Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a robust and high-quality growth in a weak demand environment, continuing to advance its dual-focus strategy [10] - For the fiscal year 2024/25, the company reported a revenue of 25.9 billion RMB, a year-on-year increase of 11.6%, and a net profit attributable to shareholders of 3.51 billion RMB, up 14.3% year-on-year [5] - The company’s gross margin decreased by 2.3 percentage points to 57.3%, while the operating margin increased by 0.2 percentage points to 19.2% [5][8] Financial Performance - The company’s main business segments showed varied performance: brand down jackets increased by 11%, OEM processing by 26%, women's wear decreased by 21%, and diversified clothing increased by 3% [6] - Online sales for the entire brand reached 7.58 billion RMB, a year-on-year growth of 9.3%, with the brand down jackets accounting for 34.5% of the revenue [6] - As of March 2025, the company had 3,470 down jacket stores, a net increase of 253 stores, reflecting a 7.9% growth [7] Profitability and Cost Management - The company’s operating expenses ratio decreased by 2.0 percentage points to 38.5%, indicating effective cost control [8] - The inventory increased by 23.6% to 3.95 billion RMB, with inventory turnover days slightly increasing to 118 days [9] Strategic Focus - The company is committed to a dual-focus strategy centered on down jackets and fashionable functional apparel, aiming for steady growth despite external challenges [10] - The report anticipates continued revenue growth exceeding 10% for the main business segments, showcasing the resilience of the brand and operations [10] Earnings Forecast - The report projects revenue growth rates of 10.1% for FY2026 and 10.0% for FY2027, with net profit growth rates of 11.5% and 11.4% respectively [11] - The estimated earnings per share (EPS) for FY2026 is projected at 0.34 RMB, with a price-to-earnings (P/E) ratio of 12 [11]

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company is expected to benefit from the ongoing advantages of raw milk and structural upgrades that enhance profitability [1][2] - New product iterations and management empowerment are anticipated to drive long-term growth, with new products contributing over 10% to overall revenue [1] - The company’s flexible milk source structure, with 30% from self-owned farms, 30% from joint ventures, and 40% from social farms, allows for profit enhancement under cost advantages [2] Summary by Sections Revenue and Profitability - Projected revenue for 2023 is 10,987 million yuan, with a growth rate of 9.80%. By 2027, revenue is expected to reach 12,416 million yuan, with a growth rate of 5.09% [3][9] - The company’s net profit for 2023 is estimated at 431 million yuan, growing to 931 million yuan by 2027, reflecting a growth rate of 14.30% [3][9] - The gross margin is projected to improve from 26.9% in 2023 to 29.3% in 2027, indicating a positive trend in profitability [11] Cost Structure and Product Mix - The company’s cost structure is expected to benefit from a reduction in raw milk prices, which have decreased to 3.04 yuan per kilogram as of June 2025 [2] - The product mix is shifting towards low-temperature fresh milk and specialty yogurt, which have higher gross margins compared to room-temperature products (40%+ for low-temperature fresh milk vs. 20%+ for room-temperature) [2] Earnings Forecast and Valuation - The earnings per share (EPS) is projected to increase from 0.50 yuan in 2023 to 1.08 yuan in 2027, with corresponding price-to-earnings (P/E) ratios decreasing from 38 to 17 over the same period [3][12] - The report forecasts a return on equity (ROE) improvement from 16.85% in 2023 to 20.23% in 2027, indicating enhanced shareholder value [3][11]

Investment Rating - The report maintains a rating of "Add" for the non-ferrous metals sector [5] Core Views - The report expresses a positive outlook on the metal new materials sector, highlighting potential investment opportunities in lithium, cobalt, tungsten, and rare earth materials [4][9] Summary by Relevant Sections Military New Materials - Electrolytic cobalt price increased to 248,000 CNY/ton, up 5.1% week-on-week [1] - The price ratio of electrolytic cobalt to cobalt powder is 0.92, down 1.3% [10] - Carbon fiber price remains stable at 83.8 CNY/kg, with a gross profit of -8.56 CNY/kg [1][21] New Energy Vehicle Materials - Lithium carbonate price is 54,500 USD/ton, up 1.87% week-on-week [2] - Sulfuric cobalt price increased to 48,800 CNY/ton, up 2.31% [37] - Phosphate iron lithium and 523-type cathode material prices are 30,300 CNY/ton and 105,500 CNY/ton, respectively, with slight increases [2][42] Photovoltaic New Materials - Photovoltaic-grade polysilicon price decreased to 4.22 USD/kg, down 0.7% [2] - EVA price remains at 10,450 CNY/ton, stable since 2013 [2] Nuclear Power New Materials - Uranium price increased to 57.31 USD/lb, up 8.8% [3] Consumer Electronics New Materials - Tetracobalt oxide price increased to 193,500 CNY/ton, up 3.75% [3] - Silicon carbide price decreased to 5,400 CNY/ton, down 3.6% [3] Other Materials - Platinum price increased to 333 CNY/g, up 10.3% [3]

Manufacturing Sector - The manufacturing PMI for June 2025 is 49.7%, up from 49.5% in May, aligning with market expectations[2] - The production index increased by 0.3 percentage points to 51.0%, while the new orders index rose by 0.4 percentage points to 50.2%[5] - Large and medium enterprises showed improved sentiment, with large enterprises' PMI rising to 51.2% and medium enterprises' PMI to 48.6%, while small enterprises' PMI fell to 47.3%[5] Economic Recovery Indicators - External disturbances have weakened, leading to a recovery in new export orders, which continue to rise[3] - High-energy-consuming industries are stabilizing, with their PMI increasing by 0.8 percentage points to 47.8%[15] - The service sector's business activity index slightly decreased to 50.1%, primarily due to the end of holiday effects, but remains in the expansion zone[27] Price and Inventory Trends - The raw material purchase price index rose to 48.4%, and the factory price index increased to 46.2%, both recovering from previous declines[23] - The raw material inventory index increased by 0.6 percentage points to 48.0%, indicating improved production activity[23] Construction Sector - The construction sector's business activity index rose significantly to 52.8%, reflecting a positive trend in housing construction activities[32] - The government is implementing policies to stabilize the real estate market, which is expected to further improve supply-demand dynamics[33]

Investment Rating - The report maintains an "Increase" rating for the pharmaceutical and biotechnology sector [6]. Core Viewpoints - The approval of domestic weight loss drugs marks a significant opportunity in the GLP-1 industry chain, with companies like Innovent Biologics (H), Heng Rui Medicine, and others being highlighted for their competitive advantages in sales and R&D capabilities [3][21]. - The report emphasizes the importance of sales capabilities in the commercialization of weight loss drugs, suggesting that companies with strong sales execution will dominate the market [21]. - The overall pharmaceutical industry is expected to experience a positive trend due to expanding terminal demand, particularly in the GLP-1 sector [3]. Summary by Sections Market Review - Last week, the A-share pharmaceutical and biotechnology index rose by 1.60%, underperforming the CSI 300 index by 0.35 percentage points and the ChiNext index by 4.11 percentage points, ranking 23rd among 31 sub-industries [1][15]. - The Hong Kong Hang Seng Healthcare Index increased by 2.85%, slightly outperforming the Hang Seng Index [1]. Company Updates - Recent developments include IND applications for HSK47388 by Haishi Ke and GR2303 injection by Zhixiang Jintai, among others [2][30]. - Heng Rui Medicine is conducting Phase III clinical trials for HRS-8080 and HRS9531, while other companies are in various stages of clinical trials [30]. Investment Strategy - The report suggests a structural selection of investment opportunities based on payment willingness and ability, focusing on three payment channels: in-hospital payments, out-of-pocket payments, and overseas payments [4][27]. - Key recommendations include Heng Rui Medicine, Mindray Medical, and Yuyue Medical, among others [4][27]. Key Company Earnings Forecast and Valuation - Heng Rui Medicine is forecasted to have an EPS of 1.07 in 2025, with a PE ratio of 49, rated as "Increase" [5]. - Yuyue Medical and Mindray Medical are also highlighted with "Buy" ratings based on their projected earnings and valuations [5]. R&D Progress - The report tracks the R&D progress of various companies, noting significant advancements in clinical trials and IND applications [30][31]. Important Database Updates - The total number of hospital visits showed a year-on-year increase of 13.29%, indicating a recovery in healthcare demand [32]. - Basic medical insurance income reached 1,030.2 billion yuan in the first four months of 2025, with a notable decrease in monthly income [41].

Group 1 - The A-share market showed signs of recovery in June, with major indices generally rising, particularly the ChiNext Index which increased by 6.1% [1][8] - The performance of various sectors was mixed, with telecommunications, non-bank financials, banks, and non-ferrous metals performing well, while consumer sectors like food and beverage, beauty care, and home appliances lagged [1][8] - The Hong Kong stock market also experienced a rebound, with the Hang Seng Index and other indices showing increases of 5.0%, 4.8%, and 4.4% respectively by June 26, 2025 [1][12] Group 2 - The report anticipates that the A-share index will maintain a volatile trend, with external risks potentially easing but still requiring vigilance regarding U.S. policies [2][16] - The upcoming earnings season is expected to highlight sectors with strong performance, particularly steel, computers, electric equipment, and defense industries, which are projected to have relatively high growth rates [2][18] - Stable assets such as high-dividend stocks and gold are recommended for attention, as they have historically performed well during uncertain market conditions [2][18] Group 3 - The Hong Kong market is expected to continue its volatile trend, influenced by liquidity constraints and uncertainties in U.S.-China relations [3][23] - Long-term investment strategies should focus on a "barbell" approach, emphasizing technology growth and high-dividend stocks, particularly in sectors like telecommunications, utilities, and banking [3][23] - The report identifies several key stocks for July 2025 in both A-shares and Hong Kong markets, including Newguang, Gree Electric, Tencent Holdings, and Xiaomi Group, among others [3][29][32]

Investment Rating - The report maintains an "Overweight" rating for the basic chemical industry [6] Core Viewpoints - The report is optimistic about the domestic breakthroughs in COC materials, packaging materials, and semiconductor materials, emphasizing the importance of "domestic substitution" in achieving supply chain security and reducing production costs for end products [1][22] Summary by Sections Semiconductor Materials - The global semiconductor sales are projected to reach approximately $630.5 billion in 2024, representing a year-on-year growth of about 19.7%, with the Asia-Pacific region expected to see a growth of 17.5% [4][38] - The steady growth in the semiconductor market is anticipated to drive an increase in demand for semiconductor materials, including photoresists and electronic specialty gases [4][43] COC/COP Materials - COC/COP, a high-end optical material, has shown significant potential, with Akolai's thousand-ton production line entering trial production in Q3 2024 [2][29] - COC/COP materials are characterized by high thermal deformation temperature, high transparency, low birefringence, and low dielectric loss, making them ideal for optical components [25][28] - The domestic production of COC/COP is gaining momentum, with several companies, including Akolai, making strides in industrialization [28][29] PSPI Materials - PSPI combines the functions of photoresist and dielectric insulation layer, showing promise in integrated circuits and OLED applications [3][35] - Domestic companies like Aolide and Dinglong have achieved breakthroughs in the localization of PSPI, indicating a potential increase in domestic supply [3][36] Investment Recommendations - The report suggests focusing on high-value new materials, particularly semiconductor materials, OLED supply chains, and wind power materials [5] - It also highlights the importance of monitoring the development of new capacities in the semiconductor materials sector [43]

Investment Rating - The mechanical industry is rated as "Buy" (maintained) [1] Core Views - The report highlights the marginal decline in domestic demand for engineering machinery, while also emphasizing the advancements in humanoid robotics and related technologies [3][4][5] - The report suggests that 2025 will be a breakthrough year for humanoid robots, with mass production expected to drive the downstream supply chain [5] - The agricultural machinery market shows signs of improvement, with tractor exports increasing significantly [8] - The engineering machinery sector is experiencing short-term pressure on domestic sales, but export volumes are maintaining a growth trend [12] Summary by Relevant Sections Humanoid Robots - A joint research team has developed the world's first humanoid robot with high-resolution tactile perception and complete motion capabilities [3] - Tesla's CEO Elon Musk confirmed the integration of AI voice assistant Grok into the Optimus V3 humanoid robot [3] - Significant investments in humanoid robotics are being made, with companies like Galaxy General completing a financing round of 1.1 billion RMB [3][4] Machine Tools & Cutters - Japan's machine tool orders in May 2025 amounted to 128.716 billion JPY, with a year-on-year increase of 3.4% [6] - The report suggests that the machine tools and cutters sector is influenced by economic expectations, with potential improvements expected as policies are implemented [6] Agricultural Machinery - The agricultural machinery market sentiment index was reported at 43.5% in May 2025, indicating a slight year-on-year improvement [7] - Tractor exports from China increased by 12.3% in quantity and 31.1% in value during the first five months of 2025 [8] Engineering Machinery - In May 2025, excavator sales (including exports) reached 18,202 units, a year-on-year increase of 2.1% [12] - Domestic sales of excavators decreased by 1.5%, while export sales increased by 5.4% [12] - The report anticipates a recovery in demand for engineering machinery as infrastructure investment is expected to remain high [12] Forklifts - Forklift sales in May 2025 reached 123,472 units, a year-on-year increase of 11.8% [13] - The average working hours for forklifts increased by 22.5% month-on-month, indicating improved demand [13] Rail Transit Equipment - The report notes significant increases in the procurement of high-speed train maintenance projects by the National Railway Group [14] - The rail transit equipment sector is expected to benefit from increased railway investment and passenger flow recovery [14] Semiconductor Equipment - The report discusses the acceleration of domestic substitution for key semiconductor equipment due to increased tariffs [15][16] - The establishment of the third phase of the big fund, with a registered capital of 344 billion RMB, is expected to significantly boost the domestic semiconductor industry [16] New Energy Equipment - As of May 2025, the cumulative installed capacity of power generation in China reached 3.61 billion kW, a year-on-year increase of 18.8% [17] - The report highlights the rapid growth of photovoltaic power generation capacity, with a 57% year-on-year increase in new installations [17] Low-altitude Economy and EVTOL - Policies supporting the development of the low-altitude economy and EVTOL (Electric Vertical Takeoff and Landing) aircraft have been introduced in various regions [18][19] - The report emphasizes the potential for the low-altitude economy to drive new industries and consumer spending [19]

Macro Analysis - Industrial enterprises' profit growth turned negative in May due to factors such as weakened export support, expanded year-on-year decline in industrial product prices, and lower profit margins [2] - The previously high-profit growth in the midstream equipment manufacturing sector also turned negative [2] - Future recovery of industrial enterprise profits remains uncertain due to overseas demand fluctuations, low industrial product prices, and insufficient effective demand [2] Market Strategy - The most severe external risk disturbances may have passed, but vigilance towards potential policy changes from Trump is still necessary [3] - With a 90-day pause on "reciprocal tariffs" between China and the US, exports are expected to maintain high growth in the short term, with consumption being a key driver of economic recovery [3] - The market is anticipated to remain volatile in the short term, focusing on domestic consumption, domestic substitution, and low allocation of funds [3] Bond Market - The convertible bond market saw significant gains, with the index rising by 2.1% for the week, marking the highest increase of the year [4] - The overall performance of the convertible bond market has outperformed the equity market since the beginning of 2025, with a year-to-date increase of 6.6% [4] - Future market performance will be influenced by fundamentals and macro policies, particularly in sectors aimed at boosting domestic demand [4] Quantitative Analysis - The market displayed a small-cap style, with significant excess returns from block trading combinations [6] - The Beta factor and liquidity factor achieved positive returns of 1.06% and 0.37%, respectively, while the market capitalization factor and residual volatility factor recorded negative returns [6] - The block trading combination outperformed the overall index by 1.16% [6] Industry Research Computer Industry - The report emphasizes the potential of stablecoins in the internationalization of the RMB, suggesting investment opportunities in companies like Newland, Lakala, and Newland [10] - Ant Group's competitive advantages in compliance, technology, and market penetration are highlighted, recommending attention to companies like Hengsheng Electronics and Longxin Group [10] Internet Media - The gaming industry maintains a high level of prosperity, with strong consumer sentiment and a robust pipeline of new products for the summer [11] - Recommendations include Tencent, NetEase, and Perfect World, with a focus on innovative gameplay in various segments [11] Renewable Energy - The wind power sector is expected to see continuous improvement in profitability due to stable prices and cost reductions [12] - The report also highlights the importance of upcoming policies in the photovoltaic sector and suggests monitoring developments in solid-state batteries and energy storage [12] Non-Ferrous Metals - LME copper inventories have dropped to a 22-month low, with domestic air conditioning production expected to decline by 13% year-on-year [13] - The report anticipates strong copper prices in the short term, recommending investments in companies like Zijin Mining and Western Mining [13] Real Estate - The real estate sector shows weak beta but highlights structural alpha opportunities in core cities [17] - Sales in major cities increased by 14.4% from January to May 2025, with a recommendation to focus on companies like China Resources Land and China Jinmao [17] Agriculture - The pig farming sector is expected to recover as inventory levels decrease, with a long-term view of profitability growth [16] - Recommended companies include Juxing Agriculture and Muyuan Foods, as the industry moves towards a long-term upward cycle [16]

Investment Rating - The report maintains an "Accumulate" rating for the coal mining industry [6]. Core Viewpoints - The turning point for coking coal mine inventories has been observed, leading to a seasonal increase in coal prices. As of June 27, the inventory of raw coal at 523 coking coal mines was 6.835 million tons, a decrease of 179,000 tons week-on-week, marking the first decline since May [1]. - The average closing price of coking coal futures was 847.5 yuan/ton, up 6.6% week-on-week, indicating a positive trend in pricing [1]. - The average price of thermal coal at Qinhuangdao Port was 616 yuan/ton, reflecting a week-on-week increase of 7 yuan/ton (+1.15%) [2]. Summary by Sections Supply and Demand Tracking - The operating rate of 110 sample washing plants was 59.1%, down 2.2 percentage points week-on-week and 9.9 percentage points year-on-year, remaining at a five-year low [3]. - The average daily pig iron output was 2.4234 million tons, unchanged week-on-week and up 1.2% year-on-year [3]. - The outflow of water from the Three Gorges Dam was 17,843 cubic meters per second, an increase of 17.28% week-on-week [3]. Inventory Tracking - As of June 27, coal inventory at Qinhuangdao Port was 5.65 million tons, down 2.25% week-on-week and 5.52% year-on-year, returning to normal levels for the season [4]. - The inventory at independent coking plants was 6.7863 million tons, up 1.95% week-on-week, while the inventory at sample steel mills was 7.8121 million tons, up 0.85% week-on-week [4]. Key Company Profit Forecasts and Valuation - China Shenhua (601088.SH) is forecasted to have an EPS of 2.5 yuan in 2025, with a PE ratio of 16, rated as "Accumulate" [5]. - Shanxi Coking Coal (000983.SZ) is expected to have an EPS of 0.37 yuan in 2025, with a PE ratio of 17, also rated as "Accumulate" [5]. - The report highlights stable profitability for companies with a high proportion of long-term contracts, recommending China Shenhua and China Coal Energy [4].