Investment Rating - The investment rating for the company is not explicitly stated in the provided documents, but the report indicates a positive outlook for the company's growth and profitability in the coming years [1]. Core Viewpoints - The company has shown stable growth in its core business of electric two-wheelers, with a revenue of CNY 50.72 billion in 2024, a slight decrease of 0.2% year-on-year. The net profit attributable to the parent company was CNY 1.17 billion, down 19.8% [1][2]. - The company is expected to benefit from new policies in 2025, including new national standards and trade-in programs, which may create a favorable supply-demand dynamic [2]. - The company is focusing on expanding its product lines, including electric assist bicycles and light sports products under the LYVA brand, targeting high-income consumers [4]. - The company is also developing a new ecosystem involving battery swapping and rental services, aiming to create an integrated system for rental, exchange, and sales [4]. Financial Summary - In 2024, the company's revenue was CNY 50.72 billion, with a net profit of CNY 1.17 billion, resulting in a net profit margin of 2.3% [1][3]. - The company’s gross margin for 2024 was 13.1%, showing resilience despite a decline in overall sales and average selling prices [3]. - The company’s operating cash flow for 2024 was negative CNY 0.03 billion, with a cash and cash equivalents balance of CNY 5.55 billion at year-end [3]. - Revenue projections for 2025-2027 are CNY 65.98 billion, CNY 76.82 billion, and CNY 87.63 billion, respectively, with net profits expected to rise to CNY 1.71 billion, CNY 2.01 billion, and CNY 2.38 billion [7][9]. Growth Potential - The company plans to enhance its production capacity, with an annual capacity exceeding 5 million units by the end of 2024 and an expected increase to 2 million units by 2026 [2]. - The company is strategically positioning itself in the high-end electric assist bicycle market, leveraging its proprietary technology and manufacturing capabilities [4]. - The company aims to transition its user operation model from a rough approach to a more refined one, supported by a nationwide smart store network [4].

Report Title - The report is titled "Redemption Style Investment Value Tracking (2025W17): The Exposure of Partial Equity Funds to the Redemption Style Declined Quarter-on-Quarter in 2025Q1, and ETF Funds Had Net Outflows for Two Consecutive Weeks" [1][3] Report Industry Investment Rating - No industry investment rating is provided in the report Core Viewpoints - Macroscopically, the 10-year US Treasury yield has fallen from its high, China's M2 year-on-year growth rate remained flat in March 2025, and the M1 - M2 spread reached a new high since September 2024. The macro model suggests that the redemption style may underperform the growth style in the future. If large - scale monetary and fiscal policies are implemented, the M2 and M1 - M2 spread are expected to improve further. In the medium term, the pro - cyclical redemption sector may regain its allocation value in terms of absolute and excess returns. In the long term, the mean reversion of the growth style is still favored as the Fed cuts interest rates and domestic liquidity gradually eases [4][47] - In terms of valuation, the absolute and relative PEs are high. The absolute trading volume congestion has rebounded recently, and the relative trading volume congestion has also rebounded after reaching a historical low. The price - volume congestion has returned to an appropriate range [4][47] - In terms of funds, the exposure of active partial equity funds to the redemption style decreased in 2025Q1 compared to 2024Q4, and the net inflow of redemption ETF funds was - 1.206 billion yuan this week [4][47] Summary by Directory 1. Macro: M1 - M2 Year - on - Year Spread Maintains an Uptrend, Indicating Improved Economic Expectations - Market performance: The Wande All - A Index rose 1.15%, and the CSI Redemption Total Return Index rose 0.21%, with an excess return of - 0.94% relative to the Wande All - A Index [8] - US Treasury yield: Affected by the Fed's interest - rate cut expectations, the probability of an interest - rate cut in June 2025 is 61.5%, and the probability of another cut in July is 77.9%. The 60 - day moving average of the US Treasury yield crossed above the 250 - day moving average, giving a bullish signal for redemptions in the US Treasury model [8] - Domestic economic data: In March 2025, China's M2 year - on - year growth was 7.0% (unchanged from the previous value), and the M1 - M2 year - on - year spread was - 5.4% (compared to - 6.9% previously). Since August 2024, M2 year - on - year growth has been rising, and since September 2024, the M1 - M2 spread has been rising. Currently, the 3 - month moving averages of both have crossed above the 12 - month moving averages, and the long - term upward trend may be initially confirmed. Both the M2 year - on - year and M1 - M2 spread dimensions are bearish on redemption excess returns [4][12] 2. Valuation: Absolute PE at 97.46% in the Past Three Years, Relative PE at 81.31% - Absolute PETTM: As of April 25, 2025, the current absolute PETTM of the CSI Redemption is 9.03 times, and the previous month's was 8.99 times. The absolute PETTM in the past three years is at the 97.46% percentile (97.60% a month ago), and at the 79.66% percentile in the past five years (78.78% a month ago). The regression model estimates the absolute return for the next year to be - 0.88% [18] - Relative PETTM: As of April 25, 2025, the current relative PETTM of the CSI Redemption is 0.50 times, and the previous month's was 0.48 times. The relative PETTM in the past three years is at the 81.31% percentile (74.90% a month ago), and at the 85.83% percentile in the past five years (78.14% a month ago). The regression model estimates the excess return for the next year to be 0.21% [22] 3. Price - Volume: Redemption Price - Volume Congestion is in an Appropriate Range - Price dimension: As of April 25, 2025, 58.28% of the weights of CSI Redemption constituent stocks are above the half - year moving average (64.55% a month ago). The regression model estimates the absolute return for the next year to be 7.45% [24] - Trading volume congestion: The absolute trading volume of the CSI Redemption is at the 65.15% percentile in the past three years (81.31% a month ago). The regression model estimates the absolute return for the next year to be 9.37%. The relative trading volume is at the 16.15% percentile in the past three years (5.21% a month ago), and the regression model estimates the excess return for the next month to be 0.68% [30][34] 4. Funds: The Exposure of Partial Equity Public Funds to the Redemption Style Declined Quarter - on - Quarter in 2025Q1 - Public fund exposure: The exposure of partial equity public funds to the redemption style turned positive in Q2 2023, with an exposure of 0.45 in Q4 2024 and 0.37 in Q1 2025, still maintaining a positive allocation but lower than the previous quarter [39] - ETF fund flow: This week, the net inflow of domestic redemption - related ETFs was - 1.206 billion yuan, and the total net inflow in the past month was 3.073 billion yuan [40] 5. Summary: The Exposure of Partial Equity Funds to the Redemption Style Declined Quarter - on - Quarter in 2025Q1, and ETF Funds Had Net Outflows for Two Consecutive Weeks - Comprehensive view: Considering all dimensions, in the medium term, the pro - cyclical redemption sector may regain its allocation value. In the long term, the growth style's mean reversion is favored [4][47] - Redemption 50 Preferred Portfolio: The portfolio had an absolute return of 8.08% and an excess return of 4.46% in the past year, an absolute return of 1.21% and an excess return of - 0.01% in the past three months [4][49]

Investment Rating - The investment rating for the utility sector is "Positive" [2] Core Insights - The utility sector has outperformed the broader market, with a 2.4% increase as of April 25, 2025, compared to a 0.4% increase in the CSI 300 index [3][11] - The electricity sector is expected to see profit improvement and value reassessment due to ongoing supply-demand tensions and market reforms [3][4] - The report highlights a significant drop in LNG imports from the US to China, with zero imports for two consecutive months [3][4] Summary by Sections Market Performance - The utility sector rose by 2.4%, outperforming the market, with the electricity sector up by 2.39% and the gas sector up by 2.93% as of April 25, 2025 [3][11][13] Electricity Industry Data Tracking - Coal prices have decreased, with Qinhuangdao port coal prices at 657 CNY/ton, down 8 CNY/ton week-on-week [3][21] - Coal inventory at Qinhuangdao port increased to 6.89 million tons, up 40,000 tons week-on-week [3][29] - Daily coal consumption in inland provinces decreased to 2.947 million tons, down 107,000 tons/day week-on-week [3][31] Natural Gas Industry Data Tracking - Domestic LNG prices decreased slightly, with the national index at 4,513 CNY/ton, down 0.55% week-on-week [3][54] - The average LNG import price for March was 514.11 USD/ton, down 15.73% year-on-year [3][54] - The EU's natural gas supply for week 16 was 6.26 billion cubic meters, up 2.0% year-on-year [4][60] Key Industry News - Shandong province is aligning its electricity pricing mechanism with existing policies, aiming for a market-driven pricing model for renewable energy [3][4] - The report emphasizes the potential for improved profitability in the electricity sector due to ongoing reforms and supply-demand dynamics [3][4] Investment Recommendations - The report suggests focusing on leading coal-fired power companies such as Guodian Power, Huaneng International, and Huadian International, as well as regional leaders in tight supply areas [3][4] - For natural gas, companies with low-cost long-term gas sources and receiving station assets are recommended for potential profit growth [3][4]

Investment Rating - The investment rating for Yanzhou Coal Mining Company is "Buy" [3] Core Views - The company has shown a steady increase in coal production, with significant cost reduction and efficiency improvement measures in place. In Q1 2025, the company produced 36.8 million tons of commercial coal, a year-on-year increase of 6.3%. The target for 2025 is to achieve a commercial coal production of 155-160 million tons [3] - The coal chemical business has seen a notable increase in profitability due to the decline in coal prices. In Q1 2025, the chemical product output was 2.41 million tons, a year-on-year increase of 12%. The gross profit for the coal chemical business reached 1.46 billion yuan, a year-on-year increase of 39.1% [3] - The company is pursuing both organic and external growth strategies, with significant future growth potential. The company plans to acquire a 26% stake in Northwest Mining for 4.748 billion yuan and increase its capital by 9.318 billion yuan, which is expected to enhance profitability and support the goal of achieving 300 million tons of raw coal production [3][4] Financial Summary - In Q1 2025, the company reported total revenue of 30.312 billion yuan, a year-on-year decrease of 23.52%, and a net profit attributable to shareholders of 2.71 billion yuan, down 27.86% year-on-year. The operating cash flow was 3.662 billion yuan, a decrease of 33.04% year-on-year [1][3] - The company's financial forecasts for 2025-2027 predict net profits attributable to shareholders of 13.3 billion, 13.9 billion, and 14.2 billion yuan respectively, with corresponding EPS of 1.32, 1.39, and 1.41 yuan per share [4][5] - The company's debt ratio stands at 62.59%, a year-on-year decrease of 4.06 percentage points, indicating improved financial stability [1]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company achieved a revenue of 89.175 billion yuan in 2024, representing a year-on-year increase of 7.09%, and a net profit attributable to shareholders of 31.853 billion yuan, up 5.44% year-on-year [1][3] - The company is focusing on stabilizing prices in a challenging market environment, leading to a strategic decision to slow down growth to match demand changes [2] - The brand's strength is highlighted during industry adjustments, with expectations for continued growth in high-priced product segments [5] Financial Performance Summary - In 2024, the company's liquor revenue reached 83.127 billion yuan, a year-on-year increase of 8.74%, with the flagship product contributing 67.875 billion yuan, up 8.07% [2] - The gross profit margin for the company improved by 1.26 percentage points year-on-year, primarily due to price increases in flagship products [2] - For Q1 2025, the company reported a revenue of 36.94 billion yuan, a 6.05% increase year-on-year, and a net profit of 14.86 billion yuan, up 5.8% [3] Future Projections - The company is projected to achieve diluted earnings per share of 8.59 yuan, 9.17 yuan, and 9.87 yuan for the years 2025, 2026, and 2027 respectively [5] - Revenue forecasts for the upcoming years are 93.689 billion yuan in 2025, 99.138 billion yuan in 2026, and 105.469 billion yuan in 2027, with growth rates expected to stabilize around 5% to 6% [4]

Investment Rating - The investment rating for the electric power equipment and new energy industry is "Positive" [2] Core Insights - The report highlights that the landscape for power batteries is expected to optimize, with profitability in the sector likely to recover. Factors contributing to this include a long-term significant correction in the lithium battery sector, a potential turning point for the oversupply of lithium batteries, and a decrease in lithium carbonate prices which may lower battery costs and stimulate downstream demand. Additionally, advancements in fast charging technology and new materials are expected to enhance the penetration rate of new energy vehicles [2][3] - The report emphasizes that 2025 is anticipated to be a significant year for grid investment, with the electric grid becoming a bottleneck for new energy development. The demand for electric equipment is expected to rise due to increased electricity consumption from emerging industries like AI, and the rapid development of new energy sources is expected to drive the construction and upgrade of power grids globally [2][3] Summary by Sections New Energy Vehicles - The lithium battery sector has experienced a long-term correction, but a recovery in profitability is anticipated. The report notes a 40.1% year-on-year increase in new energy vehicle sales in March 2025, with a total of 1.237 million units sold [11] - The report suggests focusing on companies involved in fast charging technology and new materials, including CATL, BYD, and others [2][3] Electric Power Equipment and Energy Storage - The report indicates that the energy storage sector is expected to maintain high growth in 2025, with large-scale energy storage benefiting from improved market structures and business models. The commercial energy storage sector is also highlighted as having promising investment opportunities [3] - Key companies to watch include Sanyou Electric, Sunshine Power, and others involved in energy storage systems and components [3] Photovoltaics - The report notes sustained high demand in Europe and strong domestic demand for ground-mounted power stations. The reduction in costs is expected to accelerate the installation of photovoltaic systems [3][15] - Recommended companies include Trina Solar, LONGi Green Energy, and others [3] Industrial Control and Humanoid Robots - The report suggests that a new industrial control cycle is approaching, with a PMI of 50.5% in March 2025 indicating a recovery in manufacturing. The humanoid robot sector is also highlighted, with significant advancements expected in the coming years [5][6] - Companies such as Huichuan Technology and others are recommended for investment [5][6] Low-altitude Economy - The report discusses the rapid development of the low-altitude economy, with policies supporting the establishment of a national low-altitude traffic network [5] - Key companies in this sector include CATL and others [5]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company achieved a revenue of 89.175 billion yuan in 2024, representing a year-on-year increase of 7.09%, and a net profit attributable to shareholders of 31.853 billion yuan, up 5.44% year-on-year [1][3] - The company is focusing on stabilizing prices in a challenging market environment, leading to a strategic decision to slow down growth to match demand changes [2] - The brand's strength is highlighted during industry adjustments, with expectations for continued growth in high-priced product segments [5] Financial Performance Summary - In 2024, the company's liquor revenue reached 83.127 billion yuan, a year-on-year increase of 8.74%, with the flagship product contributing 67.875 billion yuan, up 8.07% [2] - The gross profit margin for the company improved by 1.26 percentage points year-on-year, primarily due to price increases in flagship products [2] - For Q1 2025, the company reported a revenue of 36.94 billion yuan, a 6.05% increase year-on-year, and a net profit of 14.86 billion yuan, up 5.8% [3] Future Projections - The company is projected to achieve diluted earnings per share of 8.59 yuan, 9.17 yuan, and 9.87 yuan for the years 2025, 2026, and 2027 respectively [5] - Revenue forecasts for the upcoming years are 93.689 billion yuan in 2025, 99.138 billion yuan in 2026, and 105.469 billion yuan in 2027, with growth rates of 5.1%, 5.8%, and 6.4% respectively [4]

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - Credit bond yields have followed the upward trend, and credit spreads have slightly widened again. This week, interest rates have generally fluctuated upward, and credit bond yields have generally followed suit. Except for the AA- credit bonds with 1Y and 5Y tenors, the spreads of other varieties have rebounded [2][5]. - The spreads of urban investment bonds have increased, with higher-grade varieties showing a relatively larger increase. This week, the spreads of urban investment bonds have generally increased, with the spreads of external subject-rated AAA platforms increasing by 3BP, and those of AA+ and AA platforms increasing by 1BP [2][9]. - The spreads of industrial bonds have diverged, and the spreads of private real estate bonds have continued to rise. This week, the spreads of central and state-owned enterprise real estate bonds have slightly increased by 2 - 3BP, the spreads of mixed-ownership real estate bonds have significantly decreased by 124BP, and the spreads of private real estate bonds have increased by 44BP [2][18]. - The spreads of secondary perpetual bonds have adjusted slightly upward, with a slightly higher increase in the 3 - 5Y tenors. This week, secondary perpetual bonds have adjusted, and their spreads have slightly increased, with a relatively higher increase in the 3 - 5Y tenors [2][27]. - The excess spreads of industrial perpetual bonds have basically remained flat, while the excess spreads of urban investment perpetual bonds have increased. This week, the excess spreads of industrial AAA3Y perpetual bonds have slightly increased by 0.01BP to 9.21BP, and those of urban investment AAA3Y and AAA5Y perpetual bonds have increased [2][29]. Summary According to Relevant Catalogs I. Credit Bond Yields Follow the Upward Trend, and Credit Spreads Slightly Widen Again - Interest rates have generally fluctuated upward. The yields of 3Y, 5Y, 7Y, and 10Y China Development Bank bonds have increased by 2BP, 3BP, 1BP, and 2BP respectively, while the yield of 1Y bonds has remained basically the same as last week [5]. - Credit bond yields have generally followed the upward trend. The yield of 1Y AA- credit bonds has decreased by 1BP, while the yields of other varieties have increased by 2BP; the yields of 3Y credit bonds of all grades have increased by 5 - 6BP; the yields of 5Y AAA and AA- credit bonds have increased by 1 - 3BP, and those of AA+ and AA varieties have increased by 5 - 6BP; the yields of 7Y credit bonds of all grades have increased by 3 - 4BP; the yields of 10Y bonds of all grades have increased by 5 - 6BP [5]. - Credit spreads have shown a mixed trend. Except for the slightly decreased spreads of 1Y and 5Y AA- credit bonds, the spreads of other varieties have rebounded. The spreads of 1Y AA- credit bonds have decreased by 1BP, while those of other varieties have increased by 2BP; the spreads of 3Y credit bonds of all grades have increased by 3 - 4BP; the spreads of 5Y AA- varieties have decreased by 2BP, while those of other varieties have increased by 1 - 3BP; the spreads of 7Y bonds of all grades have increased by 2 - 3BP; the spreads of 10Y bonds of all grades have increased by 3 - 4BP [5]. - Rating spreads and term spreads have shown a divergent trend. Most rating spreads have slightly decreased, and term spreads have shown different trends among different grades and tenors [5]. II. The Spreads of Urban Investment Bonds Increase, with Higher-Grade Varieties Showing a Relatively Larger Increase - Overall, the spreads of urban investment bonds have increased. The spreads of external subject-rated AAA platforms have increased by 3BP, and those of AA+ and AA platforms have increased by 1BP [9]. - Provincial AAA platform spreads: Most have increased by 1 - 3BP, with Tianjin, Xinjiang, and Shanxi increasing by 4 - 5BP [9]. - AA+ platform spreads: Most have increased by 0 - 1BP, with Jilin and Guizhou increasing by 8BP, and Yunnan, Heilongjiang, and Shaanxi decreasing by 5BP, 2BP, and 1BP respectively [9]. - AA platform spreads: Most have increased by 0 - 2BP, with Hunan and Liaoning increasing by 3BP, and Shaanxi and Shandong decreasing by 7BP and 3BP respectively [9]. - By administrative level: The spreads of provincial, municipal, and district-level platforms have increased by 3BP, 2BP, and 1BP respectively. Most provincial platform spreads have increased by 1 - 3BP, with Shanxi increasing by 8BP, and Shaanxi and Tianjin increasing by 5BP; most municipal platform spreads in various regions have increased by 1 - 2BP, with Jilin increasing by 7BP, and the spreads in Shanxi, Heilongjiang, Yunnan, and Guizhou decreasing by 1 - 5BP; most district-level platform spreads in various regions have remained flat or increased by 1 - 2BP, with Liaoning increasing by 3BP, Guizhou decreasing by 9BP, and Shaanxi decreasing by 4BP [15]. III. The Spreads of Industrial Bonds Diverge, and the Spreads of Private Real Estate Bonds Continue to Rise - The spreads of industrial bonds have shown a divergent trend. The spreads of central and state-owned enterprise real estate bonds have slightly increased by 2 - 3BP, the spreads of mixed-ownership real estate bonds have significantly decreased by 124BP (Vanke's spreads have decreased by 278BP), and the spreads of private real estate bonds have increased by 44BP (Longfor's spreads have decreased by 27BP, Midea Real Estate and Huafa Co., Ltd.'s spreads have remained flat, and CIFI's spreads have increased by 563BP) [18]. - The spreads of coal and steel bonds of all grades have increased by 1 - 2BP; the spreads of AAA-grade chemical bonds have decreased by 5BP, and those of AA+ have decreased by 13BP. The spreads of Shaanxi Coal have increased by 3BP, those of Jinkong Coal Industry have increased by 2BP, and those of HBIS have increased by 2BP [18]. IV. The Spreads of Secondary Perpetual Bonds Slightly Increase, with a Slightly Higher Increase in the 3 - 5Y Tenors - This week, secondary perpetual bonds have adjusted, and their spreads have slightly increased, with a relatively higher increase in the 3 - 5Y tenors. Specifically, the yields of 1Y medium- and high-grade commercial bank secondary capital bonds and perpetual bonds have increased by 0 - 1BP, the yield of AA-grade secondary capital bonds has increased by 2BP, and the spreads of 1Y secondary perpetual bonds have generally increased by 0 - 2BP. The yields of 3Y secondary capital bonds have increased by 5 - 6BP, and the spreads have increased by 3 - 4BP; the yields of 3Y AAA- and AA+-grade perpetual bonds have increased by 4BP, and that of AA has increased by 2BP, with the spreads of 3Y perpetual bonds increasing by 0 - 2BP. The yields of 5Y secondary capital bonds have increased by 4 - 5BP, and the spreads have increased by 1 - 2BP; the yields of 5Y perpetual bonds have increased by 2 - 4BP, and the spreads have increased by 0 - 2BP [27]. V. The Excess Spreads of Industrial Perpetual Bonds Basically Remain Flat, while the Excess Spreads of Urban Investment Perpetual Bonds Increase - This week, the excess spreads of industrial AAA3Y perpetual bonds have slightly increased by 0.01BP to 9.21BP, at the 9.83% quantile since 2015; the excess spreads of industrial AAA5Y perpetual bonds have remained the same as last week at 8.72BP, at the 6.53% quantile since 2015; the excess spreads of urban investment AAA3Y perpetual bonds have increased by 0.75BP to 8.99BP, at the 9.68% quantile; the excess spreads of urban investment AAA5Y perpetual bonds have increased by 1.19BP to 10.92BP, at the 10.12% quantile [29]. VI. Credit Spread Database Compilation Instructions - The overall market credit spreads, commercial bank secondary perpetual spreads, and urban investment/industrial perpetual bond credit spreads are calculated based on ChinaBond medium- and short-term notes and ChinaBond perpetual bond data, with historical quantiles since the beginning of 2015; the credit spreads related to urban investment and industrial bonds are compiled and statistically analyzed by Cinda Securities R & D Center, with historical quantiles since the beginning of 2015 [36]. - The credit spreads of industrial and urban investment individual bonds are calculated as the individual bond's ChinaBond valuation (exercise) minus the yield to maturity of the same-term China Development Bank bond (calculated by linear interpolation method), and finally the credit spreads of the industry or regional urban investment are obtained by the arithmetic mean method [36]. - The excess spreads of bank secondary capital bonds/perpetual bonds are calculated as the credit spreads of bank secondary capital bonds/perpetual bonds minus the credit spreads of bank ordinary bonds of the same grade and term; the excess spreads of industrial/urban investment perpetual bonds are calculated as the credit spreads of industrial/urban investment perpetual bonds minus the credit spreads of medium-term notes of the same grade and term [37]. - Sample selection criteria: Industrial and urban investment bonds both select medium-term notes and public corporate bond samples, and exclude guaranteed bonds and perpetual bonds; if the remaining term of an individual bond is less than 0.5 years or more than 5 years, it will be excluded from the statistical sample; industrial and urban investment bonds are both externally subject-rated, while commercial banks use ChinaBond implicit bond ratings [38].

Investment Rating - The investment rating for the electric power equipment and new energy industry is "Positive" [2] Core Insights - The report highlights that the landscape for power batteries is expected to optimize, leading to a potential recovery in profitability within the sector. Factors contributing to this include a long-term significant correction in the lithium battery sector, a potential turning point for the oversupply of lithium batteries, and a decrease in lithium carbonate prices which may lower battery costs and stimulate downstream demand [2][3] - The report emphasizes the importance of the charging pile industry and related companies, as well as the rapid growth of the energy storage sector, which is projected to maintain a high growth trajectory in 2025 [3][4] - The report also notes that the photovoltaic industry is experiencing sustained high demand in Europe, with inventory pressures expected to ease and new technologies like TOPCON entering mass production, which will inject new momentum into the development of renewable energy [3][4] Summary by Sections New Energy Vehicles - The report indicates that in March 2025, new energy vehicle sales reached 1.237 million units, a year-on-year increase of 40.1% and a month-on-month increase of 38.7%. The installed capacity of power batteries was 56.6 GWh, up 214.4% year-on-year and 45.9% month-on-month [11][13] - It suggests focusing on companies such as CATL, BYD, and others involved in lithium battery production and related technologies [2][3] Power Equipment and Energy Storage - The report anticipates a significant year for grid investment, with the global grid entering a growth cycle. The demand for power equipment is expected to rise due to increased electricity consumption from emerging industries like AI and the pressure on grids from rapid renewable energy development [2][3] - Investment targets include companies like Sifang Co., XJ Electric, and others involved in power equipment and energy storage solutions [3][4] Photovoltaic Industry - The report notes that the photovoltaic industry is benefiting from strong demand in Europe and a robust domestic market for ground-mounted power stations. The reduction in costs is expected to accelerate installations [3][4] - Recommended companies include Trina Solar, LONGi Green Energy, and others involved in the photovoltaic supply chain [3][4] Industrial Control and Humanoid Robots - The report indicates a new industrial control cycle is approaching, with a PMI of 50.5% in March 2025, suggesting a recovery in manufacturing and inventory replenishment [5][6] - It highlights the rapid progress in humanoid robots, with companies like Xpeng showcasing their humanoid robot IRON, aiming for mass production by 2026 [6][5] Low-altitude Economy - The report discusses the acceleration of low-altitude economy projects, with policies supporting the development of eVTOL (electric vertical takeoff and landing) vehicles [6][5]

Investment Rating - The report maintains an investment rating of "Positive" for the environmental protection sector [2]. Core Viewpoints - The report highlights a significant increase in the issuance and trading volume of green certificates in 2024, with a focus on how waste incineration power companies can leverage green certificate revenue to offset the decline in national subsidies [2][15]. - The average trading price of green certificates in 2024 is noted to be 5.59 yuan per certificate, indicating low market activity and limited short-term profit contribution for companies [2][30]. - The report emphasizes the potential for increased demand for green certificates as policies encourage high-energy-consuming industries to purchase green electricity certificates [2][22]. Summary by Sections Market Performance - As of April 25, the environmental protection sector rose by 1.02%, outperforming the broader market, with specific sub-sectors like waste incineration and resource recovery showing notable gains [8][10]. Industry Dynamics - The report discusses the recent announcement from the National Energy Administration regarding the upgrade of green certificate cancellation functions, enhancing the trading system's efficiency [31]. - It also mentions the implementation of low emission technology guidelines for waste incineration plants in Zhejiang Province [31][34]. Special Topic - The report details the explosive growth in green certificate issuance and trading volume in 2024, with a total issuance of 4.955 billion certificates, a year-on-year increase of 21 times, and a trading volume of 553 million certificates, a fourfold increase [15][19]. - The report notes that the manufacturing sector accounts for nearly 70% of green certificate purchases, with data centers emerging as a new growth area for green certificate consumption [19][20]. Investment Recommendations - The report suggests that the "14th Five-Year Plan" will continue to drive high demand for energy-saving and environmental protection initiatives, particularly in the water and waste incineration sectors, which are expected to maintain robust profitability and cash flow [40]. - Key recommendations include companies like Huanlan Environment, Xingrong Environment, and Hongcheng Environment, with additional attention to companies such as Wangneng Environment and Junxin Co., Ltd [40]. Company Announcements - The report includes financial performance highlights from various companies in the sector, indicating growth in revenue and net profit for several firms, such as Lankun Environment and Junxin Co., Ltd [36][37][38].