Investment Rating - The report maintains a "Buy" rating for the engineering machinery industry, with expectations for stock performance to exceed the market by more than 10% over the next 12 months [4]. Core Insights - The bauma CHINA 2024 exhibition held from November 26-29 in Shanghai showcased over 3542 exhibitors from 32 countries, with a total exhibition area exceeding 330,000 square meters, marking a 24% increase from the previous event [1][2]. - The exhibition attracted 281,488 professional visitors from 188 countries, with over 20% being international attendees, indicating a strong global interest [1][2]. - Domestic companies displayed a range of large and new energy equipment, with significant products including 200-ton and above excavators and electric mining machinery, highlighting the industry's competitive edge [2]. - State-owned enterprises have become more proactive, with companies like XCMG showcasing over 180 products and committing to a cash dividend plan of at least 40% of distributable profits over the next three years [2]. - Major orders were signed during the exhibition, with XCMG securing nearly 10 billion CNY in intent orders, including a 3 billion CNY deal for electric mining machinery with Fortescue [2]. - The supply chain is increasingly seeing domestic replacements for components, as Japanese and Korean manufacturers withdraw, leading to a focus on local production of hydraulic parts and engines [2]. Summary by Sections Industry Overview - The engineering machinery sector is experiencing a recovery in domestic demand, with local companies gaining global competitiveness [2]. Company Recommendations - The report recommends investing in companies such as SANY Heavy Industry, XCMG, Zoomlion, LiuGong, and Hengli Hydraulic, citing their strong market positions and growth potential [2].

Investment Rating - The report assigns a "Buy" rating for the computer industry [1] Core Insights - The computer industry index rose by 4.2% over the past week, ranking 7th among all industries. The report anticipates sustainable industry heat and breakthroughs in areas such as domestic AI computing power, enterprise applications, and industrial software [16][31] - The report highlights the evolution of AI applications, particularly the development of AI agents, which are expected to penetrate mobile and computer devices rapidly. The commercial application of AI is still in its early stages, with B-end applications facing challenges related to data security and regulatory requirements [16][18][22] - The domestic industrial software sector is progressing towards localization, supported by government policies and market demand. The report notes that the launch of products like Zhongwang CAD on the Harmony OS enhances user experience and promotes the localization process [23][27] Summary by Sections AI Applications - The report discusses the advancements in AI agent technology, including the upgrade of AutoGLM, which can handle long tasks and operate across applications. This reflects a trend towards the maturity and widespread adoption of AI agent products [18][21][22] Industrial Software - Zhongwang Software's release of Zhongwang CAD on Harmony OS is highlighted, showcasing its capabilities for multi-device synchronization and editing. This product enhances the user experience and supports the localization of industrial software [23][24][27] Key Areas and Companies - Key sectors identified include: 1. Artificial Intelligence: Hanvon Technology, Unisplendour 2. Industrial Software: Guangliwei, Zhongwang Software, Nengke Technology 3. Enterprise Software: Kingsoft Office, Kingdee International, Shiji Information 4. Intelligent Driving: Desay SV, Daotong Technology 5. Harmony OS: Softcom Power, Runhe Software, China Software International 6. Financial IT: Newland, Tonghuashun, Topview Software, Hengsheng Electronics 7. Network Security: Sanwei Xinan 8. Medical IT: Weining Health 9. Energy IT: State Grid Information [28]

Investment Rating - The industry rating is "Buy" [4] Core Viewpoints - Base metals: Demand expectations are stable, awaiting macroeconomic recovery to drive base metal price increases. Since November, the strong dollar due to the Trump trade has raised tariff concerns, leading to a continued pullback in base metal prices. The focus in December will be on the implementation pace and strength of domestic incremental policies and the Federal Reserve's interest rate cuts. A demand off-season is expected, with base metal prices fluctuating while waiting for further macroeconomic improvement. Recommended stocks include Luoyang Molybdenum (A+H), Western Mining, Jincheng Mining, China Hongqiao (H), Yunnan Aluminum, and Tianshan Aluminum [35][36][41]. - Steel: Supply and demand weakened in November, with price and profit margins declining. According to Wind, the profitability of steel mills fell by 9 percentage points to 52% in November, which may constrain supply. Demand from Shanghai's rebar procurement decreased. Future macroeconomic policies are expected to improve demand expectations. Cost pressures are limited due to constrained iron and steel supply. Steel prices are expected to stabilize in December. Recommended stocks include Baosteel, Hesteel, Jiuli Special Materials, and Yongjin Shares [40][41]. - Precious metals: Gold prices are expected to fluctuate upwards amid the interplay of U.S. interest rate cuts and inflation expectations. The U.S. core PCE in October rose by 2.8%, the largest increase since April 2024. The Federal Reserve's November meeting minutes indicated confidence in easing inflation and a strong labor market, with gradual rate cuts expected. As of November 30, the probability of a 25 basis point rate cut in December is 66%, up from the previous week. After a pullback from recent highs, gold prices are stabilizing and are expected to benefit from their financial attributes and anti-inflation characteristics. Recommended stocks include Chifeng Jilong Gold Mining, Zhaojin Mining (H), Shandong Gold (A+H), Zhongjin Gold, and Shanjin International [42][43]. - Energy metals: Short-term demand expectations are well established, but lithium prices are expected to weaken slightly. In November, lithium carbonate maintained a destocking trend, with upstream prices firm and downstream demand primarily driven by necessity. Looking ahead to December, the current destocking rate has narrowed, and the market's short-term demand expectations are robust. However, due to previous hedging opportunities for lithium salt plants, lithium prices are expected to face downward pressure, although the extent of price decline is limited due to easing supply surplus expectations. Recommended stocks include Ganfeng Lithium (A+H), Shengxin Lithium Energy, and Huayou Cobalt [44]. - Minor metals: In November, tungsten prices rose, while expectations for tungsten and molybdenum prices are stable in December. The disturbance from Myanmar's mines may be coming to an end, and in the off-season, rare earth prices are expected to weaken slightly in December. Tungsten prices increased in November due to a tight supply-demand balance and strong upstream pricing intentions, while molybdenum prices fell due to reduced demand from steel tenders. Molybdenum prices are expected to fluctuate in December. Recommended stocks include Jinchuan Group, Shenghe Resources, and Northern Rare Earth [45].

Investment Rating - The industry investment rating is "Buy" [1] Core Insights - The biodiesel industry is experiencing a golden development period driven by the "dual carbon" goals, with increasing mandatory blending ratios in Europe leading to a compound annual growth rate (CAGR) of 22% in consumption from 800,000 tons in 2000 to 42.2 million tons in 2020 [1][16] - The demand for biodiesel is expected to stabilize at around 40 million tons per year, transitioning from a growth phase to a mature phase due to factors such as electric vehicle adoption and European policy impacts [1][32] - The Sustainable Aviation Fuel (SAF) initiative is anticipated to create significant market demand, with the EU requiring that SAF constitutes 2% of aviation fuel by 2025 and 63% by 2050, translating to a potential demand exceeding 43 million tons per year [1][39][42] Summary by Sections 1. The Rise and Fall of Biodiesel in Europe - The EU's commitment to reducing emissions has led to a significant increase in the mandatory blending ratios for biodiesel, resulting in a robust growth period for the industry [1][16] - From 2017 to 2022, China's biodiesel and waste oil exports grew at CAGRs of 60% and 36%, respectively, due to high demand in Europe [1][21] 2. The Arrival of SAF Era - The SAF market is set to expand significantly, with major players like UOP and Shell accelerating their production line setups [1][39] - Companies with access to waste oil resources are expected to benefit the most from this new demand cycle, particularly waste management firms like Langkun Environment [1][39] 3. Key Recommendations - Companies such as Langkun Environment, Huanlan Environment, and Junxin Co. are highlighted as key investment opportunities due to their strategic positions in the biodiesel supply chain and their ability to leverage waste oil resources [1][39]

Investment Rating - The industry rating is "Buy" [6] Core Viewpoints - The SW basic chemical sector rose by 1.49% from November 25 to November 29, underperforming the Wind All A Index by 0.66 percentage points. Sub-industries such as nylon, viscose, phosphate fertilizer, and phosphate chemicals showed better performance [23][35] - The report highlights a transition from supply constraints to supply optimization, driven by high global oil prices and reduced capital expenditure in upstream energy sectors. Resource-based industries like titanium and phosphate are facing supply-demand mismatches due to expansion cycles and demand release [23] - New technologies and materials are emerging, including synthetic biology, vacuum materials, and lubricating oil additives, which are expected to drive growth in the industry [23][24] - A demand release inflection point is anticipated, with many chemical products' price spreads having returned to historical lows. If demand improves, it could significantly impact product price spreads, particularly in agriculture and vitamins [24][25] Summary by Sections 1. Overall Industry View - The basic chemical sector is experiencing a positive trend, with specific sub-industries outperforming the broader market. The report emphasizes the importance of supply optimization and the impact of new policies on the industry [23] 2. Key Sub-Industry Information Tracking - MDI market is facing a supply-demand imbalance, with ongoing maintenance affecting production. The TDI market is also weak due to low downstream orders, while the polyester filament market is experiencing a decline in demand and production [26][29][30] 3. Data Tracking - The report tracks industry performance, macroeconomic data, and downstream data, indicating a mixed outlook for various chemical products. Price fluctuations are noted, with significant declines in certain products [35][70]

Investment Rating - The report provides a positive investment rating for the computer industry, particularly highlighting the strong growth potential in the intelligent driving chip sector [131]. Core Insights - The intelligent driving industry is experiencing rapid growth, with the penetration rate of advanced intelligent driving technologies increasing significantly. In 2023, the sales of intelligent vehicles in China reached 12 million units, with projections of 30 million units by 2030, reflecting a CAGR of 12% over the next eight years [5][18]. - The trend towards self-sufficiency in chip production is becoming clearer, benefiting domestic intelligent driving chip suppliers. The geopolitical landscape is pushing for a higher domestic share in the intelligent driving chip market, which has seen a rise in local players like Horizon Robotics and Black Sesame Technology [5][45]. - Black Sesame Technology is identified as a leading supplier of automotive-grade computing SoCs, with significant revenue growth from 165 million yuan in 2022 to 312 million yuan in 2023, and 180 million yuan in the first half of 2024 [5][65]. Summary by Sections 1. Intelligent Driving Chip Industry Overview - The intelligent driving chip market is expanding rapidly, with significant growth in the penetration of advanced driving features. In 2023, the installation rates for L2, L2+, L2.5, and L2.9 features increased by 37.0%, 71.9%, 124.9%, and 63.1% respectively compared to 2022 [18][20]. - The market size for SoCs in China reached 27 billion yuan in 2023, with projections to grow to 102 billion yuan by 2028, indicating a CAGR of 30.7% [25]. 2. Black Sesame Technology: A Leader in Intelligent Driving Chips - Black Sesame Technology is positioned as a leading supplier of automotive-grade computing SoCs, with a strong focus on high-performance solutions for intelligent driving [53]. - The company has developed multiple SoC products, including the Huashan series, which supports L2+ to L3 autonomous driving capabilities [81][90]. - The company has established partnerships with major automotive OEMs, securing over 20 model designations from leading manufacturers such as FAW Group and Dongfeng Group [118]. 3. Financial Performance - Black Sesame Technology's revenue has shown significant growth, with the automatic driving products and solutions becoming the primary revenue source, accounting for over 85% of total revenue since 2022 [69]. - The gross margin has improved significantly, rising from 18% in the first half of 2023 to 50% in the first half of 2024, driven by the successful commercialization of its SoC solutions [72][74].

Investment Rating - The report rates the construction and decoration industry as "Buy" [1]. Core Viewpoints - The report emphasizes a gradual recovery in the industry, focusing on growth and new opportunities amid significant changes [1]. - It suggests that the demand side will benefit from debt reduction policies and improved local government credit, while the supply side will see continuous improvement in corporate operations under financial and market value assessments [1]. - The report identifies three main investment directions for 2025: valuation recovery, performance growth, and mergers and acquisitions [1]. Summary by Sections Investment Highlights - The construction and decoration sector has underperformed compared to the broader market, with a cumulative increase of 7.2% against the Shanghai Composite Index's 11.3% as of November 27, 2024 [28][30]. - Key sub-sectors such as chemical engineering, housing construction, and municipal infrastructure have shown strong performance, while others like steel structure and decoration have faced declines [28][29]. Valuation Recovery Direction - The report anticipates that the construction investment will maintain moderate single-digit growth, supported by debt reduction and counter-cyclical policies [1]. - It highlights that central enterprises are expected to see valuation recovery due to improved operational focus and financial assessments [1]. Growth Direction - The report notes that effective investments and a focus on national security will drive long-term growth in specialized and international engineering sectors [1]. - It mentions that international engineering contracts signed by Chinese firms reached USD 171.7 billion in 2024, reflecting a 22.1% year-on-year increase [1]. Mergers and Acquisitions Direction - The report indicates that frequent policies on mergers and acquisitions present investment opportunities, particularly in areas of industry competition and changes in control [1]. - It suggests that state-owned enterprises can resolve competition issues through restructuring, with a focus on companies like Huadian Engineering and China Communications Construction [1].

Investment Rating - The industry investment rating is "Buy" [3] Core Viewpoints - The report highlights that policy measures are driving a rebound in sales, with local housing subsidies enhancing purchasing power [3] - The new housing transaction volume has shown a significant increase, with new home transaction area reaching 576.01 million square meters, a 26.5% increase month-on-month and a 33.2% increase year-on-year [62] - The report emphasizes the importance of monitoring the implementation of policies and their impact on market sentiment and transactions [3] Summary by Sections 1. Industry Policy and Fundamental Tracking - Recent policies include relaxation of housing fund regulations in multiple cities, with significant subsidies introduced in Wuhan for families with multiple children [50][52] - The report notes that the Ministry of Housing and Urban-Rural Development is focused on consolidating financing mechanisms and ensuring the delivery of housing projects [50] 2. Key City Transaction Situation - The report provides data showing that in the week of November 22-28, 2024, the transaction area in 50 cities was 576.01 million square meters, with a month-on-month increase of 26.5% and a year-on-year increase of 33.2% [62] - The report indicates that first-tier cities like Beijing and Guangzhou have shown strong performance, with transaction increases of 70.9% and 38.7% respectively [74] 3. Key Company Tracking - The report includes a list of recommended stocks in the real estate sector, all rated as "Buy" with their respective reasonable values and earnings per share projections [7] 4. Real Estate Development Sector Investment View - The report suggests that companies with strong land reserves are likely to perform better as market sentiment improves, while those with weaker positions may struggle [3] 5. Property Management Sector Investment View - The property management sector has seen a rebound, with leading companies showing significant stock price increases [3]

Investment Rating - The industry investment rating is "Buy" [1] Core Insights - The media sector saw a 5.53% increase in the week of November 25-29, outperforming the Shanghai Composite Index by 3.72 percentage points, driven by themes like "Guzi Economy" and updates in AI applications [9][33] - The report anticipates further developments in AI applications, particularly in video generation and chatbot technologies, which are expected to enhance industry efficiency and content delivery [37][40] Summary by Sections Media Weekly Perspective - The media sector is experiencing a recovery, with significant contributions from AI-driven applications and the "Guzi Economy" theme, leading to a positive market sentiment [9][33] Internet Media Sector - The report suggests focusing on leading companies like Tencent and Meituan for their stable growth and valuation recovery potential, alongside music streaming platforms such as Tencent Music and NetEase Cloud Music [10][35] - Companies like Kuaishou, iQIYI, and Baidu are expected to rebound from low market expectations, while Bubble Mart's overseas expansion and SKU diversification are highlighted as growth drivers [10][35] Gaming Sector - The gaming sector is recommended for continued investment, with a focus on companies like Perfect World and Haoying Network, which have a strong pipeline of new products expected to drive performance [10][36] - The upcoming CS Major esports event in Shanghai is anticipated to catalyze interest and investment in the gaming sector [36] AI Applications - The report highlights advancements in AI applications, including AI-driven video generation and chatbot technologies, which are expected to enhance user engagement and operational efficiency [37][40] Publishing Sector - The publishing sector is projected to maintain steady growth, particularly in educational publishing, with companies like Zhongnan Media and Phoenix Media noted for their strong dividend capabilities [10][40] Film and Television Sector - The film sector is expected to benefit from a rich lineup of upcoming releases, with box office predictions for films like "Good Things" reaching 680 million yuan [10][40] - Companies such as Maoyan Entertainment and Wanda Film are recommended for their potential performance in the upcoming film season [10][40] Marketing Sector - With expectations of macroeconomic recovery, advertising confidence is anticipated to improve, suggesting a focus on companies like Focus Media and Insai Group for potential growth [10][40]

Investment Rating - The industry rating is "Hold" [4] Core Viewpoints - The white goods sector shows stable growth with a projected production increase of 21.7% year-on-year for December 2024, totaling 33.98 million units across air conditioners, refrigerators, and washing machines [27][30] - Hubei province has initiated the registration process for merchants to participate in the 2025 national subsidy program for household appliances, providing clear guidelines for interested businesses [42] Summary by Sections Production Data - December 2024 production for air conditioners is expected to reach 17.9 million units, a 31.7% increase year-on-year, with domestic sales up 15.0% and exports up 48.5% [27][30] - Refrigerator production is projected at 8.6 million units, reflecting a 15.0% year-on-year increase, with domestic sales rising 19.0% and exports increasing by 12.5% [33] - Washing machine production is estimated at 7.48 million units, a 9.0% increase year-on-year, with domestic sales up 4.1% and exports up 7.6% [37] Investment Recommendations - The report recommends investing in Haier Smart Home (A/H) and Hisense Home Appliances (A/H) due to their stable ROE and high dividend advantages, as well as potential benefits from the old-for-new policy [2][45] - Other recommended companies benefiting from the old-for-new policy and domestic demand recovery include Hisense Visual, Aima Technology, Yadea Holdings, and XGIMI Technology [2][45] Market Performance - From November 25 to November 29, 2024, the Shanghai Composite Index rose by 1.3%, while the home appliance sector index increased by 0.1% [2][49] - The black appliance index decreased by 6.1%, and the white appliance index fell by 0.1% during the same period [2][49] Retail Data - For the week of November 18 to November 24, 2024, offline sales of air conditioners increased by 74.1% year-on-year, while online sales rose by 84.0% [3][51] - Refrigerator offline sales grew by 33.5% year-on-year, and online sales increased by 18.4% [3][51] - Washing machine offline sales saw a 23.9% year-on-year increase, with online sales up 33.9% [3][51]