Investment Rating - The report maintains a "Positive" investment rating for the solid-state battery sector [5]. Core Insights - Solid-state batteries, particularly sulfide-based ones, are viewed as ideal solutions due to their high safety and performance, but face significant scientific challenges in scaling up production [12][18]. - The production process for solid-state batteries differs from traditional lithium-ion batteries, with a focus on dry processing techniques and enhanced sealing in assembly [12][13]. - The industry is witnessing a shift towards innovative materials and processes, such as the use of lithium sulfide and iron-based current collectors, which address existing limitations in battery performance and safety [24][28]. Summary by Sections Manufacturing and Equipment - The production process for solid-state batteries involves distinct steps, including dry electrode preparation and high-pressure formation, which enhance the overall production efficiency [11][12]. - The dry electrode process is crucial for solid-state batteries, as it minimizes the risk of hydrogen sulfide generation during production [13][16]. Cost Reduction - The industrialization of lithium sulfide faces challenges related to its stability, high-cost raw materials, and safety concerns during production [18][19]. - The report outlines various synthesis methods for lithium sulfide, highlighting their advantages and disadvantages, which impact the overall cost structure of solid-state batteries [19]. Material Innovations - The use of iron-based current collectors is gaining traction due to their potential to mitigate corrosion issues associated with traditional copper foils in solid-state batteries [24]. - The report discusses advancements in skeleton-based membranes for solid-state batteries, which enhance ionic conductivity and battery lifespan [28][29]. Iteration and Market Trends - The solid-state battery market is evolving with the introduction of high-nickel and lithium-rich manganese-based cathodes, which are expected to benefit from increased market penetration [36]. - The copper foil industry is undergoing restructuring, with new technologies being developed to meet the demands of solid-state battery applications [41].

Core Insights - The report emphasizes that the electrolytic aluminum industry is expected to experience a significant wave of dividends due to years of tight balance, abundant cash flow, balance sheet repair, and reduced capital expenditures [4][10][63] - The demand for aluminum is characterized by strong resilience, with a compound annual growth rate (CAGR) of 4.7% from 1955 to 2024, surpassing that of copper and steel [10][70] - Supply bottlenecks in aluminum production are primarily related to electricity, with overseas investment costs being more than double that of domestic projects, leading to concerns about production continuity [10][63] - The high profitability of electrolytic aluminum is expected to be sustained due to an oversupply of alumina and declining coal and electricity prices [10][63] Industry Overview - The report highlights that aluminum is a scarce resource with significant dividend potential, as the industry has maintained a tight balance for years, leading to improved cash flow and reduced debt ratios [10][63] - The demand for aluminum is driven by its functional, structural, and consumer properties, with diverse applications across various sectors [10][65][70] - The report notes that the global aluminum demand has shown strong growth, particularly in new energy vehicles, photovoltaic applications, and industrial upgrades, effectively offsetting declines in traditional real estate demand [10][71] Investment Strategy - The report suggests that companies with high dividend yields and strong operational resilience, such as China Hongqiao and Tianshan Aluminum, are well-positioned for investment [11][14] - It draws parallels with the coal industry, where high cash dividends and valuation re-evaluations have led to significant stock price increases, indicating a similar potential for the aluminum sector [9][39] - The report indicates that the capital expenditure in the aluminum sector is decreasing, which, combined with improved cash flow, enhances the ability to sustain and increase dividends [10][46][48]

Investment Rating - The report maintains a "Positive" investment rating for the agricultural products sector [11]. Core Insights - The pig farming industry has entered a clearing phase since 2021, with capital expenditure from large enterprises continuing to contract, leading to a recovery trend in industry ROE levels. Current industry capacity remains relatively excessive, and if policies are effectively implemented, it is expected to enhance profitability and stability in the sector. Attention should be paid to investment opportunities in leading enterprises [2][6][9]. Summary by Sections Industry Overview - The pig farming industry is in a mature stage, characterized by a significant increase in the scale of operations over the past 20 years. The proportion of large-scale farms (over 500 heads) has risen from 8.8% in 2000 to 70% in 2024, indicating a shift towards concentration and professionalization in the industry [7][16]. Policy Impact - Recent policies have emphasized capacity control and high-quality development. The current breeding sow inventory exceeds the normal level of 39 million heads, indicating an oversupply in the industry. The government has been proactive in promoting capacity control through various policy documents [30][31]. Trends and Investment Opportunities - The report identifies two major trends in the pig farming industry: 1. An expected increase in industry ROE levels with reduced volatility, highlighting the advantages of quality enterprises. The average ROE is projected to rise from -10% in 2021 to 21% in 2024 [9][45]. 2. An increase in free cash flow levels, leading to significant shareholder returns for quality enterprises. The industry is expected to generate a total free cash flow of 23 billion yuan in 2024, a 100% increase year-on-year [54][60]. Recommended Companies - The report specifically recommends investing in leading companies in the sector, including Muyuan Foods, Wens Foodstuff Group, Juxing Agriculture, and Shennong Group, as their valuations are currently at historical lows [2][9].

Investment Rating - The industry investment rating is "Positive" and maintained [7] Core Viewpoints - The current decline in silicon material prices is primarily due to the reduction in industrial silicon prices and lower electricity costs during the abundant water period, leading to expectations of increased operating rates among some companies. However, demand remains uncertain due to the end of domestic rush installations and the summer holiday in Europe. It is believed that silicon material prices are nearing the bottom cash cost, and further declines are limited. Recent policies such as green electricity direct connection and photovoltaic sand control have been introduced, which may accelerate industry recovery [2][4][5] Summary by Sections Silicon Material Price Trends - As of April 2025, silicon material prices have been continuously declining, with the latest average prices for N-type and dense materials at 34,000 and 32,000 yuan/ton respectively. The industry faces significant profit pressure [4][17] - The decline in silicon material prices is attributed to the drop in industrial silicon prices, which currently stand at 8,750 yuan/ton in Xinjiang, down 300 yuan/ton since the beginning of the year. The average price for industrial silicon in Q2 2025 decreased by 170 yuan/ton compared to Q1 2025 [19][21] Future Outlook - It is anticipated that silicon material prices are close to the cash cost of leading enterprises, indicating limited further decline potential. The cash cost for leading enterprises in Q1 2025 was 27,000 yuan/ton, and even with the recent drop in industrial silicon prices, the optimal cash cost for non-Southwest region capacities remains around 25,000 yuan/ton. The strong willingness to maintain prices is evident as companies face significant losses [5][33] - The second half of the year is expected to see favorable policies, with leading enterprises beginning to form a coalition. Recent policies aimed at supporting the photovoltaic industry, such as the green electricity direct connection and photovoltaic sand control, are likely to promote healthy industry development [5][37] Market Dynamics - The photovoltaic industry is experiencing a dual bottom in terms of fundamentals and market sentiment, with policy support and technological iterations expected to accelerate industry clearing. The demand is expected to become clearer in June and July, and if supply and prices do not improve by December, the likelihood of policy interventions to provide relief is expected to increase [40]

Investment Rating - The report maintains a "Positive" investment rating for the defense and military industry [3]. Core Insights - The report emphasizes the innovation in new combat forces and the importance of system integration in the defense sector, highlighting the growth potential in various sub-sectors such as aerospace electronics, unmanned systems, underwater defense, and data link technologies [8][10][37]. Summary by Sections Aerospace Electronics - The company, Aerospace Electric, is backed by the Aerospace Jiangnan Group and focuses on high-tech products in the aerospace and defense electronics sector. It has become a significant player in the industry, with over 70% of its products sold to high-end clients in aerospace and military sectors [12][21]. - The company has established a cross-regional, group-based structure to enhance its R&D, production, and sales capabilities, ensuring high-quality development [16][21]. Unmanned Systems - Unmanned systems have transitioned from the periphery to the center of modern warfare, with drones playing a crucial role in military operations. The report outlines the evolution of drones and their increasing complexity and autonomy [40][41]. - The modern drone ecosystem includes various types, from consumer drones to advanced stealth combat drones, reflecting significant technological advancements [42][43]. Underwater Defense - Unmanned Underwater Vehicles (UUVs) are highlighted as a new class of equipment with diverse applications and high autonomy. The report notes that the U.S. military's UUV market could exceed $50 billion over the next decade [74][81]. - UUVs are characterized by their stealth, cost-effectiveness, and support for distributed operations, making them a vital component of modern naval strategies [81][86]. Data Link Technologies - The report discusses the importance of data link technologies in enhancing operational connectivity and efficiency in military operations, emphasizing the need for continuous technological upgrades [8][37]. Market Potential - The report estimates that the Chinese military drone market could exceed 40 billion yuan by 2028, driven by increasing demand for various types of drones, including medium and large military drones [64][66].

Metal Sector - China Hongqiao's net profit forecast for 2024 is CNY 223.72 billion, with a PE ratio of 6.78[12] - Luoyang Molybdenum's net profit forecast for 2025 is CNY 167.43 billion, with a PE ratio of 10.42[12] Building Materials Sector - China National Materials' net profit forecast for 2025 is CNY 18.54 billion, with a PE ratio of 16.65[12] - Keda Manufacturing's net profit forecast for 2025 is CNY 17.24 billion, with a PE ratio of 10.82[12] - Three Trees' revenue compound growth rate from 2015 to 2018 was approximately 33%[40] Transportation Sector - SF Holding's net profit forecast for 2025 is CNY 117.44 billion, with a PE ratio of 20.58[12] - The company has seen a significant increase in daily package handling, reaching an average of 166 packages per courier in 2024[56] Chemical Sector - Yara International's net profit forecast for 2025 is CNY 22.52 billion, with a PE ratio of 12.30[12] - Ba Tian's net profit forecast for 2025 is CNY 12.84 billion, with a PE ratio of 7.59[12] Financial Performance - The overall net profit for Keda Manufacturing is projected to reach CNY 19.0 billion by 2026, with a significant increase in overseas revenue contributing to growth[31]

Investment Rating - The report maintains a "Positive" investment rating for the industry [5] Core Viewpoints - The report emphasizes the expected acceleration in the approval of ultra-high voltage (UHV) projects in the second half of 2025, with several key transmission corridors likely to be approved [10][15] - The current pace of construction for UHV direct current projects is increasing, with several projects nearing completion and others in the early stages of construction [15][16] - The report highlights a significant potential for equipment bidding in the second half of 2025, estimating a total bidding volume of approximately 55 billion yuan, with a substantial portion allocated for UHV converter valve equipment [28][30] Summary by Sections UHV Project Approvals - The 2025 National Energy Work Conference proposed the active promotion of several UHV transmission corridors, indicating a likely increase in project approvals in the latter half of 2025 [10] - Currently, only two projects have received approval, but expectations are high for a surge in approvals later in the year [10][15] UHV Direct Current Projects - Several UHV direct current projects are nearing completion, with the Jinshang-Hubei and Longdong-Shandong projects already operational [15] - Projects such as the Ningxia-Hunan and Shaanxi-Anhui are in advanced stages of construction, with expectations for operational readiness by 2026 [15][16] UHV Alternating Current Projects - The report notes that UHV alternating current projects are also in a peak construction phase, with several projects expected to commence in 2025 [16][18] Equipment Bidding Trends - In the first half of 2025, equipment bidding has been relatively low, totaling 2.48 billion yuan, while material bidding reached 17.87 billion yuan [25] - The report anticipates a rapid increase in bidding activity in the second half of 2025, driven by the approval of multiple UHV projects [28][30] Market Dynamics - The report indicates that the UHV equipment market remains concentrated, with leading companies expected to benefit from increased order volumes as the market expands [35]

Investment Rating - The report maintains a "Positive" investment rating for the real estate industry [12]. Core Insights - The report indicates that while the conventional policy space is relatively limited, there is still significant potential for extraordinary policy measures. This includes structural monetary or fiscal tools aimed at easing the burden on homebuyers, such as deep interest rate cuts on housing provident funds and increasing loan limits. The necessity for policy easing is increasing, and the timing is approaching, suggesting a favorable environment for selective investments in development stocks and stable cash flow companies [2][5][9]. Market Performance - The Yangtze River Real Estate Index increased by 3.42% this week, outperforming the CSI 300 by 1.47%. However, year-to-date, the index is down 4.94%, underperforming the CSI 300 by 4.61% [6][16]. - The report notes that the performance of development and property management stocks has been primarily upward, while rental companies have generally declined [6]. Policy Developments - Several cities have adjusted their housing provident fund policies to facilitate home purchases. For instance, Hangzhou allows the use of provident funds for down payments on new homes, while Jinan has clarified that individuals can withdraw funds for purchasing affordable housing with a minimum down payment of 15% [7][20]. Sales Data - New home registrations in 37 cities showed a significant year-on-year decline of 18.3%, while second-hand home registrations remained negative. Year-to-date, new home sales are down 2.0%, while second-hand home sales are up 19.8% [8][22]. Sector Outlook - The report emphasizes the importance of leading real estate companies with regional and product advantages, as well as those with stable cash flows, such as leading brokerage firms and commercial real estate companies, for medium to long-term investment opportunities [5][9].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a revenue of HKD 79.258 billion for the fiscal year 2024/25, a decrease of 2.6% year-on-year, while the net profit attributable to shareholders was HKD 3.252 billion, an increase of 2.1% year-on-year. The free cash flow for the year reached HKD 4.66 billion, up 8.7% year-on-year. The annual dividend per share remained unchanged at HKD 0.50, resulting in a current dividend yield of approximately 6.8% [2][6] Summary by Sections Revenue and Profitability - The company's revenue for the fiscal year 2024/25 was HKD 79.258 billion, down 2.6% year-on-year, while the net profit attributable to shareholders was HKD 3.252 billion, up 2.1% year-on-year. The free cash flow increased to HKD 4.66 billion, reflecting an 8.7% year-on-year growth [2][6] Dividend Policy - The company maintained its annual dividend at HKD 0.50 per share, consistent with the previous year, resulting in a payout ratio of 83.3% and a current dividend yield of approximately 6.8% [2][6] Business Segments Performance - Natural gas sales revenue was HKD 49.05 billion, down 6.5% year-on-year. Gas connection revenue was HKD 3.63 billion, down 9.6%. Engineering design and construction revenue increased by 14.7% to HKD 1.76 billion. Liquefied petroleum gas sales revenue rose by 8.9% to HKD 19.58 billion, while value-added services revenue increased by 2.1% to HKD 3.73 billion [9] Sales Volume and Pricing - The sales volume of town gas showed a slight increase of 0.02% year-on-year, with residential gas usage down 2.1% and industrial gas usage up 1.0%. The average residential gas price increased from HKD 2.71 per cubic meter in 2022 to HKD 3.00 per cubic meter in 2024, with a potential for further increases in the 2025/26 fiscal year [9] Margin Recovery - The company's gross margin improved from HKD 0.50 per cubic meter in the 2023/24 fiscal year to HKD 0.537 per cubic meter in the 2024/25 fiscal year, with expectations for further improvement to HKD 0.55 per cubic meter in the 2025/26 fiscal year [9] Connection Projects - The company added approximately 1.4 million new residential connections in the 2024/25 fiscal year, with guidance for 1.0 to 1.2 million new connections in the 2025/26 fiscal year [9] Value-Added Services - The value-added services segment achieved a pre-tax profit of HKD 1.75 billion, accounting for 26.2% of total profits, with a year-on-year growth of 10.6% [9] Financing Costs - The company optimized its debt structure, reducing the proportion of foreign currency loans to 0.5%, with the average financing cost decreasing from 4.83% to 3.84% year-on-year [9] Cash Flow - The free cash flow for the fiscal year reached HKD 4.66 billion, with expectations for further improvement due to a slowdown in capital expenditures related to connection projects [9]

Core Insights - The capital market is entering a new quality development cycle, with deepening transformation in the brokerage industry and increasing business differentiation, leading to a potential rise in industry concentration and new advantages for leading brokerages [3][6] - The report suggests focusing on changes in the market structure, particularly on undervalued leading firms, merger and acquisition themes, and high-dividend H-shares as key investment lines [3][9] Market Review Q1 2025 - The brokerage sector experienced an overall decline of 8.0% since the beginning of 2025, underperforming the CSI 300 by 6.2 percentage points [6][18] - In Q1 2025, total revenue and net profit for brokerages reached 1260.35 billion and 519.92 billion respectively, showing year-on-year growth of 24.6% and 84.1% [6][24] - The average return on equity (ROE) increased by 0.63 percentage points to 1.6%, with leading brokerages significantly outperforming the average [6][30] Outlook for 2025 - The brokerage industry is expected to continue its transformation, with a focus on the following areas: 1. **Brokerage Business**: The performance is closely tied to market trading activity, with Q1 2025 showing a high market heat contributing to revenue growth. However, the declining commission rates are expected to reduce trading volume elasticity [6][7] 2. **Proprietary Investment**: This segment has become a major revenue driver, contributing 40.5% to total revenue in Q1 2025. Leading brokerages are increasing their allocation to OCI equity investments [8][30] 3. **International Business**: Leading brokerages are accelerating their international expansion, with a competitive landscape emerging among top firms [8][9] Investment Recommendations - The report recommends focusing on three main investment themes: 1. Undervalued leading brokerages with high ROE and low PB ratios, specifically Huatai Securities and Guotai Junan [9] 2. Stocks related to merger and acquisition themes, particularly quality central enterprise leaders like Galaxy Securities [9] 3. High-dividend H-share brokerages as part of a high-yield strategy [9]