Investment Rating - The report suggests a positive outlook for the industry, particularly focusing on the recovery of pig prices and the profitability of leading farming enterprises [29][30]. Core Insights - The price of piglets has rapidly increased week-on-week, while daily slaughter volumes are slightly lower than the same period last year [10][29]. - The average selling price of commodity pigs has decreased by 0.64% week-on-week, currently at 15.58 CNY/kg, while the average price of piglets has risen by 10.71% to 448.10 CNY/head [16][29]. - The report highlights a significant increase in the actual slaughter volume, which rose by 11.14% week-on-week, indicating a strong demand ahead of the Spring Festival [24][29]. Summary by Sections Pig Farming - The actual slaughter volume in December increased by 13.29% month-on-month, with a planned slaughter volume of 12.82 million heads in January, reflecting a 1.39% month-on-month growth [25]. - The average profit for self-bred pigs is reported at 157.32 CNY/head, although it has decreased by 45.24 CNY from the previous week [27]. Investment Strategy - The report recommends focusing on leading enterprises with scale and cost advantages in pig farming, such as Muyuan Foods, Wens Foodstuff Group, and others [30][32]. - In the poultry sector, it suggests monitoring companies with proprietary breeding sources like Shennong Development and Yisheng Livestock [32]. Market Performance - The agricultural sector index rose by 3.89%, outperforming the CSI 300 index by 1.75% during the week [34]. - The report notes that the feed sector and aquaculture have shown significant gains, indicating a positive trend in the agricultural market [34].

Investment Rating - The report maintains an "Accumulate" rating for the industry [7] Core Viewpoints - The current downtrend in raw milk prices has been more severe than expected, leading to continuous pressure on the performance of listed dairy and livestock companies. However, since Q3 2024, there has been a gradual improvement in raw milk prices, indicating a potential recovery in the industry [6][18] - The supply-demand imbalance has been a significant challenge, with milk consumption growth slowing down post-pandemic, resulting in negative growth in 2022 and 2023. The report anticipates that the oversupply situation will gradually ease, leading to a more balanced supply-demand dynamic in 2025 [2][3][41] Summary by Sections 1. Raw Milk Price Downtrend and Performance Pressure - The average price of fresh milk in major production areas was 3.12 RMB/kg as of January 2, 2025, reflecting a year-on-year decline of 14.80%. The current downtrend has lasted nearly three and a half years, with prices dropping by 28.77% from their peak [15][18] - The performance of listed dairy companies has been adversely affected, with significant inventory write-downs and credit impairment losses impacting profitability [20][21] 2. Review of Raw Milk Cycle - The report identifies three cycles in the domestic raw milk market, with the current cycle starting in mid-2021. The previous cycles were marked by significant events such as the melamine scandal and rapid import growth, which have shaped the industry's dynamics [30][31] - The current cycle has seen a substantial increase in milk production capacity, leading to an oversupply situation exacerbated by declining consumer demand [37][39] 3. Supply Reduction and Industry Recovery Outlook - The report indicates that the gap between raw milk supply and demand is beginning to narrow, with expectations for a gradual recovery in the industry as supply constraints take effect. The number of dairy cows has been decreasing, and the overall supply is projected to decline in 2024 [3][41] - The performance of listed dairy companies showed signs of marginal improvement in Q3 2024, with revenue declines slowing and net profit showing a slight increase compared to previous quarters [4][22] 4. Investment Recommendations - The report suggests focusing on leading companies such as Yili and New Dairy Industry, which are expected to benefit from valuation recovery and ongoing performance improvements. The potential for dividend income is also highlighted as a key investment consideration [6][21]

Investment Rating - The report maintains an "Overweight" rating for the automotive industry [3] Core Insights - The automotive market is experiencing a strong performance with 2024 sales expected to reach a historical high, driven by continuous new model releases and sustained consumer demand [1][9] - Total vehicle sales in December reached 3.489 million units, a year-on-year increase of 10.5%, with cumulative sales for 2024 projected at 31.436 million units, reflecting a 4.5% growth [1][9] - The penetration rate of new energy vehicles (NEVs) reached 45.8% in December, with NEV sales for 2024 expected to be 12.866 million units, a 35.5% increase year-on-year [1][9] Summary by Sections 1. Weekly Discussion: 2024 Automotive Sales Reach New Highs - December 2024 saw nationwide automotive sales of 3.489 million units, up 10.5% year-on-year [1][9] - Cumulative sales for 2024 are projected at 31.436 million units, marking a 4.5% increase [1][9] - The inventory situation shows a comprehensive dealer inventory coefficient of 1.1, down 5% year-on-year [1][9] - NEV sales in December were 1.596 million units, a 34% increase, with a penetration rate of 45.8% [1][9] 2. Investment Strategy and Key Focus - The report suggests focusing on undervalued leading companies in the automotive sector, particularly in the NEV space, such as BYD, Changan Automobile, and Li Auto [2][22] - Key companies to watch include those with stable performance and low valuations, like Huayu Automotive and Fuyao Glass [2][22] - The report emphasizes the importance of strong automakers driving demand for core components, highlighting companies like Top Group and Wencan [2][22] 3. Market Review - The automotive sector's weekly performance was a 4.57% increase, ranking 8th among 31 sectors [7][24] - The automotive industry outperformed the CSI 300 index, which saw a 2.14% increase [7][24] - The top-performing stocks in the automotive sector included Jun Chuang Technology and Tai Xiang Shares [7][24]

Group 1 - The report indicates that the five major indices tracked last week all experienced gains, reflecting strong buying power at low levels, and the market remains in a broad oscillation pattern [2][10][20] - It is noted that as the year-end approaches and with the long holiday for the Spring Festival, increased uncertainty may lead to a generally stable trading performance before the holiday [2][20] - The average price-to-earnings ratio of the market is reported at 12.44, with a total of 5,399 stocks listed [5][21] Group 2 - Last week, the performance of major indices was as follows: CSI 300 increased by 2.14%, Shanghai Composite Index by 2.31%, Shenzhen Component Index by 3.73%, ChiNext Index by 4.66%, and CSI 500 by 4.06% [10][11] - All 31 first-level industry indices tracked by Shenwan experienced gains, with the top five performing industries being social services, media, computer, communication, and machinery equipment [11][12] - The total trading volume was 5,185.25 billion shares, with a trading value of 60,041.56 billion yuan, and 4,924 stocks rose while 444 fell [12][13] Group 3 - As of last weekend, 11 stocks reached historical highs while 5 reached historical lows, with 237, 115, and 71 stocks hitting new highs over the past 30, 60, and 120 days respectively [14][15] - The margin trading data shows a weekly increase in financing balance of approximately 6.9 billion yuan and a decrease in the margin balance of about 0.1 billion yuan [14][15]

Investment Rating - The report maintains an "Accumulate" rating for the securities industry [5] Core Viewpoints - The recent increase in the securities industry index outperformed the Shanghai and Shenzhen 300 index, indicating a significant rebound in the market, although this does not necessarily imply a resolution of valuation pressures [3][26] - The report highlights the importance of matching industry growth rates with valuations in the short term [3][26] - The People's Bank of China and the China Securities Regulatory Commission have initiated measures to stabilize the capital market, including a focus on stock buybacks and increased financing options for listed companies [9][10] Market Review - For the week of January 13-17, the Shanghai and Shenzhen 300 index rose by 2.14%, while the securities industry index increased by 3.96%, with all stocks in the sector showing gains [11][12] - The top five performing stocks in the securities sector were Guosheng Jinkong, Jinlong Co., Dongfang Caifu, Northeast Securities, and Hatou Co. [12][13] Weekly Investment Strategy - The report suggests that the recent rise in the securities industry is likely a reflection of overall market recovery rather than a decrease in valuation pressure, emphasizing the need to consider growth and valuation alignment [3][26]

Investment Rating - The report maintains an "Accumulate" rating for the industry [6] Core Insights - The sales of new energy vehicles (NEVs) in China showed stable growth, with December 2024 sales reaching 1.596 million units, a year-on-year increase of 34%, and an annual total of 12.865 million units, up 35.5% [11][12] - The penetration rate of NEVs reached 45.7% in December 2024, with an annual penetration rate of 40.9% [11] - The total installed capacity of power batteries in December 2024 was 75.4 GWh, reflecting a year-on-year growth of 57%, with a cumulative total of 549 GWh for the year, up 41% [12] - The report expresses optimism for the NEV market's development in 2025 as manufacturers accelerate their transition to new energy [11] Summary by Sections 1. New Energy Vehicle Sales - NEV sales in December 2024 were 1.596 million units, a 34% increase year-on-year, with a total of 12.865 million units sold in 2024, marking a 35.5% increase [11] 2. Power Battery Installation - The power battery installation volume in December 2024 was 75.4 GWh, a 57% year-on-year increase, with a total of 549 GWh for the year, reflecting a 41% growth [12] 3. Types of Power Batteries - In December 2024, lithium iron phosphate (LFP) battery installations reached 61 GWh, accounting for 81% of total installations, with a year-on-year growth of 95%. In contrast, ternary battery installations were 14.3 GWh, down 13.9% [18] - For the entire year, LFP battery installations totaled 409 GWh (75% of total), up 57%, while ternary batteries reached 138.9 GWh (25% of total), up 10% [18] 4. Leading Companies in Power Battery Installation - In December 2024, CATL's battery installation volume was 34.3 GWh (45% of total), up 61% year-on-year, while BYD's was 17.5 GWh (23% of total), up 59% [29] - For 2024, CATL's total battery installations were 246 GWh (45% of total), a 47% increase, and BYD's were 135 GWh (25% of total), up 28% [29] 5. Market Performance - The power equipment industry experienced a weekly increase of 3.66%, ranking 15th among 31 primary industries, outperforming the CSI 300 index [42] - The weekly performance of sub-sectors included significant gains in electric motors, other power equipment, photovoltaic equipment, and wind power equipment [42]

Investment Rating - The report maintains an "Overweight" rating for the food and beverage industry [7] Core Insights - The increase in banquet reservations is expected to support the consumption of liquor during the Spring Festival, with a notable growth in wedding bookings across various regions in 2025, ranging from 20% to 70% compared to 2024 [1][20] - The white liquor industry is currently facing price and inventory pressures, with a trend towards differentiation among brands. The market is expected to undergo a destocking cycle despite short-term sales increases during peak seasons [2][20] - The report highlights a cautious attitude from foreign investors towards the macro consumption outlook, as evidenced by a decrease in holdings in the food and beverage sector [3][22] Summary by Sections Market Review - The food and beverage index fell by 3.46% in the week of January 6-10, ranking 29th among 31 industries, underperforming the CSI 300 index by 2.33% [12] - Year-to-date, the food and beverage index has also decreased by 6.63%, ranking 18th among 31 industries [12] Investment Strategy - The report suggests identifying investment targets in the white liquor sector based on scene engagement, regional optimization, channel clearing, and dividend rate enhancement. Key brands to watch include Guizhou Moutai, Wuliangye, and Shanxi Fenjiu [5][31] - It also recommends focusing on beer companies like Yanjing Beer that may benefit from operational improvements and cost reductions [31] - In the condiment sector, companies like Haitian Flavoring and Angel Yeast are highlighted for their resilient performance [31] Industry Dynamics - The report notes a significant increase in the opening of new outlets for Wuliang Spring in Xi'an, with a 117% growth in bottle openings compared to 2023 [32] - The report also mentions that the overall price of liquor and beverages has seen a decline, with a 1.2% year-on-year decrease in December 2024 [35]

Investment Rating - The report suggests a positive outlook for the automotive industry, indicating a recovery trend supported by government policies and market conditions [4][12]. Core Insights - The recent policy announcement by the National Development and Reform Commission and the Ministry of Finance aims to enhance the "old-for-new" vehicle replacement program, particularly for electric buses and battery updates, increasing subsidies from 60,000 yuan to 80,000 yuan per vehicle [1][9]. - The scope of vehicle scrappage subsidies has been expanded to include certain fuel vehicles meeting the National IV emission standards, with specific subsidies for consumers trading in older vehicles for new energy or low-displacement fuel vehicles [2][10]. - The report emphasizes the importance of focusing on undervalued leading companies in the automotive sector, particularly those involved in electric and intelligent vehicle technologies, as well as domestic replacement opportunities arising from the "domestic circulation" strategy [12][14]. Summary by Sections 1. Policy Updates - The government has increased subsidies for electric buses and battery replacements, with an average subsidy of 80,000 yuan per vehicle for those over 8 years old [1][9]. - The eligibility for scrappage subsidies has been broadened to include older fuel vehicles, with specific subsidy amounts for new energy vehicles and low-displacement fuel vehicles [2][10]. 2. Investment Strategy - The report recommends focusing on undervalued leading companies in the automotive sector, including BYD, Changan Automobile, and Geely, as well as stable component manufacturers like Huayu Automotive and Fuyao Glass [4][12]. - Key investment targets include companies with a first-mover advantage in the new energy sector and those benefiting from domestic replacement trends [12][14]. 3. Market Performance - The automotive sector outperformed the broader market, with a weekly increase of 1.31%, while major indices like the Shanghai Composite Index and CSI 300 saw declines [15][18]. - The report highlights the top-performing stocks in the automotive sector, indicating a positive market sentiment [15][20].

Investment Rating - The report maintains an "Accumulate" rating for the securities industry [5] Core Viewpoints - The securities industry is currently facing high valuation pressures and future performance growth challenges, indicating a need for short-term digestion of these pressures [3][25] - The recent meeting held by the China Securities Regulatory Commission (CSRC) emphasized the importance of capital market reform and development, aiming for a stable and healthy market environment [11][12] Market Review - During the week of January 6 to January 10, the CSI 300 index decreased by 1.13%, while the securities industry index fell by 2.22%, with 4 stocks rising and 46 stocks declining within the sector [2][14] - The top five performing stocks in the securities sector were Dongxing Securities, Hongta Securities, Tianfeng Securities, Haitong Securities, and Changjiang Securities, while the bottom five were Jinlong Co., Harbin Investment, Huaxi Securities, Shouchuang Securities, and Huaxin Securities [15][16] Industry Fundamentals - The industry consists of 50 listed companies, with an average price-to-earnings (P/E) ratio of 25.25, compared to the market average P/E ratio of 12.26 [6][28]

Investment Rating - The report maintains an "Accumulate" rating for the industry [3] Core Insights - The price of silicon wafers continues to rise due to supply shortages, with N-type G10L wafers reaching an average transaction price of 1.18 yuan per piece, a 7.27% increase, and N-type G12 wafers at 1.55 yuan per piece, a 9.15% increase [1][10] - The increase in silicon wafer prices is primarily driven by strong demand from downstream buyers and accelerated inventory turnover among suppliers [1][10] - Battery prices are also rising, with M10 single crystal TOPCon battery prices increasing to 0.29 yuan/W, a 1.75% increase, while module prices remain stable due to high inventory levels [2][11] Summary by Sections Weekly Discussion - Silicon wafer prices are experiencing significant increases due to supply-demand imbalances, with various sizes showing notable price hikes [1][10] - Integrated companies are resuming production due to favorable profit margins from previously accumulated raw materials [1][10] Market Review - The electric equipment industry saw a weekly decline of 1.33%, underperforming compared to the Shanghai Composite Index and other major indices [6][16] - Specific segments within the industry, such as electric motors and photovoltaic equipment, showed varying performance, with some segments experiencing gains [6][16] Investment Strategy - The report suggests that ongoing domestic policies aimed at eliminating outdated production capacity will benefit the photovoltaic industry, potentially leading to cost reductions in silicon wafers, battery cells, and modules [5][14] - Recommended companies to watch include Longi Green Energy and Aiko Solar, which are well-positioned in the integrated supply chain and battery technology [5][14]