Report Industry Investment Rating No industry investment rating information is provided in the report. Core Viewpoints - In the fourth week of October, the operating rate remained stable, and investment products showed mixed performance. Food prices increased, mainly driven by rising vegetable prices, while pork prices continued to decline. Export freight rates continued to rise, with North American routes showing continuous monthly growth. Port freight volume increased month-on-month and maintained high year-on-year growth since October. The industrial operating rate remained stable, and the Nanhua Industrial Products Index increased month-on-month. In terms of investment, the inventory reduction of rebar accelerated, indicating the impact of the "two 500 billion" tools on physical work volume. In the real estate market, the transactions of new and second-hand houses decreased slightly month-on-month after rising the previous week, but the year-on-year negative growth narrowed, with second-hand houses showing better resilience [4][29]. - For the bond market, a large amount of macro news will be released next week. The impact on bond yields is expected to be controllable, but attention should be paid to the disturbance of the stock-bond seesaw effect on bond market sentiment. Externally, China and the US will hold economic and trade consultations in Malaysia from October 24th to 27th. Domestically, the demand for investment products improved marginally in October, and the influence of new tools on fixed asset investment data is expected to be reflected from October to November. Next week, attention should be paid to the results of the China-US negotiations, the release of the "15th Five-Year Plan" suggestions, and the APEC meeting [4][30]. Summary by Directory Inflation-related: Vegetable Price Increase Widened - Food prices increased, with the average wholesale price of pork in China decreasing by 3.0% week-on-week. The increase in vegetable prices continued to widen, boosting the Agricultural Product Wholesale Price 200 Index and the Vegetable Basket Product Wholesale Price Index by 1.4% and 1.7% week-on-week respectively [8]. Import and Export-related: Export Freight Rates Accelerated - The month-on-month increase in export container shipping prices widened. The CCFI index increased by 2.0% week-on-week, and the SCFI increased by 7.1%. The market sentiment of the China Export Container Transport Market continued to rebound, with stable transport demand and rising freight rates on most routes. In the North American market, the supply-demand fundamentals were stable, and market freight rates continued to rise [9]. - In terms of port freight volume, from October 13th to 19th, the container throughput and cargo throughput of ports increased by 3.6% and 2.5% week-on-week respectively, with year-on-year increases of 9.1% and 1.0% respectively. Since October, the monthly average year-on-year increases have been 8.8% and 2.5%, indicating strong export volume [9]. - The increase in the BDI index narrowed, and the CDFI index decreased. The international dry bulk shipping market was generally stable, with slight increases in freight rates for various ship types [9]. Industry-related: Rebar Inventory Reduction Accelerated - The increase in coal prices continued to widen. Due to the decrease in temperature in the South, the daily consumption of power plants decreased, and procurement willingness declined. However, due to stricter safety inspections in coal-producing areas, supply was limited, and prices continued to rise [12]. - The decline in rebar prices slowed down, with the spot price of rebar (HRB400 20mm) decreasing by 0.01% week-on-week. The inventory of rebar decreased by 4.2% week-on-week, with continuous inventory reduction for four weeks and an expanding reduction range, indicating the acceleration of physical work volume [2][12]. - Copper prices turned from decline to increase, with the average prices of Yangtze River Nonferrous Copper and LME Copper increasing by 0.45% and 1.0% week-on-week respectively. The slowdown of US inflation data strengthened the expectation of two interest rate cuts this year, and the convening of important domestic meetings boosted macro sentiment, supporting the pricing of risk assets [2][15]. - The glass futures continued to decline. The spot market was weak, with increasing inventory in many places. The purchasing enthusiasm of downstream buyers was low, and manufacturers actively reduced prices to maintain sales. There was no positive news in the supply-demand fundamentals, and the weakness of the spot market was difficult to change in the short term [15]. Investment-related: Decline in Cement Prices Narrowed - Cement prices mostly decreased, with intensified regional differentiation. The weekly average of the cement price index decreased by 0.3% week-on-week, compared with a 2.0% decrease the previous week. Demand was weak in North China, Northeast China, and East China, and the implementation of price increases was poor. In Central South China, demand was limited due to capital and project completion [17]. - New house sales decreased marginally. From October 17th to 23rd, the transaction area of new houses in 30 cities was 203.8 million square meters, a 4.8% decrease week-on-week and a 20% decrease year-on-year, with a slight narrowing compared to the previous week [3][20]. - Second-hand house sales continued to decline year-on-year. From last Friday to this Thursday, second-hand house sales decreased by 1.4% week-on-week and 11.7% year-on-year, with a slower decline rate than in previous years, indicating better resilience [3][20]. Consumption: Passenger Car Retail Sales Remained Negative in Mid-October - Passenger car retail sales remained negative. From October 1st to 19th, passenger car retail sales decreased by 6% year-on-year and increased by 7% month-on-month. The weak start of the car market in October was affected by the increase in holidays and the overdraft of demand after the quarterly sprint in September [21]. - Crude oil prices stopped falling and rebounded. As of October 24th, Brent crude oil and WTI crude oil prices increased by 7.6% and 6.9% respectively compared to last Friday. The postponement of the US-Russia meeting, US sanctions on Russian oil companies, and the upcoming China-US negotiations boosted crude oil prices [21].

Investment Rating - The report assigns a neutral investment rating to STMicroelectronics (STM) based on its performance and future guidance [5]. Core Insights - In Q3 2025, STM reported revenue of $3.19 billion, exceeding the midpoint of its guidance by $17 million, with a quarter-over-quarter increase of 15.2% but a year-over-year decrease of 2.0% [1][2]. - The gross margin for Q3 2025 was 33.2%, slightly below the guidance midpoint, primarily impacted by the automotive and industrial product mix [2][3]. - The company has lowered its capital expenditure plan for 2025 to slightly below $2 billion, down from a previous expectation of $2 billion to $2.3 billion [3][20]. Revenue Performance - Q3 2025 revenue breakdown shows growth in personal electronics, while automotive revenue declined by approximately 17% year-over-year but increased by 10% quarter-over-quarter [2][20]. - The industrial segment saw an 8% quarter-over-quarter increase and a 13% year-over-year increase, marking its first year-over-year growth since Q3 2023 [17][20]. - Personal electronics revenue exceeded expectations with a 40% quarter-over-quarter increase [20]. Inventory and Capital Expenditure - As of the end of Q3 2025, inventory stood at $3.17 billion, down by $100 million from the previous quarter, with inventory turnover days decreasing from 166 days in Q2 to 135 days in Q3 [3][20]. - The company anticipates a low single-digit quarter-over-quarter revenue growth in Q4 2025 due to continued inventory reduction [17][20]. Q4 2025 Guidance - The revenue guidance for Q4 2025 is set at $3.28 billion, reflecting a quarter-over-quarter increase of 2.9% and a year-over-year decrease of 1.23% [3][19]. - The gross margin guidance for Q4 2025 is projected at 35%, with a quarter-over-quarter increase of 1.77 percentage points [3][19]. Strategic Focus Areas - STM is focusing on key strategic areas including industrial, automotive, personal electronics, and communication devices, with ongoing efforts in electric vehicle applications and AI data centers [17][20]. - The company is actively working on enhancing its MEMS and optical sensor solutions, collaborating with partners like NVIDIA to develop advanced architectures for AI data centers [20].

Investment Rating - The report maintains a "Recommended" rating for the companies involved in the chromatography industry, particularly focusing on domestic innovation and market potential [57]. Core Insights - The chromatography industry is experiencing significant growth, driven by the increasing demand in the biopharmaceutical sector, which accounts for 80% of the chromatography medium applications [22][37]. - The global biopharmaceutical market is projected to grow from approximately $503 billion in 2023 to $892 billion by 2028, with a compound annual growth rate (CAGR) of 9.5%-12.5% [30]. - Domestic biopharmaceutical market growth is robust, with projections indicating an increase from ¥262.2 billion in 2018 to ¥534.8 billion in 2024, reflecting a CAGR of 12.61% [37]. Market Overview - The chromatography industry includes core consumables, instruments, and software services, with a complete product system that plays a crucial role in drug purification and analysis [15][16]. - The chromatography equipment market is expected to see significant growth, with the small molecule liquid chromatography system market projected to grow from $3.6 billion in 2021 to $7.7 billion by 2026, representing a CAGR of 16.7% [40]. - The chromatography medium market in China is expected to grow from ¥112 billion in 2023 to over ¥203 billion by 2026, with a CAGR of 21.92% [47]. Key Segments - **Innovative Drugs**: The report highlights the transition from generic to innovative drugs in China, with a focus on companies like BeiGene and Innovent Biologics, which are expected to lead in product pipelines and market share [9][57]. - **Medical Devices**: The report notes a recovery in the bidding for imaging devices and a growing market for home medical devices, driven by government subsidies [61]. - **IVD (In Vitro Diagnostics)**: The report emphasizes the acceleration of domestic replacement in the luminescence sector, with companies like Mindray and New Industries leading the charge [59][60]. Industry Trends - The report identifies a shift towards domestic production and innovation in the chromatography sector, with local companies making significant strides in filling the gaps left by international firms [53][56]. - The biopharmaceutical sector's increasing reliance on chromatography technology for drug development and production is expected to drive demand for high-quality chromatography products [22][37]. - The report also discusses the impact of national policies aimed at promoting domestic high-end scientific instruments, which are expected to further enhance the growth of the chromatography industry [53].

1. Report Industry Investment Rating The document does not mention the industry investment rating. 2. Core Viewpoints of the Report - In Q3 2025, convertible bonds first rose and then fluctuated under the influence of multiple internal and external factors. The CSI Convertible Bond Index increased by 9.43% in Q3, with its valuation rising by 5.72 pct to 30.44% compared to the end of June. However, it underperformed major stock indices. The market can be divided into two stages: a fast - bull market catalyzed by the "anti - involution" and technology themes in July, and a high - level oscillation after September due to factors such as the redemption of secondary bond funds and the weakening of the equity market [2][9]. - Looking ahead to Q4, the support on the demand side of convertible bonds may weaken. Insurance funds and general institutions may reduce their convertible bond assets, which may bring pressure on the clearance of high - rated convertible bonds. Opportunities may lie in low - priced and bond - biased convertible bonds with cost - effectiveness [6]. 3. Summary According to the Directory 3.1 2025Q3 Convertible Bond Market: From Theme Craze to High - Level Oscillation - **Overall Performance**: The CSI Convertible Bond Index increased by 9.43% in Q3 2025, outpacing the cumulative increase in the first half of the year. However, it underperformed major stock indices. The convertible bond market first rose rapidly and then oscillated. The valuation of convertible bonds first increased and then decreased, and the proportion of low - parity bonds continued to shrink. The TMT and advanced manufacturing sectors performed strongly [2][9][15]. - **Convertible Bond Terms**: In Q3 2025, 112 convertible bonds triggered the call - back clause, with 61 announced for redemption, and the call - back probability was 54.46%. The number of times the downward - revision clause was triggered decreased, but the downward - revision probability increased to 14.55%. The risk of put - back was relatively controllable [3][22][23]. - **Supply and Demand Structure**: - **Supply**: As of September 30, 2025, 28 convertible bonds were issued in the year, with a scale of 36.948 billion yuan. The number decreased by 3.45% and the scale increased by 56.34% compared to the same period in 2024. The scale of new issuance plans in Q3 was 35.5 billion yuan, a year - on - year increase of 166.32%. High - rated and large - cap convertible bonds had weak issuance. The stock of convertible bonds continued to shrink, and it was expected to continue to decline in Q4 [4][26][37]. - **Demand**: Most major holders reduced their positions, while public funds increased their holdings. As of the end of September, public funds held 233.561 billion yuan of convertible bonds, a 7.68% increase from the end of June. Enterprise annuities and insurance institutions significantly reduced their holdings of convertible bonds [38][45][48]. 3.2 Stage Review: From Theme Craze to High - Level Oscillation - **July 1 - August 26**: The equity market continued to rise after the market started at the end of June, breaking through the upper limit of the oscillation. The "anti - involution" policy and the Yajiang Hydropower Station project drove the equity market, and the TMT sector's performance in August further magnified the market. Public funds were the main force in increasing convertible bond holdings, and the share of convertible bond ETFs increased significantly. The premium rate of convertible bonds rose to 32.55% [5][58][63]. - **August 27 - September 30**: The equity market entered an oscillation phase. The TMT sector was still the main line, but external disturbances weakened market risk appetite. The redemption of bond funds at the end of August led to a short - term weakness in the demand side of convertible bonds. The share of convertible bond ETFs peaked and declined, and the premium rate of convertible bonds fell to 30.44% [66][68][71].

Investment Rating - The report maintains a "Recommended" rating for Supor (002032) with a target price of 54.1 CNY [2][8]. Core Insights - Supor's Q3 2025 revenue reached 5.42 billion CNY, showing a year-over-year decline of 2.3%, primarily due to pressure on overseas sales, while domestic sales remained stable [8]. - The company's gross margin for Q3 2025 was 23.9%, unchanged from the previous year, indicating resilience in maintaining profitability despite competitive pressures [8]. - The net profit margin decreased to 7.9%, down 1.0 percentage points year-over-year, mainly due to increased marketing expenses [8]. Financial Performance Summary - **Revenue Forecasts**: - 2024A: 22,427 million CNY - 2025E: 23,127 million CNY (growth of 3.1%) - 2026E: 24,275 million CNY (growth of 5.0%) - 2027E: 26,181 million CNY (growth of 7.9%) [4][9] - **Net Profit Forecasts**: - 2024A: 2,244 million CNY - 2025E: 2,239 million CNY (decline of 0.3%) - 2026E: 2,389 million CNY (growth of 6.7%) - 2027E: 2,637 million CNY (growth of 10.4%) [4][9] - **Earnings Per Share (EPS)**: - 2024A: 2.80 CNY - 2025E: 2.79 CNY - 2026E: 2.98 CNY - 2027E: 3.29 CNY [4][9] - **Valuation Ratios**: - Price-to-Earnings (P/E) ratio for 2025E: 17 times - Price-to-Book (P/B) ratio for 2025E: 6.0 times [4][9] Market Performance - The report highlights that Supor's domestic sales of key products such as woks and pressure cookers showed positive growth, with sales increasing by 11.1% and 0.5% respectively in Q3 2025 [8]. - The company is positioned as a leading player in the small home appliance sector, benefiting from effective channel transformations and continuous product innovation [8].

Investment Rating - The report maintains a "Recommendation" rating for the company, with a target price of 14.60 yuan [2][9]. Core Insights - The company's Q3 2025 performance shows significant improvement, with revenue reaching 220 million yuan, a year-over-year increase of 19.0%, and a net profit of 30 million yuan, up 289.0% year-over-year. This growth is attributed to a focus on core self-owned brands and a low base effect [2][9]. - The increase in revenue is primarily driven by the domestic sales of the company's self-owned brands, which amounted to 140 million yuan in Q3 2025, reflecting a 31.7% year-over-year growth. The national subsidy policy continues to positively impact revenue growth [9]. - The gross margin improved to 46.4%, up 3.5 percentage points year-over-year, due to a higher proportion of revenue from self-owned brands. The share of self-owned brand revenue increased from 77.0% in H1 2024 to 82.5% in H1 2025 [9]. - The net profit margin also increased to 12.4%, up 8.6 percentage points year-over-year, supported by both the rise in gross margin and effective cost control measures [9]. - Future projections indicate continued growth in net profit, with estimates of 120 million yuan, 140 million yuan, and 160 million yuan for 2025, 2026, and 2027 respectively, reflecting a corresponding PE ratio of 33, 28, and 24 times [9]. Financial Summary - Total revenue is projected to grow from 754 million yuan in 2024 to 1,204 million yuan in 2027, with year-over-year growth rates of 13.3%, 26.5%, 13.9%, and 10.9% respectively [5]. - The net profit is expected to recover from a decline of 2.6% in 2024 to a growth of 71.5% in 2025, followed by 18.4% and 14.2% in 2026 and 2027 respectively [5]. - The company's earnings per share (EPS) is forecasted to increase from 0.21 yuan in 2024 to 0.49 yuan in 2027 [5].

Investment Rating - The report assigns a strong buy rating for LAM Research, anticipating a performance that will exceed the benchmark index by more than 20% over the next six months [73]. Core Insights - LAM Research achieved record revenue of $5.324 billion in CY25Q3, representing a year-over-year growth of 27.74% and a quarter-over-quarter increase of 2.95%, surpassing market expectations [3][13]. - The company's non-GAAP gross margin reached 50.6%, up 2.4 percentage points year-over-year and 0.3 percentage points quarter-over-quarter, indicating strong operational efficiency [10][12]. - The demand for AI infrastructure is driving growth in the semiconductor equipment market, with expectations that every additional $100 billion in data center capital expenditure will lead to approximately $8 billion in semiconductor equipment investment [5][23]. Company Performance Overview Revenue Situation - LAM Research's revenue for CY25Q3 was $5.324 billion, exceeding the guidance midpoint of $52 billion and market consensus of $5.232 billion [3][13]. - Deferred revenue at the end of the quarter was $2.769 billion, slightly up from the previous quarter, indicating ongoing service and system-related transactions [13]. Gross Margin Situation - The non-GAAP gross margin for CY25Q3 was 50.6%, close to the upper end of the previous guidance [10][12]. Capital Expenditure - Capital expenditures reached $185 million in CY25Q3, an increase of approximately $13 million from the previous quarter, primarily for investments in U.S. laboratories and Asian manufacturing facilities [11]. Employee Changes - The company employed approximately 19,400 full-time employees by the end of CY25Q3, an increase of about 400 employees, mainly in R&D and field support teams [15]. Revenue Structure By Business Segment - The equipment segment accounted for 60% of total system revenue, with record growth driven by advanced process investments and spending in mature nodes in mainland China [15]. - The customer support business (CSBG) generated approximately $1.8 billion in revenue, showing slight growth both quarter-over-quarter and year-over-year [16]. By Region - In CY25Q3, revenue from mainland China constituted 43% of total revenue, up from 35% in the previous quarter, with local customer investments driving growth [19]. Demand Situation Analysis - The company anticipates a revenue reduction of approximately $200 million in the upcoming quarter due to U.S. export restrictions affecting shipments to mainland China, with an estimated total impact of $600 million for the year [22]. - Global demand for wafer fabrication equipment (WFE) is expected to remain strong, with a market size projected to exceed $105 billion in 2025 [22][23]. Technical Progress - LAM Research has made significant advancements in atomic layer deposition (ALD) technology, solidifying its market position with key customers in NAND applications [26]. - The company is also focusing on advanced packaging technologies, with new tools being developed to meet the growing demand in this area [29]. Performance Guidance - For CY2025Q4, LAM Research expects revenue to be around $52 billion, with a non-GAAP gross margin of approximately 48.5% [30].

Investment Rating - The report maintains a "Recommendation" rating for COSCO SHIPPING Specialized (600428) [1] Core Views - The company shows steady growth in Q3 performance, with a focus on the potential demand in the automotive and wind power sectors [1][6] - The company is expected to benefit from the expansion of its fleet and stable freight rates, leading to robust profitability growth in the short term [6] Financial Performance Summary - For the first three quarters of 2025, the company achieved total revenue of 16.6 billion yuan, a year-on-year increase of 37.9%, and a net profit attributable to shareholders of 1.33 billion yuan, up 10.5% year-on-year [6] - In Q3 2025, the company reported revenue of 5.84 billion yuan, a 27.9% increase year-on-year, and a net profit of 500 million yuan, a 6.6% increase year-on-year [6] - The company plans to deliver 53 new ships in 2025, increasing its capacity to 9.16 million deadweight tons, a 49% year-on-year growth [6] Revenue and Profit Forecast - Projected total revenue for 2024A is 16.78 billion yuan, with expected growth rates of 39.8% in 2024, 29.7% in 2025, 14.5% in 2026, and 6.8% in 2027 [2] - The forecasted net profit attributable to shareholders for 2024A is 1.53 billion yuan, with growth rates of 43.8% in 2024, 22.1% in 2025, 14.5% in 2026, and 9.3% in 2027 [2] Market Position and Demand Drivers - The company is positioned as a leader in specialized shipping, benefiting from the growth in marine economy and structural demand in downstream sectors such as new energy vehicles and wind power [6] - The report highlights the expected CAGR of 8.8% for global wind power installations from 2024 to 2030, with even higher growth rates for offshore wind [6] Valuation and Target Price - The target price for the company is set at 8.84 yuan, representing a potential upside of 22% from the current price of 7.22 yuan [2][6] - The report maintains profit forecasts for 2025-2027 at 1.87 billion yuan, 2.14 billion yuan, and 2.34 billion yuan respectively, corresponding to PE ratios of 11, 9, and 8 times [6]

Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index exceeding the benchmark index by more than 5% in the next 3-6 months [57]. Core Insights - Tesla's Q3 2025 revenue reached $28.095 billion, a year-over-year increase of 12%, surpassing market expectations of $26.365 billion [10][12]. - The automotive business generated $21.205 billion in revenue, up 6% year-over-year, with a total vehicle delivery of 497,099 units, reflecting a 7% increase [10][12]. - The energy and storage segment achieved a revenue of $3.415 billion, marking a 44% year-over-year growth, driven by record deployment of storage solutions [10][13]. - The company is optimistic about its robot and AI initiatives, with plans to launch the Optimus V3 robot in Q1 2026 and a target production of 1 million units annually within five years [18]. - Full Self-Driving (FSD) capabilities are being expanded, with the deployment of FSD v12.4, enhancing the Robotaxi service's functionality [19]. Summary by Sections Overall Revenue Situation - Total revenue for Q3 2025 was $28.095 billion, with a gross profit of $5.054 billion and a gross margin of 18% [10][8]. - Non-GAAP net income was $1.770 billion, down 29% year-over-year, with adjusted earnings per share at $0.50 [10][12]. Automotive Business - Total automotive revenue was $21.205 billion, with a total production of 447,450 vehicles, a 5% decrease year-over-year [9][12]. - The delivery of Model 3 and Model Y vehicles was 481,166 units, a 9% increase year-over-year [12][10]. Energy and Storage - The energy and storage segment generated $3.415 billion in revenue, with a gross profit of $1.073 billion, achieving a gross margin of 31.42% [25][13]. - The deployment of storage solutions reached a historic high, contributing significantly to revenue growth [13]. Robotics and AI - The company plans to release the Optimus V3 robot in Q1 2026, with a production target of 1 million units annually within five years [18]. - A partnership with Samsung aims to produce advanced chips for AI reasoning and training, enhancing the company's AI capabilities [18]. FSD and Robotaxi - The deployment of FSD v12.4 began in October, improving the Robotaxi service's capabilities and expanding its operational area [19]. - The company aims to remove safety drivers from Robotaxi services in select areas by the end of the year, contingent on regulatory approvals [28].

Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation of outperforming the benchmark index by over 20% in the next six months [2][18]. Core Insights - The company reported a revenue of 4.509 billion yuan for the first three quarters of 2025, a year-on-year increase of 5.72%, and a net profit attributable to shareholders of 392 million yuan, up 24.92% year-on-year. In Q3 alone, revenue reached 1.514 billion yuan, with a net profit of 151 million yuan, reflecting a significant increase of 60.83% year-on-year [2][4]. Financial Performance Summary - **Revenue Forecasts**: The revenue projections for 2025-2027 have been adjusted to 62.59 billion yuan, 73.75 billion yuan, and 83.36 billion yuan respectively, with year-on-year growth rates of 10.1%, 17.8%, and 13.0% [8]. - **Net Profit Forecasts**: The net profit forecasts for the same period are 540 million yuan, 644 million yuan, and 769 million yuan, with growth rates of 26.7%, 19.3%, and 19.4% respectively [8]. - **Earnings Per Share (EPS)**: The EPS is projected to increase from 1.86 yuan in 2024 to 3.35 yuan in 2027 [4][8]. - **Valuation Metrics**: The company is expected to trade at a price-to-earnings (PE) ratio of 17, 14, and 12 for the years 2025, 2026, and 2027 respectively [4][8]. Business Segment Insights - **Lubricant Additives**: The lubricant additives business has shown continuous improvement, with a shipment volume of 34,200 tons in H1 2025, representing an 18.27% year-on-year increase. Revenue from this segment reached 618 million yuan, up 18.49% year-on-year, with a gross profit margin of 13.48%, an increase of 5.53 percentage points year-on-year [4][8]. - **Anti-aging Agents**: The anti-aging agent segment is expected to improve as overseas capacities begin to exit the market, indicating potential for recovery in this sector [4][8]. - **Life Sciences and PI Materials**: The life sciences division has reached a market development stage, with monthly sales exceeding one million yuan. The PI materials segment is set to begin trial production in 2026, with established partnerships in the domestic market [4][8].