Industry Rating - The industry rating is **Buy** [1][2] Core Views - **Base Metals**: Expect domestic and overseas demand resonance. Copper supply remains tight, and with domestic policies like trade-in programs and overseas interest rate cuts, global restocking momentum persists. Aluminum demand is expected to improve globally, with prices having room to rise [4] - **Steel**: Supply-demand balance is expected to recover, and costs are expected to decline, leading to a stabilization of steel prices and profits in 2025 [4] - **Precious Metals**: Gold prices are expected to continue hitting new highs due to the Fed's rate-cutting cycle and its anti-inflation properties [4] - **New Energy Metals**: Lithium prices are expected to rise as supply-demand imbalances improve, driven by performance upgrades, domestic trade-in subsidies, and rapid development in energy storage [4] - **Other Minor Metals**: Rare earths are expected to remain in tight supply-demand balance, with tungsten and molybdenum prices expected to rise [4] Base Metals - **Copper**: Copper concentrate supply remains tight, and with domestic trade-in policies and overseas rate cuts, global restocking momentum is expected to continue. Copper prices are expected to rise with improvements in the macro environment [4][55] - **Aluminum**: Global aluminum demand is expected to improve, with prices having room to rise. Profits from alumina are expected to shift to electrolytic aluminum [4][81] Steel - **Supply**: Crude steel production is expected to slightly decrease in 2025 due to low profitability driving active production cuts [108][109] - **Demand**: Steel demand in 2024 was resilient, with strong demand from infrastructure and manufacturing sectors. In 2025, demand is expected to improve further with macro policy support [113][116] - **Costs**: Steel costs are expected to decline in 2025, with iron ore prices expected to remain weak due to weak global demand [133] Precious Metals - **Gold**: Gold prices are expected to continue rising due to the Fed's rate-cutting cycle and its anti-inflation properties. Global geopolitical tensions and "de-globalization" trends will further support gold prices [4][30] New Energy Metals - **Lithium**: Lithium prices are expected to rise as supply-demand imbalances improve, driven by performance upgrades, domestic trade-in subsidies, and rapid development in energy storage [4][42] Other Minor Metals - **Rare Earths**: Rare earths are expected to remain in tight supply-demand balance, with prices expected to remain high [4][46] - **Tungsten and Molybdenum**: Tungsten prices are expected to remain strong, while molybdenum prices are expected to rise with downstream steel demand recovery [4][49][50] Investment Recommendations - **Base Metals**: Focus on companies like China Hongqiao (H), Chalco (A, H), and Tianshan Aluminum [4] - **Steel**: Focus on companies like Baosteel, Hunan Valin Steel, and CITIC Special Steel [4] - **Precious Metals**: Focus on companies like Yulong Gold, Chifeng Gold, and Zhaojin Mining (H) [4] - **New Energy Metals**: Focus on companies like Ganfeng Lithium, Tianqi Lithium, and Shengxin Lithium [4] - **Other Minor Metals**: Focus on companies like Jinduicheng Molybdenum and Xiamen Tungsten [4]

Investment Rating - The textile and apparel industry is rated as "Buy" [2] Core Insights - The report highlights six key themes for 2025: trade friction, second curve, brand recovery, home textile rebound, outdoor trends, and market capitalization management [2] - As of November 15, 2024, the textile manufacturing and apparel sectors have underperformed compared to the CSI 300 index, with changes of -6.1% and -11.7% respectively, while the CSI 300 increased by +15.7% [2][91] - In October 2024, textile exports increased by 16.1% year-on-year, while apparel exports rose by 8.1% [99] Summary by Sections 1. Review of the Textile and Apparel Industry from Early 2024 - The textile manufacturing and apparel sectors have shown negative performance compared to the CSI 300 index, with textile manufacturing at -6.1% and apparel at -11.7% [91] - The textile export value in October 2024 was $12.39 billion, a 16.1% increase year-on-year, while apparel exports were $13.09 billion, an 8.1% increase [99] 2. Investment Strategy for the Textile and Apparel Industry in 2025 - The report suggests focusing on leading companies in the textile manufacturing sector that are exploring new products and markets [2] - It is recommended to pay attention to companies involved in mergers and acquisitions aimed at industry consolidation and new productivity developments [2] 3. Key Company Analysis - A-share companies to watch include Huayi Group, Weixing Co., and Jiasheng Group, among others [2] - Hong Kong-listed companies of interest include Shenzhou International and Anta Sports [2]

Investment Rating - The report rates the environmental protection industry as "Buy" [2]. Core Insights - The report emphasizes the resilience and growth potential of the environmental protection sector, highlighting the shift towards stable operational assets and the importance of policy support for debt restructuring and recovery [2][3]. Summary by Sections 1. Year in Review: Stability and Continued Growth - The environmental protection sector showed steady growth with a revenue increase of 2.1% and a net profit increase of 1.8% in Q1-Q3 2024 [44]. - The sector's performance has improved since the downturn in 2018, with a gradual recovery in revenue and profits [44][45]. - The solid waste and water sectors contributed significantly, with their net profit accounting for 67% of the total sector profit, reflecting a 4.0 percentage point increase year-on-year [51][52]. 2. Outlook for 2025: Policy Intensification and Debt Restructuring - The report anticipates intensified policy measures for debt restructuring, which will be crucial for restoring confidence and promoting development in the sector [2]. - The focus will be on state-owned enterprises as key players in the debt restructuring process, with potential for mergers, acquisitions, and asset securitization [2][3]. 3. Stock Selection Strategies - The report suggests focusing on state-owned enterprises that have experienced significant market declines and have strong reform demands [2]. - Companies such as Wuhan Holdings, Juguang Technology, and Zhongjin Environment are highlighted as potential investment opportunities due to their growth prospects and operational stability [2][3]. 4. Performance of Sub-sectors - The report identifies strong performance in sub-sectors such as hazardous waste resource recovery and recycled plastics, with respective revenue growth rates of 27% and 15% [69]. - The report notes that operational assets in the solid waste and water sectors are expected to maintain stable profitability, contributing to the overall resilience of the environmental protection industry [69].

Investment Rating and Valuation - The report assigns a "Buy" rating to the company with a current price of 33.84 yuan and a fair value of 41.62 yuan [1][2][3] - The stock has shown significant growth over the past 3 and 6 months with increases of 44.44% and 17.71% respectively [6] Financial Performance and Projections - Revenue for 2024E is projected at 9,031 million yuan, a 10.3% increase from 2023A, with further growth expected to reach 12,635 million yuan by 2026E [6] - EBITDA is forecasted to grow from 1,348 million yuan in 2023A to 2,131 million yuan by 2026E, indicating strong operational efficiency improvements [6] - Net profit attributable to the parent company is expected to rise from 580 million yuan in 2023A to 1,224 million yuan by 2026E, reflecting a robust recovery and growth trajectory [6] Business Segments and Market Position - The company operates through two main brands: "Winner" for medical products and "Purcotton" for consumer goods, leveraging cotton as a core material [47] - Medical segment revenue accounted for 43.8% of total revenue in 2024Q1-3, with consumer goods contributing 55.4%, showing a balanced business model [7] - The company has expanded its medical product line through acquisitions, enhancing its market position in high-end wound care and surgical products [49] Strategic Initiatives and Growth Drivers - A new equity incentive plan has been introduced, aiming to align management interests with long-term growth targets, with performance triggers set at 13% and 18% revenue growth for 2025 and 2026 [7] - The company is focusing on both organic growth and strategic acquisitions to strengthen its market position and expand its product offerings [49] Industry Analysis and Competitive Landscape - The domestic medical consumables market is large and growing, with a CAGR of 16.10% from 2015 to 2023, expected to reach 3,633 billion yuan by 2025 [94] - Low-value medical consumables, which the company specializes in, are projected to grow at a CAGR of 19.49%, reaching 2,213 billion yuan by 2025, indicating significant market potential [94] - The company is well-positioned to benefit from industry consolidation and the shift towards higher-value medical products, supported by its strong R&D capabilities and international certifications [110]

Investment Rating - The industry investment rating is "Buy" [9] Core Viewpoints - The terminal demand for passenger cars in October 2024 showed stronger performance than normal seasonality, driven by the effects of the vehicle replacement policy [26][41] - The cumulative sales of passenger cars in the first ten months of 2024 reached 17.81 million units, with a year-on-year growth rate of 6.4% [26] - The inventory reduction in the passenger car industry exceeded expectations, with a dynamic inventory-to-sales ratio dropping to 1.9 by the end of October 2024 [44][46] - The penetration rate of new energy vehicles (NEVs) continues to rise, with October sales of NEVs reaching 1.18 million units, a year-on-year increase of 64.4% [71] - The market share of domestic brands in the passenger car segment increased to 65.6% in October 2024, up 10.5 percentage points year-on-year [57] Summary by Sections 1. Passenger Car Demand and Policies - The implementation of the vehicle replacement policy and local subsidies has significantly boosted demand for mid-to-low-end models [19][26] - In October 2024, the sales of passenger cars under 100,000 yuan showed remarkable growth, with models priced below 50,000 yuan increasing by 165.1% compared to previous months [32] 2. Inventory and Sales Performance - As of October 2024, the passenger car industry inventory stood at 3.571 million units, with a reduction of 91,000 units in October [44] - The dynamic inventory-to-sales ratio indicates a healthy market, primarily due to proactive inventory management by both domestic and joint venture manufacturers [46] 3. New Energy Vehicle Market - The penetration rate of NEVs reached 49.8% in wholesale terms and 51.4% in insurance terms in October 2024, reflecting a significant year-on-year increase [71] - Cumulative sales of NEVs in the first ten months of 2024 reached 8.228 million units, with a year-on-year growth of 46.2% [71] 4. Investment Recommendations - The report recommends focusing on companies that are positioned to benefit from the ongoing trends, including BYD, Li Auto, and Xpeng Motors, as well as traditional automakers like Changan and Great Wall Motors [143] - Key component suppliers such as Minth Group and Nanjing Zheng Coal Machine are also highlighted for their potential [143]

Investment Rating - The report rates the industry as "Buy" based on the growth potential and performance of domestic brands in the high-end makeup sector [4]. Core Insights - The makeup industry is accelerating, with domestic brands like Maogeping breaking through. The per capita spending on makeup in China is significantly lower than in other countries, indicating substantial growth potential over the next five years [3][4]. - High-end makeup is expected to grow at a compound annual growth rate (CAGR) of 10.8% over the next five years, with the growth rate of high-end makeup being approximately double that of mass-market makeup [3][4]. - The report highlights the importance of brand identity, product quality, and distribution channels in the success of domestic brands, particularly emphasizing Maogeping's unique positioning and product offerings [3][4]. Summary by Sections 1. Domestic High-End Makeup & Skincare Brands - Maogeping is a well-known brand founded by a prominent makeup artist, focusing on high-end products primarily sold through direct retail and online channels [25]. - The company has established a strong brand presence and offers professional makeup training, enhancing its market position [27][31]. 2. Acceleration of the Makeup Industry - The Chinese beauty market has grown from 402.6 billion CNY in 2018 to 579.8 billion CNY in 2023, with a CAGR of 7.6%. The market is projected to reach 876.3 billion CNY by 2028 [48]. - The report notes that while skincare has outpaced makeup in growth, the makeup sector is expected to catch up, with both sectors projected to grow at similar rates in the coming years [49]. 3. Brand, Product, and Channel Advantages - Maogeping's product strategy focuses on a healthy single-product system, with a significant portion of sales coming from core products [3][4]. - The online sales channel has seen rapid growth, with online revenue increasing from 4.46 billion CNY in 2021 to 9.95 billion CNY in 2023, reflecting a CAGR of 49.4% [31]. - The company maintains a strong offline presence, with steady growth in department store sales, contributing to a balanced sales strategy [4]. 4. Investment Recommendations - The report suggests that domestic brands are well-positioned to capture market share from international competitors due to their agility in product development and marketing strategies [4]. - The increasing acceptance of domestic products among consumers, coupled with a growing focus on product ingredients, presents a favorable environment for domestic brands to thrive [4].

Investment Rating - The report assigns a "Buy" rating for the computer industry, indicating an expectation of stock performance exceeding the market by more than 10% over the next 12 months [2]. Core Insights - The report highlights the potential for a trade agreement between China and the EU regarding electric vehicles, which could lead to significant improvements in the smart driving industry chain's overseas expansion [2]. - The smart driving industry is experiencing rapid development, with increasing penetration rates for NOA (Navigation on Autopilot) and a relatively low valuation compared to the industry, suggesting potential investment opportunities [2][3]. - Key players in the smart driving sector, such as Desay SV and DaoTong Technology, are recommended for investment due to their strong market positions and growth prospects [2][3]. Summary by Sections Industry Overview - The report discusses the ongoing negotiations between the EU and China regarding tariffs on electric vehicles, with a focus on achieving a possible agreement to replace the high tariffs currently in place [2]. - The smart driving industry chain is sensitive to trade environments, and a stable trade agreement could lead to significant marginal improvements for the industry [2]. Company Analysis - Desay SV is highlighted as a leading domestic Tier 1 supplier with rapid growth in high-level smart driving domain controllers and successful overseas expansion [2]. - DaoTong Technology is recommended for its deep layout in the European and American new energy charging pile market, showing continuous rapid growth [2]. Investment Recommendations - The report suggests focusing on core components and service suppliers in the smart driving sector, with specific recommendations for companies like Desay SV and DaoTong Technology, as well as others such as Jingwei Hengrun and Hezhong Technology [2].

Investment Rating - The industry investment rating is "Buy" [5] Core Viewpoints - The industry is expected to see a bottoming out and reversal in its prosperity, with profit elasticity likely to expand, catalyzing further valuation recovery [1][2] - A series of incremental policies have been introduced to address economic pressures, which are expected to gradually stimulate the capital market and enhance liquidity [2][57] - The overall business environment is anticipated to recover, with significant growth potential in wealth management, investment banking, and proprietary trading [2][15] Summary by Sections 1. Industry Overview - The report indicates that the securities industry is entering a phase of "increasing revenue and decreasing costs" in 2025, driven by improved liquidity and effective cost-reduction measures [1][2] 2. Incremental Catalysts - Incremental policies such as loose monetary and fiscal measures are expected to gradually take effect, providing a beta catalyst for growth [2][57] - There is a significant potential for off-market funds to flow into the market, with passive investment gaining momentum and institutional funds expected to support market stability [2][72] 3. Business Recovery - The wealth management sector is projected to see a rebound, supported by market expansion and improved economic expectations [2][15] - Investment banking is gradually recovering from pressure, with policies promoting mergers and acquisitions expected to accelerate growth [2][17] - The bottoming out of the capital market is anticipated to drive growth in proprietary trading performance, with a forecasted 35% and 37% year-on-year growth in revenue and net profit for the industry in 2025 [2][22] 4. Industry Structure - The report highlights that mergers and acquisitions are opening a new chapter in the industry, with leading brokerages gaining more attention [2][20] - Optimized risk control indicators are expected to create space for high-quality development, allowing leading brokerages to strengthen their positions [2][21] 5. Profit Forecast - The report predicts that profit elasticity will be promising in 2025, with a significant recovery in earnings expected [22] 6. Investment Recommendations - The report suggests focusing on the changing industry landscape and emphasizes the importance of wealth management brokerages [3][23]

Industry Overview - The textile and apparel industry underperformed the CSI 300 index in 2024, with SW Textile Manufacturing and SW Apparel & Home Textiles declining by 6.07% and 11.71% respectively, while the CSI 300 rose by 15.67% [91] - Textile exports in October 2024 increased by 16.1% YoY, while apparel exports grew by 8.1% YoY [91] - Online retail sales of clothing and related products grew by 4.7% YoY from January to October 2024 [91] Textile Manufacturing Sector - The textile manufacturing sector saw a 5.6% YoY revenue growth in Q1-3 2024, driven by recovering overseas demand [105] - Key sub-sectors with strong growth include non-woven fabrics (+14.0%), accessories (+24.5%), and wool textiles (+10.5%) [112] - Recommended A-share companies in this sector include Huali Group, Weixing Shares, and JianSheng Group [2] Apparel & Home Textiles Sector - The apparel and home textiles sector experienced a 4.8% YoY revenue decline in Q1-3 2024 due to weak consumer demand [105] - Outdoor sports (+2.3%) and children's wear (+1.5%) were the most resilient sub-sectors [112] - Recommended A-share companies include Semir, Biyinzhuang, and Peacebird [2] Hong Kong Listed Sportswear Companies - Major sportswear brands achieved 7.6% revenue growth in H1 2024, with Anta Sports leading at 14.1% growth [131] - Sportswear OEM companies saw 10.6% revenue growth in Q1-3 2024, with Huili Group growing 22.4% [141] - Inventory levels remained healthy, with Anta's main brand and FILA maintaining inventory-to-sales ratios below 5 months [133] Key Investment Themes for 2025 - Six major investment themes identified: trade friction, second growth curve, brand recovery, home textile recovery, outdoor trends, and market value management [2] - The outdoor sector is expected to maintain high growth momentum in 2025 [2] - Home textile demand is likely to recover due to stabilizing real estate market and wedding demand [2] Valuation and Performance Metrics - As of November 15, 2024, the textile and apparel industry had a PE (TTM) of 19.1, ranking 20th among 28 SW primary industries [94] - The industry's dividend yield was 3.8%, ranking 3rd among SW primary industries [94] - Hong Kong-listed durable consumer goods and apparel sector had a PE (TTM) of 37.5, ranking 5th among 26 GICS sub-industries [96]

Investment Rating - The investment rating for the textile and apparel industry is "Buy" [4]. Core Viewpoints - The textile and apparel industry is expected to see stable growth due to high entry barriers and strong competitiveness, despite some short-term trade friction risks for leading companies. Key companies to watch include Nanshan Zhishang, Weigang Medical, and Zhejiang Natural in the upstream textile manufacturing sector, and Huali Group, Weixing Co., and Jiansheng Group in the downstream apparel and home textile sectors [4][3]. - The report highlights the positive impact of government subsidy policies on home textiles, which are expected to benefit leading companies like Fuanna and Mercury Home Textiles if the real estate market recovers [4][3]. Summary by Sections 1. Industry Market Review - During the period from November 18 to November 22, the Shanghai Composite Index fell by 1.91%, while the textile and apparel sector (SW) rose by 1.16%, ranking 4th among 31 primary industries [41][4]. - The light industry sector (SW) increased by 0.66%, ranking 9th [41]. 2. Industry Data Tracking - In October 2024, China's cotton sock export value reached $229 million, a year-on-year increase of 20.3%. For the first ten months of 2024, the export value was $2.216 billion, up by 0.1% year-on-year [4]. - The export value of seamless apparel in October 2024 was $1.309 billion, reflecting a year-on-year increase of 14.0%, with a total of $13.69 billion for the first ten months, up by 4.6% [4]. 3. Key Company Valuations and Financial Analysis - Key companies in the textile and apparel sector are rated as "Buy" with reasonable values projected for their stocks. For example, Bi Yin Le Fen has a target price of CNY 32.19, while Anta Sports is projected at HKD 100.69 [8]. - The report includes detailed financial metrics such as EPS, PE ratios, and ROE for various companies, indicating a generally favorable outlook for the sector [8].