Investment Rating - The industry investment rating is "Buy" [1] Core Insights - The report emphasizes the continuous rise in UCO prices, benefiting the profitability of kitchen waste and solid waste companies. As of December 13, the industrial-grade mixed oil port price reached 6700-6800 CNY/ton, a significant increase from 6100 CNY/ton before the tax rebate cancellation [12] - The report suggests focusing on companies such as 聚光科技 (Juguang Technology), 中再资环 (China Recycled Resources), 瀚蓝环境 (Hanlan Environment), 金科环境 (Jinke Environment), 大地海洋 (Dadi Ocean), 中金环境 (Zhongjin Environment), 武汉控股 (Wuhan Holdings), and 朗坤环境 (Langkun Environment) [11] - Recent favorable developments in the environmental sector include 粤海投资 (Yuehai Investment) divesting its real estate business and 威派格 (Weipai Ge) accelerating AI applications in water management [12] - The report highlights the role of state-owned enterprises in debt restructuring and emphasizes the potential for significant transformations through mergers, acquisitions, and asset securitization [12] Summary by Sections Section 1: Policy Review - The Central Economic Work Conference reiterated the importance of promoting carbon reduction and green growth, emphasizing the need for a comprehensive green transformation in the economy [33] Section 2: Key Company Announcements - Recent announcements from companies like 粤海投资 (Yuehai Investment) and 军信股份 (Junxin Co.) indicate strategic shifts towards core water management operations and AI-driven solutions in water usage [24][12] Section 3: Market Trends - The report notes that the environmental sector's valuation is at historical lows since 2015, presenting potential opportunities for bottom reversal [26] Section 4: Company Focus - The report identifies three categories of companies to watch: those with significant state-owned enterprise backing, those facing performance declines with strong reform demands, and those with valuable assets that could be injected into the company [34] Section 5: Dividend Potential - The report highlights over 50 companies with strong dividend potential, with average dividend yields of 2.88% for A-shares and 4.92% for H-shares in 2023, indicating a focus on high-dividend sectors like solid waste and water management [38]

Investment Rating - The report gives a "Buy" rating for the company with a target price of 60.09 CNY per share [6] Core Views - The company focuses on original innovation in small molecule drugs, particularly in the oncology field, with 6 globally competitive product pipelines and 2 commercialized products [3] - Sunvozertinib (舒沃替尼) is the first domestically developed drug for EGFR Exon20ins mutation NSCLC, filling a treatment gap and has submitted an NDA to the FDA [4] - Golvatinib (戈利昔替尼) is the first JAK1 inhibitor approved for R/R PTCL, offering advantages in efficacy and safety [4] - Early-stage pipelines like DZD8586 (BTK/LYN inhibitor) and DZD2269 (A2aR antagonist) show potential for overcoming drug resistance and providing new treatment options [5] Financial Forecasts - Revenue is expected to grow from 540 million CNY in 2024 to 1.684 billion CNY in 2026, driven by core product sales [5] - EPS is projected to improve from -2.19 CNY in 2024 to -0.50 CNY in 2026 [5] Company Overview - The company specializes in small molecule drug R&D, with a focus on oncology and immunology, and has a strong management team with extensive industry experience [44][45] - It has established 6 globally competitive product pipelines, with 2 products already commercialized [44] Product Pipeline - Sunvozertinib: Approved in China for EGFR Exon20ins mutation NSCLC, with global Phase III trials ongoing [4][44] - Golvatinib: Approved in China for R/R PTCL, with potential for first-line maintenance therapy [4][96] - DZD8586: A novel BTK/LYN inhibitor with potential to overcome BTK resistance, currently in Phase I/II trials [5][52] - DZD2269: A selective A2aR antagonist in Phase I trials for prostate cancer [5] - DZD1516: A HER2 inhibitor with blood-brain barrier penetration, effective for heavily pretreated HER2+ breast cancer [5] Market and Industry Analysis - EGFR Exon20ins mutation NSCLC represents a significant unmet clinical need, with Sunvozertinib being the first domestically developed drug targeting this mutation [57][58] - PTCL has a poor prognosis, and Golvatinib is the only JAK1 inhibitor approved for this indication, offering a new treatment option [96] - BTK inhibitors have revolutionized the treatment of B-cell lymphomas, but resistance remains a challenge, which DZD8586 aims to address [105][106]

Investment Rating - The industry investment rating is "Buy" [3] Core Insights - The report indicates that fiscal spending and expectations of reserve requirement ratio cuts are driving year-end liquidity easing [41] - The central bank conducted a net injection of 184.4 billion CNY through reverse repos this week, with a focus on maintaining liquidity amid upcoming large MLF maturities [41][42] - Government bond net payments are expected to decrease significantly in the upcoming period, indicating a shift towards increased fiscal spending [41][42] Summary by Sections 1. Fiscal Spending and Reserve Requirement Ratio Expectations - The central bank's operations included 538.5 billion CNY in 7-day reverse repos at a rate of 1.50%, with a net injection of 184.4 billion CNY [41] - Government bond net payments were 749.9 billion CNY this period, with expectations of a decline to approximately -34.0 billion CNY next period [41][42] 2. Central Bank Dynamics and Market Interest Rates - The report notes changes in funding rates, with DR001, DR007, DR014, DR021, and DR1M showing variations of -7.7bp, +2.6bp, +6.4bp, +17.4bp, and +12.3bp respectively [43] - The report highlights a downward trend in government bond yields, influenced by a recent political bureau meeting advocating for more proactive fiscal policies [45] 3. Bank Financing Tracking - The issuance of negotiable certificates of deposit (NCD) totaled 954.4 billion CNY, with a net financing scale of 587.0 billion CNY [44] - The average yield on NCDs showed mixed results, with 1M rates increasing by 2.1bp while longer-term rates decreased [44] - The total outstanding amount of interbank certificates of deposit reached 18.71 trillion CNY, with an average remaining maturity of 157 days [48]

Industry Rating - The report assigns a **Buy** rating to the Defense and Military Industry, indicating a positive outlook for the sector [3] Core Views - The industry is expected to see accelerated improvement as the "14th Five-Year Plan" concludes and the "15th Five-Year Plan" is formulated, with a focus on the aviation sector [18] - The shipbuilding sector is expected to maintain steady growth, with significant orders such as a 17 billion RMB contract for LNG dual-fuel container ships [19] - Satellite and rocket development is progressing rapidly, with multiple launches planned for late 2024 and early 2025, including the Long March 8A and Long March 5B rockets [19] - The report highlights four key investment strategies for 2025, focusing on ROE growth, turnaround opportunities, emerging trends, and state-owned enterprise reforms [20] Company Summaries Aero Engine Corporation (航发动力) - Expected to benefit from high-end aviation equipment production and long-term maintenance demand, with projected revenue of 497.62 billion RMB in 2024 [21] - Forecasted net profit for 2024-2025 is 15.22 billion RMB and 19.29 billion RMB, respectively, with a 2024 PE ratio of 71X [21] AVIC Xi'an Aircraft Industry (中航西飞) - A major manufacturer of military and civilian aircraft, with expected revenue growth of 11.9% in 2024 [24] - Forecasted net profit for 2024-2026 is 10.21 billion RMB, 12.83 billion RMB, and 15.83 billion RMB, respectively, with a 2024 PE ratio of 72X [24] AVIC Heavy Machinery (中航重机) - Expected to benefit from the aviation equipment supply chain and global maintenance markets, with a projected profit target of 18.6 billion RMB in 2024 [25] - Forecasted net profit for 2024-2026 is 15.76 billion RMB, 19.01 billion RMB, and 23.48 billion RMB, respectively, with a 2024 PE ratio of 19X [25] Raytron Technology (睿创微纳) - A leader in non-cooled infrared technology, with significant growth potential in military and civilian applications [27] - Forecasted net profit for 2024 is 6.52 billion RMB, with a 2024 PE ratio of 33X [27] Guorui Technology (国睿科技) - Focused on radar and low-altitude economy, with significant contracts in meteorological and low-altitude surveillance projects [28] - Forecasted net profit for 2024-2025 is 6.94 billion RMB and 9.89 billion RMB, respectively, with a 2024 PE ratio of 36X [28] Guangwei Composites (光威复材) - A key supplier in the aerospace carbon fiber market, with significant growth potential in satellite and missile applications [29] - Forecasted net profit for 2024-2026 is 9.30 billion RMB, 12.84 billion RMB, and 15.84 billion RMB, respectively, with a 2024 PE ratio of 30X [29] China Shipbuilding Industry Corporation (中国动力) - Expected to benefit from the shipbuilding cycle and engine technology advancements, with significant growth in maintenance and repair markets [31] - Forecasted net profit for 2024-2026 is 11.88 billion RMB, 16.90 billion RMB, and 25.67 billion RMB, respectively, with a 2024 PE ratio of 47X [31] AVIC Shenyang Aircraft (中航沈飞) - A leading manufacturer of fighter jets, with significant growth potential in military trade and maintenance markets [32] - Forecasted net profit for 2024-2026 is 37.59 billion RMB, 46.69 billion RMB, and 57.42 billion RMB, respectively, with a 2024 PE ratio of 36X [32] AVIC Optoelectronics (中航光电) - A leader in military connectors, with significant growth potential in aerospace, shipbuilding, and new energy sectors [33] - Forecasted net profit for 2024-2026 is 36.97 billion RMB, 44.88 billion RMB, and 53.70 billion RMB, respectively, with a 2024 PE ratio of 22X [33] Unigroup Guoxin (紫光国微) - A leader in integrated circuits, with significant growth potential in military and civilian applications [35] - Forecasted net profit for 2024-2026 is 28.07 billion RMB, 35.00 billion RMB, and 41.13 billion RMB, respectively, with a 2024 PE ratio of 39X [35] Zhongke Xingtu (中科星图) - Focused on the digital earth and low-altitude economy, with significant growth potential in satellite and AI applications [36] - Forecasted net profit for 2024-2026 is 4.86 billion RMB, 6.83 billion RMB, and 9.30 billion RMB, respectively, with a 2024 PE ratio of 64X [36] CETC 712 (七一二) - A leader in military wireless communication, with significant growth potential in satellite and AI applications [38] - Forecasted net profit for 2024-2026 is 1.75 billion RMB, 4.10 billion RMB, and 5.26 billion RMB, respectively, with a 2024 PE ratio of 89X [38] Haige Communications (海格通信) - A leader in military communication and navigation, with significant growth potential in satellite and AI applications [39] - Forecasted net profit for 2024-2026 is 4.62 billion RMB, 9.20 billion RMB, and 12.92 billion RMB, respectively, with a 2024 PE ratio of 69X [39]

Investment Rating - Industry rating: Buy [1] Core Views - The report highlights that the overall pig output of listed companies in November 2024 showed a slight increase, with an average weight increase of 3.8% month-on-month. The total output of commodity pigs reached 14.06 million heads, a month-on-month increase of 0.5% and a year-on-year increase of 12.6% [4][23][24]. - The average selling price for November was estimated at 16.68 CNY/kg, down 5.1% month-on-month but up 17.7% year-on-year [4][24]. - The report suggests that the industry is expected to maintain a moderate recovery in pig production capacity in the second half of 2024, with a prolonged period of industry prosperity anticipated. Current valuations in the sector are at historical lows, recommending major breeding companies such as Wens Foodstuffs and Muyuan Foods, while also paying attention to New Hope and Zhengbang Technology for potential operational reversals [4][25]. Summary by Sections Section 1: Weekly Insights - The report discusses the November output data from major pig farming companies, indicating a slight increase in output and average weight [4][23]. - The total output of commodity pigs for November was 14.06 million heads, with a year-to-date increase of 5.6% for listed companies [4][24]. Section 2: Industry Tracking - The agricultural sector outperformed the market by 3 percentage points, with the feed, animal health, and aquaculture sectors showing the highest gains [42]. Section 3: Agricultural Product Price Tracking - As of December 13, the national average price for lean pigs was 15.7 CNY/kg, a slight decrease of 0.1% week-on-week but an increase of 14.4% year-on-year [38][46]. - The average price for piglets was 447.2 CNY/head, down 5.6% week-on-week [38][53]. - The report also notes that chicken prices remained stable, with the average price for broilers at 3.8 CNY/jin [38][58]. Section 4: Company Performance - Specific companies such as Muyuan Foods, Wens Foodstuffs, and New Hope reported varying output and sales figures, with some experiencing significant year-on-year growth while others faced declines [24][41]. - For instance, Muyuan Foods reported an output of 638.3 thousand heads in November, with a year-on-year increase of 20.5% [37]. Section 5: Price Trends - The report tracks price trends for various agricultural products, indicating fluctuations in prices for corn, soybean meal, and wheat, with corn prices at 2147 CNY/ton, down 0.4% week-on-week [38][46]. - The report also highlights the profitability of self-breeding versus purchased piglets, with self-breeding yielding a profit of 133 CNY/head [46][57].

[Table_Grade] 行业评级 买入 前次评级 买入 报告日期 2024-12-15 SAC 执证号：S0260522070007 SFC CE No. BVB342 Xm l [Table_Page] 跟踪分析|房地产 证券研究报告 [Table_Title] 房地产及物管行业 24 年第 50 周周报 认购网签仍维持较高水平，中央稳楼市表态提级 [Table_Summary] 核心观点： 本周政策情况：持续用力推动止跌回稳，提振房地产市场预期。中央方 面，政治局召开会议，强调要实施更加积极的财政政策和适度宽松的货 币政策，要积极稳妥化解房地产风险，一视同仁满足不同所有制房地产 企业的合理融资需求，促进房地产市场平稳健康发展。地方政策方面， 长沙收购 436 套存量房作保障房，昆明提出进一步盘活存量，提升空 间利用效率，促进土地集约复合利用，广西收购商品房作保障房，广 西、襄阳、运城出台房票安置相关政策。 本周基本面情况：新房成交环比有下降，二手成交热度维持高位。据 Wind 及克尔瑞，本周 50 城新房成交面积 541.2 万方，环比下降 2.5%， 同比上升 17.2%。二手房方面，本周 13 城 ...

Industry Rating - The industry rating is **Buy** [1][2] Core Views - The CITIC media sector rose by 3.18% this week (Dec 9-13), outperforming the Shanghai Composite Index by 3.54 percentage points [4] - AI models and applications continue to land, boosting sector confidence, with related stocks showing significant gains [4] - The Ministry of Finance announced a 4-year extension of tax incentives for cultural institutions transitioning to enterprises, benefiting publishing and broadcasting sectors [4] - The Politburo meeting emphasized boosting consumption and expanding domestic demand, with cyclical sectors expected to benefit from economic recovery [4] Investment Recommendations Internet - Internet companies' PE ratios are generally in the high single-digit to low double-digit range for 2025 earnings expectations [5] - Recommended stocks: Tencent Holdings, Tencent Music, NetEase Cloud Music, Meituan, Kuaishou, Bilibili, Weibo, and Pop Mart [5] Gaming - The gaming sector is recommended due to policy improvements and strong market growth [5] - Recommended stocks: Perfect World, Century Huatong,恺英网络,姚记科技,创梦天地,神州泰岳,三七互娱,吉比特,电魂网络,冰川网络 [5] Publishing - Tax exemption policies for state-owned publishing enterprises have been extended for 4 years, enhancing dividend capabilities and investment value [5] - Recommended stocks: 中南传媒,皖新传媒,长江传媒,凤凰传媒,时代出版 [5] Film - The film industry is expected to see a supply inflection point, with the 2025 Spring Festival lineup potentially setting new box office records [5] - Recommended stocks: 猫眼娱乐,万达电影,光线传媒,阿里影业,博纳影业 [5] Marketing - Advertising confidence is expected to strengthen with macroeconomic recovery [5] - Recommended stocks: 分众传媒,兆讯传媒,蓝色光标,易点天下,引力传媒,因赛集团,省广集团 [5] State-Owned Enterprise Reform - Focus on state-owned enterprise reform and market value management [5] - Recommended stocks: 新媒股份,华数传媒,东方明珠,芒果超媒,中广天择,上海电影,唐德影视,电广传媒 [5] Key Company Performance Meituan-W - Q3 revenue: RMB 93.577 billion, up 22.38% YoY [42] - Q3 GAAP net profit: RMB 12.865 billion [42] - Core local commerce revenue: RMB 69.373 billion, up 20.25% YoY [42] Tencent Holdings - Q3 revenue: RMB 65.79 billion, up 8.0% YoY [42] - Q3 adjusted net profit: RMB 221.8 billion, up 45.0% YoY [42] Baidu - Q3 revenue: RMB 33.557 billion, down 3% YoY [43] - Q3 non-GAAP net profit: RMB 5.886 billion, down 19% YoY [43] Kuaishou-W - Q3 revenue: RMB 31.1 billion, up 11% YoY [47] - Q3 non-GAAP net profit: RMB 3.948 billion, up 24% YoY [47] Bilibili - Q3 revenue: RMB 7.3 billion, up 26% YoY [48] - Q3 non-GAAP net profit: RMB 236 million [48] 37 Interactive Entertainment - Q3 revenue growth driven by small games and stable operation of old games [49] - Q3 cash dividend: RMB 0.21 per share [49] Focus Media - Q3 advertising revenue driven by FMCG and internet sectors [52] - Expected 2024-25 revenue: RMB 12.612 billion and RMB 13.341 billion [52] Industry Data Film Market - Weekly box office (Dec 8-14): RMB 298 million, down 12.22% week-on-week [56] - Top 5 films: "好东西" (RMB 83.205 million), "孤星计划" (RMB 52.143 million), "破·地狱" (RMB 29.821 million), "误判" (RMB 22.714 million), "因果报应" (RMB 16.684 million) [56] TV Drama Market - Top 5 dramas by broadcast index: "我是刑警" (84.4), "猎罪图签2" (82.5), "九重紫" (82.3), "永夜星河" (81.8), "白夜破晓" (81.7) [62] Variety Show Market - Top 5 variety shows by broadcast index: "再见爱人第四季" (80.1), "现在就出发 第2季" (77.9), "奔跑吧茶马古道篇" (77.7), "生生不息大湾区季" (77.0), "种地吧第二季" (75.1) [67] Gaming Market - Top 5 mobile games: "王者荣耀", "金铲铲之战", "地下城与勇士：起源", "无尽冬日", "和平精英" [70] VC/PE Investments - Total of 9 VC/PE investments this week (Dec 9-13) [78] - Education: 3 investments [78] - Gaming: 1 investment [78] - Entertainment: 1 investment [78] - Local services: 4 investments [78]

Investment Rating - The industry investment rating is "Buy" [3]. Core Views - The Taiwan electronics index increased by 36.3% from the beginning of 2024 to the end of November, while the monthly decline in November was -0.4% [3][16]. - The revenue growth rates for key segments in the Taiwan electronics sector include: foundry services (YoY +31.2%), analog IC (YoY +10.9%), and assembly and terminals (YoY +9.7%) [30][42]. - The report suggests focusing on investment opportunities in AI server supply chains, mobile optical components, and advanced packaging industries [3][30]. Summary by Sections 1. Taiwan Electronics Sector Review for November 2024 - The performance of major electronic indices from January 2024 to November 2024 shows the following changes: Philadelphia Semiconductor Index +22.5%, Shenwan Electronics Index +19.9%, Shenwan Semiconductor Index +27.5%, and Taiwan Electronics Index +36.3% [16]. - The monthly performance for November 2024 indicates declines across several indices, with the Taiwan Weighted Index down by -2.4% [16]. 2. Revenue Situation of Key Taiwanese Electronics Companies (a) Segment Comparison - The fastest-growing segments in terms of revenue include foundry services (YoY +31.2%), analog IC (YoY +10.9%), and assembly and terminals (YoY +9.7%) [30]. (b) Foundry Services - TSMC reported revenue of NT$276.1 billion in November 2024, with a YoY increase of 34% [30][33]. - UMC achieved revenue of NT$20 billion in November 2024, reflecting a YoY growth of 7% [30][33]. 3. Key Company Stock Performance - The top five Taiwanese electronics companies with the highest stock price increases in November 2024 include Inventec, Largan Precision, Compal Electronics, ASUS, and Wistron [25]. - Conversely, the companies with the largest declines include Nanya Technology, Silergy Corp, Winbond Electronics, Macronix, and JMicron Technology [25]. 4. Revenue Performance of Key Segments - The report highlights that the revenue for the foundry segment is showing strong growth, with TSMC leading the market [30][33]. - The analog IC segment also shows positive growth trends, indicating a robust demand in the market [30][42].

Investment Rating - The industry investment rating is "Buy" [2] Core Views - The growth rate of life insurance premiums for listed insurance companies has generally narrowed, which is in line with market expectations. However, the impact of demand front-loading is gradually dissipating. For the period from January to November, the year-on-year growth rates of original premiums for Ping An, China Life, New China Life, and Taikang Life were 8.5%, 4.8%, 2.1%, and 2.2%, respectively, compared to 9%, 4.9%, 1.8%, and 2.4% in the previous month. The single-month premium growth rates for November were -0.9%, +4.2%, +10.5%, and -2.2%, showing an overall improvement compared to October [2][5] - The cumulative premium growth rate of Ping An continues to lead, primarily driven by new business creation that supports renewal premium growth. Looking ahead, the reduction in the preset interest rate is expected to shift the product structure towards participating insurance, necessitating close attention to the situation of the 2025 New Year sales. Additionally, the new products driven by the interest rate reduction in 2025 are expected to improve the interest spread and value rate, promoting stable and continuous growth in value [2][5] - The growth rate of property insurance premiums continues to expand. For the same period, the year-on-year growth rates of premiums for PICC Property, Ping An Property, and Taikang Property were 5.1%, 6.8%, and 7%, respectively, compared to 4.8%, 6.5%, and 7.4% in the previous month. The single-month growth rate of auto insurance increased from 6.4% in October to 7.5% in November, benefiting mainly from policies promoting scrapping and replacement [2][5] Summary by Sections Life Insurance - The year-on-year growth rates of original premiums for major life insurance companies have shown a narrowing trend, with Ping An leading in cumulative premium growth due to strong new business performance [2][5] - The impact of demand front-loading is diminishing, and the base from the previous year is relatively low due to regulatory changes [2][5] Property Insurance - The property insurance premium growth rates have shown a consistent expansion, with notable increases in both auto and non-auto insurance segments [2][5] - The growth in auto insurance is supported by rising vehicle sales and favorable policies, while non-auto insurance growth is driven by low base effects [2][5] Investment Recommendations - The report suggests maintaining a "Buy" rating for the insurance sector, highlighting the favorable conditions for profit growth and the current low valuation levels of insurance stocks. Specific stock recommendations include China Taikang, China Life, and Ping An [2][5]

Investment Rating - The industry investment rating is "Buy" [3] Core Insights - The banking sector overall declined by 0.5%, underperforming the Wind All A index, with state-owned banks showing a slight increase of 0.4% while other categories like joint-stock banks and rural commercial banks experienced declines [2][51] - The report indicates that the performance of H-shares in the banking sector outperformed A-shares, with H-share banks rising by 0.8% [2][51] - The average price of bank convertible bonds increased by 0.45%, but this was still 1.33 percentage points lower than the performance of the China Securities convertible bond index [2][52] - Earnings growth expectations for A-share banks in 2024 remain largely unchanged compared to previous forecasts [2][52] Summary by Sections 1. Current Observation - The observation period is from December 9 to December 13, 2024, with data sourced from Wind [2][51] - The banking sector's performance ranked 17th among all industries, indicating a weaker performance compared to the overall market [2][51] 2. Investment Recommendations - Concerns regarding the impact of bond market supply on year-end interbank liquidity are alleviated, as recent interest rates have significantly decreased due to liquidity easing and adjustments in interbank deposit policies [2][53] - The report anticipates that credit demand may be less robust than in previous cycles, but the direct impact on terminal demand could be stronger, suggesting a different elasticity relationship between volume and price compared to past cycles [2][53][54] 3. Sector Performance - The banking sector's overall decline of 0.5% was noted, with state-owned banks performing better than other categories [2][51] 4. Individual Stock Performance - The top-performing A-share banks included Ruifeng Bank (+1.92%), Bank of China (+1.57%), and Beijing Bank (+1.21%), while the worst performers were Yunnan Rural Commercial Bank (-2.94%) and Xiamen Bank (-2.64%) [2][51] 5. Convertible Bond Performance - The average price of bank convertible bonds rose by 0.45%, with specific bonds like Chongqing Bank's convertible bond facing a potential redemption condition based on stock price performance [2][52] 6. Earnings Forecast Tracking - The earnings growth rate for A-share banks in 2024 is expected to remain stable, with only minor adjustments noted for a few banks [2][52]