Investment Rating - The report maintains a rating of "Hold" for the industry [1]. Core Insights - The report indicates a clear signal of recovery in the "Xinchuang" (信创) sector, with targeted funding support accelerating its advancement [3][8]. - The issuance of special long-term bonds is expected to boost capital expenditure in the Xinchuang field [11][14]. - Market confidence is recovering, and a resurgence in the growth rate of the Xinchuang sector is anticipated [16]. Summary by Sections 1. Recovery Signals in Xinchuang - The deadline for the transformation of state-owned enterprises by 2027 is approaching, prompting accelerated implementation of Xinchuang initiatives [8]. - National standards for the safety and reliability of Xinchuang products have been introduced, enhancing the development of self-controlled technologies [9][10]. - The market is expected to see a recovery in capital expenditure in the Xinchuang sector due to favorable macroeconomic policies introduced since September 24 [11][16]. 2. Rapid Launch of Bidding in September - Government departments are actively promoting hardware upgrades and the application of domestic operating systems, reflecting a strong emphasis on information security [18]. - Major procurement activities include the purchase of desktop operating systems and servers by various sectors, including government, telecommunications, and finance, with significant budget allocations [20][22]. - The report highlights that the total bidding amounts for Xinchuang-related projects have reached several tens of millions [24]. 3. Investment Recommendations - The report suggests that the approaching timeline for comprehensive replacements, combined with recent favorable policies, will likely lead to increased capital expenditure in the Xinchuang sector [23][24]. - Key companies to watch include those involved in infrastructure, basic software, and application software, which are expected to benefit from the Xinchuang initiatives [25].

Investment Rating - The report maintains a "Hold" rating for the industry [1][38]. Core Insights - HarmonyOS NEXT is set to officially launch on October 8, 2024, with the Mate70 series being the first to commercialize it in Q4 2024. The beta version has received over a million feedback suggestions, leading to the release of 10,000 applications across 18 major fields, covering 99.9% of user usage time [1][11]. - The OpenHarmony 5.0 version has been released, aligning with HarmonyOS, enhancing user experience, data security, and entertainment capabilities, facilitating more efficient development for developers [3][24]. - The report emphasizes the necessity and urgency of self-developed operating systems, highlighting the challenges and strategies for Huawei's HarmonyOS to break through in a competitive market [3][26][27]. Summary by Sections HarmonyOS NEXT Launch - HarmonyOS NEXT is expected to officially launch on October 8, 2024, with the Mate70 series being the first to utilize it commercially in Q4 2024. The beta version has been tested since June 2024, leading to significant improvements based on user feedback [1][11][8]. OpenHarmony 5.0 Update - The OpenHarmony 5.0.0 Release version was launched on September 30, 2024, enhancing alignment with HarmonyOS and improving user experience, data security, and entertainment features [3][24]. Self-Developed Operating Systems - The report discusses the necessity of self-developed operating systems, citing external risk minimization, alignment with domestic trends, and the need for improved software performance as key reasons for Huawei's focus on HarmonyOS [3][26][27]. - Challenges include the high initial investment and long development cycles typical of operating systems, as well as the difficulty in disrupting established market monopolies [3][27]. Huawei's Strategy - Huawei's HarmonyOS aims to achieve technical independence through distributed architecture, enabling seamless cross-device collaboration and enhanced security [3][28][31]. - The report highlights the importance of ecosystem rebuilding, leveraging Huawei's hardware advantages and fostering partnerships with application developers to drive innovation [3][31][32]. Investment Opportunities - The report suggests that the maturation of the HarmonyOS native application ecosystem in 2024 will lead to significant commercial opportunities, recommending attention to partners in the operating system, application, and hardware integration sectors [3][36].

、 市场反弹，通信板块如何配置？ -中泰通信行业周报（0 9 2 3 - 1007） 通 信 证券研究报告/行业 周报 2024 年 1 0 月 7 日 评级：增持（维持） [Table_Finance] 重点公司基本状况 分析师：陈宁玉 执业证书编号：S0740517020004 Email：chenny@zts.com.cn 分析师：杨雷 执业证书编号：S0740524060005 Email：yanglei01@zts.com.cn 研究助理：佘雨晴 Email：sheyq@zts.com.cn [Table_Profit] 基本状况 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------|---------------|---------|--------------|---------------|-------|--------|-------|--------------|-------|-------|-------| | 简称 | 股价 \n( 元 ) | 2023 | 202 ...

Investment Rating - The report maintains an "Overweight" rating for the construction materials industry [1]. Core Insights - The report highlights that recent policy adjustments are aimed at stabilizing the real estate market, which is expected to positively impact the construction materials sector. The Long Triangle region has initiated significant price increases for cement, indicating a recovery in bottom valuations [1][2]. - The demand for glass fiber is projected to grow steadily, driven by wind energy and infrastructure projects, with leading companies in the sector recommended for investment [2][3]. - The report emphasizes the importance of supply-side adjustments, including production cuts and inventory management, to enhance pricing power in the cement market [1][2]. Summary by Sections Cement Industry Tracking - The report notes that the cement price has been raised significantly in various regions, with a focus on the Long Triangle area, where prices have increased by 20 yuan per ton [1]. - It mentions that the industry is experiencing a recovery in demand, with a reported increase in cement sales rates in key areas [1][2]. - The report indicates that the overall market sentiment is improving, with expectations for further price increases as supply constraints are managed [1][2]. Glass Fiber Industry Tracking - The report states that the glass fiber market is witnessing stable demand growth, particularly from the wind energy and infrastructure sectors, with leading companies like China Jushi and Zhongcai Technology recommended for investment [2][3]. - It highlights that the pricing for electronic yarn remains stable, with expectations for potential price increases in the near future due to supply constraints [2][3]. General Market Performance - The construction materials sector has shown a positive performance, with an 8.73% increase in the sector's index over the past week, outperforming the broader market [10][11]. - The report identifies key companies that have performed well, including Feili Hua and Keshun Shares, while also noting those that lagged behind [10][11].

Investment Rating - The report maintains an "Overweight" rating for the communication industry [2] Core Insights - The communication industry index has remained stable, with significant policy support leading to a bullish trend in the A-share market. The Shanghai Composite Index increased by 21.37%, while the communication sector saw a rise of 25.05% from September 24 to September 30, 2024 [5][10] - The report highlights a sustained high demand for AI computing power, with leading companies in the sector expected to benefit from this trend. The demand for optical modules in telecommunications is showing signs of recovery, with a projected stabilization in demand in the second half of 2024 [5][7] - The report emphasizes the recovery of the optical and submarine cable sectors, with significant projects approved that are expected to drive demand in the coming years. The report suggests focusing on companies like Hengtong Optic-Electric and Zhongtian Technology [7][10] Summary by Sections Key Company Status - The report provides a detailed overview of key companies in the communication sector, including their stock prices, earnings per share (EPS) forecasts, and price-to-earnings (PE) ratios. For instance, Zhongji Xuchuang has a stock price of 154.86 CNY with an EPS forecast of 6.41 CNY for 2024 [3][10] Market Trends - The report notes that the total market capitalization of the communication industry is approximately 4.45 trillion CNY, with a circulating market value of about 1.52 trillion CNY. There are 122 listed companies in this sector [3][10] Policy and Economic Environment - Recent government policies aimed at supporting economic growth have positively impacted the communication sector, leading to increased investor confidence and market performance [5][10] Stock Selection Strategy - The report suggests a stock selection strategy focusing on leading companies in AI computing and optical modules, recommending stocks such as Zhongji Xuchuang, Tianfu Communication, and Yuanjie Technology for potential investment [5][7][10]

Investment Rating - The report assigns an "Invest Buy" rating to the company, marking its first coverage [1] Core Views - The company is a leader in precision temperature control and energy-saving solutions, benefiting from the growth in AI computing power and energy storage installations, with potential for accelerated performance expansion [7] - The company has end-to-end liquid cooling solution capabilities, with its electronic cooling products opening up new growth opportunities [4] - The report forecasts the company's net profit for 2024-2026 to be 552 million, 754 million, and 982 million yuan, respectively, with EPS of 0.75, 1.02, and 1.33 yuan [4] Financial Projections and Valuation - Revenue is projected to grow from 2,923 million yuan in 2022 to 8,469 million yuan in 2026, with a CAGR of 32% [1] - Net profit is expected to increase from 280 million yuan in 2022 to 982 million yuan in 2026, with a CAGR of 30% [1] - The P/E ratio is expected to decrease from 68.7 in 2022 to 19.6 in 2026, indicating a more attractive valuation over time [1] Industry and Market Analysis - The AI-driven demand for liquid cooling is expected to grow significantly, with the domestic liquid cooling data center market projected to exceed 100 billion yuan by 2027, with a CAGR of 76% [3] - The energy storage temperature control market is also expected to grow, with the domestic market size for liquid cooling in energy storage projected to reach 16.4 billion yuan by 2025, with liquid cooling accounting for 45% [3] - The company has delivered 900MW of liquid cooling projects as of March 2024, with its Coolinside full-chain solution covering various liquid cooling schemes [4] Company Strengths and Strategy - The company has a comprehensive product matrix and a strong customer base, including major internet companies, telecom operators, and energy storage system integrators [3] - The company has a robust R&D capability, with 1,279 R&D personnel as of the end of 2023, accounting for 33.19% of the total workforce [25] - The company has a nationwide production layout, with seven manufacturing bases and a new headquarters base in South China that began production in 2024 [26] Technological Advancements - The company has developed a full-chain liquid cooling solution, including cold plate liquid cooling, single-phase/phase-change immersion liquid cooling, and other schemes [4] - The company has also introduced the BattCool solution for the energy storage field, demonstrating its capability in end-to-end liquid cooling solutions [4] - The company is actively expanding into the electronic cooling market, with products such as GPU/CPU liquid cooling plates, server liquid cooling modules, and heat pipes [4]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company has successfully completed the acquisition of 80% of Shengdi Semiconductor (Shanghai) Co., Ltd., enhancing its position in the NAND flash packaging market [3][4] - The acquisition is expected to open up further market opportunities in the NAND sector, which is projected to grow significantly from $58.7 billion in 2022 to $92 billion by 2028, with a CAGR of approximately 8% [4] - The company is focusing on integrating capabilities in computing power, storage, and automotive electronics to establish itself as a leader in AI packaging [5][6] - The semiconductor market is expected to rebound in 2024, driven by stable consumer demand and growth in AI and high-performance computing applications [6][8] Financial Summary - Revenue is projected to grow from 29,661 million yuan in 2023 to 47,801 million yuan in 2026, with a CAGR of approximately 11% [1] - Net profit is expected to recover from 1,471 million yuan in 2023 to 3,405 million yuan in 2026, reflecting a strong growth trajectory [1] - The company's P/E ratio is forecasted to decrease from 43.0 in 2023 to 18.6 in 2026, indicating improved valuation relative to earnings [1][8]

Group 1: Macroeconomic Insights - The report highlights the expectation of fiscal policy initiatives to stimulate consumption through measures such as issuing government bonds, optimizing fiscal expenditure, and activating fiscal deposits [2][3][5] - The manufacturing PMI for September shows a seasonal recovery, with a reading of 49.8%, indicating improved economic activity compared to previous months [4][5][6] - The report notes that the high-tech manufacturing and equipment manufacturing sectors continue to lead, with PMIs of 53.0% and 52.0% respectively, reflecting strong performance in these areas [4][6][7] Group 2: Fixed Income Market Analysis - The report discusses the impact of recent monetary policy adjustments, including a reduction in reserve requirements, which is expected to release significant liquidity into the market [6] - It mentions that the government bond issuance has accelerated, with net financing progress significantly higher than in previous years, indicating a proactive approach to managing liquidity [5][6] - The report anticipates a static funding gap of approximately 600 billion yuan for October, primarily due to seasonal increases in fiscal deposits [6][7] Group 3: Industry Developments - The collaboration between SAIC General Motors and CATL to launch a 6C ultra-fast charging lithium iron phosphate battery is noted, which is expected to enhance the electric vehicle market [4][7] - The report indicates that the renewable energy sector, particularly in wind and solar, is experiencing growth, with significant project developments and government support [4][7] - The introduction of "old-for-new" policies in various cities is driving demand in the consumer goods and automotive sectors, contributing to a recovery in these industries [7]

Investment Rating - The report maintains an "Overweight" rating for the industry [2] Core Insights - The real estate market is expected to continue its recovery, supported by multiple policies aimed at stabilizing the market and boosting confidence [2][3] - The report emphasizes the importance of digitalization in the construction and real estate sectors, suggesting that digital companies have a higher short-term safety margin and greater long-term potential [2][3] - The report highlights that the current market conditions have led to a significant adjustment in stock prices, indicating that the market has already priced in many risks [2][3] Summary by Sections Industry Overview - The report notes that various policies have been introduced to promote the stabilization of the real estate market, including lowering existing mortgage rates and adjusting down payment ratios [2][3] - It mentions that the total market capitalization of the industry is 33.1 trillion yuan, with a circulating market value of 19.3 trillion yuan [2] Company Analysis - Key companies such as Guanglian Da and Mingyuan Cloud are highlighted, with both receiving a "Buy" rating [2] - The report indicates that the digitalization trend in the construction and real estate sectors is expected to accelerate, enhancing operational flexibility and resilience [2][3] Investment Recommendations - Investors are advised to focus on companies with strong product technology levels and competitive advantages within the digitalization space [2][3]

Investment Rating - The report maintains an "Overweight" rating for the industry [2] Core Insights - The real estate sector is expected to continue its recovery, driven by multiple policies aimed at stabilizing the market. Recent measures include lowering existing mortgage rates and adjusting down payment ratios [2][3] - The report emphasizes the importance of digitalization in the construction and real estate sectors, suggesting that digital companies like Glodon and Mingyuan Cloud are well-positioned for growth due to their asset-light models and operational flexibility [2][3] - The anticipated shift from high-leverage, extensive operational models to more refined and innovative approaches in the real estate and construction industries is highlighted, with digitalization seen as a key enabler [2][3] Summary by Sections Industry Overview - The report notes that the total market capitalization of the industry is 33.1 billion, with a circulating market value of 19.3 billion [3] - Recent government policies have been implemented to boost market sentiment and stabilize the real estate sector, including a series of financial support measures [3] Company Analysis - Glodon and Mingyuan Cloud are identified as key companies to watch, with both receiving a "Buy" rating. Glodon has an EPS forecast of 0.59 for 2024, while Mingyuan Cloud's EPS is projected at -0.59 [3] - The report suggests that the stock prices of these companies have adjusted sufficiently in line with the sector's performance, making them attractive investment opportunities [2][3]