Investment Rating - The industry investment rating is "Positive" and maintained [11] Core Insights - The report highlights the implementation of "existing house sales" in Xinyang, Henan Province, which mandates that all newly developed commercial housing must be sold as completed properties [8][20] - The MiC (Modular Integrated Construction) technology significantly shortens construction cycles, with a policy goal of 40% of new urban buildings being prefabricated by 2030 [8][9][28] - The report emphasizes the environmental benefits and efficiency improvements of MiC technology, including a 60% reduction in traditional construction time and a 75% decrease in waste generation [9][28] Summary by Sections Existing House Sales - Xinyang's housing bureau has mandated that all new land developments must follow the "existing house sales" model, which allows for immediate property registration upon completion [20] - Various regions are exploring similar policies to enhance the real estate market [21] MiC Technology - The MiC technology aims to standardize housing construction similar to automobile manufacturing, promoting factory production and assembly [8][9] - The report outlines that by 2030, 40% of new urban buildings should be prefabricated, with a gradual increase to 30% by 2025 [8][9] Company Focus - China State Construction International has adopted MiC technology since 2018, with significant projects in the Guangdong-Hong Kong-Macao Greater Bay Area [9][28] - The company has established multiple production bases, with an estimated annual output value exceeding 5 billion yuan based on current capacity [9][28][32]

Investment Rating - The report maintains a "Positive" investment rating for the public utility sector in Hong Kong [7]. Core Insights - The significant decline in Hong Kong HIBOR since May has created a favorable environment for investment in the public utility sector, particularly in electricity, which is seen as a defensive asset amid external market volatility [10][11]. - The report highlights that the electricity sector is experiencing a dual benefit from both external market conditions and internal performance improvements, with a notable decrease in coal prices and an increase in renewable energy generation [10][11]. Summary by Sections Market Overview - Since May, the Hong Kong banking sector has seen a 285% increase in interbank liquidity, with HIBOR dropping by 337 basis points, marking the largest monthly decline since 2002. As of June 13, the 1-month HIBOR stabilized around 0.60%, maintaining a near three-year low [10][11]. - The Hang Seng Index rose by 8.02% from May 1 to June 13, outperforming the Shanghai Composite Index, which only increased by 2.48% during the same period [10][11]. Performance of the Electricity Sector - The report notes that the electricity sector is uniquely positioned to benefit from both defensive and offensive strategies, with improved profitability expected due to lower coal prices and stable electricity prices. For instance, the Q5500 coal price at Qinhuangdao port fell to 635.64 CNY/ton, a year-on-year decrease of 212.81 CNY/ton [10][11]. - Renewable energy generation is also on the rise, with wind power generation growth rates improving significantly in recent months, indicating a robust recovery in the sector [10][11]. Investment Recommendations - The report suggests that the "carbon neutrality" initiative and ongoing electricity market reforms will lead to a comprehensive reassessment of the intrinsic value of electricity operators throughout the 14th Five-Year Plan period. Key companies to watch include Huadian International, China Resources Power, and Huaneng International, among others [10][11]. - The report emphasizes the potential for long-term growth in the renewable energy sector, recommending investments in companies like Longyuan Power and China Nuclear Power, which are expected to benefit from favorable policy changes and market conditions [10][11].

Investment Rating - The industry investment rating is Neutral [7] Core Insights - The report emphasizes that selecting undervalued stocks may effectively mitigate the uncertainties on the demand side, especially as the steel industry faces increased short-term demand risks. Leading steel companies that previously enjoyed premium valuations due to strong market positions and growth potential have seen significant declines in both valuation and performance during the industry's bottoming process. Current valuation levels are at the cycle's bottom, providing a strong margin of safety. Even with demand pressures, the extent of valuation retraction may be limited if macro expectations improve compared to last year [2][4][5]. Summary by Sections Demand Side Analysis - Recent uncertainties in the steel demand side have increased due to seasonal effects and intensified trade frictions. The construction sector is experiencing order suppression due to high temperatures and rainfall, while the manufacturing sector faces indirect export pressures from tariff announcements. The apparent consumption of major steel products has decreased by 2.67% year-on-year and 1.82% month-on-month [5]. Supply Side Analysis - The average daily pig iron output has decreased to 2.4161 million tons, continuing a downward trend, but the reduction is limited. The total steel output has dropped by 5.25% year-on-year and 2.85% month-on-month. The report highlights the need to monitor the pace of production cuts as the industry enters the off-season [5]. Inventory and Price Trends - Inventory reduction has slowed due to weakened demand, with a week-on-week decrease of 0.70%. The total inventory of long products has decreased by 31.20% year-on-year, while flat product inventory has decreased by 14.88% year-on-year. Current prices for rebar and hot-rolled steel have dropped by 70 yuan per ton, with rebar priced at 3070 yuan per ton and hot-rolled steel at 3160 yuan per ton [6]. Investment Opportunities - The report suggests focusing on long-term undervalued state-owned enterprises like Baosteel and companies with strong shareholder returns such as Nanjing Steel and CITIC Special Steel. It also highlights the potential of low valuation and performance bottoming companies like Hualing Steel and New Steel, as well as opportunities in mergers and acquisitions [25].

Investment Rating - The report maintains a "Positive" investment rating for the non-bank financial sector, highlighting the attractiveness of quality stocks in this area [7]. Core Insights - The second quarter shows a stable improvement in policy and market trading trends, suggesting that high-quality non-bank stocks remain a good investment choice based on profitability and dividend stability [2][4]. - Recommended stocks include Jiangsu Jinzheng, China Ping An, and China Pacific Insurance for their stable earnings and high dividend yields. Additionally, stocks like New China Life, China Life, Hong Kong Exchanges, CITIC Securities, Dongfang Wealth, Tonghuashun, and Jiufang Zhitu Holdings are recommended based on their earnings elasticity and valuation levels [2][4]. Summary by Sections Market Performance - The non-bank financial index increased by 1.2%, outperforming the CSI 300 by 1.4% this week, ranking 6th out of 31 sectors. Year-to-date, the non-bank financial index is down 4.2%, underperforming the CSI 300 by 2.4%, ranking 25th out of 31 [5]. Policy and Regulatory Updates - The Ministry of Finance issued a notice to further implement the new insurance contract accounting standards, which is expected to increase the demand for equity assets among some insurance companies during the transition [4][61]. Company Announcements - Guosen Securities announced a cash dividend of 3.50 yuan per 10 shares, totaling 3.364 billion yuan [6]. Insurance Sector Insights - In April 2025, the cumulative insurance premium income reached 259.54 billion yuan, a year-on-year increase of 2.25%. Property insurance income was 64.86 billion yuan, up 5.19%, while life insurance income was 194.69 billion yuan, up 1.31% [22][23]. Investment Business Trends - The report notes a recovery in market activity, with average daily trading volume reaching 1.3717 trillion yuan, up 13.47% week-on-week. The margin financing balance also increased to 1.82 trillion yuan, up 0.53% [40][47]. Financing Activities - In May 2025, equity financing decreased to 16.795 billion yuan, down 32.2% month-on-month, while bond financing was 72.7 billion yuan, down 7.3% [49][51].

Investment Rating - The report maintains a "Positive" investment rating for the coal industry [10] Core Viewpoints - The report discusses the potential impact of rising oil prices on coal prices and the coal sector, suggesting that geopolitical conflicts can lead to synchronized price increases for oil and coal, but this requires substantial and sustained effects on oil supply and demand [2][7] - The current coal prices are expected to remain stable, influenced by seasonal factors such as the rainy season affecting power plant inventory replenishment and a reduction in production from some small private coal mines [6][18] - Historical analysis indicates that past geopolitical conflicts have not consistently led to increases in coal prices, emphasizing the need for sustained oil supply disruptions for a similar effect on coal [8][9] Summary by Sections Weekly Tracking Summary - The coal index (Yangtze) decreased by 0.40%, underperforming the CSI 300 index by 0.15 percentage points, ranking 16th out of 32 industries [18] - As of June 13, the market price for Qinhuangdao power coal was 609 RMB/ton, unchanged from the previous week [6][18] Supply and Demand Situation - The daily coal consumption across 25 provinces was 4.756 million tons, a decrease of 2.0% week-on-week and 6.7% year-on-year [34] - The total coal inventory in power plants was 119 million tons, with an available days supply of 24.9 days, reflecting a slight increase [34] Price Situation - The report notes that the price of main coking coal at Jingtang Port was 1230 RMB/ton, down 40 RMB/ton from the previous week [6][18] - The report highlights that the international coal prices have shown fluctuations, with Australian 5500 kcal FOB prices at 68.25 USD/ton, down 0.8 USD/ton week-on-week [18][36] Company Performance - The report identifies top-performing coal companies for the week, including Anyuan Coal Industry (up 11.33%) and Yunnan Coal Energy (up 9.82%) [28][31] - Conversely, companies like Dayou Energy and Pingmei Shenma Coal fell by 4.15% and 3.67%, respectively [28][31] Investment Recommendations - The report recommends marginal allocation to leading companies with stable profits such as China Coal Energy and Shenhua Energy, as well as growth-oriented companies like Electric Power Investment Energy and New Energy [9]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company announced its first mid-term dividend plan, reflecting its commitment to shareholder returns and ability to enhance dividend amounts by increasing capital stock by 10% annually in 2024 and 2025 [2][11]. - The bank is accelerating its branch expansion, including the absorption of Jiangsu Rudong Rongxing Village Bank and the establishment of a technology branch in Suzhou High-tech Zone, indicating a clear path for growth [2][11]. - The bank's performance remains strong, with a focus on improving asset quality and maintaining a leading position in industry growth rates [11]. Summary by Sections Company Investment Rating - The current stock price is 7.39 yuan, with a total share capital of 331,649 million shares and a net asset per share of 9.57 yuan [9]. Dividend Policy - The company plans to implement mid-term dividends for the first time, with expectations to increase the dividend per share (DPS) to 0.28 yuan or 0.30 yuan in 2025, resulting in dividend yields of 3.8% and 4.0% respectively [11]. Branch Expansion - The bank has accelerated its branch expansion since Q4 2024, with a clear growth trajectory through various acquisition and establishment strategies, including the absorption of village banks and the establishment of new branches [11][12]. Financial Performance - The bank's net interest margin remains significantly above industry averages, and it is expected to maintain a steady credit growth rate of around 8% in 2025 [11]. - The bank's non-performing loan ratio is projected to improve, with a focus on risk management and asset quality [11]. Market Position - The bank is currently valued at 0.77 times its 2025 price-to-book ratio, indicating it is undervalued compared to historical levels, and is recommended for investment due to its competitive advantages and growth potential [11].

Investment Rating - The investment rating for the real estate industry is "Positive" and maintained [10] Core Insights - The necessity for marginal easing in the industry is gradually increasing, with the policy goal of stabilizing the market becoming more proactive. However, since April, the marginal downward pressure has intensified [2][4] - The current position of development stocks is not high, indicating that the necessity for policy easing is increasing. Investors are advised to selectively allocate and wait for trading windows, while focusing on leading companies with stable cash flows and potential high dividends in commercial, brokerage, and property management sectors as strategic opportunities [2][4][8] Market Performance - The Yangtze River Real Estate Index decreased by 1.27% this week, with an excess return of -1.02% relative to the CSI 300, ranking 25th out of 32 industries. Year-to-date, the index is down 6.14%, with an excess return of -4.35%, ranking 30th out of 32 [5][14] Policy Developments - The State Council, led by Li Qiang, emphasized the importance of constructing a new model for real estate development to promote stable, healthy, and high-quality market growth. Policies will support the construction of "good houses" and optimize existing policies to stabilize expectations and activate demand [6][16] - Local governments, such as Shenzhen and Guangzhou, are proposing new policies to support housing purchases, including the withdrawal of purchase restrictions and lowering down payment ratios and interest rates [6][16] Sales Data - In sample cities, new home and second-hand home registrations are fluctuating at low levels. The new home transaction area in 37 cities showed a four-week rolling year-on-year decrease of 3.5%, while second-hand homes increased by 7.7% [7][18] - As of June 13, the new home transaction area in 37 cities decreased by 3.3% year-on-year, while second-hand homes increased by 11.6% [7][18] Weekly Highlights - The downward slope of the industry has been expanding since Q2, with the policy goal of stabilizing the market facing pressure. The marginal easing of industrial policies is becoming clearer, although the pace and intensity need further discussion [8][4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company achieved a revenue of 27.01 billion yuan for FY2025, a year-on-year decrease of 6.6%, and a net profit attributable to shareholders of 1.29 billion yuan, down 41.9%, which met expectations. The second half of FY2025 recorded a revenue of 13.96 billion yuan, a decline of 5.4%, and a net profit of 410 million yuan, down 52.9%. The total dividend for the year was approximately 1.7 billion yuan, with a dividend yield of 135%, exceeding expectations, primarily due to cash flow performance significantly outpacing net profit [2][4]. Summary by Sections Financial Performance - For FY2025, the company reported total revenue of 27.01 billion yuan, a decrease of 6.6% year-on-year, and a net profit of 1.29 billion yuan, down 41.9%. The second half of FY2025 saw revenue of 13.96 billion yuan, a decline of 5.4%, and a net profit of 410 million yuan, down 52.9%. The annual dividend was around 1.7 billion yuan, with a dividend yield of 135%, attributed to strong cash flow performance [2][4]. Profitability and Cost Management - The company's gross margin for FY2025 decreased by 3.4 percentage points to 38.4%, mainly due to increased discounting and a higher proportion of online sales. The selling and administrative expense ratios were 29.4% and 3.7%, respectively, benefiting from a 1.3% reduction in rental costs. The company closed approximately 1,100 stores, resulting in a total of 5,020 stores, which improved operational efficiency [8]. Inventory and Cash Flow - The company significantly optimized its inventory, with inventory turnover days decreasing by 1 day to 135 days and inventory down 4.5% year-on-year to 6 billion yuan. Operating cash flow increased by 20% year-on-year to 3.76 billion yuan, while accounts receivable decreased by 600 million yuan to 750 million yuan [8]. Future Outlook - The company is expected to face revenue pressure in FY2026 due to store closures and cautious procurement. The overall revenue is projected to decline, with net profit estimates for FY2026 and FY2027 at 1.32 billion yuan and 1.42 billion yuan, respectively, corresponding to P/E ratios of 12.57X and 11.74X [10].

Investment Rating - The report maintains a "Buy" rating for Midea Group [12]. Core Viewpoints - Midea Group has transitioned from an OEM model to an OBM model since 2015, establishing a comprehensive overseas brand matrix that covers high, medium, and low-end products. The company has significantly enhanced its global localization operations, which is expected to drive further increases in its overseas market share [3][10]. - The long-term growth of Midea's white goods products overseas is projected to be substantial, with potential annual sales volumes several times higher than those in 2024, driven primarily by replacement demand as global appliance ownership rates peak [3][10]. Summary by Sections Introduction - Midea, Haier, and Gree represent three major players in the domestic white goods industry, each with distinct globalization processes. Midea's international sales strategy is positioned between the two, with significant room for market share growth as domestic market expansion slows [6][20]. Globalization Progress - Midea began its overseas expansion in 1986, initially focusing on OEM. Since 2015, the company has shifted towards building its own brands, establishing 22 R&D centers and 23 production bases globally by 2024, and achieving a 6.7% share of global major appliance sales, ranking third in the industry [7][39]. Strengthening Overseas Sales - Midea's global strategy has evolved from "global operation" to "global breakthrough," focusing on local market integration. The company has expanded its sales channels and production capacity, with significant investments in e-commerce and a growing number of overseas sales points [8][51]. Overseas OBM Business Potential - Midea's projected long-term global annual sales for air conditioners, refrigerators, and washing machines are expected to reach 10.367 million, 2.898 million, and 3.711 million units, respectively, indicating growth potentials of 186%, 173%, and 133% compared to 2024 [9][10]. Investment Recommendations - The report suggests that Midea's ongoing global expansion and the expected growth in its white goods segment present a promising investment opportunity. Forecasted net profits for 2025, 2026, and 2027 are estimated at 42.588 billion, 46.766 billion, and 52.091 billion yuan, respectively, with corresponding P/E ratios of 13.61, 12.39, and 11.13 [10].

Investment Rating - The industry investment rating is "Positive" and maintained [9] Core Viewpoints - The home appliance industry is witnessing a strategic upgrade with the creation of executive "IP" by leading companies like Haier and Midea, enhancing direct interaction with consumers through social media platforms [2][4][26] - This approach allows for a restructured market research process in product design, providing consumers with a greater sense of participation and improving brand recognition through the personal charisma of executives [2][4][26] Summary by Sections Executive "IP" Development - Haier and Midea are actively developing executive "IP" to enhance brand influence, with executives engaging on social media platforms to connect with consumers [4][16] - The strategy aims to create a more relatable corporate image, allowing consumers to better understand the company's culture and values [4][26] Capturing Consumer Demand - In the current market, home appliance companies face higher demands for product innovation and consumer engagement, with social media providing a platform for direct communication [5][27] - The example of Haier's three-tub washing machine illustrates how consumer feedback can lead to rapid product development, achieving over 88,000 pre-orders within a week of launch [5][30] Brand Image and Trust - The creation of executive "IP" enhances brand image and fosters emotional connections with consumers, breaking down barriers between executives and the public [6][38] - Executives' personal engagement on social media can significantly boost brand recognition and consumer trust, as seen with Haier's CEO gaining popularity through relatable content [6][38] Investment Recommendations - In light of potential uncertainties, the report suggests focusing on companies with lower exposure to U.S. tariffs and strong domestic sales supported by government subsidies, such as Gree Electric, Hisense Home Appliances, and Midea Group [7][41] - Companies with significant domestic production capacity and compliance with trade agreements are also highlighted as strong investment opportunities [7][41]