Investment Rating - The investment rating for the construction and decoration industry is "Positive" (maintained) [2] Core Viewpoints - Spring construction resumption data shows year-on-year improvement, with a notable differentiation in regional and project structures. As of February 25, 2026, the national construction resumption rate is 8.9%, labor employment rate is 15.5%, and funding availability rate is 29%, with improvements of 1.5, 3.7, and 9.4 percentage points respectively compared to the previous year. Both real estate and non-real estate projects have seen synchronized improvements [3][10] - The construction sector is experiencing a revaluation of resource attributes among central and state-owned enterprises due to the rising prices of non-ferrous metals and the recovery of resource product demand. Companies with substantial resource reserves are expected to see their resource value gradually emerge [4][14] Summary by Sections Construction Resumption Data - As of February 25, 2026, the national construction resumption rate is 8.9%, labor employment rate is 15.5%, and funding availability rate is 29%, with year-on-year increases of 1.5, 3.7, and 9.4 percentage points respectively. The recovery pace varies significantly by region, with Jiangsu, Shanghai, and Shandong showing faster progress and better funding conditions compared to other regions [3][10][11] Infrastructure Investment - As of March 1, 2026, the cumulative issuance of special bonds reached 8,387.09 billion, with a year-on-year increase of 40.54%. The weekly issuance of special bonds was 1,272.40 billion, while the city investment bonds had a net financing amount of -480.78 billion [5][27] Market Performance - The Shanghai Composite Index rose by 1.98%, the Shenzhen Component Index by 2.80%, and the ChiNext Index by 1.05%. The construction and decoration index increased by 4.97%, with all sub-sectors showing gains, particularly chemical engineering and municipal engineering [6][22] Company Dynamics - Notable project wins include China Construction winning major projects worth a total of 27.83 billion, and other companies like Jin Tanglang and Huadian Ke Gong also securing significant contracts [19][21]

Investment Rating - The investment rating for the company is "Buy" (首次) [5] Core Views - The report indicates that the operational turning point has been reached, and the new normal of liquor consumption favors strong brands [5] - The company's channel reform has shown short-term effects, with long-term value potentially increasing [7] - The report highlights that the demand for liquor has exceeded expectations during the Spring Festival, marking a recovery in consumption patterns [7] Financial Performance Summary - Revenue projections for the company are as follows: - 2023: 150,560 million RMB (18.04% YoY growth) - 2024: 174,144 million RMB (15.66% YoY growth) - 2025: 181,042 million RMB (3.96% YoY growth) - 2026: 193,768 million RMB (7.03% YoY growth) - 2027: 208,833 million RMB (7.78% YoY growth) [6] - Net profit attributable to the parent company is projected as: - 2023: 76,155 million RMB (18.23% YoY growth) - 2024: 87,829 million RMB (15.33% YoY growth) - 2025: 90,850 million RMB (3.44% YoY growth) - 2026: 97,485 million RMB (7.30% YoY growth) - 2027: 105,222 million RMB (7.94% YoY growth) [6] - Earnings per share (EPS) are forecasted as: - 2023: 60.81 RMB - 2024: 70.14 RMB - 2025: 72.55 RMB - 2026: 77.85 RMB - 2027: 84.02 RMB [6] Market Dynamics - The report notes a significant increase in sales through the self-operated e-commerce platform "i Moutai," with over 2.12 million orders in January 2026, contributing approximately 8.6 billion RMB in tax revenue [7] - The report emphasizes the diversification and marketization of Moutai's channels, reducing reliance on traditional distributors [7] - The report suggests that the liquor industry is entering a new phase of adjustment, with a narrowing decline in demand and a clear differentiation among brands and distributors [7]

Investment Rating - The investment rating for the automotive industry is "Positive" (maintained) [1] Core Insights - The report highlights that with the global expansion of AI capital expenditure, the diesel generator segment is expected to benefit directly from the increased demand for AI data center construction (AIDC). The domestic supply chain is anticipated to achieve both volume and price increases due to the supply-demand imbalance in diesel generators [4][20] - The global diesel generator market is projected to reach approximately $22.6 billion by 2026, with overseas demand at $19.6 billion and domestic demand at $3 billion. This corresponds to a global demand of about 42,000 units, with overseas demand at 35,600 units and domestic demand at 6,600 units [24][25] Summary by Sections 1. Diesel Generators: Key Power Source for Data Centers - Diesel generators are a critical power source for data centers, typically comprising a system of "grid + UPS + diesel generators" to provide backup power during outages [9] 2. Demand: Higher Overseas than Domestic, with Significant Growth Potential in Domestic Market - The report indicates that global AI capital expenditure is expected to exceed $600 billion in 2026, a year-on-year increase of over 70%. Major companies like Google, Amazon, Meta, and Microsoft are significantly increasing their investments in AI infrastructure [15][17] - Domestic companies such as ByteDance, Alibaba, and Tencent are also optimistic about their AI capital expenditure plans for 2026, contributing to the overall demand for diesel generators [15][18] 3. Supply: Acceleration of Domestic Substitution, Price and Profitability Expected to Improve - The global diesel generator market is dominated by foreign companies like Cummins and Caterpillar, but their cautious expansion cycles have led to supply shortages. Domestic suppliers are expected to gain market share due to price and delivery advantages [27] - The average price of a single unit in the domestic market is close to 3 million yuan, with prices expected to rise continuously from 2024. The price of units using foreign engines has increased by about 20% [27]

Investment Rating - The investment rating for the transportation industry is "Positive" (maintained) [4] Core Views - The current demand in the e-commerce express delivery industry is resilient, and the top-down "anti-involution" is driving up express prices, releasing profit elasticity for companies, indicating a favorable long-term competitive opportunity for e-commerce express delivery [17] - The oil transportation market may see a significant price increase due to escalating conflicts in the Middle East, which could limit Iranian oil exports [5] - The shipping market is expected to benefit from OPEC+ production increases and the Federal Reserve's interest rate cuts, enhancing the elasticity of VLCC freight rates [17] Industry Dynamics Tracking Shipping and Ports - The SCFI comprehensive freight index increased by 6.5% week-on-week to 1333 points, with notable increases in shipping rates to Europe, the Mediterranean, and the US [5] - The BDTI index for crude oil shipping rose by 6.47% to 1870 points, with VLCC TCE increasing by 30.2% [6] - The BCTI index for refined oil shipping increased by 3.3% to 838 points, with significant rises in rates for LR1 and MR vessels [6] - The BDI index for bulk carriers rose by 2.7% to 2120 points, indicating a positive trend in bulk shipping rates [6] - New ship prices have generally decreased, with the new ship price index down by 0.57 points to 182.15 points [6] Express Logistics - The Zhejiang Postal Administration has outlined nine key tasks for 2026, focusing on maintaining fair competition and enhancing service quality in the express delivery sector [9] - During the Spring Festival, the express delivery volume in Yiwu reached a historical high of 56.3 million packages in a single day, with a year-on-year growth of 10% in package volume [10] - Shentong Express emphasized the role of AI in operations, aiming for a collaborative strategy focused on experience, market share, and profit [11] Aviation and Airports - During the 2026 Spring Festival holiday, civil aviation transported 22.05 million passengers, a year-on-year increase of 7.7% [13] - The number of inbound foreign tourists increased by 49.5% in 2025, indicating a recovery in international travel [14] Road and Rail - National logistics operations were orderly from February 16 to February 22, with rail freight down by 10.72% and highway freight traffic down by 70.59% [16] Sub-industry Data Tracking Express Logistics - In December 2025, the national express service volume reached 18.21 billion pieces, a year-on-year increase of 2.3% [26] - In January 2026, YTO Express achieved a business volume of 2.943 billion pieces, a year-on-year increase of 29.75% [33] Shipping - The Clarksons comprehensive freight rate was $37,591 per day, a week-on-week increase of 10.37% [49] - The BDI index for bulk shipping rose by 2.70% [49] Aviation - In January 2026, civil aviation completed a passenger transport volume of approximately 63 million, a year-on-year decrease of 2.9% [59] Ports - From February 16 to February 22, 2026, China's port cargo throughput was 187.61 million tons, a week-on-week decrease of 21.75% [80]

Investment Rating - The report does not provide a specific investment rating for the industry [4] Core Views - The uranium market is currently in a "structural tight balance + policy reinforcement" phase, with long-term growth expectations driven by nuclear power extensions, new reactor constructions, and small modular reactors (SMRs) [14] - The supply side is constrained by project approval cycles, capital expenditure restrictions, and geopolitical risks, leading to a slow release of new effective production capacity [14] - The report suggests that companies with quick production capacity, processing capabilities, and inventory adjustment abilities are more likely to achieve excess returns amid price fluctuations [14] - The rebuilding of the domestic nuclear fuel supply chain in the U.S. is accelerating, with policy support and strategic reserve mechanisms gradually being implemented, indicating a potential "volume and price increase" phase in the industry [14] - The report recommends focusing on UUUU, which is expected to benefit from increased sales and profit margin expansion in this environment [14] Summary by Sections 1. Uranium Industry - UUUU reported its Q4 2025 financial results, achieving over 170,000 pounds of new uranium production and over 100,000 pounds of U3O8 processed at White Mesa [11][12] - The company ended the year with over 200,000 pounds of uranium inventory, providing flexibility for 2026 deliveries [11] - UUUU's sales for 2025 reached 65,000 pounds at an average price of $74.20 per pound, with production costs at Pinyon Plain estimated between $23 and $30 per pound [12][13] - The weighted average cost of finished products is expected to decrease from $43 per pound by the end of 2025 to just above $30 per pound [13] - The company holds six long-term contracts covering about 50% of its capacity, with management emphasizing the importance of maintaining flexibility in the spot market [12][13] - For 2026, UUUU anticipates uranium mining volumes of 200,000 to 250,000 pounds and processing volumes of 250,000 pounds [13] - The report predicts that the gross margin for uranium business could rebound to over 50% as sales volumes increase and costs decrease [13] 2. Commercial Aerospace - The commercial aerospace sector showed relative stability, with Rocket Lab and Redwire's Q4 2025 financial reports being the main focus [20] - Rocket Lab reported a revenue of $601.8 million for the year, a 38% year-on-year increase, with a record Non-GAAP gross margin of 44.3% [20] - Redwire also showed strong growth, with Q4 revenue of $108.8 million, a 56.4% increase year-on-year, and a record backlog of $411.2 million [20] - However, development risks and delays in new medium-lift rockets like Neutron and Starship remain core issues for the industry [20] - The report indicates that the commercial aerospace sector has strong fundamental catalysts, with high-frequency launches and defense contracts driving revenue growth [20]

Investment Rating - The investment rating for the non-bank financial sector is "Positive" (maintained) [1] Core Insights - The report highlights that the insurance sector has shown strong performance, with over 50 insurance asset management products achieving an annualized return exceeding 100% since the beginning of 2026. This reflects the excellent investment research capabilities of insurance companies in a structural market environment [5] - The stock investment balance of the insurance industry reached 3.73 trillion yuan at the end of 2025, a year-on-year increase of 53.8%, indicating a significant increase in equity allocation [5] - The report anticipates that the net profit elasticity of insurance companies will continue to improve in a "slow bull" market environment for equities [5] Summary by Sections Securities Industry Data - In February 2026, the average daily trading volume of A-shares was 2.83 trillion yuan, a year-on-year increase of 34.00% but a month-on-month decrease of 22.47% [12] - The margin trading balance at the end of February 2026 was 2.67 trillion yuan, up 40.50% year-on-year but down 1.78% month-on-month, indicating sustained participation of leveraged funds [13] - The report notes a significant year-on-year increase in IPO and refinancing funds raised in February 2026, with IPOs raising 60.76 billion yuan (up 4642.56%) and refinancing raising 342.82 billion yuan (up 439.99%) [13] - The issuance of new public funds in February 2026 was 17.847 billion units, a year-on-year decrease of 79.86% and a month-on-month decrease of 88.92% [13] Key Company Announcements - Zhejiang Securities announced a change in its president, with Qian Wenhai resigning and Cheng Jingdong appointed as the new president [20] - Founder Securities reported that its major shareholder, China Cinda, did not execute its share reduction plan as scheduled [21]

Group 1 - The average first-day increase for new stocks in February 2026 was 140%, indicating a slight cooling in market enthusiasm compared to 2025, where the average was 368% [2][24][28] - In February 2026, three companies were listed, raising a total of 7 billion yuan, continuing a rapid IPO pace [3][19][23] - The average revenue for newly listed companies in the first two months of 2026 was 8.1 million yuan, with an average net profit of 1.0 million yuan, reflecting an improvement in company quality compared to previous years [41][42][61] Group 2 - The average online subscription funds in February 2026 reached 8.039 billion yuan, maintaining high investor interest despite a slight decrease from previous months [31][29] - The average expected return for top-tier subscriptions in February 2026 was 11,000 yuan, with a total expected return of 78,000 yuan for the year to date [37][40] - The average subscription limit for new stocks in February 2026 was 1.01 million yuan, indicating a trend towards higher subscription capacities [32][36] Group 3 - In February 2026, five companies passed the IPO review, covering high-end manufacturing and intelligent equipment sectors, with several expected to raise over 400 million yuan [52][49] - As of the end of February 2026, 200 companies were preparing for IPOs, with an average review cycle of 386 days, showing a slight improvement in the speed of the IPO process [57][53] - The new three-board market saw 18 companies listed in February 2026, with an average revenue of 6.0 million yuan and a net profit of 0.6 million yuan, indicating a trend of higher quality listings [59][61]

Fixed Income/Banking - The total bond custody scale increased by 0.76 trillion yuan to 179.3 trillion yuan in January 2026, with a net increase of 0.46 trillion yuan compared to December 2025 [8] - Long-term bonds experienced a pullback at the end of February, primarily due to profit-taking by brokers and funds following the relaxation of real estate policies in Shanghai, presenting a potential opportunity for investors [8][11] - The report anticipates that the 10-year government bond yield may reach a low of 1.75% in Q1 and 1.70% in Q2, with an expected range of 1.6%-1.9% for the year [11] Transportation - The Middle East conflict may significantly increase oil shipping rates, with the potential for a substantial rise in oil transport prices due to geopolitical tensions [12][13] - The express delivery sector in Zhejiang province reported a record high of 56.3 million packages processed in a single day during the Spring Festival, reflecting a 10% year-on-year increase in package volume [16][17] - The civil aviation sector transported 22.05 million passengers during the 2026 Spring Festival, marking a 7.7% increase compared to the previous year [20] Pharmaceutical - The pharmaceutical index rose by 0.50% in late February, with a focus on cyclical sectors like chemicals and non-ferrous metals, while innovative drugs continued to adjust [28] - Eli Lilly's oral weight-loss drug, Orforglipron, is expected to lead the global commercialization of small molecule GLP-1RA drugs in 2026, showing significant advantages in efficacy and convenience over competitors [30] - The report suggests focusing on companies with strong Q1 performance and undervalued innovative drug stocks, as well as those with potential for price increases [28][32] Media - Perfect World’s new game "Yihuan" is set to launch in April 2026, featuring innovative gameplay that differentiates it from mainstream competitors [5] - The release of Nano Banana2 has improved image generation speed and efficiency, with a significant reduction in output costs [5] Real Estate - New housing policies in Shanghai aim to stimulate demand, including increased loan limits for first-time homebuyers and subsidies for multi-child families [6] - In January 2026, new home transactions in 42 key cities totaled 760,000 square meters, a 282.1% increase from the previous month [6] Public Utilities and Environmental Protection - The report emphasizes the importance of "dual carbon" assessments and highlights key hydrogen energy projects as part of the energy sector's transition [6] - The hydrogen industry is expected to move from demonstration to industrial-scale promotion in 2026, supported by favorable policies and capital [6]

Investment Rating - The investment rating for the construction materials industry is "Positive" (maintained) [5] Core Insights - The electronic fabric sector is experiencing an upward trend, with potential price increases due to supply constraints and strong demand. Key companies to watch include China Jushi, Honghe Technology, and Zhongcai Technology [6] - The real estate chain is expected to benefit from policy expansions and urban renewal initiatives, with companies like Sankeshu, Beixin Building Materials, and Dongfang Yuhong being highlighted for investment [6] - The average price of 42.5 cement nationwide is 338.5 RMB/ton, showing a month-on-month decrease of 2.7 RMB/ton and a year-on-year decrease of 49.0 RMB/ton [17] - The average price of 5mm float glass is 1254.0 RMB/ton, with a month-on-month increase of 16.5 RMB/ton but a year-on-year decrease of 250.9 RMB/ton [38] - The average price of electronic yarn is 10550.0 RMB/ton, reflecting a month-on-month increase of 50.0 RMB/ton and a year-on-year increase of 1900.0 RMB/ton [50] Summary by Sections Section 1: Market Tracking - The construction materials index increased by 4.4% during the reporting period, outperforming the Shanghai Composite Index, which rose by 2.0% [10] - The top five gainers in the sector included Zaiseng Technology (+21.7%) and Qinglong Pipeline (+18.2%) [10] Section 2: Data Tracking Cement - The national average price for 42.5 cement is 338.5 RMB/ton, with a month-on-month decrease of 2.7 RMB/ton and a year-on-year decrease of 49.0 RMB/ton [17] - The cement inventory ratio is 64.1%, with a month-on-month decrease of 1.3 percentage points [17] Float Glass - The average price for 5mm float glass is 1254.0 RMB/ton, with a month-on-month increase of 16.5 RMB/ton [38] - Inventory levels for float glass increased by 4.3% month-on-month [38] Photovoltaic Glass - The average price for 2.0mm coated photovoltaic glass is 10.7 RMB/sqm, unchanged month-on-month [43] - Inventory days for photovoltaic glass increased by 19.3% month-on-month [43] Glass Fiber - The average price for non-alkali glass fiber yarn is 4565.0 RMB/ton, unchanged month-on-month [50] - The average price for electronic yarn is 10550.0 RMB/ton, reflecting a month-on-month increase of 50.0 RMB/ton [50] Carbon Fiber - The average price for large tow carbon fiber is 72.5 RMB/kg, unchanged month-on-month [53] - The average price for small tow carbon fiber is 95.0 RMB/kg, unchanged month-on-month [53]

Investment Rating - Investment rating: Positive (First time) [4] Core Viewpoints - The engineering machinery industry is a crucial pillar of national economic construction, with a projected global market size of USD 213.5 billion by 2024, of which the Chinese market will account for USD 23.4 billion, representing 11% [4][11] - The demand logic of the industry stems from domestic downstream new equipment demand, stock equipment upgrades, and overseas market expansion [4][22] - The industry has experienced significant changes, with domestic demand for excavators expected to rise from 55,000 units to 277,000 units by 2025-2030, achieving an ideal CAGR of 38% [4][73] - The revenue scale of China's engineering machinery industry is expected to recover at a rate of approximately 15% from 2024 to 2030, driven by the recovery of domestic demand and improved export growth [4][22] Summary by Sections Industry Overview - Engineering machinery is a vital industry with a global market exceeding USD 1 trillion, sensitive to changes in downstream industries [8][11] - The main products include excavators, cranes, loaders, and concrete machinery, with upstream materials like steel and hydraulic systems being critical [8][11] Historical Development - The Chinese engineering machinery industry has evolved through six stages over 70 years, from initial poverty to a mature market with significant global presence [4][25] - Key milestones include the establishment of the Engineering Machinery Bureau in 1961 and the rapid growth of the industry post-2004 due to government policies [25][27] Current Industry Changes - Domestic demand is expected to recover, with stock upgrades and overseas sales contributing to growth [4][22] - The industry is witnessing a shift towards more mature overseas markets, with Chinese companies gradually increasing their market share [4][23] Investment Analysis - The report suggests focusing on leading domestic engineering machinery manufacturers such as XCMG, SANY, LiuGong, Zoomlion, and Shantui [4][22] - The expected recovery in domestic demand and improved export growth present significant investment opportunities in the sector [4][22]