Report Investment Rating - The industry investment rating is oscillating and strengthening [3] Core Viewpoints - Short - term: Due to the increasing expectation of Fed rate cuts and the positive USDA report, the futures market oscillated and rebounded, and the 09 contract successfully reduced its positions. Next week, the market will mainly show an oscillating or rebounding trend. Attention should be paid to the results of the meeting between Trump and Putin on August 15th and its impact on the international situation. There are no other major domestic or international macro - events. The CF2509 contract should be watched in the range of [13560 - 13930], and the CF2601 contract in the range of [13920 - 14300] [5] - Medium - term: The long and short positions of the 09 futures contract were closed quickly and are almost stable. The probability of a US rate cut in September has risen significantly to over 90%. With the upcoming new cotton listing, the psychological expectation of ginneries for machine - picked cotton purchase is 6 - 6.3 yuan/ton. The pre - sale volume of new cotton has increased significantly compared with last year, about 1.5 million tons, which supports the price of newly - listed seed cotton, and the initial price is slightly higher. Additionally, with the approaching "Golden September and Silver October", there is a possibility of support or rebound in futures prices [5] - Long - term: Currently, the purchase price of hand - picked cotton in Kashgar is 7 - 7.3 yuan/ton, and the pre - sale price of cottonseed is 2.26 - 2.4 yuan/kg. The psychological expectation of ginneries for machine - picked cotton purchase is 6 - 6.3 yuan/ton, and they are cautious about prices higher than this. Comparing with the current price of the 2601 contract at 14100 - 14200 yuan/ton, farmers can make a profit. This year, the yield per unit has increased. For farmers who lease land, they can break even by selling at 6.66 yuan/ton (including the target subsidy, and it is expected that this year's subsidy will decrease to 0.6 - 0.7 yuan/kg). So, a seed cotton delivery price of 6 yuan/kg can ensure break - even. Also, the pre - sale volume of new cotton has increased significantly compared with last year, about 1.5 million tons, which supports the price of newly - listed seed cotton, and the initial price is slightly higher. During this period, the market is expected to oscillate or may have a rebound opportunity, with support at 13600 - 13700 and resistance at 14300 - 14600. After October, the price is expected to decline, and next year it is expected to oscillate and strengthen [5] Summary by Directory 01 - Weekly Viewpoint - Cotton - Short - term: The futures market will oscillate or rebound next week. Pay attention to the meeting between Trump and Putin on August 15th. The CF2509 contract should be watched in the [13560 - 13930] range, and the CF2601 contract in the [13920 - 14300] range [5] - Medium - term: The 09 contract is almost stable. The probability of a US rate cut in September is over 90%. New cotton pre - sale volume has increased, and the approaching "Golden September and Silver October" may support futures prices [5] - Long - term: Current purchase prices of different types of cotton are given. New cotton pre - sale volume has increased. The market may oscillate or rebound, with support and resistance levels provided. After October, the price may decline, and next year it may oscillate and strengthen [5] 02 - Weekly Viewpoint - Cotton Yarn - This week, Zhengzhou cotton oscillated and rebounded. The cotton yarn market's trading improved with the gradual recovery of downstream demand. Spinning mills' quotes were mainly stable, with some local preferential sales. Some traders' low - price sales decreased slightly. Air - jet spun and regular varieties were mainly for rigid demand. In terms of profit, as cotton prices stabilized, profit performance gradually became stable. Currently, inland spinning mills' C32S cash - flow loss is about 500 yuan/ton, while Xinjiang spinning mills still have a small profit. Overall, enterprises still face challenges of compressed processing profit and inventory pressure. The short - term market may continue to oscillate, following the cotton market but under greater pressure [7] 03 - Market Review - Cotton market: This week, the cotton market oscillated and strengthened, and the spot market remained strong. The main futures contract oscillated and adjusted. Although the overall commodity market was optimistic, the downstream procurement enthusiasm was still poor, and cotton prices were relatively stable [11] - Cotton yarn market: This week, the cotton yarn spot market remained stable, and the futures market oscillated and strengthened. The downstream still faced insufficient demand and production reduction. Enterprises' profit pressure was relatively large [11] 04 - International Macro - Multiple important economic data of the US and the Eurozone from August 1st to 20th, 2025 are presented, including unemployment rate, non - farm payrolls, trade balance, CPI, PPI, GDP, etc. [13] 05 - Domestic Macro - Multiple important economic data of China from August 7th to 20th, 2025 are presented, including foreign exchange reserves, CPI, PPI, fixed - asset investment, retail sales, and unemployment rate [15] 06 - Global Supply - Demand Balance Sheet - According to the USDA's August global cotton supply - demand forecast report, in the 2025/26 season, global cotton production, consumption, and import - export trade volume were all adjusted down month - on - month, and the ending inventory decreased month - on - month. In the 2024/25 season, global cotton production was expected to be adjusted down, consumption to be increased, and exports to be decreased. With the reduction of the beginning inventory, the ending inventory in the 2024/25 season decreased again [16] 07 - Domestic Supply - Demand Balance Sheet - 2024/25 season: The beginning inventory was 6.81 million tons, the national production was 6.85 million tons, and the annual import volume was adjusted down to 1.03 million tons. The monthly cotton consumption decreased month - on - month but increased year - on - year, and the annual cotton consumption was expected to be increased by 50,000 tons to 8.05 million tons. The total demand increased by 50,000 tons to 8.45 million tons, and the ending inventory was adjusted down by 120,000 tons to 6.24 million tons [18][22] - 2025/26 season: The beginning inventory was adjusted down by 120,000 tons to 6.24 million tons. Xinjiang's production increased by 120,000 tons to 6.59 million tons, and inland production decreased by 3,000 tons to about 310,000 tons. The national total production increased by about 120,000 tons to 6.9 million tons. The annual import volume was expected to be adjusted down by 100,000 tons to 1.4 million tons. The annual cotton consumption was expected to remain at 7.9 million tons, other consumption and exports remained at 380,000 tons and 20,000 tons respectively, and the total demand remained stable at 8.3 million tons. The ending inventory was adjusted down by 100,000 tons to 6.24 million tons [19][22] 08 - US Cotton Exports - As of August 7, 2025, the US had cumulatively net - signed 730,000 tons of cotton for the 2025/26 season, accounting for 27.95% of the annual expected export volume, and had cumulatively shipped 35,000 tons, with a shipment rate of 4.80%. Among them, upland cotton signing volume was 709,000 tons, shipping 32,000 tons, with a shipment rate of 4.56%; Pima cotton signing volume was 21,000 tons, shipping 3,000 tons, with a shipment rate of 12.89%. China had cumulatively signed 3,000 tons of US cotton for the 2025/26 season, accounting for 0.35% of the US's signed volume, and had cumulatively shipped 181 tons, accounting for 0.52% of the US's total shipment volume and 7.14% of China's signed volume [26] 09 - Industrial and Commercial Inventory - At the end of July, the national commercial cotton inventory was 2.1898 million tons, a decrease of 640,000 tons from last month, a decline of 22.62%, and 588,400 tons lower than the same period last year, a decline of 21.18%. As of the end of July, the textile enterprises' in - stock industrial cotton inventory was 898,400 tons, a decrease of 4,600 tons from the end of last month. The textile enterprises' disposable cotton inventory was 1.2062 million tons, a decrease of 9,400 tons from the end of last month. The total industrial and commercial inventory was 3.0882 million tons, a year - on - year decrease of 497,000 tons [28] 10 - Cotton and Cotton Yarn Imports in June - In June 2025, China's cotton import volume was 30,000 tons, a decrease of 10,000 tons from the previous month, a decline of 25.0%, and a decrease of 130,000 tons from the same period last year, a decline of 82.1%. From January to June 2025, China had cumulatively imported 460,000 tons of cotton, a year - on - year decrease of 74.3%. From September 2024 to August 2025, China had cumulatively imported 950,000 tons of cotton, a year - on - year decrease of 75.4%. In June 2025, China's cotton yarn import volume was 110,000 tons, a year - on - year increase of about 0.1%, and a month - on - month increase of about 10,000 tons, an increase of about 10%. From January to June 2025, China had cumulatively imported 670,000 tons of cotton yarn, a year - on - year decrease of 13.6%. From September 2024 to June 2025, China had cumulatively imported about 1.17 million tons of cotton yarn, a year - on - year decrease of 18.18% [32] 11 - Cotton Yarn Production and Sales in July - In July, with the further reduction of spinning mills' operation rate, production continued to decline. The production of pure cotton yarn (excluding recycled yarn) in July was 434,000 tons, a year - on - year increase of 12.1% and a month - on - month decrease of 3.2%. From January to July, the cumulative production of pure cotton yarn was 3.004 million tons, a year - on - year increase of 1.6%. July is still the traditional off - season for spinning mills. The downstream market showed some differentiation. From the perspective of operation rate and orders, the knitting market's orders increased slightly, and the operation rate rebounded slightly but remained at a low level. The operation rate of the weaving market mostly decreased. It is initially estimated that the consumption of pure cotton yarn (excluding recycled yarn) in July 2025 was 503,000 tons, a year - on - year decrease of 3.7% and a month - on - month decrease of 0.8%. From January to July, the cumulative consumption was 3.592 million tons, a year - on - year decrease of 5.9% [36] 12 - US Cotton Growth - As of August 10, the budding rate of cotton in 15 major cotton - growing states in the US was 93%, 2 percentage points slower than last year and 1 percentage point slower than the five - year average. The boll - setting rate was 65%, 7 percentage points slower than last year and 6 percentage points slower than the five - year average. The boll - opening rate was 8%, 4 percentage points slower than last year and 2 percentage points slower than the five - year average. The good - to - excellent rate was 53%, 7 percentage points higher than last year and 8 percentage points higher than the five - year average. The growth progress of US cotton was slower than last year and the five - year average, and the good - to - excellent rate decreased slightly month - on - month but was still much higher than the historical average [39] 13 - US Cotton Weather - As of August 12, the drought degree and coverage index of the main US cotton - growing areas (93.0%) was 50, an increase of 8 month - on - month and a decrease of 18 year - on - year. The drought degree and coverage index of Texas was 66, an increase of 2 month - on - month and a decrease of 26 year - on - year. The drought level in the main US cotton - growing areas rebounded, and that in Texas was basically stable month - on - month. In the past two weeks, the main growing areas and Texas had high temperatures and little rain, so the drought seasonally rebounded. Currently, the impact is not significant, and attention should be paid to whether the weather will continue to deteriorate [43] 14 - Xinjiang Cotton Growth - As of August 11, 2025, Xinjiang's cotton growth had entered the late boll - setting stage. Affected by continuous high - temperature weather in some cotton areas, the boll - setting rate of upper fruit branches was low, and the number of top bolls decreased. The average number of bolls was 8.4, a decrease of 0.2 from the previous week. Among them, the average number of bolls in southern Xinjiang was 8.3, a decrease of 0.2; in northern Xinjiang, it was 8.4, a decrease of 0.4; in eastern Xinjiang, it was 8.4, the same as last week. This year, the number of pre - summer bolls increased by about 1 - 2 compared with last year. If proper management is carried out in the later stage to increase the number of autumn bolls and prevent cotton field premature aging, most cotton farmers are optimistic about this year's cotton yield increase, with an expected increase of 15 - 30 kg. Currently, cotton in some areas of southern and eastern Xinjiang has begun to open bolls, about 5 - 10 days earlier than last year. Cotton field management is coming to an end, and the supply of water and fertilizer is gradually decreasing. According to the survey, some cotton fields plan to stop irrigation around August 20 and start spraying defoliants around September 5. The new cotton picking time will be about 10 days earlier than in previous years [45] 15 - Textile Industry Inventory - In June, the textile industry's inventory was 401.53 billion yuan, a month - on - month increase of 0.30% and a year - on - year increase of 1.12%. The textile industry's finished - product inventory was 215.3 billion yuan, a month - on - month increase of 1.18% and a year - on - year increase of 2.42%. The textile and clothing inventory was 187.98 billion yuan, a month - on - month increase of 0.78% and a year - on - year decrease of 0.36%. The textile and clothing finished - product inventory was 99.31 billion yuan, a month - on - month increase of 2.25% and a year - on - year increase of 1.68% [46] 16 - Domestic Demand - According to the National Bureau of Statistics, in July 2025, the total retail sales of consumer goods were 3.878 trillion yuan, a year - on - year increase of 3.7% and a month - on - month decrease of 8.29%. From January to July 2025, the total retail sales of consumer goods were 28.4238 trillion yuan, a year - on - year increase of 4.8%. In July, the retail sales of clothing, footwear, knitted, and textile products were 96.1 billion yuan, a year - on - year increase of 1.8% and a month - on - month decrease of 24.63%. From January to July, the cumulative retail sales were 837.1 billion yuan, a year - on - year increase of 2.9% [51] 17 - External Demand - According to the latest data from the General Administration of Customs, in July 2025, China's textile and clothing exports were 26.766 billion US dollars, a year - on - year decrease of 0.06% and a month - on - month decrease of 2

Investment Rating - The report maintains a "Positive" investment rating for the industry [11]. Core Insights - In the first half of 2025, China's total exports of HVO and SAF reached 338,400 tons, a year-on-year increase of 8.06%, with domestic SAF export channels successfully opened [2][6]. - Biodiesel exports fell to 381,000 tons, a decrease of 42.4% year-on-year, primarily due to anti-dumping tariffs [7][17]. - UCO exports totaled 1,262,000 tons, down 10.5% year-on-year, with Singapore replacing the U.S. as the largest export destination [8][31]. - The report suggests monitoring overseas policies and demand changes, anticipating more supportive domestic policies to be implemented [9][43]. Summary by Sections SAF & HVO - In H1 2025, China's SAF export channels were successfully opened, with a total export volume of 338,400 tons, marking an 8.06% increase year-on-year. Jiangsu Province exported 14,900 tons of SAF to Belgium and Spain in June, likely from the Jiaao Environmental Lianyungang factory [6][16]. - Domestic SAF exports require approval from four government departments, and Jiaao Environmental received a license for 372,400 tons of bio-jet fuel, indicating a positive trend for future SAF exports [6][16]. Biodiesel - Biodiesel exports in H1 2025 were 381,000 tons, down 42.4% year-on-year, mainly due to anti-dumping tariffs imposed by the EU [7][17]. - Major export partners included Malaysia (141,000 tons), Singapore (98,700 tons), and the Netherlands (70,000 tons), with significant increases in exports to Malaysia and Singapore, likely for blending with marine fuel [7][22]. - The average export price for biodiesel was $1,103 per ton, a slight increase of 2.0% year-on-year, while total export value dropped by 40.6% to $3.02 billion [17]. UCO - UCO exports in H1 2025 were 1,262,000 tons, a decrease of 10.5% year-on-year, attributed to increased domestic SAF production and the cancellation of export tax rebates [8][29]. - The average export price for UCO was $1,048 per ton, up 17.9% year-on-year, driven by the EU's mandatory blending policy for SAF [8][29]. - Singapore became the largest export destination for UCO, with exports to the U.S. declining significantly due to high tariffs [31][35]. Market Outlook - The report emphasizes the need to track overseas policy changes and anticipates more domestic supportive policies to be implemented [9][43]. - The U.S. market faces significant uncertainty due to fluctuating tariff policies, while the EU's blending ratio requirements for SAF are expected to boost China's SAF industry [43]. - In Singapore, the demand for clean alternative fuels is projected to increase due to new carbon quota regulations for the shipping industry [43]. Investment Recommendations - The industry is viewed positively due to its reliance on waste oils as raw materials, with several companies producing qualified SAF and obtaining airworthiness certification. The report recommends focusing on raw material suppliers and processing companies like Zhuoyue New Energy [9][47].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company experienced a significant decline in profitability, with a 84.3% year-on-year drop in net profit, attributed to weak demand and integration project impacts [2][4]. - The company is strategically increasing transportation resource investments to enhance product delivery efficiency and stability, which has negatively affected gross margin, leading to a 2.3 percentage point decrease in gross margin year-on-year [2][9]. - The integration project with JD Logistics is deepening, expanding from network integration to large item and terminal integration, which is expected to improve asset utilization efficiency [2][9]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved revenue of 20.55 billion yuan, a year-on-year increase of 11.4%, but net profit attributable to the parent company fell to 50 million yuan, down 84.3% year-on-year [4]. - The second quarter of 2025 saw revenue of 10.15 billion yuan, a 10.9% year-on-year increase, with net profit of 120 million yuan, down 49.8% year-on-year [4][9]. Business Operations - The express delivery business generated revenue of 18.61 billion yuan in the first half of 2025, up 11.9% year-on-year, while revenue growth from the integration project lagged behind the company's own express business [9]. - The company faced cost pressures, with operating costs rising by 14.2% year-on-year to 19.46 billion yuan, primarily due to a 30.2% increase in transportation costs [9]. Integration and Future Outlook - The integration with JD Logistics is progressing, with the company expected to provide 8.05 billion yuan in services to JD Group and its controlled enterprises in 2025, having completed 26.2% of this target in the first half of the year [9]. - The company anticipates that the integration will lead to improved profitability, with projected net profits of 770 million yuan, 910 million yuan, and 1.17 billion yuan for 2025, 2026, and 2027, respectively [9].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a revenue of 2.68 billion yuan for the first half of 2025, a year-on-year decrease of 5.0%, and a net profit attributable to shareholders of 230 million yuan, down 40.6% year-on-year [2][5] - In Q2 alone, the company achieved a revenue of 1.56 billion yuan, a year-on-year decrease of 5.1% but a quarter-on-quarter increase of 38.4% [2][5] - The company's performance in the civil explosives sector faced challenges, with total revenue from blasting services and civil explosive products amounting to 1.03 billion yuan, a decline of 11.8% year-on-year [11] - The chemical products segment also saw a revenue drop of 13.6% year-on-year, attributed to falling prices of key products such as ammonium nitrate and urea [11] - The company is steadily advancing capacity injection from its major shareholder, with recent acquisitions adding 71,000 tons per year of industrial explosive capacity [11] - The company is expected to achieve net profits attributable to shareholders of 640 million yuan, 770 million yuan, and 820 million yuan for the years 2025, 2026, and 2027 respectively [11] Summary by Sections Financial Performance - The company achieved a total revenue of 2.68 billion yuan in H1 2025, with a net profit of 230 million yuan, reflecting a significant decline compared to the previous year [2][5] - Q2 results showed a revenue of 1.56 billion yuan and a net profit of 170 million yuan, indicating a recovery in performance compared to Q1 [2][5] Sector Analysis - The civil explosives sector is experiencing increased competition, leading to a decline in revenue and profit margins [11] - The chemical products segment is under pressure due to falling prices and rising costs of raw materials, particularly natural gas [11] Capacity Expansion - The company is actively expanding its production capacity through acquisitions, which is expected to enhance its revenue and profit potential in the coming years [11]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company has announced a commitment to distribute at least 70% of its net profit attributable to shareholders in cash dividends annually from 2026 to 2030, reinforcing its status as a dividend leader [2][6] - The expected dividend yield compared to the ten-year government bond yield has reached the 99th percentile for 2023, indicating a high investment value [2][6] - The company is undertaking the construction of the Gezhouba shipping expansion project with an estimated investment of 26.6 billion, which is expected to have a limited impact on profitability and dividend distribution in the next five years [2][6][10] - The company's net profit for the first half of 2025 was 12.984 billion, a year-on-year increase of 14.22%, showcasing strong performance [2][10] - The projected earnings per share (EPS) for 2025-2027 are 1.38, 1.45, and 1.46 respectively, with corresponding price-to-earnings (PE) ratios of 20.08, 19.07, and 18.91 [10][10]

行业研究丨点评报告丨软件与服务 [Table_Title] 2025 世界人形机器人运动会北京开赛，人形机 器人产业或迈向新阶段 丨证券研究报告丨 报告要点 [Table_Summary] 8 月 14 日，全球首个以人形机器人为参赛主体的综合性赛事——2025 世界人形机器人运动会 在北京国家速滑馆开幕。本次运动会赛事周期为 8 月 15 日至 17 日，共计 3 天，设 26 个赛项， 除体育场景外，还有工厂、医院、酒店等场景，吸引来自 16 个国家和地区的 280 支队伍、500 余台人形机器人参与角逐。建议关注：1）机器人操作系统等软件相关厂商；2）机器人大模型 相关厂商。 分析师及联系人 [Table_Author] 宗建树 陈耀文 SAC：S0490520030004 SAC：S0490525070002 SFC：BUX668 请阅读最后评级说明和重要声明 %% %% %% %% research.95579.com 1 软件与服务 cjzqdt11111 [Table_Title 2025 世界人形机器人运动会北京开赛，人形机 2] 器人产业或迈向新阶段 [Table_Summary2] 事件描 ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 1.65 to 1.75 billion yuan for the first half of 2025, representing a year-on-year growth of 44.63% to 53.40% [2][5]. - The company’s net profit for Q2 2025 is projected to be between 0.888 to 0.988 billion yuan, with a year-on-year growth of 41.78% to 57.75% [11]. - The demand for AI-related business is driving structural growth in the printed circuit board (PCB) market, with expectations of continued revenue and profit growth [11]. Summary by Sections Financial Performance - For the first half of 2025, the company anticipates a net profit of 1.65 to 1.75 billion yuan, with a median estimate of 1.70 billion yuan, indicating a 49.01% year-on-year increase [2][5]. - The expected net profit excluding non-recurring items is projected to be between 1.61 to 1.71 billion yuan, with a median of 1.66 billion yuan, reflecting a 49.35% year-on-year growth [2][5]. Quarterly Performance - In Q2 2025, the company expects a net profit of 0.888 to 0.988 billion yuan, with a median of 0.938 billion yuan, showing a year-on-year increase of 49.77% [11]. - The projected net profit excluding non-recurring items for Q2 is between 0.865 to 0.965 billion yuan, with a median of 0.915 billion yuan, indicating a 48.78% year-on-year growth [11]. Market and Business Outlook - The company is benefiting from the structural demand for PCBs driven by high-performance computing servers and AI applications, which are expected to create new growth opportunities in the PCB market [11]. - The company has established a strong foothold in the high-end PCB market, with ongoing development of next-generation GPU platforms and high-speed network infrastructure products [11]. - The forecasted net profits for 2025 to 2027 are 3.726 billion yuan, 5.068 billion yuan, and 6.117 billion yuan, respectively, with corresponding price-to-earnings ratios of 28.43, 20.90, and 17.32 [11].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company has entered a performance release period, with significant growth in revenue and net profit for the first half of 2025. Revenue reached 360.76 billion yuan, a year-on-year increase of 35.58%. Net profit attributable to shareholders was 12.11 billion yuan, up 38.61% year-on-year [5][6] Financial Performance - In the first half of 2025, the company achieved a total operating income of 360.76 billion yuan, representing a 35.58% increase year-on-year - The net profit attributable to shareholders was 12.11 billion yuan, reflecting a year-on-year growth of 38.61% - The net profit attributable to shareholders after deducting non-recurring gains and losses was 11.67 billion yuan, with a year-on-year increase of 36.73% [5][6] Business Segments - In the cloud computing sector, the product structure continues to optimize, with AI servers steadily increasing their share. Overall server revenue grew over 50% in Q2, with cloud service provider server revenue up over 150% and AI server revenue increasing by over 60% - The company has established a solid R&D and intelligent manufacturing advantage in the AI server field, with increasing customer stickiness and growing technical and production advantages [11] - In the telecommunications and mobile network equipment sector, the demand for high-end smartphones driven by AI is rising, with the company's precision components business seeing a 17% year-on-year increase in shipment volume in the first half of the year [11] Strategic Positioning - The company benefits from a favorable strategic positioning that aligns with industry trends, focusing on high-end intelligent manufacturing and industrial internet while actively developing new businesses in big data and robotics - The company has deep cooperation with leading global clients in both telecommunications and cloud computing sectors, including Cisco, Huawei, Nvidia, and AWS, which strengthens its market position [11]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported a strong performance in the first half of 2025, achieving operating revenue of 16.375 billion, a year-on-year increase of 24.75%, and a net profit attributable to shareholders of 1.233 billion, up 57.22% year-on-year [2][5]. - The gross margin and net margin for the first half of 2025 were 19.07% and 7.49%, respectively, reflecting increases of 1.10 percentage points and 1.52 percentage points year-on-year [2][5]. - In Q2 2025, the company achieved operating revenue of 8.288 billion, a year-on-year increase of 28.71% and a quarter-on-quarter increase of 2.49%, with a net profit of 745 million, up 159.55% year-on-year and 52.59% quarter-on-quarter [2][5]. Summary by Sections Business Performance - The company’s communication board business generated revenue of 10.268 billion, a year-on-year increase of 17.62% [11]. - The consumer electronics and computer board business saw revenue of 5.174 billion, up 31.63% year-on-year, driven by the recovery in consumer electronics and the development of AI-related products [11]. - The automotive and server board business achieved revenue of 805 million, a significant increase of 87.42% year-on-year [11]. R&D and Innovation - The company continues to focus on PCB technology R&D, with current products achieving a minimum hole diameter of 0.025mm and a minimum line width of 0.020mm [11]. - The company is advancing new product development in areas such as foldable devices and AI servers, positioning itself as a key supplier for emerging technologies [11]. Capital Expenditure and Growth Outlook - The company plans to increase capital expenditures to over 30 billion New Taiwan dollars in the next two years, with nearly 50% allocated to expanding high-end HDI and HLC capacity [11]. - The company is expected to achieve net profits of 4.397 billion, 5.644 billion, and 6.773 billion for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 27.65, 21.54, and 17.95 [11].

Investment Rating - The report maintains a "Positive" investment rating for the metal and mining industry [10]. Core Insights - The report indicates that the metal market is currently at a cyclical bottom, with commodity prices experiencing fluctuations and equities leading the way. The first half of the year saw a "strong reality, weak expectations" scenario for copper and aluminum, while the second half is expected to see a decline in demand due to reduced wind and solar installations and export factors. However, supply elasticity is limited, and the extent of supply-demand deterioration is expected to be manageable. With the Federal Reserve's interest rate cuts and increased domestic stimulus policies, a "weak reality, stable expectations" state is anticipated, leading to continued fluctuations in copper and aluminum prices until demand enters a strong expectation or reality phase, projected by the end of this year or early next year [7][8]. Summary by Sections Commodity Market - In the commodity market, copper and aluminum prices are expected to fluctuate due to a combination of strong reality and weak expectations in the first half of the year. The second half is likely to see a decline in demand, but supply constraints will limit the deterioration of the supply-demand balance. The report suggests that the market will stabilize as the Federal Reserve cuts interest rates and domestic stimulus measures are implemented [6][7]. Equity Market - The equity market is positioned to lead the recovery as the cyclical bottom is reached. The report highlights that the current equity valuations have already factored in a significant amount of pessimism, making it an opportune time for investment in copper and aluminum sectors. The influx of long-term capital is expected to enhance pricing power and support the recovery of copper and aluminum values [7][8]. Precious Metals - The report maintains a bullish outlook on precious metals, particularly gold, driven by expectations of interest rate cuts. It suggests that gold stocks may experience a quarterly-level resonance across price, valuation, and style dimensions. The recommendation is to increase allocation to gold stocks, especially after gold prices stabilize above $3,500 per ounce [5][6]. Strategic Metals - The report emphasizes the strategic importance of rare earths and tungsten, noting that the value of these metals is being reassessed. The government is intensifying control over resources and smelting, which is expected to enhance the long-term strategic value of rare earths amid ongoing trade tensions. The report also highlights the potential for price increases in tungsten due to supply constraints and improving macroeconomic expectations [8][9].