Investment Rating - The report maintains an "Overweight" rating for the real estate industry, consistent with the previous rating [8]. Core Insights - On November 18, the Shanghai Municipal Housing and Urban-Rural Development Administration and other departments jointly issued a notice to cancel the standards for ordinary housing and non-ordinary housing, which is expected to boost market transactions [9]. - The new policy includes tax adjustments: the personal income tax rate for transferring non-ordinary housing is reduced from 2% to 1%, and the value-added tax for selling housing held for over two years is exempted [9]. - The cancellation of the ordinary housing standard is anticipated to lower transaction costs effectively, enhancing market activity [9]. - The report notes a shift in policy approach, with new measures being implemented even before signs of market cooling, focusing on improving demand through tax burden reduction [9]. - Following Shanghai's lead, Beijing has also canceled the ordinary housing standard, with expectations that other first-tier cities will follow suit [9]. Summary by Sections Policy Changes - The cancellation of the ordinary housing standard and related tax adjustments are set to take effect on December 1 [9]. - The new tax policies are designed to lower costs for both buyers and sellers, potentially increasing transaction volumes [9]. Market Outlook - The report suggests that the real estate sector is entering a new phase, with asset restructuring and integration expected to become focal points [9]. - It anticipates a potential acceleration in domestic debt restructuring as part of risk mitigation strategies [9]. - The report highlights the importance of resource integration, particularly in first-tier cities, where state-owned enterprises may gain advantages [9]. Company Forecasts - The report includes earnings forecasts for key companies in the sector, all rated as "Overweight" [12]. - Specific companies mentioned include Vanke A, Poly Developments, China Merchants Shekou, and others, with projected earnings per share (EPS) and price-to-earnings (PE) ratios provided for 2023A, 2024E, and 2025E [12].

Investment Rating and Core Views - The report initiates coverage on Youyou Foods with an "Overweight" rating, setting a target price of 13.4 yuan, corresponding to a 29X PE for 2025 [3] - The core view is that Youyou Foods, as a leader in the pickled and braised snack market, is expected to see accelerated growth due to new product categories and channel expansions [2][3] - The company's EPS is forecasted to grow by 33%, 30%, and 26% year-over-year for 2024-2026, reaching 0.36, 0.46, and 0.58 yuan respectively [3] Financial Projections and Valuation - Revenue is projected to grow by 19.4%, 28.1%, and 25.3% year-over-year for 2024-2026, reaching 1.154, 1.478, and 1.852 billion yuan respectively [8] - Net profit is expected to increase by 30.8%, 29.8%, and 25.9% year-over-year for 2024-2026, reaching 152, 197, and 248 million yuan respectively [8] - The PE valuation method suggests a fair value of 12.91 yuan based on a 28X PE for 2025, while the FCFF method suggests a fair value of 13.92 yuan, leading to an average target price of 13.4 yuan [16][18][20] Market Position and Competitive Advantage - Youyou Foods holds a market share of over 20% in the pickled chicken feet segment, with sales exceeding 1 billion yuan, significantly ahead of the second-tier competitors whose revenues range between 100-200 million yuan [3] - The company's brand and product quality are leading in the industry, with non-chicken feet products accounting for over 25% of revenue in 2023, and the new deboned duck feet product contributing 70 million yuan in Q3 2024 [3][37] - The company is expected to strengthen its market position as the industry moves towards larger-scale and more standardized operations, with significant room for market share growth [3] Product and Channel Strategy - Youyou Foods is expanding its product matrix, with traditional chicken feet products stabilizing and new products like deboned duck feet gaining traction, especially in the Sam's Club channel [3][37] - The company is accelerating its national expansion, with a focus on the East China market, where revenue grew by 16.7% year-over-year in Q3 2024 [47] - The company is actively embracing membership-based supermarkets like Sam's Club and Costco, with the deboned duck feet product becoming a top seller in Sam's Club, contributing significantly to Q3 2024 revenue [48] Industry Outlook - The spicy snack market in China is expected to reach 228.4 billion yuan in 2024, with a CAGR of 8.7% from 2019-2024, indicating strong growth potential [31] - The pickled chicken feet market is fragmented, with over 600 manufacturers, but Youyou Foods leads with a 20% market share, and the industry is expected to consolidate further, benefiting larger players [33] - The company is well-positioned to capitalize on the growing demand for spicy snacks, with its strong brand and product innovation capabilities [31][33]

Investment Rating - The report assigns a positive investment rating to Jiachi Technology (688708.SH), highlighting its position as a leading domestic EMMS supplier with significant growth potential in both military and civilian markets [3][4]. Core Viewpoints - Jiachi Technology is a major provider of EMMS materials, with products extensively used in China's third and fourth generation fighter jets, indicating a strong market demand and growth potential [3][4]. - The company achieved revenue and net profit of 981 million and 564 million RMB respectively in 2023, with a compound annual growth rate (CAGR) of 36.02% in revenue and 83.63% in net profit from 2021 to 2023 [9][12]. - The company plans to raise 1.245 billion RMB through its IPO to enhance production capacity and R&D capabilities, which will support the scaling of its stealth function structural components business [30][31]. Summary by Sections Company Overview - Jiachi Technology is recognized as a leading EMMS supplier in China, focusing on stealth materials for military applications and expanding into civilian sectors [3][8]. - The company has developed key technologies in stealth materials, achieving significant breakthroughs in lightweight and thin materials, which are critical for modern military applications [8][22]. Main Business Analysis - Over 95% of Jiachi's revenue comes from military products, benefiting from increasing national defense spending and the demand for updated weaponry [9][12]. - The company has maintained a high gross margin, although it experienced slight fluctuations due to the introduction of new products with lower margins [15][16]. Industry Development and Competitive Landscape - The stealth materials market is expected to expand significantly, driven by the increasing need for advanced military capabilities and the modernization of China's air force [22][23]. - The global electromagnetic compatibility materials market is projected to reach 8.2 billion USD by 2025, indicating a growing opportunity for Jiachi in this segment [23][24]. Comparable Company Valuation - The average PE ratio for comparable companies in the "C41 Other Manufacturing" sector was 49.72 times as of November 18, 2024, with Jiachi's projected PE ratios for 2024 and 2025 being 34.08 and 27.63 times respectively [33][35].

Investment Rating - The report suggests that the electric two-wheeler industry is experiencing accelerated differentiation in terminal sales, with leading brands benefiting significantly [1]. Core Insights - The new 3C certification standards, effective from November 1, 2024, are expected to improve the supply landscape, as leading manufacturers have sufficient SKU reserves, while smaller brands are struggling to meet certification requirements [1]. - The upcoming national standard is anticipated to enhance average selling prices (ASP) and increase market concentration by requiring manufacturers to reduce plastic components and increase metal parts, alongside the introduction of smart features [2]. - The "old-for-new" policy is primarily supporting lead-acid products, with subsidies ranging from 10% to 20% of the selling price, potentially leading to significant consumer incentives [3]. Summary by Sections 3C Certification - The new certification includes safety standards for lithium-ion batteries, chargers, and electrical safety, which must be met for products to be sold or imported [1]. - Leading brands like Aima and Yadea have completed over 100 model certifications, leading to improved terminal sales and a shift in dealer preferences towards these brands [1]. New National Standards - The new standards are expected to be officially released by the end of 2024, which will likely increase production costs and require brands to enhance their technological capabilities [2]. - The transition from OEM to OBM production models is anticipated, which will phase out smaller brands lacking quality control capabilities [2]. Old-for-New Policy - The policy is gradually being implemented nationwide, with subsidies typically between 400-600 yuan, and additional incentives for recycling lithium battery products [3]. - In Shanghai, the total subsidy for mainstream brands could reach 20%-30%, indicating strong support for the transition to new standards [3].

Industry Investment Rating - The report suggests a positive outlook for the apparel and home textile industry, with potential valuation recovery for leading brands due to current low valuations and supportive consumption policies [2] Core Views - Apparel brand sales showed month-on-month improvement in October, indicating a steady and positive trend in fundamentals [2] - Leading home textile brands are expected to maintain high dividend payouts due to strong cash flow and low capital expenditure needs [2] - Government subsidies for home textiles have expanded nationwide, with significant discounts (15%-20%) expected to boost consumer demand [2][3] Subsidy Policy Details Online Subsidy Phases - **Phase 1 (Double 11 period)**: Subsidies were initially limited to Shanghai, covering categories like bedding sets, down quilts, silk quilts, pillows, and blankets with a 15% discount [2] - **Phase 2 (Post Double 11)**: Subsidies expanded to cover all inland regions in China, with JD.com offering a 20% discount on all categories [2] Offline Subsidy Implementation - **Shanghai**: Home textile products were included in the city's consumption subsidy policy in late October, with a 15% discount and a maximum subsidy of 2000 RMB per transaction [3] - **Xiamen**: Bedding products were added to the subsidy list with a 20% discount and a maximum subsidy of 2000 RMB per transaction [3] Impact on Leading Brands - Leading home textile brands such as Luolai, Shuixing, and Fuanna are actively participating in subsidy activities, which are expected to boost terminal sales due to wide coverage and significant discounts [3] - These brands are likely to benefit from their strong brand power and superior product quality, leading to sustained improvement in fundamentals [3]

Industry Investment Rating - The report maintains an **Overweight** rating for the environmental protection industry, consistent with the previous rating [7] Core Views - The 29th Climate Change Conference (COP29) emphasized methane emission reduction, which is crucial for controlling global temperature rise Methane has a greenhouse effect 28 times stronger than CO2, and its reduction can help achieve short-term climate goals [14][15] - China has introduced a methane emission control action plan, which is expected to drive demand for methane emission monitoring, accounting, and CCER projects [15] - The report recommends companies benefiting from methane reduction monitoring and waste-to-energy projects, such as **Snow Dragon** (CEMS leader) and waste incineration leaders like **Everbright Environment**, **Grandblue Environment**, **Chongqing Sanfeng Environment**, and **Green Power** [16] Weekly Market Performance - The environmental protection sector underperformed last week, with the **Shenwan Environmental Protection Index** down 4.82% Other related sectors like gas, water, and power also declined by 1.75%, 4.27%, and 3.15%, respectively [20] - Top gainers in the environmental protection sector included **Jiaao Environmental Protection** (+25.71%) and **Anche Inspection & Testing** (+14.55%) [20] - Top losers were **Xingyuan Environment** (-20.60%) and **Hexin Instrument** (-18.94%) [20] Carbon Market Tracking - Last week, the national carbon market (CEA) saw a 45% increase in trading volume to 10.33 million tons, with an average price of 101.69 RMB/ton, remaining stable [22] - Local carbon market trading volume dropped 44% to 381,700 tons, but the average price rose 56% to 81.08 RMB/ton [22] - CCER trading volume in local markets surged 60% to 975,300 tons [22] Key Industry Developments - The Ministry of Industry and Information Technology issued guidelines for carbon footprint accounting standards, aiming to establish 200 standards by 2027, focusing on industries like steel, non-ferrous metals, and new energy vehicles [23] - The **Soil Pollution Source Control Action Plan** was released, targeting a 90% compliance rate for soil pollution inspections by 2027 and a 94% safe utilization rate for contaminated farmland [24] Corporate Updates - **Zhongchuang Environmental Protection** announced a 4.22% equity transfer to Huisheng Zhifeng [25] - **Fujie Environment** saw a reduction in shareholder Bangming Venture Capital's stake from 6.03% to 5.00% [26] - **Wanyi Technology** increased its share repurchase budget to 55-105 million RMB and extended the repurchase period to May 2025 [27] - **China Tianying** won a rural waste disposal project worth 53.17 million RMB [30]

Group 1: Market Performance - The AI and power battery sectors showed the best performance, with declines of only 0.3% and 0.6% respectively over the past week[3] - Applovin reported Q3 revenue of $1.198 billion, a 39% year-on-year increase, and a net profit of $434 million, up 300%[3] - Palantir Technologies also exceeded expectations in Q3, with its stock price increasing over 300% in 2024[3] Group 2: Policy Signals - The China Securities Regulatory Commission (CSRC) released formal guidelines on market value management, enhancing the freedom of listed companies in this area[3] - Shenzhen is drafting new policies to promote mergers and acquisitions (M&A) among listed companies, proposing 11 specific measures[3] - Shanghai has approved a three-year action plan to support M&A activities, emphasizing the importance of M&A in improving company quality and fostering leading enterprises[3] Group 3: Industry Trends - EHang completed a successful eVTOL solid-state battery flight test, achieving a flight time of 48 minutes and a range increase of 60% to 90% compared to traditional configurations[3] - Huawei launched a global embodied intelligence innovation center, partnering with 16 companies to advance this technology[3] - XPeng signed orders for over 2,000 units of its flying car, setting a record in the global flying car market[3] Group 4: Mergers and Acquisitions - Ten listed companies announced M&A plans, focusing on horizontal or vertical integration within their industries[4] - Notable transactions include Yintong Intelligent Control's acquisition of Aisheng's controlling stake and Huahai Chengke's acquisition of Huawai Electronics[4] Group 5: Risk Factors - Potential risks include changes in the macroeconomic environment, adjustments in capital markets, updates in industrial policies, and slower-than-expected commercialization in the tech sector[4]

Investment Rating - The report maintains a "Buy" rating for the company, with a revised target price of 18.24 CNY [3][4]. Core Views - The company is expected to benefit from major clients, with its RF module products for 4G and 5G anticipated to scale up, leading to a reversal of its current difficulties [2][3]. - The report highlights that the RF sector's price competition is gradually bottoming out, which should improve the company's gross margins as major manufacturers begin to stabilize their cash flows [3]. Financial Summary - The company is projected to generate revenues of 558 million CNY in 2024, down from previous estimates, with 2025 revenues expected to reach 1.295 billion CNY and 2026 revenues at 2.292 billion CNY [3][10]. - The earnings per share (EPS) estimates have been adjusted to -0.85 CNY for 2024, 0.01 CNY for 2025, and 0.48 CNY for 2026 [3][10]. - The company reported a revenue of 130.3 million CNY in Q3 2024, a year-on-year decrease of 13% [3]. Product Development - The company is actively advancing its 5G and 4G RF module research and development, with its L-PAMiD product already in small-scale production, which is expected to accelerate adoption by brand clients [3]. - New product developments include the small-sized high-integration n77/n79 dual-band L-PAMiF products and conventional low-pressure PA chips for 5G, as well as upgraded 4G PA products [3]. Market Position - The company is positioned as a leading supplier of RF modules, benefiting from demand from smartphone and IoT brand clients [3]. - The overall product structure is being optimized, with expectations for significant volume increases in high-end products from major brands such as Samsung, Vivo, Xiaomi, and OPPO [3].

Performance of Enhanced Index Funds - As of November 15, 2024, the top three enhanced funds for the CSI 300 index achieved excess returns of 6.9%, 6.45%, and 5.02% respectively[5] - The top three enhanced funds for the CSI 500 index achieved excess returns of 6.7%, 6.28%, and 4.63% respectively[5] - The top three enhanced funds for the CSI 1000 index achieved excess returns of 11.43%, 9.17%, and 8.1% respectively[5] - The top three enhanced funds for the CSI 2000 index achieved excess returns of 6.78%, 3.3%, and 4.07% respectively[5] Factor Performance - The best performing factors in the CSI 300 index last week were market capitalization, analyst ratings, and valuation[4] - The best performing factors in the CSI 500 index last week were price-volume, market capitalization, and analyst ratings[4] - The best performing factors in the CSI 1000 index last week were price-volume, profitability, and market capitalization[4] - The best performing factors in the CSI 2000 index last week were analyst expectations, price-volume, and profitability[4] Enhanced Strategy Performance - The CSI 300 enhanced strategy had a weekly return of -2.2% with an excess return of 1.09% and a year-to-date return of 21.52%[5] - The CSI 500 enhanced strategy had a weekly return of -4.32% with an excess return of 0.47% and a year-to-date return of 15.39%[5] - The CSI 1000 enhanced strategy had a weekly return of -3.24% with an excess return of 1.39% and a year-to-date return of 9.54%[5] - The CSI 2000 enhanced strategy had a weekly return of -2.52% with an excess return of 1.68% and a year-to-date return of 7.3%[5]

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company's self-developed high-end home cleaning brand, Zhanjia, is expanding from niche products to the main category of laundry detergent, with significant growth observed in recent sales through Douyin [2][3]. - The earnings forecast has been raised due to the continuous growth of Zhanjia's major products, with expected EPS of 0.59, 0.83, and 1.11 yuan for 2024-2026, respectively [3]. - The target price has been adjusted to 26.56 yuan, reflecting a PE of 32x for 2025, up from a previous target of 22.35 yuan [4]. Summary by Sections Company Overview - Zhanjia brand, launched in 2020, focuses on high-end home cleaning products, leveraging online operational capabilities to drive growth [3]. - The brand's story is inspired by New Zealand, emphasizing premium positioning supported by plant-based antibacterial and personalized fragrance concepts [3]. Market Dynamics - The home cleaning and personal care industry in China is valued at over 120 billion yuan, with traditional and international brands holding significant market share [3]. - Changes in consumer demand and channel dynamics are expected to benefit brands with strong operational capabilities, like Zhanjia, which is tapping into the growing trend for fragrance and detailed care products [3]. Financial Performance - Revenue is projected to grow from 1,366 million yuan in 2023 to 2,503 million yuan in 2025, reflecting a CAGR of 37.6% [10]. - Net profit is expected to increase significantly, from 54 million yuan in 2023 to 141 million yuan in 2025, indicating a robust growth trajectory [10]. - The company’s operating model is shifting towards brand management, which is anticipated to enhance profitability [3].