Investment Rating - The industry is rated as "Outperforming the Market," indicating a projected increase of over 10% relative to the market index in the next six months [4][7]. Core Insights - In September, the issuance of game licenses remained high, with 145 domestic games and 11 imported games approved, contributing to a total of 1,195 domestic games approved year-to-date [2]. - The newly approved game "Honkai: Star Rail" by miHoYo is a notable addition, focusing on a large world and creature collection, combining exploration with RPG elements, and featuring a PVE auto-battler gameplay [2]. - The game has garnered significant interest, with over 4.09 million pre-registrations by September 25, indicating strong market potential [2]. Summary by Sections Industry Overview - The game license issuance continues to show a stable upward trend, with a diverse range of products and well-known manufacturers involved [2][3]. - The overall supply side is consistently releasing new titles, reinforcing the normalization of license issuance and ongoing industry recovery [3]. Market Trends - Major companies are increasingly focusing on creature-raising games, with competitive titles emerging from Tencent and other developers, suggesting a crowded market landscape [2]. - The unique ecological design and gameplay of "Honkai: Star Rail" may allow it to carve out a niche in this competitive environment [2]. Investment Recommendations - It is advised to focus on leading companies with strong product pipelines, research capabilities, and diverse thematic layouts [3].

Investment Rating - The industry investment rating is "Outperform the Market," indicating an expected increase of over 10% in the industry index relative to the market over the next six months [4][8]. Core Insights - In August, the sales of excavators and loaders in China continued to show double-digit year-on-year growth, with excavator sales reaching 16,523 units (up 12.8%) and loader sales at 9,440 units (up 13.3%) [1][2]. - The recovery of the engineering machinery industry is supported by solid fundamentals and long-term logic, with domestic equipment renewal policies and infrastructure projects driving short-term demand, while global infrastructure needs and enhanced competitiveness of Chinese brands are expected to sustain overseas growth [3]. - The competition in the industry has shifted from price wars to comprehensive competition in technology, branding, channels, and supply chains, with leading companies in smart and electric technology expected to better navigate cyclical fluctuations and enjoy long-term growth benefits [3]. Summary by Sections Excavator Sales - In August, a total of 16,523 excavators were sold, marking a 12.8% year-on-year increase, with domestic sales at 7,685 units (up 14.8%) and exports at 8,838 units (up 11.1%) [2]. - From January to August 2025, 154,181 excavators were sold, reflecting a 17.2% year-on-year growth, with domestic sales of 80,628 units (up 21.5%) and exports of 73,553 units (up 12.8%) [2]. Loader Sales - In August, loader sales reached 9,440 units, a 13.3% year-on-year increase, with domestic sales at 4,774 units (up 18.3%) and exports at 4,666 units (up 8.69%) [2]. - For the first eight months of 2025, a total of 83,209 loaders were sold, representing a 12.9% year-on-year increase, with domestic sales of 44,945 units (up 20.2%) and exports of 38,264 units (up 5.3%) [2]. Future Outlook - The domestic market is expected to accelerate recovery due to equipment renewal and local government debt management policies, while the competitiveness of domestic manufacturers in overseas markets is anticipated to improve, driven by the cost-effectiveness of Chinese machinery [3]. - The engineering machinery industry is characterized by a resonance of domestic and international demand alongside technological upgrades, suggesting a positive outlook for companies with market advantages and proactive overseas strategies [3].

Market Overview - The A-share market experienced a collective decline on Friday, with the Shanghai Composite Index down 0.65%, the Shenzhen Component down 1.76%, and the ChiNext Index down 2.6%. The total trading volume in the Shanghai and Shenzhen markets was 21,466.51 billion yuan [1][7] - In the industry sector, oil and petrochemicals, environmental protection, and public utilities led the gains, while computer, electronics, and media sectors saw declines. Concept sectors such as soybeans, delisting, and glyphosate had the highest gains, while indices related to Tonghuashun Guo and AI PC saw the largest declines [1][7] Important News - From January to August, China's industrial enterprises above designated size achieved a total profit of 46,929.7 billion yuan, a year-on-year increase of 0.9%. In August, profits turned from a 1.5% decline in the previous month to a 20.4% increase [2][8] - The Ministry of Industry and Information Technology proposed several development suggestions at the 2025 World New Energy Vehicle Conference, including support for technological breakthroughs in automotive chips and batteries, and measures to expand market consumption [2][8] Industry Insights - The lithium battery sector saw a recovery in Q2 performance, with significant profit restoration in the anode and cathode material segments. The overall revenue of the lithium battery industry chain in H1 2025 was 400.76 billion yuan, a year-on-year increase of 13.74%, with net profit rising by 30.38% to 37.278 billion yuan [14][15] - The inverter export market remained stable, with August exports amounting to 6.284 billion yuan, a year-on-year increase of 2.07%. Cumulative exports from January to August reached 43.255 billion yuan, up 7.62% year-on-year [20][21] - The power equipment export sector showed stable performance, with total exports in August reaching 7.920 billion yuan, a year-on-year increase of 25.23%. Cumulative exports from January to August were 56.949 billion yuan, up 34.60% year-on-year [27][28] Investment Recommendations - The lithium battery industry is expected to continue its recovery, with a focus on midstream material companies and leading battery manufacturers as potential investment opportunities. Emerging technologies such as solid-state batteries are also highlighted for their growth potential [19] - In the power equipment sector, the recommendation is to focus on leading companies with strong market positions and technological advantages, particularly in the context of global renewable energy growth and increasing storage demand [25][32]

Investment Rating - The industry is rated as "Outperforming the Market" with an expected relative increase of over 10% compared to the broader market in the next six months [4]. Core Insights - In H1 2025, the lithium battery supply chain showed resilience with significant growth in demand for electric vehicles, leading to a notable increase in revenue and profit. The total revenue for the lithium battery supply chain reached 400.76 billion yuan, a year-on-year increase of 13.74%, while net profit attributable to shareholders was 37.278 billion yuan, up 30.38% year-on-year [1][14]. - In Q2 2025, the overall performance of the lithium battery supply chain continued to improve, with revenue of 213.65 billion yuan, a year-on-year increase of 12.81% and a quarter-on-quarter increase of 14.19%. The gross profit margin was 19.46%, showing a slight year-on-year decline but a quarter-on-quarter increase [1][14]. Summary by Sections Battery Segment - In H1 2025, the battery segment achieved a revenue of 263.24 billion yuan, a year-on-year increase of 9.34%, with a net profit of 33.077 billion yuan, up 27.37% year-on-year. In Q2 2025, revenue was 139.99 billion yuan, a year-on-year increase of 9.14% and a quarter-on-quarter increase of 13.58% [2][22]. Positive Electrode Materials - In H1 2025, the positive electrode segment saw revenue of 56.445 billion yuan, a year-on-year increase of 19.91%, with a net loss of 186 million yuan, narrowing by 76.50% compared to the previous year. In Q2 2025, revenue was 30.473 billion yuan, a year-on-year increase of 18.82%, achieving breakeven in net profit [2][28]. Negative Electrode Materials - The negative electrode segment reported revenue of 31.785 billion yuan in H1 2025, a year-on-year increase of 19.73%, with a net profit of 2.493 billion yuan, up 38.94%. In Q2 2025, revenue was 17.148 billion yuan, a year-on-year increase of 19.88% and a quarter-on-quarter increase of 17.16% [3][34]. Other Segments - The electrolyte segment had a revenue of 12.252 billion yuan in H1 2025, a year-on-year increase of 21.49%, with a net profit of 834 million yuan, up 9.49%. In Q2 2025, revenue was 6.295 billion yuan, a year-on-year increase of 13.43%, but net profit decreased by 2.58% [10][39]. - The separator segment faced pressure with a revenue of 7.661 billion yuan in H1 2025, a year-on-year increase of 19.02%, but a significant drop in net profit by 98.63%. In Q2 2025, revenue was 4.043 billion yuan, with a net loss of 650 million yuan [10][43]. - The auxiliary materials segment showed improvement, with structural components achieving revenue of 6.290 billion yuan in Q2 2025, a year-on-year increase of 25.92%, and net profit of 530 million yuan, up 22.05% [10][46]. Investment Recommendations - The report suggests actively monitoring midstream material companies for investment opportunities as their performance is expected to continue improving. Additionally, emerging technologies such as solid-state batteries and high-voltage lithium iron phosphate are rapidly developing, presenting further investment opportunities [9].

Market Overview - As of September 25, 2025, the Shanghai Composite Index closed at 3,853.30 points, a slight decrease of 0.12% compared to the end of August. The major indices showed mixed performance, with the STAR 50 and ChiNext indices experiencing significant gains while the Shanghai 50 index saw a minor decline [3][13]. - In August, the industrial added value for large-scale enterprises in China grew by 5.2% year-on-year, while the retail sales of consumer goods increased by 3.4% year-on-year. Fixed asset investment, excluding real estate, rose by 4.2% from January to August [10][48]. Market Liquidity and Risk Sentiment - The liquidity in the A-share market is expected to continue improving, with significant long-term funds holding approximately 21.4 trillion yuan in A-share market value, a 32% increase compared to the end of the 13th Five-Year Plan [3][26]. - The net reduction in major shareholders' holdings in September was 456.82 billion yuan, while the total amount of A-share unlocks was about 3,179.75 billion yuan, showing a decrease from the previous month [26][30]. - The average daily trading volume in the A-share market from September 1 to 25 was 24,545.88 billion yuan, reflecting a 6.36% increase from the previous month [30]. Valuation Levels - As of September 25, 2025, the dynamic price-to-earnings (PE) ratio for the STAR 50 index is at a historical high of 99.85% [41][44]. - The valuation of various industries shows that sectors like commerce, telecommunications, electronics, and media have PE ratios exceeding the historical 50% percentile, indicating strong market performance [46]. Policy Analysis - The macroeconomic environment remains stable, with the government implementing measures to boost consumption and expand domestic demand. Recent policies include a focus on enhancing service consumption and improving financial support [48][49]. - The People's Bank of China has indicated a supportive monetary policy stance, aiming to maintain liquidity and facilitate economic recovery [20][48].

投资要点： 变压器（>16kVA）：市场保持高景气，欧洲地区表现亮眼 8 月出口表现强劲，同比保持高增长。2025 年 8 月，我国变压器出口金 额为 47.18 亿元，环比增长 9.50%，同比增长 57.90%，环比增速加快， 同比延续高增态势。2025 年 1-8 月，我国变压器累计出口金额为 297.11 亿元，同比增长 51.42%，市场表现稳健。 分到达地区来看，欧洲地区表现亮眼，亚非地区延续高增长。2025 年 8 月，我国对亚洲、非洲、欧洲、北美的变压器出口金额分别为 20.27、 4.76、15.09、2.68 亿元，分别同比+65.39%、+28.03%、+138.03%，- 4.35%，我国对北美地区出口金额同环比有所下降，对欧洲出口金额表 现亮眼，同环比均大幅增长，对亚洲、非洲地区变压器出口同环比均保 持较高增速。 电表：出口同比回调，大洋洲地区表现较好 8 月出口同比持续回调。2025 年 8 月，我国电表出口金额为 8.73 亿元， 环比增长 5.36%，同比下降 25.84%。全年来看，2025 年 1-8 月，我国 电表累计出口金额为 70.02 亿元，同比下降 3.50%。 ...

Investment Rating - The industry is rated as "Outperforming the Market" with an expected relative increase of over 10% compared to the market index in the next six months [4][43]. Core Insights - In August 2025, China's inverter export amounted to 6.284 billion yuan, showing a month-on-month decrease of 3.39% but a year-on-year increase of 2.07%. Cumulatively, from January to August 2025, the total export reached 43.255 billion yuan, reflecting a year-on-year growth of 7.62%, indicating stable market performance [14][11]. Summary by Region Asia - In August 2025, the inverter export to Asia was 1.941 billion yuan, with a month-on-month decline of 5.48% and a year-on-year increase of 2.37%. Notably, exports to the UAE saw a significant year-on-year growth of 132.13%, while exports to Saudi Arabia and Pakistan faced substantial declines [2][15]. Europe - The export to Europe in August 2025 was 2.692 billion yuan, with a month-on-month decrease of 4.91% and a year-on-year decrease of 1.62%. The Netherlands showed a strong performance with a year-on-year growth of 27.95% [3][23]. North America - In August 2025, the export to North America dropped significantly to 182 million yuan, with both month-on-month and year-on-year declines of 22.45% and 24.1%, respectively [28]. Latin America - The export to Latin America was 557 million yuan in August 2025, reflecting a month-on-month decrease of 5.25% and a year-on-year decrease of 22.42% [8][28]. Africa - In August 2025, the export to Africa was 431 million yuan, showing a month-on-month increase of 5.4% and a year-on-year increase of 1.48%. South Africa's exports rebounded significantly, while Nigeria faced declines [29]. Oceania - The export to Oceania reached a new high of 491 million yuan in August 2025, with a month-on-month increase of 23.6% and a year-on-year increase of 245.87%, driven primarily by strong performance in Australia [9][29]. Export by Shipping Location - In August 2025, the inverter export amounts from Guangdong, Zhejiang, Anhui, and Jiangsu were 2.265 billion, 1.651 billion, 752 million, and 830 million yuan, respectively. Guangdong showed a slight year-on-year growth, while Jiangsu experienced a notable month-on-month decline [10][35]. Investment Recommendations - The report suggests that the global renewable energy installation is expected to grow rapidly, leading to increased demand for energy storage. It highlights the potential for growth in emerging markets across Asia, Africa, South America, and Oceania, recommending attention to leading companies with strong market positions [11][40].

Core Viewpoints - The A-share market showed mixed performance on Thursday, with the Shanghai Composite Index closing down 0.01%, the Shenzhen Component Index up 0.67%, and the ChiNext Index up 1.58. The total trading volume in the Shanghai and Shenzhen markets reached 23,708.5 billion yuan [2][7] - In terms of industry performance, media, telecommunications, and non-ferrous metals led the gains, while textiles, comprehensive sectors, and agriculture, forestry, animal husbandry, and fishery sectors lagged behind [2][7] - Concept sectors such as China AI 50, controllable nuclear fusion, and Kuaishou saw significant increases, while the China-South Korea Free Trade Zone, military equipment restructuring concepts, and Tianjin Free Trade Zone experienced declines [2][7] - In the Hong Kong market, the Hang Seng Index fell by 0.13%, while the Hang Seng Technology Index rose by 0.89%. Internationally, all three major U.S. indices closed lower, with the Dow Jones down 0.38%, S&P 500 down 0.5%, and Nasdaq down 0.5% [2][7] Important News - The National Healthcare Security Administration released the "National Long-term Care Insurance Service Project Directory (Trial)", which standardizes the service project content and fund payment scope, including 36 service items categorized into daily care and medical care [3][8] - The U.S. Department of Commerce announced that the final revision of the second quarter GDP growth rate was adjusted to 3.8%, an increase of 0.5 percentage points from previous estimates, exceeding market expectations [3][8]

Core Viewpoints - The A-share market saw all three major indices rise on Wednesday, with the Shanghai Composite Index up by 0.83%, the Shenzhen Component Index up by 1.8%, and the ChiNext Index up by 2.28%. The total trading volume in the Shanghai and Shenzhen markets reached 23,264.67 billion yuan [1][6] - In terms of industry performance, the leading sectors included power equipment, electronics, and media, while banking, coal, and telecommunications lagged behind [1][6] - Concept stocks such as SMIC, National Big Fund holdings, and BC battery concepts showed significant gains [1][6] - The Hong Kong market also experienced gains, with the Hang Seng Index rising by 1.37% and the Hang Seng Tech Index up by 2.53% [1][6] - In contrast, the overseas markets saw declines, with the Dow Jones down by 0.37%, the S&P 500 down by 0.28%, and the Nasdaq down by 0.33% [1][6] Important News - Eight departments, including the Ministry of Commerce, jointly issued guidelines to vigorously develop digital consumption, focusing on supply and demand collaboration, proposing 14 tasks across four areas: enriching digital consumption supply, cultivating digital consumption entities, optimizing support systems, and creating a favorable environment for digital consumption [2][7] - Nine departments, including the Ministry of Commerce, released 13 policy measures to promote service exports, which include utilizing existing funding channels, enhancing the role of innovation development funds, optimizing zero tax rate declaration procedures, increasing support for export credit insurance, and facilitating cross-border personnel and capital flow [2][7]

Core Insights - The A-share market showed mixed performance with the Shanghai Composite Index down by 0.18% and the Shenzhen Component Index down by 0.29%, while the ChiNext Index rose by 0.21% [1][7] - The total trading volume in the Shanghai and Shenzhen markets reached 24,940.66 billion [1][7] - In the industry sector, banking, coal, and electric equipment led the gains, while social services, retail, and computing sectors faced declines [1][7] - The Hong Kong market also saw declines, with the Hang Seng Index down by 0.7% and the Hang Seng Tech Index down by 1.45% [1][7] - Internationally, all three major U.S. indices fell, with the Dow Jones down by 0.19%, S&P 500 down by 0.55%, and Nasdaq down by 0.95% [1][7] Industry News - A new growth stabilization plan for the steel industry has been released by five government departments, emphasizing precise control of production capacity and promoting the elimination of outdated equipment [2][8] - The plan mandates that by the end of 2025, over 80% of steel production capacity must complete ultra-low emission transformations [2][8] Financial Sector Developments - The "14th Five-Year Plan" for China's financial industry has achieved significant milestones, including reforms in financial systems and enhanced support for the real economy [9][10] - During this period, the banking and insurance sectors provided an additional 170 trillion yuan to the real economy through various financing methods [11] - The balance of inclusive loans for small and micro enterprises reached 36 trillion yuan, which is 2.3 times that of the end of the 13th Five-Year Plan, with interest rates decreasing by 2 percentage points [11] - Financial support for technology sectors has been emphasized, with annual growth rates for loans to technology SMEs, inclusive loans, and green loans exceeding 20% [11][12] - The financial risk management framework has been strengthened, with significant progress in addressing risks in key areas such as local government financing platforms and real estate [12][13]