Investment Rating - The report maintains a "Recommended" rating for the automotive industry, indicating a positive outlook for the sector's fundamentals and expectations for the industry index to outperform the benchmark index [5]. Core Insights - The automotive industry experienced an overall decline of 1.6% during the week from November 2 to November 8, 2025, with significant drops in the passenger and commercial vehicle segments, which fell by 3.4% and 3.0% respectively [2][11]. - Xpeng Motors showcased its advancements in "physical AI" at its technology day, introducing the second-generation VLA large model and the humanoid robot IRON, which is expected to be mass-produced by the end of 2026 [1][25][28]. - The report highlights the performance of individual stocks, with notable gains for Haima Automobile (+50.0%), Weichai Power (+22.1%), and ST Meichen (+17.2%), while Hengshuai Co. (-20.8%) and Biaobang Co. (-20.0%) faced significant declines [3][16]. Market Performance Overview - The automotive sector's secondary segments saw a comprehensive decline, with automotive parts and services experiencing smaller drops of -0.2% and -0.4% respectively, while tire and dealership segments showed positive growth of +1.9% and +1.8% [2][11]. - The overall market indices for the week showed mixed results, with the Shanghai A index rising by 1.1% and the Shenzhen A index by 0.4%, contrasting with the automotive sector's decline [9]. Recent Developments - Xpeng announced its entry into the Robotaxi market, planning to launch three self-developed Robotaxi models in 2026, which will utilize the second-generation VLA model and feature advanced AI capabilities [28]. - BYD plans to launch its high-end brand "Yangwang" in the Middle East in early 2026, marking its expansion into the luxury vehicle market [24]. - The report notes the successful IPOs of autonomous driving companies, including WeRide and Pony.ai, which reflect growing investor interest in the sector [31].

Investment Rating - The report maintains a "Recommendation" rating for the transportation industry [3] Core Insights - The transportation industry is experiencing a recovery, with various segments showing potential for growth, particularly in shipping, infrastructure, aviation, and express delivery [7][19][22][20] Shipping - The shipping sector is seeing mixed price movements, with the SCFI for the US East route down 17.2% and the Southeast Asia route up 6.4% [11] - The report highlights the importance of monitoring the price increases in container shipping and the potential recovery in oil tanker rates due to improved US-China trade relations [16][12] Infrastructure - Key metrics indicate a decline in truck traffic and railway cargo, while port throughput has increased significantly, suggesting a shift in market dynamics [17][18] - The report emphasizes the potential for dividend stocks in the infrastructure sector, particularly in ports, which are currently undervalued [19] Aviation - The aviation sector shows a positive trend with a 7.2% year-on-year increase in passenger volume, driven by improved demand and a low base effect [22] - The report suggests that the industry is poised for profitability in 2026, with a focus on valuation recovery and potential investment opportunities in major airlines [22] Express Delivery - The express delivery sector is benefiting from a reduction in price competition, with a notable increase in business volume and revenue [20] - The report indicates that the "anti-involution" policies are helping to stabilize prices and improve profitability in the sector [20] Logistics - The logistics segment is experiencing stable performance, with cross-border air freight prices showing a week-on-week increase [23] - The report notes the importance of monitoring the daily traffic at key ports and the implications for logistics operations [23]

Investment Rating - The report maintains a recommendation for the industry, indicating a stable outlook for textile manufacturing and a positive trend for gold and jewelry sectors [3]. Core Insights - Textile manufacturing is expected to gradually improve due to stable overseas demand and low inventory levels, despite short-term production efficiency issues and order delays from existing clients [7][11]. - Brand apparel is facing pressure due to weak domestic consumption, with only a few companies showing positive performance through strong product and channel strategies [7][38]. - The gold and jewelry sector is experiencing high growth driven by low base effects, rising gold prices, and product structure upgrades, with leading brands showing significant revenue growth [7][49]. Summary by Sections Textile Manufacturing - Overseas demand remains stable, with low inventory levels in the U.S. indicating a healthy supply chain [12]. - Major global brands like NIKE are seeing recovery after two years of channel optimization, with orders expected to improve as major sporting events approach in 2026 [11][18]. - Key companies to watch include Shenzhou International, Yuyuan Group, and others with Southeast Asian production capabilities [34]. Brand Apparel - The performance of brand apparel companies is generally under pressure, with most reporting low single-digit revenue growth and declining profits [38]. - Notable exceptions include Mercury Home Textiles and Luolai, which reported significant revenue and profit increases due to product expansion and multi-channel strategies [38]. - Companies like Mercury Home Textiles and Li Ning are recommended for their positive brand momentum and strategic changes [48]. Gold and Jewelry - The gold and jewelry sector saw a 11.5% increase in retail sales in the first three quarters of 2025, driven by rising gold prices and product upgrades [49]. - Leading brands such as Chao Hong Ji and Man Ka Long reported substantial revenue growth, with Chao Hong Ji's revenue increasing by nearly 50% in Q3 2025 [54]. - Investment recommendations focus on brands with strong market positioning and ongoing product and channel upgrades, such as Chow Tai Fook and Chao Hong Ji [67].

Quantitative Models and Construction Methods - **Model Name**: Multi-cycle timing model for domestic interest rate price-volume trends **Model Construction Idea**: The model uses kernel regression algorithms to capture interest rate trend patterns, identifying support and resistance lines of interest rate data. It provides timing signals based on the shape of interest rate movements across different investment cycles [11][24][25] **Model Construction Process**: 1. **Data Input**: Utilize 5-year, 10-year, and 30-year government bond YTM data [11][24][25] 2. **Kernel Regression**: Apply kernel regression to identify support and resistance lines for interest rate trends [11][24][25] 3. **Cycle Analysis**: - Long cycle: Monthly frequency - Medium cycle: Bi-weekly frequency - Short cycle: Weekly frequency 4. **Signal Generation**: - If at least two cycles show downward breakthroughs of support lines and the trend is not upward, allocate fully to long-duration bonds - If at least two cycles show downward breakthroughs but the trend is upward, allocate 50% to medium-duration bonds and 50% to long-duration bonds - If at least two cycles show upward breakthroughs of resistance lines and the trend is not downward, allocate fully to short-duration bonds - If at least two cycles show upward breakthroughs but the trend is downward, allocate 50% to medium-duration bonds and 50% to short-duration bonds - Otherwise, allocate equally across short, medium, and long durations [24][25][29] **Model Evaluation**: The model demonstrates robust performance with high annualized returns and low drawdowns across different cycles [25][28][33] Model Backtesting Results - **5-Year YTM Model**: - Long-term annualized return: 5.5% - Maximum drawdown: 2.88% - Return-to-drawdown ratio: 1.91 - Short-term annualized return (since 2024): 2.21% - Maximum drawdown: 0.59% - Return-to-drawdown ratio: 3.74 - Long-term excess return: 1.07% - Short-term excess return: 0.87% - Historical win rate for annual absolute returns: 100% - Historical win rate for annual excess returns: 100% [25][37] - **10-Year YTM Model**: - Long-term annualized return: 6.09% - Maximum drawdown: 2.74% - Return-to-drawdown ratio: 2.22 - Short-term annualized return (since 2024): 2.64% - Maximum drawdown: 0.58% - Return-to-drawdown ratio: 4.57 - Long-term excess return: 1.65% - Short-term excess return: 1.43% - Historical win rate for annual absolute returns: 100% - Historical win rate for annual excess returns: 100% [28][37] - **30-Year YTM Model**: - Long-term annualized return: 7.37% - Maximum drawdown: 4.27% - Return-to-drawdown ratio: 1.73 - Short-term annualized return (since 2024): 3.28% - Maximum drawdown: 0.92% - Return-to-drawdown ratio: 3.59 - Long-term excess return: 2.41% - Short-term excess return: 2.68% - Historical win rate for annual absolute returns: 94.44% - Historical win rate for annual excess returns: 94.44% [33][37] Quantitative Factors and Construction Methods - **Factor Name**: Interest rate structure indicators (level, term, convexity) **Factor Construction Idea**: Transform YTM data into structural indicators to analyze the interest rate market from a mean-reversion perspective [8] **Factor Construction Process**: 1. **Level Structure**: - Formula: $ \text{Level} = \text{Average YTM across maturities} $ - Current reading: 1.61%, positioned at 21%, 12%, and 6% percentiles for 3, 5, and 10-year historical views, respectively [8] 2. **Term Structure**: - Formula: $ \text{Term} = \text{Difference between long and short maturity YTM} $ - Current reading: 0.41%, positioned at 27%, 17%, and 18% percentiles for 3, 5, and 10-year historical views, respectively [8] 3. **Convexity Structure**: - Formula: $ \text{Convexity} = \text{Second derivative of YTM curve} $ - Current reading: -0.04%, positioned at 10%, 6%, and 5% percentiles for 3, 5, and 10-year historical views, respectively [8] **Factor Evaluation**: These indicators provide a comprehensive view of the interest rate market's structural dynamics, aiding in timing and allocation decisions [8] Factor Backtesting Results - **Level Structure**: Current reading: 1.61% [8] - **Term Structure**: Current reading: 0.41% [8] - **Convexity Structure**: Current reading: -0.04% [8]

1. Report Industry Investment Rating - The document does not mention the industry investment rating [1] 2. Core Viewpoints - The report focuses on the performance and capital flow of the ETF fund market in the past week, including overall market, different popular sub - types, and innovative themes and sub - industries, to provide reference for investors [1] 3. Summary by Related Catalogs 3.1 ETF Market Overall Performance - Market performance: From November 3rd to 7th, stock ETFs showed mixed performance. Hong Kong dividend ETFs and Hong Kong - themed ETFs (mainly central and state - owned enterprise themes) led the gains, with an average increase of 3.62% and 3.51% respectively for funds above a certain scale. Conversely, Hong Kong and A - share pharmaceutical and biological ETFs led the losses, with an average decline of 3.37% and 3.17% respectively for funds above a certain scale [2][5] - Capital flow: Capital flowed significantly into Hong Kong TMT ETFs, with a net inflow of 9.65 billion yuan for the whole week. In contrast, A - share large - cap ETFs saw a significant net outflow of 12.264 billion yuan [3][9] 3.2 Different Popular Sub - type ETF Fund Market Performance - A - share ETFs: Include various types such as broad - based index (full - market, large - cap/super - large - cap, small - and mid - cap, science and innovation/growth enterprise board), industry (TMT, mid - stream manufacturing, consumption, pharmaceutical and biological, cycle, financial real estate), SmartBeta (value, growth, dividend, free cash flow), and theme. Each type has different fund performance in terms of weekly capital flow, weekly return, recent 1 - month return, and year - to - date return [15][19][25] - Hong Kong ETFs: Include broad - based index, industry (TMT, mid - stream manufacturing, consumption, pharmaceutical and biological, financial real estate), SmartBeta (dividend), and theme. Similar to A - share ETFs, they also have different performance indicators [30][31][34] - Shanghai - Hong Kong - Shenzhen ETFs: Include industry and theme types, with corresponding performance data [35][36] - US ETFs: Include broad - based index and industry types, showing different performance [37][38] - Other QDII - ETFs (excluding Hong Kong and US): Have different performance in terms of capital flow and return [39] - Bond ETFs and commodity ETFs: Also have their own performance characteristics [40][41] 3.3 Innovative Themes and Sub - industry ETF Fund Market Performance - TMT innovation themes: Different themes such as film and television, semiconductor chips, 5G communication, etc. have different weekly and year - to - date returns [43] - Consumption sub - industries: Include national grain, tourism, animal husbandry and breeding, etc., with corresponding performance [44] - Pharmaceutical sub - industries: Such as traditional Chinese medicine, medical care, medical devices, etc., have different performance [45] - New energy themes: Include photovoltaic industry, new energy, low - carbon economy, etc., showing different returns [46] - Central and state - owned enterprise themes: Different themes like inland state - owned enterprises, central enterprise modern energy, etc. have corresponding performance [47] - Steady - growth themes: Include coal, steel, chemical industry, etc., with different weekly and year - to - date returns [48] - Shanghai - Hong Kong - Shenzhen/Hong Kong Connect sub - industries: Such as Hong Kong securities, Hong Kong Connect consumption, etc., have different performance [49] - Dividend/dividend low - volatility index family: Different indices have different performance [50] - Science and innovation/growth enterprise board index family: Include dual - innovation 50, growth enterprise board growth, etc., with corresponding performance [51]

Investment Rating - The report maintains a "Recommended" rating for the automotive industry, indicating a positive outlook for the sector's fundamentals and expectations for the industry index to outperform the benchmark index [3][8]. Core Insights - The Tesla 2025 shareholder meeting successfully approved Elon Musk's 2025 compensation plan with over 75% support, aligning with expectations [2] - The proposal for investment in XAI was not directly approved, but it is currently outside the market trading scope [2] - Business line descriptions remained consistent with previous earnings call statements, meeting expectations [2] - Key future milestones to watch include the progress of FSD V14, penetration rate improvements, and developments in robotaxi [2] Industry Overview - The automotive industry comprises 265 stocks, with a total market capitalization of 4,739.6 billion and a circulating market capitalization of 4,094.2 billion [3] - The absolute performance over 1 month, 6 months, and 12 months shows a decline of 3.5%, an increase of 30.5%, and an increase of 44.0%, respectively [5] - Relative performance indicates a decline of 4.6% over 1 month, an increase of 7.3% over 6 months, and an increase of 27.3% over 12 months [5]

Investment Rating - The report maintains a "Recommended" rating for the industry, indicating a positive outlook for the sector's fundamentals and expected performance exceeding the benchmark index [5]. Core Insights - The company reported a revenue of $635 million for Q3 2025, reflecting a year-on-year increase of 20.7% and a quarter-on-quarter increase of 12.2%, surpassing the guidance midpoint [1][28]. - Gross margin for Q3 2025 was 13.5%, exceeding the upper limit of the guidance range, driven by increased capacity utilization and average selling price (ASP) improvements [1][29]. - The company expects Q4 2025 revenue to be between $650 million and $660 million, with a year-on-year growth forecast of 21.5% [3][36]. - The semiconductor market is anticipated to continue growing into 2026, with expectations of improved pricing and market conditions compared to 2025 [3][47]. Summary by Sections Financial Performance - Q3 2025 revenue reached $635 million, a historical high, with a gross margin of 13.5%, up 1.3 percentage points year-on-year [29]. - Net profit attributable to shareholders was $25.7 million, down 42.6% year-on-year but up 223.5% quarter-on-quarter [30]. - Operating expenses were $100.4 million, reflecting a 23.3% increase year-on-year due to rising wafer costs and depreciation [29]. Capacity and Production - The company’s 8-inch wafer capacity was 468,000 pieces per month, with a utilization rate of 109.5% [1][29]. - The company is expanding its production capacity, with plans to increase Fab 9A's capacity to approximately 65,000 pieces per month by mid-next year [3][46]. Market Demand and Product Segments - Embedded non-volatile memory platform revenue was $160 million, up 20.4% year-on-year, driven by increased demand for microcontrollers (MCUs) [2][32]. - Power discrete devices revenue was $169 million, reflecting a 3.5% year-on-year increase, primarily due to demand for super junction products [2][32]. - The company is focusing on enhancing its product mix, particularly in NOR Flash and power management platforms, to improve overall profitability [40][48]. Strategic Initiatives - The company is progressing with an acquisition expected to add $600 million to $700 million in revenue, with the deal anticipated to close by August next year [3][53]. - The company is actively pursuing strategic capacity planning and technology advancements to strengthen its competitive position in the semiconductor industry [28][40].

Investment Rating - The report maintains an "Accumulate" investment rating for the company [4]. Core Views - The company experienced a decline in performance in Q3 2025, but the domestic trade peak season in Q4 is expected to drive a recovery in profitability [1]. - The foreign trade sector remains robust, with significant improvements in profitability due to high rental rates for container ships and an increase in the number of chartered vessels [2]. - The company is expected to maintain a high dividend payout ratio, indicating strong long-term investment value [7]. Financial Performance Summary - For the first three quarters of 2025, the company's revenue reached 7.9 billion yuan, a year-on-year decrease of 6.5%, while net profit attributable to shareholders was 1.41 billion yuan, an increase of 27.2% [1]. - Q3 revenue was 2.56 billion yuan, down 5.3% year-on-year, with a net profit of 340 million yuan, down 3.7% year-on-year and 35.4% quarter-on-quarter [1]. - The gross profit margin for the first three quarters of 2025 improved to 22.3%, an increase of 9 percentage points year-on-year [2]. Future Earnings Forecast - The company’s earnings for 2025-2027 are projected to be 1.967 billion yuan, 2.028 billion yuan, and 1.931 billion yuan respectively, with a slight downward adjustment for 2025 due to Q3 performance but an upward adjustment for 2026-2027 [7]. - The expected earnings per share (EPS) for 2025 is 0.94 yuan, with a price-to-earnings (PE) ratio of 11.8 [3][16]. Market Position and Shareholder Information - The company has a total market capitalization of 23.2 billion yuan, with a significant shareholder, Zhonggu Logistics Group, holding 57.46% of the shares [4]. - The company’s return on equity (ROE) stands at 21.6%, indicating strong profitability relative to shareholder equity [4].

Quantitative Models and Construction Model Name: Market Size Factor Model - **Construction Idea**: The model analyzes the performance of market size factors under different monetary policy cycles, focusing on the advantage of small-cap stocks during a loose monetary environment [9][11][68] - **Construction Process**: 1. Define monetary policy cycles based on the trends of 1-year and 10-year government bond yields. If both yields decline simultaneously, it indicates a loose monetary policy period; if both rise, it indicates a tight monetary policy period. Contradictory signals are ignored, and the previous period's judgment is retained [9]. 2. Divide market size factors into deciles and calculate the long-short net value performance under loose and tight monetary cycles [9][15]. 3. Empirical results show that during loose monetary cycles, the net value of small-cap portfolios outperforms large-cap portfolios, while the opposite is true during tight monetary cycles [9][15]. - **Evaluation**: The model effectively captures the relationship between monetary policy cycles and market size factor performance, highlighting the advantage of small-cap stocks in a loose monetary environment [9][11][68]. --- Quantitative Factors and Construction Factor Name: "Specialized, Refined, Distinctive, and Innovative" (专精特新) Factor - **Construction Idea**: The factor identifies small and medium-sized enterprises with significant competitive advantages in niche markets, characterized by high innovation and quality [12][16][69]. - **Construction Process**: 1. Select companies listed on the Beijing Stock Exchange (BSE) with high proportions of high-tech enterprises and strategic emerging industries [12][16]. 2. Focus on companies categorized as "national-level specialized, refined, distinctive, and innovative small giants" [12][16]. 3. Analyze industry distribution, emphasizing sectors like advanced manufacturing, green energy, and digital economy [12][16][69]. - **Evaluation**: The factor aligns closely with national policies supporting high-quality SMEs, reflecting strong growth potential and policy-driven advantages [12][16][69]. --- Backtesting Results of Models and Factors Market Size Factor Model - **Annualized Return**: Small-cap portfolios outperform large-cap portfolios during loose monetary cycles [9][15]. - **Performance Trend**: Net value of small-cap portfolios shows a steady upward trend under loose monetary conditions [9][15]. "Specialized, Refined, Distinctive, and Innovative" Factor - **Proportion in BSE 50 Index**: Approximately 66% of the BSE 50 Index constituents are categorized as "specialized, refined, distinctive, and innovative" enterprises, significantly higher than other indices [32][69]. - **Sector Concentration**: The factor is highly concentrated in industries like machinery, chemicals, and computing, accounting for nearly 60% of the index weight [29][30][69]. --- Performance Metrics of Related Funds Fund Name: 中加专精特新量化选股A - **Annualized Return (2025)**: 75.56% [56][57]. - **Maximum Drawdown (2025)**: 12.77%, lower than the average of similar funds (15.38%) [56][57]. - **Recovery Days**: 18 days [56][57]. Fund Name: 中加中证A500指数增强A - **Annualized Return (2025)**: 33.50%, higher than the average of similar funds (23.88%) [64][67]. - **Maximum Drawdown**: 11.45%, better than the benchmark index (11.89%) [67]. - **Performance Ranking**: Ranked 14th among 68 similar funds [64][67]. Fund Name: 中加中证500指数增强A - **Annualized Return (2024-2025)**: 33.84%, exceeding the benchmark index by 5.70% [63]. - **Maximum Drawdown**: 11.60%, lower than the benchmark index (16.48%) [63]. - **Sharpe Ratio**: 1.64, higher than the benchmark index (1.30) [63]. - **Calmar Ratio**: 2.94, outperforming the benchmark index (2.00) [63].

Investment Rating - The report maintains a "Buy" rating for the company [1][4]. Core Views - The company is expected to experience steady growth in its operations, with a more diverse and comprehensive product matrix. As the industrial automation sector recovers, the company is likely to return to a faster growth trajectory [1]. - The company is increasing its investment in the robotics sector, enhancing its self-developed components and core products, which may lead to breakthroughs in this area [1]. - The long-term operational outlook for the company's main business is positive, with a focus on the progress in the robotics field [1]. Financial Data and Valuation - Total revenue is projected to grow from 1,505 million yuan in 2023 to 2,641 million yuan in 2027, with year-on-year growth rates of 13%, 14%, 11%, 18%, and 18% respectively [3][19]. - Operating profit is expected to increase from 219 million yuan in 2023 to 399 million yuan in 2027, with a notable growth of 30% in 2026 [3][19]. - Net profit attributable to the parent company is forecasted to rise from 199 million yuan in 2023 to 370 million yuan in 2027, with a significant increase of 30% in 2026 [3][19]. - Earnings per share (EPS) are anticipated to grow from 1.27 yuan in 2023 to 2.35 yuan in 2027 [3][19]. - The company’s price-to-earnings (PE) ratio is projected to decrease from 48.4 in 2023 to 26.1 in 2027, indicating potential valuation improvement [3][19]. Business Performance - The company reported a revenue of 1.38 billion yuan in the first three quarters of 2025, reflecting a year-on-year increase of 14.16% [7]. - The company has a leading position in the domestic small PLC market, with an 8% market share as of the first half of 2025 [7]. - The company is enhancing its servo and variable frequency drive businesses while expanding into visual and robotics sectors, which is expected to strengthen its competitive edge [7]. Shareholder Information - The major shareholder, Li Xin, holds a 31.21% stake in the company [4].