Investment Rating - The report does not explicitly state an investment rating for the company [1] Core Insights - Zhou Li Fu, established in 2004, focuses on the lower-tier market and has expanded its presence to high-tier cities, with 4,129 offline stores as of December 31, 2024, ranking fifth among all jewelry brands in China by store count [2][8] - The company's revenue grew from 3.102 billion RMB in 2022 to 5.718 billion RMB in 2024, with a CAGR of 35.8%, significantly outpacing the industry average of 2.7% [2][9] - Zhou Li Fu's net profit increased from 575 million RMB in 2022 to 706 million RMB in 2024, with a CAGR of 10.8% [2][9] - The Chinese jewelry market is projected to reach 728 billion RMB in 2024 and exceed 937 billion RMB by 2029, with a CAGR of 5.2% [2][21] - The company operates a franchise model with 98% of its stores being franchises, allowing for rapid low-cost expansion [2][43] Company Overview - Zhou Li Fu is a large-scale jewelry brand focusing on the lower-tier market, with a significant presence in third-tier and lower cities [8] - The company has a highly concentrated ownership structure, with major shareholders controlling approximately 93.70% of voting rights as of May 25, 2025 [2][18] Market Analysis - The jewelry market in China is steadily growing, with gold jewelry being the dominant segment, expected to reach 5.688 billion RMB in 2024 [21][32] - The market concentration is increasing, with the top five jewelry brands' market share rising from 29.7% in 2019 to 35.9% in 2024 [21][32] Competitive Advantages - Zhou Li Fu's franchise model allows for low-cost expansion and high profitability, with a gross margin of 25.9% in 2024, significantly higher than competitors [2][43] - The company has a stable and efficient supply chain, having transitioned to an outsourcing model since April 2022 [2][43] - Zhou Li Fu has a strong online presence, with online sales growing at a CAGR of 46.1% from 2022 to 2024, and online revenue accounting for 40% of total revenue in 2024 [2][49] Financial Performance - The company's gross margin decreased from 38.7% in 2022 to 25.9% in 2024, primarily due to an increase in product sales revenue [61] - Operating cash flow has steadily increased, indicating sufficient working capital to support business needs [62]

Investment Rating - The report maintains an investment rating of "Recommended" for the industry [1][27] Core Insights - The demand for AI hardware continues to grow as cloud service providers and various government departments and enterprises expand their AI infrastructure [27] - The semiconductor sector is facing challenges due to currency losses affecting revenue, particularly for Taiwanese IC design companies [14][15] - The overall revenue for Taiwanese PCB manufacturers is experiencing a year-on-year increase driven by AI server demand, despite a month-on-month decline [24] Summary by Sections Semiconductor - In May 2025, Taiwanese IC design companies experienced revenue declines due to currency losses, with MediaTek reporting NT$452 billion, a month-on-month decrease of 7.3% but a year-on-year increase of 7.2% [14] - TSMC's revenue for May was NT$3,205 billion, down 8.3% month-on-month but up 39.6% year-on-year, with expectations of maintaining a gross margin between 57%-59% [15][16] - Revenue for UMC and other IC manufacturers also showed declines, with UMC reporting NT$195 billion, down 4.8% month-on-month [16][17] PC/Server - Taiwanese PC/server manufacturers showed stable revenue in May 2025, with Hon Hai reporting NT$6,157 billion, a month-on-month decrease of 4.0% but a year-on-year increase of 11.9% [22] - Quanta's revenue reached NT$1,602 billion, up 4.0% month-on-month and 58.2% year-on-year, driven by strong AI server shipments [22][23] - Wistron and other manufacturers also reported significant year-on-year growth, with Wistron seeing a 162.1% increase [22] PCB - The overall revenue for Taiwanese PCB manufacturers in May 2025 decreased by 5.0% month-on-month but increased by 13.1% year-on-year [24] - Companies like Unimicron and Xinxing Electronics are expanding production capacity to meet the rising demand for high-end ABF substrates driven by AI servers [24] Optical Components - The optical component sector is currently in a traditional off-season, with major companies like Largan Precision reporting significant month-on-month declines [25] Storage - The storage sector is experiencing strong price increases for DDR4, with companies like Adata reporting a month-on-month revenue increase of 6.4% and a year-on-year increase of 29.2% [26]

Investment Rating - The report maintains a "Recommended" rating for the computer industry [4] Core Insights - The era of autonomous driving is approaching, establishing the core position of domain controllers in automotive systems. Traditional distributed control systems face challenges such as high complexity and development costs, leading manufacturers to consolidate multiple functions into a single controller [11][30] - The smart driving and smart cockpit domain controllers are entering a period of accelerated installation, with significant growth expected in market penetration rates for advanced driver-assistance systems (ADAS) and smart cockpit technologies [12][70] - The hardware architecture of domain controllers is centered around high-performance System on Chips (SoCs), which are becoming the mainstream in automotive chip design due to their ability to handle increasing computational demands as autonomous driving levels rise [13][87] Summary by Sections 1. Domain Controller Overview - The automotive architecture is evolving from distributed to centralized systems, necessitating the use of domain controllers to enhance system integration and performance [1.1][1.2] - The domain controller architecture consists of hardware, system software, algorithms, and application software, with a collaborative development model being the mainstream [1.3][3.1] 2. Smart Driving and Smart Cockpit Domain Controllers - The smart driving domain controller is crucial for processing data from various sensors, with projected penetration rates for L2 and L2++ ADAS expected to reach 36.8% and 7.3% by 2024 [12][52] - The global market for smart driving domain controllers was valued at 16.5 billion in 2022 and is expected to grow to 115.4 billion by 2026, with a compound annual growth rate (CAGR) of 62.6% [56] - The smart cockpit domain controller market is also set for rapid growth, with the global market expected to reach 4.296 trillion by 2025 [68][70] 3. Domain Controller Hardware Architecture - The hardware architecture of domain controllers includes communication, computation, and storage units, with SoCs playing a pivotal role in meeting the increasing computational requirements for higher levels of autonomous driving [3.1][81] - The trend towards "one chip, multiple functions" is evident in cockpit chip designs, which aim to reduce complexity and improve performance [3.2][92] 4. Investment Recommendations - The ongoing commercialization of the smart driving industry and the increasing penetration rates of smart driving and smart cockpit technologies are expected to drive the domain controller hardware and software supply chain into a rapid development phase [15][16]

Group 1: Express Delivery Industry - In May 2025, the express delivery industry experienced a year-on-year business volume growth of 17.2%, outpacing the growth of physical online retail sales at 8.2% and social consumer goods retail sales at 6.4% [3][4] - The average revenue per ticket in May 2025 was 7.25 yuan, reflecting a year-on-year decline of 7.62% and a month-on-month decline of 2.46%, indicating ongoing price competition in the industry [3][4] - Major companies like SF Express and YTO Express reported business volume growth rates of 31.76% and 21.02% respectively, while their average revenue per ticket saw declines of 13.97% and 4.93% respectively, highlighting the impact of price competition [4][5] Group 2: Aluminum Industry - The domestic aluminum industry is currently experiencing a favorable macroeconomic environment, with a stable supply of electrolytic aluminum and a decrease in costs, leading to improved profit margins for producers [6][7] - As of June 19, 2025, the average cost of electrolytic aluminum was approximately 17,030 yuan per ton, down 169 yuan from the previous week, while inventory levels remained low, supporting aluminum prices [7][12] - The demand for aluminum is facing challenges due to seasonal slowdowns in various downstream sectors, particularly in photovoltaic and home appliance industries, which are experiencing reduced operating rates [7][8] Group 3: Coal Industry - The coal market is showing signs of recovery as the demand for thermal coal increases, with port coal prices stabilizing at 609 yuan per ton as of June 20, 2025, and pithead prices beginning to rise [13][14] - The production capacity utilization rate in major coal-producing regions has increased slightly, indicating a stable supply despite some production cuts due to safety inspections [13] - The overall demand for coal is expected to improve as electricity consumption rises with the onset of summer heat, while coal inventories at power plants remain low compared to the previous year [13] Group 4: REITs Market - The first batch of data center REITs has been approved, marking a significant milestone in the domestic REITs market, which previously lacked offerings in this sector [17][18] - The total market capitalization of REITs reached 206.56 billion yuan, with a daily turnover rate of 0.60%, indicating a slight decrease in market activity [18][19] - The performance of property-type REITs has been strong, particularly in the affordable rental housing sector, which has seen significant gains [18][19] Group 5: Automotive Industry - The automotive sector has underperformed compared to the broader market, with a decline of 2.6% in the automotive index during the week of June 16-20, 2025 [22][23] - The "old-for-new" subsidy policy will continue to support automotive consumption, with significant investments in charging infrastructure by major automakers [23][25] - The launch of the Li Auto i6, a new electric SUV, is set for September 2025, reflecting ongoing innovation and product development in the sector [24][28] Group 6: Liquor Industry - The liquor sector has seen a decline of 4.27% over the past two weeks, but there are signs of emotional recovery as regulatory pressures ease [34][35] - Recent data indicates a significant improvement in retail sales growth for tobacco and alcohol, suggesting a potential rebound in consumer sentiment [36] - Major companies like Wuliangye are implementing reforms to enhance their market position, indicating a proactive approach to industry challenges [37][38]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Non - bank institutions are the main drivers pushing down interest rates in the recent bond market. The reasons include central bank's liquidity support, the need for non - bank institutions to increase returns, and seasonal factors of funds [2][12]. - For interest - rate bonds, there is a short - term winning chance, but it's hard to break through the previous low, and there may be redemption pressure after the quarter - end. For credit bonds, the possibility of short - term adjustment is low, and medium - long - term varieties of 3 - 5Y can be appropriately concerned [3][25]. 3. Summary According to the Catalog 3.1 Who is Front - running the Bond Market? 3.1.1 Which Institutions are Front - running? - Non - bank institutions are the main drivers of the recent interest rate decline. Funds have increased net purchases of 7 - 10Y and 20 - 30Y interest - rate bonds, while wealth management and insurance have increased allocation of credit bonds. Among banks, only large banks maintain high demand for short - term bonds, and rural financial institutions sell long - term and ultra - long - term interest - rate bonds [12]. - The reasons for non - bank institutions' front - running are: central bank's liquidity support, the need for non - bank institutions to increase returns as pure - bond funds have average performance this year, and seasonal factors of funds' scale - boosting at the end of the quarter [2][17][20]. 3.1.2 What Opportunities are Worth Paying Attention to Currently? - Interest - rate bonds: There is short - term winning chance, but it's difficult to break through the previous low, and there may be redemption pressure after the quarter - end, so opportunities for high - level layout can be concerned. - Credit bonds: The possibility of short - term adjustment is low, especially for 3 - 5Y medium - long - term varieties, but positions should be controlled [25]. 3.2 Institution Bond Custody Volume No specific content provided in the text for analysis. 3.3 Institution Fund Tracking 3.3.1 Fund Price - This week (June 16 - 20, 2025), liquidity remained basically unchanged. R007 closed at 1.59%, up 1BP from last week; DR007 closed at 1.49%, down 1BP from last week; the 6 - month national - stock transfer discount rate closed at 1.10%, up 1BP from last week [4][34]. 3.3.2 Financing Situation - This week, the balance of pledged reverse repurchase in the inter - bank market was 126419.2 billion yuan, up 5.4% from last week. Fund companies and bank wealth management had net financing of 508.7 billion yuan and 785.9 billion yuan respectively [37]. 3.4 Institution Behavior Quantitative Tracking 3.4.1 Assessing Fund Duration - This week, the duration measurement values of high - performing interest - rate bond funds and general interest - rate bond funds in the market were 6.79 and 5.18 respectively, with an increase of 0.03 and a decrease of 0.07 compared to last week [46]. 3.4.2 "Asset Scarcity" Index No specific analysis content provided in the text. 3.4.3 Institution Behavior Trading Signals No specific analysis content provided in the text. 3.4.4 Institution Leverage - This week, the overall market leverage ratio was 108.0%, up 0.4 percentage points from last week. Among them, the leverage ratio of insurance institutions was 114.0%, down 0.8 percentage points; the fund leverage ratio was 105.2%, up 0.9 percentage points; the securities firm leverage ratio was 213.8%, down 0.1 percentage points [63]. 3.4.5 Bank Self - operation Comparison Table - The table shows the nominal yield, tax cost, value - added tax, income tax, after - tax income, capital occupation cost, risk weight, capital adequacy ratio, capital profit margin, and after - tax and risk - capital - considered income of different investment products such as general loans, 10Y treasury bonds, etc. [68]. 3.5 Asset Management Product Data Tracking 3.5.1 Funds No specific analysis content provided in the text. 3.5.2 Bank Wealth Management - This week, the overall market wealth management product break - even rate remained basically unchanged from last week, with the overall product break - even rate at 1.8% [71]. 3.6 Treasury Bond Futures Trend Tracking No specific analysis content provided in the text. 3.7 General Asset Management Pattern No specific analysis content provided in the text.

Investment Rating - The industry investment rating is positive, with a focus on long-term value despite short-term volatility [3][34]. Core Insights - The report highlights that the North Exchange 50 Index has shown a decline of 2.55% in the week ending June 20, 2025, closing at 1347.46 points, while the average market capitalization of the 267 A-share constituent stocks is 2.934 billion [9][19]. - The report emphasizes the importance of focusing on high-quality stocks with stable growth and reasonable valuations in the North Exchange, particularly in the context of ongoing testing of specialized indices that may attract long-term capital [3][19]. Summary by Sections North Exchange Market Overview - As of June 20, 2025, the North Exchange A-share market consists of 267 stocks with an average market capitalization of 2.934 billion. The North Exchange 50 Index experienced a decline of 2.55% during the week, while other indices like the Shanghai and Shenzhen 300 Index saw a smaller decline of 0.45% [9][19]. - The average daily trading volume for the North Exchange 50 was 28.833 billion, down 11.56% from the previous week, with a turnover rate of 3.27% [22]. Stock and Industry Performance - In the week from June 16 to June 20, 2025, 46 stocks rose, while 221 stocks fell, indicating a decrease in the proportion of rising stocks by 22.47 percentage points [14]. - The top five performing industries were Oil & Petrochemicals (25.26%), Utilities (8.85%), Transportation (5.04%), Beauty & Personal Care (1.93%), and Electronics (1.46%). Conversely, the bottom five industries included Textiles & Apparel (-13.12%), Nonferrous Metals (-9.03%), Agriculture, Forestry, Animal Husbandry & Fishery (-7.19%), National Defense & Military Industry (-6.89%), and Light Industry Manufacturing (-6.29%) [19][20]. New Stock Updates - No new stocks were listed during the week, but two companies (Nengzhiguang and Balanshi) passed the review for listing, while one company (Aomeisen) is scheduled for review next week [25][26]. Key Companies and Earnings Forecast - The report identifies several key companies with earnings forecasts: - Tongli Co., Ltd. (20.54) with an EPS forecast of 1.99 for 2025 and a PE ratio of 10.32, rated as "Buy" [4]. - Wuxin Tunnel Equipment (37.95) with an EPS forecast of 1.64 for 2025 and a PE ratio of 23.14, rated as "Buy" [4]. - Kaide Quartz (32.87) with an EPS forecast of 1.03 for 2025 and a PE ratio of 31.91, rated as "Hold" [4]. - Hualing Co., Ltd. (23.60) with an EPS forecast of 0.34 for 2025 and a PE ratio of 69.41, rated as "Hold" [4]. - Hengtai Open Source (15.17) with an EPS forecast of 0.22 for 2025 and a PE ratio of 68.95, rated as "Hold" [4]. - Tianli Composite (32.85) with an EPS forecast of 1.03 for 2025 and a PE ratio of 31.89, rated as "Buy" [4].

Investment Rating - The report maintains a "Recommended" rating for the food and beverage industry [1][26]. Core Insights - The report highlights a marginal improvement in sentiment towards the liquor sector, suggesting that the most pessimistic phase for market sentiment may have passed, with limited impact from the current off-season for liquor consumption [5][6]. - The report notes a significant year-on-year increase in retail sales for tobacco and alcohol, with a 11.2% growth in May, attributed to the early release of consumption related to the Dragon Boat Festival [5][12]. - The report emphasizes the potential for policy changes to reverse macroeconomic expectations and enhance both valuation and performance in the food and beverage sector, which is currently undervalued [26]. Summary by Sections Industry Performance - Over the two weeks from June 9 to June 20, 2025, the food and beverage sector declined by 4.49%, underperforming the Shanghai Composite Index by 3.73 percentage points [3][18]. - Among sub-sectors, health products experienced the smallest decline at 2.15%, followed by meat products and dairy at 2.99% and 3.48% respectively [3][18]. Key Companies and Recommendations - The report recommends several key companies within the liquor sector, including Kweichow Moutai, Wuliangye, Luzhou Laojiao, Shanxi Fenjiu, and others [7][26]. - For the consumer goods sector, recommended companies include Bairun, Weidong, Yanjin, and Three Squirrels, among others [26][29]. Market Trends - The report notes that the "618" shopping festival saw a total e-commerce sales of 855.6 billion yuan, a 15.2% increase year-on-year, indicating strong consumer engagement [8][9]. - The report also highlights the performance of specific brands during the festival, with Kuaijishan achieving a 400% year-on-year increase in sales [9]. Valuation Metrics - As of June 20, 2025, the dynamic price-to-earnings ratio for the food and beverage sector stands at 20.33x, indicating a mid-range position among primary industries [22][26]. - The report provides detailed earnings per share (EPS) and price-to-earnings (PE) ratios for key companies, suggesting a favorable investment outlook for several stocks [29].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report The current bond market interest rate has limited downward momentum and is difficult to break through the previous lows. Further long - position opportunities may require a significant decline in certificate of deposit rates or an increase in expectations of interest rate cuts [7][24]. 3. Summary by Related Catalogs 3.1 Formation of Previous Interest Rate Lows - The low point at the beginning of the year was mainly driven by inter - bank deposit rate cuts, the formation of expectations for consecutive reserve requirement ratio and interest rate cuts, and the strengthening of institutional allocation power [7]. - The low point in April was caused by the introduction of reciprocal tariffs on April 2, which greatly exceeded market expectations, leading to a rapid decline in China's bond market interest rates. On April 7, the 10 - year Treasury bond interest rate dropped to 1.63%, close to the low point at the beginning of the year [7]. 3.2 Analysis of Whether Interest Rates Can Break Through Previous Lows - **Fundamentals**: The real - estate performance has a significant impact on the bond market. As of June 21, the commercial housing transaction area in first - tier cities in June was basically the same as last year. The economic fundamentals are running smoothly, with good export and consumption performance. Policy remains stable, and the economy has a bottom - line, but it is difficult to have outstanding performance in the short term, so it is expected to have little impact on the bond market [16]. - **Funding**: Since April, the funding situation has gradually eased, and the bond market interest rates have declined accordingly. Currently, the funding situation remains loose, with DR007 fluctuating between 1.5% - 1.6%. It is expected to run stably in the future, and it is difficult to break through the 1.4% policy rate OMO downward, so the interest rate has limited downward momentum [18]. - **Institutional Allocation Power**: At the end of the quarter, banks tend to sell bonds to realize floating profits to adjust profits. At the same time, the bond market level is relatively low, and the allocation value is not high, so institutional willingness to enter the market to allocate bonds is limited [7][24]. - **Interest Rate Cut Expectations**: From the perspective of bank asset comparison, the current bond market level implies an interest rate cut of about 10BP, and the pricing is relatively reasonable. On May 7, the central bank announced a reserve requirement ratio and interest rate cut, so the short - term expectation of an interest rate cut is not high [25]. 3.3 Summary The formation of the first two lows this year was mainly due to factors such as a significant increase in interest rate cut expectations, an increase in institutional allocation power, and tariff shocks. Currently, the bond market interest rate has limited downward momentum and is difficult to break through the previous lows. Further long - position opportunities may require a significant decline in certificate of deposit rates or an increase in expectations of interest rate cuts [24].

Investment Rating - The report maintains a "Buy" rating for the automotive sector [1] Core Views - The continuation of the "old-for-new" subsidy policy is expected to support automotive consumption, leading to a positive outlook for the automotive sector [7][17] - The completion of 2,500 5C supercharging stations by Li Auto indicates strong infrastructure development, surpassing Tesla's charging network in China [3][13] - The launch of the Li Auto i6, a pure electric SUV, is anticipated in September 2025, showcasing advancements in electric vehicle technology [4][14] Summary by Sections Recent Developments - Li Auto has completed its goal of building 2,500 5C supercharging stations, with the latest located at Shanghai Disneyland, featuring a design of three groups of dual-gun 5C charging piles [3][13] - The i6 model has been officially announced and is set to launch in September 2025, featuring a pure electric architecture and various powertrain options [4][14] - The "old-for-new" subsidy policy will continue, with central funding expected to be distributed in batches, totaling 3 trillion yuan for the year [5][15] Market Performance - The automotive sector underperformed compared to the Shanghai Composite Index, with a weekly decline of 2.6% from June 16 to June 20, 2025 [18] - The performance of individual stocks varied, with Li Auto experiencing a decline of 7.1% during the same period [18][23] Investment Recommendations - The report recommends several companies poised to benefit from the current market conditions, including Li Auto, BYD, and Great Wall Motors, among others [7][17] - It highlights the potential for high-end vehicle manufacturers to gain from the ongoing shift towards premium offerings in the automotive market [7][17]

Group 1: AIDC Industry Insights - The demand for computing power is rapidly increasing, with global AIDC installations expected to grow at a CAGR of 40.4% from 2023 to 2028 [3] - In China, the smart computing power scale is projected to reach a CAGR of 46.2% from 2023 to 2028, with domestic AI chip supply expected to increase to 30% by 2024 [4] - The domestic data center PUE management policies are driving technological upgrades in energy-intensive areas such as cooling and power systems [4] Group 2: Power Supply Systems - The shift towards modular data centers is expected to increase the penetration of high-pressure diesel generators, with domestic supply chains improving and driving price increases [5] - The power distribution systems are evolving towards prefabrication and intelligence, with domestic leaders poised to capture market share due to their extensive project experience [6] Group 3: Cooling Systems - Liquid cooling is becoming a significant trend, with the demand for liquid cooling solutions expected to rise as cabinet power consumption exceeds 20kW [9] - The adoption of high-efficiency energy-saving technologies, such as magnetic levitation compressors, is anticipated to increase rapidly in data centers [9] Group 4: Investment Recommendations - The report suggests focusing on companies in the power supply sector, such as Weichai Heavy Machinery, and in the power distribution sector, including Jinpan Technology and Igor [11] - In the cooling systems sector, companies like Invec and Shunling Environment are recommended due to the shift from air cooling to liquid cooling solutions [11] Group 5: Motorcycle Industry Performance - China's motorcycle exports reached 1.59 million units in May 2025, with a year-on-year growth of 24.8% [30] - The export growth rate for motorcycles over 250cc was particularly strong, with a year-on-year increase of 33.4% [30] Group 6: New Aluminum Era Company Insights - The company has established itself as a specialized manufacturer in battery box systems, with steady growth in revenue and profitability [34] - The company is expected to optimize its revenue structure and explore new growth points in the commercial vehicle sector [35] Group 7: Financial Market Developments - The 2025 Lujiazui Forum highlighted significant financial opening measures, including the establishment of a digital RMB international operation center [14] - The approval of the first two data center REITs in China is expected to create a new asset class and enhance capital flow in the technology sector [15]