Market Overview - On August 4, the Shanghai Composite Index rose by 0.66%, the CSI 300 increased by 0.39%, the STAR Market 50 climbed by 1.22%, the CSI 1000 went up by 1.04%, the ChiNext Index gained 0.5%, and the Hang Seng Index increased by 0.92% [3] - The best-performing sectors on August 4 were defense and military (+3.06%), machinery equipment (+1.93%), non-ferrous metals (+1.87%), textiles and apparel (+1.37%), and media (+1.28%). The worst-performing sectors were retail (-0.46%), oil and petrochemicals (-0.36%), social services (-0.21%), comprehensive (-0.13%), and building materials (-0.06%) [3] - The total trading volume for the A-share market on August 4 was 15,182 billion yuan, with a net outflow of 18.092 billion Hong Kong dollars from southbound funds [3] Company Recommendation - The report focuses on Zhenlan Instrument (301303), a leading gas meter company in China, which is expanding into water meters and automotive parts, creating growth opportunities [4] - Key growth drivers include an increase in market share for gas meters, successful expansion of water meter clients, and ramp-up in automotive parts production [4] - Revenue projections for Zhenlan Instrument from 2025 to 2027 are 1,798 million yuan, 2,168 million yuan, and 2,597 million yuan, with growth rates of 19.8%, 20.6%, and 19.8% respectively. Net profit forecasts are 369 million yuan, 426 million yuan, and 493 million yuan, with growth rates of 15.0%, 15.4%, and 15.8% respectively. Earnings per share are expected to be 0.90 yuan, 1.04 yuan, and 1.20 yuan, with price-to-earnings ratios of 17.1, 14.8, and 12.8 [4] - Catalysts for growth include urban renewal policies and successful expansion into overseas markets [4]

Investment Rating - The industry investment rating is "Positive" [4] Core Insights - The AI industry is experiencing a continuous cycle of investment and growth, with significant capital expenditure (Capex) increases from major overseas cloud service providers (CSPs) such as Microsoft, Google, Meta, and Amazon, which collectively reached $96.1 billion in Q2 2025, a year-on-year increase of 66% [1] - The liquid cooling market is expected to double in size next year, with projections indicating it could exceed $100 billion by 2027, driven by the increasing power consumption of GPU and ASIC chips [2][6] Summary by Sections Section 1: Market Growth and Demand - The demand for liquid cooling solutions is accelerating due to the adoption of high-power chips like NVIDIA's GB200 and Meta's MTIA T-V1, which are designed for liquid cooling [1] - The organic order growth for Vertiv in Q2 2025 was 15% year-on-year, reflecting strong market demand, with a backlog of $8.5 billion [1] Section 2: Liquid Cooling Market Projections - The projected liquid cooling market sizes for 2025, 2026, and 2027 are approximately 35.4 billion, 71.6 billion, and 108.2 billion yuan respectively, indicating robust growth driven by both NVIDIA GPUs and cloud providers' ASIC chips [6] - The estimated liquid cooling value per rack is around $78,820, with the average value per chip being approximately $1,095 [7] Section 3: Key Players and Investment Opportunities - Companies such as Yingweike, Shenling Environment, and Kexin New Source are highlighted as key players in the liquid cooling market, with strategies focused on expanding overseas [10][11][12] - Yingweike is actively pursuing overseas markets and has been included in NVIDIA's ecosystem as a qualified vendor [11] - Shenling Environment is focusing on Southeast Asia for data center business expansion, particularly in AI computing centers [12] - Kexin New Source is entering the supply chain of major enterprises and is expected to enhance customer relationships and overseas market channels through acquisitions [13]

Investment Rating - The investment rating for the company is "Buy" [5] Core Insights - The company has entered a strategic partnership with JD Industrial to enhance its supply chain digitalization and expand its online channels [1] - The company is showing signs of a performance turnaround, with significant year-on-year growth in operating cash flow and revenue across major business lines for 2024 [1][2] - The company is advancing its humanoid robot product development and plans to implement an employee stock incentive plan, indicating potential for a significant business turnaround in 2025 [2][3] Summary by Relevant Sections Strategic Partnership - In April, the company signed a strategic cooperation agreement with JD Industrial to leverage various online resources for channel expansion [1] - JD Industrial will assist in self-operated warehousing, enhancing supply chain responsiveness and reducing logistics costs for the company [1] Financial Performance - In Q1 2025, the company achieved revenue of 0.89 billion yuan, a 7% increase year-on-year, and a net profit of 0.041 billion yuan, up 6% year-on-year [1] - The company secured a contract worth 3.895 million yuan for packaging equipment and services from Zhongshan Zhujiang Brewery [1] Revenue Growth by Business Lines - For 2024, the company expects revenue growth across major business lines: - Smart packaging production lines: 1.56 billion yuan, up 9% year-on-year - Standard single machine equipment: 1.30 billion yuan, up 21% year-on-year - Packaging materials: 0.37 billion yuan, up 31% year-on-year [2] Product Development and Incentives - The establishment of a wholly-owned subsidiary focused on humanoid robots marks the company's entry into this emerging market [2] - The proposed stock incentive plan aims to align employee interests with company performance, with revenue targets set for 2025-2027 [2][3] Earnings Forecast and Valuation - The company is projected to achieve revenues of 4.0 billion yuan in 2025, 4.5 billion yuan in 2026, and 5.1 billion yuan in 2027, with corresponding net profits of 0.14 billion yuan, 0.20 billion yuan, and 0.30 billion yuan [3] - The expected compound annual growth rate for net profit from 2024 to 2027 is 167%, with a price-to-earnings ratio of 37, 25, and 17 for the respective years [3]

Key Insights - The report highlights the recovery of the consumer electronics cycle and the expansion into new fields as key growth drivers for the company, which is recognized as a leader in 3C equipment [4][5] - The manufacturing sector is showing signs of improvement, with PMI figures gradually approaching the growth line, indicating a potential recovery in the manufacturing industry [4][5] - The company is actively expanding into emerging fields such as humanoid robots and low-altitude economy, which are expected to drive demand for general equipment [5] Company Summaries 1. Genesis (300083) - The company is positioned as a leader in the 3C equipment sector, with a focus on expanding its product matrix into various fields, including general equipment and humanoid robots [4] - Revenue projections for 2025-2027 are estimated at 5,244 million, 5,731 million, and 6,262 million CNY, with corresponding growth rates of 14%, 9%, and 9% [5] - Net profit forecasts for the same period are 404 million, 548 million, and 659 million CNY, with growth rates of 70%, 36%, and 20% [5] 2. Weishi Jiajie (00856) - The company is transitioning from traditional distribution to becoming a provider of intelligent solutions, driven by cloud computing and AI [6] - Revenue forecasts for 2025-2027 are 1,029.52 million, 1,184.25 million, and 1,349.97 million HKD, with growth rates of 15.57%, 15.03%, and 13.99% [6] - Net profit estimates for the same period are 11.91 million, 14.13 million, and 16.30 million HKD, with growth rates of 13.26%, 18.63%, and 15.35% [6] 3. Huaya Intelligent (003043) - The company is a leading supplier of precision metal structural components for semiconductor equipment and is expanding into solid-state battery equipment [7] - Revenue projections for 2025-2027 are 1,313 million, 1,571 million, and 1,794 million CNY, with growth rates of 109.3%, 19.6%, and 14.2% [7] - Net profit forecasts for the same period are 157 million, 188 million, and 211 million CNY, with growth rates of 94.9%, 19.7%, and 11.9% [7] Industry Insights - The macroeconomic analysis indicates that the manufacturing PMI has decreased to 49.3% in July, suggesting a weakening recovery momentum [8] - The overall market sentiment remains optimistic, with expectations of a "slow bull" market despite recent adjustments [9][10] - The bond market is experiencing a new normal characterized by slow declines and rapid increases, with investors advised to remain patient for further rate decline catalysts [11]

Investment Rating - The investment rating for Hikvision is maintained as "Buy" [3][11]. Core Views - The company has shown a significant improvement in profitability, with a focus on enhancing profit quality and leveraging AI models for long-term growth [10]. - The revenue for the first half of 2025 reached 41.818 billion yuan, a year-on-year increase of 1.48%, while the net profit attributable to shareholders was 5.657 billion yuan, up 11.71% year-on-year [8]. - The company is optimistic about revenue recovery in the second half of the year, driven by improved performance in its main business and innovative sectors [2][8]. Summary by Sections Financial Performance - In H1 2025, the gross profit margin was 45.19%, an increase of 0.35 percentage points compared to H1 2024 [3]. - The net profit margin for H1 2025 reached 13.5%, with Q2 2025 achieving a net profit margin of 15.5%, the highest since Q1 2024 [9]. - The operating cash flow for H1 2025 was 5.343 billion yuan, marking a significant improvement from the previous year [9]. Business Segments - The main business revenue showed signs of recovery, with domestic segments PBG, EBG, and SMBG generating revenues of 5.573 billion, 7.462 billion, and 4.067 billion yuan respectively in H1 2025 [8]. - The overseas business revenue increased by 6.9% year-on-year, contributing significantly to overall revenue growth [8]. - Innovative business lines, particularly in automotive electronics, robotics, and smart home sectors, saw revenue growth rates of 46.5%, 14.4%, and 12.4% respectively [8]. Future Outlook - The company is committed to embracing AI and has launched hundreds of AI model products, which are expected to drive long-term growth [10]. - The revenue forecast for 2025-2027 is adjusted to 95.031 billion, 100.889 billion, and 109.155 billion yuan respectively, with net profits projected at 13.219 billion, 14.702 billion, and 16.843 billion yuan [11].

Group 1: Report Industry Investment Rating No relevant content provided Group 2: Core Views of the Report - In August, the liability side of pure bonds is likely to stabilize, and the medium - to long - term upward trend of the equity market remains unchanged. The convertible bond market is expected to present a state of "coexistence of opportunities and risks". It is recommended to explore opportunities from three aspects: anti - involution, underlying stock elasticity, and dividend allocation [1][2][12] - In the past week, the equity market adjusted, and convertible bonds adjusted more significantly. The adjustment of the convertible bond market was partly driven by profit - taking of some funds, and the increased volatility of the pure bond market also led to instability in the liability side of convertible bonds [2][7] - In July, absolute - return funds partially took profits, while public funds and other institutions increased their holdings. The inflow of funds supported the valuation expansion of the convertible bond market in July [2][7] - The valuation expansion of convertible bonds in July reflected the inflow of funds and market recognition, and the option value of convertible bonds was re - priced during the continuous breakthrough of the equity market [2][7] - The hot market sentiment can be seen from the performance of new bonds. In July, 9 convertible bonds were listed, the highest number since 2025. The market efficiently digested the large - scale circulation of Guanghe Convertible Bonds, indicating high demand from investors for new bonds [2][7] Group 3: Summary According to the Directory 1. Convertible Bond Weekly Thinking - The equity market adjusted in the past week, with convertible bonds adjusting more. The Shanghai Composite Index dropped from 3600 to around 3550. The Wind Convertible Bond Equal - Weighted Index fell 0.92% last week, and the convertible bond underlying stock equal - weighted index fell 0.51% [2][7] - Absolute - return funds partially took profits in July, while public funds, fund special accounts, and securities asset management significantly increased their holdings of convertible bonds. The proportion of convertible bonds held by public funds, fund special accounts, and securities assets exceeded 40%, supporting the valuation expansion of the convertible bond market in July [2][7] - The valuation expansion of convertible bonds in July reflected the inflow of funds and market recognition, and the option value of convertible bonds was re - priced. The performance of new bonds also showed the hot market sentiment [2][7] - Looking ahead to August, the convertible bond market will face a relatively mild stock - bond market, presenting a state of "coexistence of opportunities and risks". It is recommended to focus on three aspects: anti - involution industries, underlying stocks with high growth volatility and low - premium convertible bonds, and low - volatility bottom - position convertible bonds for dividend asset allocation. The top ten convertible bonds recommended for August are Ran 23 Convertible Bond, Hongcheng Convertible Bond, etc. [2][12] 2. Convertible Bond Market Tracking 2.1 Convertible Bond Market Conditions - The table shows the performance of various convertible bond indexes in different time periods, such as the Wind Convertible Bond Energy Index, Wind Convertible Bond Material Index, etc. For example, the Wind Convertible Bond Energy Index was - 3.11 in the past week, 1.50 in the past two weeks, etc. [15] 2.2 Convertible Bond Individual Bonds No specific content provided other than the chart indication 2.3 Convertible Bond Valuation No specific content provided other than the chart indication 2.4 Convertible Bond Price No specific content provided other than the chart indication

Investment Rating - The industry investment rating is "Positive" [1] Core Viewpoints - Shenhua plans to acquire group assets, and coal prices are expected to rise in August. Domestic power plants maintain daily coal consumption, leading to continued price increases. The coal association has advocated for controlling production and improving quality, while the Central Financial Committee emphasized the need to regulate low-price competition and promote the orderly exit of backward production capacity. The coking coal sector may see marginal improvements in performance due to environmental factors affecting capacity utilization, with supply and demand gradually balancing in the second half of the year [6][42]. Summary by Sections Coal Market Performance - The coal sector declined, underperforming the CSI 300 index by 2.81 percentage points, with a drop of 4.56% as of August 1, 2025. Among 37 stocks, Chengzhi Co. had the smallest decline at 0.89% [2]. - Key monitored enterprises reported an average daily coal sales volume of 6.64 million tons from July 25 to July 31, 2025, a week-on-week decrease of 6.9% but a year-on-year increase of 0.1%. The total coal inventory was 28.87 million tons, down 5.5% week-on-week and up 15.1% year-on-year [2]. Price Trends - As of August 1, 2025, the price of thermal coal (Q5500K) in the Bohai Rim was 665 CNY/ton, up 0.15% week-on-week. The price of imported thermal coal was 763 CNY/ton, up 0.13% week-on-week. Prices at various ports, including Qinhuangdao and Huanghua, also saw increases [3]. - For coking coal, the main coking coal price at Jingtang Port was stable at 1,650 CNY/ton, while prices for metallurgical coke increased by 3.4% for first-grade and 3.94% for second-grade [4]. Supply and Demand Dynamics - The cumulative coal sales volume for key monitored enterprises was 146.43 million tons, a year-on-year decrease of 3.3%. Power and chemical industries saw coal consumption changes of -2.7% and +16.9% respectively [2][41]. - The chemical industry’s total coal consumption was reported at 21.39 million tons as of August 1, 2025, reflecting a year-on-year increase of 16.9% [41]. Investment Recommendations - The report suggests focusing on high-dividend thermal coal companies and turnaround coking coal companies. Key companies to watch include China Shenhua, Shaanxi Coal and Chemical Industry, and Yanzhou Coal Mining Company for thermal coal, and Huabei Mining and Shanxi Coking Coal for coking coal [6][42].

Investment Rating - The industry investment rating is positive, indicating a favorable outlook for the sector [1][22]. Core Viewpoints - The report emphasizes optimism for the steel industry during the peak seasons of September and October, suggesting that the current price declines should not deter investment [1]. - The report highlights that the overall inventory levels for major steel products have shown a slight increase, which may impact future pricing dynamics [4]. - The report notes that the average daily production of molten iron is projected to remain stable, indicating a balanced supply-demand scenario [8]. Summary by Sections Price Trends - The SW Steel Index has decreased by 2.2% week-on-week but has increased by 16.4% year-to-date [3]. - The price of rebar (HRB400 20mm) is currently at 3,350 CNY per ton, reflecting a week-on-week decline of 2.9% and a year-to-date decrease of 1.8% [3]. Inventory Levels - The total social inventory of the five major steel products stands at 941,000 tons, with a year-to-date increase of 2% [4]. - The total inventory at steel mills is reported at 410,000 tons, which has increased by 16.9% year-to-date [4]. Supply and Demand - The report indicates that the average daily production of major steel products is expected to remain consistent, supporting stable market conditions [8]. - The report also mentions that the iron ore price index is currently at 99 USD per ton, down by 3.5% week-on-week [3].

Investment Rating - The industry rating is maintained as "Positive" [4] Core Views - The report emphasizes the importance of the Mid-Autumn Festival and National Day performance for the liquor industry, recommending strong brand leaders in the liquor sector, particularly in the white liquor category [1][10] - The new consumption trend is expected to continue despite a short-term adjustment, with opportunities for investment in brands that align with rational quality consumption and emotional value [2][24] - The white liquor sector is advised to focus on potential policy catalysts and low-level rebounds, with a cautious assumption of profit bottoms for leading companies [10] Summary by Sections White Liquor Sector - Recommended brands include Guizhou Moutai, Shanxi Fenjiu, and Luzhou Laojiao, with a focus on strong brand momentum and high ROE, dividends, and share buybacks [1][10] - The white liquor sector experienced a decline of 2.40% during the trading period from July 28 to August 1, with specific companies like Zhenjiu Lidu and Gujing Gongjiu facing significant drops [3][30] Consumer Goods Sector - The new consumption sector is undergoing a structural adjustment but remains a key area for investment, with recommended stocks including Weidong Meishi, Wancheng Group, and Yili Group [2][24] - The consumer goods sector saw a mixed performance, with meat products gaining slightly while non-dairy beverages and white liquor faced declines [11][30] Company Updates - Guizhou Moutai is expanding its market presence through partnerships with platforms like Meituan, indicating a strategic move to enhance distribution channels [5] - Jinshiyuan is focusing on national expansion, with a clear three-step plan to establish itself as a leading brand in the high-end liquor market [6][7] Market Data - The report notes that the white liquor price for Moutai remains stable at 1860 RMB per bottle, with similar stability observed in other leading brands [9][47] - The overall valuation for the food and beverage industry is reported at 20.66 times, with the white liquor sector showing a valuation of 18.06 times [35]

Investment Rating - The report does not explicitly state an investment rating for the green computing industry Core Insights - Green computing is driven by the dual engines of "decarbonization" and "digitalization," making it a crucial component of new productive forces in the AI era [2][3] - The global computing power is projected to grow at a rate exceeding 50% over the next five years, with China's computing power reaching 230 EFLOPS, averaging a growth rate of nearly 30% over the past five years [2] - The energy consumption of AI data centers is expected to rise significantly, with IT energy consumption reaching 77.7 TWh in 2025 and 146.2 TWh by 2027, reflecting a compound annual growth rate of 44.8% from 2022 to 2027 [2] - Green computing encompasses three main areas: indirect carbon emissions from energy sourcing, algorithm selection and data center operations, and enabling industry transformation for carbon reduction [4][5] Summary by Sections Macro Perspective - Green computing is an inevitable choice in the AI era, serving as a key driver for the development of new productive forces [2][3] - The report highlights the importance of balancing efficient supply and sustainable development in the computing power industry [3] Mid-level Analysis - The carbon footprint of green computing includes indirect emissions from energy sourcing, lifecycle emissions from infrastructure, and direct emissions from operations [4] - The ECCI framework emphasizes efficient computing, energy conservation, clean collaboration, and inclusive usage [5][36] Micro-level Practices - Leading tech companies are implementing innovative green computing practices, such as Amazon's AWS migration reducing carbon emissions by 99%, Google's 24/7 carbon-free energy operations, and Microsoft's circular centers achieving a 90.9% server remanufacturing rate [7][8] - Tencent's deployment of renewable energy facilities and Alibaba Cloud's immersion cooling technology are notable examples of green computing initiatives in China [8]