Investment Rating - The report suggests a positive investment outlook for the fluorochemical industry, particularly in refrigerants and fluorinated polymers, indicating a high prosperity cycle ahead [1]. Core Insights - The refrigerant supply-demand landscape is improving, with the industry entering a high prosperity cycle due to quota reductions for second-generation refrigerants and stable demand for R22 [1]. - The construction of data centers is driving demand for electronic fluorinated liquids, presenting growth opportunities for domestic manufacturers as major foreign players exit the market [1]. - The fluoropolymer sector is experiencing growth due to the rapid development of the new energy industry, although high-end products still rely on imports [1]. - Investment recommendations focus on leading refrigerant producers and integrated fluorochemical companies, with a particular emphasis on those with strong supply chain capabilities [1]. Summary by Sections 1. Fluorspar - Fluorspar is a critical source of fluorine for the fluorochemical industry, with significant applications in hydrogen fluoride production [5]. - China's fluorspar reserves are substantial, ranking high globally, but the supply is tightening due to over-exploitation [6][9]. 2. Refrigerants - The refrigerant market is transitioning from second-generation to third-generation refrigerants, with significant quota reductions planned for HCFCs [17]. - R22 remains stable in demand, primarily for maintenance and production uses, with a concentrated production quota among leading companies [19][20]. - The price of R22 has risen significantly due to quota reductions, leading to improved profitability for producers [20]. 3. Fluorinated Polymers - Fluorinated polymers are widely used across various industries, with domestic production expanding but still reliant on imports for high-end products [1]. - The rapid growth of PVDF production is noted, although prices have recently declined [1]. 4. Fluorinated Liquids - The demand for electronic fluorinated liquids is increasing due to data center construction, creating opportunities for domestic manufacturers as foreign competitors exit [1]. 5. Investment Recommendations - The report recommends focusing on leading companies in the refrigerant sector and those with comprehensive supply chains in the fluorochemical industry, such as Juhua Co., Sanmei Co., and Dongyue Group [1].

公 司 研 究 医 药 生 物 [Table_Reportdate] 2024年10月22日 公 司 简 评 [Table_invest] 买入（维持） 报告原因：业绩点评 [证券分析师 Table_Authors] 杜永宏 S0630522040001 dyh@longone.com.cn 证券分析师 伍可心 S0630522120001 wkx@longone.com.cn 联系人 付婷 futing@longone.com.cn | --- | --- | |--------------------------|-----------| | | | | 收盘价 | 6.45 | | 总股本 ( 万股 ) | 127,980 | | 流通 A 股 /B 股 ( 万股 ) | 91,023/0 | | 资产负债率 (%) | 10.04% | | 市净率 ( 倍 ) | 3.32 | | 净资产收益率 ( 加权 ) | 12.80 | | 12 个月内最高 / 最低价 | 7.18/4.20 | [Table_QuotePic] -20% -9% 2% 12% 23% 34% 45% 55% 23-10 2 ...

Key Recommendations - The policy toolbox has accelerated, focusing on quality improvement as a key priority, as discussed during the 2024 Financial Street Forum [6][7] - The economic data from September 2024 indicates a need for policy support to achieve the annual growth target of around 5% [12][11] Economic Insights - The GDP growth rate for Q3 2024 was 4.6% year-on-year, with a cumulative growth of 4.8% for the first three quarters [12][11] - Retail sales in September increased by 3.2% year-on-year, up from 2.1% in the previous month, indicating a recovery in consumer spending [12][11] - Fixed asset investment showed a cumulative year-on-year growth of 3.4%, with significant contributions from manufacturing and infrastructure sectors [12][11] Monetary Policy Developments - A series of monetary policies have been implemented since September 24, including a reduction in the reserve requirement ratio (RRR) and interest rates, with expectations for further cuts [6][7] - The People's Bank of China emphasized the importance of balancing economic growth speed and quality, as well as the internal and external dynamics of economic growth [7][8] Capital Market Stability - New monetary policy tools, such as the Securities, Fund, and Insurance Company Swap Facility (SFISF), have been launched to enhance market liquidity and investor confidence [7][8] - The introduction of stock repurchase and increase loan programs aims to stabilize the capital market and reduce the cost of capital for companies [8][9] Industry Focus - The regulatory framework is shifting towards enhancing corporate governance and market transparency, particularly for companies with persistent undervaluation [8][9] - The "merger and acquisition six guidelines" focus on upgrading traditional industries and promoting new quality productivity, aiming to attract quality resources to strategic sectors [9][10] Real Estate Sector Support - Recent policies have been aimed at stabilizing the real estate market, with measures to increase credit availability and support for urban renewal projects [10][11] - The government has set clear targets to boost the real estate market, including a significant increase in credit for "white list" projects [10][11] Market Performance - The A-share market showed strong performance, with major indices like the Shanghai Composite Index rising by 2.91% [18][22] - The semiconductor sector led the market gains, reflecting strong investor interest and capital inflows [20][22]

Investment Rating - The industry is rated as "Market Perform" indicating that the industry index is expected to perform within -10% to 10% relative to the CSI 300 index over the next six months [37]. Core Insights - In September 2024, the total retail sales of consumer goods reached 41,112 billion yuan, with a year-on-year growth of 3.2%, exceeding the consensus expectation of 2.3% [5][6]. - Both urban and rural markets showed growth, with rural sales growth outpacing urban sales due to rising incomes and ongoing development of county-level commercial systems [5][6]. - Online consumption growth outpaced offline consumption, with online retail sales of goods and services growing by 8.6% and 7.9% year-on-year, respectively [6][7]. Summary by Sections Overall Retail Performance - The retail sales in September 2024 showed a year-on-year increase of 3.2%, with urban retail sales at 35,044 billion yuan (3.1% growth) and rural retail sales at 6,068 billion yuan (3.9% growth) [5][6]. Category Performance - Both dining and retail sales increased year-on-year, with dining services totaling 4,417 billion yuan (3.1% growth) and retail sales reaching 36,695 billion yuan (3.3% growth) [11][17]. - Essential consumption categories showed stable growth, with food and daily necessities performing well, while optional categories saw a narrowing of decline [13][17]. Price Trends - The Consumer Price Index (CPI) rose by 0.4% year-on-year, while the Producer Price Index (PPI) fell by 2.8%, leading to a widening gap between PPI and CPI [19][23]. Employment Situation - The urban survey unemployment rate in September 2024 was 5.1%, a slight decrease of 0.2 percentage points from the previous month [28][30]. Investment Recommendations - There is an expectation for demand recovery in the dining and alcohol sectors, with a focus on high-end liquor and regional leaders. The upcoming Double Eleven shopping festival is anticipated to boost performance in the cosmetics sector, with specific companies recommended for attention [35].

Investment Rating - The report rates the pharmaceutical and biotechnology industry as "Overweight" [8][35]. Core Viewpoints - The pharmaceutical and biotechnology sector experienced a slight increase of 1.04% from October 14 to October 18, outperforming the CSI 300 index by 0.06 percentage points. However, the sector has declined by 11.85% year-to-date, underperforming the CSI 300 index by 26.25 percentage points [9][14]. - The current PE valuation for the pharmaceutical and biotechnology sector stands at 26.65 times, which is at a historical low, with a valuation premium of 115% compared to the CSI 300 index [9][18]. - The report highlights the recent regulatory changes by the National Medical Insurance Administration aimed at standardizing the management of external prescriptions, which is expected to lead to stricter industry regulations and increased operational costs for smaller pharmacies [10][30]. Summary by Sections Market Performance - The pharmaceutical and biotechnology sector rose by 1.04% in the last week, ranking 18th among 31 industries, while year-to-date, it has fallen by 11.85%, ranking 27th [9][14]. - The total market capitalization of the sector as of October 18 is 6.19 trillion yuan, accounting for 6.47% of the total A-share market [23][27]. Industry News - On October 16, the National Medical Insurance Administration issued a notice to regulate the management of external prescriptions, addressing issues such as false prescriptions and excessive medication [10][30]. - The report also mentions the issuance of the "Long-term Care Insurance Nursing Service Institution Designation Management Measures" to standardize long-term care services [29]. Investment Recommendations - The report suggests focusing on sectors such as innovative drugs, medical devices, healthcare services, and chain pharmacies for potential investment opportunities. Specific stock recommendations include Teabo Bio, Betta Pharmaceuticals, and International Medicine [11][33]. - The report emphasizes the importance of monitoring the marginal changes in the performance of listed companies as the third-quarter reporting season approaches [11][33].

Investment Rating - The report rates the food and beverage industry as "Overweight" [5] Core Views - The report highlights a positive outlook on policy expectations and emphasizes the importance of domestic demand recovery in the food and beverage sector [5][6] - The industry shows strong resilience, supported by policy stimuli that help restore consumer confidence [5][6] Summary by Sections Market Performance - Last week, the food and beverage sector declined by 3.18%, underperforming the CSI 300 index by 4.16 percentage points, ranking 31st among 31 Shenwan first-level sectors [5][11] - Among sub-sectors, only snacks increased by 3.37%, while others experienced declines [5][11] - Top five gainers included Zhu Laoliu, Gaisifu, Quanyuan Spring, Lianhua Health, and Weilang Co., with respective increases of 10.10%, 9.31%, 9.06%, 8.79%, and 8.59% [5][11] - The top five decliners were Haitian Flavoring, Qianwei Yangchun, New Dairy, *ST Xifa, and Zhongju Gaoxin, with respective declines of 6.37%, 5.67%, 4.97%, 4.89%, and 4.63% [5][11] Consumption Trends - Retail sales growth showed improvement, with September retail sales increasing by 3.2% year-on-year, and a month-on-month increase of 1.1 percentage points [5] - Dining revenue grew by 3.1% year-on-year, while tobacco and alcohol categories saw declines [5] Key Segments - **Baijiu**: Focus on the performance of liquor companies in Q3 reports. Notable updates include Wuliangye's cash dividend ratio of 60%, up by about 5 percentage points year-on-year, and Luzhou Laojiao's strategy to deepen its market share in the Sichuan-Chongqing region [5][6] - **Beer**: The report anticipates improved beer sales in Q3 due to seasonal demand and cost reductions in raw materials, with imported barley prices down by 17% year-on-year [6] - **Snacks**: Jin Zai Food forecasts a net profit of 208-223 million yuan for the first three quarters of 2024, reflecting a year-on-year increase of 56.47%-67.75% [6][33] - **Catering Supply Chain**: Benefiting from policy stimuli, the catering supply chain is expected to recover, with a focus on companies with strong operational resilience and low valuations [6] - **Dairy Products**: The trend towards health and diversification is driving demand for low-temperature dairy products, with a recommendation to focus on companies enhancing product structures and DTC channel penetration [6] Investment Recommendations - For the baijiu sector, focus on high-end liquor and regional leaders such as Kweichow Moutai, Wuliangye, and Luzhou Laojiao [6] - In the beer sector, recommend high-end brands like Qingdao Beer [6] - In the snack sector, suggest companies with strong growth logic like Yanjinpuzi and Ganyuan Food [6]

Investment Rating - The report indicates a positive investment outlook for the battery and energy storage sectors, with the battery sector showing a 3.42% increase, outperforming the CSI 300 index by 2.44 percentage points [6][20]. Core Insights - The battery sector is experiencing growth in lithium iron phosphate (LFP) battery installations, with a significant increase in new energy vehicle sales, projected to reach 11.5 million units in 2024, a year-on-year increase of 20% [6][13]. - The energy storage sector is witnessing a rebound in bidding activity, with a total of 16 new projects and 13 awarded projects, indicating a growing market [7][16]. Summary by Sections Battery Sector - The installation share of lithium iron phosphate batteries continues to rise, with a reported 75.8% share in September, up 1.6 percentage points from the previous month. New energy vehicle sales reached approximately 408,000 units in the first two weeks of October, an 8% increase from September [6][13]. - Supply-side adjustments are stabilizing prices across various materials, including lithium salts and cathode materials. The price of industrial-grade lithium carbonate is reported at 69,500 CNY/ton, down 2.39% week-on-week [14][23]. - Key companies to watch include CATL, which is expected to ship 480 GWh in 2024 with an estimated profit of 46 billion CNY, and Teruid, benefiting from upgrades in power grid investments [15][18]. Energy Storage Sector - The energy storage bidding market has seen a total capacity of 2.44 GW/7.57 GWh, with the average winning bid for energy storage EPC projects at 0.89 CNY/Wh, a 4.3% increase from the previous week [7][16]. - The national inter-provincial electricity spot market has officially commenced, presenting opportunities for independent energy storage development. The average price difference between peak and valley electricity rates has narrowed, affecting project owners' sentiment [17][32]. - Companies like Sungrow Electric are highlighted for their comprehensive energy storage solutions, including upstream inverter production and downstream project execution [18][32].

Investment Rating - The report does not explicitly state an investment rating for the industry, but it provides insights into market performance and stock movements within the photovoltaic and wind power sectors. Core Insights - The photovoltaic equipment sector saw a slight increase of 0.11% this week, underperforming the CSI 300 index by 0.87 percentage points. The wind power equipment sector increased by 0.14%, also underperforming the index by 0.84 percentage points [7][22]. - A meeting was held to address "involutionary" competition in the photovoltaic industry, aiming to stabilize component prices and improve profitability across the supply chain [8][15]. - The report highlights a significant increase in wind power installations, with a year-on-year growth of 41.40% in new installations from January to August 2024, indicating a robust market outlook [19]. Summary by Sections Photovoltaic Sector - A meeting on preventing "involutionary" competition was held, focusing on self-regulation and the need to stabilize bidding practices to enhance profitability [8][15]. - The report notes a divergence in battery production orders, with a peak in component deliveries expected by year-end. Prices for silicon materials remain stable, while silicon wafer prices are declining due to weak demand [9][16]. - Recommendations include focusing on companies like Fulete, which benefits from cost advantages and improved cash flow, positioning it well during industry capacity adjustments [17]. Wind Power Sector - The report indicates that onshore wind turbine bidding has increased, with an average bid price of approximately 2099.33 CNY/kW, suggesting a recovery in pricing trends [10][18]. - The offshore wind sector is also progressing, with multiple projects underway, indicating a reduction in previous constraints and a potential acceleration in domestic offshore wind construction [11][19]. - Companies like Daikin Heavy Industries and Oriental Cable are highlighted for their strong positions in the offshore wind market, with expectations of continued growth due to international project opportunities [20]. Market Performance - The photovoltaic equipment sector's top-performing stocks this week included Liancheng CNC and Suzhou Gode, while the worst performers were Hemai and Jinko Solar [22]. - The wind power sector's leading stocks were Shuangyi Technology and New Strong Union, with declines seen in Dongfang Cable and Tian Shun Wind Energy [22][24].

Investment Rating - The report rates the non-bank financial sector as "Overweight" [5][25]. Core Insights - The non-bank financial index rose by 2.5% last week, outperforming the CSI 300 by 1.5 percentage points, with significant gains in the brokerage and insurance indices [6][10]. - The SFISF initiative, which provides liquidity support, is expected to enhance market confidence and trading activity, thereby stabilizing the capital market [6][7]. - The insurance sector saw a decline in premium growth in September due to regulatory changes, but the introduction of new products is anticipated to improve value and sales in the coming months [7][8]. Summary by Sections Market Review - The non-bank financial index increased by 2.5%, with the brokerage index up by 3.6% and the insurance index by 0.1% [10]. - Average daily trading volume in the stock market was 19,574 billion, a decrease of 34.7% week-on-week [17]. Brokerage Insights - The SFISF program has provided 200 billion in credit to 20 institutions, which is expected to alleviate liquidity issues and boost market activity [6][7]. - The focus on improving corporate governance and market quality is emphasized, with regulatory support for mergers and acquisitions [6]. Insurance Insights - Premium growth in September was supported by dividend insurance, despite a general slowdown in sales due to regulatory changes [7]. - The insurance sector's profitability is expected to improve significantly in the third quarter, with some companies reporting over 60% growth in net profit [7][8]. Investment Recommendations - For brokerages, the report suggests focusing on firms with strong capital and stable operations, particularly in the context of mergers and acquisitions [7]. - In the insurance sector, attention is drawn to large comprehensive insurers that can leverage regulatory support for product design and channel optimization [7].

Investment Rating - The report suggests a positive outlook for the electronics sector, indicating a moderate recovery in demand and recommending focus on four main investment themes: AIOT, AI-driven technologies, equipment materials, and consumer electronics [7][9]. Core Insights - In Q3 2024, global smartphone shipments increased by 4.0% year-on-year, marking five consecutive quarters of growth, driven by strong performance from Chinese manufacturers like vivo, OPPO, Xiaomi, and Lenovo [7][8]. - The report highlights the upcoming product launches from brands such as Honor, Huawei, and Xiaomi, which are expected to further stimulate the consumer electronics market [8][9]. - The electronics sector outperformed the broader market, with the Shenwan Electronics Index rising by 9.65%, significantly surpassing the 0.98% increase in the CSI 300 Index [9][26]. Industry News - Honor launched the X60 series, featuring satellite communication technology and enhanced durability, while vivo introduced the X200 series with advanced imaging capabilities and a new communication feature [13][14]. - The global semiconductor sales reached $53.12 billion in August, reflecting a 20.6% year-on-year increase, driven by demand related to generative AI [21]. - South Korea's semiconductor exports hit a record high of $13.63 billion in September, with a notable increase in memory semiconductor exports [22]. Market Performance - The electronics sector's performance was robust, with various sub-sectors showing significant gains, including semiconductors (+12.07%) and electronic components (+7.96%) [26][32]. - The report notes that the electronics industry is expected to continue its growth trajectory, supported by technological advancements and increasing domestic demand [9][21].