Investment Rating - The report assigns an "Overweight" rating to the industry [1][26]. Core Insights - The ongoing "trade-in" subsidy policy is expected to benefit the recycling resources sector, with a significant increase in support for consumer goods trade-ins in 2025 [4][8]. - The government plans to allocate 300 billion yuan in special long-term bonds to support the trade-in policy, with 162 billion yuan already distributed in early 2025 [9][10]. - The automotive recycling chain is anticipated to improve, with over 5 million passenger cars expected to benefit from scrapping subsidies in 2025 [9][10]. Summary by Sections Weekly Investment Perspective - The report highlights the continuation of the trade-in subsidy policy and the phased distribution of subsidy funds for the second half of the year [4][8]. - The 2025 action plan aims to double the scrapping volume of old vehicles compared to 2023, with a 25% increase in industrial equipment investment [8][9]. Environmental Sector Performance - The environmental sector experienced a decline of 2.51% in the week of June 16-20, 2025, while other sectors showed mixed performance [11][14]. - Notable stock performances included Xiangtan Electric (+18.51%) and Tianhao Energy (+13.37%) [11][16]. Carbon Neutrality Tracking - The national carbon market saw a transaction volume of 3.52 million tons, a 12% increase from the previous week, with an average transaction price of 72.36 yuan per ton [14][18]. - Local carbon exchanges also reported significant increases in trading volumes and prices [14][18]. Investment Recommendations - The report recommends investments in the recycling resources sector, specifically in companies like Zhuoyue New Energy and Sanlian Hongpu for recycled oil and plastics, respectively [10][12]. - Companies such as Huahong Technology and Zhongzi Technology are recommended for their potential in increasing automotive recycling volumes [10][12].

Group 1: Robotaxi Launch and Features - Tesla officially launched its Robotaxi service in Austin, Texas on June 22, 2025, with approximately 10 refurbished Model Y vehicles[2] - The service operates from 6 AM to midnight, charging a fixed fare of $4.20 per ride, and includes a safety officer in the passenger seat[3] - Future expansions are expected to include additional vehicles like the CyberCab, which will not have traditional steering wheels or pedals[3] Group 2: Industry Development and Market Position - The Robotaxi industry has evolved over more than 10 years, with China and the U.S. leading in commercialization, currently in the 1.0 phase[5] - Since 2025, the commercialization of Robotaxi services has accelerated, with companies like Waymo and Tesla achieving paid operations in North America[5] - In China, companies like Pony.ai and LoCab are also rapidly advancing their commercial operations[5] Group 3: Industry Chain and Beneficiaries - The Robotaxi industry chain consists of upstream hardware and software, midstream vehicle manufacturing, and downstream mobility services[6] - Key beneficiaries in the supply chain include sensor manufacturers and companies specializing in control systems, as demand for these components is expected to rise with the acceleration of Robotaxi commercialization[7] - Leading companies in the Robotaxi space, such as Baidu and Pony.ai, are positioned to gain market share as the industry expands[7] Group 4: Challenges and Risks - The commercialization of Robotaxi faces challenges including technological reliability, high costs, and regulatory hurdles[30] - Current L3 and L4 autonomous driving technologies are not yet fully reliable, posing risks to operational safety[30] - Legal ambiguities regarding liability and insurance for autonomous vehicles remain significant barriers to widespread adoption[31]

Policy and Market Dynamics - The "Digital Transformation Implementation Plan for the Textile Industry" aims to promote high-end, intelligent, green, and integrated development, enhancing industry competitiveness and value chain levels[4]. - The core direction of the transformation emphasizes "greening," promoting energy conservation and sustainable development through digital means[11]. ESG Bond and Fund Trends - As of June 20, 2025, there are 6,057 ESG (green) bonds, a weekly increase of 6, with a total balance of 12.4 trillion yuan, down 5.7% from the previous week[12]. - The total number of Wind ESG investment funds reached 893, increasing by 135, with a total scale of 1,044.95 billion yuan, reflecting a significant growth in ESG investment interest[12]. Carbon Market Activity - From June 16 to June 20, 2025, the cumulative trading volume in the carbon market was 352.3 million tons, up 11.7% week-on-week, with a cumulative transaction value of 25.5 million yuan, increasing by 16.3%[25]. - The transaction price on June 20 was 73.1 yuan per ton, marking a 2.7% increase from June 13[29].

Investment Rating - The investment rating for the company is "Accumulate" with a target price of 21.14 CNY [2][11]. Core Views - The company's performance in 2024 is expected to meet expectations, with significant growth anticipated in Q1 2025 due to the production from the Inner Mongolia project, and a clear cost advantage in coal-to-olefins production [3][11]. - The company achieved a total revenue of 32.98 billion CNY in 2024, representing a year-on-year increase of 13.21%, and a net profit attributable to shareholders of 6.34 billion CNY, up 12.16% year-on-year [11]. - In Q1 2025, the company reported revenue of 10.77 billion CNY, a year-on-year increase of 30.92%, and a net profit of 2.44 billion CNY, up 71.49% year-on-year [11]. Financial Summary - Revenue projections for the company are as follows: - 2023: 29.14 billion CNY - 2024: 32.98 billion CNY - 2025: 45.38 billion CNY - 2026: 49.67 billion CNY - 2027: 53.75 billion CNY - Net profit (attributable to shareholders) is projected to be: - 2023: 5.65 billion CNY - 2024: 6.34 billion CNY - 2025: 11.09 billion CNY - 2026: 12.72 billion CNY - 2027: 13.90 billion CNY - The earnings per share (EPS) forecast is: - 2023: 0.77 CNY - 2024: 0.86 CNY - 2025: 1.51 CNY - 2026: 1.73 CNY - 2027: 1.90 CNY [5][12]. Market Data - The company's stock price has ranged between 14.20 CNY and 17.84 CNY over the past 52 weeks, with a total market capitalization of 119.75 billion CNY [6]. - The company has a total equity of 45.47 billion CNY, with a net asset value per share of 6.20 CNY and a price-to-book ratio of 2.6 [7]. Production and Cost Advantages - The Inner Mongolia project, which has commenced production, is expected to significantly contribute to revenue growth. The first phase of the project has successfully produced qualified products, with further phases expected to come online in Q1 2025 [11]. - The cost advantage of coal-based polyethylene over oil-based polyethylene is approximately 1861 CNY per ton, highlighting the competitive edge in production costs [11].

Quantitative Models and Construction Methods 1. Model Name: Black-Litterman (BL) Model - **Model Construction Idea**: The BL model is an improvement over the traditional Mean-Variance Optimization (MVO) model. It integrates subjective views with quantitative models using Bayesian theory to optimize asset allocation weights. This approach addresses MVO's sensitivity to expected returns and provides a more robust asset allocation framework[12][13]. - **Model Construction Process**: 1. Select underlying assets, such as equity indices, bond indices, commodities, and gold. 2. Incorporate subjective views on market returns into the model using Bayesian theory. 3. Optimize asset allocation weights based on the combined subjective and quantitative inputs. 4. Construct two domestic BL models and two global BL models using selected assets like CSI 300, Hang Seng Index, S&P 500, and others[13][14]. - **Model Evaluation**: The BL model effectively combines subjective and quantitative perspectives, offering higher fault tolerance and efficient asset allocation solutions compared to purely subjective or traditional MVO approaches[12]. 2. Model Name: Risk Parity Model - **Model Construction Idea**: The risk parity model aims to equalize the risk contribution of each asset (or factor) in the portfolio. It is an improvement over the traditional MVO model, focusing on risk distribution rather than return maximization[17]. - **Model Construction Process**: 1. Select appropriate underlying assets, such as equity indices, bond indices, commodities, and gold. 2. Calculate the risk contribution of each asset to the portfolio based on expected volatility and correlations. 3. Optimize the portfolio weights to ensure equal risk contribution from each asset. 4. Construct domestic and global risk parity models using selected assets like CSI 300, S&P 500, Hang Seng Index, and others[18]. - **Model Evaluation**: The model provides a stable performance across economic cycles by balancing risk contributions, making it suitable for all-weather strategies[16][17]. 3. Model Name: Macro Factor-Based Asset Allocation Model - **Model Construction Idea**: This model bridges macroeconomic research and asset allocation by constructing a framework based on six macroeconomic risks: growth, inflation, interest rates, credit, exchange rates, and liquidity[22][23]. - **Model Construction Process**: 1. Use the Factor Mimicking Portfolio method to construct high-frequency macroeconomic factors for the six risks. 2. Calculate factor exposures for selected assets at the end of each month. 3. Use a risk parity portfolio as the benchmark and adjust factor exposures based on subjective macroeconomic views. 4. Solve the optimization problem to determine asset weights for the next month[23][24]. - **Model Evaluation**: The model effectively translates macroeconomic views into actionable asset allocation strategies, providing a systematic approach to incorporating macroeconomic insights into portfolio construction[22][23]. --- Model Backtesting Results 1. Black-Litterman (BL) Models - **Domestic BL Model 1**: Weekly return 0.01%, June return 0.55%, YTD return 1.52%, annualized volatility 2.36%, max drawdown 1.31%[14][16] - **Domestic BL Model 2**: Weekly return 0.02%, June return 0.47%, YTD return 1.53%, annualized volatility 2.10%, max drawdown 1.06%[14][16] - **Global BL Model 1**: Weekly return 0.15%, June return 0.49%, YTD return 0.04%, annualized volatility 2.09%, max drawdown 1.64%[14][16] - **Global BL Model 2**: Weekly return 0.12%, June return 0.45%, YTD return 0.72%, annualized volatility 1.83%, max drawdown 1.28%[14][16] 2. Risk Parity Models - **Domestic Risk Parity Model**: Weekly return 0.10%, June return 0.50%, YTD return 2.24%, annualized volatility 1.62%, max drawdown 0.76%[21][22] - **Global Risk Parity Model**: Weekly return 0.10%, June return 0.43%, YTD return 1.86%, annualized volatility 1.86%, max drawdown 1.20%[21][22] 3. Macro Factor-Based Asset Allocation Model - **Macro Factor Model**: Weekly return 0.09%, June return 0.62%, YTD return 2.20%, annualized volatility 1.49%, max drawdown 0.64%[28][29]

Market Overview - Southeast Asia ETF declined by 2.99% in the last two weeks (2025/06/07-2025/06/20) [4] - Thailand's market remains under pressure, with the iShares MSCI Thailand ETF dropping by 6.41%, underperforming by 3.42 percentage points [5] - Vietnam's market showed signs of recovery, with the Global X MSCI Vietnam ETF decreasing only by 0.48%, outperforming by 2.52 percentage points [5] Country-Specific Performance - Indonesia's iShares MSCI ETF fell by 4.70%, underperforming by 1.71 percentage points, despite a brief recovery due to policy stimulus [5] - Singapore's iShares MSCI ETF decreased by 2.87%, slightly outperforming by 0.13 percentage points, as profit-taking occurred after a sustained rise since April [5] - Malaysia's iShares MSCI ETF dropped by 1.40%, outperforming by 1.59 percentage points, indicating a weak market adjustment phase [5] Trading Volume and Liquidity - Global X FTSE Southeast Asia ETF's trading volume fell by 65.4% to 112,000 shares [9] - Indonesia's trading volume increased by 50.7% to 7.297 million shares, while Singapore's volume decreased by 21.4% to 3.743 million shares [9] - Vietnam's trading volume decreased by 42.9% to 76,000 shares, reflecting low market liquidity [9] Economic and Political Risks - Thailand faces political instability and geopolitical risks, contributing to a consumer confidence index drop to 54.2 in May [19] - Indonesia's government introduced a $1.5 billion economic stimulus to counteract downward economic pressures [13] - Vietnam's market remains uncertain due to ongoing trade negotiations with the U.S. and geopolitical tensions in the Middle East [24]

Investment Rating - The report assigns an "Accumulate" rating to the company with a target price of 38.10 CNY [2][6][25] Core Insights - The company is a leading manufacturer of steering pumps and is strategically advancing into the solid-state battery sector, with a robust growth forecast driven by its core business and global expansion [3][12][16] Financial Summary - Revenue projections for 2025-2027 are 49.02 billion CNY, 53.27 billion CNY, and 57.91 billion CNY, reflecting year-on-year growth rates of 8.62%, 8.66%, and 8.71% respectively [5][16] - Net profit (attributable to the parent company) is expected to reach 104 million CNY, 172 million CNY, and 220 million CNY for the years 2025-2027, with growth rates of 220.0%, 65.5%, and 28.0% respectively [5][16] - Earnings per share (EPS) are projected to be 0.69 CNY, 1.14 CNY, and 1.46 CNY for 2025-2027 [5][16] Business Overview - The company has a comprehensive product matrix, including noise reduction (NVH), thermal insulation, lightweight products, electric pumps, and automotive electronics, which positions it well in the automotive parts industry [12][26][33] - The company has established a global sales network that enhances its competitive edge, with partnerships with major automotive manufacturers such as Daimler, BMW, and Ford [12][30] Strategic Initiatives - The company has been investing in solid-state battery technology since 2017, with plans to invest approximately 300 million CNY in a pilot production line by the end of 2025 [12][16][26] - The solid-state battery segment is expected to become a significant growth driver for the company in the future [12][16][26] Market Position - The company has a strong presence in the international market, with 74.21% of its revenue coming from overseas in 2024, largely due to its acquisition of CCI [45][48] - The global market for insulation and noise reduction materials is projected to grow significantly, driven by the increasing demand for electric vehicles [47][50]

Investment Rating - The report maintains an "Accumulate" rating for the company [1][8]. Core Views - The opening of the first overseas store in Singapore on June 21 is expected to accelerate the brand's international expansion and growth potential [3]. - The company's brand strength is on the rise, with product value highlighted by increasing gold prices, which is expected to enhance terminal sales and operational leverage [12]. - The company is positioned in the high-end market, benefiting from significant brand premium and reputation, with strong growth in both single-store performance and store expansion [12]. Financial Summary - Revenue is projected to grow from 1,264.60 million RMB in 2021 to 31,621.17 million RMB by 2027, reflecting a compound annual growth rate (CAGR) of 41.21% from 2021 to 2027 [7]. - Gross profit is expected to increase from 521.00 million RMB in 2021 to 12,998.34 million RMB by 2027, with a significant rise in net profit attributable to the parent company from 113.88 million RMB in 2021 to 6,155.58 million RMB by 2027 [7]. - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 22.75 RMB, 29.43 RMB, and 35.65 RMB respectively [12]. Market Position and Growth Potential - The company has successfully opened stores in Macau and Hong Kong, and the Singapore store is expected to replicate this success, potentially accelerating international store openings [8][12]. - The report anticipates that the company's net profit margins will continue to improve due to operational leverage and product structure optimization [12]. - The target price for the stock is set at 960 HKD, based on a 30x valuation for 2026, indicating a strong growth outlook [12].

Investment Rating - The report assigns an "Accumulate" rating for the basic chemical industry [2][11]. Core Insights - The price of photoinitiators is gradually increasing, benefiting companies like Jiu Ri New Materials due to rising product prices [4][6]. - The market demand for photoinitiators is expected to grow as their application scenarios become more widespread, driven by environmental requirements and emerging fields like 3D printing [6]. - Domestic photoinitiator companies are showing significant competitive advantages, with increasing industry concentration as leading firms excel in production management, scale, product quality, and R&D capabilities [6]. Summary by Sections Market Demand and Applications - The demand for photoinitiators is expanding continuously, with applications in traditional solvent-based coatings, inks, and adhesives being replaced by photopolymer materials [6]. - Key photoinitiator products include 907, 184, TPO, and 1173, which are used in various industries such as PCB inks, adhesives, and coatings for furniture and electronics [6]. Leading Companies - Jiu Ri New Materials has a scalable production capacity for multiple photoinitiators and offers one-stop raw material supply to downstream customers [6]. - Yangfan New Materials is a major global supplier of photoinitiators and thiol compounds, focusing on applications in pharmaceuticals, pesticides, and dyes [6]. - Qiangli New Materials specializes in electronic materials and green photopolymer materials, including photoinitiators and active diluents [6]. Industry Trends - The report highlights that the photoinitiator market is poised for rapid growth due to increasing environmental standards and technological advancements [6]. - The concentration of the industry is expected to rise further as domestic chemical companies adapt to stricter environmental regulations and the high-end development of downstream applications [6].

Investment Rating - The report maintains a rating of "Accumulate" for the company [2][10]. Core Views - The company is experiencing rapid growth in its industrial internet platform and is successfully implementing its "going out" strategy, with AI application scenarios accelerating [3][10]. - The projected revenue for the company is expected to grow from 13.51 billion yuan in 2024 to 22.68 billion yuan in 2027, reflecting a compound annual growth rate (CAGR) of approximately 16.5% [4][10]. - The net profit attributable to shareholders is forecasted to increase from 927.43 million yuan in 2024 to 2.13 billion yuan in 2027, with a significant growth rate of 28.4% in 2027 [4][10]. - The company has successfully expanded its market presence, with over 120 mature AI application scenarios developed and contracts worth 256 million yuan signed in 2024 [10]. Financial Summary - Revenue projections: 1,141 million yuan (2023), 1,351 million yuan (2024), 1,642 million yuan (2025), 1,947 million yuan (2026), and 2,268 million yuan (2027) [4][11]. - Net profit (attributable to shareholders): 62 million yuan (2023), 93 million yuan (2024), 126 million yuan (2025), 166 million yuan (2026), and 213 million yuan (2027) [4][11]. - Earnings per share (EPS) forecast: 0.09 yuan (2023), 0.14 yuan (2024), 0.19 yuan (2025), 0.24 yuan (2026), and 0.31 yuan (2027) [4][11]. Market Data - The company's stock price has ranged between 7.01 yuan and 16.02 yuan over the past 52 weeks, with a total market capitalization of 7,749 million yuan [5][10]. - The company has a total share capital of 678 million shares, with 423 million shares in circulation [5][10]. Valuation Metrics - The report assigns a target price of 13.96 yuan based on a dynamic price-to-earnings (PE) ratio of 75 times for 2025 [10][12]. - The current price-to-earnings ratio is projected to decrease from 125.43 in 2023 to 36.41 in 2027 [4][11].