Investment Rating - The report maintains an "Overweight" rating for the non-ferrous metals sector [6] Core Viewpoints - The suspension of export restrictions to the U.S. is expected to boost China's antimony exports, which accounted for 36% of the country's antimony production in 2023 [2] - The price gap between domestic and international antimony is anticipated to narrow as exports resume [3] - Antimony prices have shown significant fluctuations influenced by export policies and demand changes, with a notable increase of 68% from February 10 to April 17, 2025 [4] Summary by Sections Export Policy Impact - The Ministry of Commerce announced a one-year suspension of export restrictions to the U.S., which is expected to lead to a recovery in antimony exports [2] - The announcement includes stricter controls on dual-use items, particularly for military applications [2] Price Trends - Antimony ingot prices rose from 143,000 CNY/ton to 240,000 CNY/ton between February 10 and April 17, 2025, before declining to 150,000 CNY/ton by November 6, 2025 [4] - The price of antimony in the UK was approximately 31.7 million CNY/ton as of November 7, 2025, indicating a significant premium over domestic prices [3] Investment Recommendations - The report suggests monitoring companies such as Huaxi Nonferrous Metals, Hunan Gold, and Huayu Mining, as the resumption of exports is expected to support domestic antimony prices [4]

Investment Rating - The report maintains a "Buy" rating for the banking industry, indicating an expected investment return exceeding the market benchmark by over 15% in the next 6-12 months [1]. Core Insights - In October 2025, new RMB loans amounted to 220 billion, a year-on-year decrease of 280 billion, with a growth rate of 6.5%, down 0.1 percentage points from the end of September [1][2]. - The total social financing scale in October was 815 billion, a year-on-year decrease of 597 billion, with a growth rate of 8.5%, down 0.2 percentage points from the end of September [1][2]. - The report highlights a seasonal slowdown in credit expansion due to insufficient demand, with corporate production activities experiencing a seasonal decline influenced by holiday periods and uncertainties from US-China tariff frictions [2][3]. Summary by Sections Loan Growth and Social Financing - New RMB loans in October were 220 billion, significantly lower than the expected 460 billion, reflecting a weak demand environment [2]. - Cumulatively, since the beginning of the year, new RMB loans totaled 15 trillion, a year-on-year decrease of 1.6 trillion, indicating a low credit issuance sentiment in the second half of the year [2][3]. Credit Demand and Economic Activity - The manufacturing PMI for October was 49%, indicating a contraction in manufacturing activity, with both production and demand indices weakening [2]. - The report suggests that the weak demand environment is likely to persist, with a projected total new loan issuance of 16.5 trillion for the year, down 1.6 trillion year-on-year [3]. Policy and Future Outlook - The report identifies potential areas for stable credit issuance, including the expansion of policy financial tools and support for specific consumption loans [3]. - It emphasizes the importance of stabilizing credit supply to support economic recovery, particularly in the context of local government debt and consumption policies [3]. Social Financing Structure - In October, the social financing scale showed a continued downward trend, with a notable decrease in government bond issuance contributing to the slowdown [33][34]. - The report indicates that the growth rate of M2 and M1 has been declining, with M2 growth at 8.2% and M1 at 6.2% in October [40][41]. Loan Composition - The report details the composition of loans, with corporate loans showing a mixed performance, while residential loans experienced a significant decline [25][26]. - The weighted average interest rate for new corporate loans remained at 3.1%, indicating stable pricing in a low-demand environment [29][30]. Conclusion - Overall, the report presents a cautious outlook for the banking industry, highlighting the need for policy support to stimulate credit demand and economic activity in the coming months [3][34].

Investment Rating - The report assigns a "Buy" rating to WeRide (0800.HK) for its potential in the L4 autonomous driving market [4]. Core Insights - WeRide is a leading player in the global L4 autonomous driving sector, with operations in 11 countries and 30 cities, and holds autonomous driving licenses in seven countries, making it unique in the industry [1][15]. - The company has shown significant revenue growth, with FY25H1 revenue reaching 200 million RMB, a year-on-year increase of 32.8%, driven by a substantial 230% increase in product revenue [1]. - The Robotaxi business is expected to benefit from cost reductions and supportive policies, with a projected global market size of 66.6 billion USD by 2030 [2][44]. Summary by Sections Company Overview - WeRide was established in 2017 and plans to go public on NASDAQ in October 2024, aiming to be the first global autonomous driving stock [1][15]. - The company has a comprehensive technology stack from L2 to L4, providing solutions for mobility, logistics, and sanitation [1][15]. Robotaxi Business - The Robotaxi segment is focusing on cost reduction through various strategies, including decreasing hardware costs and optimizing the remote safety operator model [2][32]. - The company is expanding its Robotaxi operations in the Middle East, with significant growth in fleet size and revenue [3][4]. Financial Projections - Revenue forecasts for WeRide are 587 million RMB in 2025, 1.13 billion RMB in 2026, and 2.02 billion RMB in 2027, with corresponding price-to-sales (P/S) ratios of 34x, 17x, and 10x [5][4]. - The company is expected to achieve a gross profit of 60 million RMB in FY25H1, reflecting an 11.5% year-on-year increase [1]. Market Potential - The global Robotaxi market is projected to grow significantly, with China expected to capture a substantial share, reaching 39 billion USD by 2030 [44]. - The report highlights that the current penetration rate of Robotaxi in China is low, indicating significant growth potential as technology and policies evolve [44].

Core Insights - The report highlights a positive outlook for the automotive and auto parts sector, particularly focusing on structural investment opportunities in components and the potential of AI and robotics in the industry [3] - Tencent Music's subscription growth and the increasing penetration of SVIP are driving revenue from non-subscription businesses, although there are slight adjustments to profit forecasts due to expected fluctuations in gross margins [4] Industry Research - The automotive sector is expected to experience a downward trend in Beta overall by 2026, with a focus on structural investment opportunities in auto parts [3] - Recommended stocks include NIO and Xpeng Motors for complete vehicles, while for auto parts, Fuyao Glass is highlighted for its strong performance and overseas expansion, along with Wuxi Zhenhua, Huguang Co., and Bojun Technology for their attractive valuations [3] - The report suggests monitoring human-shaped robots, recommending companies like Junsheng Electronics and Shuanglin Co. [3] Company Research - Tencent Music's subscription model is showing steady growth, with SVIP development boosting ARPPU, and non-subscription revenue streams such as advertising and live performances contributing positively [4] - The report anticipates fluctuations in gross margin due to the expansion of low-margin businesses like concerts, leading to a slight downward revision of the adjusted net profit forecast for 2025-2027 to CNY 9.7 billion, CNY 10.98 billion, and CNY 12.51 billion respectively, reflecting a decrease of 1.4%, 4.6%, and 3.7% from previous estimates [4]

1. Report Industry Investment Rating - No investment rating for the industry is provided in the report. 2. Core Viewpoints of the Report - The growth of credit, M2, and social financing in October may not be as low as it seems. Considering the 'past - future' and'surface - intrinsic' relationships, there is no need to be pessimistic about the future growth of credit, M2, and social financing [1][2]. - The use of 500 billion yuan of new policy - based financial instruments by the three policy banks is expected to drive total project investment to exceed 7 trillion yuan, which will support the growth of future financial data [1]. - The new policy - based financial instruments can effectively alleviate the problem of 'lack of project capital' and leverage large - scale credit demand [2]. 3. Summary by Relevant Catalogs 3.1 Understanding October's Financial Data from Two Relationships - In October 2025, M1 balance increased by 6.2% year - on - year, remaining at a relatively high level in the past three years. New loans in October were 22 billion yuan, the increment of social financing scale was 81.5 billion yuan, and M2 balance increased by 8.2% year - on - year [1]. 3.2 'Past and Future' Relationship - The financial data in October only represents the past, and more attention should be paid to future data changes. The 500 - billion - yuan quota of new policy - based financial instruments has been fully used by the end of October, which is expected to drive project investment of over 7 trillion yuan [1]. - The new policy - based financial instruments can effectively solve the problem of 'lack of project capital' and leverage large - scale credit demand. There is no need to be pessimistic about the future growth of credit, M2, and social financing [2]. 3.3 'Surface and Intrinsic' Relationship - When analyzing financial data, attention should be paid to the intrinsic logic behind the data changes. In this stage, the impact of local government debt resolution and risk mitigation of small and medium - sized financial institutions on credit should be fully restored [3]. - Local government debt resolution and risk mitigation of small and medium - sized financial institutions may drag down the apparent growth of financial aggregates, but they are beneficial to economic growth and do not mean a reduction in the support of finance to the real economy [3].

Investment Rating - The report maintains a "Buy" rating for Tencent Music (TME.N) [5] Core Insights - Tencent Music's total revenue for Q3 2025 reached 8.46 billion RMB, a year-over-year increase of 20.6%, surpassing Bloomberg's consensus estimate of 8.23 billion RMB, driven by better-than-expected growth in non-subscription revenue [1] - The adjusted net profit attributable to the parent company for Q3 2025 was 2.405 billion RMB, reflecting a year-over-year growth of 32.6% [1] - The online music revenue was 6.97 billion RMB, up 27.2% year-over-year, accounting for 82.3% of total revenue, while social entertainment services and other revenues declined by 2.7% [1] Revenue Structure Summary - Subscription revenue reached 4.50 billion RMB, growing 17.2% year-over-year, with a music MAU of 551 million, a decrease of 4.3% year-over-year [2] - The number of paid subscribers increased by 5.6% year-over-year to 126 million, with a net addition of 1.3 million users from the previous quarter [2] - Non-subscription revenue was 2.47 billion RMB, showing over 50% year-over-year growth, with strong performance in advertising and live events [2] Expense Summary - Total expenses for Q3 2025 were 1.31 billion RMB, a year-over-year increase of 7.6%, with sales and marketing expenses rising by 18.2% due to increased content promotion and channel spending [3] Profit Forecast and Valuation Summary - The adjusted net profit forecast for 2025-2027 has been slightly revised down to 9.70 billion RMB, 10.98 billion RMB, and 12.51 billion RMB, respectively [3] - Revenue projections for 2025, 2026, and 2027 are 32.78 billion RMB, 37.30 billion RMB, and 41.92 billion RMB, with growth rates of 15.4%, 13.8%, and 12.4% respectively [4]

Macro Analysis - The 2025 Q3 monetary policy execution report affirms the resilience of the domestic economy and alleviates concerns about domestic inflation and global economic recession. The report suggests that monetary policy should focus on "counter-cyclical and cross-cyclical adjustments," indicating a potential increase in easing measures [1] - The report highlights the need to monitor the implementation of policies supporting personal credit repair, as credit policy remains a key focus area [1] - The central bank's concerns regarding the RMB exchange rate have lessened, with a greater emphasis on the positive impact of exchange rate stability on the economy and markets [1] Industry Research - The gradual improvement of the capacity electricity price mechanism is a continuous benefit for the energy storage industry. Inner Mongolia maintains a high level of energy storage subsidies, ensuring considerable energy storage installation growth in the coming year [2] - The market has high expectations for domestic energy storage installations next year, with a focus on monitoring the production of energy storage cells in December and January, as well as upcoming bidding and installation situations [2] - The overall industry remains in a state of sustained prosperity, with investment opportunities particularly in energy storage system integrators, PCS companies, and tight supply-demand segments within the energy storage cell supply chain [2] Company Research - The company reported a revenue of $1.324 billion in Q3 2025, representing a year-on-year increase of 13%, and a net profit of $74 million, up 9% year-on-year. The net profit forecast for 2025 is maintained at $171 million [4] - The company has made substantial progress in the high-speed interconnect field, gaining customer recognition, which is expected to drive accelerated growth in its data center business. The net profit forecasts for 2026 and 2027 have been raised by 23% and 29% to $297 million and $400 million, respectively [4] - The company is anticipated to continue benefiting from the growth in AI data centers and automotive cable demand, maintaining a "buy" rating [4] Health Sector Insights - There is a noticeable increase in flu-like cases, which may heighten public and market interest, potentially driving demand for flu vaccines, virus testing, and related medications [3]

Investment Rating - The report maintains a "Buy" rating for the company, indicating expected returns exceeding the market benchmark by more than 15% over the next 6-12 months [4]. Core Insights - The company reported a revenue of $1.324 billion in Q3 2025, representing a year-on-year increase of 13%, and a net profit of $74 million, up 9% year-on-year, with a net profit margin of 5.62% [1]. - The growth in revenue is attributed to increased contributions from AI server-related products, ongoing production efficiency improvements, and stable shipments of high-margin products [1]. - The data center and electric vehicle (EV) businesses experienced significant revenue growth, while smartphone revenue declined [1][2]. Summary by Sections Revenue and Profit Performance - In Q3 2025, revenue from various segments was as follows: smartphones $210 million (down 20%), data centers $215 million (up 34%), computers and consumer electronics $221 million (no change), electric vehicles $240 million (up 116%), and system terminal products $382 million (up 3%) [1][3]. - The company has raised its revenue growth guidance for system terminal products for Q4 2025, while maintaining the overall revenue growth guidance for the year [1]. Business Segments - The data center business is expected to maintain double-digit growth (over 15% year-on-year) in Q4 2025 and for the full year, driven by increased demand for AI server products [2]. - The automotive business saw a 116% year-on-year increase in revenue, supported by the One Mobility strategy and rising demand for data connectivity and high-power solutions [3]. - The system terminal products segment is projected to have stable revenue in Q4 2025, with a slight decline expected for the full year [3]. Financial Forecasts and Valuation - The net profit forecast for 2025 is $171 million, with subsequent years projected at $297 million for 2026 and $400 million for 2027, reflecting growth rates of 11.4% and 73.7% respectively [5]. - The company’s price-to-earnings (P/E) ratios are projected to be 29x for 2025, 17x for 2026, and 12x for 2027, indicating a favorable valuation outlook [4].

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology industry [1]. Core Insights - The incidence of influenza-like illness (ILI) has increased, with southern provinces reporting an ILI percentage of 4.6% in the 44th week of 2025, up from 4.1% the previous week and higher than the same period in 2022 (3.1%) and 2024 (3.3%), but lower than 2023 (5.9%). Northern provinces reported an ILI percentage of 5.1%, also higher than previous years [3][4]. - The report indicates a significant rise in flu cases compared to historical levels, suggesting a potential risk for a severe flu season in 2025 due to changes in circulating strains and the possibility of breaching herd immunity [3]. Summary by Sections Influenza Vaccine - The report highlights the low penetration rate of influenza vaccines in China, suggesting that the anticipated rise in flu cases could lead to increased demand for vaccines. Companies such as Hualan Biological Engineering, Baike Biological, and Gendik are recommended for investment [4]. Virus Detection - There is an expected increase in demand for respiratory virus diagnostic products due to the rise in respiratory infections. Companies with relevant products, such as Innotec, Shengxiang Biological, Botao Biological, and Wanfu Biological, are highlighted as potential beneficiaries [4]. Cold and Specialty Drugs - The demand for cold medications is expected to rise in Q4 2025, with sales likely exceeding market expectations. Companies such as Zhongsheng Pharmaceutical, China Resources Sanjiu, Kangyuan Pharmaceutical, Fangsheng Pharmaceutical, Jichuan Pharmaceutical, Yiling Pharmaceutical, Dongyangguang Pharmaceutical, Jian Kangyuan, and Te Yi Pharmaceutical are recommended for investment [5].

Economic Overview - The GDP growth for the first three quarters of 2025 is 5.2%, slightly down from 5.3% in the first half of the year, indicating a stable yet slightly slowing economy[3] - Social retail sales increased by 4.5% year-on-year, accelerating by 1.2 percentage points compared to the previous year, with final consumption contributing 53.5% to GDP growth[3] - Manufacturing investment grew by 4.0%, outperforming total investment growth by 4.5 percentage points, with high-tech industries showing significant investment increases[3] Inflation and Price Trends - Inflation concerns have eased, with the CPI rising to 0.2% year-on-year in October 2025, and the PPI's year-on-year decline narrowing to 2.1%[4] - Core CPI has shown a strong recovery, increasing to 1.2% year-on-year, marking six consecutive months of growth[4] - The report indicates a need for coordinated macro policies to promote reasonable price recovery amid various influencing factors[4] Global Economic Concerns - The report expresses heightened concerns about the cooling labor market in overseas economies, contrasting with previous assessments of strong labor markets in developed economies[5] - In September 2025, the U.S. CPI rose by 3.0%, below expectations, influenced by declines in housing and used car prices, while other major economies also reported high inflation rates[5] - The report notes a significant drop in U.S. non-farm employment growth, with only 22,000 jobs added in August, compared to 71,000 in the same month last year[5] Monetary Policy Adjustments - The report emphasizes the need for "counter-cyclical and cross-cyclical adjustments" in monetary policy, reflecting a shift from observation to active policy implementation[7] - The central bank has resumed buying government bonds, with a net purchase of 20 billion yuan in October 2025, indicating a potential increase in monetary easing[9] - The focus on credit policy remains on optimizing structure and supporting key areas, with new measures to assist personal credit recovery expected to be implemented by early 2026[10] Currency Stability - Concerns regarding the RMB exchange rate have diminished, with the report suggesting that the current level is acceptable to the central bank, focusing on the positive impact of exchange rate stability on the economy[11] - The report highlights the importance of maintaining a stable exchange rate to support foreign trade and cross-border capital flows[11]