Investment Rating - The investment rating for China Pacific Insurance (601601) is "Buy" (maintained) [5] Core Views - China Pacific Insurance, as the only listed insurance company backed by the Shanghai State-owned Assets Supervision and Administration Commission, is expected to benefit from its deepening transformation and forward-looking layout in the Web3 sector, potentially leading to a dual boost in performance and valuation [1] - The strategic importance of the insurance industry is increasing, with significant expectations for China Pacific Insurance's transformation in life insurance and support from the Shanghai State-owned Assets [2] - The company is positioned to experience strong growth in new business value (NBV) due to its ongoing transformation initiatives and strategic support from its major shareholder [3] - The forward-looking layout in the Web3 sector is anticipated to drive valuation increases for China Pacific Insurance [4] Summary by Relevant Sections Super Expectation Points - The strategic importance of the insurance industry has been recognized, with the release of new policies promoting high-quality transformation [2] - The risk of interest spread losses is easing, with a continuous reduction in liability costs and an expected increase in investment returns from the equity market [3] - The implementation of the "North Star Plan" is expected to significantly boost NBV, with a notable increase in the agent workforce and a substantial rise in NBV from the bancassurance channel [3] - The strategic support from the Shanghai State-owned Assets is crucial for the company's high-quality development [3] - China Pacific Insurance's proactive engagement in the Web3 sector is expected to enhance its market position [4] Financial Forecasts - Projected net profit growth rates for 2025E-2027E are 6.2%, 21.2%, and 29.4% respectively, with corresponding PEV ratios of 0.77x, 0.71x, and 0.65x [9] - The target price based on a 0.9x PEV for 2026 is set at ¥60.85, indicating a potential upside of 27% [11] Financial Summary - For 2025E, the expected operating revenue is ¥419,626 million, with a net profit of ¥47,769 million [11] - The company is expected to maintain a strong performance with a significant increase in NBV and investment income [11]

Investment Rating - The industry investment rating is "Positive (Maintained)" [5] Core Insights - In 2025, the gross profit margin of quality real estate companies is expected to show slight recovery, continuing into 2027. This is based on the observation that most projects recognized in 2025 were acquired around 2023, with a less competitive land auction market in 2023 allowing financially strong companies to acquire high-margin land reserves. The "Good House" policy in 2025 is anticipated to further improve the profit margins of high-quality projects [1] - The inventory still faces impairment pressure, with the cumulative decline in housing prices in 50 key cities expected to reach approximately 14% in 2025, an increase of about 1.4 percentage points compared to 2024. The difficulty in selling older inventory may increase due to product iteration trends, and the performance of second-hand housing prices is expected to be below expectations. This could lead to increased inventory impairment pressure for real estate companies [2] - The first half of 2026 is expected to see weak beta for the real estate industry due to strong short-term policy stability and continued weak demand. The second half of 2026 will depend on whether there is further clearing on the supply side, which could positively signal policy release and market confidence recovery. Specific companies such as Jianfa Co., Ltd., Binjiang Group, and China Resources Land are highlighted as potential investment opportunities due to their unique alpha characteristics [3] Summary by Sections - **2025 Core Profit Influencing Factors**: Quality real estate companies are expected to see a recovery in gross profit margins starting in the first half of 2025, driven by favorable land acquisition conditions and supportive policies [1] - **Inventory Impairment Pressure**: The decline in housing prices and challenges in selling older inventory are expected to increase impairment pressure for real estate companies in 2025 [2] - **Investment Recommendations**: The report suggests focusing on companies with positive operational improvements and strategic project locations, while monitoring market conditions in the second half of 2026 [3]

Market Overview - On January 7, the Shanghai Composite Index rose by 0.05%, while the CSI 300 fell by 0.29%. The Sci-Tech 50 increased by 0.99%, the CSI 1000 rose by 0.53%, and the ChiNext Index went up by 0.31%. The Hang Seng Index decreased by 0.94% [4][5]. - The best-performing sectors on January 7 were comprehensive (+3.86%), coal (+2.47%), electronics (+1.25%), communication (+1.24%), and power equipment (+0.62%). The worst-performing sectors included oil and petrochemicals (-1.73%), non-bank financials (-1.13%), beauty and personal care (-1.03%), computers (-0.81%), and banks (-0.72%) [4][5]. - The total trading volume for the entire A-share market on January 7 was 28,815.66 billion yuan, with net inflow from southbound funds amounting to 9.178 billion Hong Kong dollars [4][5]. Important Recommendations - The report highlights Zhenyou Technology (688418) as a key player in satellite internet, positioned as the "central brain" of the industry. The company is expected to benefit from the acceleration of low-orbit satellite internet deployment and overseas business expansion, which could drive performance beyond expectations [6]. - The revenue forecast for Zhenyou Technology from 2025 to 2027 is projected to be 1,010 million yuan, 1,479 million yuan, and 1,975 million yuan, respectively, with growth rates of 6.17%, 46.35%, and 33.53%. The net profit attributable to the parent company is expected to be 19 million yuan, 182 million yuan, and 346 million yuan, with growth rates of -30.82%, 857.42%, and 90.52% [6]. - The company’s earnings per share are forecasted to be 0.10 yuan, 0.94 yuan, and 1.80 yuan for the years 2025, 2026, and 2027, respectively, with price-to-earnings ratios of 441.34, 46.08, and 24.18 [6]. Important Insights - The report discusses public REITs as an investment tool characterized by "high dividends + anti-inflation + asset growth." They provide a unique combination of stable income and potential asset appreciation, making them an ideal "fixed income +" solution to address the current "asset shortage" [7][8]. - The report notes that the public REITs market is moving towards normalization in its expansion mechanism, with an expectation of increased capital inflow. It highlights that certain asset classes, such as consumer infrastructure, affordable rental housing, and warehousing logistics, show relatively high investment value [7][8]. - The report suggests a "barbell" investment strategy and a "high dividend yield" tactic to enhance returns, focusing on sectors with economic resilience and stable dividends, such as infrastructure and affordable housing, while also considering long-duration quality assets like premium data centers [8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Insights - The company achieved a record high in overall package volume in 2025, reaching 30.13 billion packages, a year-on-year increase of 22.2% [2] - The Southeast Asian market showed strong performance with a package volume of 7.66 billion in 2025, up 67.8% year-on-year, capturing a market share of 32.8% [2] - New markets, including Saudi Arabia, UAE, Mexico, Brazil, and Egypt, also demonstrated significant growth, with a package volume of 400 million in 2025, a 43.6% increase year-on-year [2] Summary by Relevant Sections Overall Package Volume - In Q4 2025, the company achieved a total package volume of 8.46 billion, a 14.5% increase year-on-year, with an average daily volume of 92 million packages [1] - The total package volume for 2025 was 30.13 billion, with an average daily volume of 82.5 million packages, reflecting a 22.6% year-on-year growth [2] Southeast Asia Market - In Q4 2025, the company recorded a package volume of 2.44 billion in Southeast Asia, a remarkable 73.6% increase year-on-year, with an average daily volume of 26.5 million packages [1] - The company maintained its leading market share in Southeast Asia for six consecutive years, with a 5.4 percentage point increase from the previous year [2] New Markets - The new markets achieved a package volume of 130 million in Q4 2025, a 79.7% increase year-on-year, with an average daily volume of 1.45 million packages [1] - The company is actively expanding its presence in new markets, leveraging partnerships with e-commerce platforms like TikTok and Mercado Libre [1] Financial Forecasts - The adjusted net profit for 2025-2027 is projected to be $400 million, $710 million, and $990 million, respectively, with corresponding P/E ratios of 33.1x, 18.8x, and 13.5x [10] - Revenue is expected to grow from $10.26 billion in 2024 to $17.39 billion in 2027, reflecting a compound annual growth rate of approximately 16% [12]

Quantitative Models and Construction Methods - **Model Name**: Monte Carlo Backtesting **Model Construction Idea**: Shift from historical path fitting to future robustness testing by generating multiple random paths to evaluate strategy performance across diverse scenarios [1][10] **Model Construction Process**: 1. Generate thousands of random price paths that follow historical statistical characteristics (e.g., return distribution, volatility, correlation) but differ from the original historical path [10] 2. Perform stress tests on strategies across these simulated paths to observe performance under various market conditions [10] 3. Calculate risk metrics such as Sharpe ratio, maximum drawdown, and value-at-risk (VaR) based on the distribution of strategy returns [10] **Model Evaluation**: Effectively reduces overfitting to specific historical paths and provides a more comprehensive robustness assessment [10][46] - **Model Name**: Non-Parametric Monte Carlo Simulation **Model Construction Idea**: Use historical data directly without assuming any parametric distribution, preserving cross-sectional correlation [2][13] **Model Construction Process**: 1. **Method 1**: Multi-Asset Time-Series Return Joint Rearrangement - Extract daily returns of all assets as a "data block" - Randomly sample and sequentially concatenate these blocks to form simulated paths [18] 2. **Method 2**: Multi-Asset Time-Series Return Block Bootstrap - Divide historical returns into fixed-length overlapping/non-overlapping blocks - Randomly sample blocks and concatenate them to form simulated paths [19] **Model Evaluation**: Preserves cross-sectional correlation but disrupts time-series structures like volatility clustering and autocorrelation [14][20] - **Model Name**: Residual Bootstrap (Factor Model-Based) **Model Construction Idea**: Separate systematic risk and idiosyncratic risk using factor models, then randomize residuals for simulation [2][23] **Model Construction Process**: 1. Construct risk factors (e.g., market, size, value, momentum) and calculate historical daily returns [23] 2. Perform cross-sectional regression to estimate factor exposures (β) and extract residual returns [23] 3. Randomly shuffle residuals while preserving cross-sectional correlation [23] 4. Reconstruct paths using historical factor returns and randomized residuals [23] **Model Evaluation**: Useful for analyzing alpha and risk exposure but limited by the explanatory power of the factor model [24][25] - **Model Name**: Geometric Brownian Motion (GBM) Simulation **Model Construction Idea**: Assume asset returns follow a normal distribution and simulate paths using drift and volatility parameters [2][28] **Model Construction Process**: $$d S_{i}(t)=\mu_{i}S_{i}(t)d t+\sigma_{i}S_{i}(t)d W_{i}(t),i=1,\ldots,n$$ - \( \mu_{i} \): Drift rate (expected return) - \( \sigma_{i} \): Volatility - \( W_{i}(t) \): Standard Brownian motion Discretized path: $$S_{i}^{(j)}(t_{k})=X_{i}(0)\,e x p[(\,k\Delta t+\sum_{l=1}^{k}\sum_{p=1}^{n}L_{i p}Z_{l,p}^{(j)}\,]$$ - \( L \): Cholesky decomposition of covariance matrix - \( Z_{l,p}^{(j)} \): Independent standard normal random variables [28] **Model Evaluation**: Accurately replicates volatility and correlation but fails to capture tail risks and price jumps [28][47] Model Backtesting Results - **Monte Carlo Backtesting**: - Historical price path Sharpe ratio: 0.96 (25-day window) - Simulated path Sharpe ratio: 0.19 (25-day window, GBM method) [45][46] - **Non-Parametric Monte Carlo Simulation**: - Historical price path Sharpe ratio: 0.96 (25-day window) - Simulated path Sharpe ratio: 0.22 (15-day window, joint rearrangement method) [45][46] - **Residual Bootstrap**: - Historical price path Sharpe ratio: 0.96 (25-day window) - Simulated path Sharpe ratio: 0.19 (25-day window) [45][46] - **Geometric Brownian Motion (GBM)**: - Historical price path Sharpe ratio: 0.96 (25-day window) - Simulated path Sharpe ratio: 0.19 (25-day window) [45][46] Quantitative Factors and Construction Methods - **Factor Name**: Momentum and Volatility Dual Factor **Factor Construction Idea**: Combine momentum and volatility factors using Z-score normalization and equal weighting [35] **Factor Construction Process**: $$S c o r e_{i}=0.5*Z S c o r e_{i,m o m}+0.5*Z S c o r e_{i,v o l}$$ - Momentum and volatility calculated over different window lengths (N ∈ [15, 20, 40]) [35] **Factor Evaluation**: Provides a balanced scoring mechanism for style rotation strategies [35][37] Factor Backtesting Results - **Momentum and Volatility Dual Factor**: - Historical price path cumulative return: 535% (25-day window) - Simulated path cumulative return: 62.25% (15-day window, GBM method) [38][42]

Market Overview - On January 6, the Shanghai Composite Index rose by 1.5%, the CSI 300 increased by 1.55%, the STAR 50 climbed by 1.84%, the CSI 1000 went up by 1.43%, the ChiNext Index gained 0.75%, and the Hang Seng Index rose by 1.38% [4] - The best-performing sectors on January 6 were non-ferrous metals (+4.26%), non-bank financials (+3.73%), basic chemicals (+3.12%), defense and military industry (+3.08%), and comprehensive sector (+2.89%). The worst-performing sector was telecommunications (-0.77%) [4] - The total trading volume for the A-share market on January 6 was 28,323 billion, with a net inflow of 2.879 billion Hong Kong dollars from southbound funds [4] Key Insights - The macroeconomic report highlighted two core viewpoints: asset replacement in reserves and a focus on basic and rare metals as a main theme [5] - The geopolitical environment is exceeding expectations, and a potential easing of US-China tensions could lead to a reassessment of national security demands. Additionally, rapid advancements in AI technology may boost global growth and alleviate debt and geopolitical pressures [6] - In the bond market, the current pricing framework for floating-rate bonds is more closely linked to the DR007 benchmark rate. The investment value of floating-rate bonds is expected to improve, considering the narrowing of the short-term interest rate corridor and changes in the yield curve [7] Industry Commentary - The 2025 box office data released by the film bureau showed a total box office of 51.832 billion and 1.238 billion viewers, both exceeding a 20% increase compared to the previous year [10] - The Spring Festival box office set a record for the same period, and the summer box office showed steady growth compared to last year. Several imported blockbusters performed better than expected towards the end of the year, with top films, especially animated ones, dominating the market [10] - Investment opportunities are suggested in companies like Wanda Film, Bona Film, China Film, Shanghai Film, Happy Blue Ocean, Maoyan Entertainment (Hong Kong), and Damai Entertainment (Hong Kong) for the 2026 Spring Festival [10]

- The macro scoring model is optimistic about Chinese bonds, US stocks, copper, and crude oil[24] - The US stock timing model indicates a potential strengthening of US stocks driven by an upward revision in rate cut expectations[25] - The gold timing model remains positive on gold, with the latest indicator value at -0.51, slightly improved from the previous month[27] - The crude oil timing model maintains a cautious view, with the latest crude oil sentiment index reading at -0.05, remaining below the zero axis[33] - The macro scoring model's latest view shows an improvement in the outlook for US stocks, Chinese bonds, copper, and crude oil[24][26] - The US stock timing model's latest mid-term timing indicator for US stocks is 72.9, showing a slight improvement from the previous month[25][29] - The gold timing model's latest indicator value is -0.51, with the sub-indicators showing weakness mainly due to the significant contraction in US fiscal efforts[27][30] - The crude oil timing model's latest crude oil sentiment index reading is -0.05, indicating a continued cautious outlook[33][34] - The macro scoring model's latest view shows an improvement in the outlook for US stocks, Chinese bonds, copper, and crude oil[24][26] - The US stock timing model's latest mid-term timing indicator for US stocks is 72.9, showing a slight improvement from the previous month[25][29] - The gold timing model's latest indicator value is -0.51, with the sub-indicators showing weakness mainly due to the significant contraction in US fiscal efforts[27][30] - The crude oil timing model's latest crude oil sentiment index reading is -0.05, indicating a continued cautious outlook[33][34]

Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Insights - The company is a leading supplier of single crystal silicon materials for integrated circuit etching, holding approximately 15% of the global market share. It is expected to benefit from the overall supply chain improvement driven by the storage industry's growth cycle, leading to potentially exceeding performance expectations [1][2] - The company has established a strong position in the semiconductor materials sector since its inception in 2013, with a product matrix that includes large diameter etching silicon materials, silicon components, and large-size silicon wafers. Its integrated R&D and production capabilities provide a sustainable competitive advantage [2] - The demand for large diameter silicon materials is expected to rise due to increased utilization in storage chip manufacturing, particularly as the global tech giants ramp up capital expenditures for computing centers. This trend is anticipated to create structural shortages in storage chip capacity [3] - The company has a stable export market for its large diameter silicon materials, with products already integrated into major domestic etching equipment manufacturers and wafer fabs. Its product range covers 14-inch to 22-inch specifications, catering to a broad customer base across key semiconductor regions [4] Financial Projections - Revenue forecasts for the company from 2025 to 2027 are projected at 450 million, 800 million, and 1.32 billion yuan, representing year-on-year growth rates of 47.2%, 78.5%, and 65.3% respectively. Net profit is expected to reach 100 million, 260 million, and 440 million yuan, with growth rates of 152.9%, 152.8%, and 68.4% respectively [12][14] - The estimated P/E ratios based on the closing price as of January 6, 2026, are 120.9, 47.8, and 28.4 for the years 2025, 2026, and 2027 respectively [12]

1. Report Industry Investment Rating No industry investment rating information is provided in the report. 2. Core Viewpoints of the Report - Publicly - offered REITs have the characteristics of "high dividends + inflation resistance + asset growth". With the "bond floor" of mandatory dividends and the "equity wing" of asset appreciation, they provide a scarce tool for enhancing returns and hedging risks, and are ideal "fixed - income +" tools to solve the current "asset shortage" [1][39]. - Through the differentiation of income sources, publicly - offered REITs effectively diversify portfolio risks. The market is still in its early stage of development, with broad space for asset expansion, category innovation, and platform growth, and has long - term strategic allocation value [39]. 3. Summary According to the Directory 3.1 REITs Definition and Market Overview - Publicly - offered REITs are standardized financial products that pool the funds of multiple investors by issuing income certificates, hold the ownership or management rights of real estate assets in the structure of "public fund + asset - backed securities", and are publicly traded on stock exchanges. Their multi - layer structure effectively achieves the key goals of risk isolation, tax neutrality, and public offering [2][17]. - As of December 2025, the total market value of China's publicly - offered REITs market was nearly 220 billion yuan, with 79 listed products. The market has shown a continuous expansion trend, and the asset types have gradually diversified [3][24]. - The market investors of publicly - offered REITs include strategic investors, offline investors, and public investors. General legal persons are the largest holders, accounting for 59.09%, followed by securities firms' proprietary trading with a 19.42% share [2][37]. 3.2 Reasons to Focus on Publicly - offered REITs - Solving the "asset shortage" as a "fixed - income +" tool: In the low - interest - rate environment, REITs offer a more attractive asset option, with higher initial distribution yields than traditional bonds. From early 2024 to the end of 2025, the cumulative increase of the CSI REITs Total Return Index was 18.82%, providing higher returns than pure - bond assets and having anti - decline and defensive properties [4][40]. - Dual income sources: Publicly - offered REITs achieve an optimized income structure through the compound model of "bottom - position dividends + potential growth", combining the stability of bonds and the growth potential of stocks. Regulatory requirements mandate that over 90% of distributable amounts be used for dividends, and asset value growth gives them "equity" potential [5][42]. - Huge expansion potential and innovation space: The expansion mechanism is becoming more normalized, and the entry of incremental funds is expected. The market has broad growth prospects, and new products such as REITs ETFs are being explored [6][46]. 3.3 Core Differences between REITs and Bonds - Legal relationship: REITs investors are shareholders, with a residual claim on the underlying real estate assets and operating cash flows. Bond investors are creditors, with a clear contractual relationship with the issuer [49][50]. - Income source: REITs' investment returns are mainly driven by operating dividends, with capital gains reflecting asset valuation changes. Bond returns mainly come from contractual coupon income, and secondary - market price differences reflect interest rate and credit spread changes [51]. - Risk characteristics: REITs face operating and market risks, while bonds are mainly affected by interest rate and credit risks [52][53]. - Report perspective: REITs focus on the sustainability of asset - operating cash flows, while bonds focus on the issuer's solvency and credit safety margin [55]. 3.4 Asset Type "Atlas" of China's Publicly - offered REITs - The underlying assets can be divided into two categories: property rights and franchise rights. The market shows a pattern of dominance by leading assets and insufficient supply at the tail end. The top three in terms of market - value proportion are transportation infrastructure, consumer infrastructure, and park infrastructure, which together account for 59.56% of the total market scale [9]. - Key points of different underlying assets: Transportation assets emphasize policies and location; consumer assets focus on the economic cycle and operation; park assets depend on industries and the ecological environment; warehousing and logistics rely on location and leases; energy infrastructure is related to policies and technology; and affordable rental housing needs to balance policies and people's livelihoods [9]. 3.5 Investment Strategies - REITs market performance is differentiated. Consumer infrastructure, affordable rental housing, and warehousing and logistics REITs show relatively high investment value. Consumer infrastructure REITs have an average increase of 32.48% since their establishment, with strong cash - flow stability and growth elasticity [10][68]. - An investment strategy of "dumbbell - shaped" allocation and "high - dividend - yield" tactics can be adopted. In the short term, focus on "defensive and stable" sectors, and gradually make left - hand side investments in "long - duration high - quality assets" [10][69].

Market Overview - On January 5, the Shanghai Composite Index rose by 1.38%, the CSI 300 increased by 1.9%, the STAR 50 surged by 4.41%, the CSI 1000 climbed by 2.09%, the ChiNext Index went up by 2.85%, and the Hang Seng Index slightly increased by 0.03% [4][5] - The best-performing sectors on January 5 were Media (+4.12%), Pharmaceutical and Biological (+3.85%), Electronics (+3.69%), Non-Bank Financials (+3.14%), and Computers (+2.71%). The worst-performing sectors included Oil and Petrochemicals (-1.29%), Banks (-0.34%), Transportation (-0.3%), and Retail (-0.17%) [5] - The total trading volume for the A-share market on January 5 was 25,672 billion, with a net inflow of 18.723 billion HKD from southbound funds [5] Key Insights - The semiconductor equipment sector is expected to see a significant increase in capital expenditure and an acceleration in domestic production rates, leading to a positive outlook for orders in the semiconductor equipment segment [6][7] - Four major growth directions are highlighted: 1. AI-driven storage supercycle focusing on etching and thin-film equipment leaders 2. Dawn of domestic photolithography machine production, emphasizing core subsystems and components 3. Evolution of cutting-edge technologies, with ALD equipment entering a golden development period 4. Advanced packaging continuing the Moore's Law, with substantial room for equipment localization [7] - The driving factors include accelerated capital expenditure from domestic wafer fabs and higher-than-expected domestic production rates [7] Investment Opportunities - The year 2026 is anticipated to be a pivotal year for AI applications, marking the beginning of a significant growth phase in the sector [8] - The convergence of application, computing power, and capital is expected to trigger a "flywheel" effect in embodied intelligence [8]