Group 1 - The core view of the report emphasizes that short-end sinking strategies have outperformed in September 2025, with various credit strategies yielding positive returns due to sufficient coupon income covering capital loss, although the contribution to overall returns was limited [2][3][4] - Historical performance of credit strategies in October since 2021 shows that most strategies have achieved positive returns, with a notable success rate for bullish credit positions in October [10][24] - The report suggests that in the current steep yield curve environment, increasing allocation to medium and long-term credit bonds and utilizing bond repurchase agreements to introduce leverage could significantly enhance the returns of the strategies [10][24] Group 2 - In September 2025, the market was cautious due to concerns over new public fund sales regulations, leading to a tightening of credit bond market sentiment [3][4] - The report highlights that the performance of various credit strategies in September was negatively impacted by rising interest rates, with some strategies recording capital losses exceeding 1% [3][4][5] - The anticipated liquidity support from the central bank's operations in October 2025 is expected to bolster the bullish logic for credit investments, despite potential constraints from institutional behavior and policy impacts [17][24]

Issuance and Market Performance - In the first nine months of 2025, a total of 15 companies completed their IPOs, raising 4.9 billion yuan, surpassing the total fundraising of 2024[2] - In September, three companies went public, raising 0.92 billion yuan, maintaining an accelerated IPO pace[2] - The average first-day increase for newly listed companies in September was 397%, with the average for Q3 2025 at 339%[2][24] Subscription Trends - The average subscription amount for September reached a record high of 724.8 billion yuan, with the average for Q3 at 130.7 million yuan, significantly higher than the previous quarter's 91.8 million yuan[2][27] - The average subscription amount for the first nine months of 2025 was 607.9 billion yuan, a substantial increase from 36.9 billion yuan in 2023 and 212.9 billion yuan in 2024[27] - The average expected return for top-tier subscriptions in September was 46,000 yuan, with an overall expected return of 340,000 yuan for the first nine months[31] Company Quality and Financial Metrics - The average revenue for newly listed companies in 2024 was 0.89 billion yuan, with an average net profit of 0.13 billion yuan, indicating a significant improvement in financial metrics compared to previous years[35] - The average gross margin for newly listed companies in 2024 was 28%, reflecting an upward trend in company quality[35] Market Dynamics and Risks - The online subscription success rate has decreased to an average of 0.044% in the first nine months of 2025, indicating increasing competition for new shares[27] - Risks include potential changes in IPO review policies and market enthusiasm for new listings[2]

Group 1: Investment Insights on Bank Preferred Shares - Bank preferred shares dominate the preferred stock market, with a total issuance of 58 shares raising 908.66 billion yuan, of which bank preferred shares account for 92.35% [5][6] - As of September 16, 2025, there are 31 existing preferred shares with a total scale of 705.88 billion yuan, of which 28 are bank preferred shares totaling 701.15 billion yuan [5][6] - Investment in bank preferred shares should adopt a defensive strategy considering "redemption risk," especially in a declining interest rate environment where banks may redeem high fixed-rate preferred shares to refinance at lower costs [8][7] Group 2: Waste-to-Energy Industry Insights - In Q3 2025, the waste-to-energy sector saw 32 projects awarded with a total investment of approximately 2.3 billion yuan, with 75% of these projects focused on upgrading existing facilities rather than new constructions [10][11] - The price of waste cooking oil in China reached a three-year high, with the average price for northern waste oil recorded at 7,374 yuan/ton, reflecting a 3.23% increase month-on-month [12][13] - The tightening supply and demand dynamics are expected to support further price increases in the future, benefiting companies with raw oil resources [13][12]

M&A Overview - A total of 59 new disclosed equity transactions occurred in the period from September 15 to September 30, 2025, with a total transaction value of 9.45 billion RMB[3] - Among these, 25 were acquisition events, with 4 initiated by companies listed on the Beijing Stock Exchange (BSE)[10] - Major projects included significant investments in emerging industries such as new energy, biomedicine, semiconductors, and scientific instruments[10] Recent Acquisitions - Four new acquisition events were reported, including Huaitong New Materials planning to acquire 51% of Baoding Sanyuan, and Chuangyuan Xinke proposing to acquire 100% of Weiyu Tiandao for up to 900 million RMB[15] - The acquisition of Weiyu Tiandao is expected to constitute a major asset restructuring and is focused on expanding capabilities in satellite testing[5] Financial Performance - Weiyu Tiandao achieved revenue of 211.25 million RMB and a net profit of 51.65 million RMB in 2024, with an estimated PE ratio of no more than 17.4 times based on the acquisition price[30] - The acquisition is anticipated to enhance Chuangyuan Xinke's capabilities in integrated testing solutions for communication and navigation[27] Market Trends - The BSE is witnessing a trend towards vertical expansion, business upgrades, and market expansion, particularly in high-growth sectors like new energy and advanced manufacturing[42] - The integration of technology and business models is expected to drive innovation and enhance competitive advantages in the market[33]

Market Performance - In September 2025, the North Exchange 50 Index decreased by 2.90%, continuing to underperform compared to the ChiNext and STAR Market indices [6][12][30] - The North Exchange 50 Index had a year-to-date increase of 47% for the first nine months of 2025, but this was surpassed by the ChiNext 50 and STAR 50 indices [3][6][12] - The trading volume in September 2025 rose to 26.019 billion shares, but the trading value fell to over 610 billion yuan, with the average daily trading value dropping from 30.5 billion yuan in August to 28 billion yuan in September [14][17][22] Industry Insights - In September 2025, only 15 companies saw their stock prices increase by 10% or more, with five companies, including Tianhong Lithium and Beitery, experiencing gains exceeding 20% [13][16] - The construction materials and home appliances sectors showed relatively better performance in September 2025 [11][15] Valuation Metrics - As of September 30, 2025, the overall price-to-earnings (PE) ratio of the North Exchange A-shares reached 50 times, which is 109% of the ChiNext's valuation and 62% of the STAR Market's valuation [22][30] - The average PE ratio for newly listed companies from January 1, 2024, to September 30, 2025, was 13.99 times, with an average first-day price fluctuation of 240% [41][42] New Listings and IPOs - From January 1, 2024, to September 30, 2025, a total of 38 companies were newly listed on the North Exchange, with no new companies listed in the last week of September 2025 [36][43] - One company, Xintianli, passed the listing committee meeting, while two companies, Hengdao Technology and Xinrui Electronics, are under inquiry [43][44]

Industry Overview - The global headphone market grew from $8.4 billion in 2013 to $58.3 billion in 2022, with a CAGR of 24.02%[15] - China's headphone industry output increased from ¥49.256 billion in 2013 to ¥137.422 billion in 2021, achieving a CAGR of 13.68%[20] - The wireless headphone segment in China saw a rapid growth with a CAGR of 36.66% from ¥7.839 billion in 2013 to ¥95.351 billion in 2021[20] Market Trends - The high-fidelity audio system market is projected to reach $3.101 billion globally by 2024, with a CAGR of 3.90% from 2020[26] - China's high-fidelity audio system market is expected to grow to $0.652 billion by 2024, with a CAGR of 2.84%[31] - The professional audio market globally is forecasted to reach ¥139.824 billion by 2024, with a CAGR of 5.00% from 2020[34] Company Performance - HIFIMAN's revenue for H1 2025 was ¥107 million, a year-on-year increase of 20.77%[45] - HIFIMAN's gross margin and net margin for 2024 were 70.10% and 29.42%, respectively[45] - XGIMI International's revenue for H1 2025 was ¥226 million, with a slight decrease of 0.13% year-on-year[51] Market Sentiment - The median stock price change for the North Exchange consumer service sector was -6.65% from September 22 to September 26, 2025[57] - The median P/E ratio for the consumer service sector decreased from 48.4X to 46.1X during the same period[62] - The total market capitalization for the North Exchange consumer service sector fell from ¥123.863 billion to ¥117.746 billion[67]

Investment Rating - The report maintains a "Positive" investment rating for the media internet industry [3] Core Insights - The report highlights the self-upgrading of the industry through group broadcasting, which is characterized by team-based production, thematic content, interactive engagement, and diversified monetization [5][10] - The audience for male and female groups is primarily female, aged 18-40, indicating a shift in the consumption landscape towards emotional engagement and social atmosphere [4][66] - Regulatory requirements and strict supervision are driving industry consolidation, with platforms like Douyin implementing management norms to foster a healthier environment for quality group broadcasting [4][74] - The international market presents opportunities for cultural output through group broadcasting, with Southeast Asia and Europe being key regions for localized operations [4][99] Summary by Sections Group Broadcasting Overview - Group broadcasting is defined as a performance live-streaming format where multiple individuals showcase talents, resembling small-scale variety shows [5][10] - It simplifies traditional talent selection processes into a more efficient and interactive format, enhancing content quality through professional team involvement and advanced technology [30][36] Industry Growth and Trends - The MCN industry has seen a slowdown in growth, with a significant number of small-scale institutions coexisting with a few large players, indicating a trend towards maturity [16][19] - Douyin's user base surpassed 1 billion in March 2025, with an average usage time of 46.54 hours per month, highlighting the platform's growing influence [66][74] Monetization and Commercialization - The primary monetization method remains direct user tipping, supplemented by B2B collaborations and offline resource expansion [83][87] - Group broadcasting has begun to explore e-commerce and IP monetization, with successful collaborations between group broadcasters and brands leading to significant sales [87][90] International Expansion - The report notes the potential for group broadcasting to serve as a cultural export, with successful models emerging in international markets like Indonesia and Vietnam [99][101] - Domestic companies are actively expanding overseas, establishing local operations to adapt to regional markets while maintaining their core broadcasting standards [101][104] Investment Recommendations - The report suggests focusing on high-growth opportunities within the industry, particularly companies directly involved in group broadcasting, platforms benefiting from its growth, and those with influencer or artist management capabilities [108][109]

Investment Rating - The report indicates a negative trend in the stock prices of the consumer service sector on the Beijing Stock Exchange, with a median decline of -6.65% for the week [2][42]. Core Insights - The Chinese electroacoustic industry has maintained rapid development since the 1980s, with leading domestic manufacturers transitioning from low-end markets to high-end electroacoustic markets [5][6]. - The global headphone market has grown from $8.4 billion in 2013 to $58.3 billion in 2022, with a CAGR of 24.02%. China's headphone industry output value increased from 49.256 billion yuan in 2013 to 137.422 billion yuan in 2021, achieving a CAGR of 13.68% [9][12]. - The report highlights two companies planning to list on the Beijing Stock Exchange: HIFIMAN, a high-end electroacoustic brand, and XGIMI International, which focuses on high-fidelity audio products [2][30]. Summary by Sections 1. Domestic Leading Electroacoustic Manufacturers - The Chinese electroacoustic industry has developed a complete industrial system and supply chain, with manufacturers increasing R&D investments to enhance technical capabilities [6][7]. - The market for high-fidelity audio systems is expected to grow, with the global market projected to reach $3.101 billion by 2024, and China's market expected to reach $652 million [16][20]. 2. Overall Market Performance - The median price-to-earnings (P/E) ratio for the consumer service sector on the Beijing Stock Exchange decreased from 48.4X to 46.1X, indicating a decline in market valuation [42][45]. - The total market capitalization of consumer service enterprises fell from 123.863 billion yuan to 117.746 billion yuan during the reporting period [49][51]. 3. Industry P/E Ratios - The median TTM P/E ratio for the broader consumer industry decreased from 61.2X to 57.2X, reflecting a downward trend in valuations across various sectors [56][58]. - The P/E ratio for the food and beverage sector also saw a decline, dropping from 43.7X to 41.7X [58][60]. 4. Company Announcements - Dahu Biological has established a wholly-owned subsidiary to extend its business into pig farming, indicating a strategic move to diversify its operations [64][65].

Fixed Income - The bond market experienced significant adjustments in September, influenced by strong stock market performance and institutional behaviors, particularly in technology stocks, leading to expectations of economic recovery [2][8][9] - The current configuration of the bond market is highlighted as having substantial value, with a potential stabilization and a downward trend in bond yields anticipated [11][14][16] - The People's Bank of China has indicated a need for continued monetary policy support, with expectations for further interest rate cuts as economic data shows signs of weakness [10][14] Transportation - The express delivery sector is witnessing a price increase, with major companies raising rates in Shanghai, indicating a shift from price competition to quality-driven growth, which is expected to enhance profitability [22][23][34] - The shipping and port sector is recommended for investment due to improved industrial profits and a favorable macroeconomic environment, with specific attention to oil transportation and shipping companies benefiting from OPEC+ production increases [24][25][35] Media - The media industry is focusing on the professionalization and quality enhancement of group broadcasts, with initiatives aimed at cultivating high-quality content and innovative cultural promotion [5][6] Automotive - Tesla's upcoming FSD V14 release is anticipated to significantly impact the autonomous driving sector, potentially leading to a paradigm shift in technology and competition within the industry [5][6] Pharmaceuticals - The pharmaceutical company Sinopharm is strategically expanding its CKM pipeline, focusing on chronic disease management, with several products entering clinical stages, reinforcing its leadership in the Chinese market [6][7] Public Utilities and Environmental Protection - The renewable energy sector is facing a decline in new installations, but there is optimism for policy support for green hydrogen and methanol, which could drive growth in the coming years [6][7] Metals and New Materials - The copper market is expected to enter an upward cycle due to supply disruptions, with significant price increases anticipated as demand remains strong [6][7]

Investment Rating - The investment rating for the company is "Buy" (首次) [6] Core Views - The company is expected to benefit from the AI trend, with its computing and terminal businesses likely to initiate a new growth phase [6] - The company has a solid market position, ranking fourth globally and second domestically in the telecommunications equipment market, with an 11% market share [8] - The company is transitioning towards a "connectivity + computing" model, with significant growth in its enterprise business, particularly in server and storage products [8] Financial Performance Summary - Revenue projections for the company are as follows: - 2023: 124,251 million RMB - 2024: 121,299 million RMB - 2025E: 138,475 million RMB - 2026E: 156,636 million RMB - 2027E: 174,408 million RMB - The expected growth rates for revenue are: - 2024: -2.38% - 2025E: 14.16% - 2026E: 13.11% - 2027E: 11.35% [7] - The projected net profit attributable to the parent company is: - 2023: 9,326 million RMB - 2024: 8,425 million RMB - 2025E: 8,380 million RMB - 2026E: 8,937 million RMB - 2027E: 10,379 million RMB - The expected growth rates for net profit are: - 2024: -9.66% - 2025E: -0.54% - 2026E: 6.65% - 2027E: 16.14% [7] - The company’s earnings per share (EPS) projections are: - 2024: 1.76 RMB - 2025E: 1.75 RMB - 2026E: 1.87 RMB - 2027E: 2.17 RMB [7] Business Segments - The company is focusing on three main business areas: operator networks, government and enterprise business, and consumer products [8] - The operator network business has a stable foundation, with a gross margin of 52.94% in the first half of 2025, serving as a significant cash flow source [8] - The enterprise business has seen a doubling in revenue, driven by increased investment in computing infrastructure by domestic and international clients [8] - The terminal business is expanding with the introduction of AI technology in devices, including the launch of the Nubia Z70 Ultra, the world's first AI phone with embedded DeepSeek-R1 [8] Valuation and Comparables - The projected net profits for 2025-2027 are 83.80 billion RMB, 89.37 billion RMB, and 103.79 billion RMB, respectively [8] - The current price-to-earnings (P/E) ratios are projected to be 17.57, 16.45, and 14.17 for 2025, 2026, and 2027, respectively [8] - Comparable companies' average P/E for 2025 is 45.40 [8]