1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - The overall performance of the bond market in Q4 2025 is expected to be better than that in Q3. It is recommended to actively allocate when the yield of the active 10 - year treasury bond is above 1.75%, and the yield of the active 10 - year treasury bond in Q4 is expected to decline to around 1.7% [10][36]. 3. Summary by Relevant Catalogs 3.1 Can the fundamentals price the bond market? - The bond market is sensitive to fundamentals. The decline in bond yields is a marginal change that requires continuous marginal weakening of fundamentals. Although the current economic growth rate is still at a relatively low level, there was no obvious weakening in the first three quarters of 2025, making it difficult to bring marginal long - buying power to the bond market [10][16]. - The bond yield decline space was significantly overdrawn in Q4 2024. From 2018 - 2023, the average annual decline of the 10 - year treasury bond yield was only about 20bps, while in 2024, it declined by 88bps, the highest since 2015. Especially after the monetary policy proposed "moderate easing" on December 9, 2024, the bond yield declined significantly, overdrawn the bond market space in 2025 [10][16]. - The pricing influence of fundamentals on the bond market is expected to gradually increase in Q4. Due to the base effect, the year - on - year GDP growth rate in Q4 is expected to slow down to around 4.5% from about 5% in Q3, and the adjustment of the bond market in Q3 has basically repaired the previous overdrawn phenomenon [19]. 3.2 How does the bond market react to repeated trade frictions? - Before the end of October, trade frictions will suppress market risk sentiment and increase the valuation of safe - haven assets, providing a favorable environment for the bond market. It will take until the end of October to early November to prove whether it is a "TACO transaction" [10][24]. - Sino - US trade frictions benefit the bond market through the equity market and the expectation of monetary easing. The equity market is a high - odds variable for the bond market. If the equity market adjusts, it will benefit the bond market. External shocks to the capital market increase the probability of further monetary easing, as shown by the "double - cut" in May after the trade friction in April this year [10][25]. 3.3 What if the Q4 fund sales fee rate new regulations are implemented? - The redemption disturbance caused by the sales fee rate is different from traditional disturbances. The full inclusion of the fund redemption fee in the fund property will not lead to the overall loss of investors, so it will not cause a systematic upward shift in the bond market curve [10][32]. - The redemption feedback caused by the change in the fund sales fee rate does not involve the re - pricing of stocks and bonds. After banks redeem short - term bond funds, funds can flow back to the bond market through money market funds and bond ETFs in a short time. Therefore, the adjustment range and time of the bond market caused by the redemption feedback are expected to be less than before [10][35].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Insights - In September 2025, the company achieved a total sales volume of 440,000 vehicles, representing a year-on-year increase of 40.4% and a month-on-month increase of 21.0%. Cumulatively, from January to September, total sales reached 3.193 million vehicles, up 20.5% year-on-year. The sales growth rate has been on an upward trend since March, indicating the effectiveness of ongoing reforms [2][12] - The report highlights that the sales performance across various segments, including joint ventures, independent brands, new energy vehicles, and overseas markets, continues to show positive momentum [12] Summary by Sections Overall Performance - The company reported a total sales volume of 440,000 vehicles in September 2025, with a year-on-year increase of 40.4% and a month-on-month increase of 21.0%. For the first nine months of 2025, total sales reached 3.193 million vehicles, reflecting a year-on-year growth of 20.5%. The sales growth has been consistently improving since March, showcasing the positive impact of reforms [12] Joint Ventures - Sales from joint venture brands have shown continuous improvement, with September sales for SAIC Volkswagen at 94,000 vehicles (up 0.1% year-on-year, up 8.7% month-on-month) and for SAIC General at 49,000 vehicles (up 124.4% year-on-year, up 12.7% month-on-month). Cumulatively, from January to September, SAIC Volkswagen sold 752,000 vehicles (down 2.5% year-on-year), while SAIC General sold 381,000 vehicles (up 36.7% year-on-year) [12] Independent Brands - The independent brand segment saw significant growth, with SAIC Passenger Cars selling 94,000 vehicles in September (up 72.4% year-on-year, up 25.5% month-on-month) and a total of 596,000 vehicles sold from January to September (up 23.8% year-on-year). The new model, IM LS6, launched on September 10, is expected to further boost sales [12] New Energy and Overseas Markets - New energy vehicle sales reached 189,000 units in September, marking a year-on-year increase of 46.5% and a month-on-month increase of 46.0%. For the first nine months, new energy vehicle sales totaled 1.083 million units, up 44.8% year-on-year. Exports and overseas sales amounted to 101,000 vehicles in September (up 12.2% year-on-year, up 14.0% month-on-month) and 765,000 vehicles from January to September (up 3.5% year-on-year) [12] Future Outlook - The company is undergoing internal reforms and enhancing collaboration with Huawei to accelerate its smart transformation. The ongoing reforms are expected to improve operational efficiency and drive sales growth for independent brands. The projected net profit for 2025 and 2026 is estimated at 13.02 billion and 14.98 billion yuan, respectively, with corresponding price-to-earnings ratios of 14.8X and 12.9X [12]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Insights - The company's overseas business gross margin has significantly improved in 2024, primarily due to self-developed core components and an increase in the proportion of high-end products. Additionally, precision agriculture products have expanded their application scenarios from controlling agricultural machinery to controlling tools. The passenger vehicle business is progressing smoothly, with a delivery volume of 300,000 units. For 2025, the company aims for a net profit attributable to shareholders of 730 million yuan, representing a year-on-year increase of 25% [2][4][9]. Summary by Relevant Sections Financial Performance - For the first three quarters of 2025, the company expects a net profit attributable to shareholders of 480-495 million yuan, a year-on-year increase of 23.17%-27.02%. The non-recurring net profit is projected to be 440-455 million yuan, up 28.81%-33.20% [4]. - In Q3 2025, the company achieved a net profit of 154-169 million yuan, a year-on-year increase of 12%-22%, with a non-recurring net profit of 141-156 million yuan, up 8%-19% [9]. Business Development - The company has seen steady growth in its other business lines, despite pressure on the deformation monitoring business due to fiscal spending impacts. The company remains confident in achieving its annual profit target of 730 million yuan for 2025 [9]. - Emerging businesses are being launched while traditional businesses continue to iterate, with a favorable operating environment. The company has made significant breakthroughs in RTK technology and has expanded into various sectors, including precision agriculture and smart driving [9]. Growth Drivers - The company is focusing on four main growth areas: overseas expansion, three-dimensional intelligence, precision agriculture, and smart driving. The overseas market is expected to provide high margins and rapid growth, with overseas revenue accounting for 29% in 2024 and a gross margin of 77.6%, which is nearly 27 percentage points higher than the domestic market [9]. - The company has been designated as a key supplier for several automakers in the autonomous driving sector, with cumulative deliveries exceeding 300,000 units [9].

Investment Rating - The report maintains a "Positive" investment rating for the industry [7] Core Insights - OpenAI's third annual developer conference (DevDay) was held on October 6, revealing that ChatGPT has surpassed 800 million weekly active users and 4 million developers. A series of product and model updates were announced, including the launch of Apps SDK, AgentKit for building AI agents, and an upgraded API [2][4] - The report highlights promising segments within the AI industry, including interactive tools and toys, major internet companies with traffic, model, and data advantages, verticals with proven business models overseas that can be replicated domestically (such as advertising, e-commerce, and education), and AI+ gaming companies [2][10] Summary by Sections Event Description - The developer conference showcased significant operational data, including ChatGPT's weekly active users and developer count, along with new product launches [4] Event Commentary - The Apps SDK allows seamless integration of external applications within ChatGPT, enhancing user experience. Initial applications include Booking.com, Canva, and Spotify, with plans for more integrations in the future. The report anticipates ChatGPT evolving into an AI super operating system as more developers utilize the SDK [10] - AgentKit, a platform for building and optimizing AI agents, was launched, featuring a user-friendly interface for constructing agents and enhanced evaluation capabilities [10] - Codex, a coding collaboration tool, has seen a tenfold increase in daily active users since its preview, with significant token processing achievements. New features include Slack integration to facilitate task assignment [10] - The report suggests focusing on specific AI segments, including companies with strong IP and operational capabilities, major firms leveraging traffic and data advantages, and verticals with successful overseas business models [10]

Investment Rating - The report maintains a "Positive" investment rating for the communication industry [10]. Core Insights - The communication sector experienced a decline of 1.40% in the 41st week of 2025, ranking 27th among primary industries in the Yangtze River region. However, since the beginning of 2025, the sector has risen by 59.73%, ranking 2nd among primary industries [2][5]. - OpenAI is expanding its AI ecosystem by launching the Sora2 social application and integrating payment features within ChatGPT. It has partnered with AMD for a 6GW computing power collaboration and with Samsung and SK for long-term storage supply [2][8]. - Global investment in AI infrastructure is increasing, with xAI's funding potentially exceeding $20 billion, and NVIDIA planning to invest around $2 billion. Google is investing $10 billion to build a 1GW data center in India [2][7]. Summary by Sections Market Performance - In the 41st week of 2025, the communication sector fell by 1.40%, while it has increased by 59.73% since the start of the year, ranking 2nd among primary industries [2][5]. OpenAI Developments - OpenAI launched the flagship audio-video generation model Sora2 and a corresponding iOS social application. It also introduced an "instant checkout" feature in ChatGPT, initially supporting U.S. Etsy merchants and planning to expand to over one million Shopify merchants. OpenAI announced a strategic partnership with AMD to deploy up to 6GW of AMD GPUs, with the first 1GW expected to be operational in the second half of 2026 [6][8]. AI Infrastructure Investment - The report highlights a surge in global AI infrastructure investments, with xAI planning to raise up to $20 billion, and NVIDIA expected to contribute up to $2 billion. Google is investing $10 billion in a data center cluster in Visakhapatnam, India, which will have a capacity of 1GW and is projected to be the largest data center in Asia by 2028 [7][8]. Investment Recommendations - The report recommends several companies based on their sectors: - Telecom operators: China Mobile, China Telecom, China Unicom - Optical modules: Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication - Liquid cooling: Invec - Air-core optical fibers: Fenghuo Communication, Hengtong Optic-electric - Domestic computing power: Runze Technology, Guanghuan New Network - AI applications: Boshi Jie, Heertai, Tuobang Co., Ltd. - Satellite applications: Huace Navigation, Haige Communication [8].

Core Insights - The A-share market showed resilience today with a low open and a high close, despite slight declines in the three major indices. The Sci-Tech 50 index turned positive in the afternoon, indicating market strength. The Shanghai Composite Index fell by 0.19%, the Shenzhen Component by 0.93%, and the ChiNext by 1.11% [5][8] - The market capitalization reached 2.37 trillion yuan, with 1,682 stocks rising across the market [8][19] Market Performance - The A-share market experienced a mixed performance with the following index changes: Shanghai Composite Index down 0.19%, Shenzhen Component down 0.93%, ChiNext down 1.11%, Shanghai 50 down 0.26%, and CSI 300 down 0.50%. In contrast, the Sci-Tech 50 index rose by 1.40% [8][10] - In terms of sector performance, the top gainers included Metal Materials and Mining (+3.13%), Environmental Protection (+1.36%), and National Defense and Military Industry (+1.29%). Conversely, the Automotive sector (-2.27%), Home Appliances Manufacturing (-1.71%), and Media Internet (-1.57%) were among the laggards [8][10] Conceptual Trends - The rare earth sector led the market with significant gains, driven by recent government policies reinforcing export controls and price increases announced by major rare earth companies. The rare earth concept stocks surged, with rare earths up by 9.49% and rare earth permanent magnets up by 8.09% [8][10] - The self-sufficient industrial chain showed strength, particularly in semiconductors and military industries, influenced by geopolitical tensions and trade negotiations between China and the U.S. [8][10] Future Outlook - The report maintains a bullish outlook on the Chinese stock market, particularly for October, anticipating supportive policies from the upcoming 20th Central Committee meeting. The macroeconomic environment is expected to improve, with liquidity remaining ample [8][10] - Investment strategies should focus on technology sectors and value-oriented industries that are showing signs of recovery. Key areas of interest include lithium batteries, military technology, and sectors with improving revenue growth and profit margins such as fiberglass, cement, and medical services [8][10]

Investment Rating - The report indicates a positive investment outlook for the green methanol industry, highlighting it as an investment year due to the impending implementation of the IMO carbon tax and the demand for green fuels [5][8]. Core Insights - The International Maritime Organization (IMO) is set to review the Net Zero Framework (NZF) in October 2025, which will impose mandatory emission limits and greenhouse gas pricing on the shipping industry, potentially increasing the demand for green fuels such as green methanol [5][8]. - The demand for green methanol is projected to range from 12.9 million to 95.37 million tons by 2030, depending on various scenarios regarding the adoption of zero-emission fuels [8][33]. - The economic analysis suggests that biodiesel will achieve price parity by 2033, while green methanol is expected to become economically viable by 2034 [9][47]. Summary by Sections Policy and Regulatory Framework - The IMO has revised its greenhouse gas reduction strategy, aiming for net-zero emissions by 2050, with stricter interim targets for 2030 and 2040 [15][18]. - The NZF framework, once approved, will be incorporated into the MARPOL convention, providing a legal basis for enforcing carbon taxes on non-compliant vessels [28][22]. Economic Viability - Current cost estimates show that biodiesel is more economically favorable than green methanol, but green methanol is expected to reach parity by 2034 [9][47]. - The cost structure of alternative fuels indicates that fuel prices and carbon emission costs significantly impact overall operational costs [51][54]. Investment Opportunities - Key investment themes include companies with core competencies in green methanol production, such as wind and solar energy firms, environmental companies, and certain chemical manufacturers [11][20]. - There are also opportunities in multi-stage supporting technology and equipment service providers across the green methanol supply chain, including hydrogen storage and carbon capture technologies [11][20]. Demand Projections - The report estimates that the demand for green methanol could reach 95.37 million tons under optimistic scenarios, with a minimum of 12.9 million tons under pessimistic conditions by 2030 [33][36]. - The analysis of the shipping industry's transition to green fuels indicates a significant market potential for green methanol as a primary fuel source [33][36].

Core Insights - The Hong Kong stock market experienced a significant trading volume of HKD 490.37 billion on October 13, 2025, with net inflows from southbound funds amounting to HKD 19.804 billion. Major indices in the Hong Kong market saw a general decline, primarily influenced by geopolitical tensions following Trump's announcement of 100% tariffs and export controls on China, despite subsequent easing statements from Trump and Vance, which left market sentiment affected [10][10]. Market Performance - The Hang Seng Index fell by 1.52% to 25,889.48, while the Hang Seng Tech Index decreased by 1.82% to 6,145.51. The Hang Seng China Enterprises Index dropped by 1.45% to 9,222.54, and the Hang Seng High Dividend Yield Index saw a slight decline of 0.18%. In the A-share market, the Shanghai Composite Index fell by 0.19%, the CSI 300 decreased by 0.50%, and the Wind All A Index dropped by 0.35%, with the Dividend Index slightly up by 0.02% [6][10]. Sector Analysis - In terms of sector performance, the non-ferrous metals sector led gains with an increase of 2.28%, followed by light industry manufacturing and basic chemicals, both up by 0.60%. Conversely, the electronics sector fell by 2.66%, the home appliances sector decreased by 2.37%, and non-bank financials dropped by 2.08%. Among concepts, the local brokerage index surged by 17.08%, the financial IC index rose by 7.96%, and the software outsourcing index increased by 5.18%, while the Foxconn index fell by 6.47%, the smart home index decreased by 5.70%, and the smart terminal index dropped by 5.50% [6][10]. Future Outlook - The report suggests that the ongoing trade tensions will not alter the slow bull market trend in Hong Kong stocks. Potential avenues for future growth include: 1) AI technology and new consumption sectors, which are expected to have significant growth potential; 2) Continued inflows from southbound funds, enhancing marginal pricing power; and 3) The transmission from loose monetary policy to loose credit in China, alongside potential US interest rate cuts, which could improve global liquidity and support further gains in the Hong Kong market [10].

Export Performance - September exports increased by 8.3% year-on-year, exceeding the Reuters consensus estimate of 6%[6] - The two-year average growth rate for September exports continued to decline to 5.3%[6] - Month-on-month growth for September exports was 2.1%, slightly below the 3% average from 2018 to 2023[6] Trade Dynamics - Exports to the US improved, with September exports valued at $34.31 billion, showing a month-on-month growth of 8.6% and a year-on-year decline of 27%[6] - Exports to Africa surged, with September exports reaching $22.37 billion, a month-on-month increase of 20.3% and a year-on-year growth of 56.4%[6] - Exports to the EU showed seasonal weakness, with September exports at $48.02 billion, a month-on-month decrease of 7.1% but a year-on-year growth of 14.2%[6] Product Categories - High-tech products, electromechanical products, and labor-intensive products saw year-on-year growth rates of 11.5%, 12.6%, and -4.1%, respectively[6] - Ship exports showed significant month-on-month increases, attributed to preemptive actions by domestic shipbuilders ahead of new US regulations[6] Import Trends - September imports rose by 7.4% year-on-year, significantly above the Reuters estimate of 1.5%[6] - Major commodities such as iron ore, crude oil, and soybeans saw increased import volumes compared to the previous month[6] - The trade surplus narrowed to $90.45 billion due to strong import performance[6] Risks and Outlook - The impact of US tariff policies remains uncertain, with potential implications for China's exports[7] - The ongoing US-China trade negotiations may lead to a significant easing of trade tensions at the upcoming APEC summit[6]

Investment Rating - The report maintains a "Positive" investment rating for the industry [7]. Core Viewpoints - The report emphasizes optimism towards two main directions: domestic AI and domestic substitution. It highlights the decreasing cost of using domestic large models as a sustainable trend, which is expected to enhance the practicality, comprehensiveness, and cost-effectiveness of models, thereby promoting the landing of vertical scenarios and increasing demand for cloud and hardware [6][44]. - The report suggests focusing on sectors such as AI infrastructure, AI agent-related manufacturers, the Chinese reasoning computing power industry chain, CSP manufacturers, and IDC companies collaborating with leading firms. It also points out the potential benefits for domestic chip and operating system industries due to the domestic substitution trend accelerated by U.S. export controls on "critical software" [6][57]. Summary by Sections Market Performance - Last week, the computer sector experienced significant fluctuations, with an overall decline of 2.28%, ranking 30th among major industries. The total trading volume accounted for 7.78% of the market [2][4][13]. Key Recommendations - The report strongly recommends focusing on domestic AI and domestic substitution, particularly in light of the U.S. export controls that may accelerate the domestic software localization process. Key areas of interest include the domestic chip industry, operating systems, and the Huawei supply chain [6][57]. Recent Developments - The report notes the awarding of the Nobel Prize in Physics to three quantum physicists for their contributions to quantum mechanics, which is expected to positively impact the quantum computing industry [18][21]. - The launch of Figure AI's new product, Figure 03, is highlighted, showcasing advancements in humanoid robotics and its potential for mass production [27][31].