Investment Rating - The report maintains a "Recommended" rating for the computer industry, indicating a potential upside of over 15% relative to the benchmark index [5]. Core Insights - The report highlights the significance of recent equity transfers between major state-owned enterprises (SOEs), which are expected to enhance resource synergy and collaboration in the digital transformation sector [1][2]. - The strategic cooperation agreement signed between Taiji Technology and Deep Sanda aims to leverage their strengths in areas such as cloud computing and digital transformation, contributing to the national digital economy [2][3]. - The report emphasizes the government's strong focus on SOE reform, with the recent equity transfers signaling an acceleration in this process and a commitment to enhancing innovation capabilities within the industry [3]. Summary by Sections Equity Transfers - Deep Sanda's major shareholder, China Electronics Group, transferred a total of 34.253 million shares, reducing its stake from 47.23% to 44.22% [1]. - Taiji Technology saw a transfer of 28.932 million shares, with China Electronics Group's stake decreasing from 38.76% to 34.11% [2]. Strategic Cooperation - The partnership between Taiji Technology and Deep Sanda is set to strengthen their collaboration in digital solutions, aiming to create a comprehensive digital strategy for the industry [2]. Policy Support - The report notes that the Chinese government is actively promoting SOE reforms, which are expected to lead to better resource allocation and innovation in the computer industry [3][4]. - The focus on enhancing core technologies and fostering a new system for national innovation is seen as a significant trend that will benefit the industry [4]. Investment Recommendations - The report suggests focusing on companies such as China Software, Putian Technology, and others that are well-positioned to benefit from the ongoing SOE reforms and digital transformation initiatives [4].

Group 1 - The report indicates that the central bank's net investment in government bonds in October 2025 was 20 billion yuan, which is lower than the monthly net purchases in 2024, which ranged from 100 billion to 300 billion yuan [1][8] - Since June 2025, major banks have significantly increased their net purchases of government bonds with maturities of 3 years or less, with monthly net purchases exceeding 230 billion yuan [1][8] - The liquidity outlook remains relatively loose, with a weekly net payment of 369.2 billion yuan in government bonds, the highest in two months, despite low maturity amounts and the absence of tax periods [2][9] Group 2 - The sentiment in the secondary market for local government bonds has been positive since late October, with insurance and fund institutions being the main net buyers, particularly in the 15-20 year and 3-5 year maturities [2][18] - The issuance of special refinancing bonds is currently less than one-fifth of the planned 500 billion yuan, with a focus on maturities that may widen the spread between local government bonds and national bonds [3][18] - The report highlights that the newly issued bonds in November have an implied tax rate of 3% or below, with many bonds deviating significantly from secondary market pricing [3][18]

Group 1: Macroeconomic Overview - The macroeconomic environment is characterized by a "slight decline" and "continuous improvement" interwoven, with manufacturing PMI and export growth showing slight decreases in October 2025 compared to the previous month [1][11] - The overall economic situation is improving compared to last year, with state-owned enterprises and listed companies showing signs of better performance, while support for small and medium-sized enterprises (SMEs) needs to be enhanced [1][16] - The production index and new orders index for October were 49.7% and 48.8%, respectively, indicating a slight decline, but large enterprises continue to show expansion with indices above 50 [3][12] Group 2: Industry Development and Policy Support - High-tech manufacturing, equipment manufacturing, and consumer goods industries are crucial for maintaining the overall prosperity of the manufacturing sector, with a focus on supporting SMEs towards "specialized, refined, and innovative" development [4][18] - New application scenarios are expected to emerge in fields such as digital economy, artificial intelligence, clean energy, and biotechnology, providing growth opportunities for related companies [4][18] - The government emphasizes the need for a complete industrial chain in technology innovation and application to enhance the "R&D-application-manufacturing" capabilities across industries [21][22] Group 3: Investment Strategy - Investment focus should be on economically strong provinces with good debt management, such as Guangdong, Jiangsu, and Zhejiang, with a recommended duration of 5 years [5][23] - Areas with significant debt resolution policies or funding support should be considered for shorter durations of 3-5 years, including Chongqing and Tianjin [5][25] - Attention should also be given to cities with strong industrial foundations and financial support, particularly those with important industrial chain positions [5][26]

1. Report Industry Investment Rating No information provided regarding the industry investment rating. 2. Core Viewpoints of the Report - The short - end US Treasury yields declined again. Amid the federal government shutdown and labor data divergence, the market identified more recession signs and increased bets on interest rate cuts. If the federal government resumes operation before the December meeting, it may provide sufficient evidence for rate cuts [3][13]. - Global major asset classes showed different trends. Global stock indices generally pulled back, energy and black commodities were adjusted, precious metals fluctuated downwards, and the US dollar weakened due to weak labor data [5][18][19][20]. 3. Summary by Relevant Catalogs 3.1 This Week's Overseas Macroeconomic Interest Rate Review 3.1.1 Macroeconomic Indicator Review - Employment: In October, the ADP employment number turned positive but remained weak. The private - sector added about 42,000 jobs, higher than the expected 32,000 and reversing the decline in September. However, the increase was still small compared to previous years. New jobs were mainly concentrated in education, healthcare, trade, transportation, and public utilities, while several industries such as professional business services, information technology, and leisure and entertainment saw continuous net job losses for the third month [1][11]. - Business indices: The US Markit services PMI growth in October slowed, the ISM non - manufacturing PMI increased, the Markit manufacturing PMI rose, and the ISM manufacturing PMI fell short of expectations. The labor market in the service and manufacturing industries remained weak [2][12]. 3.1.2 Main Overseas Market Interest Rate Review - US: From October 31 to November 7, 2025, the short - end US Treasury yields declined again. The yield curve steepened with short - and medium - term yields down and ultra - long - term yields slightly up. The market strengthened bets on rate cuts, and the probability of a December rate cut increased by 4 percentage points to 67%. With the two - party attitude softening on Friday, the market expected the government shutdown to end soon [3][13]. - Europe and Japan: Japanese government bond yields had a slight overall increase, with short - end yields down and medium - and long - end yields up. German government bond yields across all maturities increased, with long - end yields leading the rise and the weekly amplitude reaching a phased high [4][17]. 3.2 Other Major Asset Reviews - Equities: Global major stock indices generally pulled back, affected by both fundamentals and policy expectations. The Russian MOEX index rose 1.63%, the Hong Kong Hang Seng Index rebounded 1.29%, while the US Nasdaq index fell 3.04%, and the Japanese Nikkei 225 index fell 4.07% [5][18]. - Commodities: Energy and black commodities were generally adjusted, and precious metals fluctuated downwards. US hog futures rose 0.93%, CBOT soybeans rose 0.16%, while Brent crude oil fell 2.21%, and Bitcoin fell 5.73% [5][19]. - Foreign exchange: Due to weak US labor data, the US dollar weakened. The Japanese yen rose 0.53%, the Vietnamese dong rose 0.20%, and the South Korean won depreciated 1.59% [5][20]. 3.3 Market Tracking - The report presents multiple charts, including the auction panel of US Treasury bonds, the latest target interest rate expectations of FED WATCH, the simulated trends of the US dollar, US stocks, US Treasury bonds, gold, and Bitcoin, the trends of global major stock indices, the yield curves of US, Japanese, and German government bonds, and the latest economic data panels of the US, Japan, and the Eurozone [15][16][23].

Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price of 47.51 yuan per share on November 7, 2025 [6]. Core Insights - The establishment of the subsidiary Berteli Drive marks a significant step in the company's strategy to enhance its capabilities in electric motor technology and humanoid robotics, contributing to its competitive edge in the automotive chassis sector and high-growth areas such as new energy vehicles and intelligent driving [1][3]. - The company is positioned as a leader in the field of drive-by-wire chassis systems, with successful advancements in its robotics business, including the establishment of a subsidiary focused on components for humanoid robots [3]. - The company has made substantial progress in both smart and electric vehicle technologies, becoming the first domestic supplier to achieve mass production of electronic parking brakes (EPB) and expanding its production capacity for line control braking systems [2][4]. Financial Projections - Revenue projections for the company are as follows: 12.875 billion yuan in 2025, 16.441 billion yuan in 2026, and 20.831 billion yuan in 2027, with corresponding net profits of 1.508 billion yuan, 1.867 billion yuan, and 2.314 billion yuan respectively [4][5]. - The expected earnings per share (EPS) are projected to be 2.49 yuan in 2025, 3.08 yuan in 2026, and 3.81 yuan in 2027, indicating a strong growth trajectory [5][10]. - The company anticipates a compound annual growth rate (CAGR) of approximately 29.6% for revenue from 2025 to 2026 and 27.7% from 2026 to 2027 [5][10].

Investment Rating - The report maintains a "Buy" rating for key companies in the petrochemical sector, specifically recommending China National Petroleum, China Petroleum & Chemical, CNOOC, Zhongman Petroleum, and New Natural Gas [4]. Core Views - OPEC+ has decided to pause production increases in Q1 2026, with a planned increase of 137,000 barrels per day in December 2025. The next meeting is scheduled for November 30, 2025. The market sentiment has improved due to this decision, but concerns about weak demand and oversupply remain, leading to expectations of price fluctuations in the short term [1][7]. - The report highlights the impact of U.S. sanctions on Russian oil producers, which has led Turkish refiners to reduce purchases of Russian crude and seek alternatives from Iraq, Libya, Saudi Arabia, and Kazakhstan [1][7]. Summary by Sections Industry Investment Rating - The report recommends focusing on industry leaders with strong performance and high dividends, specifically China National Petroleum, China Petroleum & Chemical, and CNOOC, due to their stable earnings and growth potential [10]. Oil Supply and Demand - As of October 31, 2025, U.S. crude oil production reached 13.65 million barrels per day, an increase of 10,000 barrels from the previous week. Refinery throughput also rose to 15.26 million barrels per day, up by 40,000 barrels [8][9]. - U.S. crude oil inventories increased, with strategic reserves at 409.6 million barrels, up by 500,000 barrels week-on-week [9]. Price Trends - As of November 7, 2025, Brent crude oil futures settled at $63.63 per barrel, down 2.21% from the previous week, while WTI futures settled at $59.75 per barrel, down 2.02% [8][34]. - The report notes a decrease in LNG prices in Northeast Asia, with the price at $11.02 per million British thermal units, down 1.63% week-on-week [8][37]. Company Performance - The report indicates that the petrochemical sector has outperformed the broader market, with a 4.6% increase in the sector compared to a 0.8% increase in the CSI 300 index as of November 7, 2025 [11][14]. - Key companies such as Zhongjie Oil and Gas and Hengtong Petrochemical have shown significant weekly gains, with increases of 15.61% and 8.20%, respectively [16].

1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints of the Report - The market will remain volatile under the backdrop of declining liquidity. The three - dimensional timing framework continues to predict a volatile decline. The Shanghai - Shenzhen 300 index is in a slow - rising trend and oscillating within a channel, with strong upper resistance and lower support [1][7]. - The power grid equipment theme index has seen significant inflows. In the past week, there were large inflows into the power grid equipment theme, communication equipment theme, etc., while the innovation energy, state - owned enterprise digital economy, etc. had the most outflows [1][25]. - Industries recommended based on capital resonance are agriculture, forestry, animal husbandry and fishery, construction, electric power and public utilities, and petroleum and petrochemicals [2][31]. - The high - volatility and high - liquidity style is dominant this week, with the liquidity factor achieving positive returns. Among Alpha factors, reversal and cash - flow factors perform well. In large - cap stocks, factors such as profit growth and analyst expectations are dominant, while in small - cap stocks, R & D intensity and growth factors perform better [2][39]. 3. Summary According to the Directory 3.1 Quantitative Views 3.1.1 Timing Viewpoint Liquidity is on a downward trend, divergence is on an upward trend, and the prosperity has rebounded again (financial sector up, industrial sector down). The three - dimensional timing framework maintains a judgment of volatile decline. The Shanghai - Shenzhen 300 index is in a slow - rising trend and oscillating within a channel, with no sign of breaking through the range [1][7]. 3.1.2 Index Monitoring By calculating the overall subscription/redemption shares of ETF products for each index, it was found that the power grid equipment theme had the largest inflow ratio in the past week, month, and three - month periods. The innovation energy, state - owned enterprise digital economy, etc. had the most outflows in the past week. The hot - trend strategy for ETFs includes industries such as photovoltaic semiconductors, environmental protection and new energy, energy and chemicals, and power grid equipment [25]. 3.1.3 Capital Flow Resonance The margin trading funds had the largest net inflow of 6249 million yuan in the power equipment and new energy sector last week, and the large - order funds had the largest net inflow of 1323 million yuan in the banking sector. This week, the recommended industries are agriculture, forestry, animal husbandry and fishery, construction, electric power and public utilities, and petroleum and petrochemicals [2][31]. 3.2 Factor Tracking 3.2.1 Style Factors The market this week shows the characteristics of "momentum continuation, high volatility, and high liquidity". The volatility factor and the liquidity factor both achieved positive returns, and the momentum factor also had a positive return [39]. 3.2.2 Alpha Factors - **By Time**: Recently, the reversal and cash - flow factors have performed well. The short - term reversal factor had the best performance in the past month, with a long - position excess return of 1.16% [43]. - **By Index**: In large - cap indexes such as the Shanghai - Shenzhen 300, profit - growth and analyst - expectation factors are dominant. In small - cap indexes such as the CSI 1000, R & D intensity and growth factors perform better. As the market capitalization moves from the CSI 800 to the CSI 1000, the excess returns of most factors show an upward trend [45].

Investment Rating - The report maintains a positive investment rating for the automotive and automotive parts industry, highlighting key companies to focus on, including Geely, Xpeng, Li Auto, BYD, and Xiaomi Group [5][10]. Core Viewpoints - The automotive industry is undergoing significant transformation driven by electrification and automation, with a focus on the T-chain as a core investment theme [10][11]. - The report emphasizes the importance of the upcoming mass production of humanoid robots by Tesla and other companies, which is expected to catalyze growth in the robotics sector [11][19]. - The report suggests that the expansion of the used vehicle replacement subsidy policy will stimulate demand in the heavy truck market, contributing to a recovery in domestic demand [27][28]. Summary by Sections Weekly Market Performance - The automotive sector underperformed the market, with a decline of 0.5% from November 3 to November 9, 2025, ranking 25th among sub-industries [33]. - Specific segments such as commercial passenger vehicles and automotive parts saw increases of 1.5%, while passenger vehicles and commercial freight vehicles declined by 2.4% and 4.6%, respectively [33]. Passenger Vehicles - The report highlights the positive impact of the continued implementation of the vehicle replacement policy, which includes subsidies for scrapping older vehicles, thereby stimulating domestic demand [13][43]. - Recommended companies in the passenger vehicle segment include Geely, Xpeng, BYD, Xiaomi Group, and Li Auto, focusing on those with strong prospects for growth in smart and global markets [14][15]. Intelligent Electric Vehicles - The report anticipates accelerated growth in the intelligent electric vehicle sector, with a focus on the increasing adoption of advanced driving technologies [16][17]. - Key recommendations include companies involved in smart driving and intelligent cockpit technologies, such as Berteli and Horizon Robotics [18]. Robotics - The report identifies the mass production of humanoid robots as a pivotal development, with Tesla's Optimus V3 expected to launch in 2026, marking a new era in embodied intelligence [19][20]. - Companies involved in automotive robotics, such as Top Group and Berteli, are highlighted as key players in this emerging market [21]. Heavy Trucks - The heavy truck market is expected to benefit from expanded subsidies for replacing older vehicles, with a significant increase in sales observed in September 2025 [27][28]. - Recommended companies in this segment include China National Heavy Duty Truck Group and Weichai Power, which are well-positioned to capitalize on the recovery in demand [28]. Tires - The tire industry is experiencing growth driven by high demand and the expansion of production capabilities, particularly in overseas markets [29][30]. - Recommended companies include Sailun Tire and Senkiren, which are expected to benefit from their strong research capabilities and global expansion strategies [31].

Investment Rating - The report maintains a positive investment rating for the domestic computing power sector, emphasizing the potential of supernodes and aerospace computing as key growth areas [5]. Core Insights - Supernodes are expected to become a mainstream technology under cluster expansion, significantly enhancing training and inference capabilities, thus driving the development of the domestic computing power ecosystem [3][41]. - Aerospace computing is gaining attention from major tech companies and is anticipated to be a crucial direction for domestic computing power development [3][41]. - The report highlights key investment opportunities in domestic AI computing, including chip design, advanced wafer manufacturing, liquid cooling solutions, and AI servers [3][41]. Summary by Sections Market Review - During the week of November 3-7, the CSI 300 index rose by 0.82%, while the small and medium-sized board index fell by 0.59%, and the ChiNext index increased by 0.65%. The computer sector (CITIC) saw a decline of 2.08% [1][49]. Industry News - Major developments include the launch of the world's first single-cabinet 640-card supernode by Zhongke Shuguang, which integrates advanced cooling and power supply technologies [3][45]. - The report notes that two leading domestic computing power companies, Moer Thread and Muxi Co., are set to go public, which could catalyze further growth in the sector [3][29]. Company Dynamics - Fangzhi Technology plans to reduce its shareholding by up to 3% due to personal financial needs, without affecting the company's control [2]. - Suochen Technology is acquiring a 60% stake in Beijing Likong Yuantong Technology for approximately 192 million yuan, indicating active consolidation in the sector [2][47]. Investment Recommendations - The report suggests focusing on key players in domestic AI computing, including chip design leaders like Cambrian and Haiguang Information, as well as advanced wafer manufacturers like SMIC [3][41]. - In aerospace computing, it recommends monitoring core companies such as Putian Technology and Shunhao Co., along with satellite internet leaders [3][41].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][6]. Core Views - The company is planning to acquire a controlling stake in Zhuhai Noah Changtian Storage Technology Co., Ltd., which will indirectly provide control over SkyHigh Memory Limited (SHM), a leading global 2D NAND enterprise. This acquisition is expected to enhance the company's storage product line and market reach [3]. - The actual controllers of the company are not participating in the pre-IPO share transfer, which involves approximately 5.58 million shares, accounting for 3.77% of the total share capital [2]. Financial Forecasts - The projected revenue for the company is expected to grow from 1,804 million yuan in 2024 to 3,124 million yuan in 2027, reflecting a compound annual growth rate (CAGR) of approximately 26% [5][10]. - The net profit attributable to the parent company is forecasted to be 292 million yuan in 2024, dropping to 125 million yuan in 2025, and then recovering to 432 million yuan by 2027, indicating significant volatility in profitability [5][11]. - The earnings per share (EPS) is expected to fluctuate from 1.98 yuan in 2024 to 2.92 yuan in 2027, with a notable dip in 2025 [5][11]. Market and Product Strategy - The acquisition of SHM is anticipated to create synergies in product offerings, market expansion, and technological capabilities, thereby enhancing the company's competitive position in the global storage market [3]. - The company is optimistic about the recovery of the NOR Flash business and the increasing application of its products in AI edge computing, which supports the positive outlook for future growth [4].