Investment Rating - The investment rating for the company is "Hold" with a downgrade from previous ratings [6][27]. Core Views - The company reported a revenue of 2.18 billion yuan for 2024, representing a year-on-year growth of 12.4%, while the net profit attributable to shareholders decreased by 58% to 190 million yuan [1][11]. - The company is experiencing a decline in profitability due to lower prices of valine, despite an increase in production capacity and sales volume [2][12]. - The company is actively pursuing new projects, which are expected to contribute significantly to revenue growth in 2025 and beyond [3][24]. Financial Performance - In 2024, the company achieved a gross profit of 543 million yuan, down 2.43 billion yuan year-on-year, with a gross margin of 24.9%, a decrease of 15.6 percentage points [3][19]. - The first quarter of 2025 saw a revenue of 687 million yuan, a year-on-year increase of 37.2%, but the net profit attributable to shareholders fell by 41% [11][12]. - The company’s amino acid products generated 1.51 billion yuan in revenue, accounting for 69% of total revenue, with a production volume of 99,400 tons, an increase of 20.7% year-on-year [2][13]. Project Development - The company is advancing several projects, including a 50,000-ton bio-based succinic acid production facility and a 50,000-ton bio-based 1,3-propanediol project, which are expected to provide significant revenue increments in the future [3][24]. - The company has maintained a high level of R&D investment, with R&D expenses reaching 124 million yuan in 2024, an increase of 15 million yuan from the previous year [22]. Valuation Forecast - The projected net profits for the company from 2025 to 2027 are estimated to be 293 million yuan, 371 million yuan, and 418 million yuan respectively, reflecting a downward adjustment from previous estimates [4][27].

Investment Rating - Industry rating is maintained at "Outperform the Market" [4] Core Viewpoints - The construction sector has shown a positive performance with a 1.33% increase, outperforming the CSI 300 by 0.36 percentage points. The focus on infrastructure investment in the central and western regions has significantly increased, with major projects and events expected to catalyze growth [1][3] - Continuous recommendations are made to focus on infrastructure investment opportunities in the central and western regions, particularly in construction, cement, and civil explosives, as well as key industries like coal chemical and nuclear power [1][2] Summary by Sections Major Projects and Catalysts in Central and Western Infrastructure - Significant projects include the Three Gorges Waterway New Channel with an investment of approximately 76.6 billion yuan and a total construction period of 100 months. Key beneficiaries include Yipuli and Kailong Co. [12][21] - The Zhejiang-Jiangxi-Guangdong Canal project is estimated to require 320 billion yuan and is expected to start construction during the 14th Five-Year Plan period, with key beneficiaries being Huase Group and Guotai Group [13][21] - In Tibet, the opening of the Yarlung Tsangpo River downstream hydropower project is anticipated, with an estimated investment exceeding 1 trillion yuan and a planned capacity of 60 million kilowatts [19][21] - The Xinjiang region is seeing the commencement of the China-Kyrgyzstan-Uzbekistan Railway, with a total cost of 8 billion USD, which is expected to catalyze related investments [20][21] Market Review - The construction index increased by 1.33% during the week, with the building design and service sectors showing strong performance, achieving gains of 2.09% and 1.34% respectively [3][23] Investment Recommendations - Emphasis on cyclical opportunities arising from improvements in infrastructure physical volume, with a focus on traditional construction blue-chip stocks and regional high-growth companies [24][28] - Recommendations include companies like Sichuan Road and Bridge, China Communications Construction, and China Railway Construction, which are expected to benefit from ongoing infrastructure projects [28] - Attention is drawn to emerging business directions and the transformation of the construction sector, particularly in AI and cleanroom sectors, with specific companies recommended for investment [29][30]

Investment Rating - Industry rating is maintained as "Outperform the Market" [5] Core Insights - The report highlights that Kid Wang plans to acquire 65% of the equity in Jiangsu Xingsiyu, aiming to accelerate its goal of becoming the preferred service provider for Chinese parent-child families. The acquisition amount is 1.65 billion yuan, corresponding to a PE of 9 times the net profit for 2024, with no performance guarantees [1] - The hair care industry in China is projected to grow significantly, with market size increasing from 43.2 billion yuan in 2020 to 57.1 billion yuan in 2023, representing a CAGR of 9.7%. It is expected to reach 81.25 billion yuan by 2028, with a CAGR of 7.3% from 2023 to 2028 [2] - Kid Wang's acquisition strategy is part of a broader three-expansion strategy, which includes previous acquisitions in the maternal and infant sector and beauty industry, indicating a focus on diversifying its service offerings [1][2] Summary by Sections Acquisition Details - Kid Wang announced the acquisition of 65% of Jiangsu Xingsiyu for 1.65 billion yuan, with plans to use 429 million yuan of previously raised funds for store upgrades towards this acquisition [1] - The acquisition is part of a strategy to deepen its presence in the hair care industry, which aligns with its goal of becoming a leading service provider for families [1] Market Overview - The hair care market in China is currently valued at nearly 60 billion yuan, with significant growth potential. The market is expected to continue expanding, driven by increasing consumer demand for hair care products and services [2] - In 2024, Xiyu's revenue is projected to be 723 million yuan, with a net profit of 183 million yuan, indicating a healthy growth trajectory [2] Synergy and Collaboration - The report outlines potential synergies between Kid Wang and Xiyu, including member collaboration, market layout, channel sharing, industrial synergy, and business model expansion [3] - Kid Wang's existing customer base and store network can enhance Xiyu's market reach, while Xiyu's product offerings can complement Kid Wang's service ecosystem [3] Financial Projections - The report anticipates steady growth for Kid Wang's core business, with expected net profits of 350 million yuan and 480 million yuan for 2025 and 2026, respectively, corresponding to PE ratios of 53 and 39 times [3]

Investment Rating - The investment rating for the company is "Hold" with a downward adjustment [6][27]. Core Views - The company reported a revenue of 2.18 billion yuan in 2024, representing a year-on-year growth of 12.4%, while the net profit attributable to shareholders decreased by 58% to 190 million yuan [1][11]. - The amino acid products generated 1.51 billion yuan in revenue, accounting for 69% of total revenue, with a production volume of 99,400 tons, an increase of 20.7% year-on-year [2][13]. - The company is actively advancing new projects, including the construction of various production bases, which are expected to provide significant growth in 2025 [3][24]. Financial Performance - In 2024, the company achieved a gross profit of 543 million yuan, a decrease of 243 million yuan year-on-year, with a gross margin of 24.9%, down 15.6 percentage points [3][19]. - The first quarter of 2025 saw a revenue of 687 million yuan, a year-on-year increase of 37.2%, while the net profit attributable to shareholders was 51 million yuan, down 41% [11][12]. - The company’s EBITDA for 2024 is projected at 450.26 million yuan, with a significant decline in net profit forecasted for 2025 to 293 million yuan [5][30]. Production and Sales - The company’s production capacity is being expanded, with significant increases in sales volume from various production bases, particularly the Qinhuangdao and Chifeng bases [2][12]. - The average price of valine, a key product, has decreased significantly by 36.5% year-on-year, impacting overall profitability [2][13]. Research and Development - The company has maintained a high level of R&D investment, with R&D expenses reaching 124 million yuan in 2024, an increase of 15 million yuan from the previous year [22]. - The company has filed for 10 new invention patents and 8 utility model patents in 2024, bringing the total number of patents to 247 [22]. Future Outlook - The company is expected to see a gradual recovery in profitability as new projects come online, with net profit forecasts for 2025, 2026, and 2027 at 293 million, 371 million, and 418 million yuan respectively [4][27]. - The ongoing construction of various production facilities is anticipated to contribute significantly to revenue growth in the coming years [3][24].

金融工程 | 金工定期报告 2025 年 06 月 08 日 作者 吴先兴 分析师 SAC 执业证书编号：S1110516120001 wuxianxing@tfzq.com 韩乾 分析师 SAC 执业证书编号：S1110522100001 hanqian@tfzq.com 相关报告 1 《金融工程：金融工程-因子跟踪周 报 ： 小 市 值 、 成 长 因 子 表 现 较 好 -20250607》 2025-06-07 2 《金融工程：金融工程-基金风格配 置监控周报：权益基金连续两周上调大 盘股票仓位》 2025-06-02 3 《金融工程：金融工程-哪些行业景 气度在上行？——细分行业景气度跟踪 -20250601》 2025-06-01 金融工程 证券研究报告 基金风格配置监控周报： 权益基金本周上调小盘股票仓位 公募基金风格监控 基金季报中披露有基金前十大重仓股，同时企业季度报告中披露有企业的 前十大股东信息（主要使用上市公司 1、3 季度十大股东信息），结合这两 部分信息我们可以得到基金持仓更加详细的重仓股信息。因此模拟全部股 票持仓只需要估计基金剩余的非重仓持股明细。 基金季报（T 期）披露有股票 ...

Group 1: Davis Double-Click Strategy - The Davis Double-Click strategy involves buying stocks with growth potential at lower price-to-earnings (PE) ratios, selling them once growth is realized and PE increases, achieving a "double-click" effect on earnings per share (EPS) and PE [1][8] - The strategy achieved an annualized return of 26.45% during the backtest period from 2010 to 2017, outperforming the benchmark by 21.08% [10] - Year-to-date, the strategy has generated a cumulative absolute return of 14.81%, exceeding the benchmark by 14.17% [11] Group 2: Net Profit Gap Strategy - The Net Profit Gap strategy focuses on selecting stocks based on fundamental and technical resonance, where "net profit" refers to earnings surprises and "gap" indicates a significant upward price jump on the first trading day after earnings announcements [13] - Since 2010, this strategy has achieved an annualized return of 28.88%, with an annualized excess return of 27.23% [16] - The current year's cumulative absolute return for the strategy is 20.66%, outperforming the benchmark by 20.02% [16] Group 3: Enhanced CSI 300 Portfolio - The Enhanced CSI 300 portfolio is constructed based on investor preferences, including GARP (Growth at a Reasonable Price), growth, and value investing styles, utilizing PBROE and PEG factors to identify undervalued stocks with strong profitability and growth potential [18] - The portfolio has shown stable excess returns in historical backtesting, with a year-to-date excess return of 13.29% relative to the CSI 300 index [22] - The strategy has achieved a weekly excess return of 2.57% [22]

Investment Rating - Industry Rating: Outperforming the market (maintained rating) [6] Core Viewpoints - The report maintains a positive outlook on the AI industry as a key investment theme for the year, anticipating that 2025 may become a pivotal year for domestic AI infrastructure competition and application development [3][19] - The report emphasizes the importance of monitoring AI industry dynamics and investment opportunities in AI applications, alongside a focus on the "AI + overseas expansion + satellite" core investment targets [3][20] - The report highlights the acceleration of low-orbit satellite development and the promotion of the low-altitude economy, recommending companies involved in these sectors [24] Summary by Sections 1. Artificial Intelligence and Digital Economy - Key recommendations for optical modules and devices include: Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication, and Yuanjie Technology; suggested companies include: Guangxun Technology, Suosi, Dingtong Technology, and others [4][22] - For switch server PCBs, key recommendations are: Hudian Co., ZTE Corporation, and Unisplendour; suggested companies include: Shengke Communication, Ruijie Networks, and others [4][22] - Low valuation and high dividend companies in cloud and computing IDC resources include: China Mobile, China Telecom, and China Unicom [4][22] - AIDC and cooling solutions key recommendations include: Yingweike, Runze Technology, and others; suggested companies include: Shenling Environment, Hongjing Technology, and others [4][22] - AIGC applications and edge computing key recommendations include: Yiyuan Communication, Guanghetong, and Meige Intelligent; suggested companies include: Caixun Co., Mengwang Technology, and others [4][22] 2. Offshore Wind and Marine Cables - Key recommendations for marine cables include: Hengtong Optic-Electric, Zhongtian Technology, and Oriental Cable [5][23] - The report suggests focusing on companies with recovery potential in overseas markets, including: Huace Navigation, Weisheng Information, and others [5][23] 3. Satellite Internet and Low Altitude Economy - The report highlights the acceleration of national defense informatization and low-orbit satellite development, recommending companies such as Huace Navigation and Haige Communication; suggested companies include: Chengchang Technology, Zhenlei Technology, and others [6][24] 4. Market Performance Review - The communication sector rose by 5.06% during the week of June 3-6, outperforming the CSI 300 index by 4.18 percentage points [25] - Notable individual stock performances include: Huamai Technology, Zhongjia Bochuang, and Taicheng Light, which saw significant increases [26][29]

Investment Rating - The industry rating is maintained at "Outperform" [7] Core Insights - The semiconductor industry is expected to continue its optimistic growth trajectory in 2025, driven by AI applications and domestic substitution efforts [5] - The release of AI glasses by major companies like ByteDance and Xiaomi is anticipated to catalyze growth in the related supply chain [2][13] - The storage sector is experiencing price increases across various products, with DDR4 and LPDDR4X leading the price surge [3][20] Summary by Sections AI Glasses - ByteDance is in the substantial development phase of its self-developed AI glasses, integrating its "Doubao" model for visual interaction and lightweight design, potentially using the Hengxuan main control chip [2][14] - Xiaomi is also expected to enter the AI smart glasses market, leveraging its existing expertise in smart eyewear [2][18] Storage Market Overview - The storage market has seen a price increase for DDR4 and LPDDR4X products, with DDR4 8G 2666Mbps prices rising over 50% [3][21] - Embedded storage prices have generally increased by 5-10%, driven by rising NAND resource prices [3][21] - The NAND Flash market is projected to see contract price increases of 3-8% in Q2 2025 and 5-10% in Q3 2025 [4][22] Market Trends and Predictions - The demand for AI infrastructure is expected to drive performance elasticity in enterprise storage products [4][5] - The semiconductor sector is witnessing a recovery in the industrial control market, indicating a positive trend for the analog segment [5] - The overall semiconductor market is projected to outperform major indices, with significant growth in the IC design sector [63][69]

Investment Rating - The industry rating is maintained as "Outperform" [7] Core Insights - The semiconductor industry is expected to continue its optimistic growth trajectory in 2025, driven by AI applications and domestic substitution efforts [5] - The storage sector is experiencing a price increase, with DDR4 and LPDDR4X leading the rise, and projections indicate further price growth in Q3 2025 [4][20] - The release of AI glasses by major companies like ByteDance and Xiaomi is anticipated to catalyze growth in the related supply chain [2][13] Summary by Sections AI Glasses - ByteDance is advancing its self-developed AI glasses, focusing on visual interaction and lightweight design, potentially using the Hengxuan main control chip [2][14] - Xiaomi is also expected to enter the AI smart glasses market, leveraging its existing expertise in smart eyewear [2][18] Storage Market Overview - The storage market has seen a significant price increase, particularly in DDR4 products, with an increase of over 50% for the 8G 2666Mbps variant [21][24] - Embedded storage prices have risen by 5-10%, driven by NAND resource price increases [21] - LPDDR products, especially low-capacity ones, have seen substantial price hikes, with LPDDR4 16Gb increasing by 66.7% [21][54] Q3 Outlook - NAND Flash contract prices are expected to rise by 3-8% in Q2 2025 and 5-10% in Q3 2025, while DDR4 prices are projected to increase by 18-23% in Q3 [4][22] - The demand for enterprise storage is expected to remain robust due to AI infrastructure needs and domestic substitution [4][5] Market Performance - The semiconductor sector outperformed major indices in the last week, with a 3.245% increase in the semiconductor industry index [63][67] - The IC design sector showed the highest growth among semiconductor sub-sectors, with a 4.5% increase [69]

Investment Rating - Industry Rating: Outperform the market (maintained rating) [6] Core Viewpoints - The report maintains a positive outlook on the AI industry as a key investment theme for the year, anticipating that 2025 may become a pivotal year for domestic AI infrastructure competition and application development [3][19] - The report emphasizes the importance of monitoring AI industry dynamics and investment opportunities in AI applications, as well as the potential for growth in the satellite internet sector due to recent domestic developments [3][20] Summary by Sections 1. Artificial Intelligence and Digital Economy - Key recommendations include: - Optical modules & optical devices: Focus on companies like Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication, and Yuanjie Technology [4][22] - Switches and server PCBs: Recommended companies include Hudian Co., ZTE, and Unisplendour [4][22] - Low valuation, high dividend companies in cloud and computing IDC resources: China Mobile, China Telecom, and China Unicom [4][22] - AIDC & cooling solutions: Key recommendations include Yingweike and Runze Technology [4][22] - AIGC applications/edge computing: Focus on companies like Guohua Communication and Meige Intelligent [4][22] 2. Offshore Wind and Submarine Cables - Key recommendations for submarine cables: Hengtong Optic-Electric, Zhongtian Technology, and Oriental Cable [5][23] - Focus on recovery and concentration of leading companies in overseas markets, with recommendations including Huace Navigation and Weisheng Information [5][23] 3. Satellite Internet and Low-altitude Economy - Accelerated development of low-orbit satellites and low-altitude economy, with key recommendations including Huace Navigation and Haige Communication [6][24] - Suggested companies to watch include Chengchang Technology and Zhenlei Technology [6][24] 4. Industry Performance Review - The communication sector rose by 5.06% during the week of June 3-6, outperforming the CSI 300 index by 4.18 percentage points [25] - Notable individual stock performances included Huamai Technology and Zhongjia Bochuang, both showing significant gains [26][29]