating a trend of declining yields amid rising risk aversion [12][43] Commodity Tracking - As of October 10, WTI crude oil prices fell to $58.90 per barrel, a decrease of 3.3% from the previous week, while US crude oil production increased to 13.629 million barrels per day [25] - Gold prices reached a new high of $4,017.85 per ounce, driven by safe-haven demand amid ongoing US government shutdown and trade tensions [41][42] - Refined copper prices increased, with SHFE electrolytic copper settling at 86,285 yuan per ton, up 4.3% week-on-week, reflecting strong demand in construction and electrical sectors [51]