Report Industry Investment Rating No relevant content provided. Core View of the Report This week, the overall share of bond ETFs continued to expand, driven by credit - bond and convertible - bond ETFs, and the net values of various types generally increased. Convertible - bond ETFs led the growth in terms of net value increase and capital inflow [3][24]. Summary by Directory 1.1 各类债券 ETF 份额走势 - As of August 8, 2025, the shares of treasury - bond, policy - financial - bond, local - bond, credit - bond, and convertible - bond ETFs were 517.93 million, 501.07 million, 81.38 million, 3060.38 million, and 4433.45 million respectively, with a total of 8594.20 million shares. Compared with August 1, 2025, the changes were - 9.06 million, - 3.05 million, 1.20 million, 140.96 million, and 196.70 million respectively, and the total change was 326.75 million shares. Compared with the end of last month, the total change was 387.50 million shares [3][6]. 1.2 主要债券 ETF 份额走势 - The share performance of major bond ETFs was differentiated, with urban - investment - bond and convertible - bond ETFs being the main growth drivers. As of August 8, 2025, the shares of selected leading bond ETFs changed by - 3.95 million, - 3.86 million, no change, 105.00 million, and 127.50 million respectively compared with last week [3][7]. - The shares of credit - bond ETFs slightly increased. As of August 8, 2025, the shares of 8 existing credit - bond ETFs changed to varying degrees compared with August 1, 2025 [3][11]. - The shares of science - innovation - bond ETFs generally increased. As of August 8, 2025, the shares of 10 existing science - innovation - bond ETFs changed to varying degrees compared with last week [3][14]. 1.3 主要债券 ETF 净值走势 - This week, the net values of major bond ETFs maintained an upward trend, with convertible - bond ETFs ending their decline and leading the increase. As of August 8, 2025, the net values of selected leading bond ETFs changed by 0.11%, 0.01%, 0.03%, 0.09%, and 2.28% respectively compared with last week [3][16]. - The net values of credit - bond ETFs all increased. As of August 8, 2025, the net values of 8 credit - bond ETFs changed by 0.09%, 0.09%, 0.09%, 0.09%, 0.06%, 0.08%, 0.09%, and 0.09% respectively compared with last week [3][18]. - The net values of science - innovation - bond ETFs showed a steady upward trend. As of August 8, 2025, the net values of 10 science - innovation - bond ETFs changed by 0.11%, 0.12%, 0.09%, 0.09%, 0.12%, 0.12%, 0.11%, 0.10%, 0.10%, and 0.09% respectively compared with August 1, 2025 [3][22]. 1.4 部分债券 ETF 净流入情况 - Convertible - bond ETFs had the highest cumulative net inflow this week and this month. In the weekly view, the top three bond ETFs with cumulative net inflows were convertible - bond ETF, urban - investment - bond ETF, and Shanghai - Stock - Exchange convertible - bond ETF, with net inflow amounts of 166.30 million yuan, 150.61 million yuan, and 84.95 million yuan respectively. In the monthly view, the top three were the same, with net inflow amounts of 240.12 million yuan, 161.80 million yuan, and 78.81 million yuan respectively. In terms of cumulative trading - day inflows, convertible - bond ETFs also ranked first in the past 10 and 20 trading days [3][24].

Inflation Data Summary - In July 2025, the CPI year-on-year changed from a 0.1% increase to flat, outperforming the Wind consensus expectation of -0.12%[2] - The food price index saw a year-on-year decline of 1.6%, while non-food prices increased by 0.3%[2] - Month-on-month, the CPI rose by 0.4%, slightly above the ten-year average increase of 0.34%[2] Food Price Dynamics - The year-on-year decline in fresh vegetable prices expanded to 7.6%, significantly impacting the CPI[2] - Pork prices saw a year-on-year decline of 9.5%, while beef prices increased by 3.6%[2] - The average wholesale price of 28 monitored vegetables continued to decline year-on-year in early August 2025[2] Non-Food Price Trends - Non-food prices increased by 0.3% year-on-year, with durable goods prices rising due to the end of promotional activities[3] - Transportation fuel prices decreased by 9% year-on-year, influenced by international oil price fluctuations[3] - Service prices rose by 0.5% year-on-year, remaining stable compared to the previous month[3] PPI Insights - The PPI year-on-year decline remained at -3.6%, with production materials down 4.3% and living materials down 1.6%[4] - The PPI month-on-month decreased by 0.2%, with production materials showing a smaller decline than living materials[4] - The price of oil and gas extraction increased by 3.0%, while electronic equipment manufacturing prices fell by 0.4%[4] Future Outlook - CPI is expected to remain stable in August 2025, with food CPI likely to continue its downward trend due to high base effects from the previous year[5] - PPI may show a narrowing year-on-year decline in August, driven by improved supply-demand dynamics in certain industries[5] - Risks include potential delays in policy implementation and unexpected fluctuations in international commodity prices[5]

Core Insights - Future consumer spending in China is expected to shift towards self-indulgent and service-oriented consumption, mirroring trends seen in Japan as its labor population peaked and consumption growth slowed [3][21][23] - The domestic tourism market is projected to maintain high growth rates, with Q1 2025 showing a 26.4% increase in travel volume and an 18.6% increase in tourism revenue year-on-year [3][28][34] - The human resources sector is supported by national policies and AI advancements, indicating a long-term investment opportunity as the flexible employment market is still in its early stages [3][41][53] - The sports industry is expected to accelerate in growth, with a target of reaching a market size of 5 trillion yuan by 2025, driven by clear policy direction [3][60][62] Consumer Market - The shift towards self-indulgent consumption is evident, with service consumption expected to rise significantly, reaching approximately 46% of total consumption by 2024 [21][23][25] - The characteristics of Japan's "third consumption society" are becoming apparent in China, as consumer behavior increasingly reflects personal preferences and emotional satisfaction [21][23][24] Tourism Industry - The tourism sector is showing resilience, with strong consumer willingness to travel, ranking first in spending intentions among residents [3][28][35] - Despite the growth, the tourism industry is still recovering from the pandemic, with domestic tourism revenue as a percentage of GDP expected to reach only 4.3% in 2024, compared to 5.7% in 2019 [31][33] Human Resources Service Industry - The human resources sector is experiencing a structural shift, with the proportion of labor in the tertiary sector increasing from 42.3% in 2015 to 48.8% in 2024, indicating a growing demand for HR services [3][41][40] - The flexible employment market in China is projected to grow significantly, with a compound annual growth rate (CAGR) of 28.4% expected from 2018 to 2024 [53][51] Sports Industry - The sports industry is on track to reach a market size of 5 trillion yuan by 2025, with the current market size at 3.7 trillion yuan, indicating substantial growth potential [3][60][62] - The government's "National Fitness Plan" aims to enhance outdoor sports participation and infrastructure, further driving industry growth [60][62] Investment Recommendations - The report suggests focusing on companies like Huangshan Tourism (600054.SH) and Lisheng Sports (002858.SZ) due to their strong market positions and growth potential in the current economic climate [3][67][70]

Core Views - The construction materials industry is expected to stabilize and recover due to loose macroeconomic policies, with significant attention on the supply side's proactive changes [4] - The cement industry is implementing self-discipline and peak production measures, accelerating supply reduction amid production restrictions and tightening carbon emission targets [4] - The glass fiber industry is experiencing sustained demand growth, with price increases of 10%-15% for thermoplastic/wind power glass fiber products and 15%-20% for other products, leading to improved performance [4] Cement Industry - Demand is expected to stabilize as housing market confidence strengthens, with signs of recovery in transaction prices and a narrowing decline in transaction volumes [4][19] - The cement and concrete sectors are supported by ongoing infrastructure demand and urban renewal, with industry profitability remaining robust [4][31] - The average coal price, which constitutes the largest portion of cement clinker costs, is predicted to remain low, further reducing costs and supporting profitability recovery in 2025 [4][35] Glass Fiber Industry - The glass fiber sector is seeing a structural improvement in demand, with applications expanding in wind energy, electronics, and thermosetting products [4][42] - The industry is characterized by a high concentration of production capacity, with the top three companies accounting for approximately 63% of domestic capacity [4][49] - Price trends are positive, with a recovery in profitability expected due to demand growth and proactive supply-side changes [4][51] Consumer Building Materials - The consumer building materials sector is benefiting from policies aimed at stabilizing the housing market, with ongoing demand for renovation and urban renewal projects [4][66] - The shift from B-end to C-end customers is creating opportunities for brands with strong channel capabilities, with companies like兔宝宝 (Rabbit Baby) and北新建材 (Beixin Building Materials) being highlighted for their competitive advantages [4][102] - The second renovation demand is anticipated to grow as the housing stock ages, with significant potential for market expansion in the coming years [4][69]

Domestic Developments - In the first half of 2025, profits of industrial enterprises above designated size in China totaled CNY 3.44 trillion, a year-on-year decrease of 1.8%, with the decline rate widening by 0.7 percentage points compared to the first five months[9] - The newly announced childcare subsidy scheme will provide CNY 3,600 per child per year for children under three years old starting January 1, 2025, aiming to alleviate childcare costs and enhance birth rates[11] - The National Development and Reform Commission emphasized the need for policy preparation focusing on employment and domestic demand, with a target of stabilizing investment and promoting consumption[15] International Developments - The U.S. Treasury Department projected a net borrowing of USD 1.007 trillion from July to September 2025, an increase of nearly 82% from earlier estimates[21] - The Bank of Japan maintained its interest rate at 0.5%, aligning with market expectations, while raising its inflation forecast for the fiscal year 2025 from 2.2% to 2.7%[23] - The U.S. Federal Reserve voted 9-2 to keep interest rates unchanged in the range of 4.25%-4.50%, with Chairman Powell indicating that it is too early to conclude on a rate cut in September[25] Market Trends - Brent crude oil prices increased by 2.73% week-on-week, while iron ore and copper prices decreased by 2.15% and 0.89%, respectively[27] - Real estate sales in 30 major cities rose by 34.72% week-on-week, with first-tier cities seeing a 64.47% increase in transaction volume[42]

Core Insights - The report highlights the emergence of a commodity bull market driven by anti-involution policies and increased infrastructure investment, which are expected to positively impact upstream supply chains and commodity prices [5][15][61] - The transportation sector has shown mixed performance, with the public transport sub-sector leading with an 11.1% increase, while the aviation sub-sector lagged with a -6.7% decline [5][13] - The report emphasizes the growing concentration in the bulk supply chain market, with the CR4 market share rising from 1.21% in 2016 to 4.18% in 2022, indicating a trend towards larger, more stable companies benefiting from the anti-involution policies [5][33] Market Overview - As of July 28, 2025, the Shanghai Composite Index closed at 4135.82, up 5.1% year-to-date, while the CITIC Transportation Index underperformed at 2061.14, up only 1.1% [7][9] - The report notes that the overall market for bulk supply chain services in China was approximately 55 trillion yuan in 2022, with a significant increase in market concentration observed [5][25][33] Investment Recommendations - The report suggests focusing on midstream logistics and warehousing companies like Wuchan Zhongda (600704.SH) to capitalize on the anticipated recovery in commodity prices and demand [5][61] - It also recommends monitoring leading dry bulk shipping companies such as China Merchants Energy Shipping (601872.SH) and Haitong Development (603162.SH) as shipping demand is expected to rebound [5][61] Commodity Price Trends - Since July 1, 2025, major commodity prices have rebounded significantly, with DCE coking coal prices rising by 54.6%, iron ore by 13.3%, and soda ash by 23.6% [22][23] - The report indicates that the anti-involution policies are likely to stabilize commodity prices and improve profitability for leading supply chain companies [22][38] Supply Chain Dynamics - The report highlights the increasing importance of long-distance transportation for iron ore imports, particularly from Brazil and Guinea, which is expected to drive up shipping demand due to longer transport distances [44][52] - The growth trend in aluminum ore imports is also noted, with a significant increase in dependency on foreign sources, particularly from Guinea [56][59] Company Performance and Projections - Wuchan Zhongda is projected to achieve a revenue of approximately 620.4 billion yuan in 2025, with a net profit of around 3.67 billion yuan, reflecting a strong growth trajectory [66][68] - China Merchants Energy Shipping is expected to benefit from a recovering market, with projected net profits of 5.9 billion yuan in 2025, indicating a robust operational capacity [70][72] - Haitong Development is anticipated to see a rebound in profits as market conditions improve, with projections of 263.66 million yuan in net profit for 2025 [73][76]

Quantitative Factors and Construction Factor Name: GAN_GRU Factor - **Construction Idea**: The GAN_GRU factor is derived by processing volume-price time-series features using a Generative Adversarial Network (GAN) model, followed by encoding these time-series features with a Gated Recurrent Unit (GRU) model to generate a stock selection factor [4][13][41] - **Construction Process**: 1. **Input Features**: 18 volume-price features such as closing price, opening price, turnover, and turnover rate are used as input data. These features are sampled every 5 trading days over the past 400 days, resulting in a feature matrix of shape (40,18) [14][17][18] 2. **Data Preprocessing**: - Outlier removal and standardization are applied to each feature over the 40-day time series - Cross-sectional standardization is performed at the stock level [18] 3. **GAN Model**: - **Generator**: An LSTM-based generator is used to preserve the sequential nature of the input features. The generator takes random noise (e.g., Gaussian distribution) as input and generates data that mimics the real data distribution [23][33][37] - **Discriminator**: A CNN-based discriminator is employed to classify real and generated data. The discriminator uses convolutional layers to extract features from the 2D volume-price time-series "images" [33][35] - **Loss Functions**: - Generator Loss: $$ L_{G} = -\mathbb{E}_{z\sim P_{z}(z)}[\log(D(G(z)))] $$ where \( z \) represents random noise, \( G(z) \) is the generated data, and \( D(G(z)) \) is the discriminator's output probability for the generated data being real [24] - Discriminator Loss: $$ L_{D} = -\mathbb{E}_{x\sim P_{data}(x)}[\log D(x)] - \mathbb{E}_{z\sim P_{z}(z)}[\log(1-D(G(z)))] $$ where \( x \) is real data, \( D(x) \) is the discriminator's output probability for real data, and \( D(G(z)) \) is the discriminator's output probability for generated data [27] 4. **GRU Model**: - Two GRU layers (GRU(128,128)) are used to encode the time-series features, followed by an MLP (256,64,64) to predict future returns [22] 5. **Factor Output**: The predicted returns (\( pRet \)) from the GRU+MLP model are used as the stock selection factor. The factor is neutralized for industry and market capitalization effects and standardized [22] Factor Evaluation - The GAN_GRU factor effectively captures the sequential and cross-sectional characteristics of volume-price data, leveraging the strengths of GANs for feature generation and GRUs for time-series encoding [4][13][41] --- Factor Backtesting Results GAN_GRU Factor Performance Metrics - **IC Mean**: 11.43% (2019-2025), 10.97% (last year), 9.27% (latest month) [41][42] - **ICIR**: 0.89 [42] - **Turnover Rate**: 0.82 [42] - **Annualized Return**: 38.52% [42] - **Annualized Volatility**: 23.82% [42] - **IR**: 1.62 [42] - **Maximum Drawdown**: 27.29% [42] - **Annualized Excess Return**: 24.86% [41][42] GAN_GRU Factor Industry Performance - **Top 5 Industries by IC (Latest Month)**: - Home Appliances: 27.00% - Non-Bank Financials: 23.08% - Retail: 20.01% - Steel: 14.83% - Textiles & Apparel: 13.64% [41][42] - **Top 5 Industries by IC (Last Year)**: - Utilities: 14.43% - Retail: 13.33% - Non-Bank Financials: 13.28% - Steel: 13.23% - Telecommunications: 12.36% [41][42] GAN_GRU Factor Long Portfolio Performance - **Top 5 Industries by Excess Return (Latest Month)**: - Textiles & Apparel: 5.19% - Utilities: 3.62% - Automobiles: 3.29% - Non-Bank Financials: 2.56% - Pharmaceuticals: 1.47% [2][43] - **Top 5 Industries by Average Monthly Excess Return (Last Year)**: - Home Appliances: 5.44% - Building Materials: 4.70% - Textiles & Apparel: 4.19% - Agriculture: 4.09% - Utilities: 3.92% [2][43]

1. Report Industry Investment Rating - Not provided in the given content 2. Report's Core View - In 2025Q2, the proportion of pharmaceutical stocks held by public - offering funds increased, while the proportion of foreign - owned shares remained basically flat. Different pharmaceutical sub - industries showed varying trends in the proportion of heavy - position market value held by funds [2][8] 3. Summary by Relevant Catalogs 3.1 Pharmaceutical Industry Public - Offering Fund Holdings and Foreign - Owned Share Proportions - **Public - Offering Fund Holdings**: In 2025Q2, the proportion of all A - share public - offering funds in the pharmaceutical industry was 10.05%, a quarter - on - quarter increase of 0.82pp; after excluding active pharmaceutical funds, the proportion was 7.25%, a quarter - on - quarter increase of 0.90pp; after further excluding index funds, the proportion of pharmaceutical holdings was 7.38%, a quarter - on - quarter increase of 1.95pp. The proportion of the total market value of Shenwan pharmaceutical stocks was 6.32%, a quarter - on - quarter increase of 0.06pp [2][11] - **Foreign - Owned Shares**: In 2025Q2, the total market value of the pharmaceutical and biological sector held by Shanghai - Hong Kong and Shenzhen - Hong Kong Stock Connect accounted for 2.3%, a quarter - on - quarter decrease of 0.14pp, and the total market value of shares held was 149.11 billion yuan, a decrease of 0.3 billion yuan from the beginning of the period [8][12] 3.2 Pharmaceutical Sub - Industry Public - Offering Fund Holdings 3.2.1 Pharmaceutical Funds - **Top Three in Quarter - on - Quarter Increase**: Chemical preparations accounted for 42.3%, with the largest quarter - on - quarter increase of 17.5pp; other biological products accounted for 16.99%, a quarter - on - quarter increase of 9.9pp; medical R & D outsourcing accounted for 16.5%, a quarter - on - quarter increase of 5.5pp [5][18] - **Bottom Three in Quarter - on - Quarter Change**: Medical consumables accounted for 2.34%, a quarter - on - quarter change of - 0.36pp; offline pharmacies accounted for 0.4%, a quarter - on - quarter decrease of 0.11pp; pharmaceutical circulation accounted for 0.2%, a quarter - on - quarter increase of 0.02pp [5][18] 3.2.2 Non - Pharmaceutical Funds - **Top Three in Quarter - on - Quarter Increase**: Other biological products accounted for 0.54%, with the largest quarter - on - quarter increase of 0.23pp; chemical preparations accounted for 0.74%, a quarter - on - quarter increase of 0.11pp; traditional Chinese medicine accounted for 0.17%, a quarter - on - quarter increase of 0.02pp [6][24] - **Bottom Three in Quarter - on - Quarter Decrease**: Medical equipment accounted for 0.54%, a quarter - on - quarter decrease of 0.04pp; medical R & D outsourcing accounted for 0.23%, a quarter - on - quarter decrease of 0.04pp; medical consumables accounted for 0.15%, a quarter - on - quarter decrease of 0.04pp [6][24] 3.3 Pharmaceutical Companies by Public - Offering Fund Holdings 3.3.1 By Number of Holding Funds - **Top Five in Number of Holding Funds**: Hengrui Medicine (552 funds), WuXi AppTec (403 funds), Innovent Biologics (298 funds), Mindray Medical (274 funds), and 3SBio (208 funds) [4] - **Top Five in Increase of Number of Holding Funds in 2025Q2**: Yifang Biotech - U (increase of 84), Xintiandi (increase of 41), Baili Tianheng (increase of 36), Tigermed (increase of 32), and Rejing Bio (increase of 28) [33] - **Top Five in Decrease of Number of Holding Funds in 2025Q2**: Dong'e E - Jiao (decrease of 77), Aier Eye Hospital (decrease of 51), Aibo Medical (decrease of 43), Kanglong化成 (decrease of 33), and Changchun High - tech (decrease of 24) [35] 3.3.2 By Total Market Value of Holdings - **Top Five in Total Market Value of Holdings**: Hengrui Medicine (29.5 billion yuan), WuXi AppTec (27.7 billion yuan), Innovent Biologics (22.7 billion yuan), Mindray Medical (15.5 billion yuan), and Baili Tianheng (11.9 billion yuan) [4] - **Top Five in Increase of Total Market Value of Holdings in 2025Q2**: Huatai Medical (+9.78 billion yuan), Renfu Medicine (+9.38 billion yuan), Yunnan Baiyao (+6.7 billion yuan), New Industry (+5.08 billion yuan), and Fosun Pharma (+4.24 billion yuan) [4] - **Top Five in Decrease of Total Market Value of Holdings in 2025Q2**: Kanghong Pharmaceutical (-2.36 billion yuan), Alis ( - 2.03 billion yuan), BGI Genomics (-1.61 billion yuan), Xingqi Eye Drops (-1.45 billion yuan), and Aotai Biotech (-1.38 billion yuan) [41] 3.3.3 By Proportion of Circulating Shares Held - **Top Five in Proportion of Circulating Shares Held**: BeiGene - U (24.9%), Huatai Medical (22.9%), Zai Lab - U (22.6%), Haisco (22.4%), and 3SBio (21.0%) [4] - **Top Five in Increase of Proportion of Circulating Shares Held in 2025Q2**: BeiGene - U (+21.9pp), Yunnan Baiyao (+15.4pp), Zai Lab - U (+20.7pp), Haooubo (+12.3pp), and Shenzhou Cell (+12.0pp) [45] - **Top Five in Decrease of Proportion of Circulating Shares Held in 2025Q2**: Meihua Medical (-15.8pp), Kangwei Century (-14.5pp), San诺生物 (-12.1pp), Hitae Shinco (-11.7pp), and Dizal Pharma - U (-11.6pp) [47] 3.3.4 By Proportion of Total Shares Held - **Top Five in Proportion of Total Shares Held**: BeiGene - U (24.9%), Haisco (22.4%), 3SBio (17.1%), Zai Lab - U (15.7%), and United Imaging Healthcare (15.0%) [4] - **Top Five in Increase of Proportion of Total Shares Held in 2025Q2**: BeiGene - U (+21.9pp), Zai Lab - U (+15.0pp), United Imaging Healthcare (+12.0pp), Haisco (+14.3pp), and WuXi AppTec (+10.5pp) [51] - **Top Five in Decrease of Proportion of Total Shares Held in 2025Q2**: Hitae Shinco (-11.8pp), Aibo Medical (-10.5pp), Linuo Pharmaceutical Packaging (-10.3pp), San诺生物 (-9.6pp), and Huatai Medical (-9.5pp) [53]

Investment Rating - The report indicates a positive trend in the pharmaceutical sector, with public fund holdings increasing, suggesting a favorable investment outlook for the industry [3][10]. Core Insights - The pharmaceutical sector's public fund holdings reached 10.05% in Q2 2025, an increase of 0.82 percentage points (pp) from the previous quarter. Excluding active pharmaceutical funds, the holding percentage was 7.25%, up by 0.90 pp [3][10]. - The chemical preparation sub-sector saw the largest increase in public fund holdings, rising to 42.3%, an increase of 17.5 pp. Other biological products and medical research outsourcing also showed significant increases [4][19]. - The total market capitalization of the pharmaceutical sector was reported at 66,196 billion, with a market share of 6.32% in the overall A-share market [10][14]. Summary by Sections Public Fund Holdings - The total public fund holdings in the pharmaceutical sector increased to 10.05%, with a notable rise in the chemical preparation sector [3][10]. - The top five companies by public fund holdings include 恒瑞医药 (Hengrui Medicine) with 295 billion, 药明康德 (WuXi AppTec) with 277 billion, and 信达生物 (Innovent Biologics) with 227 billion [9][27]. Sub-sector Performance - The top three sub-sectors with increased market capitalization in public funds are: 1. Chemical preparations: 42.3%, +17.5 pp 2. Other biological products: 16.99%, +9.9 pp 3. Medical research outsourcing: 16.5%, +5.5 pp [4][19]. - The medical consumables sector saw a decrease to 2.34%, down by 0.36 pp, indicating a shift in investment focus [4][19]. Foreign Investment - Foreign investment in the pharmaceutical sector remained stable, with a total market value of 1491.1 billion, representing 2.3% of the sector [7][11]. Changes in Holdings - The report highlights significant changes in holdings, with 惠泰医疗 (Huitai Medical) seeing an increase of 97.8 billion in fund holdings, followed by 人福医药 (Renfu Pharmaceutical) with 93.8 billion [9][27].

Core Insights - The light industry sector has shown mixed performance in H1 2025, with traditional cyclical and manufacturing companies facing valuation pressure, while domestic personal care brands have gained market share from foreign brands due to product optimization and channel expansion [4] - The report recommends focusing on four main investment themes: 1) High-quality domestic personal care brands with upward market trends and optimized product structures; 2) Export companies with strong demand resilience and minimal tariff impact; 3) Undervalued cyclical assets in home furnishings and paper; 4) New consumption trends in AI glasses, new tobacco, pet products, and trendy toys [4] Sector Review - The light industry sector's overall revenue in Q1 2025 was 137.76 billion yuan, a slight decline of 0.8% year-on-year, with net profit down 18.8% to 6.46 billion yuan [19] - The packaging and entertainment sectors performed well, with respective revenue growth rates of 9.4% and 2.4%, while the paper sector faced significant challenges with a revenue decline of 13% [19][22] - The report highlights that the home furnishings sector is benefiting from the "old-for-new" policy, which is expected to stabilize demand [4][19] Personal Care Sector - The personal care market is projected to grow, with the oral care segment expected to reach a market size of 50.51 billion yuan in 2025, reflecting a year-on-year growth of 1.9% [40][41] - Domestic brands are rapidly gaining market share in the sanitary napkin market, which is expected to reach 107.96 billion yuan in 2025, growing at a CAGR of 3.0% from 2025 to 2029 [54][55] - The report emphasizes the importance of product safety and quality in the sanitary napkin market, especially with the implementation of stricter national standards [64] Export Sector - The report notes that the export sector is experiencing a "rush to export" phenomenon due to fluctuating tariff policies, with companies that have strong manufacturing capabilities and minimal tariff impacts being favored [4][82] - The export of pet food and supplies, as well as non-woven fabrics, has shown resilience despite tariff disruptions, indicating strong demand in these categories [93]