Investment Rating - The investment rating for the medical device industry is "Buy" [2]. Core Insights - The overall revenue of the A-share medical device sector grew by 1.39% year-on-year in Q3 2024, while net profit attributable to shareholders decreased by 17.36%. The industry gross margin was 48.45%, down 2.03 percentage points year-on-year [24][25]. - The medical device sector is experiencing weak overall growth, with stable export growth but continued pressure on domestic demand due to macroeconomic policies and external factors. However, there are positive expectations for recovery in the sector driven by equipment upgrades and domestic demand recovery [24][27]. - The equipment segment saw a revenue decline of 3.63% year-on-year in Q3 2024, with net profit down 29.63%. The demand for equipment has been under pressure since the second half of last year, but there are signs of asset recovery and potential performance improvement in the future [30][31]. - The consumables and IVD segments maintained revenue growth, although the growth rate has slowed down. The IVD sector faced challenges due to policy changes, but certain areas like chemiluminescence testing remain resilient [30][31]. Summary by Sections Overall Business Review - The medical device sector's revenue growth has slowed, with domestic demand under pressure. In Q3 2024, the overall revenue growth was 1.39%, and net profit attributable to shareholders decreased by 17.36% [24][25]. - The gross margin for the sector was 48.45%, down 2.03 percentage points year-on-year, indicating a challenging environment for profitability [24][25]. Equipment - The equipment segment's revenue declined by 3.63% year-on-year in Q3 2024, with net profit down 29.63%. The segment is expected to recover as demand improves and policies are implemented [30][31]. Consumables and IVD - The consumables segment saw a year-on-year revenue growth of 9.47% in Q3 2024, while the IVD segment faced challenges but showed resilience in specific areas [30][31]. Consumer Medical - The consumer medical sector, particularly the aesthetic medicine industry, is under pressure due to weak high-end consumption. However, there are opportunities in the domestic and international testing fields, especially during the respiratory disease season [30][31].

Investment Rating - The industry investment rating is "Buy" [3] Core Insights - The traffic informationization sector is gradually gaining momentum, with expectations for increased fiscal policy support. Historical trends indicate that policy benefits are the core driving force behind the traffic informationization sector's performance. Recent macroeconomic improvements and enhanced policy support for enterprises suggest a positive outlook for future fiscal initiatives. Micro-level data shows a good implementation of digital transformation in road and waterway transportation infrastructure, with a noticeable increase in project tenders starting from October. Multiple provincial projects have been initiated, and while the pace of tenders related to vehicle-road-cloud integration is slower, the large scale of these projects indicates that significant tenders may commence after the 2025 Q1 Two Sessions [1][21][35]. Summary by Sections 1. Traffic Informationization: Positive Trends Established, Tendering Gradually Increasing - The traffic informationization sector has been driven by policies such as the promotion of ETC and vehicle-road collaboration, with significant developments occurring from 2019 to 2024. Recent policies have focused on digital transformation in transportation infrastructure, with expectations for substantial investments in the sector [21][22][27]. 2. Updates on Core Hardware Penetration Rates in Automotive Intelligence - The penetration rates of core hardware in the intelligent driving domain are rapidly increasing. For instance, the number of laser radars reached 848,000 units from January to August 2024, marking a year-on-year growth of 254.8%. Domestic manufacturers dominate the laser radar and intelligent driving domain control markets, with Desay SV as the market leader holding a 23.9% market share [2][46][47][51]. 3. Investment Recommendations - The report suggests focusing on two main lines for investment: 1. Traffic informationization, with recommended companies including Jin Yi Technology, Tongxingbao, Wanjitech, and Qianfang Technology. 2. Core components and service providers for intelligent driving, with continued recommendations for Desay SV and Daotong Technology, and attention to companies like Zhongke Chuangda, Jingwei Hengrun, Hezhima Intelligent, Ruiming Technology, Hesai Technology, Suteng Juchuang, Juguang Technology, Siwei Tuxin, and Junsheng Electronics [2][30].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [5][24]. Core Insights - Tencent's Q3 2024 revenue reached 167.2 billion RMB, with a year-over-year (YoY) growth of 8% and a quarter-over-quarter (QoQ) growth of 4%, slightly below Bloomberg consensus expectations of 167.9 billion RMB. The Non-GAAP net profit attributable to shareholders was 59.8 billion RMB, reflecting a YoY increase of 33% and a QoQ increase of 4%, surpassing consensus expectations of 54.4 billion RMB [1][2]. Summary by Relevant Sections Financial Performance - Q3 2024 gaming revenue was 51.8 billion RMB, showing a YoY increase of 13% and a QoQ increase of 7%. Domestic game revenue grew by 14%, driven by titles such as "Valorant," "Honor of Kings," "Peacekeeper Elite," and "Dungeon & Fighter: Origin." International game revenue increased by 9%, with strong performances from "PUBG Mobile" and "Brawl Stars" [2][12]. - Social network revenue for Q3 2024 was 30.9 billion RMB, with a YoY increase of 4% and a QoQ increase of 2% [2]. - Online advertising revenue reached 30 billion RMB, reflecting a YoY increase of 17% and a QoQ increase of 0%. Demand from advertisers in video accounts, mini-programs, and search services contributed to this growth [2][13]. - Financial and enterprise services revenue was 53.1 billion RMB, with a YoY increase of 2% and a QoQ increase of 5%. Financial services revenue remained stable YoY, while enterprise services revenue grew due to merchant technology service fees [2][12]. Earnings Forecast and Valuation - The report forecasts Tencent's revenue for 2024 and 2025 to be 657.9 billion RMB and 713.0 billion RMB, respectively, with YoY growth rates of 8.0% and 8.4%. Adjusted net profit is expected to be 221.8 billion RMB and 244.4 billion RMB, reflecting growth rates of 45.0% and 10.2% [3][24]. - The estimated fair value based on the Sum-of-the-Parts (SOTP) valuation method is 485.21 HKD per share [5][24]. Business Segments Valuation - The core business valuation is estimated at 4.08 trillion HKD, with gaming business valued at 1.77 trillion HKD, marketing services at 973.9 billion HKD, and financial and enterprise services at 1.23 trillion HKD [24][23].

Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 13.75 CNY per share, compared to the current price of 12.26 CNY [6]. Core Insights - The company reported a revenue of 10.809 billion CNY for the first three quarters of 2024, a year-on-year decrease of 13.49%, and a net profit attributable to shareholders of 855 million CNY, down 21.95% year-on-year [3]. - In Q3 2024 alone, the company achieved a revenue of 2.612 billion CNY, reflecting a significant year-on-year decline of 40.91%, with a net profit of 253 million CNY, down 28.70% year-on-year [3]. - The gross margin for the first three quarters was 20.58%, an increase of 2.36 percentage points year-on-year, while the Q3 gross margin was 27.48%, up 9.7 percentage points year-on-year [4]. - The company experienced a notable increase in operating expenses, with a Q3 expense ratio of 12.62%, up 7.03 percentage points year-on-year, primarily due to increased promotional expenses [4]. Revenue Breakdown - Revenue from self-operated offline business grew by 9.77% year-on-year to 1.354 billion CNY, and e-commerce revenue increased by 5.94% year-on-year to 1.653 billion CNY. However, revenue from franchise business fell by 19.75% year-on-year to 7.66 billion CNY [5]. - As of the end of September, the company had a total of 5,235 retail outlets, comprising 4,886 franchise stores and 349 self-operated stores, marking a net increase of 129 stores since the beginning of the year [5]. Financial Forecast - The company is projected to generate revenues of 14.461 billion CNY, 16.277 billion CNY, and 17.980 billion CNY for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of -11.2%, 12.6%, and 10.5% [5]. - Net profit attributable to shareholders is expected to be 1.08 billion CNY, 1.23 billion CNY, and 1.37 billion CNY for the same years, with year-on-year growth rates of -18.2%, 13.9%, and 11.7% [5].

Industry Rating - The industry rating for the agriculture, forestry, animal husbandry, and fishery sector is **Buy** [4] Core Views - The pig price experienced a downward trend in early November, with the price falling below 17 yuan/kg, while the breeding sow capacity continued to recover slowly [10] - The overall breeding profit remains in the positive range, with self-breeding profits at 264 yuan/head as of November 8 [10] - The total number of commercial pigs sold by listed companies in October reached 13.99 million, a month-on-month increase of 15.19% and a year-on-year increase of 15.88% [23] - The average sales price of listed companies in October was 17.57 yuan/kg, a month-on-month decrease of 6.74% [25] - The average weight of pigs sold by listed companies in October was 107.15 kg/head, a month-on-month decrease of 2.39% [26] Company Tracking - **Muyuan Foods**: Sold 6.498 million commercial pigs in October, a month-on-month increase of 21.3% and a year-on-year increase of 33.2% [23] - **Wens Foodstuff Group**: Sold 2.672 million commercial pigs in October, a month-on-month increase of 6.4% and a year-on-year increase of 11.5% [23] - **New Hope**: Sold 1.253 million commercial pigs in October, a month-on-month increase of 5.1% but a year-on-year decrease of 14.8% [23] - **Tangrenshen Group**: Sold 497,000 commercial pigs in October, a month-on-month increase of 55.3% and a year-on-year increase of 29.5% [23] - **Tiankang Bio**: Sold 284,000 commercial pigs in October, a month-on-month increase of 0.9% and a year-on-year increase of 22.9% [23] - **Huazhong Agriculture**: Sold 201,000 commercial pigs in October, a month-on-month decrease of 4.1% but a year-on-year increase of 9% [23] Investment Recommendations - The pig breeding sector is currently undervalued, with large-scale breeding companies such as **Wens Foodstuff Group** and **Muyuan Foods** being key recommendations [37] - Smaller-scale breeding companies like **Tangrenshen Group**, **Tiankang Bio**, and **Huazhong Agriculture** are also worth monitoring [37] - The industry's supply is expected to remain tight, with cautious expansion actions from companies, which may lead to a longer-than-expected period of high profitability [37]

Investment Rating - The industry investment rating is "Buy" [2] Core Viewpoints - The report emphasizes the regulatory optimization of the capital market ecosystem, highlighting trading opportunities in the non-bank financial sector [2] - The issuance of the market value management guidelines aims to regulate low-price competition in sponsorship services, enhancing investor confidence and promoting the healthy development of the capital market [2][19] - The insurance sector is expected to benefit from increased demand for savings-type products and regulatory support for elderly financial services, leading to a sustained high growth rate in profits [19][15] - The report suggests focusing on stocks with high earnings elasticity in the brokerage and securities IT sectors, particularly in light of favorable policy implementation and improved performance [2][19] Summary by Sections 1. Recent Performance - As of November 15, the Shanghai Composite Index fell by 3.52%, and the Shenzhen Component Index decreased by 3.70% [13] - The average daily trading volume in the Shanghai and Shenzhen markets was 2.2 trillion yuan, a decrease of 9.03% month-on-month [2] 2. Industry Dynamics and Weekly Review (1) Insurance - The insurance sector is experiencing a phase of recovery, with life insurance premium growth slowing slightly while property insurance continues to accelerate [15] - For the first ten months, the premium growth rates for major life insurers were 9% for Ping An, 4.9% for China Life, 1.8% for New China Life, and 2.4% for China Pacific [15] - Property insurance premiums grew at rates of 4.8% for PICC, 6.5% for Ping An, and 7.4% for China Pacific, indicating a positive trend [15] (2) Securities - The newly released market value management guidelines are designed to enhance the quality of listed companies and improve shareholder returns [21] - The guidelines require listed companies to adopt strategies that reflect their investment value and shareholder return capabilities, including mergers, stock buybacks, and dividend policies [21][22] - The report notes that the guidelines provide greater flexibility while also imposing stricter requirements on certain companies, particularly those with long-term undervaluation [23][30] 3. Stock Recommendations - The report recommends focusing on stocks such as China Pacific Insurance (A/H), New China Life (A/H), and Ping An (A/H) in the insurance sector [19] - In the securities sector, stocks like Huatai Securities, CITIC Securities, and Guotai Junan are highlighted for their potential [2][19]

Investment Rating - The industry rating is "Buy" [1] Core Viewpoints - The pet food industry showed strong performance during the Double 11 shopping festival, with total online sales reaching 5.9 billion CNY, a year-on-year increase of 23% [28] - The trend towards quality and health in pet consumption continues, with new processing methods and health-related products maintaining rapid growth [28] - Domestic pet food brands are rapidly catching up, with top brands dominating sales on major platforms during the Double 11 event [28] Summary by Sections Weekly Insights - The pet food sector's sales during Double 11 reached 5.9 billion CNY, with cat and dog food sales growing over 40% year-on-year [28] - New processing methods, such as low-temperature baking and fresh food, are leading the market, with cat baking food sales increasing by over 120% and dog baking food by over 60% [28] - Health awareness among pet owners is driving demand for medical and health products, with sales in this category growing by over 60% [28] Industry Tracking - As of November 15, the average price for live pigs was 16.3 CNY/kg, down 2.3% week-on-week but up 14.2% year-on-year [40] - The average price for piglets was 476 CNY/head, with a week-on-week increase of 3.0% [40] - The price of broiler chickens in Yantai remained stable at 3.8 CNY/lb, while chick prices fell by 0.5% [40] Agricultural Sector Performance - The agricultural sector underperformed the market by 2.8 percentage points, with a decline of 6.1% compared to a 3.3% drop in the CSI 300 index [44] - Sub-sectors such as animal health, agricultural processing, and feed experienced significant declines [44] Agricultural Product Price Tracking - The average price of corn fell by 1.1% week-on-week to 2208 CNY/ton, and soybean meal prices decreased by 4.4% to 3035 CNY/ton [68] - The price of wheat was 2462 CNY/ton, down 0.1% week-on-week [68]

Investment Rating - The report rates the communication industry as "Buy" [2]. Core Insights - The 2024 Global 6G Development Conference was successfully held in Shanghai, focusing on the theme "Advancing New Journeys - Looking Ahead to 6G Standard Frontiers" [16][17]. - The conference emphasized the importance of maintaining a unified global 6G standard and fostering a conducive environment for the development of the global mobile communication industry [16]. - Key application scenarios for 6G include ubiquitous connectivity, ultra-reliable low-latency communication, large-scale connections, immersive communication, and the integration of AI with communication [17][20]. Summary by Sections Industry Investment Rating - The communication industry is rated as "Buy" with a previous rating also being "Buy" [2]. Core Insights - The conference highlighted the need for collaboration among governments, industry organizations, and academia to create a high-performance, open, and standardized 6G ecosystem [16]. - The report notes that 6G will integrate more intelligent agents and will combine terrestrial and non-terrestrial networks to create a three-dimensional network [17][20]. 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 all mobile base stations [43]. - In September 2024, the domestic smartphone market saw a shipment of 25.371 million units, a year-on-year decrease of 23.8%, with 5G smartphones accounting for 88.9% of the total shipments [45]. - The three major telecom operators in China have developed 2.596 billion cellular IoT terminal users, representing 59.2% of the total mobile network terminal connections [51]. Market Performance - The communication sector outperformed the broader market indices, with a year-to-date increase of 27.2%, compared to 15.7% for the CSI 300 index [26][28]. - The report indicates that the communication sector's PE-TTM is 34.28, ranking it 8th among all sectors [34]. Investment Recommendations - The report suggests focusing on telecom operators participating in the digital economy, such as China Telecom, China Mobile, and China Unicom [20]. - It also recommends investing in companies involved in traffic and computing infrastructure, including ZTE, NewEase, Tianfu Communication, and Infinera [20].

[Table_Page] 金融工程|量化投资专题 2024 年 11 月 18 日 证券研究报告 识别风险，发现价值 请务必阅读末页的免责声明 1 / 31 ⚫ AI 看图：在去年发布的《基于卷积神经网络的股价走势 AI 识别与分类》 研究报告中，创新性地采用基于深度学习的图像识别技术，将价量数 据图表与未来股价走势进行建模，以实现股票价格预测。 ⚫ 股价预测之多模态多尺度：本文以"多模态、多尺度"为题，基于 AI 看图初版模型进行了大幅改进，新的模型结构如右图 1 所示。本文模 型在日度价量数据图表的基础上，加入了高频因子数据、日频时序数 据、周度价量数据图表，采用 4 个独立的深度时序模型和深度卷积模 型进行多模态、多尺度的特征提取，并同时采用回归损失和分类损失 以端到端的方式进行模型训练，有效提升了模型对未来股价的预测能 力，取得了更为显著的超额收益。 ⚫ 对比提升：以 2020/01/01~2024/10/31 作为样本外回测区间，每 20 个 交易日进行换仓，本文模型预测结果在全市场、沪深 300、中证 500、 中证 800、中证 1000、国证 2000、创业板的 RankIC 均值分别为 8. ...

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The performance of US tech stocks has shown strong resilience since August 2024, with stock prices stabilizing or reaching new highs, driven by robust company earnings and market patience towards AI developments [1][40] - Q3 2024 earnings continued to show strength, with a slight acceleration in revenue and an increase in profit margins. Major tech companies reported a total revenue growth of 13.9% year-on-year, reaching $363.2 billion, with a net profit margin of 23.2% [1][45] - AI technology is driving growth in cloud services, with significant contributions to revenue from AI applications, while traditional demand remains relatively weak [1][45] Summary by Sections Stock Price Review - Since the pandemic, US tech stocks have benefited from increased online activities and loose monetary policies, leading to a rise in both earnings and stock prices. However, from November 2021 to 2022, stock prices adjusted due to tightening liquidity expectations and economic recession concerns [34][40] - The market has shown strong resilience since August 2024, with companies demonstrating robust earnings and the market exhibiting patience towards AI developments [40] Q3 2024 Summary - Major US tech companies maintained strong performance in Q3 2024, with total revenue growth of 13.9% year-on-year and net profit growth of 29.5%. Microsoft, Amazon, Google, Meta, and Netflix all reported significant revenue increases [45][49] - Cloud services continued to show strong growth, with Microsoft Azure revenue increasing by 33% year-on-year, and Google Cloud revenue growing by 35% [45][49] - Advertising revenue growth has slowed but remains strong, with Google and Meta reporting year-on-year increases of 10.4% and 18.6%, respectively [46][49] Q4 2024 and Future Outlook - Companies are maintaining conservative guidance for Q4 2024, with expected revenue growth rates slowing but still showing strength. Microsoft anticipates a revenue increase of 10% to 11% for FY25Q1 [68] - High capital expenditures are expected to continue, with Microsoft and Amazon reporting significant year-on-year increases in capital spending [45][68] AI-Driven Cloud Growth - AI applications are deepening within companies, contributing significantly to revenue growth in cloud services. Microsoft, Google, and Amazon are all expanding their AI capabilities, with Microsoft projecting annual AI revenue to exceed $10 billion [1][68] - The report highlights the importance of AI in driving user engagement and advertising conversion rates, with applications like Copilot being gradually commercialized [1][40]