Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 28.65, up from the previous value of RMB 23.88 [5][7]. Core Insights - The company is advancing its AI technology and IP ecosystem, launching the SOON AI game development platform and various AI products, including emotional technology and AR hardware [1][3]. - The AI companion application "EVE" has received positive feedback during its internal testing, indicating strong potential in the emotional support sector [2]. - The company is deepening its IP ecosystem, focusing on traditional culture and digital assets, with strategic initiatives to promote Chinese culture globally [4]. Summary by Sections AI Technology and Product Development - The company introduced the SOON platform for automated game development, significantly reducing artistic barriers and time costs, with strategic investments from major groups [3]. - The AI toy brand "Warm Star Valley Dream Journey" is set to launch in 2025, featuring toys with emotional recognition capabilities [3]. IP Development and Cultural Initiatives - The traditional cultural IP "Baigongling" is celebrating its third anniversary, revitalizing traditional crafts through various media [4]. - The innovative national style IP "Suishiling" will implement a three-pronged strategy of short dramas, cultural tourism, and international expansion in 2025 [4]. Financial Projections - The company forecasts net profits of RMB 2.04 billion, RMB 2.41 billion, and RMB 2.73 billion for 2025, 2026, and 2027 respectively, with a projected PE ratio of 30X for 2025 [5][11].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 1,200.00 [1][7]. Core Views - The company is experiencing strong growth momentum driven by rapid store expansion both domestically and internationally, particularly in high-end markets [1][2]. - The premium gold jewelry market is expanding, with the company leading the trend through product innovation and high craftsmanship [2]. - The company has successfully opened new stores in key locations, enhancing its brand positioning and targeting high-net-worth customers [3]. - Strong same-store sales growth is observed, with a significant increase in online sales contributing to overall revenue growth [4]. - Profit forecasts have been adjusted upwards due to sustained high demand and successful overseas market entry, with net profit projections for 2025-2027 increased by 40%-43% [5][12]. Summary by Sections Store Expansion and Upgrades - As of the end of 2024, the company has established 36 self-operated stores in 15 major cities, focusing on high-end shopping centers [3]. - Recent openings include stores in Beijing, Shenzhen, and Singapore, with plans for further expansions [3]. Sales Performance - The company reported a same-store revenue growth of over 120.9% in 2024, with a remarkable 170% growth in the first five months of 2025 [4]. - Online sales through platforms like Tmall and JD.com reached HKD 12.8 billion in early 2025, marking a 333% year-on-year increase [4]. Financial Projections - Revenue forecasts for 2025-2027 have been significantly raised, with expected revenues of RMB 23.6 billion, RMB 29.2 billion, and RMB 35.4 billion respectively [10][12]. - The adjusted net profit for 2025 is projected at RMB 4.9 billion, reflecting a 233.6% increase from the previous year [12][17]. Market Positioning - The company is recognized as the leading brand in traditional handcrafted gold jewelry, continuously innovating with products that blend heritage craftsmanship with modern aesthetics [2]. - The brand's positioning in high-end markets is reinforced by its strategic store locations and product offerings [3].

Macro Insights - Multiple factors are driving a sequential decline in demand, with fiscal spending showing a decrease since Q2, and real estate sales weakening in June [2][3] - The manufacturing PMI improved slightly from 49.5% in May to 49.7% in June, indicating marginal recovery, but still below seasonal levels [3] - Government financing has accelerated in June, which may support infrastructure projects [2] Real Estate Sector - In June, the sales amount of the top 100 real estate companies increased by 9.6% month-on-month, but decreased by 25.0% year-on-year due to high base effects from last year [8] - The government has signaled stronger policy support for the real estate market, which may lead to a quicker implementation of policies [8] Fixed Income and Investment Strategies - The introduction of the first batch of 10 sci-tech bond ETFs is expected soon, which will enhance market liquidity and potentially benefit the performance of sci-tech bonds [7] - The adjustment of the Hong Kong Stock Connect is anticipated to include 19 stocks, with historical data indicating that newly included stocks tend to outperform the market [5] Automotive Industry - The automotive sector is expected to remain resilient in Q3, with a focus on leading companies that have popular models, such as Geely and BYD [14] - The motorcycle and two-wheeler segments are also expected to benefit from new regulations and seasonal demand [14] Technology and AI - The electronic sector is advised to focus on AI developments, with expectations for significant growth in computing power and domestic manufacturing capabilities [11] - The communication sector is optimistic about AI-related investments and the potential for core assets to see valuation increases as market liquidity improves [12] Energy Sector - Four方股份 is positioned as a leader in the secondary equipment sector for power grids, with a projected revenue CAGR of 11.8% from 2018 to 2024 [16] - 东方电子 is recognized for its strong growth in power automation, with a revenue CAGR of 14.4% from 2008 to 2024, and is expected to benefit from the expanding virtual power plant market [17] Company Ratings - Four方股份 has been rated "Buy" with a target price of 20.20 CNY, reflecting strong growth potential [20] - 东方电子 has also received a "Buy" rating with a target price of 12.60 CNY, indicating confidence in its growth trajectory [20]

Investment Rating - The report initiates coverage on the company with a "Buy" rating and sets a target price of 20.20 RMB, based on a 20x PE for 2025 [6][8]. Core Views - The company is a leader in the domestic secondary equipment industry for power grids, with a solid technical foundation and stable growth in its core business, while also having the potential to expand its market presence outside the grid [15][21]. - The company has demonstrated a robust revenue growth rate, with a CAGR of 11.8% from 2018 to 2024, significantly outpacing the 1.9% growth rate of grid infrastructure investment [22]. - The report anticipates a continued increase in ROE, which has risen from 4.76% in 2019 to 16.25% in 2024, alongside a consistent dividend yield above 4.2% for the past three years, projected to reach 5.0% in 2025 [4][18]. Summary by Sections Power Grid Sector - The main grid's secondary equipment market is expected to grow at a CAGR of 10.1% from 2024 to 2026, with the company increasing its market share in recent bidding rounds [2][20]. - The company has secured a growing share of the secondary equipment market, with bidding shares of 14.2%, 15.1%, and 16.2% for 2023, 2024, and 2025 respectively [2][31]. Generation Sector - The company maintains a leading position in offshore wind and large-scale renewable energy projects, with a significant order growth of over 40% year-on-year in the renewable sector since 2025 [3][17]. - In traditional energy, the company is actively involved in major projects in thermal, hydro, and nuclear power, expecting steady revenue growth alongside the traditional energy sector [3][17]. Financial Performance - The company’s net profit is projected to reach 845 million RMB, 988 million RMB, and 1.15 billion RMB for 2025, 2026, and 2027 respectively, with an EPS of 1.01 RMB, 1.19 RMB, and 1.38 RMB [6][11]. - The report highlights strong cash flow management and a commitment to shareholder returns, with a dividend payout ratio expected to remain around 80% [4][19]. Market Insights - The report identifies a gap in market understanding regarding the potential of source-grid-load-storage projects, which are crucial for the efficient integration of renewable energy [5][19]. - The company is well-positioned to benefit from the growth of the source-grid-load-storage market due to its comprehensive technical capabilities across the entire industry chain [5][19].

Report Industry Investment Rating - Not provided in the content Core View of the Report - Last week, the overall liquidity was balanced, with an upward trend in capital interest rates, a downward trend in certificate of deposit (CD) rates, an upward trend in IRS yields, a downward trend in repurchase trading volume, an upward trend in bill rates, and a downward trend in the US dollar to RMB exchange rate. After the end of the quarter, it is expected that the liquidity will ease and the capital interest rates will decline [1][2][3][4][5] Summary by Related Catalogs Capital Supply and Demand - Last week, the open - market had 960.3 billion yuan in maturities (all reverse repurchase), and 2327.5 billion yuan in investments (2027.5 billion yuan in reverse repurchase and 300 billion yuan in MLF), with a net investment of 1367.2 billion yuan. The balance of outstanding reverse repurchases increased compared to the previous week [1] - This week, the open - market has 2027.5 billion yuan in capital maturities, all reverse repurchase. After the end of the quarter, it is expected that the liquidity will ease and the capital interest rates will decline [5] Interest Rates - Affected by the end - of - quarter factor, the average DR007 was 1.65%, up 13BP from the previous week; the average R007 was 1.82%, up 24BP from the previous week; the average DR001 and R001 were 1.37% and 1.44% respectively. The average GC007 was 1.92%, up 31BP from the previous week [1] - Last week, the 1 - year FR007 interest rate swap average was 1.54%, up from the previous week. The market's expectation for the liquidity is stable [2] - As of the last trading day of last week, the yield to maturity of 1 - year AAA CDs was 1.64%, down from the previous week. This week, the single - week maturity of CDs is about 245.79 billion yuan, with less maturity pressure than the previous week [2] - Last Friday, the 6M national stock bill transfer quotation was 1.15%, up from the previous week's last trading day [4] Repurchase Market - Last week, the volume of pledged repurchase trading was between 6.6 and 8.5 trillion yuan, and the average volume of R001 repurchase trading was 6.5011 trillion yuan, down 961.1 billion yuan from the previous week. As of the last trading day of last week, the balance of outstanding repurchases was 12.7 trillion yuan, up from the previous week [3] - In terms of institutions, the lending scale of large - scale banks decreased, while that of money market funds increased. The borrowing scales of securities firms and wealth management increased, while that of funds decreased [3] Exchange Rate - Last Friday, the US dollar to RMB exchange rate was 7.17, slightly down from the previous week, and the Sino - US interest rate spread narrowed [4] This Week's Key Points of Attention - This week, the open - market has 2027.5 billion yuan in capital maturities, all reverse repurchase [5] - On Monday and Tuesday, China's official and Caixin PMI for June will be announced respectively, and on Tuesday, the US ISM manufacturing index for June will be announced. On Thursday, the US unemployment rate and non - farm payrolls change for June will be announced, and the minutes of the Eurozone's monetary policy meeting for June will also be announced [5] - This week, the net maturity of interest - bearing bonds is 6.34 billion yuan [5]

Report Industry Investment Rating - Not provided in the report Core Viewpoints - The launch of Science and Technology Innovation Bond ETFs is imminent, which will enrich the credit bond ETF product line and institutional investment tools. Their approval, listing, and scale expansion will help compress the liquidity premium of science and technology innovation bonds, benefiting the performance of this bond type. Investment opportunities are worth attention, but there are also disturbing factors such as valuation distortion, redemption pressure, and changes in risk preference [1][50] - Last week, the stock market's consecutive gains pushed up market risk appetite, leading to an upward trend in most credit bond yields. The issuance of corporate credit bonds increased, with urban investment bonds turning to net financing. In the secondary market, medium - and short - duration bonds were actively traded, and long - duration bond trading increased slightly [2][3][4] Summary by Directory Credit Hotspots: How to View the Imminent Launch of Science and Technology Innovation Bond ETFs - Policy support encourages the launch of science and technology innovation bond ETFs. On June 18, the first batch of 10 science and technology innovation bond ETFs were collectively submitted, and they are expected to be approved and issued soon [10] - The science and technology board in the bond market has promoted the rapid expansion of science and technology innovation bonds. As of June 27, the balance of the science and technology innovation bond market reached 2.45 trillion yuan, with exchange - listed science and technology innovation corporate bonds accounting for 57.39% [11] - The first batch of science and technology innovation bond ETFs tracks three types of indexes. The underlying assets are mainly high - grade state - owned enterprise bonds, with a medium - to short - term maturity structure. The index performance shows stable returns and low volatility [13][16][32] - Due to institutional pre - arrangement for ETF construction, the valuation of science and technology innovation bond index component bonds and non - component bonds has diverged. Component bond yields have declined faster than those of general credit bonds, exchange - traded science and technology innovation bonds have declined faster than inter - bank ones, and component bond yields of the same issuer have declined faster than non - component bonds [37][38][44] Market Review: The Consecutive Gains in the Stock Market Pushed Up Market Risk Appetite, and Most Credit Bond Yields Rose - From June 20 to June 27, 2025, the central bank maintained a stable end - of - quarter capital market. The stock market's breakthrough of the previous high increased market risk appetite, causing a slight adjustment in the bond market. Interest - rate bond yields at the short end declined, while those at the long end rose. Most credit bond yields also increased, with the yields of AAA - rated bonds rising by about 2BP, and medium - and short - term notes performing better than urban investment bonds. The yields of secondary perpetual bonds generally rose by about 2BP, with a relatively larger adjustment in the 7 - 10Y segment [2] - Most median industry spreads of public bonds and urban investment bonds in each province increased, with the spread in Yunnan rising by more than 4BP [2] Primary Issuance: The Issuance of Corporate Credit Bonds Increased, and Urban Investment Bonds Turned to Net Financing - From June 23 to June 27, 2025, the total issuance of corporate credit bonds was 413.9 billion yuan, a 24% increase from the previous period. The total issuance of financial credit bonds was 67.5 billion yuan, a 61% decrease. Corporate credit bonds had a total net financing of 103.9 billion yuan, with urban investment bonds having a net financing of 16.9 billion yuan, turning from continuous net repayment to net financing [3][75] - In terms of issuance interest rates, the average issuance interest rates of medium - and short - term notes increased slightly except for AA +, and the average issuance interest rates of corporate bonds decreased except for AAA [3] Secondary Trading: Medium - and Short - Duration Bonds Were Actively Traded, and Long - Duration Bond Trading Increased Slightly - Active trading entities are mainly medium - to high - grade, medium - and short - term, central and state - owned enterprises. Urban investment bond trading entities are divided into two types: mainstream high - grade platforms in economically strong provinces and core platforms in regions with relatively high spreads in large economic provinces. Real estate bond trading entities are mainly AAA - rated, with a trading term of 1 - 3 years. Private enterprise bond trading entities are also mainly AAA - rated, with medium - to short - term trading terms [4][85] - Among actively traded urban investment bonds, the proportion of bonds with a maturity of more than 5 years increased slightly from 2% to 4% compared to the previous week [4]

Manufacturing PMI Insights - June manufacturing PMI improved slightly from 49.5% in May to 49.7%, slightly above Bloomberg consensus of 49.6% but still below seasonal levels[1] - Production index rose by 0.3 percentage points to 51.0%, while new orders index increased from 49.8% to 50.2%[3] - New export orders index saw a minor increase from 47.5% to 47.7%, remaining below seasonal averages[5] Non-Manufacturing Sector Performance - Non-manufacturing business activity index rose by 0.2 percentage points to 50.5%, with the construction sector showing significant recovery[6] - Service sector index slightly declined to 50.1%, indicating mixed performance across industries[6] Price Trends and Economic Outlook - Both purchasing prices and factory prices showed signs of recovery, with raw material prices index rising by 1.5 percentage points to 48.4%[7] - The uncertainty surrounding tariff policies post July 9 may disrupt future export and production activities, necessitating stronger monetary and fiscal policies[2] Employment and Business Expectations - Employment index in manufacturing fell by 0.2 percentage points to 47.9%, indicating ongoing challenges in labor market stability[3] - Business activity expectations index decreased by 0.5 percentage points to 52%, reflecting cautious outlook among manufacturers[3]

Economic Performance - In June, the adjusted fiscal expenditure showed a month-on-month decline, indicating a slowdown in government spending since Q2[1] - High-frequency indicators revealed a weakening in real estate sales, with new home transaction area in 44 cities dropping to -17% year-on-year, down from -5.9% in May[1] - The manufacturing sector maintained resilience, with coking and blast furnace operating rates higher than the same period last year by 2.2 and 1.3 percentage points, respectively[1] Inflation and Commodity Prices - As of June 27, Brent oil prices increased by 6.1% month-on-month to $67.8 per barrel, while COMEX gold prices fell by 0.8% to $3,288 per ounce[2] - Domestic raw material prices showed mixed performance, with copper and aluminum prices rising by 2.6% and 3.5%, while rebar and cement prices fell by 1.3% and 1.2%[2] Financial Market Trends - The LPR remained unchanged in June, with the central bank conducting two reverse repo operations totaling 1.4 trillion yuan, indicating tight interbank liquidity[2] - The net issuance of government bonds in June reached 1.7 trillion yuan, an increase of 860.9 billion yuan year-on-year[2] Trade and Export Dynamics - Export growth showed a slight decline, with the year-on-year growth rate for exports from June 1-27 expected to decrease compared to May[1] - The trade surplus for May was reported at $103.2 billion, reflecting a year-on-year decrease in exports to the U.S. by 34.5%[3] Policy and Regulatory Environment - The Chinese government emphasized stronger measures to stabilize the real estate market during a State Council meeting on June 13[4] - On June 24, multiple departments jointly issued guidelines to enhance financial support for consumption, introducing 19 key measures[4]

Group 1: Passenger Vehicles - The report anticipates a strong performance in Q3 2025, with a projected wholesale volume of 16.25 million units, reflecting a year-on-year increase of 5% and a month-on-month increase of 21% [1] - The sales of new energy vehicles (NEVs) are expected to reach 9.3 million units, with a year-on-year growth of 23% and a month-on-month growth of 42% [1] - The market share of domestic brands is projected to increase from 62% in 2024 to 69% in 2025, driven by strong performances from BYD, Geely, and Chery [20][24] Group 2: Motorcycles and Electric Two-Wheelers - The motorcycle industry is focusing on overseas expansion, particularly in Europe, where a high growth period is expected from January to October [2] - The electric two-wheeler market is anticipated to see strong sales growth in Q3, supported by policies and a demand upgrade, with a cumulative replacement volume of 6.5 million units by May 2025 [2][12] - The report highlights that the high-end electric two-wheeler market is becoming increasingly competitive, while the mid-to-low-end market is expected to consolidate, benefiting leading companies like Aima and Yadea [2] Group 3: Auto Parts - The report notes that tariffs are accelerating the globalization of domestic auto parts companies, with a focus on capacity relocation to regions like Mexico and Southeast Asia [3] - The optimization of supplier payment terms to within 60 days is expected to improve the health of the industry chain, particularly benefiting leading auto parts suppliers [3] Group 4: Intelligent Driving and Robotics - The Robo X initiative is gaining momentum, with significant advancements in logistics cost reduction and the commercialization of Robotaxi services [4] - The report emphasizes the importance of technological iterations in the intelligent driving sector, with a notable increase in the penetration rate of high-end driving assistance features in vehicles priced below 200,000 yuan [4][19] - In the robotics sector, the investment paradigm is shifting towards companies that can deliver real orders and have a strong technological and production capacity [5]

Investment Rating - The report maintains an "Overweight" rating for the transportation and logistics industry [5]. Core Insights - The commercialization of unmanned logistics vehicles is driven by industry demand, technological advancements, policy support, and new business models. The last mile delivery in the express delivery sector, which accounts for about 60% of total costs, presents significant cost reduction opportunities compared to other logistics segments [12][22]. - The current primary application scenarios for unmanned logistics vehicles include last-mile delivery from distribution points to collection stations, which corresponds to a market space of approximately 36.6 billion RMB. The report anticipates that by 2030, the incremental market value for various autonomous driving scenarios will reach 745.9 billion RMB [2][13]. Summary by Sections Industry Demand - The express delivery industry is experiencing a prolonged price war, with average prices dropping by 8.2% year-on-year in the first five months of 2025, leading companies to seek cost reductions in last-mile delivery, which constitutes over 50% of total costs [23][26]. Policy and Technology - The report highlights that national strategies and local policies are increasingly supportive of unmanned logistics vehicles, with road rights being opened up for testing and application. This regulatory environment is crucial for the growth of unmanned logistics vehicles [39][41]. - Technological advancements in autonomous driving are making unmanned logistics vehicles more viable, with successful mass production by leading companies driving down costs [12][22]. Cost Reduction Potential - If 30% of delivery volume is handled by unmanned logistics vehicles, express delivery companies could see a cost reduction of approximately 4%. The cost of using unmanned vehicles for delivery is significantly lower than traditional methods, with a cost of 0.067 RMB per delivery compared to 1 RMB for manual delivery [13][34]. Market Size and Growth - The potential market size for unmanned logistics vehicles in the express delivery sector is estimated at around 36.6 billion RMB, representing only 4.9% of the total market. The report projects substantial growth in the overall market for autonomous driving applications, with various segments contributing to a total incremental value of 745.9 billion RMB by 2030 [12][13]. Competitive Landscape - The report suggests that the automation of last-mile delivery could lead to a redistribution of profits within the express delivery industry, favoring well-capitalized and well-managed leading companies. The competitive landscape is expected to shift as companies leverage unmanned logistics vehicles to enhance efficiency and service quality [4][14].