Investment Rating - The report rates the military industry as "Overweight" [7] Core Viewpoints - The military sector is experiencing growth, highlighted by the launch of the world's first wooden artificial satellite and the upcoming display of multiple new equipment at the airshow, including China's second stealth fighter [8][9] - The report emphasizes that the intensification of great power competition is a long-term trend, leading to a favorable long-term outlook for the military industry [15] Summary by Sections 1. Core Viewpoints - Multiple new military equipment will be showcased at the airshow, including the J-35A stealth fighter, marking a significant advancement in China's military capabilities [14][31] - The report suggests focusing on aerospace and satellite internet sectors as key investment areas due to the complex international environment [14][15] 2. Market Review - The military defense index rose by 13.08%, outperforming the market by 7.57 percentage points, ranking 2nd out of 29 sectors [9][18] - The CS Aerospace Index showed the best performance, increasing by 14.76% [21] 3. Major News in the Military Industry - The report details significant domestic news, including the 75th anniversary of the People's Air Force and the introduction of new military equipment at the airshow [28] - The J-35A and the Hong-19 surface-to-air missile system will be publicly displayed for the first time, showcasing advancements in China's military technology [34]

Investment Rating - The report maintains an "Overweight" rating for the real estate sector, consistent with the previous rating [7]. Core Insights - The Ministry of Housing and Urban-Rural Development and the Ministry of Finance have jointly issued a policy to promote the renovation of urban villages, which is expected to support physical volume and drive urban development. Local state-owned enterprises are anticipated to become the main force in urban renewal projects [9][10]. - The policy's support scope has expanded from 35 major cities to nearly 300 cities, allowing projects with balanced funding and mature compensation schemes to be included [10]. - The implementation of urban renewal projects is expected to create incremental physical volume to offset the decline in direct real estate investment, as evidenced by the negative growth in land use rights transfer revenue since its peak in 2021 [10]. - Compared to past urban expansion, urban renewal is seen as a more efficient means of promoting urban development, especially in core urban areas where land transfer has become challenging [10]. - The report highlights successful examples of urban renewal, such as the Roppongi project in Tokyo, which transformed an old district into a multifunctional area [10]. Summary by Relevant Sections - **Policy Support**: The new policy supports the expansion of urban village renovation projects to a broader range of cities, enhancing the potential for urban renewal [10]. - **Market Impact**: The report anticipates that urban renewal will counterbalance the decline in real estate investment, providing a boost to physical volume in the sector [10]. - **Investment Opportunities**: Local state-owned enterprises in first-tier cities are expected to lead urban renewal projects, with specific companies like China Merchants Shekou, Poly Developments, and others recommended for investment [10][13].

Investment Rating - The report rates the mechanical industry as "Overweight" [1] Core Viewpoints - The prices of bulk gases such as oxygen, nitrogen, and argon have slightly declined week-on-week, but the year-on-year decline is narrowing. With the gradual recovery of downstream demand, bulk gas prices are expected to rebound [2][5] - The report recommends stocks including Hangzhou Oxygen Plant and Shaanxi鼓动力, while benefiting stocks include Huate Gas, Qiaoyuan Co., Guanggang Gas, China Shipbuilding Special Gas, Kaimete Gas, Jinhong Gas, and Heyuan Gas [5] Summary by Sections Bulk Gas Prices - As of November 15, the average prices for bulk gases are as follows: - Liquid oxygen: 413.8 RMB/ton, weekly change -2.0%, yearly change -1.9% - Liquid nitrogen: 429.3 RMB/ton, weekly change -2.6%, yearly change -13.1% - Liquid argon: 649.1 RMB/ton, weekly change -1.9%, yearly change -45.4% [5][7] Rare Gas Prices - As of November 15, the average prices for rare gases are as follows: - Neon: 115 RMB/m³, yearly change -36.1% - Krypton: 330 RMB/m³, yearly change +40.0% - Xenon: 29,500 RMB/m³, yearly change -44.3% - Helium (40L bottle): 633.5 RMB/bottle, yearly change -44.7% [5][7] Steel Production and Prices - The weekly production of rebar remains stable at 2.3394 million tons, with a year-on-year decrease of 8.21%. The comprehensive steel price index (CSPI) is 97.71, with a year-on-year decrease of 12.43% [5][7]

Investment Rating - The report maintains an "Overweight" rating for the lithium and cobalt industry [3][5]. Core Insights - The report highlights that lithium prices experienced a rapid increase followed by a decline, driven by market sentiment and seasonal demand expectations. The overall supply-demand dynamics for lithium have not fundamentally changed, and there are risks of price pressure if demand weakens [4][16]. - The cobalt sector is entering a seasonal downturn, with prices remaining weak. Companies in the cobalt industry are extending their operations into downstream manufacturing, creating a cost advantage and enhancing competitive barriers [5][16]. Summary by Sections 1. Market Cycle Assessment - The lithium sector is characterized by cautious purchasing behavior from downstream buyers, with only limited transactions occurring. The weekly price for lithium carbonate contracts increased by 1.32% to 77,000 CNY/ton and by 2.49% to 78,300 CNY/ton on different exchanges [5][16]. - Lithium concentrate prices rose to 806 USD/ton, reflecting a 35 USD/ton increase, with market inventory tightening [5][16]. - The report anticipates that lithium prices will stabilize at high levels in the short term, with a potential for upward price adjustments if supply does not significantly increase [4][5]. 2. Company and Industry Dynamics - Liontown Resources plans to reduce its production target for SC6 lithium spodumene concentrate from 3 million tons to 2.8 million tons for FY2027, aiming for cost reductions of up to 100 million AUD (approximately 65.83 million USD) [20]. - Vulcan Energy has secured 106 million USD in funding from the German government to support its lithium hydroxide production project [20]. - MinRes announced the suspension of operations at its Ball Hill mine, with a planned reduction in production for FY2025 [20]. - Lake Resources is selling non-core assets in Argentina for 9 million USD to focus on its Kachi project [20]. 3. Key Data: New Energy Material Production, Imports, and Metal Prices - Lithium carbonate production increased by 4% month-on-month and by 48% year-on-year. Meanwhile, lithium hydroxide production decreased by 1% month-on-month but increased by 40% year-on-year [23][25]. - The report notes that the weekly production of battery-grade lithium carbonate rose by 5.39%, while inventory levels decreased by 1.51% [40]. - The average price for battery-grade lithium carbonate increased by 4.38% week-on-week, while the price for industrial-grade lithium carbonate rose by 4.44% [45].

Investment Rating - The report maintains an **Overweight** rating for the company, with a target price of **12.46 RMB**, corresponding to a 2024 PE ratio of **15.2x** [4][7] Core Views - The company's low-altitude economy business is expected to benefit from policy support in areas such as industrial subsidies, funding, and airspace opening, which will drive sustained growth in this sector [3] - The company is actively promoting digital transformation, with breakthroughs in areas such as smart parks, LiDAR technology, and digital planning consulting [4] - The company's low-altitude economy projects are progressing steadily, and its digital business continues to empower its operations [7] Financial Summary - **Revenue**: Expected to grow from **3,388 million RMB** in 2023 to **4,353 million RMB** in 2026, with a CAGR of **8.7%** [2] - **Net Profit (Attributable to Parent Company)**: Projected to increase from **488 million RMB** in 2023 to **565 million RMB** in 2026, with a CAGR of **5.0%** [2] - **EPS**: Forecasted to rise from **0.87 RMB** in 2023 to **1.01 RMB** in 2026 [2] - **ROE**: Expected to remain stable at around **12.2%-12.4%** from 2024 to 2026 [2] Low-Altitude Economy Business - The company is engaged in low-altitude planning, design, and platform construction, with significant progress in key projects [4] - It has collaborated with local governments and aviation authorities to conduct research on low-altitude economy planning and operations [4] - The low-altitude economy is considered a representative of new productive forces, with nearly **30 provinces** including it in their government work reports or policies [4] Digital Transformation - The company is advancing the construction of a digital design institute, enhancing its digital application capabilities [4] - It has made breakthroughs in intelligent parks, LiDAR technology, digital planning consulting, and smart toll systems [4] Financial Performance (2024 Q1-Q3) - **Revenue**: **2.294 billion RMB**, up **12.67%** YoY [4] - **Net Profit (Attributable to Parent Company)**: **315 million RMB**, down **16.07%** YoY [4] - **Operating Cash Flow**: **-496 million RMB**, compared to **-347 million RMB** in the same period last year [4] - **Accounts Receivable**: **1.388 billion RMB**, up **19.94%** YoY, accounting for **60.51%** of revenue [4] Valuation and Peer Comparison - The company's 2024E PE ratio is **12.0x**, lower than the industry average of **14.4x** [19] - Compared to peers, the company's valuation is considered reasonable, with a 2024E EPS of **0.82 RMB** and a net profit growth rate of **-6%** [19] Historical Performance - The company's historical PE ratio has ranged from **8.1x** to **14.6x**, with the current PE ratio of **10.7x** (2024E) near the lower end of the range [18] - The company's ROE has been stable, averaging around **14.1%-15.0%** from 2020 to 2023 [18]

Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 7.26 CNY, up from the previous target of 6.80 CNY [3][4][28]. Core Views - The company is positioned as a leading supermarket in Western China with high competitive barriers. The acquisition by ChuanShangTou is expected to bring significant synergies and enhance profitability through a focus on core business operations [4][27]. - The convenience store industry shows strong growth potential, with the company planning to enhance its product offerings and digital capabilities to improve competitive advantages [4][18]. Summary by Sections 1. Earnings Forecast and Investment Recommendations - The report forecasts EPS for 2024, 2025, and 2026 to be 0.44 CNY, 0.47 CNY, and 0.51 CNY respectively, with a slight adjustment in valuation due to store upgrades [4][24]. - The estimated revenue growth rates for 2024, 2025, and 2026 are 4.3%, 5%, and 5.3%, with projected revenues of 10.57 billion CNY, 11.10 billion CNY, and 11.68 billion CNY respectively [18][24]. 2. ChuanShangTou as the Controlling Shareholder - ChuanShangTou became the controlling shareholder of the company, acquiring a total of 229.93 million shares, which represents 16.91% of the total share capital [27][28]. - The acquisition is expected to create significant synergies due to ChuanShangTou's extensive portfolio in the food and logistics sectors [4][27]. 3. Market Position and Business Model - The company operates 3,655 convenience stores, with 58% located in Chengdu, establishing a strong network advantage [4][18]. - The company is focusing on digital transformation and enhancing its online platform collaborations to improve operational efficiency [4][18]. 4. Industry Growth and Competitive Landscape - The convenience store sector is growing faster than the overall retail market, with significant room for expansion compared to international markets [4][18]. - The competitive landscape is fragmented, providing opportunities for regional players to strengthen their market positions [4][18]. 5. Financial Performance and Projections - The company reported a net profit of 561 million CNY in 2023, with projections of 594 million CNY and 636 million CNY for 2024 and 2025 respectively [10][22]. - The report highlights a stable gross margin and a focus on cost reduction strategies to enhance profitability [4][19].

Investment Rating - The report maintains an "Overweight" rating for the utility sector [4][21]. Core Insights - The report emphasizes the importance of regulating market pricing behavior to ensure a rational distribution of profits across the industry chain. A recent notification from the National Energy Administration aims to correct irrational pricing and arbitrage behaviors, which is expected to lead to a more balanced profit distribution among market participants [2][3][12]. - In October 2024, the generation capacity of major power plants increased by 2.1% year-on-year, with notable declines in hydropower output and a slowdown in thermal power growth. Hydropower generation fell by 14.9% year-on-year, attributed to lower water inflow, while wind power saw a significant increase of 34.0% year-on-year [3][13][19]. Summary by Sections 1. Key Events and Industry Perspectives - The notification issued on November 11, 2024, aims to standardize pricing in the electricity market, which is expected to enhance the rationality of profit distribution within the industry [3][12]. - The report highlights that the profit of electricity sales companies in Guangdong for the first half of 2024 reached 3.1 billion CNY, accounting for 6.7% of the total profit in the electricity and heat production and supply sector, reflecting a year-on-year increase of 2.5 percentage points [3][11]. 2. Market Review - The report notes that the utility sector experienced a decline in stock prices, with hydropower down by 1.93%, thermal power down by 3.46%, and wind power down by 3.94% during the week [22][24]. - The report also provides insights into the performance of individual stocks, with ST Lingda showing the highest increase at 8.83% [29]. 3. Industry Data Tracking - The report tracks coal prices, noting a decrease in domestic port coal prices and an increase in imported coal prices. As of November 15, 2024, the price of Shanxi-produced Q5500 coal was 837 CNY per ton, reflecting a week-on-week decrease of 1.2% [39][43]. - The report also highlights the trends in electricity generation, with hydropower and thermal power experiencing significant changes in output growth rates compared to previous months [13][19]. 4. Investment Recommendations - The report suggests a focus on high-quality hydropower assets, recommending companies such as Yangtze Power and Sichuan Investment Energy. For thermal power, it recommends selecting companies with advantageous locations and attractive dividends, such as Guodian Power and Shenneng Shares [21][22].

Investment Rating - The report assigns a rating of "Buy" for Tencent Holdings (0700) [1]. Core Insights - The third-quarter business performance is generally in line with expectations, with a recovery in gaming, smooth commercialization of video accounts, and short-term pressure on enterprise services. The company is expected to maintain high profit growth for the full year [3]. - The report anticipates that the integration of video accounts and WeChat stores will further enhance the WeChat ecosystem, driving advertising business growth. Deferred revenue from games is expected to gradually materialize, and enterprise services are likely to benefit from ecosystem openness [5]. Financial Summary - For FY24Q3, Tencent achieved operating revenue of 167.2 billion RMB, a year-on-year increase of 8.13%, which is in line with consensus expectations (167.9 billion RMB). Adjusted net profit reached 59.8 billion RMB, a year-on-year increase of 33.2%, significantly exceeding market expectations (54.4 billion RMB) [5]. - The gross profit margin for FY24Q3 was 53.1%, with year-on-year and quarter-on-quarter changes of +3.64% and -0.18%, respectively. The slight decline in the quarter was mainly due to a 2.65 percentage point decrease in advertising gross margin [5]. - The company expects to repurchase over 100 billion HKD worth of shares for the full year [5]. Segment Performance - Value-added services (VAS) revenue for FY24Q3 was 82.7 billion RMB, a year-on-year increase of 9.2%, with gaming revenue at 51.8 billion RMB, up 12.6%. Domestic and international gaming revenues were 37.3 billion RMB and 14.5 billion RMB, respectively [5]. - Social network revenue reached 30.9 billion RMB, a year-on-year increase of 3.9%, meeting expectations [5]. - Advertising revenue for FY24Q3 was 30 billion RMB, a year-on-year increase of 16.6%, with video account advertising revenue growing over 60% year-on-year [5]. - Enterprise services revenue for FY24Q3 was 53.1 billion RMB, a year-on-year increase of 2%, showing slower growth mainly due to overall macroeconomic impacts [5]. Operational Data - The WeChat ecosystem remains robust, with VAS paid user growth showing positive momentum. The number of WeChat and WeChat MAUs increased by 3% year-on-year [31]. - The number of paid accounts for value-added services increased by 9% year-on-year [31].

Investment Rating - The report assigns an **Overweight** rating to the company with a target price of **57.00 CNY**, compared to the current price of **42.04 CNY** [4] Core Views - The company has transitioned from a single e-commerce operation model to a full-chain and full-ecosystem e-commerce service provider, with a strong foothold in the apparel sector and expansion into new consumer categories like Jellycat [2] - The company's brand incubation business is expected to drive a second growth curve, with significant potential for future growth [2] - Revenue and net profit have shown strong recovery, with revenue growing at a CAGR of 25.9% from 2018 to 2023, and net profit growing at a CAGR of 3.9% over the same period [9] - The company's gross and net profit margins have improved, with gross margin reaching 51.1% and net margin at 8.5% in the first three quarters of 2024 [9] Business Model and Growth Drivers - The company has evolved from a pure e-commerce operator to a comprehensive e-commerce service provider, covering apparel, health, pet food, and personal care categories [9] - The company's equity structure is concentrated, with the founder and co-founder holding approximately 38.8% of the shares [9] - The proportion of revenue from e-commerce operations has decreased from 76.9% in 2017 to 51.4% in H1 2024, while brand incubation revenue has increased from 16.7% to 38.5% over the same period [9] - The company has established long-term partnerships with major brands like Skechers and ECCO, solidifying its position in the apparel sector [9] Financial Performance - Revenue grew from **306 million CNY** in 2018 to **967 million CNY** in 2023, with a CAGR of 25.9% [9] - Net profit grew from **43 million CNY** in 2018 to **52 million CNY** in 2023, with a CAGR of 3.9% [9] - In the first three quarters of 2024, revenue and net profit grew by **23.5%** and **170%**, respectively [9] - The company's gross margin improved to **51.1%** in the first three quarters of 2024, while the net margin reached **8.5%** [9] Industry Outlook - The domestic e-commerce industry is transitioning from a focus on quantity to quality, with the brand e-commerce service market expected to grow from **407.7 billion CNY** in 2023 to **586.2 billion CNY** in 2028, at a CAGR of 7.5% [9] - The rise of new consumer brands, such as Jellycat, is expected to drive growth, with Jellycat's domestic sales expected to double in 2024 [9] - The company has added Jellycat as an online operation partner in H1 2024, which is expected to catalyze the launch of more new consumer projects [9] Competitive Advantages - The company has a strong brand presence, particularly in the apparel sector, with long-term partnerships with major brands like Skechers and ECCO [9] - The company has built a robust data system and developed proprietary software, enabling it to provide high-quality, full-chain services to clients [9] - The company has established a comprehensive service ecosystem, including cross-platform integration and deep business exploration, which is expected to drive its second growth curve [9] Valuation and Forecast - The report forecasts EPS for 2024-2026 to be **1.63**, **2.17**, and **2.70 CNY**, with growth rates of **189%**, **33%**, and **25%**, respectively [9] - The company's target price is set at **57.00 CNY**, based on a PE valuation of **42x** for 2024 [26] - The PS valuation method suggests a target price of **47.87 CNY**, with a PS multiple of **3.5x** for 2024 [29]

Investment Rating - Maintain Overweight rating with a target price of 23.8 yuan, corresponding to a 2024 PE of 19x [2] - The target price remains unchanged despite a downward revision in EPS forecasts for 2024-2026 to 1.26/1.40/1.54 yuan from the previous 1.92/2.15/2.39 yuan [2] Core Views - The company's Q1-Q3 2024 steel structure production increased by 0.58% YoY to 3.25 million tons, with Q3 production up 1.42% YoY to 1.14 million tons [2] - New contract signings for Q1-Q3 2024 decreased by 4.34% YoY to 21.9 billion yuan, with Q3 signings down 3.74% YoY to 7.57 billion yuan [2] - Revenue for Q1-Q3 2024 declined by 6.37% YoY to 15.887 billion yuan, with net profit attributable to shareholders dropping 26.29% YoY to 655 million yuan [2] - The company is expected to reach a production capacity of 5.2 million tons by the end of 2024, with a focus on improving intelligent manufacturing to reduce costs [2] Industry Outlook - According to the "14th Five-Year Plan" for the steel structure industry, China's steel structure usage is expected to reach 140 million tons by 2025 and 200 million tons by 2035, accounting for 15% and 25% of crude steel production, respectively [2] - The National People's Congress approved a 6 trillion yuan debt limit to replace local government implicit debt, with 2 trillion yuan allocated annually from 2024 to 2026, which is expected to benefit the industry [2] Financial Summary - Revenue for 2024E is projected at 21.927 billion yuan, a 6.8% decline YoY, with net profit attributable to shareholders expected to drop 26.3% YoY to 869 million yuan [3] - EPS for 2024E is forecasted at 1.26 yuan, down from 1.71 yuan in 2023A [3] - ROE for 2024E is expected to be 8.8%, down from 12.8% in 2023A [3] Production and Orders - Steel structure production for Q1-Q3 2024 increased by 0.58% YoY to 3.25 million tons, with Q3 production up 1.42% YoY to 1.14 million tons [2] - New contract signings for Q1-Q3 2024 decreased by 4.34% YoY to 21.9 billion yuan, with Q3 signings down 3.74% YoY to 7.57 billion yuan [2] Valuation and Peers - The company's 2024E PE is 13.10x, compared to peers like Jinggong Steel Structure (11.3x) and Hangxiao Steel Structure (26.9x) [15] - The company's 2024E EPS is 1.26 yuan, higher than peers such as Jinggong Steel Structure (0.27 yuan) and Hangxiao Steel Structure (0.11 yuan) [15]