Industry Overview - The global mobile application market is vast, with 1.56 trillion downloads in 2024, expected to reach 1.89 trillion by 2027 [14] - In-app advertising (IAA) is a crucial monetization method, with the global IAA market projected to reach $352.2 billion in 2024, accounting for over 40% of digital ad revenue [23] - The in-game advertising (IGA) market is a significant driver of IAA growth, with a projected size of $109.6 billion in 2024 and a CAGR of 9.1% from 2024 to 2029 [23] Company Business Model - The company operates in two main segments: software platforms and applications, with the software platform business being the core [32] - The software platform business includes AppDiscovery, MAX, Adjust, Wurl, SparkLabs, AppLovin Exchange, and Array, supported by the AI engine AXON [32] - The applications business consists of over 200 free mobile games across various genres, operated by 11 in-house studios [32] Financial Performance - In 24Q3, the company reported revenue of $1.198 billion, a YoY increase of 38.6% and a QoQ increase of 10.9% [3] - Adjusted EBITDA for 24Q3 was $722 million, with a margin of 60.2%, up from 45.8% in 22Q4 [61] - The software platform business drove growth, with revenue of $835 million in 24Q3, a YoY increase of 65.6% and a QoQ increase of 17.5% [3] AI and Technology - The company's AI engine, AXON, leverages machine learning to optimize ad targeting and improve ad delivery efficiency [33] - AXON 2.0, launched in 2023H1, further enhanced ad monetization and delivery effectiveness, contributing to the company's performance improvement [33] - The company's cloud infrastructure supports large-scale data processing and ensures high flexibility to meet customer needs globally [33] Market Position and Competition - The company holds a leading position in the mobile in-game advertising market, with a 35% share on iOS and 17% on Android in 24Q2 [23] - Competitors include Google Admob, Unity Ads, and Mintegral, with the market being relatively concentrated on iOS and more fragmented on Android [23] Future Outlook - The company is piloting an advertising program in the e-commerce sector, with early data showing promising results, including a 100% increase in traffic [4] - For 24Q4, the company expects revenue between $12.4 billion and $12.6 billion, representing a YoY growth of 30.1% to 32.2% [74] - Adjusted EBITDA for 24Q4 is projected to be between $740 million and $760 million, with a margin of around 60% [74]

Investment Rating - The industry investment rating is "Buy" [2] Core Viewpoints - CSP CapEx is significantly aligned with server shipments and Nvidia's revenue, indicating a strong correlation between cloud service providers' capital expenditures and their server procurement [50][51] - The trend of CSP CapEx is shifting towards data centers, particularly focusing on GPU computing due to the explosion of demand for large model training driven by AIGC [50][51] - CSPs are expected to invest heavily in AI data centers, with approximately 30% of their CapEx directly contributing to Nvidia's Data Center revenue, a figure that is anticipated to increase [50][51] - The ROI from cloud computing power leasing is promising, with potential returns of $5 for every $1 spent on Nvidia's AI infrastructure over four years [67][68] Summary by Sections Section 1: Key Issues of Focus - CSP CapEx and server shipments are closely linked, with cloud providers becoming the main players in the server procurement market, increasing their market share from 38% in 2019 to approximately 46% in 2022 [50] - The shift towards AI and accelerated computing is evident, as traditional data centers adapt to meet the demands of AI applications [58] Section 2: North American CSPs - In Q3 2024, North American CSPs' CapEx totaled $58.86 billion, reflecting a year-on-year increase of 59.0% and a quarter-on-quarter increase of 11.4% [84] - Major players like Google, Microsoft, Meta, and Amazon have shown significant increases in their CapEx, with Amazon leading at $22.62 billion, a year-on-year increase of 81.3% [84]

Investment Rating - The industry investment rating is "Buy" [2]. Core Viewpoints - BC (Back Contact) technology is expected to become an essential platform technology in the future, with advantages in efficiency due to unobstructed front surfaces [2][20]. - The integration of BC with other technologies such as HJT (Heterojunction), TOPCon (Tunnel Oxide Passivated Contact), and perovskite is anticipated, leading to various combinations like HBC, TBC, HPBC, and ABC [2][20]. - The latest advancements in BC technology, such as the Hi-MO X10 distributed component product from Longi Green Energy, have achieved a record efficiency of 25.4% [2]. - The ongoing trend of reducing silver usage in photovoltaic cells is highlighted, with copper paste materials emerging as a significant cost-reduction direction [2][55]. - The report recommends several companies, including Dier Laser, Jiejia Weichuang, Maiwei Co., and Aotwei, for their strong positions in the laser equipment and technology sectors related to photovoltaic applications [2]. Summary by Sections 1. BC Battery: A Path to Cost Reduction and Efficiency Improvement - BC battery technology is a universal platform technology that can integrate with TOPCon, HJT, and perovskite technologies [20]. - The complexity of BC technology lies in the graphic and metallization processes, which require advanced laser equipment [22][23]. 2. Metallization Cost Reduction: A Key Driver for Future Efficiency - Silver paste constitutes a significant portion of component costs, accounting for 10.15% of the total component cost [55]. - Current mainstream technologies for reducing silver usage include copper plating, silver-coated copper, copper paste, 0BB, and multi-busbar technologies [56][60]. - Copper paste is highlighted as a potential ultimate solution for cost reduction in metallization due to its lower cost compared to silver [60][61]. 3. Key Company Recommendations - Dier Laser is recommended for its leading position in laser equipment for photovoltaic applications [2]. - Jiejia Weichuang is noted for its strong technical capabilities across various photovoltaic technologies [2]. - Maiwei Co. is recognized for its leading market share in HJT technology and its advancements in dual-sided microcrystalline equipment [2]. - Aotwei is highlighted for its expertise in string welding machines and its expansion into various equipment sectors [2].

Investment Rating - The report gives a "Buy" rating for Jiudian Pharmaceutical with a target price of 26.53 CNY per share [5] Core Views - Jiudian Pharmaceutical's core product, Loxoprofen Sodium Gel Patch, is a first-to-market generic in China with strong competitive advantages due to clinical approval barriers [1] - The company is expanding its market presence both in-hospital and out-of-hospital, with steady sales growth in centralized procurement regions and new growth drivers from online and offline channels [1] - Jiudian Pharmaceutical is deepening its focus on transdermal drug delivery systems, with multiple products in the pipeline expected to further enhance its market position [2] - The company's profitability is expected to grow significantly, with projected net profits of 525 million CNY, 692 million CNY, and 896 million CNY for 2024-2026, respectively [2] Financial Projections - Revenue is expected to grow from 2.693 billion CNY in 2023 to 4.677 billion CNY in 2026, with a CAGR of 18.6% [3] - EBITDA is projected to increase from 471 million CNY in 2023 to 1.068 billion CNY in 2026 [3] - EPS is forecasted to rise from 1.07 CNY in 2023 to 1.81 CNY in 2026, with a P/E ratio decreasing from 31.06x to 14.23x over the same period [3] Market and Product Analysis - Jiudian Pharmaceutical's Loxoprofen Sodium Gel Patch dominates the market with a 100% market share in 2022 and 2023 [32] - The company's Ketoprofen Gel Patch, approved in 2023, is expected to further expand its market share in the transdermal drug delivery sector [10] - Jiudian Pharmaceutical has a robust pipeline of transdermal drug delivery products, including Indomethacin Gel Patch and Lidocaine Gel Patch, which are expected to contribute to future growth [12][34] Industry Trends - The global transdermal drug delivery market is projected to reach 9.6 billion USD by 2027, driven by the advantages of transdermal patches such as ease of use and patient compliance [48] - Chronic pain, a growing issue due to aging populations, is expected to drive demand for transdermal pain relief products, with over 280 million chronic pain patients in China alone [58] Strategic Initiatives - Jiudian Pharmaceutical is actively building a nationwide marketing network, with a focus on both in-hospital and out-of-hospital markets [43] - The company has successfully developed a national commercial team and expanded its online presence, which is expected to drive further growth [45]

Investment Rating - The industry investment rating is "Buy" [2]. Core Viewpoints - The semiconductor equipment market is expected to continue expanding due to the ongoing domestic wafer production capacity expansion, technological upgrades in semiconductor manufacturing, and accelerated domestic substitution processes [2][5]. - In October 2024, a total of 10 tenders were issued, primarily for probe station equipment, with significant contributions from Jita Semiconductor and Yandong Technology [2][72]. - The domestic semiconductor equipment market saw a significant growth of 29.47% year-on-year in 2023, reaching a market size of $35.697 billion [63]. Summary by Sections 1. Wafer Expansion and Domestic Substitution Drive - Semiconductor equipment is fundamental to the development of the semiconductor industry, supporting technological upgrades and application expansions [16]. - China's wafer production capacity is expanding faster than the global average, with a projected capacity of 8.6 million wafers per month in 2024, a 13.2% increase year-on-year [20][22]. 2. October Tender Analysis - In October 2024, the total number of tenders was 10, with major contributions from Jita Semiconductor and Yandong Technology, focusing on probe stations, etching, measurement, detection, furnace tubes, and testing machines [72]. - From January to October 2024, a total of 295 tenders were issued, with Huahong Semiconductor, Jita Semiconductor, and SMIC leading in tender volume [72]. 3. Investment Recommendations - The report suggests focusing on companies with strong positions in core semiconductor processes and those expanding into new product categories, including Northern Huachuang, Zhongwei Company, Huahai QK, and others [2][5].

Investment Rating - The industry rating for the construction materials sector is "Hold" [2]. Core Views - The report highlights a series of policies aimed at stabilizing the real estate market and local debt, which have led to a noticeable improvement in sector expectations. The industry is currently in a policy window period, with potential for further policy support. Despite facing short-term challenges, the construction materials sector is expected to gradually recover as various segments find their bottom [2][62]. - The report emphasizes the resilience of leading companies in the industry, particularly in the retail construction materials segment, supported by demand for second-hand and existing home renovations. It suggests focusing on growth-oriented and valuation-flexible consumer building materials, as well as cement and glass leaders that are showing positive changes on the supply side [2][62]. Summary by Sections 1. Major Shareholder Increase and Policy Focus - The report notes that major shareholders, such as the second-largest shareholder of China Jushi, are planning to increase their stakes significantly, indicating confidence in the sector's long-term prospects [62]. 2. Consumer Building Materials - The consumer building materials segment is expected to benefit from ongoing policy support, with leading companies demonstrating strong operational resilience. The long-term demand stability and increasing industry concentration provide significant growth potential for quality niche leaders [62][66]. 3. Cement Market - The national cement market price has decreased by 0.7% week-on-week. The average price of cement as of December 6 is 425 RMB per ton, with a year-on-year increase of 44 RMB per ton. The report anticipates that the cement industry will see a bottoming out of profits in Q1 2024, followed by price adjustments in subsequent quarters [2][62]. 4. Glass Fiber and Carbon-Based Composites - The report indicates an overall price increase in the glass fiber market, with the mainstream transaction price for 2400tex direct winding yarn rising to 3500-3600 RMB per ton, reflecting a 2.91% increase month-on-month and a 14.42% increase year-on-year [2][62]. 5. Glass Market - The float glass prices are showing mixed trends, with the average price as of December 6 being 1418 RMB per ton, a slight increase of 0.1% month-on-month but a decrease of 28.7% year-on-year. The report suggests that leading glass companies are currently undervalued, presenting investment opportunities [2][62].

Investment Rating - The industry investment rating is "Buy" [3] Core Viewpoints - The report highlights the continuous growth and competition in the AI sector, particularly focusing on the performance of major AI models in both domestic and international markets [3][10] - Tencent's Mix Yuan has launched video generation capabilities and open-sourced its model, which is noted as the largest video open-source model with 13 billion parameters [3][10] - OpenAI has announced a series of product launches, indicating ongoing innovation in the AI space [3][10] Domestic AI Dynamics Tracking - According to SimilarWeb, the weekly web traffic for major domestic AI models from November 25 to December 1, 2024, is as follows: Kimi 802.37 million visits (up 3.16%), Wenxin Yiyan 496.66 million visits (down 7.53%), Tongyi Qianwen 258.13 million visits (up 3.21%), Doubao 544.72 million visits (up 2.71%), Zhizhu Qingyan 87.98 million visits (down 9.00%), Xunfei Xinghuo 50.18 million visits (down 29.54%), Tiangong AI 39.36 million visits (up 1.01%), and Tencent Yuanbao 30.76 million visits (up 3.46%) [3][28] - App download statistics show that Kimi had 36.88 million downloads (up 13.15%), Wenxin Yiyan 13.15 million downloads (up 2.65%), Tongyi Qianwen 6.36 million downloads (down 0.72%), Doubao 202.99 million downloads (down 0.54%), Zhizhu Qingyan 12.23 million downloads (down 16.75%), Xunfei Xinghuo 4.29 million downloads (down 8.14%), Tiangong AI 2.57 million downloads (down 2.52%), and Tencent Yuanbao 6.63 million downloads (up 12.85%) [3][28] International AI Dynamics Tracking - ChatGPT continues to lead in web traffic among international AI models, although there has been a slight decline in new domain visits [3][10] - Claude and Gemini have also seen a decrease in traffic, while LLaMa has been on a continuous downward trend since August [3][10] Investment Recommendations - The report suggests focusing on the empowerment of AI in various sectors such as gaming, marketing, education, and film [3][10] - Specific companies to watch include Tencent Holdings, NetEase, 37 Interactive Entertainment, and Perfect World in gaming; BlueFocus, Yidian Tianxia, and Focus Media in advertising; and Jiafa Education, Century Tianhong, and Southern Media in education [3][10]

Investment Rating - The industry investment rating is "Buy" [4] Core Insights - The equipment manufacturing industry's added value continues to expand, with a contribution rate of 42.7% to industrial growth [2][33] - The November Caixin China Manufacturing PMI rose to 51.5, indicating expansion in both supply and demand sides of the manufacturing sector [2][34] - The engineering machinery market index reached a new high in November, with significant improvements in excavator sales [2][40] Summary by Sections 1. Macroeconomic Data Tracking - The added value of the equipment manufacturing industry accounted for 34% of the industrial total in the first ten months of the year, maintaining above 30% for 20 consecutive months, with a year-on-year growth of 7.4% [2][33] - The annual production of new energy vehicles exceeded 10 million units for the first time, with smart and green manufacturing levels significantly improved [33] 2. Mid-level Data Tracking (1) Cycle Asset Data Tracking: Engineering Machinery, Oil Services, and Shipbuilding - The average working hours for major engineering machinery products in November were 96.7 hours, a month-on-month increase of 8.79% [2][40] - Excavator sales (including exports) in November were approximately 17,590 units, a year-on-year increase of about 17.86% [2][40] - The overall sales of loaders in November were 8,646 units, a year-on-year decrease of 2.56% [2][40] (2) New Energy Equipment Data Tracking - The report does not provide specific insights in this section. (3) Automation Industry Data Tracking - The report does not provide specific insights in this section. (4) Semiconductor Equipment Data Tracking - The report does not provide specific insights in this section. 3. Investment Recommendations - Key investment lines for the second half of 2024 include focusing on engineering machinery companies such as SANY Heavy Industry, XCMG, and Zoomlion [2][40] - Recommendations also include companies in the general automation sector and the export supply chain [2][40]

Investment Rating - The industry investment rating is "Buy" [3] Core Views - The observation period is from December 2, 2024, to December 6, 2024, with data sourced from Wind [4] - The overall performance of the banking sector (CITIC first-level industry) increased by 2.3%, ranking 17th among all industries and outperforming the Wind All A index [4] - The performance of state-owned banks, joint-stock banks, city commercial banks, and rural commercial banks changed by 2.34%, 3.08%, 1.43%, and 0.71% respectively [4] - The Hang Seng Composite Index rose by 2.45%, while H-shares of banks increased by 3.7%, outperforming both the Hang Seng Composite Index and A-share banks [4] Summary by Sections 1. Sector Performance - The banking sector's overall increase of 2.3% aligns with the Wind All A index, indicating a strong performance relative to other sectors [4][55] - Individual stock performance highlights include Chongqing Bank rising by 5.64% and Zhengzhou Bank by 5.19%, while Shanghai Rural Commercial Bank fell by 2.40% [4][55] 2. Investment Recommendations - The report suggests capitalizing on high dividend opportunities as liquidity conditions are expected to remain loose, especially with anticipated interest rate cuts by the Federal Reserve [57][58] - The report emphasizes that high dividend stocks, particularly H-share banks, are expected to outperform A-share banks during the year-end to early January period [58] 3. Bond Performance - The average price of bank convertible bonds increased by 0.77%, underperforming the CSI convertible bond index by 0.26 percentage points [5][56] - Notable individual bond performances include Qilu Convertible Bond rising by 1.83% and Chongqing Bank Convertible Bond by 1.39% [5][56] 4. Earnings Forecast Tracking - The earnings growth forecast for 2024 remains largely unchanged, with minor adjustments noted for Minsheng Bank and Suzhou Rural Bank [5][56] - The report indicates a slight decrease in net profit growth expectations for A-share banks, with a change of -0.01 percentage points [5][56] 5. Individual Stock Recommendations - The report recommends focusing on recovery-sensitive stocks such as China Merchants Bank and Ningbo Bank, followed by banks with a high proportion of small and micro clients like Ruifeng Bank and Changshu Bank [58]

Investment Rating - The industry investment rating is "Buy" [5] Core Viewpoints - The report emphasizes the importance of state-owned enterprises in the environmental sector as key players in the ongoing debt resolution process, highlighting their potential for transformation and recovery through various financial strategies [28][24] - It suggests focusing on companies like Wuhan Holdings, Zhongjin Environment, and Green City Water, which are expected to benefit from increased government support and improved cash flow management [28][6] - The report notes that the environmental sector is currently at a historical low in terms of valuation, presenting opportunities for bottom reversal [46][6] Summary by Sections Section 1: Accelerated Debt Resolution - The Ministry of Finance has reiterated the need to expedite the resolution of hidden debts, with a target of 2 trillion yuan for debt resolution disclosed [24] - As of December 5, 2024, 31 regions have proposed issuing refinancing special bonds to replace hidden debts, with a total disclosed issuance amount of approximately 19,953 billion yuan [24][26] Section 2: Policy and Events Tracking in the Dual Carbon Field - The report highlights the release of the first corporate carbon information disclosure standard, aiming to enhance transparency in carbon management [31] - It also notes significant funding needs for climate change adaptation and mitigation, estimated at 16 trillion yuan over the next five years [31] Section 3: Weekly Policy Review - Recent policies include the promotion of new urban infrastructure construction and the implementation of intelligent municipal infrastructure upgrades [40][41] - The government has proposed a 20% price deduction for domestic products in procurement activities, enhancing competitiveness for local companies [40][44] Section 4: Key Announcements and Market Tracking - Companies like Hanlan Environment have reported significant receivables recovery, with approximately 4.4 billion yuan collected in the fourth quarter of 2024 [45] - The environmental sector's valuation is currently at a historical low, with the GFHB index showing a relative underperformance compared to the broader market [46][6] Section 5: Market Performance of Sub-sectors - The report details the performance of various sub-sectors within the environmental industry, with monitoring and sanitation sectors showing notable gains [55][56]