Investment Rating - The report maintains an "Overweight" rating for the communication industry [2]. Core Insights - Qualcomm's financial report indicates a recovery in the smartphone market, with Q4 sales reaching $10.24 billion and adjusted EPS of $2.69. The company expects Q1 sales to be $10.9 billion with an adjusted EPS of $2.95. Qualcomm benefits significantly from the Chinese market, which accounts for 46% of its revenue [5][6]. - The establishment of a new company by "萝卜快跑" in Chongqing is noted, which is expected to benefit the related industry chain as autonomous driving companies continue to grow [6]. - Dell'Oro Group forecasts a double-digit CAGR for coherent optical transceiver shipments over the next five years, with total shipments expected to exceed 5 million units. This growth is driven by advancements in AI clusters and the increasing compatibility and application diversity of smaller, energy-efficient transceivers [7]. Summary by Sections 1. Core Insights and Investment Recommendations - Qualcomm's recovery in the smartphone market is highlighted, with significant revenue contributions from China [5]. - The report suggests focusing on sectors such as computing optical communication, satellite communication navigation, and communication equipment [8]. 2. Market Review 2.1. Sector Performance - The A-share communication index rose by 6.8% from November 4 to November 8, outperforming the CSI 300 index by 1.3 percentage points [9]. - Within the communication sector, communication equipment saw a 7.42% increase, while communication services rose by 5.42% [10]. 2.2. Stock Performance - The top-performing stocks included 震有科技 (+47.33%) and 高新兴 (+29.25%), while 海能达 (-17.38%) and 万马科技 (-5.72%) were among the worst performers [12]. 3. Industry News - China Telecom's second procurement for SD-WAN PON fusion gateways included 网经 and 瑞斯康达 [13]. - China Unicom, ZTE, and Qualcomm achieved a mobile terminal speed breakthrough of 9.3Gbps [13]. - China Mobile announced a new round of ordinary optical cable procurement [14]. 4. Company Dynamics - 中兴通讯 reported stable overall operations with double-digit growth in consumer and government enterprise businesses [15]. - 天孚通信 is progressing with its factory construction in Thailand [15]. 5. Company Announcements -司南导航 plans to grant 2.2 million restricted stock options, representing 3.54% of its total share capital [16].

Investment Rating - The report maintains a rating of "Buy" for the copper industry [4]. Core Viewpoints - The copper price reached a historical high in May 2024, driven by multiple macroeconomic and supply-demand factors [4]. - Supply disruptions are ongoing, with limited future increases in copper mine output anticipated [4]. - Demand remains stable, with positive expectations for growth driven by the renewable energy and power sectors [4]. Summary by Sections 1. Copper Price Review - The copper price experienced four phases in 2024: 1. Early January to early March saw a sideways trend 2. From early March to mid-May, prices rose significantly 3. Mid-May to early August experienced a correction 4. From early August onwards, prices stabilized at high levels [17][18]. 2. Supply Side - Global copper mine output from January to August 2024 was approximately 14.874 million tons, a year-on-year increase of 1.97%, which is below the expected 3.7% [23]. - Key supply disruptions included the closure of the Cobre mine in Panama and operational halts at various mines due to legal and environmental issues [23][34]. - The expected growth rates for copper mine supply in 2024 and 2025 are 1.7% and 3.5%, respectively [34][37]. 3. Demand Side - Demand for copper has been stable, with consumption in the first eight months of 2024 reaching 17.788 million tons, a slight year-on-year decrease of 0.14% [4]. - The renewable energy sector is expected to drive significant increases in copper consumption, with projected CAGR of 14.81% for solar energy from 2023 to 2026 and 19.78% for electric vehicles [4]. - The overall global copper demand is anticipated to recover, supported by increased investments in power infrastructure [4]. 4. Company Analysis - Zijin Mining holds the largest copper resource in China, with approximately 7.5 million tons as of the end of 2023 [4]. - In terms of production, Zijin Mining produced about 1.01 million tons of copper concentrate in 2023, leading the industry [4]. - The static reserve-to-production ratio for major companies indicates that Zijin Mining, Luoyang Molybdenum, and Jincheng Mining are in the top tier, with ratios of 74 years, 88 years, and 79 years, respectively [4].

Macro Liquidity - The 2-year and 10-year government bond yields in China decreased, with the yield spread widening to 0.7068%[7] - The central bank's net liquidity withdrawal was 851.4 billion CNY last week, and the MLF net withdrawal for October was 89 billion CNY[7] - The 10-year U.S. Treasury yield rose to 4.37%, while the dollar index remained stable at 104.32[10] Market Liquidity - A total of 926 new funds were established from January to October 2024, slightly down from 973 in the same period of 2023, with total issuance of 887.1 billion units[12] - In October, 55 new funds were launched, with 28 being equity funds, accounting for 45.5% of the total issuance of approximately 151.7 billion units[12] - The number of new ETF funds established in 2024 was 128, up from 116 in 2023, with 7 new equity ETFs launched in October, totaling 1.99 billion units[14] Southbound Capital - Southbound capital saw a net inflow of approximately 140 billion CNY last week, with a total net inflow of 542.1 billion CNY year-to-date[20] - The consumer sector had the highest net inflow among styles, with 130 billion CNY, followed by technology with 49 billion CNY[21] - Cumulative net inflow since the opening of southbound trading is approximately 3.05 trillion CNY[20] Margin Financing - Margin trading buy amounts increased to an average of 199.8 billion CNY last week, a 4.5% increase from the previous week, but the proportion of margin trading in total A-share turnover decreased to 10.4%[23] - The top sectors for net margin financing were electronics (73.4 billion CNY), computers (57.4 billion CNY), and automobiles (33.2 billion CNY)[23] Fundraising - In October, 11 companies conducted IPOs, raising a total of 4.97 billion CNY, while the total equity financing scale for the month was 14.53 billion CNY[25] - In October, 10 companies participated in private placements, raising a total of 7.11 billion CNY[25]

Investment Rating - The report maintains an "Accumulate" rating for the media industry [1][7]. Core Insights - The development of original game IPs in China remains stable, with the market size reaching 94.58 billion yuan, accounting for 48.2% of the domestic game market [5][13]. - The micro-drama market is expected to surpass the box office revenue of domestic films for the first time, with a projected market size of 50.44 billion yuan in 2024, representing a year-on-year growth of 34.90% [6][13]. - The Amazon Advertising global annual summit "unBoxed" has landed in Shenzhen, indicating potential benefits for related sectors, with a significant increase in active Chinese advertisers [14]. Summary by Sections 1. Core Insights and Investment Recommendations - The report highlights the stable development of original game IPs, suggesting a focus on companies like 37 Interactive Entertainment, Kingsoft Network, and Gigabit Network [7]. - The micro-drama sector is projected to grow significantly, with recommendations to pay attention to Mango Excellent Media and Zhejiang Cultural Industry Group [7]. 2. Market Review - The A-share Shenwan Media Index rose by 7.25% from November 4 to November 8, outperforming the CSI 300 Index by 1.75 percentage points [8]. - Among the sub-sectors, the film and television box office sector increased by 8.73%, while the education sector saw a decline of 0.45% [8][9]. 3. Industry News - The report references the "2024 China Game Industry IP Development Report," indicating a stable market for original game IPs [13]. - The "2024 China Micro-drama Industry Development White Paper" predicts a significant increase in the micro-drama market, with user numbers reaching 576 million by mid-2024 [13]. - The Amazon Advertising summit showcased trends in global marketing, with a notable increase in active Chinese advertisers [14]. 4. Company Dynamics - Focus on companies like Focus Media, which was recognized as one of the most admired Chinese companies in 2024 by Fortune [15]. - Xinhua Du is expanding into live e-commerce and short video sectors, establishing bases in key cities [15]. 5. Company Announcements - Tian Di Online plans to acquire 100% of Jiatu Group through a combination of stock issuance and cash payment [16]. - Visual China is investing in a venture fund, while *ST Wento is undergoing restructuring with new investment agreements [16].

Core Viewpoints - The upcoming sixth flight test of SpaceX's Starship is scheduled for November 19, 2024, aiming to further validate the reusability of the Super Heavy booster and the Starship upper stage [3][8] - The company Dahang Yujian has completed its Series A financing, with funds intended for technology development, market expansion, and team upgrades, highlighting the growing investment in reusable rocket technology in China [3][8] - The establishment of low-altitude economic platforms in Shanghai and Shenzhen is expected to accelerate the development of the low-altitude economy sector, with Shenzhen's fund targeting a minimum scale of 1 billion yuan [3][8][24] - The Ministry of Industry and Information Technology emphasizes the acceleration of artificial intelligence to empower new industrialization, focusing on innovation cooperation and the establishment of a stable AI industry chain [3][9] Industry Overview Commercial Aerospace and Satellite Internet - The establishment of the National Space Measurement Technology Committee aims to support the development of commercial aerospace and ensure accurate measurement in space activities [21] - The successful financing of Dahang Yujian indicates a strong interest in the development of reusable liquid rockets in China, which is crucial for reducing satellite launch costs and advancing manned spaceflight [3][21] Low-altitude Economy - Shanghai plans to establish a state-owned platform for the low-altitude economy to promote collaborative development in the sector [24] - Shenzhen's low-altitude economic fund aims to raise at least 2 billion yuan, with a focus on investing entirely in the low-altitude economy [24][25] - The Harbin low-altitude economic development plan outlines a comprehensive framework for building infrastructure and fostering innovation in the low-altitude sector [23] Artificial Intelligence - The Ministry of Industry and Information Technology is pushing for AI to enhance industrial processes, emphasizing collaboration between enterprises and research institutions [9][33] - The establishment of international cooperation platforms is intended to promote the application of AI in manufacturing and other industrial scenarios [9][33] Investment Recommendations - The report suggests focusing on companies in emerging industries such as low-altitude economy (e.g., Wan Feng Ao Wei, CITIC Hai Zhi), commercial aerospace (e.g., China Satellite Communications, China Satellite), and artificial intelligence (e.g., SMIC, Tongfu Microelectronics) [4][9]

Group 1: Market Sentiment - The stock-bond yield spread has increased, indicating a higher investment value in the A-share market, with the current stock-bond yield at -0.75% as of November 6, 2024, which is 0.05 percentage points higher than the previous week [11][12][13] - The margin trading balance has increased to approximately 1.73 trillion yuan, a rise of 2.86% compared to the previous week, with the financing purchase ratio of total A-share trading volume increasing to 11.13%, up by 0.59 percentage points [13][14][15] Group 2: Valuation Trends - The PE valuation percentiles for major indices mostly increased, with the CSI 500 leading with an increase of 11.4 percentage points, while the SSE 50 decreased by 3.6 percentage points [19][20] - Growth style sectors saw a significant increase in PE valuation percentiles, rising by 12.9 percentage points, while the financial sector saw a decline of 0.1 percentage points [24][25] - The industry PE valuation percentiles showed more increases than decreases, with the power equipment and new energy sectors leading with a rise of 20.1 percentage points, while the non-bank financial sector experienced the largest decline of 26.6 percentage points [26][28]

Investment Rating - The report maintains an "Overweight" rating for the home appliance industry [1] Core Viewpoints - The implementation of the old-for-new policy has significantly boosted home appliance sales since August 2024, with expectations for improved performance in Q4 2024 [2] - Looking ahead, the positive trend in the home appliance sector is expected to continue into 2025, supported by government policies aimed at stabilizing the real estate market and stimulating domestic demand [2] - Key companies to watch in the home appliance sector include Haier Smart Home, Midea Group, Gree Electric Appliances, Vatti Corporation, Robam Appliances, Stone Technology, and Feike Electric [2] Summary by Sections 1. Policy Implementation and Impact - The State Development and Reform Commission and the Ministry of Finance have launched a policy to support the replacement of old appliances, allocating approximately 300 billion yuan for this initiative [6] - The policy provides subsidies for seven categories of home appliances, with 15% for secondary energy efficiency products and 20% for primary energy efficiency products, capped at 2,000 yuan per item [6] - As of October 15, 2024, over 2 million consumers applied for the subsidy, leading to sales of 14.62 million appliances and 69.09 billion yuan in sales [8] 2. Sales Performance - In September 2024, sales of home appliances and audio-visual equipment increased by 20.5% year-on-year, with a notable improvement in overall retail sales [8][10] - The retail sales growth rate for home appliances improved significantly in August and September 2024, with a year-on-year increase of 28.6% in September [10] - Fourteen regions in China saw retail sales growth exceeding 30% for major appliance categories during August and September [13] 3. Channel Performance - Offline sales of air conditioners showed the most significant improvement, with a year-on-year growth of 75.7% in the last weeks of September [15] - Online sales for air conditioners also surged, with a 81.6% increase in September [17] - The average prices of major appliances have risen due to the subsidy policy, indicating a shift in product structure [19][21] 4. Future Outlook - The home appliance sector is expected to see improved performance in Q4 2024 and into 2025, driven by strong terminal sales and positive trends in production and shipment [29] - The government is likely to continue implementing consumer stimulus policies, which will further support the home appliance industry [32] - Export demand is anticipated to remain resilient, with expectations for growth in North America and emerging markets [33][36]

Investment Rating - The report maintains an "Overweight" rating for the automotive industry [4][6]. Core Insights - In October 2024, the sales figures for various new energy vehicle manufacturers were as follows: Aion 40,052, Xiaopeng 23,917, Li Auto 51,443, NIO 20,976, Leap Motor 38,177, Wenjie 33,921, and Zeekr 25,049. Year-on-year growth rates were 3.50%, +19.57%, +27.26%, +30.50%, +109.74%, +165.09%, and +91.55% respectively [2][8]. - Cumulative sales figures until October 2024 were Aion 267,016, Xiaopeng 122,478, Li Auto 393,257, NIO 170,257, Leap Motor 208,738, Wenjie 326,409, and Zeekr 167,922, with year-on-year growth rates of 31.97%, +20.73%, +38.16%, +35.05%, +95.03%, +528.81%, and +82.32% respectively [2][8]. Summary by Sections 1. Sales Tracking of New Energy Vehicle Manufacturers - In October 2024, the sales figures for Aion, Xiaopeng, Li Auto, NIO, Leap Motor, Wenjie, and Zeekr were 40,052, 23,917, 51,443, 20,976, 38,177, 33,921, and 25,049 units respectively, with year-on-year growth rates of 3.50%, +19.57%, +27.26%, +30.50%, +109.74%, +165.09%, and +91.55% [2][8]. - Cumulative sales until October 2024 were 267,016 for Aion, 122,478 for Xiaopeng, 393,257 for Li Auto, 170,257 for NIO, 208,738 for Leap Motor, 326,409 for Wenjie, and 167,922 for Zeekr, with year-on-year growth rates of 31.97%, +20.73%, +38.16%, +35.05%, +95.03%, +528.81%, and +82.32% respectively [2][8]. 2. Company Dynamics - Xiaopeng achieved a record high in monthly deliveries in October, with an 86% penetration rate of active users for its XNGP urban intelligent driving feature [3][12]. - Leap Motor unveiled its new B10 model at the Paris Auto Show, targeting global young users and expanding its international presence [3][13]. - NIO added 16,657 new intelligent driving users in October, bringing the total to 614,700, with significant growth in its intelligent driving capabilities [3][14]. 3. Investment Recommendations - The report suggests maintaining an "Overweight" rating for the automotive industry, focusing on companies that lead in smart technology and benefit from vehicle replacement policies, such as Xiaopeng, BYD, Xiaomi Group, and Leap Motor [4][14]. - For the components sector, the report recommends focusing on the electric and intelligent segments, highlighting companies like Huguang Co., Wuxi Zhenhua, Bojun Technology, Kebo Da, and Baolong Technology [4][14].

Investment Rating - The report maintains an "Overweight" rating for the home appliance sector [4][5]. Core Viewpoints - The home appliance industry experienced a slowdown in performance growth in Q3 2024, with overall revenue for the first three quarters reaching 1,189.88 billion yuan, a year-on-year increase of 4.3% [10][11]. - In Q3 2024, the revenue was 391.19 billion yuan, showing a year-on-year growth of 1.0%, with a sequential decline of 3.2 percentage points compared to Q2 2024 [10]. - The report highlights that while the black home appliance sub-sector saw a significant increase in growth, other sub-sectors such as white goods, small appliances, and kitchen appliances experienced a decline in growth rates [10][11]. - The net profit attributable to the parent company for the first three quarters of 2024 was 92.72 billion yuan, a year-on-year increase of 5.4%, with Q3 2024 net profit at 30.40 billion yuan, reflecting a slight increase of 0.8% [11]. Summary by Sections 1. Market Performance Tracking - The home appliance industry index fell by 2.89% from October 28 to November 1, ranking 28th among all first-level industries [9]. - The performance of various sub-sectors during this period included declines in white goods (-4.53%), small appliances (-9.22%), and kitchen appliances (-1.57%), while black appliances saw an increase of 16.08% [9]. 2. Fundamental Tracking 2.1 Q3 2024 Performance Slowdown - The report notes a continued slowdown in revenue growth across most sub-sectors, with specific year-on-year growth rates for Q3 2024 being: white goods (-0.4%), black appliances (10.3%), small appliances (3.1%), kitchen appliances (-16.3%), lighting equipment (-4.2%), and appliance components (3.9%) [10]. 2.2 Improvement in September Sales - Data from September indicates a recovery in domestic sales for air conditioners and refrigerators, with air conditioner production reaching 12.21 million units, a year-on-year increase of 26.0% [12][20]. - Refrigerator production in September was 8.76 million units, up 11.7% year-on-year, while washing machine production was 8.20 million units, reflecting a 3.3% increase [20]. 3. Industry Data Tracking - The report highlights a 13% year-on-year increase in the number of transactions for commercial housing in 30 major cities, with a 20% increase in transaction area [21]. - Raw material prices have seen slight increases, with LME copper and aluminum prices rising by 0.43% and 0.50%, respectively, as of November 1 [23]. 4. Investment Recommendations - The report suggests focusing on companies such as Haier Smart Home, Midea Group, Gree Electric Appliances, Boss Electric, Vatti, Roborock, and Feike Electric, anticipating improved performance in Q4 2024 and 2025 due to the positive effects of the old-for-new policy [5][25].

Inflation Data Analysis - October CPI decreased by 0.3% month-on-month and increased by 0.3% year-on-year, marking a decline from the previous month's 0.4%[2] - October PPI decreased by 0.1% month-on-month and by 2.9% year-on-year, continuing a 25-month negative trend[2] - The contribution of new price factors to October CPI was 0.7%, while the carry-over effect contributed -0.4%[2] Food and Non-Food Price Trends - October food CPI increased by 2.9% year-on-year, down from 3.3% in September, while non-food CPI remained negative at -0.3%[2] - Pork prices rose by 14.2% year-on-year, down from 16.2%, contributing to a decrease in livestock prices to 2.8%[2] - Fresh vegetable prices increased by 21.6% year-on-year, while fresh fruit prices rose by 4.7%, both showing a decline from previous values[2] PPI and Inventory Insights - The carry-over effect for PPI is expected to rebound in November, with contributions projected at -0.3% and 0.0% for November and December, respectively[3] - The CRB index monthly average year-on-year improved from -3.21% in September to -2.07% in October, indicating a potential narrowing of PPI declines[2][3] - The continued expansion of PPI declines may lead to a further decrease in the growth rate of industrial product inventories[2] Policy and Economic Outlook - Recent domestic and international policies are trending towards greater easing, with the Federal Reserve cutting rates by a total of 75 basis points in September and November[3] - The Chinese government approved a debt limit of 6 trillion yuan, increasing local debt resources by 10 trillion yuan, aimed at addressing hidden debts[3] - Both CPI and PPI are believed to have entered a bottoming phase, supported by the anticipated rebound in carry-over effects and CRB index improvements[3]