Investment Rating - The report maintains an "Outperform" rating for the computer industry [4]. Core Insights - The report emphasizes the acceleration of AI large model applications and the release of data element value as key areas of focus. It highlights Lenovo's launch of the first IT service AI for SMEs, and significant advancements in agent technology by Zhiyu [1][14]. The report also notes the importance of digital financial development and international cooperation in digital trade [1][14]. Summary by Sections 1. Core Views and Investment Recommendations - The report suggests focusing on the rapid deployment of AI large models and the value release of data elements. It highlights Lenovo's AI service for SMEs and Zhiyu's new products as significant advancements in the AI sector. The report also points to the digital financial development plan issued by the People's Bank of China and the government's push for digital trade reform as critical investment opportunities [1][14][15]. 2. Industry Dynamics - AI: IDC reported that Baidu Smart Cloud ranks first in China's large model platform. Lenovo launched an AI service for SMEs, and Zhiyu introduced new products in the agent technology field. The China Internet Network Information Center released a report on generative AI applications [2][19][20][22]. - Data Elements: The People's Bank of China and other departments issued a plan for high-quality digital financial development. The State Council released opinions on digital trade reform, and the National Data Bureau sought public input on data circulation governance [2][24][25]. 3. Weekly Market Review of the Computer Industry - The CSI 300 index rose by 1.32%, while the computer industry increased by 3.94%, outperforming the index by 2.62 percentage points, ranking 8th among 31 industries [28][29]. - The computer industry’s PE (TTM) is currently at 49.04, above the historical average of 47.78 since 2016 [34]. - The trading volume for the computer industry reached 9255.55 billion, with an average daily trading volume of 1851.11 billion, down 10.47% from the previous week [35][36]. - Over half of the stocks in the computer sector rose, with 282 out of 355 stocks increasing in value, representing 79.44% [39].

Investment Rating - The industry is rated as "stronger than the market" with an expectation of a relative increase of over 10% in the industry index compared to the broader market within the next six months [68]. Core Insights - The report suggests focusing on investment opportunities in the satellite internet industry, 5G construction and applications, and the development of green intelligent computing centers. The overall operation of the telecommunications industry remains stable, with a reported revenue of CNY 14,535 billion, reflecting a year-on-year growth of 2.6% [22][29]. - The Ministry of Industry and Information Technology (MIIT) and twelve other departments have jointly issued the "5G Scale Application 'Sailing' Action Upgrade Plan," aiming to enhance the large-scale application of 5G technology [22][30]. - The successful dual "first launch" at China's first commercial space launch site demonstrates a complete industrial chain for commercial aerospace, providing strong support for space infrastructure construction [22][34]. Summary by Sections 1. Core Insights and Investment Recommendations - The report emphasizes the importance of the satellite internet industry, 5G construction, and green intelligent computing centers as key investment areas. The telecommunications industry is reported to be operating smoothly, with a stable growth trajectory [22][23]. - The report also highlights the potential of AI computing power, digital applications, and the development of 6G technology as long-term investment opportunities [24]. 2. Industry Dynamics - The MIIT released the economic operation report for the telecommunications industry for the first ten months of 2024, indicating steady growth in telecom business revenue and the expansion of new emerging businesses [29]. - The "5G Scale Application 'Sailing' Action Upgrade Plan" aims for a significant increase in 5G user penetration and application across various industries by 2027 [30]. - The low-altitude economy is expected to grow significantly, with the potential for a market size exceeding CNY 3 trillion by 2030, driven by advancements in drone technology and urban air mobility [31]. - The digital finance sector is set to benefit from new infrastructure developments, with a focus on green intelligent financial data centers [32]. - The "North Star Satellite Navigation System 2035 Development Plan" outlines a phased approach to enhance the capabilities of the Beidou system, with significant advancements expected by 2035 [34]. 3. Market Performance - The telecommunications sector's average daily trading volume decreased by 13.35% compared to the previous week, with a total trading volume of CNY 3,226.88 billion [3][50]. - The current price-to-earnings (P/E) ratio for the telecommunications sector is 19.78, significantly below the historical average of 34.01 [46]. - Over half of the stocks in the telecommunications sector experienced price increases, with 75.37% of the 134 stocks rising in value [52]. 4. Company Situations and Important Developments - The report includes details on significant block trades and the upcoming release of restricted shares within the telecommunications sector, indicating potential market movements [58][60]. - Shareholder activities, including increases and decreases in holdings, are also documented, reflecting ongoing adjustments in ownership within the sector [64].

Investment Rating - The report maintains an "Outperform" rating for the electronic industry [4]. Core Insights - The recent launch of Huawei's Mate70 series smartphones, which are competitively priced and equipped with advanced AI features, is expected to drive demand in the consumer electronics sector. The report suggests that as hardware foundations strengthen and software ecosystems improve, AI applications will accelerate the replacement cycle for devices like smartphones and PCs, boosting industry demand [1][18]. Summary by Sections 1. Core Views & Investment Recommendations - The report emphasizes the potential of AI to enhance product applications in consumer electronics, particularly in smartphones and PCs, leading to increased replacement cycles and demand across the supply chain. It recommends focusing on companies involved in AIPC and AI smartphones, as well as key suppliers in Huawei's ecosystem [1][19]. 2. Industry Dynamics - **PC Market**: The global notebook market is projected to see a modest recovery, with an estimated shipment of 174 million units in 2024, reflecting a 3.9% year-on-year increase. A further increase of 4.9% is expected in 2025, reaching 183 million units [2][21]. - **Storage**: The DRAM industry is forecasted to generate revenues of $26.02 billion in Q3 2024, marking a 13.6% quarter-on-quarter increase. The NAND Flash industry is expected to see a 4.8% revenue increase in the same quarter, driven by rising average selling prices [2][11][24]. - **Smartphones**: The Mate70 series features advanced AI capabilities, including a 2500nit peak brightness display and significant improvements in video processing through AI technologies [2][23]. - **Integrated Circuits**: From January to October 2024, China's integrated circuit production reached 353 billion units, a 24.8% year-on-year increase, with exports growing by 11.3% [2][24]. 3. Electronic Sector Weekly Review - The electronic sector outperformed the broader market, with the SW electronic index rising by 2.38% compared to a 1.32% increase in the CSI 300 index. Year-to-date, the electronic sector has increased by 17.95%, ranking fifth among 31 sectors [2][26][34]. - The sector's valuation is currently at a PE(TTM) of 69.25, above the historical average of 49.79 since 2019, indicating potential for further valuation growth driven by trends in AI and smart technologies [2][34]. 4. Stock Performance - Among 473 stocks in the SW electronic sector, 357 stocks rose, resulting in a 75.48% increase rate. The highest weekly gain was 405.92% for Shengye Electric [3][38].

Investment Rating - The industry investment rating is "Outperform the Market" [5][72]. Core Insights - The media industry (Shenwan) rose by 4.48% last week, ranking 5th in the market and outperforming the CSI 300 index by 3.16 percentage points [22][24]. - The report highlights the transformative potential of AI technology in enhancing human-machine interaction, particularly through the introduction of AI agents that can mimic human tasks [16]. - The gaming sector is expected to see significant growth with the launch of various open-world games, catering to diverse player preferences and ensuring a steady supply of new titles [16][17]. - Regulatory measures by the National Radio and Television Administration to manage "霸总" micro-dramas are anticipated to shift the industry focus from quantity to quality, promoting sustainable development [16]. Summary by Sections 1. Core Insights and Investment Recommendations - AI technology is reshaping interactions between machines and humans, with AI agents enhancing user experience across various media applications [16]. - The gaming market is recovering, with a focus on new game releases and innovative mini-games, which are expected to drive growth in the second half of 2024 [17]. - The micro-drama segment is evolving towards higher quality content due to regulatory pressures, creating new business opportunities [18]. - The generative AI sector is rapidly advancing, with applications across gaming and film production, significantly improving efficiency and reducing costs [19]. 2. Media Industry Weekly Review - The media industry saw a 4.48% increase last week, outperforming the CSI 300 index, which rose by 1.32% [22]. - Year-to-date, the media industry has underperformed the CSI 300 index, with a cumulative increase of 8.57% compared to 14.15% for the index [24]. - All sub-sectors within the media industry experienced growth last week, with the film and television sector leading with a 6.59% increase [25]. 3. Industry News and Company Announcements - The open-world game "异环" has begun its first PC test, generating significant interest [56]. - The National Radio and Television Administration has issued guidelines to regulate "霸总" micro-dramas, aiming to improve content quality [59]. - Tencent's generative AI capabilities for video production are set to launch, enhancing content creation processes [58].

Core Insights - The report indicates a rebound in the A-share market, with the Shanghai Composite Index rising by 0.93% to 3,326.46 points, and the Shenzhen Component Index increasing by 1.72% [6][7] - All 31 sectors in the Shenwan industry index experienced gains, with retail, computer, and textile sectors leading the way [6][7] - The report highlights a significant increase in trading volume, with a total turnover of 1.71 trillion yuan in the Shanghai and Shenzhen markets [6][7] Domestic Market Performance - The Shanghai Composite Index closed at 3,326.46 points, up 0.93% - The Shenzhen Component Index closed at 10,611.72 points, up 1.72% - The ChiNext Index rose by 2.50% to 2,224.00 points, while the STAR 50 Index increased by 2.41% to 1,007.39 points [2][6] Important News - The manufacturing PMI for November in China was reported at 50.3%, an increase of 0.2 percentage points from the previous month [3][6] - In November, the number of cities with declining second-hand housing prices decreased to 96, with cities like Shenzhen and Chengdu showing signs of price recovery [3][6] Policy Developments - The report discusses the issuance of the "Opinions on the Reform and Innovation Development of Digital Trade" by the Central Committee and the State Council, aiming to enhance the digital trade sector [11][14] - The "Action Plan for Promoting High-Quality Development of Digital Finance" was jointly issued by seven departments, emphasizing the importance of digital finance in supporting the digital economy [15][18] Investment Recommendations - The report suggests focusing on opportunities in small and medium-sized digital trade enterprises and digital platform companies as the digital trade sector develops [14] - It also highlights the potential for growth in digital finance, particularly in areas such as data resource development and the construction of new financial infrastructure [15][18]

Investment Rating - The industry investment rating is "Outperform the Market," indicating an expected relative increase of over 10% in the industry index compared to the broader market within the next six months [5][13]. Core Insights - The report highlights the release of a top-level design document for digital trade reform, aiming to standardize the development of digital trade in China. The goal is to increase the share of digitally deliverable service trade to over 45% of total service trade by 2029 and to 50% by 2035 [3][10]. - The document emphasizes support for various sub-sectors of digital trade, including digital product trade, digital service trade, and digital technology trade, with tailored support for each area [4][10]. - The report outlines three main areas for promoting institutional openness in digital trade and four dimensions for improving the governance system for data trade [5][10]. Summary by Sections Digital Trade Reform - The issuance of the "Opinions" document marks a significant step in the top-level design for digital trade reform in China, aiming to enhance the scale and infrastructure of digital trade [3][10]. Support for Sub-sectors - The report details specific support for sub-sectors such as digital products, services, and technologies, encouraging innovation and the growth of small and medium-sized enterprises in digital trade [4][10]. Institutional Openness and Governance - The document outlines strategies for increasing market access in the digital sector and enhancing the governance framework for data trade, focusing on international cooperation and security [5][10]. Investment Opportunities - The report suggests focusing on investment opportunities in small and medium-sized digital trade enterprises, digital industry clusters, and digital platform companies, as well as in key sectors like telecommunications and internet services [10].

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 [5][14]. Core Insights - The "Action Plan" aims to enhance financial services quality through the synergistic development of digital finance and other financial sectors, emphasizing the importance of digital finance in building a strong financial nation and expanding China's digital economy advantages [3][11]. - By the end of 2027, the goal is to establish a financial system that is highly compatible with the development of the digital economy [3]. - The plan highlights the need for financial institutions to accelerate their digital transformation and enhance the integration of digital technology in financial products and services [3][4]. Summary by Sections Digital Finance Development - The development of digital finance is driven by data elements and digital technology, which are crucial for enhancing financial services and risk management [4]. - The plan proposes to utilize big data and privacy computing to optimize financial products and risk control models [4]. Governance and Security - Emphasis is placed on improving the governance framework for digital finance, including risk prevention and regulatory measures [4]. - The plan aims to promote the safe application of digital currency in international markets while ensuring a secure payment environment [4]. Infrastructure and Data Market - The establishment of a high-quality financial data market and the regulation of cross-border financial data flow are essential for unlocking the value of data elements in the financial sector [10]. - The plan calls for the construction of advanced financial infrastructure, including green intelligent financial data centers and robust network architectures to support digital transformation [10][11]. Investment Recommendations - Focus on the development and utilization of public financial data resources and the promotion of pilot applications for data elements [11]. - Anticipate increased demand for computing power and storage driven by digital finance [11]. - Explore the application of edge computing and quantum technology to overcome existing computing limitations [11].

Core Viewpoints - The A-share market experienced fluctuations with all three major indices closing lower, specifically the Shanghai Composite Index down by 0.43%, the Shenzhen Component Index down by 1.26%, and the ChiNext Index down by 1.76% [1][6] - The total trading volume in the A-share market reached 1.49 trillion RMB, with approximately 2,400 stocks rising [1][6] - In terms of industry performance, the comprehensive and retail sectors led the gains, while the media sector saw the largest declines [1][6] - The Hong Kong market also faced declines, with the Hang Seng Index down by 1.2% and the Hang Seng Tech Index down by 1.52% [1][6] - Internationally, European indices closed higher, while the US markets were closed due to the Thanksgiving holiday [1][6] Industry News - The Central Committee of the Communist Party of China and the State Council issued opinions on the reform and innovative development of digital trade, emphasizing its importance as a component of the digital economy and a new growth point for international trade [3][6] - The main goals include increasing the proportion of digitally deliverable service trade to over 45% of total service trade by 2029, and to over 50% by 2035, alongside improving digital trade infrastructure and governance [3][6] Financial Market Overview - In October, the bond market issued a total of 52,361.7 billion RMB in various bonds, with interbank bond market transactions reaching 25.5 trillion RMB, reflecting a year-on-year increase of 17.6% [4][7] - The average daily transaction volume in the interbank bond market was 13,408.9 billion RMB, with a notable increase in bond repurchase transactions [4][7] - The weighted average interest rate for interbank lending was 1.59%, showing a decrease of 19 basis points month-on-month [4][7]

Core Viewpoints - The A-share market saw a collective rise on Wednesday, with the Shanghai Composite Index increasing by 1.53% to 3,309.78 points, the Shenzhen Component rising by 2.25%, and the ChiNext Index up by 2.73% [2][8] - The total trading volume in the A-share market reached 1.46 trillion RMB, with over 4,100 stocks rising [2][8] - All sectors in the Shenwan industry index experienced gains, with media and defense industries leading the way [2][8] Important News - The Central Committee of the Communist Party of China and the State Council issued the "Action Plan for Effectively Reducing Logistics Costs Across Society," aiming to lower the ratio of total logistics costs to GDP to around 13.5% by 2027 [2][8] - The plan includes optimizing the structure of freight transport, with targets for railway freight volume and turnover to reach 11% and 23% respectively, and maintaining rapid growth in port container transport [2][8] Industrial Insights - In the first ten months of 2024, profits of industrial enterprises above designated size in China totaled 58,680.4 billion RMB, a year-on-year decrease of 4.3% [3][9] - State-owned enterprises reported a profit of 18,530.9 billion RMB, down 8.2%, while foreign and Hong Kong, Macao, and Taiwan-invested enterprises saw a slight increase of 0.9% to 14,559.0 billion RMB [3][9] - The overall revenue for these enterprises was 110.96 trillion RMB, reflecting a year-on-year growth of 1.9% [3][9] Robotics Industry - In October 2024, the production of industrial robots in China increased by 33.4% year-on-year, reaching 50,900 units, while the cumulative production for the first ten months was 465,700 units, up 13.3% [10][12] - The production of service robots, however, saw a decline of 12.8% year-on-year in October, totaling 870,900 units for the first ten months, which is an 18% increase but indicates a slowdown [12] - The report suggests that the robotics industry is poised for growth, driven by domestic and international demand recovery, continuous policy support, and technological advancements [12] Automotive Industry Developments - Xiaopeng Motors launched a new AI humanoid robot named Iron, while Changan Automobile announced its entry into the humanoid robot sector, indicating a trend of automotive companies diversifying into robotics [13][14] - The humanoid robot market is expected to grow significantly, with automotive companies leveraging their existing supply chains and production capabilities to reduce costs and accelerate commercialization [14][17] - Changan plans to invest over 50 billion RMB in new technologies over the next five years, including humanoid robots, highlighting the industry's commitment to innovation and development [17]

Investment Rating - The investment rating for Postal Savings Bank is maintained at "Add" [3][8]. Core Viewpoints - The report emphasizes the bank's strong deposit advantages and the positive impact of the adjustment in savings agency fees on net profit, projecting contributions of approximately 70 billion yuan in 2024 and 140 billion yuan in 2025 [2][30]. - The bank's asset quality remains robust, with non-performing loan rates lower than the average of state-owned banks, and a focus on retail loans which may experience short-term pressure [2][68]. - Continued investment in technology is highlighted as a key driver for business, management, and risk control improvements [2][78]. - The long-term outlook suggests significant potential for retail business growth and efficiency improvements through financial technology [2][87]. Summary by Sections Savings Agency Fee Adjustment - The bank's savings agency fee rate has been adjusted, resulting in a reduction of approximately 16 basis points, saving 15.06 billion yuan in fees [2][30]. - The adjustment will take effect from July 1, 2024, and is expected to positively impact net profits in the following years [2][30]. Deposit Advantages - As of June 2024, the bank's deposits reached 14.87 trillion yuan, with a year-on-year growth of 11.8%, and personal deposits accounting for 88.9% of total deposits [2][36]. - The bank's deposit cost is relatively low at 1.48%, which is advantageous compared to peers [2][38]. Asset Quality - The bank's non-performing loan rate stands at 0.84%, with a focus on maintaining a high proportion of secured loans [2][68]. - The bank's asset quality indicators are favorable compared to state-owned banks, with a low non-performing loan generation rate [2][68]. Technology Investment - In 2023, the bank invested 11.278 billion yuan in technology, representing a 5.88% increase year-on-year [2][78]. - The bank is enhancing its technology workforce, with over 7,000 IT personnel across the organization [2][78]. Profit Forecast and Investment Recommendations - The bank's revenue growth is projected at 0.04% for 2024, 4.74% for 2025, and 6.32% for 2026, with net profit growth of -2.23%, 6.43%, and 8.78% respectively [2][88]. - The report maintains a positive outlook on the bank's long-term growth potential, particularly in retail banking and technology-driven efficiency improvements [2][87].