Investment Rating - The report maintains a "Recommended" rating for the industry [1] Core Insights - The report highlights a significant performance improvement in the ArgoDB solution based on the Haiguang 7000 series processor, achieving a 62% enhancement over the previous world record in the TPC-DS benchmark [4] - The trend of using low-cost storage to replace expensive memory in vector databases is identified as a major technological shift [4] - The domestic vector database market is transitioning from technical exploration to large-scale implementation, with positive signals of million-level purchases in key sectors like finance and energy [4] Summary by Sections - **Performance Records**: The ArgoDB solution has set new performance records in both TPC-DS and TPC-C benchmarks, indicating strong technological advancements [4] - **Cost Structure**: The report outlines two billing models for vector databases: annual subscription and pay-as-you-go, with specific pricing examples provided for different regions [4] - **Investment Opportunities**: The report suggests focusing on companies such as StarRing Technology, Dameng Data, Haima Data, Taiji Co., SuperMap Software, and Torus [4]

Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for its future performance [3]. Core Views - The company is positioned as a rare growth-oriented electrolytic aluminum enterprise, with a focus on integrated production of alumina and electrolytic aluminum. It is expanding its capacity in Saudi Arabia, which is expected to be a significant growth driver [6][7]. - The company has a strong domestic production base with a total capacity of 788,000 tons of electrolytic aluminum and 3.2 million tons of alumina, with a self-sufficiency rate exceeding 100% for alumina [6][21]. - The report highlights the company's competitive advantage in energy costs due to its location in Inner Mongolia, where it has access to abundant coal resources and is transitioning to green energy sources [6][16]. Summary by Sections 1. Domestic Integrated Layout and Overseas Expansion - The company has established a comprehensive alumina and electrolytic aluminum production layout, with significant investments planned for a 500,000-ton aluminum project in Saudi Arabia [13][21]. - The company aims to enhance its green energy usage by developing wind and solar power projects in Inner Mongolia, which will further reduce energy costs [13][16]. 2. Financial Performance - The company's revenue is projected to grow from RMB 15.16 billion in 2024 to RMB 18.95 billion in 2027, with a notable increase in net profit from RMB 2.06 billion to RMB 4.73 billion during the same period [2]. - The report indicates a strong upward trend in overall performance, with a projected net profit growth rate of 104.9% in 2024 [23]. 3. Industry Overview - The report notes that the electrolytic aluminum market is characterized by a tight supply-demand balance, with limited new capacity expected to come online in the near term [43][48]. - The domestic aluminum industry is nearing its capacity ceiling, with a projected net increase of only 65,000 tons in 2025, indicating limited supply elasticity [48][51]. 4. Company-Specific Insights - The company is recognized as a unique growth-oriented player in the electrolytic aluminum sector, with a focus on expanding its production capacity both domestically and internationally [6][21]. - The report emphasizes the company's strategic advantage in energy costs and its robust production capabilities, which are expected to support its growth trajectory [6][16].

Quantitative Models and Construction Methods 1. Model Name: Three-Strategy Fusion ETF Rotation Strategy - **Model Construction Idea**: The strategy integrates three dimensions: fundamental-driven rotation, quality low-volatility style rotation, and distressed reversal industry discovery. It aims to achieve factor and style complementarity while reducing the risk of single-strategy exposure[35][36] - **Model Construction Process**: 1. **Fundamental Rotation Strategy**: Selects industries based on factors such as exceeding expected prosperity, industry leadership effects, momentum, crowding, and inflation beta[36] 2. **Quality Low-Volatility Style Strategy**: Focuses on individual stock quality, momentum, and low volatility to enhance defensiveness[36] 3. **Distressed Reversal Strategy**: Utilizes PB z-score, long-term analyst expectations, and short-term chip exchange to capture valuation recovery and performance reversal opportunities[36] 4. Combines the three strategies equally to form a composite ETF rotation strategy, achieving multi-dimensional industry screening and reducing single-strategy risks[35][36] - **Model Evaluation**: The strategy effectively balances factor complementarity and style adaptation, providing robust performance across different market conditions[35][36] 2. Model Name: Hotspot Trend ETF Strategy - **Model Construction Idea**: This strategy identifies ETFs with strong upward trends and high market attention, constructing a risk-parity portfolio based on support-resistance factors and turnover ratios[30] - **Model Construction Process**: 1. Select ETFs where both the highest and lowest prices exhibit an upward trend[30] 2. Calculate the relative steepness of the regression coefficients for the highest and lowest prices over the past 20 days to construct support-resistance factors[30] 3. Choose the top 10 ETFs with the highest 5-day turnover ratio/20-day turnover ratio from the long group of the support-resistance factor, indicating increased short-term market attention[30] 4. Construct a risk-parity portfolio using these ETFs[30] - **Model Evaluation**: The strategy demonstrates strong performance, achieving significant excess returns compared to the benchmark[30] 3. Model Name: Capital Flow Resonance Strategy - **Model Construction Idea**: This strategy identifies industries with resonant capital flows by combining financing margin and active large-order capital flow factors, aiming to enhance stability and reduce drawdowns[42][44][45] - **Model Construction Process**: 1. Define the financing margin factor as the market-neutralized financing net buy-in minus securities lending net sell-out, calculated as the two-week change in the 50-day moving average[45] 2. Define the active large-order capital flow factor as the market-neutralized net inflow ranking of industry trading volume over the past year, using the 10-day moving average[45] 3. Exclude extreme industries from the active large-order factor and apply a negative exclusion for the financing margin factor to improve strategy stability[45] 4. Perform weekly rebalancing to select industries with resonant capital flows for long positions[45] - **Model Evaluation**: The strategy achieves stable positive excess returns with reduced drawdowns compared to other capital flow strategies[45] --- Model Backtesting Results 1. Three-Strategy Fusion ETF Rotation Strategy - **2025 YTD Performance**: Portfolio return 25.60%, benchmark return 21.83%, excess return 3.77%, Sharpe ratio 0.24, maximum drawdown -7.18%[39][40] - **Overall Performance (2017-2025)**: Annualized excess return 10.28%, Sharpe ratio 1.09, maximum drawdown -24.55%[40] 2. Hotspot Trend ETF Strategy - **2025 YTD Performance**: Portfolio return 34.49%, benchmark (CSI 300) excess return 19.58%[30] 3. Capital Flow Resonance Strategy - **2018-Present Performance**: Annualized excess return 14.3%, IR 1.4, reduced drawdowns compared to Northbound-Large Order Resonance Strategy[45] - **Last Week Performance**: Absolute return -0.27%, excess return 0.37% (relative to industry equal weight)[45] --- Quantitative Factors and Construction Methods 1. Factor Name: Momentum Factor - **Factor Construction Idea**: Captures the continuation of stock price trends over a specific period[53] - **Factor Construction Process**: 1. Calculate the 1-year momentum as the return over the past 12 months, excluding the most recent month[53] 2. Rank stocks based on momentum and form quintile portfolios[53] - **Factor Evaluation**: Demonstrates strong performance, with the 1-year momentum factor achieving a weekly excess return of 1.13%[53] 2. Factor Name: R&D to Total Assets Ratio - **Factor Construction Idea**: Measures the proportion of R&D investment relative to total assets, reflecting innovation capability[56] - **Factor Construction Process**: 1. Calculate the ratio of total R&D expenses to total assets for each stock[56] 2. Rank stocks based on this ratio and form quintile portfolios[56] - **Factor Evaluation**: Performs well in small-cap indices, with an excess return of 20.25% in the CSI 500 index[56] 3. Factor Name: Single-Quarter ROA YoY Change - **Factor Construction Idea**: Tracks the year-over-year change in return on assets (ROA) for a single quarter, reflecting profitability trends[56] - **Factor Construction Process**: 1. Calculate the year-over-year change in ROA for the most recent quarter, considering preliminary and forecasted data[56] 2. Rank stocks based on this change and form quintile portfolios[56] - **Factor Evaluation**: Excels in large-cap indices, with an excess return of 25.52% in the CSI 300 index[56] --- Factor Backtesting Results 1. Momentum Factor - **Weekly Excess Return**: 1.13%[53] 2. R&D to Total Assets Ratio - **Excess Return in CSI 500**: 20.25%[56] 3. Single-Quarter ROA YoY Change - **Excess Return in CSI 300**: 25.52%[56] - **Excess Return in CSI 500**: 10.16%[56] - **Excess Return in CSI 1000**: 21.98%[56]

Investment Rating - The report maintains a "Buy" rating for BYD (002594.SZ) with a current price of 95.05 CNY [3]. Core Insights - The report highlights a significant increase in wholesale sales, with a month-on-month growth of 8.7% in November, driven by strong overseas sales performance [8]. - The company is expected to see revenue growth from 777.1 billion CNY in 2024 to 1,104.5 billion CNY in 2027, with a compound annual growth rate (CAGR) of approximately 12.6% [2]. - Net profit attributable to shareholders is projected to rise from 40.3 billion CNY in 2024 to 58.6 billion CNY in 2027, reflecting a strong growth trajectory [2]. Financial Forecasts - Revenue Forecast: - 2024: 777.1 billion CNY - 2025: 866.5 billion CNY - 2026: 981.3 billion CNY - 2027: 1,104.5 billion CNY - Growth Rates: 29.0% in 2024, 11.5% in 2025, 13.3% in 2026, 12.6% in 2027 [2]. - Net Profit Forecast: - 2024: 40.3 billion CNY - 2025: 37.2 billion CNY - 2026: 47.5 billion CNY - 2027: 58.6 billion CNY - Growth Rates: 34.0% in 2024, -7.5% in 2025, 27.4% in 2026, 23.4% in 2027 [2]. - Earnings Per Share (EPS): - 2024: 4.42 CNY - 2025: 4.09 CNY - 2026: 5.21 CNY - 2027: 6.43 CNY [2]. - Price-to-Earnings (PE) Ratio: - 2025: 23 - 2026: 18 - 2027: 15 [2]. - Price-to-Book (PB) Ratio: - 2025: 3.3 - 2026: 3.2 - 2027: 2.7 [2]. Sales Performance - In November, BYD's wholesale sales of new energy vehicles reached 480,000 units, a year-on-year decrease of 5.3% but a month-on-month increase of 8.7% [8]. - Cumulative wholesale sales from January to November totaled 4.131 million units, reflecting a year-on-year increase of 10.4% [8]. - The export volume of new energy vehicles in November was 132,000 units, a year-on-year increase of 325.9% and a month-on-month increase of 57.2% [8].

Investment Rating - The report maintains a "Recommended" rating for key companies in the AI industry, particularly Google and its Gemini 3 Pro model, which is expected to lead the next wave of AI innovation [5][6]. Core Insights - Google has launched the Gemini 3 Pro model, which shows significant improvements in reasoning, multi-modal capabilities, and cost efficiency due to its proprietary TPU training [1][4]. - The Gemini 3 Pro model sets a new benchmark for multi-modal video understanding, outperforming competitors in various tasks, including long video reasoning and complex code comprehension [2][3]. - The model's performance in logical reasoning and long text processing has seen substantial upgrades, with accuracy rates significantly higher than previous models and competitors [3][4]. - Google's financial performance in Q3 2025 was strong, with revenues of $102.35 billion, a year-on-year increase of 16%, and net profits of $34.98 billion, up 33% [4]. Summary by Sections Investment Recommendations - The report suggests focusing on Google and the OCS industry chain, highlighting companies such as Industrial Fulian, Shenghong Technology, Tengjing Technology, and Changxin Bochuang as potential investment opportunities [5]. Key Company Earnings Forecasts and Valuation - Industrial Fulian: 2024A EPS of 1.17, PE of 56, rated "Recommended" - Shenghong Technology: 2024A EPS of 1.34, PE of 207, no rating provided - Tengjing Technology: 2024A EPS of 0.54, PE of 273, rated "Recommended" - Changxin Bochuang: 2024A EPS of 0.25, PE of 419, rated "Recommended" [6].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][6]. Core Insights - The company is positioned as a high-quality mining enterprise focusing on copper, nickel, and cobalt, with significant global expansion since 2016, particularly in the Democratic Republic of Congo and Indonesia [1][9]. - The divestment of trading operations has led to a substantial improvement in profitability, with copper products becoming the core profit source since 2024, and expectations for record performance in 2025 [1][19]. - The acquisition of the Adumbi gold mine is anticipated to provide new growth momentum, with a projected average annual gold production of 9.4 tons and a low AISC cost of $950 per ounce [3][4]. Summary by Sections Company Overview - The company has evolved through three stages since its inception, focusing on non-ferrous metals and expanding into energy metals with a strategic emphasis on resource control and material expansion [9][10]. Profitability Improvement - The company has seen a significant recovery in profitability, with 2024 expected to set a historical high, driven primarily by copper products, which accounted for 40.75% of revenue in 2024 [19][20]. - The net profit attributable to shareholders is projected to grow from 2.33 billion yuan in 2025 to 3.72 billion yuan in 2027, with corresponding EPS increasing from 0.75 yuan to 1.20 yuan [5][4]. Asset Layout Strategy - The company operates a diversified asset portfolio, including the Karongwe copper-cobalt mine and several smelting facilities, with a total copper production capacity of 230,000 tons and cobalt capacity of 17,800 tons [2][14]. - The nickel segment, primarily through the Indonesian project, has a production capacity of 34,000 tons, although profitability has been affected by fluctuating nickel prices [59][61]. Adumbi Gold Mine Acquisition - The planned acquisition of the Adumbi gold mine for 1.35 billion yuan is expected to enhance the company's growth profile, with significant resources and a favorable production cost structure [3][4]. Financial Forecasts - Revenue is projected to grow steadily, with estimates of 27.73 billion yuan in 2025 and 30.22 billion yuan in 2026, reflecting a compound annual growth rate [5][4]. - The company’s financial health is improving, with a significant increase in operating cash flow, reaching 3.075 billion yuan in the first three quarters of 2025 [35][36].

Investment Rating - The report maintains a positive investment rating for the industry, suggesting a focus on specific companies that are expected to benefit from the advancements in HVDC technology and related solutions [5]. Core Insights - The report highlights that NVIDIA has introduced an 800VDC solution to address the increasing power density in data centers, which is expected to significantly reduce power loss [2][20]. - The transition from traditional UPS systems to HVDC and solid-state transformer (SST) technologies is seen as a critical evolution in the power supply landscape, with efficiencies exceeding 98% for these new systems [30][34]. - The demand for HVDC technology is accelerating, with major companies like Tencent and Alibaba actively pursuing projects that incorporate these advancements [52][54]. Summary by Sections 1. Power and Efficiency as Core Issues - NVIDIA is leading a new industry direction with its advancements in GPU technology, which has seen a dramatic increase in computational power and energy requirements [11][15]. - The architecture of 800VDC is identified as a key solution to meet the rising demands of AI infrastructure, enhancing efficiency and reducing costs [18][19]. 2. HVDC as the Future Industry Evolution Direction - NVIDIA's white paper promotes the adoption of mid-voltage rectifiers and SSTs as future power supply solutions, moving the industry towards more efficient high-voltage direct current (HVDC) systems [20][21]. - The report outlines various transitional power supply solutions, including the white space retrofit and hybrid power systems, leading to the ultimate 800VDC distribution solution [20][21]. 3. HVDC Supply and Demand Assessment - The report notes that both domestic and international leading companies are pushing for the commercialization of HVDC technology, with significant projects planned for 2025 and beyond [52][54]. - Domestic companies like Delta and Eaton are making rapid progress in HVDC technology, with notable advancements in solid-state transformer solutions [54][55]. 4. Investment Recommendations - The report suggests focusing on terminal manufacturers such as Zhongheng Electric, Kehua Data, and Sunshine Power, which are expected to benefit first from these technological advancements [74]. - It also highlights the importance of transformer technology, recommending companies like Jingquanhua and Igor for potential investment opportunities [74].

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group, Transsion Holdings, Liyin Intelligent Manufacturing, Guoguang Electric, and others, indicating a positive outlook for these companies in the context of the smart home industry [4][5]. Core Insights - Xiaomi's Miloco introduces a new paradigm in smart home technology by leveraging large models to create a more intuitive and interactive home environment, allowing users to communicate naturally with their smart home systems [1][2]. - The Miloco system addresses the limitations of traditional smart home setups, which often require cumbersome manual configurations and lack interoperability between different brands [1]. - The system is built on a proprietary large model, Xiaomi MiMo-VL-Miloco-7B, which integrates visual and language capabilities, enhancing the smart home experience through advanced perception and interaction [2]. Summary by Sections Investment Recommendations - The report suggests continuous monitoring of companies benefiting from the smart home wave, including Xiaomi Group, Transsion Holdings, and various suppliers and component manufacturers [2]. Company Financial Projections - Xiaomi Group is projected to have an EPS of 1.68 CNY in 2025, with a PE ratio of 22, indicating strong growth potential [4]. - Transsion Holdings is expected to achieve an EPS of 2.70 CNY in 2025, with a PE ratio of 23, also reflecting a favorable investment outlook [4]. - Liyin Intelligent Manufacturing is forecasted to have an EPS of 0.33 CNY in 2025, with a PE ratio of 41, suggesting significant growth opportunities [4]. Technological Advancements - Miloco's architecture allows for extensive customization and expansion, enabling developers to modify any layer of the system, which supports both stability and future growth [2]. - The focus on privacy and security through local data processing is a key differentiator for Miloco, ensuring user data remains protected [2].

Investment Rating - The report maintains a "Buy" rating for the steel industry, highlighting the potential for profit recovery and capacity optimization as key investment themes [4][5]. Core Insights - The steel sector has shown a significant recovery in profitability, with the SW Steel index rising by 24.00% in Q1-Q3 2025 and 14.19% from October 2025 to date, outperforming major indices [1][11]. - The report emphasizes the importance of differentiated production restrictions to promote industry consolidation and the transition towards high-value, low-carbon, and intelligent production methods [2][3]. - Manufacturing and direct export demand remain resilient, supporting steel consumption despite a weak construction sector [2]. Summary by Sections Steel Sector Performance - In Q1-Q3 2025, the steel sector's net profit saw a year-on-year increase of 747.63%, with a gross margin recovery to 7.59% and a net margin of 2.19% [17][21]. - The performance of the steel sector has been strong, with the SW Steel index ranking 4th among all sectors since October 2025 [1][11]. Supply-Side Policies - The introduction of differentiated production restrictions aims to eliminate inefficient capacity and enhance industry concentration [2][3]. - New policies are expected to drive the optimization of production capacity, with a focus on high-end, green, and intelligent manufacturing [3][51]. Demand-Side Dynamics - The manufacturing sector, particularly in machinery and commercial vehicles, continues to show strength, while direct exports have increased significantly, supporting steel demand [2][3]. - The construction sector remains weak, but early indicators suggest a stabilization in demand for construction steel [2]. Investment Recommendations - The report suggests focusing on leading steel companies that are well-positioned to benefit from policy support and capacity optimization, such as Hualing Steel, Baosteel, and Nanjing Steel [3][4]. - For special steel, companies benefiting from downstream demand in automotive and energy sectors are recommended, including Xianglou New Materials and Jiuli Special Materials [3]. - In the raw materials sector, companies with clear growth in non-ferrous resources, such as Dazhong Mining and Hebei Steel Resources, are highlighted [3].

Group 1 - The report defines core assets in the A-share market from four perspectives: industry leaders, resource endowment, excellent business models, and technological advantages [1][9] - The core asset fund pool has shown low volatility, with an annualized return of 13.14% from February 2, 2015, to November 7, 2025, outperforming the equity fund index by 3.31% [1][16] - The core asset fund pool has consistently achieved excess returns in most years, particularly in volatile and bear markets, but may lag in extreme style markets [1][18] Group 2 - The excess returns of the core asset fund pool primarily stem from industry allocation and stock selection, with a focus on large-cap quality investments [2][21] - The current long-term allocation emphasizes consumption, cyclical, and financial sectors, with a recent reduction in manufacturing and financial allocations [2][24] - The report provides a list of selected core asset funds, highlighting their performance and management details, with a focus on funds that have a high proportion of core assets in their top holdings [3][27] Group 3 - The core asset fund pool is defined by specific criteria, including a focus on actively managed equity funds with significant holdings in core assets [26] - The selection process for core asset funds emphasizes low beta exposure and high operating cash flow relative to market capitalization [27] - The report includes a detailed analysis of individual funds, showcasing their investment strategies and performance metrics [28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43][44][45][46][47][48][49][50][51][52][53][54][55]