Investment Rating - The report indicates a focus on the photovoltaic industry, particularly highlighting the need to closely monitor industry leaders as potential investment opportunities [3]. Core Insights - The reduction in export tax rebates from 13% to 9% for certain products, including finished oil, photovoltaic products, batteries, and some non-metal mineral products, will increase cost pressures on companies, particularly in the photovoltaic sector where overall losses are prevalent [1]. - The adjustment in tax policy is expected to accelerate the elimination of excess capacity in the photovoltaic industry, favoring companies with technological and cost advantages while pushing out less competitive firms [2]. - The current state of the photovoltaic industry shows that prices and profitability are at a low point, but there is optimism that demand will gradually improve, leading to a recovery in prices and profitability for leading companies [3]. Summary by Sections - **Export Tax Adjustment**: The reduction in export tax rates will increase operational costs for companies, particularly affecting cash flow in the photovoltaic industry [1]. - **Industry Dynamics**: The report emphasizes a shift towards a more competitive landscape where only the most innovative and cost-effective companies will thrive, leading to a concentration of market share among top players [2]. - **Market Outlook**: There is a call to monitor signals indicating a potential turnaround in the industry cycle, with expectations that leading firms will soon return to profitability as market conditions improve [3]. - **Recommended Companies**: The report recommends specific companies within the silicon material and photovoltaic glass sectors, including Xinte Energy (1799 HK), GCL-Poly Energy (3800 HK), Flat Glass Group (6865 HK), and Xinyi Solar (0968 HK) as key investment opportunities [5].

Investment Rating - The report suggests a cautious outlook for the Hong Kong stock market, indicating it is currently in a volatile phase with potential for structural opportunities in high-dividend, policy-supported, and leading internet sectors [4][39]. Core Insights - The Hong Kong stock market is under pressure from disappointing fundamental data and reduced risk appetite, but policy measures and special bond issuances may support a mild economic recovery [4][39]. - The report highlights that the software and services sector's PE-TTM is at 23.16x, which is in the 34.7% percentile over the past year, while the PS-TTM is at 3.3x, in the 82.0% percentile [12][39]. - The Nasdaq 100 index's dynamic PE valuation is approximately 34.7x, placing it at a historical low [14][39]. Market Performance - The Hang Seng Index fell by 6.28% and the Hang Seng Tech Index by 7.29% during the week of November 11-15, 2024 [1][7]. - The software sector's performance was relatively better, with a decline of 3.67%, compared to the media sector's decline of 3.90% [8][12]. - The report notes that the US stock market is experiencing high valuation levels, raising concerns about future earnings growth sustaining current valuations [4][39]. Industry Developments - Kimi's monthly user base reached 36 million, indicating strong user engagement [30]. - ByteDance's SeedEdit image editing model has entered testing, showcasing advancements in AI capabilities [31]. - Tencent launched its AI knowledge base product, IMA.COPILOT, for Windows, enhancing its service offerings [32]. - Taobao's Double 11 event saw significant growth, with over 119 live streaming rooms achieving over 100 million in sales [33][36]. - JD.com reported over 20% year-on-year growth in shopping users during the Double 11 event [36]. Financial Performance - NetEase's Q3 financial report showed a net income of RMB 26.2 billion, with gaming revenue declining by 4.2% year-on-year, despite strong contributions from Blizzard titles [37].

Investment Rating - The report recommends a focus on the wind power industry, highlighting the recovery in industry prosperity and suggesting key operators for investment [4]. Core Insights - Wind power generation growth has accelerated, indicating a rebound in industry conditions, supported by recent government policies aimed at promoting renewable energy consumption and achieving green electricity environmental value [3][4]. - In October, the total electricity generation from industrial enterprises was 731 billion kWh, a year-on-year increase of 2.1%, with a cumulative generation of 7802.7 billion kWh from January to October, reflecting a 5.2% year-on-year growth [1][2]. Summary by Sections Electricity Production - In October, the growth rates for various electricity generation types were as follows: thermal power increased by 1.8%, nuclear power by 2.2%, solar power by 12.6%, while hydropower saw a decline of 14.9% and wind power surged by 34.0% [2][3]. Wind Power Market - From January to October 2024, 12 wind turbine manufacturers in China secured a total bidding capacity of 126.20 GW, with Goldwind Technology leading at 24.4 GW [3]. - The report emphasizes the importance of monitoring the wind power sector's recovery and suggests that the improved bidding volumes and generation figures are positive indicators for equipment manufacturers and operators [3][4].

Investment Rating - The report suggests a positive outlook for the internet and entertainment sectors, indicating potential investment opportunities amidst a recovering global economy and declining financing costs [3][25]. Core Insights - The report highlights that the internet sector should focus on opportunities related to gaming expansion, AI application deployment, and the recovery of cloud service demand [3][25]. - The report notes that the software and services sector's PE-TTM is at 28.6x, which is at the 56.3% percentile of the past year, while the PS-TTM is at 3.4x, at the 91.8% percentile [7][21]. - The report emphasizes that the Chinese IT service market grew by 4.1% year-on-year in the first half of 2024, reaching approximately 162.87 billion yuan [22][23]. Market Performance - The Hong Kong stock market experienced a decline, with the Hang Seng Index dropping by 0.41% and the Hang Seng Tech Index by 1.19% during the week of October 28 to November 1, 2024 [1][4]. - The report indicates that the U.S. stock market also saw declines, with the Dow Jones, S&P 500, and Nasdaq dropping by 0.15%, 1.37%, and 1.50% respectively [1][4]. - The report mentions that the e-commerce sector is witnessing growth, with the total sales for the Double 11 shopping festival reaching 845 billion yuan as of October 30, 2024 [23][24]. Industry Developments - The report notes the official release of "Pure Blood Harmony," with 15,000 native applications launched [21]. - It highlights the establishment of China's first financial industry large model and data element collaborative innovation center [21]. - The report mentions that 113 domestic online games were approved in October, indicating a vibrant gaming industry [24].

Key Points - **Industry/Company**: Jilin Aodong, a listed pharmaceutical company with a long history - **Business Structure**: Divided into traditional Chinese medicine and chemical drugs [1] Additional Information - **Analyst**: Ma Yuntao, a pharmaceutical industry analyst at International Securities - **Timeframe**: October [1]

Investment Rating - The report maintains a "Buy" rating for Longyuan Power (0916.HK) with a target price of HKD 10, representing a potential upside of 46% from the current price of HKD 6.84 [2][7]. Core Insights - The recent policy from the China Securities Regulatory Commission (CSRC) regarding mergers and acquisitions is expected to accelerate the restructuring of state-owned power enterprises, which will benefit Longyuan Power as it is positioned to receive quality clean energy assets from its parent company, State Energy Investment Group [5][9]. - The negative factors affecting green electricity have been fully reflected in the market, and the recent recovery in market sentiment is likely to support a valuation rebound for the green electricity sector, particularly for state-owned companies like Longyuan Power that have significant price discounts [6][10]. - The financial projections indicate a recovery in revenue and net profit, with expected revenues of RMB 39,286 million in 2024 and RMB 43,768 million in 2025, alongside a net profit of RMB 6,019 million in 2024 and RMB 7,212 million in 2025 [8][14]. Summary by Sections Investment Rating - Buy rating with a target price of HKD 10, indicating a 46% upside potential from the current price [2][7]. Financial Performance - Revenue projections for 2024 and 2025 are RMB 39,286 million and RMB 43,768 million, respectively, with a net profit of RMB 6,019 million in 2024 and RMB 7,212 million in 2025 [8][14]. - The report anticipates a recovery in net profit growth, with a projected increase of 19.8% in 2025 [8][14]. Market Context - The CSRC's new policies are expected to enhance the efficiency of mergers and acquisitions in the power sector, facilitating Longyuan Power's strategic asset injections [5][9]. - The green electricity sector is showing signs of valuation recovery due to improved market conditions and sentiment, which is particularly favorable for Longyuan Power given its current valuation [6][10].

Investment Rating - The report indicates that the investment rating for the photovoltaic industry is currently at a bottom level, with expectations for recovery in profitability for leading companies as terminal demand gradually releases [4]. Core Insights - The photovoltaic industry is experiencing weak overall terminal demand both domestically and for exports, leading to cautious production plans among manufacturers to avoid inventory accumulation [2] - There is a clear competitive landscape in the silicon material and photovoltaic glass sectors, with leading companies showing significant advantages in terms of cost, profitability, financial status, and cash flow [3] - The report emphasizes that leading companies are expected to remain strong regardless of the industry's low point or subsequent price rebounds [3] Summary by Sections Industry Demand and Supply - The report notes that the supply of silicon materials has become more abundant following maintenance, while the operating rate of silicon wafers has decreased, leading to a mismatch in supply and demand [2] - Manufacturers are reducing prices to compete for orders due to limited demand, resulting in increased inventory levels and pressure on pricing [2] Competitive Landscape - The competitive dynamics in the silicon material and photovoltaic glass sectors are well-defined, with top companies poised to outperform others due to their comprehensive competitive advantages [3] - The report highlights that only leading companies in the photovoltaic glass sector can achieve positive profitability at current price levels [3] Investment Recommendations - The report recommends focusing on leading companies within the photovoltaic industry, specifically highlighting New Special Energy (1799 HK) and GCL-Poly Energy (3800 HK) in the silicon material sector, as well as Flat Glass Group (6865 HK) and Xinyi Solar (0968 HK) in the photovoltaic glass sector [4]

Investment Rating - The report suggests a cautious outlook on the internet sector, indicating potential opportunities as the Federal Reserve is expected to ease monetary policy, which may benefit the sector [2][19]. Core Views - The report highlights that the Hong Kong stock market continues to underperform compared to global markets, primarily due to weak domestic demand indicators [2]. - The internet sector is expected to show resilience and potential recovery as companies focus on core businesses and cost-cutting measures to maintain profit margins [19]. - The report emphasizes the importance of AI technology in enhancing competitiveness and profitability for internet companies [19]. Summary by Sections Market Performance - The Hang Seng Index fell by 0.43% and the Hang Seng Tech Index by 0.23% during the week of September 9-13, 2024, indicating a continued weak performance compared to global markets [2]. - The US stock market saw significant gains, with the Dow Jones, S&P 500, and Nasdaq increasing by 2.60%, 4.02%, and 5.95% respectively, driven by expectations of an interest rate cut by the Federal Reserve [2]. Sector Analysis - The software and services sector's PE-TTM stands at 25.6x, above the Hang Seng Tech Index's 20.7x, indicating a relatively high valuation [5]. - The report notes that the advertising market is showing signs of mild recovery, with a 2.8% year-on-year increase in the first seven months of 2024 [13]. Company Performance - Key companies in the software sector, such as Meituan and Kingsoft, showed significant gains, while others like Tencent Music and iQIYI experienced declines [7][9]. - In the US market, major tech companies like Amazon and Microsoft saw substantial weekly increases of 8.8% and 7.2% respectively [9]. Industry Data - The film industry reported a box office of 2.80 billion yuan for the week of September 9-15, 2024, with the total box office for the year reaching 34 billion yuan [10]. - The report indicates that the advertising market is gradually recovering, with specific channels like elevator advertising showing notable growth [13]. Investment Recommendations - The report recommends focusing on stable dividend-paying internet companies in Hong Kong and those involved in overseas expansion, such as Reading Group and Meituan [19]. - It also suggests looking at US stocks related to consumer recovery, including DoorDash and Spotify [19].

| --- | --- | |--------------------------|---------------------------------------------------------------------| | | | | | | | | | | 半导体行业（美股） | 2024-09-16 星期一 | | | 行情回顾 | | | | | | | | | | | | 指数（VIX）周涨幅为 -14.86% ；美国散户投资人看空指数 (AAII Bearish) | | | 指数为 71.93 ，上个报告期为 70.65 。 | | | | | | 新闻摘要 | | | 黄仁勋在高盛 Communacopia Tech 大会的访谈摘要 | | | | | | 苹果发布会要点摘要 | | | | | | 美联储降息概率 | | | | | | 美国 8 月 CPI 数据 | | | | | | 投资建议 | | | | | | | | | | | | | | | | | | | | 研究部 | | | 姓名：徐晨 | | | SFC：BTK332 | | | ...

Investment Rating - The report suggests maintaining attention on the company due to its strategic clarity and solid fundamentals [2]. Core Insights - The company reported a revenue of 5.037 billion RMB for the first half of 2024, a year-on-year decrease of 1.7%. However, gross profit increased by 3.2% to 1.915 billion RMB, while net profit fell by 4.8% to 683 million RMB [1]. - The self-owned brand (APV) business saw significant growth, contributing 1.12 billion RMB in revenue, a year-on-year increase of 71.9%. The European and other markets experienced a rapid rise of 88%, while the US market grew by 20.6% [1]. - The company is focusing on cost management, with distribution and sales, administrative, and R&D expense ratios at 7.4%, 6.7%, and 15.1% respectively, showing changes of +3.3pp, -2.4pp, and +3.1pp year-on-year [1]. - The ODM segment aimed at enterprise clients is in a recovery phase, with reported revenue of 3.92 billion RMB. The European market saw a decline of 16%, while the US market decreased by 9.8%. In contrast, the Chinese market experienced a growth of 41.4% [1]. - The company continues to innovate, launching the MOYAL brand and developing products for asthma and COPD drug delivery systems [2].