Core Insights - The report indicates that domestic consumption is gradually recovering, supported by a series of consumption policies, with stable growth in the catering sector. The recovery of the catering industry chain is expected to be a key investment theme in the food and beverage sector next year, particularly focusing on the condiment segment [2][16][17]. Consumption Data - In October, China's total retail sales of consumer goods reached 45,396 billion yuan, a year-on-year increase of 4.8%, with the growth rate accelerating by 1.6 percentage points compared to the previous month. This marks the highest growth rate in the second half of the year and has shown a continuous acceleration over the past two months [2][16]. - The catering industry generated a total revenue of 4,952 billion yuan in October, reflecting a year-on-year growth of 3.2%, which is an increase of 0.1 percentage points from the previous month. Although the monthly growth rate is slower than at the beginning of the year, overall catering consumption remains stable [2][16]. Industry Recovery - As catering consumption recovers, the demand across the upstream and downstream sectors related to the catering industry, including liquor, condiments, and beer, is also expected to gradually recover. The condiment industry, in particular, is anticipated to see robust growth as the peak season for consumption approaches during the New Year and Spring Festival [3][17]. - The current overall valuation of the condiment industry stands at 38 times, significantly lower than the 10-year average of 51.3 times, indicating potential for valuation recovery. Key beneficiaries in this sector include companies like Haitian Flavoring and Fuling Zhacai [3][17]. Market Performance - Last week, various sub-sectors within the food and beverage industry experienced declines, with the following weekly performance: Huangjiu (Changjiang) -1.26%, beer -1.89%, other alcoholic beverages -3.38%, meat products -3.39%, soft drinks -3.40%, fermented condiments -4.05%, liquor -4.81%, dairy products -6.94%, and other foods -8.05% [4][18]. - In the liquor sector, the top five performing companies were Jin Feng Jiu Ye +2.87%, ST Tongpu +1.01%, and Weilang Co. +0.36%, while the bottom five included China Resources Beer -13.22%, Budweiser APAC -11.66%, and Huangtai Jiu Ye -10.22% [4][18]. Hong Kong Market Review - The Hong Kong essential consumer index fell by 7.12% last week, with key companies showing the following performance: China Feihe -5.88%, Zhou Hei Ya -5.11%, and Nongfu Spring -8.45% [5][19].

Core Insights - Huawei's Euler operating system has evolved into a key player in the domestic server operating system market, achieving significant growth in installed capacity and maintaining the largest market share in 2023 [2][12] - The openEuler community has attracted over 20,000 contributors globally, with downloads spanning 152 countries and 1,973 cities, showcasing its extensive reach and collaborative innovation [2][12] - The integration of openEuler with AI technologies is a focal point, highlighted by its participation in the OSSUMMIT EU 2024, where discussions on the intersection of open-source operating systems and AI will take place [2][12] Summary by Questions Q1: Development of Huawei Euler - Huawei Euler originated from internal R&D and has transitioned through various stages, including commercial deployment of cloud products and the establishment of the openEuler open-source community, solidifying its position in the market [2][12] Q2: Features and Advantages of Huawei Euler - The system supports multiple mainstream computing architectures and covers all major application scenarios, ensuring versatility across various fields [2][12] - The openEuler community's global integration fosters innovation and collaboration, enhancing the system's capabilities [2][12] - Key enhancements include improved security, customizable integration, and long-term support [2][12] Q3: Latest Highlights of Huawei Euler - The acceleration of openEuler's integration with AI technologies is a significant development, with new products being introduced at major global events [2][12] Q4: Relationship Between Huawei Euler and HarmonyOS - Both systems share capabilities and ecosystems, aiming to create a comprehensive operating system platform that simplifies interconnectivity and promotes cross-domain innovation [3][13] Q5: Impact of Huawei Euler's Growth on Industry Ecosystem - The rise of Huawei Euler is expected to benefit upstream technology providers and downstream software developers, cloud service providers, and security solution providers [3][13] - The discontinuation of CentOS has led to increased migration interest towards Euler, ranking fourth in user migration surveys in 2023 [3][13] - Government policies continue to support the development of the domestic innovation industry, creating a favorable environment for server operating systems as a strategic core software [3][13] - The domestic operating system market has significant potential for growth due to its relatively low current adoption rates [3][13]

Investment Rating - The industry investment rating is "看好" (positive outlook), indicating a relative performance stronger than the benchmark index by more than 5% [81]. Core Insights - Huawei's Euler operating system has become a key player in the domestic server operating system market, with a significant increase in installed capacity from 1.03 million units in 2022 to 6.1 million units in 2023, achieving a market share of 36.8%, an increase of 11.1 percentage points year-on-year [17][67]. - The openEuler community has attracted over 20,000 contributors and has a download reach across 152 countries and 1,973 cities, showcasing its global integration and collaborative innovation [28][29]. - The discontinuation of CentOS is expected to drive migration towards domestic operating systems, with openEuler ranking fourth in user migration willingness in 2023 [67][70]. Summary by Sections 1. Background of Huawei Euler - Huawei Euler was developed as an enterprise-level operating system, evolving through internal product commercialization and the establishment of the openEuler open-source community [3][6]. - The system has become a crucial component in China's digital transformation, driven by the need for secure and unified operating systems in various sectors [6][7]. 2. Features and Advantages of Huawei Euler - openEuler supports a wide range of application scenarios, covering major computing architectures and ensuring 100% compatibility with mainstream applications [21][24]. - The community has established connections with upstream and downstream ecosystems, enhancing collaboration and innovation [28]. - The system emphasizes security, integration, and long-term support, making it suitable for stable operational environments [30][31]. 3. Latest Developments - openEuler is accelerating its integration with AI technologies, highlighted at the OSSUMMIT EU 2024, where discussions on the convergence of open-source operating systems and AI took place [35][36]. - The introduction of new versions targeting edge computing and embedded systems reflects its adaptability to emerging technological trends [24][35]. 4. Relationship with HarmonyOS - openEuler and HarmonyOS are designed to work together, sharing capabilities and fostering an ecosystem that supports various application scenarios [38][39]. - The collaboration aims to simplify interconnectivity and promote cross-domain innovation [41][42]. 5. Development Opportunities for Huawei Euler - The discontinuation of CentOS presents a significant opportunity for openEuler, as many users are looking to migrate to alternative operating systems [67]. - The Chinese government's policies are increasingly supportive of domestic software development, creating a favorable environment for the growth of the domestic operating system market [72][73]. - The low current domestic operating system penetration rate indicates substantial room for growth and replacement opportunities in the market [73].

Investment Rating - The report maintains a "Positive" investment rating for the food and beverage industry [2][52]. Core Viewpoints - The food and beverage industry is experiencing stable growth in the restaurant sector, with a continuous recovery expected in the restaurant supply chain. The report emphasizes that the recovery of consumer spending, particularly in the restaurant industry, will be a key investment theme for the upcoming year, with a focus on the seasoning segment [9][10][17]. - In October, China's total retail sales of consumer goods reached 45,396 billion yuan, showing a year-on-year growth of 4.8%, which is an acceleration of 1.6 percentage points compared to the previous month. The restaurant industry's revenue for October was 4,952 billion yuan, with a year-on-year increase of 3.2% [9][10][17]. - The seasoning industry is expected to see a recovery in demand, particularly as the peak consumption periods of New Year's and Spring Festival approach. The current valuation of the seasoning industry is at 38 times earnings, significantly lower than the 10-year average of 51.3 times, indicating potential for valuation recovery [10][18]. Summary by Sections Industry Overview - The food and beverage industry consists of 126 stocks, with a total market capitalization of 49,857.36 billion yuan, reflecting a 5.3% increase. The average price-to-earnings ratio for the industry is 22.34 [4][5][7]. Market Performance - Last week, various sub-sectors within the food and beverage industry experienced declines, with the following weekly performance: yellow wine (Changjiang) -1.26%, beer -1.89%, other alcoholic beverages -3.38%, meat products -3.39%, soft drinks -3.40%, seasoning and fermented products -4.05%, baijiu -4.81%, dairy products -6.94%, and other foods -8.05% [11][19]. Key Company Tracking - Notable announcements from key companies include: - Chongqing Beer announced a cash dividend of 1.50 yuan per share, totaling 725.96 million yuan [30]. - Qiaqia Food announced the first grant of stock options, with a total of 4.18 million options granted at a price of 19.97 yuan each [31]. - Chengde Lulux plans to repurchase shares with a total amount not exceeding 705 million yuan [32].

Group 1: Real Estate Market Insights - New home prices show greater resilience compared to second-hand homes, with first-tier cities exhibiting stronger price stability, while lower-tier cities have undergone significant adjustments [2][22] - In first-tier cities, both new and second-hand homes have long been in a tight supply-demand situation, supporting property prices. The relaxation of purchase restrictions is expected to release pent-up demand [3][23] - Second-tier cities display a mixed situation, with cities like Hangzhou, Chengdu, and Xi'an leading in price increases, while some new homes may face price pressure due to a large influx of new supply [3][23] - Third-tier cities are experiencing deep adjustments in both new and second-hand home markets, with limited further price decline expected due to cost support, but ongoing inventory pressure remains [3][23] Group 2: Consumer Retail Sector Analysis - In October 2024, the total retail sales of consumer goods increased by 4.8% year-on-year, benefiting from the early Double Eleven promotions and policy stimuli [11][28] - Essential consumption remains stable, while certain discretionary categories, such as cosmetics and home appliances, have seen explosive growth, with home appliance sales up 39.2% year-on-year [12][30] - Online retail continues to outperform offline channels, with online sales growing by 8.8% year-on-year, indicating a sustained trend towards high-cost performance consumption [14][31] - Investment strategies suggest focusing on sectors benefiting from domestic demand expansion policies and high-demand niches like cosmetics and medical beauty [16][32]

Investment Rating - The report maintains a "Positive" investment rating for the transportation industry, indicating an expectation of performance that exceeds the market benchmark by more than 5% [2][69]. Core Insights - The report highlights that domestic airlines are cautiously managing capacity, resulting in a rebound in passenger load factors for October. The cautious approach is attributed to concerns about demand in the fourth quarter [7][15]. - Domestic market demand saw a short-term increase during the October holiday, with capacity deployment increasing by approximately 4% month-on-month. However, this is still around 120% of the capacity compared to the same period in 2019 [8][23]. - The report notes that while the supply pressure on domestic routes has eased somewhat due to the recovery of international routes, the overall excess capacity in domestic routes remains a concern for the upcoming low season [10][15]. Summary by Sections Industry Overview - The transportation industry has a total market capitalization of approximately 32,276.28 billion, with a circulating market value of about 28,499.98 billion. The average price-to-earnings ratio for the industry stands at 17.5 [5][6]. Domestic Routes - Airlines have been cautious in their capacity deployment, with October's capacity being similar to last year and a 4% increase from September. Compared to 2019, the capacity is about 120% of the same period [8][23]. - The passenger load factor for airlines improved significantly in October, with an overall increase of approximately 2.1 percentage points compared to September, exceeding the levels of 2019 by 2.2 percentage points [9][30]. International Routes - For international routes, airlines' capacity deployment in October was about 92% of the levels seen in 2019, with a month-on-month increase of approximately 2.2%. However, the passenger load factor decreased by 0.4 percentage points compared to September, although it was up by 1.0 percentage point compared to 2019 [10][18]. - The report indicates significant variability among airlines, with some experiencing increased capacity while others faced declining load factors, highlighting a bottleneck in demand for international routes [41][39]. Future Outlook - The report suggests that while the civil aviation industry continues to face operational pressures, improvements in the fundamental aspects of the industry could lead to significantly better profit performance compared to last year. Major airlines' stock prices have shown a long-term adjustment, indicating a potential for increased safety margins and investment opportunities [10][11].

Investment Rating - The industry investment rating is "Positive" and maintained by Dongxing Securities [4][17]. Core Viewpoints - The report highlights that the retail sector is experiencing a rebound in consumer demand, with a notable increase in social retail sales in September and October 2024, driven by the early Double Eleven promotions and policy stimuli [29][30]. - Essential consumption categories are showing steady growth, while some discretionary categories are experiencing varied performance, indicating a shift towards high cost-performance consumption [12][17]. Summary by Sections Industry Overview - In September 2024, the total retail sales of consumer goods reached 41,112 billion yuan, a year-on-year increase of 3.2%, with a growth acceleration of 1.1 percentage points compared to the previous month [6][10]. - The retail sales excluding automobiles amounted to 36,573 billion yuan, growing by 3.6% [7]. Consumer Behavior - Essential consumption categories such as food, beverages, and daily necessities showed robust growth rates of 9.9%, 4.5%, and 2.2% respectively in the first half of 2024 [12]. - Discretionary consumption categories like sports and entertainment products and communication equipment performed well, with year-on-year growth rates of 9.7% and 10% respectively, while categories like automobiles and cosmetics faced negative growth [12][16]. Online vs. Offline Sales - Online retail sales in the first nine months of 2024 reached 108,928 billion yuan, a year-on-year increase of 8.6%, with physical goods online retail sales growing by 7.9% [12]. - The proportion of online retail sales in total retail sales rose to 25.7%, indicating a continued trend towards online shopping [12]. Investment Strategy - The report suggests focusing on high-performing segments within the retail sector and companies that can cater to the demand for high cost-performance products, especially in the context of overall weak consumer demand [17][30].

Investment Rating - The report maintains a "Positive" investment rating for the real estate industry [1][4]. Core Insights - New home sales are showing further recovery, while second-hand home sales remain robust. The Ministry of Finance has introduced multiple tax incentives for the real estate market [1][2]. - The central government's policy focus has shifted from stabilizing the market to promoting stability, indicating ongoing positive policy support for the real estate sector [2][12]. Summary by Sections Sales Data - The sales area of new homes in 24 cities for the week of November 11-17 was 3.222 million square meters, up from 3.051 million square meters the previous week. Year-to-date sales area shows a year-on-year decline of 16.95%, improving from a decline of 17.77% previously [2]. - The sales area of second-hand homes in 10 cities for the same week was 1.290 million square meters, down from 1.469 million square meters the previous week. Year-to-date sales area shows a year-on-year increase of 7.04%, improving from 6.68% previously [2]. - The combined sales area of new and second-hand homes in 10 cities for the week was 2.339 million square meters, down from 2.705 million square meters the previous week. Year-to-date combined sales area shows a year-on-year decline of 9.06%, improving from a decline of 9.60% previously [2]. Policy Developments - The Ministry of Finance and other departments have released several new tax incentives for the real estate market, including a 1% deed tax rate for the purchase of the first and second homes under 140 square meters, and exemptions from value-added tax for individuals selling homes purchased for over two years [2][12]. - The report highlights that the "white list" policy is being strengthened, providing good credit support for quality real estate companies with market-oriented operational capabilities [2][12]. Market Outlook - The report suggests that quality real estate companies in core cities, such as Poly Developments, China Merchants Shekou, China Resources Land, and Greentown China, are expected to benefit from the current demand-side policies [2][12]. - The report emphasizes the importance of ongoing policy support for stabilizing the market and promoting healthy interactions between the government and the market [2][12].

行 业 研 究 东 兴 证 券 股 份 有 限 公 司 证 券 研 究 报 告 | --- | --- | --- | --- | --- | --- | --- | |--------------------|-------|----------------------|-----------------------------------------|-------|------------------|------------------------------------------| | | | 城市房价已经深度调整 | 房价专题：一线城市房价韧性更强，低线 \n | | 2024 \n看好/维持 | 年 11 月 19 日 \n房地产 行业报告 | | 分析师 陈刚 电话： | | 021-25102897 邮箱： | chen_gang@dxzq.net.cn | | 执业证书编号： | S1480521080001 | 投资摘要： 整体而言，新房价格韧性普遍强于二手房，一线城市房价韧性更强，低线城市房价已经深度调整。房价走势呈现出城市能级 越高，整体累计涨幅越大的特点，但一线城市新房累计涨幅落 ...

Group 1 - The core viewpoint of the report highlights that Huawei's Pangu model has emerged in the AI field due to four key factors: significant technological innovation, strong computing power based on Huawei's self-developed Da Vinci architecture, comprehensive ecosystem collaboration, and increased R&D investment in AI [1][20]. Group 2 - The background and development of the Pangu model indicate that Huawei launched it in response to the rise of artificial intelligence, accelerated digital transformation, and diversified market demands, with the official release of version 5.0 on June 21, 2024, at the Huawei Developer Conference [2][21]. Group 3 - The advantages of Pangu model 5.0 compared to version 4.0 can be categorized into three aspects: full series upgrade with models ranging from billions to trillions of parameters for various business scenarios, multi-modal upgrade supporting text, images, videos, and additional modalities like radar and infrared, and strong cognitive upgrade enhancing mathematical capabilities and complex task planning [3][22]. Group 4 - Recent highlights of Pangu model 5.0 include its participation in a government model evaluation, achieving the highest excellence level (5) in compliance verification, and scoring full marks in six evaluation indicators, making it the only vendor to achieve full marks in both technical and service areas [4][23]. Group 5 - The release of Pangu model 5.0 is expected to drive the development of the AI industry, benefiting hardware, services, industry applications, and related enterprises, with specific beneficiaries identified such as Kela Software, Tuo Wei Information, Changshan Beiming, and others [11][23].