Core Conclusions - The commercial rocket capacity breakthrough is a key variable for the turning point of China's commercial aerospace industry and the formation of capital market trends, with a high certainty of significant improvement in aerospace capacity next year [1][4]. Industry Dynamics - The satellite internet and commercial aerospace industries in China are expected to reach a fundamental turning point next year, supported by recent policies, commercial rocket launch schedules, and changes in core industry orders [3]. - The national "14th Five-Year Plan" emphasizes the construction of a modern industrial system, with commercial aerospace being a key focus area, as highlighted by the establishment of a Commercial Aerospace Office by the National Space Administration [3]. - The satellite internet industry is projected to maintain a compound annual growth rate (CAGR) of over 100% during the "14th Five-Year Plan" period, with a total of 100 satellite constellations registered, including 88 commercial projects and 12 national strategic projects [3]. - The construction of low-orbit constellations is expected to generate a market of 101.1 billion yuan for rocket capacity and 207.4 billion yuan for satellite manufacturing over the next five years, with respective CAGRs of 82% and 95% [3]. Key Variables - The upcoming launches of mainstream commercial rockets such as Zhuque-3, Tianlong-3, and Long March 12A are anticipated to significantly enhance China's commercial rocket capacity, marking a critical turning point for the industry [4]. Satellite Internet Sub-sectors and Key Companies - Key companies in the satellite internet sub-sector include: - Satellite Payloads: Zhenlei Technology, Xinke Mobile, Chengchang Technology, Shaanxi Huada, Shanghai Hantong, Chuangyi Information, Jiayuan Technology [5]. - Rocket Components: Chaojie Co., Sry New Materials, Gaohua Technology [5]. - Satellite Platform Components: Tianyin Electromechanical, China Satellite, Aerospace Huanyu, Qianzhao Optoelectronics, Shanghai Port, Fudan Microelectronics, Shanghai Huguang, Aerospace Electronics [5]. - Inspection and Testing: Sikrui, Xice Testing, Holiwo, Kunheng Shunwei [5]. - Ground Stations and Terminals: Zhenyou Technology, Tongyu Communications, Guobo Electronics, Sanwei Communications, Nanjing Panda, Mengsheng Electronics, Huali Chuantong, Changjiang Communications [5]. - Space Computing: Putian Technology, Zhongke Xingtou, Zhongke Shuguang, Xingtou Measurement and Control, Shengbang Security [5].

Group 1: Fixed Income Market Outlook - The macroeconomic policy for 2026 emphasizes high-quality development, with a focus on structural adjustments rather than solely relying on total stimulus [6][10] - The central bank is expected to lower interest rates by 10-20 basis points and may implement one reserve requirement ratio cut, maintaining a cautious approach [6][9] - Investment and consumption are projected to recover moderately, with inflation being a significant uncertainty for the bond market; PPI is expected to decline at a slower rate, while CPI may rise by approximately 0.4% [6][10] Group 2: Mergers and Acquisitions in the Securities Industry - The securities industry has experienced several waves of mergers and acquisitions, with the current wave driven by regulatory policies and market dynamics [16][17] - The concentration of the securities industry is increasing, with major firms enhancing their market competitiveness through strategic acquisitions [17][18] - Despite a slowdown in new mergers since 2025, the trend of supply-side reform in the industry is expected to continue, with potential for further restructuring [18] Group 3: Real Estate Industry Investment Strategy - The real estate market is undergoing a rebalancing phase, with a focus on high-quality development and structural opportunities [19][21] - Sales volume and price dynamics are expected to diverge, with new housing prices increasing while second-hand housing prices may decline [20][21] - Investment recommendations include focusing on quality developers and sectors such as commercial real estate, with specific companies highlighted for their potential [19][21] Group 4: Semiconductor Industry - Chip Design Services - The company Chip Origin (688521.SH) is positioned as a leader in semiconductor IP, with projected revenues of 32.67 billion, 46.61 billion, and 58.71 billion for 2025, 2026, and 2027 respectively [24][25] - The acquisition of Chip Intelligence is expected to enhance the company's capabilities in CPU IP, supporting growth in both IP licensing and custom chip design [24][25] - The demand for AI-related chips is anticipated to drive significant growth, with the company securing new orders worth 15.93 billion in Q3 2025, reflecting a year-on-year increase of 145.80% [26]

1. Report Industry Investment Rating No information about the report industry investment rating is provided in the given content. 2. Core Viewpoints of the Report - In 2026, the economic main - line adheres to high - quality development, emphasizing new - quality productivity and modern industrial layout, and focusing on expanding domestic demand. The policy framework aims at structural adjustment, with coordinated fiscal and monetary policies. An active fiscal policy will continue, with the central bank expected to cut interest rates by 10 - 20BP and reduce the reserve requirement ratio once. Investment and consumption are expected to recover moderately, and inflation recovery is the biggest uncertainty in the bond market. The after - tax interest rate of 10 - year treasury bonds will fluctuate between 1.7% - 1.9%, with a mid - bond valuation of 1.75 - 1.95%, and the rhythm may be lower in the first half and higher in the second half [7]. 3. Summary According to the Table of Contents 3.1 "Fifteenth Five - Year Plan" Adheres to High - Quality Development, Balancing Development and Security - **External Environment and Goal Orientation**: The "Fifteenth Five - Year Plan" period faces a more uncertain external environment, with strategic opportunities coexisting with risks and challenges. The goal is to achieve a moderately developed level of per capita GDP by 2035, and the GDP of the "Fifteenth Five - Year Plan" and "Sixteenth Five - Year Plan" periods needs to grow at an average annual rate of 4.17%. The development main - line is centered around economic construction, with high - quality development as the theme and reform and innovation as the driving force [8][21]. - **Supply - and - Demand - Side Joint Efforts**: The supply side focuses on new - quality productivity and modern industrial layout, while the demand side aims to boost consumption and expand effective investment. In the short term, the economic fundamentals need to be consolidated, but the 2025 target is not difficult to achieve [23][24][27]. 3.2 Fiscal Policy Boosts Domestic Demand, and Monetary Policy Continues the New Model - **Macro Policy Framework**: China has formed a complete macro - policy framework aiming at structural transformation, coordinating multiple policies to promote sustainable economic growth and adjust the economic structure [32]. - **Fiscal Policy**: The active fiscal policy will continue, with a focus on boosting consumption and expanding effective investment. The estimated deficit rates of 4% and 4.5% may result in deficit scales of 6 trillion and 6.7 trillion yuan respectively. The government will also continue to promote debt resolution [34][35][40]. - **Monetary Policy**: The central bank will use interest rate and reserve requirement ratio cuts cautiously, with an expected interest rate cut of 10 - 20BP and a single reserve requirement ratio cut in 2026. It will adopt a new model of combining cautious use of rate cuts and reserve requirement ratio cuts with active use of structural tools to maintain liquidity and support the real economy [43][46]. 3.3 Investment Focuses More on Efficiency, and Inflation May Continuously Improve - **Investment**: In 2026, investment will increase, with a focus on efficiency and concentration in key projects, regions, and industries. Real estate is expected to remain at a low level, infrastructure investment will be targeted, and manufacturing investment will focus on new - quality productivity [54][57][63]. - **Consumption**: Consumption is expected to continue to improve, with consumer confidence rising and the special treasury bond expenditure for trade - in programs likely to be no less than 300 billion yuan in 2026 [66]. - **Inflation**: The decline in PPI is expected to continue to narrow, and CPI may turn positive, growing by about 0.4% in 2026 [71]. 3.4 Liquidity and Interest Rate Outlook - **Funding**: The central bank will maintain stable and low - volatility funding prices, and the 10 - year treasury bond after - tax interest rate will fluctuate between 1.7% - 1.9%, with a mid - bond valuation of 1.75 - 1.95%, and the rhythm may be lower in the first half and higher in the second half [11][75][103]. - **External Factors**: The Fed's entry into the interest rate cut cycle may lead to an increase in corporate foreign exchange settlement willingness, which may affect liquidity. Deposit transfer may continue, increasing the bank's liability pressure [81][87]. - **Bond Market Outlook**: In 2026, the 10 - year treasury bond will fluctuate around the policy rate, and the long - term interest rate is expected to remain volatile at a low level. The bond market will have low volatility, and the interest rate will maintain a low - level oscillation [97][103].

Core Conclusions - The financial industry experienced a weekly increase of +0.68% in the non-bank financial index, underperforming the CSI 300 index by 0.96 percentage points [1] - The banking sector saw a decline of -0.59%, lagging behind the CSI 300 index by 2.23 percentage points, with state-owned banks, joint-stock banks, city commercial banks, and rural commercial banks showing varied performance [1][9] Insurance Sector Insights - The insurance sector's index rose by +0.20%, underperforming the CSI 300 index by 1.44 percentage points, driven by strong demand for dividend insurance products that align with residents' needs for stable returns and value appreciation [2][12] - Major insurance companies are focusing on dividend insurance as a strategic core, with product offerings expanding significantly ahead of the 2026 "opening red" period [2][12] - The growth of new single premiums is expected to be strong in 2026, supported by improved net present value margins (NBVM) and a favorable regulatory environment for dividend insurance [2][17] Brokerage Sector Insights - The brokerage sector index increased by +0.74%, underperforming the CSI 300 index by 0.90 percentage points, with recent developments in refinancing for two brokerages indicating a cautious approach to capital raising [2][18] - The current environment presents a mismatch between profitability and valuation in the brokerage sector, suggesting potential for valuation recovery [2][19] - Recommendations include strong mid-to-large brokerages with low valuations and those involved in mergers or restructuring [2][19] Banking Sector Insights - The banking sector's index decreased by -0.59%, underperforming the CSI 300 index by 2.23 percentage points, with a focus on high dividend strategies remaining viable [3][20] - The average dividend yield for banks is approximately 4.1%, which is attractive compared to other sectors, particularly in the context of a stable earnings outlook [3][21] - Recommendations include state-owned banks and resilient city commercial banks, with specific attention to banks with strong fundamentals and low volatility [3][22]

1. Report Industry Investment Rating No relevant content found. 2. Core Viewpoints - 11 - month bond market was in a volatile pattern without strong policy and fundamental drivers, and 12 - month important meetings and key economic data will be key variables for market direction [2][9] - 12 - month stock market's impact on the bond market may weaken due to recent weak equity market performance and year - end institutional factors [2][9] - 12 - month interest rates are likely to decline, but the continuation of the calendar effect needs further information [2][10] - Market bulls still have concerns, and the year - end allocation market awaits the implementation of redemption rules [3][13] 3. Summary by Directory 12 - month Bond Market Outlook - After 10 - month trading, the year - end bond market tends to be conservative. In November, the bond market was volatile, and future direction depends on 12 - month meetings and data [9] - The impact of the stock market on the bond market in December may weaken, and interest rates are likely to fall [2][9][10] - Market participants' concerns remain, and the start of the year - end allocation market depends on redemption rules [3][13] 11 - month Bond Market Review 2.1 Bond Market Trend Review - Throughout November, the 10Y treasury bond rate had different trends each week, influenced by various factors such as policies, data, and stock market performance [24][25] 2.2 Funding Situation - The central bank net - injected 438 billion yuan. In November, the funding situation was generally balanced, with early convergence and month - end easing [26] 2.3 Secondary Market Performance - In November, bond yields fluctuated upwards. Most key - term treasury bond rates increased, and most term spreads widened [34] 2.4 Bond Market Sentiment - In November, bond fund durations slightly decreased, and the 50Y - 30Y treasury bond spread significantly widened. Bank - to - bank leverage decreased, while exchange leverage increased [42] 2.5 Bond Supply - In November, the net financing of interest - rate bonds increased, while the net repayment of inter - bank certificates of deposit rose. The issuance scale of different types of bonds had various changes [52][53][57] Economic Data - In October, the growth rate of industrial enterprise profits slowed down. Since November, real - estate transactions have been weak year - on - year, while port throughput has been strong [63] Overseas Bond Market - The Fed's "Beige Book" showed a decline in US consumer spending, and the expectation of Fed rate cuts has increased. US bonds rose, while bond markets in China, Japan, and South Korea fell [73][74] Major Asset Classes - In November, the Shanghai Gold Index strengthened, while the Shenzhen Component Index and the South China Pig Index weakened. The performance ranking of major asset classes was Shanghai Gold > Chinese - funded US dollar bonds > Shanghai Copper > US dollar > Chinese bonds > Rebar > Convertible bonds > Crude oil > CSI 1000 > CSI 300 > Pig [79] Policy Summary - Multiple policies were introduced in November, covering areas such as real - estate investment trusts, medical insurance, science - finance cooperation, consumption support, and capital market reform. Future impacts of these policies need to be monitored [82][83][84]

Group 1 - The current A-share bull market is part of a six-year global liquidity expansion driven by post-2020 monetary easing, with systemic revaluation of key assets such as gold, US tech stocks, and European/Japanese manufacturing [1][11] - The return of cross-border capital to China is expected to systematically reassess the competitive advantages of Chinese manufacturing, particularly in sectors like new energy, chemicals, and medical devices [2][12] - The A-share market is likely to experience volatility in 2026, with either a stagnation of the bull market or a "Davis Double Play" in consumer sectors, as external exports may not drive profits due to high base effects [3][13] Group 2 - The industrialization maturity phase in China has led to a bull market for core assets, driven by improved domestic consumption and the ability of manufacturing to generate national wealth through exports [4][14] - The recommendation for industry allocation focuses on a combination of "existing," "new," and "high" sectors, emphasizing non-ferrous metals, new consumption trends, and high-end manufacturing [5][14] Group 3 - The investment logic for China Hongqiao includes short-term price increases in electrolytic aluminum and long-term growth driven by integrated operations and high dividends [17][19] - For Luoyang Molybdenum, the investment rationale is based on the rising copper cycle and diversified product offerings, with a focus on sustainable growth [20][22] - Huafeng Aluminum is positioned for growth through high-end aluminum processing and international expansion, capitalizing on trends in the automotive sector [25][28] Group 4 - Nanjing Steel's strategy involves creating a fully integrated supply chain and exploring new growth points to stabilize returns on equity [29][32] - Dongfang Tower's investment logic is driven by rising prices of potassium chloride and phosphate rock, with ongoing capacity expansion [33][36] - Luxshare Precision is transitioning to an AI hardware manufacturer, benefiting from increased demand for computing power and AI models [37][40] Group 5 - Great Wall Motors is focusing on high-end SUVs and global expansion, with new model launches expected to drive sales [41][44] - Leap Motor is leveraging competitive pricing and differentiation in the domestic and overseas markets, with new models and subsidies supporting growth [45][48] - Heng Rui Pharmaceutical is advancing its clinical pipeline with over 100 innovative products, aiming for significant growth through international collaborations and new product approvals [49][51] Group 6 - Yifeng Pharmacy is expected to improve its market share through enhanced operational efficiency and strategic store adjustments [54][59] - Dongfang Electric is positioned to benefit from rising global demand for gas turbines, driven by AI-related power needs [60][63]

Investment Rating - The report recommends investment in the electric power equipment sector, highlighting specific companies for potential investment opportunities [1][2][3]. Core Insights - The Ministry of Industry and Information Technology (MIIT) emphasizes orderly competition in the lithium battery industry, aiming to curb "involution" competition [1][2]. - The report identifies key companies in various segments, including electric vehicles, PCB, solid-state batteries, and energy storage, suggesting specific stocks for investment [1][2][3]. - The report notes significant growth in the wind power sector, with a total installed capacity increase of 70.01 GW from January to October 2025, reflecting a year-on-year increase of 24.21 GW [4][62]. Summary by Sections Electric Vehicle Sector - Recommended companies include Tianci Materials, Zhuhai Guanyu, Terui De, Xinwangda, and Haopeng Technology, with additional attention on Tianji Co., Duofluor, and others [1]. - The report highlights the structural transformation in the AI market, with major cloud providers becoming the preferred choice for enterprises [2]. Energy Storage Sector - The total bidding scale for energy storage in 2025 reached 95.7 GW/347.19 GWh, with winning prices ranging from 0.3261 to 3.216 CNY/Wh [3]. - Recommended companies in the energy storage sector include Sungrow Power, Yiwei Lithium Energy, and CATL, among others [3]. Wind Power Sector - The report indicates that the newly installed wind power capacity in October 2025 was 8.92 GW, showing a year-on-year increase of 33.53% [4][62]. - Recommended companies in the wind power sector include Goldwind Technology, Daikin Heavy Industries, and Zhongtian Technology [4]. Solid-State Battery Sector - The report mentions the establishment of the first large-capacity all-solid-state battery production line in China, which is expected to enhance the electric vehicle industry's capabilities [60]. - Companies like Enli Power are highlighted for their advancements in solid-state battery technology and production capacity [61]. PCB Sector - The report suggests focusing on companies like Defu Technology and Copper Crown Copper Foil within the PCB segment [1].

Group 1: Defense and Military Trade Industry - The military trade industry is experiencing rapid growth in military spending, driven by geopolitical conflicts, leading to a reshaping of global supply and demand dynamics [6][7] - The U.S. remains the largest military spender, followed by China, with significant increases in military imports from the Asia-Pacific region and Europe [6][7] - China's military trade advantages include a comprehensive product range, fewer political conditions, and flexible transaction methods, positioning it well for international market opportunities [8][9] Group 2: Automotive Industry - Leap Motor - Leap Motor's revenue for Q3 2025 reached 19.45 billion yuan, a year-on-year increase of 97.3%, with a net profit of 150 million yuan and a gross margin of 14.5%, reflecting improvements in operational efficiency [11][12] - The company is expected to achieve revenues of 64 billion, 102.4 billion, and 131.1 billion yuan from 2025 to 2027, with growth rates of 99%, 60%, and 28% respectively [13] - Leap Motor's global expansion is evident with a significant increase in overseas terminal orders, and the company has established over 700 sales and service outlets internationally [12][13] Group 3: Electric Equipment Industry - Liangxin Co. - Liangxin Co. reported a revenue of 3.507 billion yuan for the first three quarters of 2025, a year-on-year increase of 12.23%, but faced a decline in net profit due to changes in sales structure and pricing pressures [15][16] - The company is focusing on AIDC (Artificial Intelligence Data Center) and overseas markets, with expectations of net profits growing to 409 million, 526 million, and 663 million yuan from 2025 to 2027 [16][19] - Liangxin Co. is actively developing products for data centers, aiming to enhance its market presence and brand influence in this sector [16] Group 4: Electric Equipment Industry - Hongfa Co. - Hongfa Co. achieved a revenue of 12.914 billion yuan in the first three quarters of 2025, with a net profit of 1.470 billion yuan, reflecting stable performance and capacity utilization [18][19] - The company is transitioning from single components to modular solutions in the automotive sector, which is expected to enhance its market share and product value [18] - Future growth opportunities are anticipated in the AIDC sector, with a focus on high-voltage direct current relays and modular solutions for data centers [19] Group 5: Electric Equipment Industry - Trina Solar - Trina Solar reported a revenue of 49.97 billion yuan for the first three quarters of 2025, with a net loss of 4.201 billion yuan, although showing signs of improvement in its component business [21][22] - The company aims to significantly increase its storage business output, targeting 8 GWh for 2025 and doubling it in 2026, supported by strong overseas orders [22] - Trina Solar's operational scale in maintenance services is expected to contribute to stable profit growth as its installed capacity increases [22] Group 6: Automotive Industry - XPeng Motors - XPeng Motors reported a revenue of 20.38 billion yuan in Q3 2025, a year-on-year increase of 101.8%, with a gross margin of 20.1% [24][25] - The company is advancing its global strategy with local production projects in Indonesia and Austria, and has launched its second-generation VLA model for smart driving [25] - XPeng Motors forecasts Q4 2025 deliveries between 125,000 and 132,000 units, with total revenue expected to reach 21.5 to 23 billion yuan [25]

Investment Rating - The industry rating is "Overweight" and has been maintained from the previous rating [8] Core Insights - The military trade industry is experiencing rapid growth due to increasing military expenditures and evolving supply-demand dynamics driven by geopolitical conflicts [5][11] - The demand for military products is shifting, with aircraft being the primary focus, an increase in missile demand, and a promising outlook for unmanned equipment [6][11] - China is strategically expanding its military trade, focusing on systematic output and seizing overseas opportunities [6][11] Summary by Sections Military Expenditure Growth - Global military spending has increased for ten consecutive years, with a projected rise to $27,180 billion in 2024, reflecting a 9.36% increase from 2023 [20][24] - The military burden, defined as military spending as a percentage of global GDP, is expected to rise to 2.46% in 2024 [20] - The U.S. leads in military spending, projected at $997.31 billion in 2024, while China ranks second with $313.66 billion [24] Military Trade Demand - The Asia-Pacific region has the highest import volume, while Europe shows the fastest growth in military imports [25][29] - Ukraine has emerged as the largest arms importer due to the ongoing conflict, with imports increasing nearly 100-fold from 2015-2019 levels [37][41] - India remains the second-largest arms importer, although its reliance on Russian arms is decreasing [48] Military Trade Supply - The U.S. maintains a dominant position in the global arms market, with its exports accounting for 46.69% of the total military trade volume in 2024 [60] - The top five arms exporting countries from 2020-2024 are the U.S., France, Russia, China, and Germany, with the U.S. significantly increasing its market share [54][60] - Russia's arms exports have declined sharply due to geopolitical tensions and sanctions, dropping to 4.63% of global exports in 2024 [68] Key Companies in the Industry - The top 100 defense companies generated $632 billion in revenue in 2023, with U.S. firms accounting for a significant portion [72] - Lockheed Martin is highlighted as a leading defense contractor, with a projected revenue of $71.04 billion in 2024, primarily from U.S. government contracts [77][80]

Investment Rating - The report does not explicitly state an investment rating for the industry [23] Core Insights - The market is experiencing low trading volumes and weak consolidation, with a focus on fundamental and mid-to-long-term logic [1] - On November 26, the North Exchange A-share trading volume reached 14.009 billion yuan, a decrease of 0.164 billion yuan from the previous trading day, with the North Exchange 50 Index closing at 1391.00, down 0.42% [2][9] - The report highlights a significant divergence in market hotspots, with high turnover thematic stocks and specialized innovative companies showing active performance [5] Summary by Sections Market Review - On November 26, 284 companies listed on the North Exchange saw 61 rise, 5 remain flat, and 218 decline [16] - The top five gainers were Zhu Laoliu (up 13.2%), Hongxi Technology (up 10.8%), Kaide Quartz (up 5.3%), Xin Ganjiang (up 5.2%), and Dapeng Industrial (up 4.1%) [16] - The top five decliners were Deer Chemical (down 7.3%), Rongyi Precision (down 6.5%), Boxun Biology (down 6.0%), *ST Yunchuang (down 5.8%), and Luqiao Information (down 5.5%) [16] Important News - Six departments issued a significant document aimed at enhancing the adaptability of supply and demand for consumer goods, targeting the formation of three trillion-level consumption fields and ten hundred-billion-level consumption hotspots by 2027 [3] - The "Infrastructure Classification" draft for comments is expected to accelerate the integration of vehicle-road-cloud systems into the standard system [19] Key Company Announcements - Vision Intelligence reported a reduction in shareholding by major shareholders, decreasing from 56.94% to 55.93% [20] - Jianbang Technology received a patent for a vehicle wiper assembly control system [21] - Boxun Biology obtained three patents for various AI and control systems [21]