Investment Rating - The report maintains an "Outperform" rating for the power equipment and new energy sector, indicating a positive outlook compared to the broader market [2]. Core Insights - The report highlights that the domestic photovoltaic (PV) installed capacity is expected to exceed 250GW in 2024, with a cumulative year-on-year increase of 25.9% as of November 2023. The report emphasizes the strong performance of the PV sector, driven by year-end project rushes [3][29]. - The offshore wind power sector is gaining momentum, with Jiangsu and Liaoning provinces initiating competitive bidding for offshore wind projects, indicating a high level of market activity and investment opportunities [41][42]. - The hydrogen energy sector is actively being promoted by the National Energy Administration, with significant developments such as the operation of the first 1.5MW hydrogen power station in China [5][80]. Summary by Sections 1. New Energy Vehicles and Lithium Battery Sector - The report discusses the launch of standardized battery swapping solutions by CATL and the introduction of NIO's flagship electric vehicle ET9, indicating advancements in the electric vehicle market [16][17]. 2. New Energy Generation Sector 2.1 Photovoltaic Sector - As of November 2023, the cumulative installed capacity of solar energy reached approximately 820GW, with a year-on-year growth of 46.7%. The report anticipates that the domestic PV installed capacity will exceed 250GW in 2024, maintaining a robust growth trajectory [30][29]. 2.2 Wind Power Sector - The report notes that Jiangsu has initiated a competitive bidding process for 7.65GW of offshore wind projects, with expectations for smooth project progression and significant contributions to future grid connections [41][42]. 3. Energy Storage Sector - The report highlights a significant increase in energy storage installations in the U.S., with a year-on-year growth of 80% in Q3 2023. It also mentions potential policy changes in India that could accelerate energy storage development [46][54]. 4. Power Equipment and Industrial Control Sector - The report indicates a substantial increase in grid investment, with November 2023 seeing a 51.54% month-on-month growth. The overall investment in power grid projects is expected to exceed 600 billion yuan in 2024 [61][62]. 5. Hydrogen Energy Sector - The report outlines the proactive measures taken by the National Energy Administration to advance the hydrogen energy sector, including the operation of a 1.5MW hydrogen power station and plans for significant hydrogen production capacity by 2027 [75][80].

Investment Rating - The industry rating is "Outperform the Market" [10] Core Insights - The automotive industry is experiencing strong retail and wholesale growth, with retail sales of passenger cars reaching 1.083 million units in the first half of December, a year-on-year increase of 34% [1] - The report highlights the increasing focus on robotics within the automotive sector, with companies like BYD and NIO actively expanding their robotics capabilities [3][5] - The report anticipates a continued rise in market share for domestic brands, particularly in the luxury segment, driven by policy support and product innovation [21] Summary by Sections Industry Changes - As of December 19, nearly 2.7 million vehicles have been scrapped, and over 3.1 million vehicles have been replaced nationwide [1] - NIO launched its ET9 model and introduced a new brand, "Firefly" [1] - CATL is expanding its battery swap network with the launch of the "Chocolate" battery swap ecosystem [1] Market Performance - The automotive index saw a decline of 1% this week, ranking 8th out of 31 sectors [31] - The Wind Robotics Index decreased by 2.62%, ranking 191st out of 308 [2] Investment Recommendations - Recommended stocks include major players in the automotive sector such as BYD, Geely, and Li Auto, which are expected to benefit from strong fundamentals and market positioning [21][32] - Focus on companies with robotics integration, such as Siasun Robot & Automation and other domestic robotics firms [4][32] Future Outlook - The report suggests that the automotive sector will continue to grow, particularly with the anticipated rollout of new policies and products in 2024 [21] - The integration of advanced driving technologies and robotics is expected to create new investment opportunities within the automotive supply chain [32][33]

图表 2: 房管局商品房网签数据（套、%） 4 重点监测 20 城合计成交二手房总套数为 32504 套，环比上周下降 8.7%；2024 年累计成交总套数为 126.1 万套，累计同比增长 4.1%。其中，一线城市成交 15800 套，环比上周下降 5.1%，2024年累计成交 54.2 万套，累计同比上升 18.9%；二线城 市成交 15510 套，环比上周下降 11.0%,2024年累计成交 66.3 万套,累计同比减少 4.0%; 三线城市成交 1194 套, 环比上周下降 16.0%, 2024 年累计成交 5.6 万套, 累 计同比增长 48.8%。 ●由于广州数据滞后性,因此广州数据截至 2024.12.14 行业定期报告 | 房地产 试信专业 发现价值 土地供应（12.9-12.15） | --- | --- | --- | --- | --- | --- | --- | |----------|------------------|---------|--------------|----------|--------------|--------| | 城市等级 | 供应规划建筑面积 | ...

Investment Rating - The report maintains a rating of "Follow the Market" for the steel industry [2] Core Views - The steel market is experiencing a weak downward trend, characterized by a dual weakness in supply and demand during the off-season, with a decline in molten iron production and increased contradictions in the raw material sector. Market confidence is low, and there is a lack of enthusiasm for steel inventory accumulation [7][17] - The average daily molten iron output has decreased to 2.294 million tons, down 1.32% week-on-week. The production of five major steel products is 8.499 million tons, down 1.25% week-on-week and 6.17% year-on-year, with significant declines in hot-rolled and medium-thick plate production [7][17] - Steel inventory has decreased to 1,118.4 thousand tons, down 1.82% week-on-week and 15.16% year-on-year, indicating a continued decline in inventory levels [7][17] Summary by Sections Industry Performance - The steel industry has a PE (TTM) valuation of 27.55 times, which is at a mid-level among all industries. The PB (LF) valuation is 0.97 times, indicating a low level compared to other industries [22] Supply and Demand Situation - Iron ore shipments from Australia and Brazil reached 25.78 million tons, up 20.1% week-on-week. However, iron ore arrivals at ports decreased to 22.68 million tons, down 9.9% week-on-week. Port iron ore inventory stands at 149.74 million tons, down 0.6% week-on-week but up 26% year-on-year [7][17] - The coking coal mining operating rate is 90.6%, down 0.59 percentage points week-on-week but up 4.89 percentage points year-on-year. Coking coal inventory is 28.56 million tons, up 2.25% week-on-week and 16.43% year-on-year [7][17] Market Outlook - The report suggests that the steel sector has the potential for upward rebound due to the lack of significant supply-demand contradictions and the implementation of incremental policies. The steel sector has seen significant declines and many stocks are trading below net asset value, with low institutional holdings [7][17] - Five main investment lines are recommended: 1. Companies with optimized product structures and stable high dividends, such as Hualing Steel and Baosteel [7][17] 2. Companies with high technical or cost barriers, such as CITIC Special Steel [7][17] 3. Companies with significant performance elasticity, such as Fangda Special Steel [7][17] 4. Long-term undervalued state-owned enterprises, such as Shandong Steel [7][17] 5. Industry leaders in high-temperature alloys and military-civilian dual-use sectors, such as Steel Research Institute [7][17]

Investment Rating - The report maintains a positive outlook on the defense and military industry, indicating that the sector is at an inflection point with potential beta opportunities ahead [3][11][20]. Core Insights - The defense and military sector is expected to benefit from the realization of demand transmission, with the industry fundamentals approaching a turning point. The investment focus should be on traditional ground combat equipment and engine sectors, as well as high-elasticity directions that can cross the "14th Five-Year Plan" cycle [3][20][22]. - The report highlights that the military industry index has shown a relative underperformance compared to the broader market, but it is anticipated that the fundamentals will drive future performance as demand recovers in 2024 and 2025 [11][12][22]. Summary by Sections Weekly Market Review - The military industry index decreased by 0.83% during the week, while the CSI 300 index fell by 0.14%, resulting in a relative underperformance of -0.69 percentage points. The military index has increased by 19.63% since May 2024, outperforming the CSI 300 index by 10.66 percentage points [11][24][42]. - The report notes that the engine sector performed slightly better, primarily due to significant gains from specific component stocks [31][41]. Stock Performance - The top-performing stocks included Western Materials (16.91%), Phoenix Optical (13.49%), and Fuguang Shares (9.65%), benefiting from external factors and trends in the electronic communication sector [41][48]. - Conversely, the worst-performing stocks were led by Hezhong Shizhuang (-14.73%) and Sikui (-14.52%), which experienced profit-taking after significant gains in previous weeks [41][61]. Funding and Valuation - As of December 20, the military industry index's TTM price-to-earnings ratio stands at 60.6, indicating a high valuation level. However, the report suggests that the current valuation is justified given the expected recovery in industry fundamentals in 2024 and 2025 [12][14][16]. - The report indicates a slight decrease in financing buy-in amounts and balances, reflecting a temporary decline in leveraged interest in the military sector. However, there is an expectation for a rebound in financing activity as demand strengthens [32][67].

Investment Rating - The report maintains a rating of "Outperform" for the industry [73]. Core Views - The 2025 annual electricity transaction volume and price in Jiangsu province are expected to decline by 9% year-on-year, indicating intense competition among market participants [40][41]. - Jiangsu province has initiated a competitive allocation for 7.65GW of offshore wind projects, which is anticipated to contribute to the increase in offshore wind capacity in the region [45]. - In November, the output from hydropower and wind power decreased year-on-year, while the overall electricity consumption growth rate has slowed down [49]. Summary by Sections Industry Dynamics - The total electricity generation in November was 7,495 billion kWh, showing a year-on-year growth of 0.9%, which is a decline compared to previous months [27][49]. - Hydropower generation decreased by 1.9% year-on-year, while thermal power generation increased by 1.4% [27][49]. Company Announcements - Longyuan Power issued a mid-term note with a total amount of 2 billion yuan and a coupon rate of 1.85% [1]. - Zhaoxin Co. is engaging in a financing lease with a maximum amount of 50 million yuan for a term of 120 months [2]. - The company Tianfu Energy has projects that are expected to reduce revenue by approximately 78.61 million yuan due to changes in subsidy eligibility [2]. Investment Recommendations - The report suggests focusing on companies in the hydropower sector such as Changjiang Power and Qianyuan Power, while being cautious with companies like Guotou Power and Huaneng Hydropower [53]. - In the thermal power sector, it recommends attention to Sheneng Co. and Funeng Co., while being cautious with Huadian International and Jiangsu Guoxin [53]. - For nuclear power, China Nuclear Power is recommended, while China General Nuclear Power is advised with caution [53].

Investment Rating - The report maintains an "Outperform" rating for the home appliance industry [3]. Core Insights - The introduction of the "gift-giving" feature by WeChat Mini Store simplifies the gifting process, potentially creating new opportunities in social e-commerce. This feature eliminates the need to ask for the recipient's address or preferred style, significantly reducing the complexity of the gifting process. The timing of the feature's gray testing aligns with the upcoming Spring Festival, which could leverage WeChat's extensive social resources to drive growth in social e-commerce, marking a transformation following community and live-streaming e-commerce [1][39]. - Companies with products that have strong gifting attributes are expected to benefit from this trend, with recommendations to focus on Feike Electric, Beike, Bear Electric, Edifier, XGIMI Technology, and Beiding Co. [39]. Summary by Sections Weekly Investment View - The home appliance sector experienced a weekly decline of 0.7%, with specific segments showing varied performance: white goods +0.0%, black goods +0.1%, small appliances -3.7%, and kitchen appliances -5.2%. In terms of raw material prices, LME copper and aluminum decreased by 2.18% and 3.29% respectively compared to the previous week [10][64]. Policy Support and Market Recovery - The report suggests that domestic demand is expected to recover due to policy support. Key areas to watch include: 1. Major appliances benefiting from trade-in programs, with a focus on Midea Group, Haier Smart Home, Gree Electric, Hisense Home Appliances, TCL Electronics, and Hisense Visual [11]. 2. The pet industry, seen as resilient during economic downturns, with recommendations for Guibao Pet, Zhongchong Co., and Petty Co. [11]. 3. Small appliances and branded apparel, which have been significantly impacted by weak consumer demand, are expected to see a rebound next year, with a focus on leading small appliance brands like Bear Electric, Feike Electric, Supor, and Xinbao [11]. 4. The electric two-wheeler market is anticipated to improve, with recommendations for leading companies like Yadi Holdings, Aima Technology, and Ninebot [11]. Global Manufacturing and Export Opportunities - The report highlights the ongoing theme of international expansion, suggesting that: 1. Leading brands in cleaning appliances are expected to benefit from global product strength and increasing penetration rates, with a focus on Stone Technology and Ecovacs [42]. 2. Major appliance leaders are pushing brand transformations and gaining market share globally, with recommendations for Haier Smart Home, Midea Group, Hisense Home Appliances, TCL Electronics, and Hisense Visual [42]. 3. Motorcycle brands are still in the early stages of international expansion, with significant growth potential, recommending Chuanfeng Power, Qianjiang Motorcycle, and Longxin General [42]. 4. Tool categories are expected to benefit from potential recovery in the real estate sector, with recommendations for Juxing Technology, Techtronic Industries, and Ousheng Electric [42]. Market Trends and Data - The report includes various market data and trends, indicating that the textile and apparel sector also faced a decline of 3.17% this week, with specific segments showing different performance metrics [24].

Industry Investment Rating - The industry maintains a "Stronger than the Market" rating [47] Core Views - The automotive industry is experiencing significant growth in new energy vehicle (NEV) sales, with NEV penetration rates reaching 45.6% in November [70] - The industry is benefiting from government policies such as "large-scale equipment updates and consumer goods replacement," which have driven sales of vehicles, home appliances, and other consumer goods [21] - The sector is also seeing rapid development in the electric vehicle (EV) ecosystem, particularly in battery swapping technology led by CATL [27][28] Market Performance - From December 16 to December 20, 2024, the automotive sector underperformed the CSI 300 index by 0.9 percentage points, with a decline of 1% compared to the CSI 300's 0.1% drop [40] - Year-to-date, the automotive sector has risen by 18%, ranking 7th among the 31 Shenwan sectors [40] Key Data Highlights Sales Data - In November, total vehicle sales reached 3.316 million units, up 11.7% year-over-year (YoY) and 8.6% month-over-month (MoM) [69] - NEV sales in November were 1.512 million units, a 47.4% YoY increase, with a market penetration rate of 45.6% [70] - From December 1-15, passenger vehicle retail sales were 1.083 million units, up 34% YoY and 14% MoM, while NEV retail sales were 536,000 units, up 71% YoY and 6% MoM [87] Inventory and Export - The dealer inventory coefficient in November was 1.11, below the warning line, indicating improved inventory management [69] - Vehicle exports in November were 490,000 units, down 9.5% MoM but up 1.6% YoY [69] Industry News - CATL launched its "Chocolate Battery Swap" ecosystem, aiming to build 1,000 self-operated swap stations by 2025 and expand to 30,000 stations through partnerships [28] - NIO unveiled its third brand, Firefly, targeting the high-end smart compact car market, with the first model set to launch in April 2025 [31] - Avita Technology completed its Series C funding round, raising over 11 billion yuan, with investments from Changan Automobile and other strategic investors [18] Key New Vehicle Launches - NIO ET9, a premium electric sedan, was launched with a starting price of 788,000 yuan, featuring advanced technologies such as a 900V high-voltage architecture and a 100 kWh battery pack [50][39] - Other notable launches include the iCAR V23, Fengyun A8L, and Mercedes-Benz GLC PHEV, catering to various segments from compact SUVs to luxury vehicles [60] Valuation and Sector Performance - The automotive sector's PE-TTM is 25.77x, at the 61.33% historical percentile, while the PB ratio is 2.43x, at the 67.65% historical percentile [86] - Sub-sectors such as passenger vehicles and commercial vehicles are trading at higher valuations compared to historical levels [86]

Investment Rating - The report maintains a strong rating for the pharmaceutical and biotechnology sector, indicating a positive outlook for investment opportunities in this industry [26]. Core Insights - The report highlights the significant growth potential in the stem cell market, with an estimated market size of approximately 26.5 billion yuan in 2024, driven by advancements in stem cell collection, preparation, and storage [11]. - The FDA's recent approval of the first mesenchymal stem cell (MSC) therapy marks a pivotal moment for the industry, suggesting a growing acceptance and potential for stem cell treatments in addressing unmet clinical needs [28]. - The report emphasizes the importance of innovation, recovery, and policy support as key drivers for the pharmaceutical sector, suggesting that companies focusing on innovative drugs and medical devices are likely to outperform [29]. Summary by Sections 1.1 Pharmaceutical Mid-term Investment Strategy - The report suggests gradually increasing allocations in the pharmaceutical sector, anticipating excess returns post semi-annual reports [50]. - Key policies impacting the sector include the comprehensive promotion of DRG/DIP, which will lead medical institutions to prioritize cost-effectiveness [50]. 1.2 Weekly Performance of Recommended Portfolio - The report provides insights into the performance of recommended stocks, indicating that the weekly portfolio outperformed the pharmaceutical index by 1.7 percentage points [17]. - The monthly performance showed a slight underperformance against the pharmaceutical index by 0.5 percentage points [18]. 2 Stem Cell Drug Focus - The stem cell industry is segmented into upstream (reagents, biomedical materials, and equipment), midstream (transportation, collection, storage, and drug development), and downstream (clinical treatment and consumer applications) [10]. - The report notes that while no stem cell drugs have been approved in China yet, the number of related drug development projects is increasing, with 45 IND applications accepted in 2023 [14][21]. 2.1 FDA Approval and Domestic Developments - The FDA's approval of Ryoncil for treating steroid-refractory acute graft-versus-host disease (aGVHD) is a significant milestone, with expectations for similar approvals in China [28]. - The report mentions that the first domestic stem cell drug application for aGVHD has been accepted, indicating a promising future for stem cell therapies in China [59]. 3 Market Review and Trends - The report reviews the recent performance of the pharmaceutical sector, noting a decline in the index and suggesting that the sector is not currently a market leader [33]. - It highlights the potential for recovery in the medical device sector, driven by improved bidding conditions and consumer spending [34]. 4 Recommended Stocks - The report recommends focusing on companies with strong innovation capabilities and those positioned to benefit from policy changes, including Huahai Pharmaceutical, Kunming Pharmaceutical, and Zhongyuan United [35].

Investment Rating - The report maintains an "Outperform" rating for the light industry sector [10]. Core Insights - The furniture retail sales in November showed a year-on-year increase of 10.5%, driven by national subsidies and a recovery in the real estate sector, indicating a continuous improvement in home demand [1][49]. - The cultural paper industry is expected to see a recovery in profitability, with leading companies announcing price increases for January and February 2025 [3][62]. - The report highlights the positive performance of exports in insulated cups and pet food, with significant growth in U.S. home sales, suggesting potential investment opportunities in related sectors [11]. Summary by Sections Furniture Industry - In November, furniture retail sales increased by 10.5% year-on-year, with a month-on-month growth of 3.1 percentage points [1]. - The construction area in November decreased by 40.1% year-on-year, while residential sales area increased by 4.2% year-on-year, indicating a recovery trend in the housing market [2]. - Companies like Mousse Holdings are expanding their overseas production and sales channels, enhancing their market presence in Southeast Asia [2]. Paper and Packaging - As of December 20, 2024, prices for various paper products showed slight increases, with white card paper at 4,240 RMB/ton (+10 RMB/ton) and corrugated paper at 2,918.13 RMB/ton (+41.88 RMB/ton) [3][56]. - The report suggests focusing on companies with integrated supply chains and diverse paper products, such as Sun Paper and Huawang Technology, which are expected to benefit from improved domestic demand [3]. Textile and Apparel - The textile and apparel sector experienced a year-on-year decline of 4.5% in retail sales for November, but cumulative sales from January to November showed a slight increase of 0.4% [7]. - The report anticipates a gradual recovery in consumer demand for branded apparel and home textiles due to government subsidy policies [7]. Export Trends - Exports of insulated cups and pet food showed strong performance in November, with year-on-year increases of 12% and 16%, respectively [11]. - The U.S. housing market is showing signs of recovery, with a notable increase in home sales, which may positively impact related export businesses [11].