Group 1: Virtual Assets and Stablecoins - The trend of virtual assets is continuously improving due to the enhancement of regulatory frameworks and increased institutional participation, with expectations of liquidity easing [2][18][25] - The global stablecoin market is projected to grow significantly, from approximately $5 billion in 2020 to around $200 billion by the end of 2024, indicating a clear expansion path for trading scenarios [25][26] - Various regions are implementing stablecoin policies, such as the U.S. passing the "Genius Act" and Hong Kong enacting the "Stablecoin Ordinance," which will take effect on August 1, 2025 [25][29] Group 2: Streaming Platforms - Music streaming platforms are identified as high-quality internet assets driven by domestic demand, with continuous scale effects driving profit leverage [2] - The market for music subscriptions is expected to grow, with major players like Spotify and Tencent Music holding significant market shares [33] Group 3: O2O Service Platforms - The trend of strong players becoming stronger is evident, with major platforms like Beike and Tuhu expected to increase market share amid a shrinking real estate and automotive aftermarket demand [2][39] - The used housing transaction volume in key cities showed a month-on-month decline, indicating a buyer's market, which may benefit established platforms [39] Group 4: Coffee, Tea, and E-commerce Delivery Platforms - The online retail sales of physical goods grew by 6.3% year-on-year from January to May 2025, indicating a competitive landscape where marketing expenses are rising [2][56] - The coffee and tea segment is highlighted as a key beneficiary in the delivery battle, with significant growth in order volumes and city coverage [68][75] Group 5: K12 Education and Training - The K12 education sector is experiencing a resurgence in non-subject training demand, with a significant reduction in subject-based training institutions, leading to a scarcity of quality compliant products [2][86] - Major players in the K12 sector, such as New Oriental and TAL Education, are showing strong performance with revenue growth exceeding 20% year-on-year [91]

Investment Rating - The report maintains a "Buy" rating for the hydrogen energy and fuel cell industry [6] Core Insights - The hydrogen energy and fuel cell industry is expected to enter a rapid growth phase in 2025, with significant advancements in fuel cell vehicles and green hydrogen projects [5] - The report highlights the importance of focusing on hydrogen and fuel cell manufacturing as the main investment lines, recommending specific companies for attention [5] Industry Data Review - In May, the installed capacity of fuel cell systems reached 333.30 MW, a year-on-year decrease of 64.7%, primarily due to delays in the promotion of demonstration city clusters [12] - The cumulative installed capacity from January to May 2025 was 255.58 MW, reflecting a 7% year-on-year decline, indicating cyclical fluctuations in the industry [12] - Fuel cell vehicle insurance registrations in May were 122 units, down 84.26% year-on-year, with a total of 1,367 units registered from January to May 2025, a decrease of 33.2% [20] - The report notes that the Guangdong demonstration city cluster led in vehicle deployment with 83 units in May, while the cumulative deployment from January to May was 332 units [35] Company Performance - YunTao Hydrogen Energy ranked first in May with an installed capacity of 22,010 kW, accounting for 66% of the market, followed by Dongfang Electric and Hyundai [23] - In terms of vehicle insurance, SANY Automotive led in May with 62 units, representing 50.8% of the market share [32] - Cumulatively, from January to May 2025, China National Heavy Duty Truck ranked first in insurance registrations with 510 units, followed by Hyundai with 204 units [32] Green Hydrogen Projects - Green hydrogen demonstration projects have seen a total of 788.76 MW tendered, a 35% year-on-year increase, indicating a growing interest in large-scale projects [42] - The cumulative planned capacity for green hydrogen projects has reached 6.61 million tons, with an operational rate of 31.6% [50] Policy Developments - The report outlines that multiple supportive policies have been introduced at both national and local levels to accelerate the commercialization of hydrogen energy [36][38] - The Ministry of Industry and Information Technology approved seven hydrogen industry standards, effective from November 1, 2025, to facilitate the commercialization of fuel cell vehicles [40]

Group 1 - The core viewpoint of the report highlights the unexpected strong performance of long-term credit bonds, with the China Bond 10-year and above implied AA+ full price index increasing by 0.9% in the past week and 1.5% for the month [2][12] - The report identifies four key characteristics of the current long-term credit bond trading: accelerated allocation pace, significant decline in transaction yields, strong performance of 20 to 30-year bonds, and increased trading volume [3][16] - The report notes that as of June 20, 63% of credit bonds with a maturity of over one year are concentrated at yields below 2%, compared to 59% at the beginning of January, indicating a need for mid to long-term asset allocation to achieve yields above 2% [4][46] Group 2 - The report discusses the different triggers for market performance in the interbank and exchange markets, with insurance and funds being the main net buyers of credit bonds over 7 years, and funds showing a significant increase in net buying [4][47] - The report emphasizes that the rapid decline in yields raises concerns, including the proximity of various bond yields to their annual lows, the lack of comparative advantage for long-term credit bonds against government bonds, and the increasing contribution of capital gains to overall returns [5][56] - The report suggests that while the short-term performance of credit bonds over 7 years is strong, the high demands on trading capabilities and the underlying market fragility necessitate a cautious approach, recommending a focus on 3-year city investment bonds for better opportunities [5][31]

Group 1 - The report indicates that the simulated portfolio performance remains mixed, with most strategies showing reduced returns except for some credit style portfolios. The city investment long-term and secondary long-term strategies achieved returns of 0.2% and 0.15% respectively [2][14] - In terms of heavy-weighted bond types, credit bond-heavy strategies generally outperformed interest rate bond-heavy portfolios. The average weekly return for credit style time deposit-heavy strategies decreased by 0.7 basis points, while the city investment heavy-weighted portfolio's average weekly return fell to 0.15%, a decline of 4.3 basis points from the previous week [2][18] - The cumulative investment returns for the city investment dumbbell strategy were -0.12% in Q1 and 1.85% in Q2 to date, indicating it is one of the more balanced strategies this year [2][18] Group 2 - The report highlights that the cumulative excess returns for duration strategies have outperformed sinking strategies over the past four weeks. The cumulative excess returns for the city investment dumbbell, broker debt duration, and city investment duration strategies were 45.7 basis points, 17.3 basis points, and 11.5 basis points respectively [4][30] - The report notes that the sinking strategies generally underperformed compared to duration strategies in the past month, with financial bond-heavy portfolios lacking aggressive attributes [4][30] - The report also states that the excess returns for short-end strategies are lacking, with the city investment sinking strategy's excess return significantly narrowing, and the time deposit strategy's return deviating from the benchmark by only 1 basis point [4][30]

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The report highlights the significant growth potential in the custom chip market, with Marvell raising its Total Addressable Market (TAM) forecast to $94 billion by 2028, driven by increasing demand for high-performance, low-power custom chips in AI infrastructure [12][14] - Micron's strong performance in HBM and data center products is expected to continue, with HBM quarterly revenue surpassing $1 billion and a TAM projection exceeding $100 billion by 2030 [15][20] - Huawei's HarmonyOS ecosystem is anticipated to enhance consumer acceptance of high-end devices, aiding in the expansion of wearable and smart home products [26] Summary by Sections AI Applications - The active usage of AI chat applications continues to rise, with notable growth in overseas applications like Claude and domestic applications such as Tongyi and Doubao [11] - Alibaba has launched the Qwen3 MLX framework, which is tailored for Apple chips, indicating a strategic move towards enhancing AI development capabilities [11] Marvell - Marvell has significantly increased its TAM forecast for custom chips, projecting a market size of $94 billion by 2028, with a focus on achieving a 20% market share in the custom computing sector [12][14] - The company has established a strong competitive edge through advanced technology in 5nm and 3nm nodes, and has secured 18 custom chip business slots with a potential lifetime revenue of $75 billion [13][14] Micron - Micron's strong growth in HBM and data center products is expected to continue, with quarterly revenue for HBM surpassing $1 billion and a TAM projection exceeding $100 billion by 2030 [15][20] - The company is the only vendor to ship LPDRAM in volume and is set to be the first to mass-produce SOCAMM, indicating a strong position in the data center DRAM market [19] Huawei - Huawei's developer conference showcased advancements in HarmonyOS, with over 800,000 developers joining the ecosystem and more than 30,000 native applications launched [24] - The introduction of the HarmonyOS 6 Beta version emphasizes cross-device collaboration and AI integration, enhancing user experience across various devices [22][24]

Investment Rating - The report maintains a strong confidence in the pharmaceutical sector, predicting a reversal trend in 2025, with innovative drugs and left-side sector reversals being the biggest investment opportunities [5][12]. Core Views - The recent adjustment in the pharmaceutical sector does not reflect any substantial changes in the industry's fundamentals. The report anticipates continued growth in the innovative drug sector, driven by upcoming academic conferences and seasonal changes in medical services and consumption [2][12]. - The report highlights significant advancements in chronic disease treatments, particularly with Eli Lilly's oral weight-loss drug Oforglipron, which has shown promising results in clinical trials [2][22]. - The report emphasizes the potential of high-end medical devices, supported by government policies aimed at fostering innovation in this area, suggesting that leading companies in specific segments are likely to benefit [33][36]. Summary by Sections Pharmaceutical Sector - Eli Lilly's Oforglipron has demonstrated significant efficacy in reducing A1C levels and weight in type 2 diabetes patients during its Phase 3 trial, with a notable average weight loss of 16.0 pounds (7.9%) [2][22]. - The report notes that the domestic market is seeing continuous progress in chronic disease treatments, with several innovative drugs being prioritized for review by regulatory authorities [20][41]. Biologics - Sanofi and Regeneron reported positive results from the EVEREST Phase 4 trial for Dupixent, which outperformed Xolair in treating adults with chronic rhinosinusitis with nasal polyps (CRSwNP) and asthma [24][29]. - The report suggests ongoing attention to the development of IL-4α targeted drugs, as multiple domestic companies are making strides in this area [24][32]. Medical Devices - The National Medical Products Administration (NMPA) has initiated measures to support the innovation of high-end medical devices, which is expected to accelerate the development of domestic medical robots and advanced imaging equipment [33][36]. - The report indicates that the medical device sector is at an upward turning point, driven by an aging population and increasing healthcare demands [37]. Medical Services & Consumer Healthcare - The report discusses the initiation of a pilot program for medical service price reform in Sichuan, which aims to optimize the pricing system and reflect the value of healthcare professionals' labor [38][40]. - The report highlights the establishment of a comprehensive eye health management system by Aier Eye Hospital, showcasing advancements in healthcare service delivery [38]. Traditional Chinese Medicine - The report notes that since 2025, the Center for Drug Evaluation (CDE) has accepted 41 new drug IND applications for traditional Chinese medicine, indicating a supportive policy environment for innovation in this sector [41][42].

Investment Rating - The report indicates a neutral investment rating for the agricultural sector, with expectations of limited movement in the next 3-6 months [80]. Core Insights - The agricultural sector index decreased by 3.13% this week, underperforming compared to the Shanghai Composite Index [13][14]. - The pig farming sector shows signs of recovery with a current average price of 14.22 CNY/kg, reflecting a weekly increase of 1.43% [21][22]. - The poultry farming sector is stabilizing, with white feather chicken prices at 7.12 CNY/kg, down 2.06% from the previous week [32]. - The beef and dairy sectors are experiencing price fluctuations, with live cattle prices at 26.65 CNY/kg, showing a slight decrease [41]. - The planting industry is expected to improve if there is a significant reduction in grain production due to external uncertainties [48]. Summary by Sections 1. Market Review - The agricultural index closed at 2640.23 points, down 3.13% week-on-week, while the Shanghai Composite Index decreased by 0.51% [13][14]. 2. Key Data Tracking 2.1 Pig Farming - The average weight of pigs at slaughter is 128.28 kg, with a slight decrease of 0.54 kg from the previous week [21][22]. - The profit for self-bred pigs is 19.40 CNY/head, showing a week-on-week increase of 22.30 CNY/head [21][22]. 2.2 Poultry Farming - The average price for white feather chickens is 7.12 CNY/kg, reflecting a decrease of 2.06% [32]. - The overall price stability is attributed to balanced supply and demand [32]. 2.3 Livestock - Live cattle prices are at 26.65 CNY/kg, with a slight decrease of 0.02% [41]. - The dairy sector is seeing a decline in prices, with average milk prices at 3.04 CNY/kg, down 0.33% week-on-week [41]. 2.4 Planting Industry - Domestic corn prices are at 2,342.86 CNY/ton, up 0.37% week-on-week [47]. - The planting sector is stabilizing, with potential improvements if grain production decreases significantly [48]. 2.5 Feed & Aquaculture - Feed prices remain stable, with pig feed at 3.36 CNY/kg [65]. - Aquaculture prices are also stable, with various fish prices showing minimal changes [65].

Investment Rating - The report rates the industry as "Buy" with an expectation of a price increase exceeding 15% over the next 3-6 months [36] Core Insights - Yonghui Supermarket has entered a new phase of large-scale transformation, with over 100 stores adopting the "Fat Donglai" model, aiming to reach 300 stores by early 2026 [11][32] - The 618 shopping festival showed a clear trend of omni-channel collaboration, with national supplement categories driving growth and instant retail emerging as a new player [15][18] Summary by Sections 1. Core Views and Company Dynamics - Yonghui's transformation includes optimizing employee compensation and implementing a profit-sharing mechanism, with significant bonuses distributed to employees [11] - The company plans to accelerate the transformation of stores, expecting to exceed 178 stores by the end of August 2025 [11] 2. Industry Data Tracking - In the second week of June, the overall GMV for Tmall and JD.com decreased by 9.63% year-on-year [19] - The top five categories in terms of growth were toys, automobiles and bicycles, consumer electronics, home appliances, and shoes and bags [19] 3. Market Review - The retail sector experienced a decline, with the Shanghai Composite Index down by 0.51% and the retail sector down by 2.75% during the week of June 16-20, 2025 [25][26] - Notable stock performances included Zhejiang Dongri and Jifeng Technology, which saw significant gains [25] 4. Investment Recommendations - Yonghui Supermarket is recommended for its unique competitive advantages in the fresh produce sector and its ability to leverage scale for cost advantages [32][33] - Meituan is highlighted for its improving profit margins and potential benefits from macroeconomic recovery, with plans to expand its overseas delivery platform [34]

Investment Rating - The report suggests a focus on companies with high earnings growth certainty and relatively high dividend support in the domestic furniture sector, as well as certain export companies with strong growth logic or overseas production capacity advantages [4][9]. Core Insights - The furniture retail sales in China saw a year-on-year increase of 25.6% in May, with a cumulative increase of 21.4% from January to May. However, the overall order situation has weakened since June, indicating a potential fatigue in demand stimulation from national subsidies [4][9]. - In the new tobacco sector, the glo hilo product launched in Japan is expected to accelerate revenue growth in the second half of 2025, supported by strong marketing resources from BAT [4][12]. - The paper packaging sector is experiencing price stability, with a focus on growth-oriented packaging companies. The report highlights the need to monitor the performance of major paper types and the overall supply pressure in the market [4][15]. - The light consumer goods and pet sectors are seeing increased online competition, with a focus on companies that demonstrate clear growth narratives and operational capabilities [4][16]. - The two-wheeler market is expected to see a rebound in the second half of the year, driven by new national standards and product launches, despite a temporary slowdown due to subsidy fund exhaustion [4][19]. Summary by Sections Furniture Sector - Domestic retail sales of furniture increased by 25.6% in May, with a cumulative increase of 21.4% from January to May. However, the order situation has weakened since June, indicating potential fatigue in demand stimulation [4][9]. - Recommended companies include Sofía, Gujia Home, Mousse, and others, focusing on those with high earnings growth certainty and dividend support [4][9]. New Tobacco - The glo hilo product launched in Japan is expected to accelerate revenue growth in the second half of 2025, with strong marketing support from BAT [4][12]. - Recommended companies include Smoore International, which is expected to benefit from the expansion of the overseas compliant market [4][12]. Paper and Packaging - The paper sector is experiencing price stability, with major paper types showing no significant improvement in orders. The report emphasizes the importance of monitoring growth-oriented packaging companies [4][15]. - Recommended companies include Yutong Technology and others, focusing on those with stable operations and growth potential [4][15]. Light Consumer Goods & Pets - The light consumer goods sector is seeing increased online competition, with a focus on companies that demonstrate clear growth narratives and operational capabilities [4][16]. - Recommended companies include Guibao Pet and others, focusing on those with resilient consumer demand and growth potential [4][16]. Two-Wheeler Market - The two-wheeler market is expected to see a rebound in the second half of the year, driven by new national standards and product launches, despite a temporary slowdown due to subsidy fund exhaustion [4][19]. - Recommended companies include Yadi Holdings and others, focusing on those with strong product capabilities and market expansion potential [4][19].

Investment Rating - The report suggests a positive outlook for the AI/AR glasses supply chain and related industries, indicating a favorable investment environment in the second half of the year [1][13]. Core Insights - The launch of the Oakley Meta HSTN AI glasses by Meta and Oakley is expected to drive significant advancements in AI glasses applications in sports [1][13]. - The demand for AI-PCB and ASIC servers is projected to grow significantly, with strong orders reported from multiple AI-PCB companies [1][41]. - The communication sector is experiencing optimism due to the anticipated increase in AI ASIC chip shipments and the expansion of the light module market [2][43]. Summary by Sections Electronic Industry Insights - Meta and Oakley have introduced a new AI glasses model, enhancing battery life to 8 hours and video resolution to 3K, with a starting price of $399 [1][13]. - The PCB industry is showing signs of recovery, with expectations of significant growth in the second quarter driven by demand from home appliances and automotive sectors [1][15]. - The component sector is witnessing an upward trend, with increased usage of MLCCs and higher prices due to product upgrades [1][29]. Communication Industry Insights - The market is optimistic about AI ASIC penetration, with Meta planning to release a new AI ASIC chip by 2025-2026, which is expected to significantly increase shipments [2][48]. - The light module sector is set to benefit from the growing demand for AI ASICs, with several companies positioned to capture market share [2][48]. Computer Industry Insights - The computer sector is currently in a transitional phase, with expectations of improved performance in the second half of the year as new technologies and products are introduced [3][41]. - The report highlights the importance of monitoring the performance of major companies as they adapt to macroeconomic conditions and potential recovery in demand [3][41].