Investment Rating - The industry investment rating is "Buy" [5] Core Viewpoints - Credo reported record revenue for FY25Q2, with a year-over-year increase of 63.6% and a quarter-over-quarter increase of 20.6%, driven primarily by the growth in AEC business demand [25][26] - The company expects FY25 revenue to grow by 100% or more year-over-year, and FY26 revenue to achieve approximately 50% year-over-year growth [25][26] - AEC products are expected to see accelerated demand in data center short-distance interconnections, with specific applications identified in major companies like Amazon and NVIDIA [27][28] Summary by Sections 1. Core Viewpoints - Credo's FY25Q2 revenue reached $72.034 million, marking a record high, with significant contributions from AEC business [25] - The company anticipates FY25Q3 revenue between $115 million and $125 million, representing a 67% quarter-over-quarter growth [25] - AEC technology offers advantages in power consumption, deployment flexibility, and cost compared to traditional DAC and AOC solutions [26][27] 2. Industry Data Updates - As of the end of 2023, China has built 3.377 million 5G base stations, a net increase of 1.065 million from the previous year, accounting for 29.1% of total mobile base stations [52] - In October 2024, domestic smartphone shipments reached 29.674 million units, with 5G smartphones accounting for 90.1% of the total [54] - The number of 5G users in China reached 5.46 billion as of October 2024, with significant growth in mobile internet traffic [59][72] 3. Market Performance - The communication sector outperformed the CSI 300 index by 2.92 percentage points this week, with a sector increase of 1.91% [30] - The communication sector has shown a year-to-date increase of 28.2%, significantly outperforming the CSI 300 index [33] 4. Recommendations - The report suggests focusing on companies like Ruikeda, Zhaolong Interconnect, and Xinyi Sheng, which are positioned to benefit from the growing AEC market demand [28]

Investment Rating - The industry investment rating is "Buy" [4] Core Views - M1 growth has significantly rebounded, supported by the acceleration of demand deposits, with a month-on-month increase of CNY 1.58 trillion in November, leading to a 2.4 percentage point rise in M1 growth to -3.7% [1][27] - Social financing growth remained stable month-on-month, with credit increment continuing its previous weak trend, primarily due to policies supporting fiscal debt and consumption stimulation, which have improved corporate liquidity but have a slower impact on credit demand compared to project investments [1][2] - The government debt issuance has increased, with net financing of CNY 1.31 trillion in November, reflecting a year-on-year increase of CNY 0.16 trillion [2] - The demand for medium- and long-term loans from residents has improved, with an increase of CNY 0.07 trillion in November, likely due to the ongoing recovery in the real estate market [2] - Corporate liquidity has further improved, with corporate deposits increasing by CNY 1.07 trillion year-on-year in November [3] Summary by Sections Overall Situation - M1 growth rebounded significantly, with a month-on-month increase in demand deposits contributing to a rise in M1 growth to -3.7% [1][27] Government Sector - Government debt issuance accelerated, with net financing of CNY 1.31 trillion in November, reflecting a year-on-year increase of CNY 0.16 trillion [2] Resident Sector - Medium- and long-term loan demand from residents improved, with an increase of CNY 0.07 trillion in November, attributed to the recovery in the real estate market [2] Corporate Sector - Corporate liquidity improved, with corporate deposits increasing by CNY 1.07 trillion year-on-year in November [3] Non-Bank Sector - Non-bank deposits showed a significant decrease, as the arbitrage space between interbank deposits and general deposits shrank [3]

Investment Rating - The investment rating for the company is "Buy-A/Buy-H" [1] Core Views - The report emphasizes that the investment logic for bank stocks will shift from dividend logic to recovery logic by 2025, with companies like China Merchants Bank (CMB) being sensitive to economic recovery [13][36] - The report highlights several key factors driving the positive outlook for CMB, including a rebound in consumer demand, improved deposit dynamics, a favorable capital market environment, and resilient non-interest income [14][37][201] Summary by Sections Introduction - The report discusses the significant changes in the domestic and international policy and economic environment since Q3 2024, indicating a positive shift in policy direction and the potential for economic recovery [36][171] Value Banking: Profitability Across Cycles - CMB has maintained a leading position in return on equity (ROE) among peers, benefiting from a strong retail banking focus and effective risk management [72][117] - The bank's low-cost funding and high-quality non-interest income contribute to its robust profitability [72][117] Economic Recovery and CMB's Potential for Excess Returns - The report anticipates a recovery in retail demand and credit growth as economic policies take effect, particularly in key regions like the Yangtze River Delta and the Pearl River Delta [37][173] - CMB's deposit structure is expected to improve, with a projected increase in the proportion of demand deposits, positively impacting net interest margins [14][195] - The capital market is expected to recover, leading to a rebound in wealth management income, which is a significant contributor to CMB's revenue [201][202] Profit Forecast and Investment Recommendations - The report forecasts a net profit growth of 0.32% and 1.95% for 2024 and 2025, respectively, with earnings per share (EPS) projected at 5.65 and 5.76 CNY [231] - The report maintains a target price of 55.63 CNY for A-shares and 54.91 HKD for H-shares, suggesting a favorable valuation compared to current market prices [231][232]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 14.82 CNY per share, indicating an upside potential from the current price of 12.83 CNY per share [4]. Core Views - The company has been selected for a project with China Mobile for the development of integrated terminal chips, with a contract value of 31.06 million CNY, which is expected to enhance its collaboration in the Beidou field [2][3]. - The company is expanding its presence in the civilian market, particularly in satellite communication and low-altitude economy scenarios, leveraging its comprehensive industry chain layout [3]. - Earnings per share (EPS) forecasts for 2024, 2025, and 2026 are projected to be 0.19 CNY, 0.37 CNY, and 0.52 CNY respectively, reflecting a positive outlook driven by advancements in aerospace information technology and the Beidou system [3]. Summary by Sections Investment Rating - Current Price: 12.83 CNY - Target Price: 14.82 CNY - Previous Rating: Buy - Report Date: December 13, 2024 [4]. Project and Collaboration - The company has been awarded a contract for the development of integrated terminal chips, which is expected to accelerate its collaboration with China Mobile in the Beidou sector [2][3]. Market Expansion - The company is focusing on the civilian market, particularly in satellite communication and low-altitude economy, with a full industry chain layout that includes chips, modules, antennas, and terminals [3]. Financial Forecast - Projected EPS for 2024, 2025, and 2026 are 0.19 CNY, 0.37 CNY, and 0.52 CNY respectively, indicating growth potential [3].

Investment Rating - The industry investment rating is "Buy" [4] Core Insights - The Central Economic Work Conference has set the policy framework for the coming year, emphasizing a more proactive fiscal policy and moderately loose monetary policy, which is expected to stabilize market expectations and boost domestic demand [1][2] - Continuous deepening of capital market investment and financing reforms is highlighted, with a focus on enhancing the role and function of the capital market, aiming to facilitate the entry of long-term funds [2] - The report suggests that the policy shift will create opportunities for growth in the capital market, particularly benefiting the brokerage sector and the asset side of insurance companies [2] Summary by Sections Policy Framework - The Central Economic Work Conference emphasized the need for timely and effective policy implementation to stabilize the economy and enhance market confidence [1] - The focus is on early and concrete actions to ensure sufficient policy strength in response to external pressures [1] Capital Market Reforms - The report notes that the capital market is expected to play a crucial role in stabilizing economic expectations and boosting domestic demand [2] - Reforms are anticipated to ease restrictions on IPOs and refinancing, with a gradual increase in the number of IPOs expected in 2024 [2] - There is a strong push to channel long-term funds from social security, insurance, and wealth management into the capital market [2] Investment Recommendations - The report recommends focusing on brokerage firms and insurance companies, as the policy changes are likely to enhance their profitability and valuation recovery [2] - Specific stocks to watch include Dongfang Caifu, Tonghuashun, Huatai Securities, CITIC Securities, Guotai Junan, Zhongjin Company, China Galaxy, and招商证券 [2] - For insurance companies, attention is drawn to China Pacific Insurance, New China Life, China Taiping, China Life, Ping An, and China Property Insurance, as the equity market recovery is expected to benefit their asset side [2]

Investment Rating - The report rates the industry as "Overweight" with a focus on domestic ship power leaders such as China Power [3]. Core Viewpoints - The shipbuilding industry exhibits strong cyclical characteristics, with maintenance services extending the upward trend of the industry. The value of low-speed engines accounts for approximately 10% to 15% of total shipbuilding costs, driven by new ship orders and the increasing penetration of high-value dual-fuel engines [3][240]. - The maintenance market for low-speed engines is expected to gradually concentrate among leading manufacturers, as shipowners pursue both technical reliability and cost-effectiveness [3][242]. - The optimization of lifecycle costs is crucial for achieving a win-win situation between shipowners and maintenance providers, with innovative service models being developed [3][243]. - Maintenance services are characterized by light assets, high margins, and sustainability, providing cash flow support during downturns in the shipbuilding cycle [3][244]. Summary by Sections 1. Ship Diesel Engine Maintenance: Broad Space, High Value, Long Prosperity - Low-speed engines are the main power systems for maritime transport, accounting for 10% to 15% of shipbuilding costs [67]. - Regular maintenance is essential for the longevity and performance of ship equipment, with maintenance costs often being 1 to 2 times the purchase costs [3][79]. 2. Learning from Others: Optimizing Lifecycle Costs for Mutual Benefits - MAN Energy Solutions leads in market share and has established a comprehensive service network to support its products [99][100]. - Wärtsilä's lifecycle agreements are a key growth driver in marine services, with a significant increase in service orders and net sales [126][128]. 3. Competitive Landscape: Global Network, Advanced Technology, and Cost Advantages - The maintenance market is dominated by patent holders, manufacturers, and authorized service providers, with a focus on reliability and economic efficiency [165][169]. - Manufacturers are increasingly becoming the preferred choice for shipowners due to their reliability and cost advantages [184]. 4. Navigating Cycles: Maintenance Business Smooths Cycles and Enhances Efficiency - The maintenance business provides cash flow support during downturns, helping companies navigate through challenging periods [244][220]. - The integration of upstream design and downstream services is essential for enhancing competitiveness in the shipbuilding industry [233][234]. 5. Investment Recommendations - The report suggests focusing on domestic ship power leaders like China Power, benefiting from the ongoing improvement in the shipbuilding industry and the transition to low-carbon shipping [3][240].

Investment Rating - The industry investment rating is "Buy" [3] Core Viewpoints - The comprehensive promotion of the personal pension system is expected to drive rapid growth in the third pillar of pension insurance, optimizing the structure of the pension insurance system. As of the end of 2023, the proportion of the population aged 65 and above has reached 15.4%, while the first and second pillars accounted for 66.4% and 33.5% respectively in 2022, with the third pillar only at 0.1%. The acceleration of population aging increases the financial pressure on the first pillar [1][2] - The promotion of the third pillar and the continuous development of age-friendly insurance products are expected to further open up premium growth space. Personal pensions allow investments in various financial products, and insurance products are likely to become a major investment direction due to their advantages [1][2] - The regulatory proposal to explore default investment services is expected to promote medium- to long-term capital inflow into the market, similar to the U.S. experience with 401(k) plans, which could lead to a prosperous capital market and higher income for account holders [1][2] Summary by Sections Personal Pension System - The personal pension system will expand nationwide from December 15, 2024, with specific regulations aimed at optimizing product supply and improving management services [1] Market Growth Potential - The third pillar's growth potential is significant, with the personal pension system expected to alleviate the financial pressure on the basic pension insurance and enhance residents' retirement income levels [1][2] Investment Recommendations - The report recommends focusing on the insurance sector, specifically suggesting stocks such as China Pacific Insurance, China Life Insurance, China Taiping Insurance, Ping An Insurance, China Property & Casualty Insurance, New China Life Insurance, and AIA Group [1][2]

Investment Rating - The report maintains a "Buy" rating for BOSS Zhipin (BZ) with a target price of $19.11 per ADS, based on a 20X PE multiple for 2025 [5] Core Views - BOSS Zhipin's 24Q3 revenue grew 18.98% YoY to RMB 19.12 billion, with recruitment services contributing RMB 18.89 billion (up 18.7% YoY) [2] - The company's adjusted net profit reached RMB 739 million in 24Q3, up 3.5% YoY and 2.8% QoQ [2] - BOSS Zhipin's MAU grew 30% YoY to 58 million in 24Q3, with 40 million new users added in the first nine months [3] - The company's blue-collar recruitment business now accounts for 38% of total revenue, showing significant growth potential [3] Financial Performance - Revenue is expected to grow 23.3% to RMB 7.34 billion in 2024 and 10.1% to RMB 8.08 billion in 2025 [4] - Non-GAAP net profit is projected to reach RMB 2.72 billion in 2024 and RMB 3.10 billion in 2025 [4] - The company's P/E ratio is expected to decrease from 22 in 2023 to 15 in 2025, indicating improving valuation metrics [4] Operational Highlights - Paid enterprise users reached 6 million in the past 12 months, up 22.4% YoY [3] - New job postings increased 18% YoY in 24Q3, driven by efficient business models and market share gains [3] - The company has been actively repurchasing shares, with $220 million repurchased this year and an additional $150 million authorized [3] Industry Position - BOSS Zhipin is recognized as a leading online recruitment platform in China, benefiting from strong network effects [3] - The company's focus on blue-collar recruitment is expected to drive further growth and market expansion [3]

Investment Rating - The report rates the pharmaceutical and biotechnology industry as "Buy" [9]. Core Insights - The pharmaceutical industry is influenced by multiple cycles, including macroeconomic factors affecting government finance and basic medical insurance funding, ongoing reforms in basic medical insurance, strong regulatory oversight, and the initial stages of global market expansion for certain companies [9]. - The report highlights the importance of commercial insurance in providing a market-oriented, legal, and international payment environment for innovative drugs and devices, indicating a significant improvement in the payment environment for innovative products by 2025 [9]. - The report emphasizes the innovation capabilities within the industry, noting the return of high-end R&D talent and increased resource allocation towards innovation and internationalization, which is expected to lead to monetization in global high-end markets [9]. - The manufacturing advantages of the industry are highlighted, with China's complete industrial chain and engineer advantages expected to manifest across various pharmaceutical segments [9]. - The report discusses the rebalancing of supply and demand post-capital withdrawal, which is anticipated to enhance the industry's value [9]. Summary by Sections Industry Overview - The pharmaceutical industry is undergoing significant changes due to macroeconomic influences, regulatory reforms, and evolving market dynamics [9]. Commercial Insurance - The development of commercial insurance is identified as a key policy variable for the pharmaceutical industry, expected to enhance the payment environment for innovative drugs and high-end medical services [9]. Innovation Capabilities - The report notes that the innovation ecosystem is becoming more robust, with increased investment in R&D and a focus on international markets, which is likely to yield positive results in the coming years [9]. Manufacturing Advantages - China's manufacturing capabilities are positioned to become a global center for cost-effective production, supported by a strong industrial chain and skilled workforce [9]. Supply and Demand Rebalancing - The report anticipates that the rebalancing of supply and demand will lead to a more favorable valuation of the industry, following a period of capital withdrawal [9].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 55.72 HKD per share, compared to the current price of 50.85 HKD [4]. Core Insights - The company has received priority approval for its injectable recombinant collagen filler, which is part of a key national R&D program in medical devices. This product specifically targets neck wrinkles [1]. - The company has a diverse pipeline in the medical aesthetics sector, with four products under development, including liquid and solid formulations of recombinant collagen for various skin concerns [1]. - The brand's performance on social media platforms like Douyin shows significant growth, with year-on-year increases of 57% and 615% for its key products in November [1]. - The company's current market capitalization corresponds to a PE ratio of 23x for 2024 and 18x for 2025, with expectations for steady growth in its cosmetics business and additional upside from its medical aesthetics segment [1]. Financial Summary - The company’s projected revenue for 2024 is 5,398 million RMB, with a growth rate of 53.2%. By 2026, revenue is expected to reach 8,348 million RMB, with a growth rate of 20.1% [2]. - The forecasted net profit attributable to shareholders for 2024 is 2,120 million RMB, with a growth rate of 46.0%, increasing to 3,174 million RMB by 2026 [2]. - The earnings per share (EPS) is projected to be 2.06 RMB in 2024, rising to 3.09 RMB by 2026 [2]. - The company maintains a strong return on equity (ROE) of 39.0% in 2024, slightly decreasing to 38.0% by 2026 [2].