Investment Rating - The report maintains a "Recommended" investment rating for the mechanical industry [6]. Core Insights - The low-altitude economy is receiving increased policy support, which is expected to drive growth in the sector. The government is focusing on developing new industries, models, and scenarios tailored to local conditions [3][24]. - The engineering machinery sector is projected to continue its steady growth, with strong competitive advantages for domestic leading enterprises. In June 2025, sales of various forklifts reached 137,570 units, a year-on-year increase of 23.1%, with domestic sales up 27.3% [3][4]. Weekly Market Review - From July 13 to July 18, 2025, the Shanghai Composite Index rose by 0.69%, the Shenzhen Component Index by 2.04%, and the ChiNext Index by 3.17%. The Shenwan Mechanical Equipment Index increased by 2.91%, outperforming the CSI 300 Index by 1.82 percentage points, ranking 4th among 31 Shenwan primary industries [2][11]. - Among sub-industries, Shenwan General Equipment, Specialized Equipment, Rail Transit Equipment II, Engineering Machinery, and Automation Equipment saw increases of 3.60%, 2.55%, 2.48%, 1.95%, and 3.23% respectively [2][14]. Key Sector Tracking - The low-altitude economy sector is being bolstered by a large-scale vocational skills enhancement training initiative, aimed at providing talent support for the healthy development of the industry [3][25]. - The mechanical equipment sector remains strong, with domestic leading companies maintaining competitive advantages in both supply and demand. The sales of forklifts in the first half of 2025 totaled 739,334 units, a year-on-year increase of 11.7% [3][4]. Investment Recommendations - For the low-altitude economy, recommended companies include Deep City Transportation, Sujiao Science and Technology, Huasheng Group, and Nairui Radar. In the complete machine sector, focus on Wanfu Aowei, Yihang Intelligent, Zongheng Co., and Green Energy Huichong. Key component manufacturers include Zongshen Power, Wolong Electric Drive, Yingliu Co., and Yingboer [4]. - In the mechanical equipment sector, recommended companies include Juxing Technology, Quanfeng Holdings, and Jiuhua Company for the export chain. For engineering machinery, focus on Sany Heavy Industry, XCMG, and Anhui Heli. In the industrial mother machine sector, recommended companies are Huazhong CNC, Kede CNC, and Hengli Hydraulic [4].

Investment Rating - The industry maintains a "Recommended" rating, with a focus on new consumption sectors such as beauty care, IP derivatives, and gold jewelry [5][35]. Core Insights - The total retail sales of consumer goods in China for the first half of 2025 reached 24.55 trillion yuan, showing a year-on-year increase of 5%. In June, the retail sales totaled 4.23 trillion yuan, growing by 4.8% year-on-year, which was below the expected 8.4% due to the timing of the Dragon Boat Festival and the pre-release of demand during the 618 shopping festival [3][23]. - The beauty care sector is highlighted with significant developments, including the strategic expansion of Ai Er Bo Shi in Southeast Asia and the announcement of a new CEO at Kenvue [27][3]. - Bubble Mart is expected to see a revenue increase of no less than 200% and a profit increase of no less than 350% for the first half of 2025 [32][5]. Summary by Sections Market Performance - From July 14 to July 18, 2025, the trade retail, social services, and beauty care sectors experienced changes of +0.23%, +1.05%, and -0.14% respectively, ranking 18th, 13th, and 22nd among 31 primary industries [14][16]. Key Industry Data and News - In June 2025, the retail sales of consumer goods grew by 4.8%, with a total of 21.8 trillion yuan in goods retail sales for the first half of the year, reflecting a 5.1% year-on-year increase [23][22]. - The airline industry saw an increase in passenger flights, with nearly 118,000 flights executed nationwide in the 28th week of 2025, marking a 3.2% year-on-year rise [4][27]. Company Announcements - Bubble Mart's half-year performance forecast indicates a revenue growth of at least 200% and a profit increase of at least 350% [32][5]. - Other companies like Rongzi Co. and Longzi Co. also reported significant profit forecasts, with Rongzi expecting a profit increase of 31.74% to 55.69% [34][33]. Investment Recommendations - The report recommends focusing on companies such as Shangmei Co., Juzi Bio, Marumi Bio, and others within the beauty care and new consumption sectors [5][35].

Market Performance - On July 21, 2025, the Shanghai Composite Index rose by 0.72%, closing at 3,559.79, marking a three-and-a-half-year high with a total market turnover of 16,996.87 billion yuan, an increase of 1,288.31 billion yuan from the previous trading day[2][15] - The Shenzhen Component Index increased by 0.86% to 11,007.49, while the ChiNext Index rose by 0.87% to 2,296.88[2][15] - A total of 4,056 stocks rose, while 1,310 stocks fell across the market[2][15] Sector Performance - The best-performing sectors included building materials (up 5.64%), construction (up 3.73%), and steel (up 3.46%)[2][21] - The banking sector saw a decline of 0.77%, while comprehensive finance and computing sectors fell by 0.39% and 0.37%, respectively[2][21] Capital Flow - On July 21, 2025, the net outflow of main funds was 93.04 billion yuan, with large orders seeing a net outflow of 116.24 billion yuan, while small orders had a net inflow of 168.90 billion yuan[3][25] - Southbound funds recorded a net inflow of 70.52 billion HKD, with the Shanghai-Hong Kong Stock Connect contributing 39.00 billion HKD and the Shenzhen-Hong Kong Stock Connect contributing 31.52 billion HKD[4][27] ETF Trading - Major ETFs such as the Huaxia SSE 50 ETF and the Huatai-PB CSI 300 ETF saw changes in trading volume, with the former at 16.57 billion yuan (down 2.91 billion yuan) and the latter at 31.84 billion yuan (up 2.43 billion yuan)[3][30] - The net inflow for the CSI 1000 ETF was 2.65 billion yuan on July 18, indicating a strong interest in this fund[3][30] Global Market Overview - On July 21, 2025, the Hang Seng Index rose by 0.68% to 24,994.14, while the Australian S&P 200 Index fell by 1.02% to 8,668.20[4][34] - The U.S. stock market showed mixed results, with the Dow Jones Industrial Average down 0.32% and the Nasdaq Composite up 0.05%[5][34]

Investment Rating - The report maintains a "Hold" rating for the non-ferrous metals industry [7] Core Insights - The non-ferrous metals industry index increased by 2.85% over the past two weeks, outperforming the CSI 300 index and ranking 14th among 31 first-level industries [2][14] - The report highlights a broad increase in metal prices, driven by various factors including global geopolitical tensions and supply shortages [5] - Key investment opportunities are identified in industrial metals and rare earths [5] Summary by Sections Market Review - The non-ferrous metals industry index rose by 2.85% from July 7 to July 18, 2025, with small metals, new metal materials, and energy metals leading the gains at 13.93%, 7.71%, and 5.01% respectively [2][14] - Precious metals and industrial metals showed minimal changes, with precious metals up by 0.15% and industrial metals down by 0.56% [14] Metal Prices - As of July 18, 2025, COMEX gold closed at $3,355.50 per ounce, up 0.58% over two weeks; COMEX silver closed at $38.43 per ounce, up 3.74% [3][21] - Black tungsten concentrate (≥65%) price rose to 180,000 CNY per ton, up 4.05% [21] - The rare earth price index reported at 192.24, up 5.17% over two weeks [3][47] Important Events - The Ministry of Industry and Information Technology announced ongoing efforts to implement high-quality development plans for the copper, aluminum, and gold industries, focusing on stabilizing growth and promoting transformation [4][63] Investment Recommendations - The report suggests focusing on industrial metals and rare earth investment opportunities due to rising prices and market demand [5]

Market Overview - Global markets showed a trend of "growth assets leading, risk aversion cooling," with the Hang Seng Tech Index rising by 5.53% due to easing US-China tariff negotiations and improved internet profit expectations[4] - The Nasdaq continued to reach new highs, increasing by 1.51%, driven by better-than-expected retail data and the recovery of AI chip supplies[4] - A-share market favored growth style, with total A-share trading volume increasing by 3.4% week-on-week, but valuation pressures are rising as the CSI 800 PE ratio is at the 33rd percentile of the past three years[4] Fixed Income Market - Short-term bonds outperformed long-term bonds, with 2-year treasury futures up by 0.02% while 30-year bonds fell by 0.04%, indicating a flattening yield curve[4] - The AAA credit spread has compressed to the 9th percentile of the past three years, suggesting a preference for high-grade credit bonds[4] Commodity Market - Agricultural products surged due to weather-related supply concerns, with US corn up by 3.82% and soybean meal up by 2.86%[4] - However, European shipping rates plummeted by 20.01% due to weak demand, reflecting significant divergence in the commodity market[4] Derivatives Strategy - Implied volatility for stock indices hit a three-month low, with the Shanghai 50 ETF IV dropping by 8.04%, indicating a shift from risk-averse to risk-seeking assets[4] - The current low volatility environment poses risks for option sellers, necessitating caution against potential Gamma risks[4] Asset Allocation Recommendations - Focus on short-duration high-grade credit bonds to mitigate long-term interest rate risks in the bond market[5] - Consider US equity opportunities as economic data shows marginal improvement and tariff disruptions ease[5] - Maintain a cautious stance on A-shares due to potential volatility from lowered profit expectations and policy catalysts[5]

Investment Rating - The report maintains a "Recommended" investment rating for the semiconductor and semiconductor equipment industry [5] Core Insights - The approval of NVIDIA's H20 and AMD's MI308 chips for export to China is expected to significantly boost demand for AI chips in China, leading to positive performance expectations across the related industry chain [1][3] - TSMC has raised its revenue growth guidance for 2025 to a range of 30%, indicating strong demand in the semiconductor sector [3][31] - The overseas AI chip index rose by 4.3% this week, driven by the export approvals, while the domestic AI chip index increased by 1.7% [1][10] - The smartphone market saw a 1% year-on-year decline in Q2 2025, marking the first drop after six consecutive quarters of growth, with Samsung maintaining the largest market share at 19% [2][24] Market Indices Summary - The overseas AI chip index increased by 4.3% this week, with notable stock price increases for AMD (over 7%), NVIDIA, and TSMC (over 4%) [1][10] - The domestic A-share chip index rose by 1.7%, with significant gains from Cambrian (over 5%) and others [10] - The NVIDIA mapping index surged by 6.7%, reflecting increased demand expectations for AI chips [10][13] - The server ODM index grew by 2.2%, driven by the anticipated demand for servers due to the chip exports [10][15] - The domestic storage chip index fell by 0.4%, with mixed performance among various companies [10][19] - The power semiconductor index remained stable with a 1.0% increase [10][16] Industry Data Summary - In Q2 2025, global smartphone shipments decreased by 1%, with Samsung leading the market at 19% share, followed by Apple at 16% and Xiaomi at 15% [2][24] - The share of smartphones equipped with AMOLED displays rose to 63%, while LCD displays dropped to 37% [2][27] Major Events Summary - NVIDIA and AMD received U.S. government approval to sell H20 and MI308 chips in China, respectively [3][30] - Apple is set to launch a foldable iPhone using Samsung's OLED panels, with a projected price exceeding 15,000 RMB [3][30] - Several companies, including SiTew and TSMC, reported significant revenue growth forecasts for 2025 [3][31][32]

Investment Rating - The report maintains a "Recommended" investment rating for the food and beverage industry [4] Core Insights - The food and beverage sector in A-shares has shown a mixed performance, with a 1.53% increase over the past two weeks, underperforming the Shanghai Composite Index by 0.26 percentage points and the Shenzhen Component Index by 2.33 percentage points [12] - The retail sales growth in June was 4.8%, indicating a slowdown compared to May, with total retail sales amounting to 42,287 billion yuan [55] - The report highlights the resilience of high-end liquor companies and the growing consumption trends in various segments such as beer and snacks [57] Summary by Sections 1. Market Review - A-shares in the food and beverage industry increased by 1.53% in the last two weeks, lagging behind major indices [12] - Within the sector, liquor (+2.30%), meat products (+1.27%), and dairy (+0.86%) performed well, while soft drinks (-2.11%), snacks (-1.86%), and baked goods (-1.33%) saw declines [12] - Notable stock performances included Huangshi Group (+18.11%), Huang Shang Huang (+13.54%), and Liangpinpuzi (+12.95%) [12] 2. Key Data Tracking - The average price of fresh milk in major production areas was 3.04 yuan/kg, down 6.2% year-on-year [37] - The national market price for pork was 25.46 yuan/kg, down 11.9% year-on-year [40] - The price of PET for packaging was 6,100 yuan/ton, down 16.4% year-on-year [40] 3. Key Events Tracking - June retail sales data showed a total of 245,458 billion yuan for the first half of the year, with a year-on-year growth of 5.0% [55] - PepsiCo reported a net sales revenue of 22.726 billion USD for Q2 2025, with stable growth in its Chinese market share [55] - The World Health Organization initiated a health tax proposal aimed at increasing the prices of tobacco, alcohol, and sugary drinks by at least 50% by 2035 [55] 4. Important Company Announcements - Liangpinpuzi's actual controller is set to change to the Wuhan State-owned Assets Supervision and Administration Commission [56] - Yanjing Beer expects a net profit of 1.062 to 1.137 billion yuan for the first half of 2025, a year-on-year increase of 40% to 50% [56] 5. Investment Recommendations - Focus on high-end liquor companies with strong brand and channel capabilities, such as Kweichow Moutai and Wuliangye [57] - The report suggests monitoring companies in the beer and snack segments, as well as dairy firms like Yili and New Dairy [57]

Investment Rating - The report gives a "Recommended" rating for the telecommunications industry, considering the sustained high prosperity of the sector driven by AI, 5.5G, and satellite communications [2][5]. Core Insights - The overall market performance for the week (July 14-20, 2025) saw the Shanghai Composite Index rise by 0.69%, the Shenzhen Component Index by 2.04%, and the ChiNext Index by 3.17%. The telecommunications sector, represented by the Shenwan Communications Index, increased by 7.56% [2][10]. - Within the telecommunications sub-sectors, the highest increase was seen in communication network equipment and devices, which rose by 15.82%. Conversely, the communication engineering and services sector experienced a slight decline of -0.14% [12][13]. - Notable individual stock performances included Xinyi Technology with a rise of 39.01%, followed by Zhongji Xuchuang at 24.33% and Shijia Guangzi at 22.43% [14][15]. Summary by Sections Market Overview - The telecommunications sector is experiencing a high growth phase, with significant contributions from AI and advanced communication technologies [2][3]. - The report highlights the strong performance of the telecommunications index and individual stocks, indicating a positive market sentiment [10][12]. Sub-sector Performance - The communication network equipment and devices sub-sector showed the most significant growth, while communication engineering and services faced minor setbacks [12][13]. - The report emphasizes the importance of the computing power supply chain, particularly in hardware segments benefiting from domestic and international demand [3]. Company Announcements - Key announcements from companies in the telecommunications sector include significant earnings forecasts, with some companies like Xinyi Technology expecting a substantial increase in net profit by 327.68% to 385.47% [21][22]. - Other companies, such as Yiwai Communication, are forecasting a decline in earnings due to global economic slowdowns and trade tensions [21][22]. Future Outlook - The report suggests that the demand for computing power will continue to expand, driven by advancements in AI and related technologies, which will positively impact hardware sales and services [4][3]. - The anticipated recovery of H20 GPU sales in the Chinese market is expected to alleviate supply bottlenecks and accelerate data center construction [3][19].

Investment Rating - The report maintains a "Recommended" investment rating for the healthcare sector [7]. Core Insights - The pharmaceutical sector outperformed the CSI 300 index, with the Shenwan Pharmaceutical and Biological Index rising by 4.00% from July 14 to July 18, 2025, surpassing the CSI 300 by 2.91 percentage points [2][12]. - Year-to-date, the Shenwan Pharmaceutical and Biological Index has increased by 16.59%, outperforming the CSI 300 by 13.45 percentage points, ranking third among 31 Shenwan primary industry indices [2][13]. - As of July 18, 2025, the valuation of the pharmaceutical sector stands at 29.88 times (TTM overall method, excluding negative values), with a premium of 153.54% compared to the CSI 300 [2][17]. Summary by Sections 1. Weekly Market Review - The pharmaceutical sector's performance from July 14 to July 18, 2025, showed a 4.00% increase, ranking second among 31 industry indices [2][12]. - The sector's valuation as of July 18, 2025, is 29.88 times, with a significant premium over the CSI 300 [2][17]. - Top-performing stocks included Borui Pharmaceutical (+42.35%), Lisheng Pharmaceutical (+41.68%), and Nanxin Pharmaceutical (+34.95%) [3][18]. 2. Important Events - On July 15, the National Healthcare Security Administration held a press conference to discuss the optimization of the national drug procurement policy, announcing the selection of 55 drug varieties for the 11th batch of national procurement [4][21]. 3. Industry Perspective - The 11th batch of national procurement will implement a "low-price declaration" system, requiring the lowest-priced selected enterprises to justify their pricing, ensuring it does not fall below cost [5][22]. - The procurement will continue to exclude new drugs and focus on ensuring quality, with enhanced scrutiny on low-priced selected drugs [5][22]. - The overall procurement policy is expected to gradually improve, balancing price reductions with the need to ensure enterprise profits and public healthcare needs [5][22]. - The report expresses optimism about innovative drugs, overseas expansion, and sectors benefiting from procurement reforms, particularly in insulin and orthopedic segments [5][23].

Investment Rating - The report maintains a "Recommended" investment rating for the humanoid robot industry [7]. Core Insights - The humanoid robot concept index increased by 4.57% from July 13 to July 18, 2025, outperforming the CSI 300 index by 3.48 percentage points. Year-to-date, the humanoid robot index has risen by 44.57%, surpassing the CSI 300 index by 38.34 percentage points [2][13]. - Key companies in the humanoid robot sector are receiving significant capital support, with notable investments and IPO preparations indicating a robust growth trajectory [4][5]. Weekly Market Review - From July 13 to July 18, 2025, the humanoid robot concept index rose by 4.57%, while the year-to-date performance shows a 44.57% increase compared to the CSI 300 index [2][13]. - Among A-share humanoid robot stocks, Zhongdali De had the highest weekly increase at +30.62%, while Haosen Intelligent saw the largest decline at -11.73% [19]. Weekly Hotspot Review Policy Developments - Guangdong Province is accelerating the development of the embodied robot industry, focusing on future industries such as biomanufacturing and quantum technology [3][22]. - Shanghai's government has approved the "Moli Ju Shen" action plan to establish a highland for embodied intelligence industry development [3][22]. Product and Technology Iteration - UBTECH's Walker S2 has introduced a world-first autonomous battery swap system, enabling 24/7 operation [3][24]. - The Beijing Humanoid Robot Innovation Center launched the first one-stop public service platform for embodied intelligence in China [3][24]. Investment and Financing - Zhiyuan Robotics completed a strategic financing round supported by Charoen Pokphand Group, enhancing its market reach [4][25]. - Blue Dot Touch Technology announced nearly 100 million RMB in Series B financing to accelerate humanoid robot industrialization [4][25]. - Yushu Technology has initiated IPO counseling, with its controlling shareholder holding approximately 35% of the company [5][27]. Key Company Announcements - New Era plans to launch a general controller for embodied intelligence in 2025 and collaborate with Haier on smart manufacturing solutions [4][28]. - Bertley intends to invest 198 million RMB in a partnership focused on high-growth unlisted companies in the humanoid robot sector [4][29]. - Chipsea Technology is exploring applications in robotic electronic skin and six-dimensional force sensors [4][29].