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].

| --- | --- | |------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Industry Investment Rating - The report highlights the positive impact of AI on the smartphone industry, indicating a favorable outlook for the sector [2][8] Core Viewpoints - AI technology is driving the smartphone industry into a new growth phase, with global smartphone shipments increasing by 12% YoY in Q2 2024, reaching 288 million units [2][16] - The penetration rate of AI-enabled smartphones is expected to reach 16% in 2024 and 54% by 2028, signaling a significant shift in the industry [2][16] - The success of AI smartphones hinges on their ability to deliver enhanced user experiences, including natural interactions, powerful image and video processing, and personalized services [3][17][18] Key Summaries by Section AI Technology Driving Industry Growth - AI smartphones are defined as devices capable of generating original content or performing context-aware tasks using large pre-trained generative AI models [2][8] - Major smartphone manufacturers, including Apple, Samsung, Xiaomi, and others, are actively investing in AI technology, with a focus on both high-end and mid-to-low-end markets [12][13] Global Smartphone Market Recovery - The global smartphone market saw a 10% YoY growth in Q1 2024, reaching 296.2 million units, marking the first double-digit growth in ten quarters [16] - AI technology is revitalizing the industry by stimulating consumer demand through innovative features and improved user experiences [16] Enhanced User Experience - AI smartphones offer multimodal interactions, enabling deeper and more natural communication with users, as well as advanced image and video processing capabilities [18][22][23] - Features like real-time translation, intelligent note-taking, and personalized services are becoming key differentiators for AI smartphones [26][27][29] Market Share and Competitiveness - The market share of GenAI-enabled smartphones surged from 1.3% in Q4 2023 to 6% in Q1 2024, with high-end models (>$600) accounting for over 70% of sales [31][32] - Samsung leads the GenAI smartphone market with a 58% share, while Chinese manufacturers are also making significant strides [31][32] Technological and Hardware Advancements - AI smartphones require advanced hardware, including high-performance processors (e.g., Qualcomm Snapdragon 8 Gen3), large memory (12GB+), and sophisticated imaging systems [38][39] - Edge computing and on-device AI models are becoming essential for improving user privacy and reducing service costs for manufacturers [36][37] Long-Term Industry Outlook - The continuous evolution of AI models and hardware is expected to drive long-term growth in the smartphone industry, with AI-enabled devices replacing traditional smartphones [40][41] - Leading manufacturers like Apple and Xiaomi, along with key hardware suppliers such as Qualcomm and BYD Electronics, are well-positioned to maintain market dominance [41]

| --- | --- | |--------------------|---------------------------------------------------------------------| | 周报 | 关 PCE 同比特定下降，关注 HPC 备经常长 | | 半导体行业（关股） | | | | 行航网威 | | | 上周（2024 年 07 月 22 日-2024 年 07 月 26 日），美股市场持续调整。 | | | 道指、标章 500、纳格周涨幅分别为 0.43%、-1.89%、-3.61%，贯域ギ | | | | 指數（VIX）周涨幅为 9.93%：美国教户投资人希空指數(AAII Bearish) 为 31.7%，较上个报寺势上升 8.3 个百分点：NAAIM 经理人持仓指载 为 76.70，上个报告剪为 87.94：CNN Business 5 日予均 Put/Call 比率 为 0.74，上个报告胡为 0.68。 成美/李件分析 ♦ 合积七(TSM.N):先进创程占比增长，关注 AI 芯片查求上演 新闻频卖 ♦羊采有舵手枕在中国市场面临淡烈的尤单 ♦美国 6 月个人消费 ...