Group 1: Macro and Strategy - The fixed income investment strategy indicates a continuation of the bull market, emphasizing the importance of performance in identifying opportunities for 2026 convertible bonds [5][12] - The report highlights the strong performance of the AI sector, with significant growth expected in the chip design industry, projected to reach a scale of 835.7 billion yuan in 2025, reflecting a year-on-year growth of 29.4% [14][16] Group 2: Industry and Company Insights - The social services sector saw a decline of 2.03% during the reporting period, with notable performers including Yum China (up 9.53%) and Kede Education (up 9.20%) [6] - The food and beverage sector experienced a cumulative decline of 1.52%, with leading stocks such as Nanchao Food (up 11.91%) and Yili (up 2.65%) showing resilience [9][10] - The electronic industry remains optimistic, with AI continuing to drive high growth, despite recent market fluctuations [12][13] - The report notes that the white liquor sector is entering a left-side layout phase, with companies like Luzhou Laojiao and Guizhou Moutai recommended for investment [10][11] Group 3: Investment Recommendations - The report maintains an "outperform the market" rating for the social services sector, suggesting investments in companies like China Duty Free Group and Huazhu Group [8] - For the food and beverage sector, the investment strategy focuses on companies with strong growth potential, such as Guizhou Moutai and Yili, while also recommending a diversified portfolio including emerging brands [11] - In the electronic sector, the report advises maintaining a positive outlook and patience in investment, particularly in domestic supply chains and AI-related companies [13][17]

- The report discusses the market performance on November 25, 2025, highlighting that the market saw a general rise with the CSI 2000 index performing the best among scale indices, and the CSI 500 Growth index performing the best among style indices[2][6] - The report mentions that the communication, media, non-ferrous metals, electronics, and consumer services industries performed well, while the transportation, petrochemical, food and beverage, agriculture, forestry, animal husbandry, and fishery, and national defense industries performed poorly[2][7] - The report provides data on market sentiment, noting that 95 stocks hit the daily limit up and 7 stocks hit the daily limit down, with a sealing rate of 71% and a continuous board rate of 24%[2][13][15] - The report includes information on the flow of market funds, stating that as of November 24, 2025, the balance of margin trading was 24,587 billion yuan, with a financing balance of 24,423 billion yuan and a securities lending balance of 164 billion yuan[2][17][20] - The report discusses the premium and discount rates of ETFs, noting that the G60 Innovation ETF had the highest premium at 2.42%, while the China Life 500 ETF had the highest discount at 0.62% on November 24, 2025[3][22][23] - The report provides data on block trading, stating that the average daily transaction amount of block trading in the past six months was 2 billion yuan, with a discount rate of 10.62% on November 24, 2025[3][24][26] - The report includes information on the annualized discount rates of stock index futures, noting that the annualized discount rates for the main contracts of the SSE 50, CSI 300, CSI 500, and CSI 1000 stock index futures were 4.21%, 5.38%, 10.90%, and 14.93% respectively on November 25, 2025[3][26][29] - The report provides data on institutional attention and the Dragon and Tiger list, noting that the stocks with the most institutional research in the past week were Nine Company-WD, Mailande, Taienkang, Boying Special Welding, Sanyuan Biology, Hongchang Technology, Siling Shares, and Changan Automobile[4][28][30] - The report includes data on the net inflow and outflow of institutional seats and Northbound funds, noting that the top ten stocks with the highest net inflow of institutional seats were Aerospace Development, Guofeng New Materials, Beifang Changlong, Giant Network, Qingshuiyuan, Tianji Shares, Xuanya International, Jiayuan Technology, Worth Buying, and Southern Network Digital[4][34][35]

Investment Rating - The report maintains an "Outperform" rating for the electronic industry, indicating expectations for performance exceeding the market index by over 10% [10]. Core Views - The AI sector continues to show high growth potential, with a focus on self-sufficiency and accelerated progress in domestic capabilities. Despite recent market declines due to external political factors and liquidity concerns, the long-term outlook remains optimistic, particularly for domestic supply chains related to AI and storage [1][4]. - The chip design industry in China is projected to grow significantly, with a forecasted sales figure of 835.7 billion yuan in 2025, representing a year-on-year increase of 29.4% and a compound annual growth rate (CAGR) of 19.6% from 2006 to 2025 [2]. - The release of Google's Gemini3 model is expected to enhance AI applications, benefiting companies involved in AI hardware and software development [3][5]. Summary by Sections Market Trends - The electronic industry experienced a decline of 5.89% recently, with sub-sectors like other electronics dropping by 11.95%. The overall market sentiment is affected by external factors, including fluctuating interest rate expectations and liquidity concerns [1][11]. Key Companies and Recommendations - The report recommends focusing on companies within the domestic AI and storage supply chains, including Industrial Fulian, Huadian Technology, and others. It also highlights the potential of chip design firms such as Langqi Technology and Zhaoyi Innovation, as well as foundries like SMIC and Huahong Semiconductor [2][4][10]. Performance Metrics - Nvidia reported record quarterly revenue of $57.006 billion, with a year-on-year increase of 62.5%. The data center segment alone generated $51.215 billion, reflecting a 66.4% increase year-on-year [4]. - The report lists several companies with favorable earnings forecasts and investment ratings, including SMIC, Aojie Technology, and Lixun Precision, all rated as "Outperform" [10]. Industry Dynamics - The report notes that the demand for power devices in data centers is expected to rise significantly due to increasing energy consumption, with projections indicating a shift from traditional silicon-based devices to silicon carbide and gallium nitride solutions [7]. LCD TV Panel Market - The prices of various sizes of LCD TV panels remained stable in late November, with demand expected to increase as brands prepare for year-end targets [8]. Investment Portfolio - A diversified investment portfolio is suggested, including companies from consumer electronics, semiconductors, equipment and materials, and passive components, all rated as "Outperform" [9].

Investment Rating - The report maintains an "Outperform the Market" rating for the food and beverage sector [4][5][15]. Core Views - The food and beverage sector is expected to benefit from a recovery in consumer spending, particularly in the context of the upcoming 2026 fiscal year, with a focus on health innovation and digital supply chains [3][10]. - The report highlights the differentiation in performance across categories, with beverages outperforming food and alcoholic beverages [2][10]. - Key investment opportunities are identified in premium liquor brands, dairy products, and innovative snack foods, with specific recommendations for companies like Guizhou Moutai, Yili, and Eastroc Beverage [2][3][15]. Summary by Relevant Sections Market Overview - The food and beverage sector saw a cumulative decline of 1.52% this week, with A-shares down 1.36% and H-shares down 3.69% [1]. - Notable performers included Nanchao Food (+11.91%) and Yili (+2.65%) [1]. Alcoholic Beverages - The liquor sector is entering a left-side layout phase, with premium brands expected to gain market share [2][10]. - Recommendations include Luzhou Laojiao, Shanxi Fenjiu, and Guizhou Moutai, with a focus on companies that can leverage pricing power and regional advantages [2][10]. Beer - The beer industry is experiencing healthy inventory levels, with expectations for demand recovery [2][11]. - Yanjing Beer is recommended for its strong growth potential and ongoing internal reforms [2][11]. Dairy Products - The dairy sector is seeing a steady recovery in demand, with Yili recommended for its valuation safety margin [2][13]. - The report anticipates improvements in supply-demand dynamics by 2026 [2][13]. Snacks - The report emphasizes the growth potential of konjac snacks, with leading companies like Weilong and Yanjinpuzi showing strong competitive advantages [2][12]. - The snack industry is shifting towards a category-driven growth model, necessitating strong product differentiation [2][12]. Investment Recommendations - The recommended investment portfolio includes Guizhou Moutai, Babi Food, Eastroc Beverage, Weilong, and Luzhou Laojiao, with an average decline of 4.94% this week [3][15]. - The report suggests that the current pricing environment for Moutai presents a favorable investment opportunity, with expectations for revenue growth in the coming years [15][16].

Investment Rating - The report maintains an "Outperform" rating for the electronic industry, indicating expectations for performance exceeding the market index by over 10% [10]. Core Insights - The AI sector continues to show high growth potential, with a recommendation to remain optimistic and patient in investment strategies, particularly in domestic controllable technology and the computing + storage industry chain [1]. - The chip design industry in China is projected to grow by 29.4% year-on-year in 2025, with a compound annual growth rate (CAGR) of 19.6% from 2006 to 2025, suggesting significant investment opportunities in this sector [2]. - Nvidia's quarterly revenue reached a record high of $57.006 billion, with a year-on-year growth of 62.5%, highlighting the rapid expansion of the AI ecosystem [4]. Summary by Sections Market Trends - The electronic industry experienced a decline of 5.89% recently, with sub-sectors like other electronics dropping by 11.95% [11]. - The report notes that the demand for AI computing and storage remains strong, with supply constraints continuing to impact the market positively [1][7]. Key Companies and Recommendations - Recommended companies include: - Chip design firms: 澜起科技, 兆易创新, 圣邦股份, and others [2]. - AI-related companies: 工业富联, 生益科技, and others [4]. - Semiconductor firms: 中芯国际, 翱捷科技, and others [10]. - The report emphasizes the importance of power devices in data centers, predicting significant growth in demand due to AI power architecture upgrades [7]. Price Trends - LCD TV panel prices remained stable in late November, with demand expected to increase as brands prepare for year-end targets [8]. - The report suggests that the LCD industry's evolution has enhanced the competitiveness of domestic TV brands and ODMs in international markets [8].

Investment Rating - The report maintains an "Outperform the Market" rating for the food and beverage sector [4][5][15]. Core Views - The food and beverage sector is expected to perform well in 2026, driven by recovery in consumer demand and the sector's inherent growth potential [3][10]. - The report highlights the differentiation in performance across categories, with beverages outperforming food and alcoholic beverages [2][10]. - Key investment opportunities are identified in premium liquor brands, dairy products, and innovative snack foods, with a focus on companies that demonstrate strong growth potential and market positioning [2][10][15]. Summary by Sections Market Overview - The food and beverage sector experienced a decline of 1.52% this week, with A-shares down 1.36% and H-shares down 3.69%. Notably, South Qiao Food and Yili Co. showed positive performance with increases of 11.91% and 2.65% respectively [1][3]. Alcoholic Beverages - The liquor sector is entering a left-side layout phase, with premium brands like Luzhou Laojiao, Shanxi Fenjiu, and Guizhou Moutai expected to gain market share. The report suggests a focus on companies with pricing power and regional influence [2][10]. - Moutai's price is currently down 26% year-on-year, indicating a potential for recovery in consumer demand during the upcoming festive season [10][15]. Beer - The beer industry is showing healthy inventory levels, with expectations for demand recovery. The report recommends investing in leading brands like Yanjing Beer, which is expected to see profit growth supported by strong market fundamentals [2][11]. Dairy Products - The dairy sector is experiencing a steady recovery in demand, with leading companies like Yili expected to benefit from improved supply-demand dynamics by 2026 [2][13]. Snacks - The report emphasizes the growth potential in the konjac snack category, recommending companies like Weilong and Yanjinpuzi for their competitive advantages and strong growth trajectories [2][12][16]. Investment Recommendations - The recommended investment portfolio includes Guizhou Moutai, Baba Foods, Dongpeng Beverage, Weilong, and Luzhou Laojiao, reflecting a diversified approach across high-potential segments [3][15].

- The CSI 2000 Index performed well among the scale indices, with the CSI 500 Growth Index performing well among the style indices[1][5] - The defense and military industry, media, computers, machinery, and consumer services sectors performed well, while the petroleum and petrochemical, coal, banking, food and beverage, and non-ferrous metals sectors performed poorly[1][6] - The market sentiment was high, with a sealing rate of 74% and a continuous board rate of 45%, both showing significant improvement from the previous day[1][16] - The financing balance was 24,452 billion yuan, and the securities lending balance was 163 billion yuan, with the financing balance accounting for 2.6% of the circulating market value and the financing transaction accounting for 9.3% of the market transaction amount[1][18][21] - The ETF with the highest premium was the Sci-Tech Innovation and Entrepreneurship 50 ETF, with a premium of 1.80%, while the ETF with the highest discount was the All-Index Cash Flow ETF, with a discount of 1.18%[2][22] - The median annualized discount rates for the main contracts of the SSE 50, CSI 300, CSI 500, and CSI 1000 stock index futures over the past year were 0.48%, 3.41%, 10.86%, and 13.39%, respectively[2][27] - The top ten stocks with net inflows from institutional seats included Dazhong Mining, Delijia, Hainan Haiyao, Worth Buying, Haima Automobile, Beifang Changlong, China Haifang, Tietuo Machinery, Zhongfu Circuit, etc.[3][35] - The top ten stocks with net inflows from Northbound Trading included BlueFocus, Haima Automobile, Huasheng Tiancheng, Worth Buying, Dazhong Mining, Aerospace Changfeng, Aerospace Development, Jiuzhiyang, Inspur Software, Aerospace Huanyu, etc.[3][36]

Macro and Strategy - The macroeconomic review highlights that the U.S. non-farm payrolls increased by 119,000 in September, significantly above the expected 50,000, with the unemployment rate slightly rising to 4.4% [7] Industry and Company - In the restaurant industry, the report recommends leading companies in the hot pot sector, noting that in October 2025, the A-share, H-share, and U.S. stock markets saw significant gains for several chain restaurants, particularly Guoquan, which projected a revenue increase of 13.6%-25.8% for Q3 2025 [3][8] - The report indicates that the overall restaurant revenue in China increased by 3.8% year-on-year in October, with the CPI showing a slight increase due to holiday effects and domestic demand policies [8] - The report tracks the expansion of coffee brands, with notable growth in the coffee sector, particularly for brands like Nuo Wa, which saw significant store openings [9] - For the home appliance industry, October sales were under pressure, with a 15% decline in retail sales of home appliances, and a 13% drop in export value [13][14] - The report notes that in October, air conditioning sales fell by 20.1%, with expectations of continued pressure on production in December [15] - In the automotive sector, XPeng Motors reported a 149% year-on-year increase in sales for Q3 2025, with total revenue reaching 20.4 billion yuan, marking a 102% increase [19][20] - The report highlights that NVIDIA's revenue for Q3 reached $57 billion, a 62% year-on-year increase, driven by strong demand in data centers and gaming [25][26] - NetEase's revenue for Q3 increased by 8% year-on-year, with deferred revenue growing by 25%, indicating strong long-term operational capabilities [28][30] - Huazhu Group's Q3 revenue grew by 17.5% year-on-year, with a focus on expanding its membership base and improving revenue management [31][32] - Ctrip's Q3 revenue increased by 15.5% year-on-year, with a significant contribution from the sale of Makemytrip, indicating strong performance in the travel sector [34]

Group 1 - The core viewpoint of the report emphasizes the investment value of the Bosera CSI 500 Enhanced Strategy ETF, highlighting its ability to generate stable excess returns through quantitative strategies [3][4][52]. - The report notes that the CSI 500 index, which consists of 500 stocks with higher market capitalization after excluding the CSI 300, has a diversified industry distribution and is currently valued below historical averages, making it a representative index for mid-cap growth [2][29][32]. - The report indicates that as of Q3 2025, the total scale of CSI 500 enhanced funds reached 493.46 billion, accounting for over one-fifth of all enhanced funds, showcasing the growing popularity of this investment strategy [2][41]. Group 2 - The Bosera CSI 500 Enhanced Strategy ETF has demonstrated a strong performance since its inception, achieving an annualized excess return of 7.76% with a tracking error of only 3.84%, indicating effective management and risk control [3][54][55]. - The fund's stock selection has contributed significantly to its excess returns, with 89.40% of its holdings deviating by less than 0.5% from the index, reflecting a disciplined approach to portfolio construction [4][58][61]. - The report highlights that the fund has a preference for high-growth and high-profitability stocks, with positive exposures to factors such as growth and long-term momentum [68]. Group 3 - The report outlines the advantages of enhanced ETFs, including higher capital efficiency, greater trading flexibility, lower fee structures, and increased transparency in holdings compared to traditional enhanced funds [12][17][21][23]. - The enhanced ETF market has seen significant growth, with 51 enhanced ETFs in total by October 2025, and the Bosera CSI 500 ETF being a key player in this segment [1][13][40]. - The report also notes that institutional investor participation in the Bosera CSI 500 Enhanced Strategy ETF has increased significantly, reaching 29.80% by mid-2025, indicating growing confidence in the fund [71].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][22]. Core Views - The company plans to issue up to 800 million shares of RMB ordinary shares for listing on the Shenzhen Stock Exchange, which represents 11.52% of the total share capital post-issuance. The funds raised will be used for business development and to supplement working capital [3][4]. - The issuance of A-shares is expected to have a limited dilution effect, and the company has sufficient free cash flow to maintain its dividend per share (DPS) [4][18]. - The garbage incineration industry is entering a mature phase, with a slowdown in capacity release. The national capacity for harmless treatment of municipal solid waste has increased to 1.5226 million tons per day, with incineration accounting for 76.08% [4][12]. - The company’s free cash flow has turned positive, reaching HKD 4.416 billion in 2024, indicating a shift from expansion to refined operations, which may lead to a revaluation in the secondary market [18][25]. Summary by Sections Share Issuance Impact - The proposed issuance of A-shares is expected to increase the total share capital from 6.143 billion to 6.943 billion shares, with a potential upper limit of 7.063 billion shares if the overallotment is exercised. The total dividend amount is projected to increase by 11.3% to HKD 15.97 billion, or by 14.9% to HKD 16.24 billion considering the overallotment [10][4]. Industry Analysis - The number of new garbage incineration projects has decreased significantly, with only 20 new projects in 2024, a reduction of 35 from 2023. The total investment in these projects is estimated at approximately HKD 5.26 billion, down about 80% from HKD 28.77 billion in 2023 [4][15]. Financial Performance - The company’s net profit for 2025 is projected to be HKD 3.532 billion, with a growth rate of 4.6% for the following years. The current price-to-earnings ratio (PE) is estimated at 8.7x for 2025, indicating potential for valuation recovery [22][25]. - The company has maintained a consistent dividend policy, with a projected DPS of HKD 0.23 for 2025, reflecting a commitment to returning value to shareholders [25][22]. Valuation Comparison - The current PE ratio of the company’s H-shares is 9.8x, significantly lower than the average issuance PE of over 20x for A-share listed garbage incineration companies, suggesting room for valuation improvement [18][22].