Investment Rating - The industry investment rating is "Hold" [4] Core Views - The construction materials industry is experiencing a downward trend in demand, with a notable decline in profitability across various segments. The consumer building materials sector has seen a revenue decrease of 5.8% year-on-year in the first three quarters of 2024, with quarterly changes of +0.2%, -5.3%, and -10.7% respectively. The pressure from construction completions is increasing, and while the consumer segment is performing better than the business segment, retail growth is beginning to face challenges in Q3 [2][3] - In the cement sector, weak demand has led to a significant profit decline, with net profit for the first three quarters of 2024 at 3.16 billion yuan, down 75.3% year-on-year. However, there have been positive changes on the supply side, with companies increasing production cuts to improve profitability [2][3] - The glass industry is facing losses across both float and photovoltaic glass sectors, with the float glass sector's net profit down 38% year-on-year and the photovoltaic glass sector down 59%. The industry is waiting for demand recovery while accelerating production cuts [3] - The fiberglass sector has shown a slight improvement in Q3, with a year-on-year net profit decline of 63% in the first three quarters of 2024. The leading companies in this sector continue to perform better than their peers [3] Summary by Sections Consumer Building Materials - The consumer building materials sector is experiencing a sequential decline in revenue, with a notable drop in net profit of 30% year-on-year for the first three quarters of 2024. The leading companies are expected to see cash flow improvements first [2][3][22] - The competitive landscape is intensifying due to increased pressure on margins from raw material costs and heightened competition, although signs of a price war bottoming out are emerging [2][3] Cement - The cement industry is facing weak demand, resulting in a significant profit decline. The net profit for the first three quarters of 2024 is reported at 3.16 billion yuan, a 75.3% decrease year-on-year. However, companies are actively reducing production to stabilize prices and improve profitability [2][3][22] Glass - The float glass sector has seen a 38% year-on-year decline in net profit, while the photovoltaic glass sector has experienced a 59% drop. The industry is currently in a loss-making phase, with production cuts being implemented to await demand recovery [3][22] Fiberglass - The fiberglass sector has shown a slight recovery in Q2, with a year-on-year net profit decline of 63% in the first three quarters of 2024. Leading companies are maintaining a competitive edge despite the overall sector challenges [3][22]

Investment Rating - The report maintains a "Buy" rating for the biopharmaceutical industry [4]. Core Insights - The biopharmaceutical industry is experiencing steady growth, with significant increases in the issuance of blood products and vaccines in the first ten months of 2024 [2][52]. - The report highlights specific growth in human coagulation factor IX, rabies immunoglobulin, and histamine human immunoglobulin, while noting slight increases in albumin, factor VIII, and fibrinogen. However, there are declines in intravenous immunoglobulin (IVIG) and prothrombin complex concentrate (PCC) [2][52]. Summary by Sections Blood Products - In the blood products sector, the total issuance of human albumin reached 4,727 batches (up 1% year-on-year), with imports accounting for 3,245 batches (up 5%), representing 69% of total issuances. Domestic albumin issuance was 1,482 batches (down 6%) [2][52][55]. - The issuance of IVIG totaled 1,124 batches (down 12%), primarily due to a high base in the previous year [2][60]. - Human coagulation factor VIII saw an issuance of 492 batches (up 7%), with notable growth from companies like Palin Bio and Shanghai Raist [2][61]. - The issuance of prothrombin complex concentrate dropped to 225 batches (down 28%), with significant increases from companies like Bohui Innovation and Tiantan Bio [2][64]. - Human fibrinogen issuance totaled 249 batches (up 5%), with Shanghai Raist and Boya Bio leading the market [2][67]. - The issuance of rabies immunoglobulin reached 132 batches (up 14%), with significant contributions from Hualan Bio and Yuanda Shuyang [2][70]. Vaccines - In the vaccine sector, there was rapid growth in the issuance of shingles vaccines, influenza virus split vaccines, and quadrivalent influenza virus subunit vaccines [2]. - The issuance of HPV vaccines showed a decline, with the two-valent HPV vaccine at 53 batches (down 85%) and the quadrivalent at 4 batches (down 89%). However, the nine-valent HPV vaccine issuance was 111 batches (down 5%) [2]. - The issuance of the 13-valent pneumonia conjugate vaccine was 66 batches (down 27%), while the 23-valent pneumonia polysaccharide vaccine saw 38 batches (down 43%) [2]. - The total issuance of influenza vaccines was 382 batches (down 2%), with the quadrivalent split vaccine at 204 batches (down 33%) and the quadrivalent subunit vaccine at 15 batches (up 200%) [2][72]. Investment Recommendations - The report suggests focusing on companies such as Tiantan Bio, Boya Bio, Palin Bio, Hualan Bio, and Shanghai Raist in the blood products sector. For vaccines, it recommends companies like CanSino Biologics, Kangtai Biological, and Zhifei Biological [2].

Investment Rating - The report assigns a "Buy" rating for the banking sector [1]. Core Insights - The report highlights a significant rebound in M1 and M2 growth rates, indicating improved liquidity in the banking sector. The demand for credit from households has shown a notable recovery, while corporate credit demand remains weak due to improved cash flow [1][2]. - The report anticipates that the financial data from October indicates a bottoming out of social financing growth, with expectations for further recovery driven by fiscal expansion and demand-side reforms [1][2]. Summary by Sections Overall Situation - M1 and M2 growth rates have rebounded significantly, with M1 showing a month-on-month increase of 0.52 trillion CNY and M2 increasing by 0.23 trillion CNY. The overall social financing growth rate is reported at 7.8% for October, down from 8.0% in September [1][19]. Government Sector - The report notes a significant increase in fiscal efforts, with net government bond financing of 1.05 trillion CNY in October, a year-on-year decrease of 0.51 trillion CNY. The report also mentions an increase in fiscal deposits, indicating a stronger fiscal stance [1][19]. Household Sector - There is a comprehensive improvement in household credit demand, with short-term and medium-to-long-term loans increasing by 0.15 trillion CNY and 0.04 trillion CNY respectively in October. This reflects a recovery in short-term credit demand and a favorable environment for medium-to-long-term loans [1][19]. Corporate Sector - Corporate credit demand has decreased primarily due to a significant seasonal increase in fiscal deposits and improved cash flow from capital markets. This has led to a notable improvement in corporate liquidity, which is reflected in the M1 growth turning a corner [1][19]. Non-Bank Sector - The report indicates a significant increase in non-bank deposits, likely driven by a shift in deposits towards securities margin accounts as the capital market improves. This trend is expected to continue as M2 growth outpaces social financing growth [1][19].

Investment Rating - The industry investment rating is "Buy" as of November 10, 2024 [2]. Core Insights - The report highlights a narrowing of the China-US interest rate spread, with the 10-year US Treasury yield spread (China - US) at -2.19%, an increase of 3.61 basis points from the previous period. The actual annual yield from RMB arbitrage trading on 10-year US Treasuries is estimated at 0.73%, an increase of 1.28 percentage points [2][17]. - The report notes a slight appreciation of the RMB, with the SDR to RMB exchange rate increasing by 0.13% during the observation period [2][17]. - Chinese assets are underperforming globally, with the Hang Seng Index rising by 1.08% and the Nasdaq China Golden Dragon Index declining by 0.55% [2][18]. Summary by Sections 1. Interest Rate Arbitrage Returns - The report indicates that the 6M, 1Y, 5Y, 10Y, and 30Y China-US Treasury yield spreads are -3.04%, -2.91%, -2.46%, -2.19%, and -2.19%, respectively, with changes of -3.03bp, -4.03bp, -0.47bp, +3.61bp, and +6.00bp [17]. - The estimated annual yields for 1Y, 5Y, 10Y, and 30Y US Treasury RMB arbitrage trading are 1.98%, 0.88%, 0.73%, and 0.57%, reflecting increases of 1.38 percentage points, 1.29 percentage points, 1.28 percentage points, and 1.28 percentage points, respectively [17]. 2. SDR Major Economies Tracking - In China, the October CPI year-on-year growth is 0.3%, with a month-on-month decrease of 0.1 percentage points. The core CPI (excluding food and energy) increased by 0.2% year-on-year, while the PPI decreased by 2.9% year-on-year [32]. - The US service sector PMI for October is reported at 56.0, an increase of 1.1 from September [32]. - In Europe, the September PPI decreased by 3.4% year-on-year and 1.1 percentage points month-on-month [32].

Investment Rating - The report assigns a **Buy** rating to Ruifeng Bank (601528 SH) with a target price of **6 53 yuan** per share, compared to the current price of **5 33 yuan** [2] Core Views - Ruifeng Bank has a strong foothold in the Shaoxing Keqiao District, with its business extending to Yuecheng District, Shengzhou City, and Yiwu City in Jinhua The region's robust GDP and active private economy provide fertile ground for small and micro-enterprise (SME) business development [2] - The bank has built a deep moat in SME services through innovative models such as the "Enterprise Credit Database" and the "Three Divides, Three Looks, and Three Weights" approach, which have effectively countered competition from larger banks [2] - Ruifeng Bank's SME loans grew by **15 4% YoY** in Q2 2024, with SME loans accounting for **39 91%** of total loans, ranking second among listed rural commercial banks [2] - The bank's merger and acquisition (M&A) strategy has enhanced profitability By acquiring stakes in Yongkang and Cangnan Rural Commercial Banks, Ruifeng Bank has boosted its ROE by **0 4 PCT** and **0 3 PCT**, respectively, in 2024 [3] - The bank's ROA is at the mid-level among rural commercial banks, supported by higher interest income, non-interest income, and lower operating costs [3] - Ruifeng Bank's asset quality remains stable, with a non-performing loan (NPL) ratio of **0 97%** for four consecutive quarters and a steadily increasing provision coverage ratio [3] Regional Advantages - Ruifeng Bank is deeply rooted in the Keqiao District, which is the largest textile industry cluster in China The district's industrial transformation and the construction of SME industrial parks provide a solid foundation for sustainable credit growth [2] - The bank's business extends to Yuecheng District, Shengzhou City, and Yiwu City, with Keqiao contributing **78 86%** of operating income and **57 64%** of operating profit in H1 2024 [50] - The bank's deposit and loan market share in Keqiao reached **32 26%** and **20 34%**, respectively, in 2023, significantly higher than its average market share in Shaoxing [50] SME Business Model - Ruifeng Bank has developed a unique SME model, combining the "Enterprise Credit Database" with the "Three Divides, Three Looks, and Three Weights" approach This model ensures efficient credit assessment and loan approval for SMEs [92] - The bank has also implemented the "One Township, One City, One Market" model, which caters to the diverse financial needs of rural, urban, and market-based SMEs [92] - The "Hundred Parks Project" has established service stations in 100 SME industrial parks, providing grid-based, mobile, and professional services to fill service gaps [93] Financial Performance - Ruifeng Bank's net profit is expected to grow by **12 52%** and **10 32%** in 2024 and 2025, respectively, with EPS of **0 99 yuan** and **1 09 yuan** per share [3] - The bank's current valuation is **5 38X** and **4 88X** PE for 2024 and 2025, respectively, with a PB of **0 57X** and **0 52X** [3] - The report values Ruifeng Bank at **0 7X PB** for 2024, corresponding to a target price of **6 53 yuan** per share [3]

Investment Rating - The industry investment rating is "Buy" [1] Core Viewpoints - The report emphasizes the clear direction of China's food security strategy and the acceleration of the industrialization of biological breeding. The reliance on imports for agricultural products like soybeans is high, and the instability in global agricultural supply chains has reinforced the strategic importance of food security and self-sufficiency in seed sources. The report highlights the government's initiatives since 2021 to enhance seed source security, promote agricultural biotechnology projects, and accelerate the industrialization of biological breeding [10][48]. Summary by Sections Section 1: Weekly Insights - The report discusses the impact of U.S. trade policies on China's agricultural planting industry from 2017 to 2021, noting significant fluctuations in soybean prices due to tariffs and trade negotiations. The reliance on U.S. soybeans decreased from 34% in 2017 to 19% in 2018 due to tariffs [34]. Section 2: Agricultural Sector Performance - The agricultural sector outperformed the market by 0.5 percentage points during the week [24]. Section 3: Agricultural Product Price Tracking - As of November 8, 2024, the average price of lean meat pigs was 16.7 CNY/kg, down 3.4% week-on-week but up 12.5% year-on-year. The average price of piglets was 462.3 CNY/head, up 5.4% week-on-week. The report also tracks prices for various agricultural products, including corn at 2233 CNY/ton (down 0.4% week-on-week) and soybean meal at 3175 CNY/ton (up 3.6% week-on-week) [11].

Investment Rating - The industry investment rating is "Buy" [1] Core Insights - The media sector saw a 7.53% increase from November 4 to November 8, outperforming the Shanghai Composite Index by 2.02 percentage points, driven by positive performance from leading gaming products and advancements in AI video applications [4][30] - The report highlights the upcoming launch of key gaming titles, including "Zhu Xian World" on December 19 and "Xian Jian World" on January 9, which are expected to activate existing user bases and improve market sentiment [5][32] - The report emphasizes the positive outlook for the internet media sector, particularly for leading companies like Tencent and Meituan, which are expected to benefit from a stable competitive landscape and robust fundamentals [5][36] Summary by Sections Media Weekly Perspective - The media sector is experiencing a recovery, with significant contributions from the gaming industry and AI video advancements, alongside favorable policy changes and economic recovery expectations [30] Game Dynamics - The report suggests focusing on the changes in the PC game segment, with the anticipated release of "Zhu Xian World" expected to rejuvenate the market [32] - Recommendations include monitoring companies with strong new product pipelines and performance expectations, such as Perfect World and Kaiying Network [5][36] Internet Sector - The report advises attention to leading companies like Tencent and Meituan, which are expected to see valuation re-adjustments due to stable competition and solid fundamentals [5][36] - The e-commerce sector, particularly companies like Kuaishou, is highlighted for potential upward valuation adjustments driven by economic recovery [31][36] AI and Video Applications - The report notes significant advancements in AI video technologies, with multiple companies launching new models and applications, indicating a positive trend in commercial viability [33][36] Investment Recommendations - The report recommends a diversified approach across various segments, including internet media, gaming, publishing, and film, with specific companies highlighted for their growth potential and market positioning [5][36]

Investment Rating - The industry rating is "Buy" [2] Core Insights - The domestic semiconductor equipment market is expanding continuously due to the ongoing expansion of wafer production capacity, technological upgrades in semiconductor manufacturing, and accelerated domestic substitution trends [2][57]. - In August 2024, a total of 10 bids were recorded, primarily for grinding, polishing, measurement, and coating equipment, with a significant domestic winning bid ratio of approximately 70% [2][72]. - The overall winning bid ratio for domestic equipment in the first eight months of 2024 was about 32%, with notable performance in equipment categories such as stripping, gas-liquid systems, and testing equipment [2][57]. 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 the expansion of applications [18]. - China's wafer production capacity is growing faster than the global average, with a projected capacity of 860 million wafers per month in 2024, a year-on-year increase of 13.2% [22][24]. - The global wafer capacity is expected to reach 31.49 million wafers per month in 2024, reflecting a growth of 6.4% year-on-year [19][22]. 2. August Winning Bids for Equipment - In August 2024, the winning bids included 10 pieces of equipment, with a significant focus on grinding, polishing, measurement, and coating equipment [2][72]. - The domestic winning bid ratio for grinding and polishing equipment was particularly high, indicating strong domestic capabilities [2][72]. - The total number of bids in the first eight months of 2024 reached 275, with Huahong Semiconductor, Jita Semiconductor, and Yandong Technology leading in bid volume [2][74]. 3. Investment Recommendations - The report suggests focusing on companies with strong positions in core semiconductor processes and those that have expanded their product lines this year, such as Northern Huachuang, Zhongwei Company, Huahai Qingke, and others [2][57]. - The domestic semiconductor equipment market is expected to benefit from the expansion of market size and the deepening of domestic substitution processes [2][67].

Investment Rating - The report suggests a "Buy" rating for several domestic pharmaceutical companies, indicating a positive outlook for their innovative drug development and potential market performance [3][8]. Core Insights - The report highlights the increasing recognition of China's new drug research and development capabilities on the international stage, with multiple domestic companies showcasing promising data at the 2024 ASH conference [3][6]. - The report emphasizes the focus on innovative drugs and specialty pharmaceuticals, recommending attention to companies with data that exceed expectations or have the potential to become "best in class" [3][6]. Summary by Sections ASH Conference Overview - The 2024 ASH conference is set to take place from December 7 to 10 in San Diego, USA, with over 27,000 participants expected, including hematologists and healthcare professionals from more than 100 countries [2][21]. - Approximately 77 Chinese studies have been selected for oral presentations, showcasing the advancements in various drug types, including small molecules, monoclonal antibodies, bispecific antibodies, ADCs, and CAR-T therapies [2][21]. Key Research Summaries from Domestic Companies Leukemia - **AML**: Bai Li Tian Heng's BL-M11D1 (CD33 ADC) shows promising Phase I clinical data with an overall response rate (ORR) of 50% at the highest dose [33]. - **China National Pharmaceutical Group**: TQB3455, an IDH2 inhibitor, demonstrates a 94.1% overall response rate in patients with relapsed/refractory AML and MDS [35]. Other Hematological Malignancies - **Multiple Myeloma (MM)**: - Ankai Biotech's BCMA/CD3 bispecific antibody shows good safety in heavily treated MM patients [3]. - Kexing Pharmaceutical's allogeneic CAR-T therapy shows promising durability of response [3]. - **Myelodysplastic Syndromes (MDS)**: Ascentage Pharma's Lisaftoclax combined with Azacitidine achieves high remission rates without TLS [3]. Investment Recommendations - The report recommends focusing on innovative drug companies such as: - **Innovative Drugs**: Heng Rui Pharmaceutical, Han Sen Pharmaceutical, Bai Li Tian Heng-U, and others [3]. - **Specialty Pharmaceuticals**: Renfu Pharmaceutical, Enhua Pharmaceutical, Dongcheng Pharmaceutical, etc. [3].

Investment Rating - The report suggests focusing on domestic CIS manufacturers, domestic packaging manufacturers like Jingfang Technology, and domestic camera module manufacturers [5]. Core Insights - Spectral analysis is gradually emerging in mobile phones, enhancing color performance through temperature adjustment and automatic white balance [3][23]. - The rapid development of spectral analysis technology is driven by miniaturization and computational spectral imaging, which addresses traditional limitations [4][41]. - The market for spectral imaging chips in mobile phones is expected to grow significantly, with potential market sizes projected between 500 million to 1 billion USD [52]. Summary by Sections 1. Emergence of Spectral Analysis in Mobile Phones - Spectral analysis provides rich information about the interaction between light waves and materials, with applications in various fields including disease diagnosis and food safety [18][20]. - Current applications in mobile phones focus on optimizing color performance through temperature adjustments and automatic white balance [23]. 2. Rapid Development of Spectral Analysis Technology - Traditional spectral imaging technologies face challenges such as large size, high cost, and slow imaging speed [31]. - Miniaturization and computational techniques are advancing, leading to the development of compact spectral systems [41][43]. 3. Key Companies in the Spectral Analysis Industry Chain - The industry chain includes upstream CIS, materials, and foundries; midstream multi-spectral design, modules, and packaging; and downstream terminal products [5][55]. - Key players include: - Multi-spectral solution providers: Yiguang Technology, Sony, Qiushi Spectrum [5]. - CIS manufacturers: OmniVision, Gekewei, Sitowei [5]. - Packaging and module manufacturers: Jingfang Technology, Qiutai Technology, Sunny Optical Technology, OFILM [5][76]. 4. Market Potential for Spectral Imaging Chips - The report highlights the broad market potential for spectral imaging chips in mobile phones, driven by increasing adoption and technological advancements [51][52].