Investment Rating - The investment rating for the company is "Accumulate" [5]. Core Views - The company's performance continues to improve, with significant growth in both ODM and proprietary brand segments, leading to a notable recovery in overall financial results [2][12]. - The revenue and profit outlook has been adjusted, with expected EPS for 2025-2027 at 0.90, 1.32, and 1.73 yuan respectively, reflecting a positive trend in profitability [12]. - The company has established a balanced business structure focusing on ODM while also developing its proprietary brand, achieving profitability in its offline business [12]. Financial Summary - Total revenue is projected to grow from 1,067 million yuan in 2023 to 1,967 million yuan in 2027, with a CAGR of approximately 13.9% [4]. - Net profit attributable to the parent company is expected to recover from a loss of 77 million yuan in 2024 to a profit of 174 million yuan in 2027 [4]. - The gross margin is expected to improve, with a forecasted gross margin of 29.6% in 2025 [12]. Market Position - The company has a total market capitalization of 3,084 million yuan, with a share price range over the past 52 weeks between 19.67 and 44.97 yuan [6]. - The company has established strong relationships with clients in various international markets, with overseas revenue accounting for 53.26% of total revenue in the first half of 2025 [12]. Profitability Metrics - The net profit margin for the first three quarters of 2025 is reported at 6.9%, an increase of 2.5 percentage points year-on-year [12]. - The return on equity (ROE) is expected to improve from -7.8% in 2024 to 13.6% in 2027 [4][12].

Market Performance - Emerging markets showed stronger performance last week, with MSCI Global up by 1.2%, MSCI Developed Markets up by 1.1%, and MSCI Emerging Markets up by 1.7% [9][12] - Among developed markets, the Taiwan Weighted Index had the best performance at +3.1%, while the French CAC40 Index was the weakest at -0.6% [9] - In the emerging markets, the ChiNext Index performed the best at +3.9%, while the Indian Sensex30 was the weakest at +0.1% [9] Trading Sentiment - Trading volume in the US and Europe decreased due to the Christmas holiday, with the Hang Seng Index's volatility continuing to decline [23] - The Shanghai Composite Index's trading volume increased to 2.51 billion shares and $564.5 billion, while the Hang Seng Index's trading volume decreased to 5.8 billion shares and $24.4 billion [23] - Investor sentiment in Hong Kong improved, with short-selling ratios decreasing to 15.1%, while North American sentiment remained high with the NAAIM Manager Index at 95.1% [23][26] Earnings Expectations - The global energy sector's earnings expectations were significantly revised upwards, while the Hong Kong market's earnings expectations were revised downwards [72] - The Hang Seng Index's 2025 EPS earnings expectation was adjusted from 2063 to 2062, with the energy sector seeing the largest upward revision of +7.1 [72] - In the US market, the S&P 500 Index's 2025 EPS earnings expectation remained stable at 273, with the energy sector also seeing a slight upward revision of +0.4 [72] Economic Expectations - Economic indicators in the US and Europe showed marginal improvement, with the Citigroup US Economic Surprise Index returning to positive territory [72] - The European Economic Surprise Index also saw a slight increase, supported by stable ECB rate policies and reduced geopolitical tensions [72] - In contrast, the Citigroup China Economic Surprise Index declined, influenced by weak industrial profit growth and fluctuating policy expectations [72] Fund Flows - The Federal Reserve's stance on interest rate cuts for 2026 remains divided, with hawkish officials advocating for caution due to inflation concerns [55] - Market expectations indicate that the Fed may cut rates approximately twice in 2026, unchanged from the previous week [55] - Global liquidity trends showed significant inflows into China, the US, South Korea, India, and Europe, with Hong Kong experiencing accelerated capital inflows [66][67]

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies [1]. Core Insights - The launch of the carbon-based high-performance materials demonstration project by China Chemical signifies the first industrial application of graphene continuous gas-phase synthesis technology in China [1]. - Clearon Technology has completed a multi-million angel round financing to expand production lines and develop core equipment for high-performance composite dielectric films [3]. - Guangyin Technology has secured a significant A+ round financing to accelerate the industrialization of perovskite technology and expand into consumer electronics and IoT applications [4]. Summary by Sections Industry Development Dynamics - The carbon-based high-performance materials demonstration project in Hefei covers an area of 49.43 acres and includes a production line for 200 tons/year of gas-phase synthesized graphene powder and 4000 tons/year of graphene functional slurry [1]. Investment and Financing Dynamics - Clearon Technology, founded in September 2024, focuses on high-performance composite dielectric materials and has completed a multi-million angel round financing led by Zhongke Chuangxing [3]. - Guangyin Technology, established in 2022, aims to commercialize perovskite technology and has received funding to enhance its production capacity and market reach [4]. Market Performance - The Wande New Materials Index rose by 7.03% in the week from December 22 to December 26, while the CSI 300 Index increased by 1.95% during the same period [6].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoint The report tracks important developments in the domestic and international "dual carbon" field from December 22 to December 26, 2025, mainly in the carbon quota trading area. Prices of carbon allowances in European and American carbon markets increased last week, while volume decreased; the price of Korean carbon allowances decreased, and so did the volume. In the domestic market, the cumulative trading volume and amount of carbon emission allowances in the national carbon market increased significantly, and the weekly trading volume in domestic pilot carbon markets also rose [2]. 3. Summary by Directory 3.1 International Carbon Trading Market Tracking - **European Carbon Quota Price and Volume**: EUA spot prices rose by 1.28% from December 22 to December 23, and due to Christmas closures, the trading volume decreased by 44.51% to 278,000 tons last week [6]. - **US Carbon Quota Price and Volume**: EUA futures prices rose by 0.61% from December 22 to December 24, with a trading volume decrease of 65.01% to 58.7 million tons last week. UKA futures prices rose by 0.95% from December 22 to December 26 [9]. - **Korean Carbon Quota Price and Volume**: KAU25 spot prices decreased by 1.58% from December 22 to December 26, and the trading volume dropped by 29.68% to 462,400 tons last week [13]. 3.2 Domestic Carbon Market Tracking - **National Carbon Market Carbon Quota Volume and Average Transaction Price**: The cumulative trading volume of national carbon market carbon allowances (CEA) was 1.56556 million tons, and the cumulative trading amount was 1.122 billion yuan, with increases of 60.92% and 93.63% respectively. As of December 26, the average daily transaction price of CEA was 71.36 yuan/ton, up 19.66% [16]. - **Weekly Average Transaction Price of Carbon Quotas in Domestic Pilot Provincial and Municipal Carbon Markets**: Except for HBEA in Hubei Province, the weekly average transaction prices of carbon quotas in domestic pilot carbon markets increased. FJEA in Fujian Province had the largest increase at 10.63%. Compared with the same period last month, the prices varied. BEA in Beijing had the largest increase at 7.01%, and SZA in Shenzhen had the largest decrease at 15.66% [18]. - **Trading Volume and Transaction Amount of Carbon Quotas in Domestic Pilot Provincial and Municipal Carbon Markets**: Last week, carbon quota trading in domestic pilot carbon markets was mainly concentrated in Tianjin, Hubei, and Guangdong, accounting for 77.82% of the total weekly trading volume. The transaction amounts in Tianjin, Beijing, and Hubei accounted for 76.55% of the total. The total weekly trading volume in domestic pilot carbon markets was 759,400 tons, an increase of 88.70% [19]. 3.3 Dual Carbon Frontier Technology Tracking - **Delivery of the World's First Methanol Dual-Fuel Powered Intelligent Ultra-Large Oil Tanker**: On December 22, the "Kaituo" tanker, the world's first methanol dual-fuel powered intelligent ultra-large oil tanker, was successfully delivered in Dalian. It has features such as strong seaworthiness, good port adaptability, low emissions, and intelligent operation. Compared with conventional fuel oil, it can reduce carbon dioxide emissions by up to 92% [24]. - **Release of the World's First Native Power Professional Large Model**: Recently, the NWHR Power Production Large Model (AI EPS V1.0) was officially released, which is the world's first native power large model innovated from the source of the underlying architecture, a significant innovation in the application of AI in the vertical field of power production [24].

- The Growth 50 portfolio achieved the best performance last week with a weekly return of 3.71%, generating an excess return of 0.47% relative to the China Securities Growth Index[1][5] - The Value 50 portfolio and the Value Balanced 50 portfolio had weekly returns of 1.79% and 0.36%, respectively[5] - The Small Cap 50 portfolio and the Small Cap Balanced 50 portfolio had weekly returns of 1.13% and 3.53%, respectively[5] - The annual returns for the Value 50 portfolio and the Value Balanced 50 portfolio were 19.70% and 24.05%, respectively[5] - The annual returns for the Growth 50 portfolio and the Growth Balanced 50 portfolio were 28.75% and 33.90%, respectively[5] - The annual returns for the Small Cap 50 portfolio and the Small Cap Balanced 50 portfolio were 49.75% and 45.36%, respectively[5] - The maximum relative drawdown for the Value 50 portfolio was 5.19%, and for the Value Balanced 50 portfolio, it was 4.91%[8] - The maximum relative drawdown for the Growth 50 portfolio was 11.66%, and for the Growth Balanced 50 portfolio, it was 13.35%[8] - The maximum relative drawdown for the Small Cap 50 portfolio was 10.89%, and for the Small Cap Balanced 50 portfolio, it was 4.56%[8] - The Smart beta portfolios were constructed based on high beta elasticity and long-term stable excess returns, selecting historically low-correlated styles such as value, growth, and small cap[7]

Macro Economic Insights - The US GDP grew by 2.33% year-on-year and 4.30% quarter-on-quarter in Q3 2025[7] - The industrial output in the US increased by 2.29% year-on-year in November 2025[8] - The EU's crude steel production in November 2025 was 102 million tons, down 4.67% year-on-year[10] Market Performance - Major global stock indices saw gains: Nikkei 225 up 2.5%, Shanghai Composite up 1.9%, and S&P 500 up 1.4% for the week ending December 26, 2025[6] - Commodity prices rose significantly, with COMEX copper up 6.7% and London gold up 4.4%[6] - The US dollar index fell by 0.7%, while the Chinese yuan appreciated by 0.5% against the dollar[6] Investment Trends - The Chinese stock market is expected to stabilize above 4000 points, indicating a potential "transformation bull" market[27] - Emerging technologies are projected to be the main investment focus for 2025, with cyclical finance as a potential dark horse[27] - The risk premium for the Shanghai Composite relative to the 10Y government bond has decreased, indicating improved market sentiment[20] Sector Analysis - The average price of liquid argon has nearly doubled year-on-year, indicating strong demand in the mechanical sector[53] - The insurance sector is seeing a valuation recovery, benefiting from asset reallocation by residents[19] - The real estate market is experiencing a seasonal rebound, with increased transactions in Beijing following relaxed purchase restrictions[19]

Investment Rating - The report indicates a positive outlook on the cross-border payment industry driven by the digital renminbi, suggesting an upgrade in the investment rating for the sector [1]. Core Insights - The People's Bank of China (PBOC) is promoting the internationalization of the renminbi in conjunction with the digital renminbi, marking a transition from "scale expansion" to "structural upgrade" in the internationalization process [4][7]. - The digital renminbi enhances cross-border payment efficiency and regulatory control, providing a dual engine for the internationalization of the renminbi [4][7]. - The report emphasizes the establishment of a multi-track payment system that integrates cross-border regulation, infrastructure, and regional cooperation, which is crucial for the evolution of the digital renminbi [2][19]. Summary by Sections 1. Dual-Engine Framework Established - The PBOC has identified the steady development of the renminbi and digital renminbi as a core task for high-level financial openness, emphasizing a "dual-engine" strategy to enhance the international status of the renminbi [7]. - The cross-border payment system is being expanded, with a focus on the CIPS (Cross-Border Interbank Payment System) to better serve international trade and investment [7][9]. - The digital renminbi is positioned as a key driver for cross-border payments, particularly in small and frequent transaction scenarios, offering advantages such as decentralization, real-time settlement, and lower costs [7][9]. 2. Multi-Track Payment System Development - The multi-track payment system is evolving through cross-border regulation, infrastructure, and regional cooperation, which is essential for the digital renminbi's acceptance in international markets [2][19]. - The CIPS has expanded its reach, with 1,757 participants across 124 countries and regions, enhancing the renminbi's usability and stability in international transactions [9][10]. - The digital renminbi's design allows for real-time monitoring of cross-border fund flows, ensuring regulatory compliance while maintaining transaction efficiency [19][22]. 3. Infrastructure as Core Support for Internationalization - The CIPS serves as the backbone of the renminbi's internationalization, with a significant increase in participants since its launch in 2015, creating a robust institutional foundation for cross-border usage [9][10]. - The report highlights the comparative advantages of the CIPS over traditional systems like SWIFT, particularly in terms of transaction speed and cost efficiency [14][15]. - The digital renminbi's point-to-point settlement mechanism allows for near-instantaneous transactions, making it particularly suitable for small, high-frequency payments [15][16].

Group 1 - The core view of the report emphasizes that duration volatility may have a greater impact on perpetual bonds than tail credit issues [1] - The 2025 bank subordinated bond market showed stable issuance with differentiated spreads, where the net issuance of tier 2 capital bonds decreased significantly due to a drop in issuance from joint-stock banks [7][9] - The report identifies three main changes behind the stable issuance and high volatility in the bank subordinated bond market: the divergence in bank balance sheet expansion, instability in the configuration of long-term subordinated bonds, and the dual nature of tail risks regarding redemption [11][19][24] Group 2 - In the primary market, the issuance of bank subordinated bonds is expected to remain stable, with state-owned banks projected to issue around 9,000 billion yuan in perpetual bonds and 2,500 billion yuan in TLAC bonds in 2026 [27][28] - The secondary market strategy suggests focusing on the stability of the liability side and the redemption aspect of credit, with limited spread space for short-duration bonds and sufficient spread for long-duration bonds, but ongoing instability may disrupt the market [30][41] - The report anticipates that tail risks will continue to exist, particularly for small and medium-sized banks, which may face pressures leading to either non-redemption or non-renewal of bonds [33][35]

Investment Rating - The report assigns an "Accumulate" rating for the brain-computer interface (BCI) industry, indicating a potential increase of over 15% relative to the CSI 300 index [4]. Core Insights - The brain-computer interface industry in China has experienced rapid development due to supportive policies, with significant attention being drawn to it [2][4]. - A recent meeting held by the National Medical Products Administration emphasized the strategic importance of BCI technology and the need for safety and effectiveness as primary considerations [4]. - The report outlines a vision for the BCI industry, aiming for breakthroughs in key technologies by 2027 and the establishment of a reliable industrial ecosystem by 2030, with the goal of nurturing globally influential companies [4]. Summary by Sections Industry Development - The BCI industry is positioned at the intersection of life sciences and information technology, facilitating collaboration between biological and machine intelligence [4]. - The government has set ambitious targets for the BCI sector, including the establishment of advanced technical and industrial systems by 2027 and the creation of 2 to 3 industry clusters [4]. Policy and Regulatory Framework - The report highlights the importance of cross-departmental collaboration to address key technical challenges and enhance the overall competitiveness of BCI products [4]. - The implementation of innovative regulatory methods and the construction of a standard system are crucial for the industry's growth [4].

Investment Rating - The report assigns an "Accumulate" rating to the medical device industry, indicating a positive outlook for investment opportunities [4]. Core Insights - The National Healthcare Security Administration (NHSA) issued the "Guidelines for the Project Establishment of Pathology Medical Service Pricing (Trial)," which is expected to standardize the artificial intelligence-assisted diagnosis market [2][4]. - The guidelines consolidate existing pricing projects into 28 items, with 3 additional charges and 2 expansion items, aiming to create a unified pricing standard across provinces [4]. - The inclusion of "AI-assisted diagnosis" as an expansion item in the pricing guidelines is anticipated to regulate the market and stimulate research and development in the industry [4]. Summary by Sections - **Policy Implementation**: The NHSA's guidelines are part of a broader initiative to reform medical service pricing, promoting a structured approach to pricing in pathology services [4]. - **Pricing Structure**: The guidelines specify that the pricing for pathology diagnosis includes costs associated with sample reception, interpretation, diagnosis, AI assistance, and report generation [4]. - **Digital Transformation**: The requirement for medical institutions to upload pathology reports and digital images is expected to drive the adoption of digital technologies and facilitate nationwide sharing of diagnostic results [4].