Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 12.70 [1][4]. Core Views - The company reported Q3 revenue of RMB 5.9 billion, a year-over-year decrease of 2% and a quarter-over-quarter decrease of 1%. However, the net profit attributable to the parent company was RMB 1.26 billion, showing a year-over-year increase of 141% and a quarter-over-quarter increase of 68% [1]. - The company’s net profit for the first three quarters of 2025 reached RMB 30.3 billion, a year-over-year increase of 52%, driven by the acquisition of an overseas company which contributed approximately RMB 7.8 billion to the profit [1][4]. - The report anticipates a recovery in the amino acid market, supported by increased penetration in the aquaculture sector and a favorable demand outlook due to reduced soybean meal usage [1][3]. Summary by Sections Financial Performance - For the first three quarters of 2025, the feed amino acids revenue was RMB 8.19 billion, down 2% year-over-year, while lysine sales increased despite price declines. The average prices for lysine and threonine were RMB 8.5/kg and RMB 10.0/kg, reflecting year-over-year decreases of 16% and 5% respectively [2]. - The overall gross margin improved by 2.4 percentage points to 21.3% due to lower raw material costs [2]. Market Outlook - The prices for key products such as lysine and threonine are currently at low levels, but demand is expected to recover as aquaculture penetration increases and consumer demand rebounds [3]. - The company is expanding its product line through acquisitions, which will enhance its high-value pharmaceutical amino acid offerings and support its international expansion strategy [3]. Profit Forecast and Valuation - The net profit forecast for 2025 has been adjusted down to RMB 3.54 billion, a 3% decrease from previous estimates, while maintaining projections of approximately RMB 3.6 billion and RMB 3.8 billion for 2026 and 2027 respectively [4]. - The expected earnings per share (EPS) for 2025 is RMB 1.26, with a projected price-to-earnings (P/E) ratio of 11x for 2025 [4][8].

Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to 100.0 RMB from the previous 76.0 RMB [4][5]. Core Insights - The company reported a revenue of 243.17 billion RMB for Q3 2025, representing a year-over-year increase of 42.8%, which aligns with expectations [1]. - The net profit attributable to the parent company for Q3 reached 10.37 billion RMB, up 62.0% year-over-year, exceeding consensus estimates by 19.6% [1]. - The gross margin improved to 7.0%, a 0.5 percentage point increase from the previous quarter, surpassing Bloomberg's consensus by 1.0 percentage point [1]. - The AI server segment showed significant profitability improvements, contributing to the overall positive performance [1]. Summary by Sections Cloud Computing Business - The cloud computing segment saw revenue growth exceeding 65% year-over-year in the first three quarters of CY25, with Q3 alone showing over 75% growth [2]. - Revenue from cloud service providers accounted for 70% of the cloud computing business in Q3, with a year-over-year increase of over 150% [2]. - The company is expected to benefit from the ongoing demand for AI servers, with projected growth rates of 83.6%, 103.3%, and 24.5% for 2025, 2026, and 2027 respectively [2]. Communication and Mobile Network Equipment Business - The communication and mobile network equipment segment performed steadily, driven by the demand for AI-enabled terminal products [3]. - The switch business experienced a remarkable growth of 100% year-over-year in Q3, with 800G switches increasing by over 27 times [3]. - The gross margin for this segment is expected to improve by 0.6 percentage points in FY26 and 1.6 percentage points in FY27, reaching 10.2% and 11.8% respectively [3]. Financial Projections - The company’s revenue forecast for 2025-2027 remains unchanged, but gross margins have been adjusted upward by 0.55 to 1.85 percentage points [4]. - The net profit forecast for 2025-2027 has been increased by 11.6% to 13.0%, with projected figures of 35.32 billion RMB, 55.01 billion RMB, and 62.78 billion RMB respectively [4]. - The expected EPS for 2025, 2026, and 2027 is projected to be 1.78 RMB, 2.77 RMB, and 3.16 RMB respectively [4].

Investment Rating - The investment rating for the company is maintained at "Buy" [6] Core Views - The company reported a revenue of 5.782 billion RMB for Q1-Q3, a year-on-year decrease of 1.8%, while the net profit attributable to the parent company was 755 million RMB, an increase of 4.4% year-on-year [1][6] - The company is experiencing pressure on revenue per available room (RP), but the decline is narrowing compared to the previous quarter, indicating resilience in the hotel operations [2][3] - The company is focusing on long-term growth by transforming its core brand to appeal to younger consumers and enhancing product offerings, which is expected to revitalize its growth trajectory [1][2] Revenue and Profitability - For Q3, the company achieved a revenue of 2.121 billion RMB, down 1.6% year-on-year, with a net profit of 358 million RMB, down 2.2% year-on-year [1][2] - The adjusted net profit for Q3 was 340 million RMB, reflecting a year-on-year increase of 0.6%, with a net profit margin of 16.0%, up 0.4 percentage points year-on-year [1][2] Market Performance - The overall RP for the company in Q3 was 191 RMB, a decrease of 2.4% year-on-year, while the average daily rate (ADR) was 259 RMB, down 2.0% year-on-year [2] - The occupancy rate (OCC) stood at 73.6%, a slight decrease of 0.3 percentage points year-on-year [2] Expansion and Store Management - As of Q3, the company had a total of 7,501 stores, with economic and mid-to-high-end hotels accounting for 26.9% and 29.6% of the total, respectively [3] - The company opened 387 new stores in Q3, a year-on-year increase of 0.5%, with a net addition of 233 stores, down 14.7% year-on-year [3] Financial Forecast and Valuation - The net profit forecast for the company has been adjusted to 858 million RMB, 980 million RMB, and 1.094 billion RMB for the years 2025, 2026, and 2027, respectively [4] - The target price has been adjusted to 17.07 RMB, based on a price-to-earnings (PE) ratio of 22.2 times for 2025 [4]

Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 25.74 [1][4]. Core Insights - The company reported Q3 revenue of RMB 880 million, a year-over-year increase of 15% and a quarter-over-quarter increase of 15.47%. However, the net profit attributable to shareholders was RMB 74.06 million, down 14% year-over-year and down 24% quarter-over-quarter [1]. - The overall gross margin for the first three quarters of 2025 increased by 0.4 percentage points to 36.2%, driven by the favorable conditions in the semiconductor materials sector [2]. - The company has ongoing projects, including a significant breakthrough in semiconductor advanced packaging materials, which could disrupt the market dominated by foreign competitors [3]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved revenue of RMB 2.34 billion, a year-over-year increase of 8%, and a net profit of RMB 290 million, up 41% year-over-year [1]. - The company’s Q3 net profit was below expectations due to increased expenses and reduced asset disposal gains [1]. Industry Position - The semiconductor materials sector is experiencing a sustained uptrend, benefiting from increased demand in various applications, including consumer electronics and optical fiber materials [2]. - The company is advancing its projects, including a new liquid crystal materials mixing and R&D center, which is expected to enhance its capabilities in high-end liquid crystal materials [3]. Profit Forecast and Valuation - The profit forecast for the company is maintained at RMB 374 million, RMB 394 million, and RMB 437 million for the years 2025, 2026, and 2027, respectively, with corresponding EPS of RMB 0.66, RMB 0.70, and RMB 0.77 [4][10]. - The target price is set at RMB 25.74, reflecting a price-to-earnings ratio of 39x for 2025, considering the growth potential of ongoing projects [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 542 HKD [7]. Core Insights - The company is expected to report total revenue of 7.583 billion HKD for 3Q25, representing a year-on-year increase of 41% and a quarter-on-quarter increase of 5%. The net profit attributable to shareholders is projected to be 4.774 billion HKD, reflecting a year-on-year increase of 52% and a quarter-on-quarter increase of 7% [1][5]. - The significant increase in trading activity is the main driver of revenue growth, with the average daily turnover (ADT) for Hong Kong stocks reaching 286.4 billion HKD, a year-on-year increase of 141% and a quarter-on-quarter increase of 20% [1][2]. - The report anticipates a decrease in net investment income to 917 million HKD, a decline of 41% quarter-on-quarter, primarily due to a narrowing margin from margin investments as HIBOR decreases [4]. Summary by Sections Trading Activity - Trading-related revenue is expected to rise to 5.14 billion HKD, a quarter-on-quarter increase of 31%. The trading activity in Hong Kong stocks has reached new highs, with ADT increasing significantly [2]. - Southbound trading volume has also seen rapid growth, with a single-sided ADT of 76.2 billion HKD, a quarter-on-quarter increase of 36% [2]. IPO Market - The report estimates that IPO-related revenue for 3Q25 will be 440 million HKD, a quarter-on-quarter increase of 7.5%. The number of IPOs in 3Q25 is expected to be 25, with total fundraising amounting to 73.5 billion HKD [3]. Investment Income - The expected net investment income for 3Q25 is projected to be 917 million HKD, reflecting a significant decrease due to various factors including HIBOR fluctuations [4]. Profit Forecast and Valuation - The report adjusts the net profit forecasts for 2025, 2026, and 2027 to 17.7 billion HKD, 18.3 billion HKD, and 18.7 billion HKD respectively, with increases of 5.2%, 11.2%, and 14.1% [5].

Group 1: Overall Information - The report is titled "Fed Turns Hawkish, Adding Uncertainty - October FOMC Review" and is published by Huatai Research on October 30, 2025 [1] Group 2: FOMC Meeting Summary - The Fed cut the benchmark interest rate by 25 basis points to 3.75%-4.00% at the October FOMC meeting and will stop quantitative tightening on December 1. Two members voted against the decision, showing internal disagreement [2] - Economic activity is expanding at a moderate pace. Employment growth has slowed this year, and the unemployment rate has risen slightly but remains low as of August. Inflation is still relatively high [2] Group 3: Powell's Press Conference - Powell stated that a December rate cut is not a given. The committee has not decided on December's policy and will make a judgment based on data, economic outlook, and risk balance. There are significant differences among members due to inflation risks and employment risks [3] - The Fed decided to end QT on December 1 because the money market pressure has reached the target level, with rising repo rates and the federal funds rate [3] - AI investment is insensitive to interest rates and is based on long - term judgments. The Fed is monitoring the rise in sub - prime auto loan defaults but has not found it to be a widespread credit problem [4] - The K - shaped economy has been included in the economic assessment. There is a certain correlation between the stock market and consumption, but a stock market decline may not lead to an equal - dollar decline in consumption [4][5] Group 4: Market Performance - After the hawkish remarks, interest - sensitive assets generally adjusted. US Treasury yields rose significantly, and technology stocks and copper performed relatively strongly. The US dollar index rose, and non - US currencies mostly fell [6] - As of the close on the day, the 2 - year US Treasury yield rose 11 basis points to 3.60%, and the 10 - year yield rose 10 basis points to 4.08%. US stocks closed mixed, with the Nasdaq up 0.55%, the S&P 500 flat, and the Dow down 0.16%. The Russell 2000 index fell 0.87% [6] - As of October 30, the OIS market priced in a further 17.2bp rate cut this year, and the probability of a December rate cut dropped to 68.6% [6] Group 5: Future Policy Outlook - The Fed's rate - cut logic has shifted from risk management to data - driven. The threshold for a December rate cut has increased significantly, and a further weakening of the job market may be a necessary condition [7] - Stopping quantitative tightening is expected to ease short - term liquidity tensions. After the government shutdown ends, the TGA account funds may flow back to the market, injecting more liquidity [8] - The new Fed chair nominee may be announced this year. If Kevin Hassett is nominated, it may increase concerns about the Fed's independence and benefit gold. If Christopher Waller is nominated, it may trigger reverse trading [8] Group 6: Asset Allocation Outlook - For US Treasuries, short - term government shutdowns may cause fundamental pressure and increase yield volatility. The Fed's more cautious stance drives the yield curve to bear - flatten. In the long run, monetary policy may be "tight first and then loose" [9] - For US stocks, the Fed's hawkish turn has affected some interest - sensitive sectors, but AI remains the main line. In the medium term, the macro - environment is still favorable, but long - term risks such as central bank tightening and over - capacity need attention [10] - For other assets, before US employment data shows further weakness, most assets may face pressure on the denominator. The recent strength of the RMB exchange rate may limit the impact of rising US Treasury yields [10]

1. Report Industry Investment Rating - No information provided in the content. 2. Core Viewpoints of the Report - Among overseas bank bonds, ordinary bank bonds have the largest outstanding volume, while AT1 and AT2 are subordinated bonds with higher yields. Subordinated bonds have had many credit risk events in history, reshaping the research framework and pricing for institutional investors. Ordinary bank bonds are mainly investment - grade, and their pricing is more affected by liquidity premium, while subordinated bonds are more affected by credit risk premium. In the future, considering the overall stable fundamentals of banks and the interest - rate cut cycle, opportunities for yield decline in medium - and short - duration ordinary bonds and subordinated bonds can be focused on. Chinese banks' overseas bonds, mainly US - dollar ordinary bonds issued by large banks, have higher coupons than domestic bonds, presenting allocation opportunities [1]. 3. Summary by Relevant Catalogs 3.1 Overseas Bank Bond Overview - **Types and Attributes**: Overseas bank bonds mainly include ordinary bank bonds, TLAC non - capital instruments, AT2, and AT1 bonds. Ordinary bank bonds have the best repayment order and are used to supplement general operating funds. TLAC non - capital instruments help global system - important banks meet TLAC regulatory indicators. AT1 and AT2 are used to supplement a bank's primary and secondary capital respectively, with subordinated, redemption, write - down, or conversion clauses [12]. - **Outstanding Amount**: As of October 20, the outstanding amounts of ordinary bank bonds, TLAC non - capital instruments, AT2, and AT1 bonds were 6.4, 2.0, 0.8, and 0.5 trillion US dollars respectively [2]. - **Ordinary Bank Bonds**: They are denominated mainly in euros, with the largest outstanding volume. European countries dominate in terms of issuance, and Germany has the largest outstanding amount. From 2010 - 2025, the overall issuance scale declined, and the financing situation shifted from net repayment to mild net financing. The issuance term is mainly 1 - 7 years, and the rated bonds are mainly of A grade. The lower the rating, the higher the interest rate [18][22][30]. - **AT1 Bonds**: They are denominated mainly in US dollars, with the largest outstanding amounts in the UK and the US. The market expanded significantly after 2014 and has developed steadily since then. The net financing amount has changed with the market rhythm. The issuance coupon is affected by the interest - rate environment and credit risk events. Bonds with ratings are mainly of Ba1 grade, and the lower the rating, the higher the coupon [35][40][52]. - **AT2 Bonds**: They are mainly issued by France, the US, etc., and are denominated mainly in US dollars, euros, and Australian dollars. The issuance scale fluctuated greatly from 2010 - 2025, mainly affected by the interest - rate cycle. The net financing amount has been mainly positive but showed a downward trend. Rated bonds are mainly of Baa1 grade, and the lower the rating, the higher the interest rate [54][59][66]. - **Chinese Banks' Overseas Bonds**: As of October 21, the outstanding amount was 7.6 billion US dollars, mainly ordinary bank bonds. US dollars are the main currency, and most of the rated bonds have high credit ratings. The financing rhythm is significantly affected by cost, and the net financing amount has been negative since 2022 [69][70]. 3.2 Review and Enlightenment of Credit Risks of Overseas Subordinated Bank Bonds - **Deutsche Bank's Interest Payment Risk in 2016**: The huge loss in 2015 led to concerns about its AT1 bond interest payment ability, causing a sharp decline in the European bank AT1 market. After Deutsche Bank announced a bond repurchase, market sentiment eased [83]. - **Deutsche Bank's Non - Redemption Cases in 2020 and 2025**: In 2020, it was due to the lower reset coupon compared to the refinancing cost; in 2025, it was to reduce exchange losses. Non - redemption may send a negative signal to the market [90][91]. - **UBS's Full Write - down of Credit Suisse's AT1 Bonds in 2023**: This event violated the traditional "debt before equity" repayment order, causing market concerns. It highlighted the importance of the "write - down clause" in AT1 bonds, regulatory powers, and regulatory differences [101][103][111]. - **Banco Popular Español's Case in 2017**: The bank's financial situation deteriorated rapidly. After being recognized as "failing or likely to fail" by the ECB, its AT1 bonds were first converted into shares and then fully written down, revealing the risk of regulatory judgment [112][115][118]. - **Banca Monte dei Paschi di Siena's Case in 2017**: After multiple self - rescue failures, the Italian government intervened. As a condition for state aid, the bank's AT1 bonds were forcibly converted into common shares, indicating that subordinated creditors will bear losses first in case of government assistance [119][123][124]. - **Bank of Jinzhou's Interest Payment Cancellation in 2019**: The direct reason was that the capital adequacy ratio did not meet regulatory requirements. After the cancellation, the bond price dropped, and it affected investors' confidence in other small and medium - sized Chinese banks' AT1 bonds [125][129]. 3.3 Pricing of Overseas Bank Bonds - **Pricing Drivers**: The pricing of overseas bank bonds is driven by the benchmark interest rate and credit spread. The spread of bank subordinated bonds is mainly affected by risk events, while that of ordinary bank bonds is dominated by liquidity premium [134]. - **Spread Composition**: The bank bond spread consists of liquidity premium and credit risk premium. Subordinated bonds such as AT1 and AT2 have a variety premium compared to ordinary bank bonds, which is an important part of the credit risk premium. Internationally, the spread between AT1, AT2, and ordinary bank bonds is larger, and AT1 is often classified as high - yield bonds [134].

宏观 10 月 FOMC：鲍威尔意外表示 12 月 降息仍有变数 证券研究报告 联储 10 月会议如期降息 25bp，并宣布 12 月 1 日开始结束缩表，但鲍威尔 称 12 月降息仍可能有变数（far from foregone decision），表态偏鹰派。 联储 10 月会议如期降息 25bp，基准利率降至 3.75%-4%，Miran 要求降息 50bp，而堪萨斯联储主席施密德要求不降息；同时，联储宣布从 12 月 1 日 起停止缩表。会前市场普遍定价联储 12 月会议再降息 25bp，但鲍威尔在记 者会中表示，12 月降息仍可能有变数（far from foregone decision），需观 察后续数据再做决定。鲍威尔表态偏鹰派导致市场降息预期回落，美元有所 回升。截至北京时间凌晨 4:30，相较会议前，对 2025 年 12 月、2026 年降 息预期分别收窄 4bp、1bp 至 17bp、69bp；2y、10y 美债收益率分别上行 8bp、6bp 至 3.59%、4.07%；美元指数上涨 0.4%至 99.2；标普 500、道指 分别下跌 0.2%、0.4%，纳指基本持平，黄金下跌 1.1 ...

Macro Insights - The Federal Reserve's October meeting resulted in a 25 basis point rate cut, with Chairman Powell indicating that December's rate cut remains uncertain, leading to a decrease in market expectations for future cuts [2][3] - The Chinese Yuan has appreciated by 2.8% against the US dollar this year, with a notable 12% increase against the Japanese Yen since July, indicating a shift towards an "independent trend" in the Yuan's valuation [2][3] Fixed Income - In October, the People's Bank of China announced a resumption of bond purchases, leading to a significant rise in government bond futures [5][6] - The US financial sector is seeing a new model of support for national strategy, with JPMorgan's $1.5 trillion initiative focusing on key industries and supply chain resilience [6] Energy and New Energy - The "15th Five-Year Plan" emphasizes the development of new energy storage and smart grid infrastructure, benefiting companies in the storage and wind power sectors [10][11] - A significant $80 billion investment in nuclear power by Cameco and Brookfield Asset Management aims to enhance energy infrastructure in the US [11] Real Estate - The "15th Five-Year Plan" outlines a shift towards high-quality development in real estate, focusing on improving housing quality and supply systems, which may enhance long-term value in the sector [13] Financial Services - The brokerage sector is experiencing a slight decrease in positions, with a focus on high-quality financial strategies amid a recovering market sentiment [9] - The banking sector shows signs of improvement, with a notable increase in credit issuance and a stable asset quality outlook [23] Key Companies - Huafeng Measurement Control reported a 67.21% year-on-year revenue increase in Q3, driven by cost reduction and improved testing performance [17] - Shaanxi Coal and Chemical Industry's Q3 revenue showed a 6.03% quarter-on-quarter increase, benefiting from a recovery in coal prices [18] - Kweichow Moutai's Q3 revenue growth was lower than expected, but the company is implementing strategies to boost market confidence [19] - Guangdong Investment's Q3 performance reflects a stable business model with strong cash flow, supporting high dividend returns [20] - Yutong Bus reported a 32.27% year-on-year revenue increase in Q3, driven by strong export performance [21]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company has shown steady profit growth and is actively developing new materials, with a revenue increase of 14.50% year-on-year in Q3 2025, reaching 811 million yuan [2][3] - The company's net profit attributable to shareholders for Q1-Q3 2025 was 180 million yuan, reflecting a year-on-year increase of 16.64% [2][3] - The gross margin improved to 23.20% in Q1-Q3 2025, up from 21.8% at the beginning of the year, aided by the growth in its energy-saving and environmental protection business [3] Summary by Sections Financial Performance - In Q3 2025, the company achieved a revenue of 811 million yuan, a year-on-year increase of 14.50% and a quarter-on-quarter decrease of 7.46% [2] - For the first three quarters of 2025, the total revenue was 2.326 billion yuan, up 20.49% year-on-year, with a net profit of 180 million yuan, reflecting a 16.64% increase [2][3] Business Development - The company is actively expanding into strategic emerging fields with new materials, including rare earth separation and lithium extraction [4] - The subsidiary, Sanuo New Materials, has established long-term partnerships with major rare earth suppliers [4] - The company's main products in the target material business include high-purity molybdenum and tungsten targets, which are essential for display panels and photovoltaic applications [4] Profit Forecast and Valuation - The company is projected to achieve net profits of 232 million yuan, 258 million yuan, and 310 million yuan for 2025, 2026, and 2027, respectively, with corresponding EPS of 0.22, 0.25, and 0.30 yuan [5] - The report assigns a target price of 9.64 yuan for 2026, based on a PE ratio of 20.3X for energy-saving and environmental protection business and 57.4X for new materials [5]