Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Views - The report indicates that the pig price is supported by both supply and demand factors as the market enters the winter consumption peak, with expectations for a gradual increase in the price center [11] - The beef cycle is expected to maintain its prosperity, with a decrease in cattle inventory and high calf prices indicating cautious expansion in the breeding sector [20] - The report highlights the acceleration of pig breeding losses and the strengthening logic of domestic pet products, recommending several companies in the pig farming and pet sectors [24] Summary by Sections Weekly Observation - The average price of pigs in China as of November 28, 2025, is 11.20 yuan/kg, with a week-on-week decrease of 0.42 yuan/kg and a year-on-year decrease of 5.27 yuan/kg [11] - The average weight of pigs at market is 129.22 kg, showing a week-on-week increase of 0.41 kg and a year-on-year increase of 2.49 kg [11] - The report notes that winter consumption favors larger pigs, leading to an increase in average weights at market [11] Weekly Views - The report states that pig and piglet prices are in a loss situation, which may accelerate the culling of breeding sows [24] - The feed sector is benefiting from the post-cycle of poultry and livestock, with strong overseas demand supporting prices [24] - The pet sector is experiencing a rise in domestic brands due to consumption upgrades and tariff barriers [24] Market Performance (November 24-28) - The agricultural index outperformed the market by 0.17 percentage points, with the Shanghai Composite Index rising by 1.40% and the agricultural index rising by 1.57% [26] - Key stocks leading the market include Jin Xin Nong (+12.60%), Yuan Fei Pet (+8.39%), and Xi Wang Food (+7.57%) [26] Price Tracking (November 24-28) - The average price of pigs is 11.19 yuan/kg, down 0.45 yuan/kg from the previous week; piglet prices are 19.19 yuan/kg, up 0.04 yuan/kg [33] - The average wholesale price of beef is 66.39 yuan/kg, showing a week-on-week decrease of 0.18 yuan/kg [36] - Corn and soybean meal prices have increased, with corn futures at 2241.00 yuan/ton (up 2.66%) and soybean meal futures at 2459.00 yuan/ton (up 1.32%) [44]

Investment Rating - The investment rating for the computer industry is "Positive" (maintained) [1] Core Viewpoints - The commercial aerospace sector is expected to enter a period of rapid development, driven by continuous top-level design and intensive policy support from both domestic and international fronts [4][11] - The National Space Administration of China has launched an action plan for the high-quality and safe development of commercial aerospace from 2025 to 2027, aiming to integrate commercial aerospace into the national aerospace development framework [4][11] - The European Space Agency has approved its highest budget in history, totaling approximately €22.1 billion for the next three years, focusing on key scientific, exploratory, and technological projects [4][11] - Major overseas companies are intensively investing in space computing capabilities, indicating a significant trend in the industry [5][12] Summary by Sections Market Review - During the week of November 24 to November 28, 2025, the CSI 300 index rose by 1.64%, while the computer index increased by 3.08% [3][10] Industry Insights - The 14th Five-Year Plan emphasizes the cultivation and expansion of emerging and future industries, accelerating the development of strategic emerging industry clusters such as aerospace [4][11] - The establishment of a dedicated regulatory body for commercial aerospace in China is expected to enhance the industry's high-quality development and benefit the entire supply chain [4][11] Investment Recommendations - The report recommends companies such as Zhongke Xingtu, Aerospace Hongtu, Putian Technology, and Yaxin Security as beneficiaries of the commercial aerospace growth [6][13]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Views - The report highlights that Alibaba Cloud's Q3 revenue reached a new high, with a year-on-year growth of 34%, significantly surpassing the 26% growth in Q1 [5][13] - Capital expenditure for Alibaba in Q2 FY2026 was 31.501 billion, showing an 80.10% year-on-year increase, indicating strong investment in AI capabilities [5][13] - The report emphasizes the continuous growth in AI-related product adoption, with revenue from these products achieving triple-digit year-on-year growth for nine consecutive quarters [6][14] - Amazon is set to invest up to 50 billion for AI capacity expansion for U.S. government clients, marking a significant infrastructure development [7][15] - Google's TPU chips have been adopted by Meta, enhancing Google's competitive position in the chip market [7][16] Summary by Sections Section 1: Investment Insights - The report discusses the "siphoning effect" of AI, predicting continued global resonance in AI investments, with major players like Google and Meta increasing their capital expenditure [17] - It recommends focusing on three main lines: "optical networks, liquid cooling, and domestic computing power" [17] Section 2: Communication Data Tracking - As of October 2025, China had a total of 4.758 million 5G base stations, with a net increase of 507,000 stations compared to the end of 2024 [28] - The number of 5G mobile phone users reached 1.184 billion, reflecting a year-on-year growth of 18.99% [28] - In September 2025, the shipment of 5G mobile phones was 24.106 million units, accounting for 86.3% of total mobile phone shipments, with a year-on-year growth of 8.02% [28] Section 3: Operator Performance - China Mobile's cloud revenue for the first half of 2025 reached 56.1 billion, a year-on-year increase of 11.3% [47] - China Telecom's Tianyi Cloud revenue for the same period was 57.3 billion, growing by 3.8% year-on-year [47] - China Unicom's cloud revenue for the first three quarters of 2025 was 52.9 billion, showing steady growth [49]

Group 1 - The report suggests that after the recent market adjustment, growth stocks are expected to continue to outperform, with a focus on sectors such as military, media (gaming), AI applications, Hong Kong internet, and power equipment [3][12] - The financial engineering team has developed a sector rotation model, recommending a December industry portfolio that includes beauty care, social services, home appliances, oil and petrochemicals, retail, communication, transportation, automotive, media, and food and beverage [4][15] - Alibaba (9988.HK) is highlighted for its significant investment in AI infrastructure, which is expected to accelerate cloud business growth, alongside increased user traffic and revenue from e-commerce technology services [4][17] Group 2 - Zhongji Xuchuang (300308.SZ) is recognized as a global leader in optical modules, with a strong focus on cutting-edge research and commercial applications, gaining wide recognition from clients [4][20] - Yuekang Pharmaceutical (688658.SH) has several innovative drugs entering critical clinical or approval stages, indicating potential breakthroughs from research to commercialization [4][22] - Ximai Co., Ltd. (002956.SZ) continues to focus on the oat category, driving high growth through product structure adjustments and category innovations, benefiting from falling raw material prices [4][24] Group 3 - China Life Insurance (601628.SH) is expected to exceed expectations in its life insurance segment, with ongoing high growth in the bancassurance channel and improved investment returns [4][27] - Shangmei Co., Ltd. (2145.HK) is leveraging a multi-brand strategy and strong operational capabilities, with promising performance during the Double Eleven shopping festival [4][30] - Giant Network (002558.SZ) is anticipated to achieve new highs in key metrics due to seasonal events and successful game titles, indicating strong growth potential [4][33] Group 4 - Northern Huachuang (002371.SZ) is positioned to benefit from the growth of domestic semiconductor equipment and is expected to see significant order growth in 2026 [4][35] - Zhuoyi Information (688258.SH) is focusing on AI programming and related trends, with promising commercial prospects for its new products [4][37] - Midea Group (000333.SZ) is experiencing high growth in its ToB business and significant retail sales increases in its high-end brand strategy, contributing to sustained performance [4][40]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][11]. Core Insights - The company has shown a significant improvement in its financial performance, with a narrowing of losses and a strong outlook for future profitability, particularly with the upcoming product launches and collaborations [4][6]. - The company is transitioning towards becoming a leader in physical world AI, with plans to introduce multiple new vehicle models and advanced technologies in the coming years [6][7]. Financial Performance Summary - In Q3 2025, the company achieved a revenue of 20.38 billion yuan, representing a year-on-year increase of 101.8% and a quarter-on-quarter increase of 11.5%. The gross margin was 20.1%, with a net loss of 380 million yuan, and an adjusted net loss of 150 million yuan, with expectations of profitability in Q4 2025 [4][5]. - The company expects Q4 2025 revenue to be between 21.5 billion and 23 billion yuan, a year-on-year increase of 33.5% to 42.8%, with vehicle deliveries projected between 125,000 and 132,000 units [6]. Revenue and Profit Forecast - Revenue projections for 2025-2027 are as follows: 77.54 billion yuan in 2025, 129.36 billion yuan in 2026, and 161.17 billion yuan in 2027, with corresponding Non-GAAP net profits expected to be -394 million yuan, 2.51 billion yuan, and 5.11 billion yuan respectively [4][7]. - The company’s price-to-sales (P/S) ratios for 2025, 2026, and 2027 are projected to be 1.9, 1.1, and 0.9 respectively, while the price-to-earnings (P/E) ratios for 2026 and 2027 are expected to be 57.4 and 28.2 respectively [4][7].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has increased its R&D investment, and its innovative pipeline is gradually entering a harvest period. The FDA has approved the clinical trial for the YKYY018 aerosol inhalation agent for the prevention and treatment of RSV infections. Despite facing pressure on its operating performance in 2025, the company is optimistic about its long-term growth potential due to its innovative layout and small nucleic acid technology platform [3][4] Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue of 1.759 billion yuan, a year-on-year decrease of 41.20%. The net profit attributable to the parent company was -148 million yuan, down 170.56% year-on-year. The non-recurring net profit attributable to the parent company was -168 million yuan, a decrease of 182.95% year-on-year [3][4] - The company has adjusted the price of its "Ginkgo Leaf Extract Injection" at the end of 2024, which has impacted its performance. The R&D expenses have increased significantly, contributing to the net profit decline [3][4] - The sales expense ratio for the first three quarters of 2025 was 28.64%, down 7.37 percentage points; the management expense ratio was 10.67%, up 5.18 percentage points; the R&D expense ratio was 18.00%, up 9.27 percentage points; and the financial expense ratio was 0.59%, up 0.47 percentage points [3][4] Earnings Forecast - The revised earnings forecast for the company indicates net profits attributable to the parent company of -183 million yuan, -53 million yuan, and 69 million yuan for 2025, 2026, and 2027 respectively. The original forecasts were 51 million yuan, 206 million yuan, and 561 million yuan [3][4] - The expected EPS for 2025, 2026, and 2027 is -0.41 yuan, -0.12 yuan, and 0.15 yuan respectively, with the current stock price corresponding to P/E ratios of -60.6, -208.5, and 161.2 times [3][4] Innovative Pipeline Progress - The company is advancing its innovative drug pipeline, with key traditional Chinese medicine (TCM) drugs in the final review stage for NDA. The small nucleic acid innovative drugs YKYY015 and YKYY029 have received approval for clinical trials in the US and China, with ongoing Phase I trials domestically [4] - The RSV mRNA vaccine YKYY025 and VZV mRNA vaccine YKYY026 have also received approval for clinical trials in the US. The company has completed the Phase IIa clinical trial for its first domestic antisense nucleic acid drug for primary liver cancer [4]

Quantitative Models and Construction Methods Barra Style Factors - **Model Name**: Barra Style Factors - **Construction Idea**: The model tracks the performance of common style factors such as size, value, growth, and profitability in the market[3][13] - **Specific Construction Process**: The factors are constructed based on predefined dimensions: - Size factor: Measures the impact of market capitalization - Book-to-market ratio factor: Captures the value dimension - Growth factor: Reflects growth characteristics - Profitability factor: Tracks expected earnings performance[3][13] - **Evaluation**: The factors provide insights into the performance of different market styles, helping to understand market trends and dynamics[3][13] Open-Source Trading Behavior Factors - **Factor Name**: Ideal Reversal Factor - **Construction Idea**: Identifies the strongest reversal days by analyzing the average transaction size of large trades[4][14] - **Specific Construction Process**: 1. Retrieve the past 20 trading days' data for a stock 2. Calculate the average transaction size (transaction amount/number of transactions) for each day 3. Identify the 10 days with the highest transaction sizes and sum their returns (M_high) 4. Identify the 10 days with the lowest transaction sizes and sum their returns (M_low) 5. Compute the factor as \( M = M_{high} - M_{low} \)[43] - **Evaluation**: Captures micro-level reversal forces in the market, providing a unique perspective on trading behavior[4][14] - **Factor Name**: Smart Money Factor - **Construction Idea**: Tracks institutional trading activity by analyzing minute-level price and volume data[4][14] - **Specific Construction Process**: 1. Retrieve the past 10 days' minute-level data for a stock 2. Construct the indicator \( S_t = \frac{|R_t|}{V_t^{0.25}} \), where \( R_t \) is the return at minute \( t \) and \( V_t \) is the volume at minute \( t \) 3. Sort minute-level data by \( S_t \) in descending order and select the top 20% of minutes by cumulative volume as "smart money" trades 4. Calculate the volume-weighted average price (VWAP) for smart money trades (\( VWAP_{smart} \)) and all trades (\( VWAP_{all} \)) 5. Compute the factor as \( Q = \frac{VWAP_{smart}}{VWAP_{all}} \)[42][44] - **Evaluation**: Effectively identifies institutional trading patterns, offering a valuable alpha source[4][14] - **Factor Name**: APM Factor - **Construction Idea**: Measures the difference in stock behavior between morning (or overnight) and afternoon trading sessions[4][14] - **Specific Construction Process**: 1. Retrieve the past 20 days' data for a stock 2. Calculate daily overnight and afternoon returns for both the stock and the market index 3. Perform a regression of stock returns on market index returns to obtain residuals 4. Compute the difference between overnight and afternoon residuals for each day 5. Calculate the statistic \( \text{stat} = \frac{\mu(\delta_t)}{\sigma(\delta_t)/\sqrt{N}} \), where \( \mu \) is the mean, \( \sigma \) is the standard deviation, and \( N \) is the number of observations 6. Regress the statistic on momentum factors and use the residual as the APM factor[43][45][46] - **Evaluation**: Highlights intraday trading behavior differences, providing insights into market dynamics[4][14] - **Factor Name**: Ideal Amplitude Factor - **Construction Idea**: Measures the structural differences in amplitude information between high and low price states[4][14] - **Specific Construction Process**: 1. Retrieve the past 20 trading days' data for a stock 2. Calculate the daily amplitude as \( \text{Amplitude} = \text{(High Price/Low Price)} - 1 \) 3. Compute the average amplitude for the top 25% of days by closing price (V_high) 4. Compute the average amplitude for the bottom 25% of days by closing price (V_low) 5. Compute the factor as \( V = V_{high} - V_{low} \)[48] - **Evaluation**: Captures structural differences in price amplitude, offering a unique perspective on market behavior[4][14] - **Factor Name**: Composite Trading Behavior Factor - **Construction Idea**: Combines the above trading behavior factors using ICIR-based weights to enhance performance[32] - **Specific Construction Process**: 1. Perform industry-level outlier removal and standardization for each factor 2. Use the past 12 months' ICIR values as weights to combine the factors 3. Construct the composite factor as a weighted sum of the individual factors[32] - **Evaluation**: Demonstrates superior performance in small and mid-cap stock pools, providing robust alpha generation[32] --- Backtesting Results of Models and Factors Barra Style Factors - **Size Factor**: Return of -0.18% in November 2025[3][13] - **Book-to-Market Ratio Factor**: Return of 0.20% in November 2025[3][13] - **Growth Factor**: Return of -0.23% in November 2025[3][13] - **Profitability Factor**: Return of -0.35% in November 2025[3][13] Open-Source Trading Behavior Factors - **Ideal Reversal Factor**: - IC: -0.049 - RankIC: -0.060 - IR: 2.44 - Monthly win rate: 77.7% - November 2025 return: -1.52% - 12-month win rate: 58.3%[5][15] - **Smart Money Factor**: - IC: -0.037 - RankIC: -0.062 - IR: 2.72 - Monthly win rate: 81.3% - November 2025 return: 0.22% - 12-month win rate: 83.3%[5][19] - **APM Factor**: - IC: 0.028 - RankIC: 0.033 - IR: 2.23 - Monthly win rate: 76.0% - November 2025 return: -0.43% - 12-month win rate: 41.7%[5][23] - **Ideal Amplitude Factor**: - IC: -0.054 - RankIC: -0.074 - IR: 3.03 - Monthly win rate: 83.4% - November 2025 return: 0.49% - 12-month win rate: 66.7%[5][27] - **Composite Trading Behavior Factor**: - IC: 0.066 - RankIC: 0.093 - IR: 3.30 - Monthly win rate: 79.4% - November 2025 return: -0.21% - 12-month win rate: 66.7%[5][32]

Investment Rating - The investment rating for Chow Tai Fook (01929.HK) is "Buy" (maintained) [1] Core Views - The company reported a revenue of HKD 38.986 billion for FY2026H1, a year-on-year decrease of 1.1%, while the net profit attributable to shareholders was HKD 2.534 billion, an increase of 0.1% [5] - The company is actively pursuing brand transformation and product optimization, which has led to an upward revision of profit forecasts for FY2026-2028 [5] - Same-store sales in mainland China showed a recovery with a year-on-year increase of 2.6% in FY2026H1, and a significant growth of 38.8% from October 1 to November 18, 2025 [6] Financial Summary and Valuation Metrics - For FY2026E, the company is expected to achieve a revenue of HKD 90.018 billion, with a net profit of HKD 8.247 billion, reflecting a year-on-year growth of 39.4% [9] - The projected EPS for FY2026E is HKD 0.83, with corresponding P/E ratios of 16.7, 14.9, and 13.7 for FY2026E, FY2027E, and FY2028E respectively [9] - The gross margin for FY2026H1 was reported at 30.5%, slightly down by 0.9 percentage points, benefiting from rising gold prices and an increase in the proportion of high-margin products [6]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights the continuous prosperity of the AI industry, with significant breakthroughs in domestic AI applications and the acceleration of AI deployment [3][5] - The commercial aerospace sector is expected to enter a high-speed development phase, driven by the newly released three-year action plan aiming for high-quality development by 2027 [5][8] - The establishment of the Commercial Aerospace Department signifies the government's strong emphasis on the commercial aerospace sector [6] Summary by Sections Industry Overview - The report indicates a projected significant growth in the commercial aerospace industry, with a focus on high-quality development and effective market governance [5][8] Key Developments - The first flight of the reusable Zhuque-3 rocket by Beijing Blue Arrow Aerospace is scheduled for November 29, marking a critical advancement in domestic reusable rocket technology [7] - The progress of two national low-orbit satellite internet constellations, with the National Grid Constellation having launched 13 groups of satellites and plans for a total of approximately 1,300 satellites by 2029 [7] Investment Recommendations - Recommended companies include Zhongke Xingtu, Aerospace Hongtu, Putian Technology, and Yaxin Security, with beneficiaries such as Xingtuxi Control, Jiayuan Technology, and Shengbang Security [8]

Group 1: Profit and Revenue Trends - Cumulative profit of large-scale industrial enterprises from January to October 2025 increased by 1.9% year-on-year, down from 3.2% previously[3] - Cumulative revenue for the same period rose by 1.8% year-on-year, a decrease from 2.4%[3] - In October, revenue showed a significant decline of approximately -3.3% year-on-year, a drop of 6.4 percentage points from the previous value[3] - Profit in October fell sharply by 27.1 percentage points to -5.5% year-on-year, aligning with earlier predictions of declining profit growth[3] Group 2: Factors Affecting Profitability - The contribution to October's profit growth from industrial value added, PPI, and profit margin year-on-year was +4.7, -2.1, and -6.1 percentage points respectively[3] - Increased costs, particularly financial expenses, significantly impacted profitability, with costs per 100 yuan of revenue at 85.6 yuan, up by 0.1 yuan from the previous year[4] - The profit structure showed that the share of midstream profits continued to rise, with midstream equipment manufacturing at 39.5%[5] Group 3: Inventory and Economic Outlook - Nominal inventory increased by 0.9 percentage points year-on-year to 3.7%, marking two consecutive months of inventory growth[6] - The overall economic outlook suggests that Q4 profits will remain under pressure due to the fading low base effect, but new productivity trends are improving[6] - Attention should be given to fiscal policies and the potential for profit recovery linked to improvements in US-China trade relations[6]