Investment Rating - The report maintains a "Buy" rating for the company, with a market price of HKD 2.13 and a sector rating of "Outperform" [2][5]. Core Insights - Poly Real Estate Group has shown resilience during the current deep adjustment cycle in the industry, with significant breakthroughs in sales and land acquisition. The company's debt structure continues to optimize, and its operational resilience is evident. The projected revenues for 2025-2027 are RMB 422 billion, RMB 438 billion, and RMB 444 billion, with corresponding net profits of RMB 200.98 million, RMB 219.81 million, and RMB 238.38 million, reflecting growth rates of 10%, 9%, and 8% respectively [5][6][7]. Summary by Sections Sales Performance - In January 2026, the company's sales ranking improved to 12th in the industry, with a sales amount of RMB 3.7 billion, despite a year-on-year decline of 22.9%, which is better than the top 100 real estate companies' average decline of 24.7% [7][13]. The average sales price was RMB 24,800 per square meter, down 16.5% year-on-year [14]. Financial Projections - The company expects its main business revenue to grow at rates of 5%, 4%, and 1% for 2025, 2026, and 2027 respectively. The projected earnings per share (EPS) are RMB 0.053, RMB 0.058, and RMB 0.062 for the same years [5][6]. Debt and Financing - The company has maintained a smooth financing channel, with a total issuance of domestic and foreign bonds and ABS amounting to RMB 8.41 billion in 2025, reflecting an 11.1% increase year-on-year. The average issuance interest rate was 2.46%, down 0.11 percentage points year-on-year [7][12]. Market Position and Strategy - Poly Real Estate Group is characterized as a "small but beautiful" enterprise with a strong central enterprise background. The company has made significant progress in sales and land acquisition, with a focus on high-energy cities. The gross profit margin has improved by 3.2 percentage points to 17.5% in the first half of 2025 [7][8]. The current price-to-book (PB) ratio is 0.2X, indicating substantial room for valuation improvement [7].

Core Insights - The report highlights the current industry allocation of the Bank of China’s multi-strategy system, with the highest allocations in basic chemicals (22.8%), telecommunications (10.2%), and home appliances (10.1) [1] - The report tracks the performance of various strategies, indicating that the S1 industry profitability tracking strategy has outperformed the benchmark by 3.3%, while the S2 implied sentiment momentum strategy has outperformed by 4.3% [2][3] - The report identifies the top three industries based on profitability expectations as telecommunications, basic chemicals, and home appliances [14][19] Recent Industry Performance Review - The average weekly return for the CITIC primary industries was 0.8%, with the best-performing sectors being steel (5.7%), defense and military (5.3%), and electronics (4.4%) [10][11] - The worst-performing sectors included media (-6.4%), consumer services (-5.8%), and non-bank financials (-2.6%) [10][11] Industry Valuation Risk Warning - The report employs a valuation warning system based on the past six years of PB ratios, identifying industries with PB ratios above the 95th percentile as overvalued. Currently, industries such as retail, computers, non-ferrous metals, and defense are flagged for high valuation risk [12][13] Single Strategy Performance - The S1 high profitability industry rotation strategy currently has the highest weight at 21.7%, while the S3 macro style industry rotation strategy has the lowest weight at 17.9% [3] - The top three industries based on the S1 strategy are telecommunications, basic chemicals, and home appliances [14][15] Macro Style Rotation Strategy - The macro style rotation strategy identifies the top six industries based on macroeconomic indicators as banking, telecommunications, oil and petrochemicals, construction, home appliances, and coal [23][24] Long-term Reversal Strategy - The long-term reversal strategy recommends industries such as comprehensive, pharmaceuticals, basic chemicals, electric equipment and new energy, and consumer services for investment [27]

Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry index is expected to perform better than the benchmark index over the next 6-12 months [24]. Core Insights - The 2026 Spring Festival saw the longest holiday period in history, leading to a surge in travel enthusiasm and a strong performance in the cultural and tourism market. Domestic travel and spending reached record highs, supported by policies promoting service consumption [2][17]. - The report highlights the expected continued high prosperity of the cultural tourism industry, driven by favorable policies and a recovery in business travel. Key recommended companies include Lingnan Holdings, Tongcheng Travel, Changbai Mountain, Huangshan Tourism, Shoulv Hotel, China Duty Free Group, and Wangfujing [2][17]. Summary by Sections Domestic Travel - During the 2026 Spring Festival, a total of 596 million domestic trips were made, with an average of 66 million trips per day, representing a year-on-year increase of 5.7%. Total domestic travel expenditure reached 803.48 billion yuan, with an average daily expenditure of 89.28 billion yuan, also a 5.5% increase year-on-year [6][8]. - The average spending per trip was 1,348.13 yuan, with a daily average of 149.79 yuan, showing a decrease of 11.3% year-on-year [6][8]. - The total cross-regional population flow reached 2.81 billion, with an average of 310 million per day, marking an 8.2% increase year-on-year [6][7]. Key Scenic Areas - Major scenic spots such as Huangshan, Changbai Mountain, Emei Mountain, and Jiuzhaigou saw visitor numbers increase by over 10% year-on-year during the Spring Festival [9][10]. - Xiangyuan Cultural Tourism projects reported over 30% growth in both visitor numbers and revenue [9]. Duty-Free Sales - Duty-free shopping during the Spring Festival reached 2.72 billion yuan, with 325,000 shoppers, marking increases of 30.8% and 35.4% respectively compared to the previous year [11][12]. - Sanya's four duty-free stores achieved a total sales of 1.96 billion yuan, a year-on-year increase of 23.7% [11]. Cross-Border Travel - The total number of inbound and outbound travelers reached 17.796 million during the Spring Festival, with a daily average of 1.977 million, reflecting a 10.1% increase year-on-year [14][15]. - Notably, the number of Russian tourists increased by 471% year-on-year, and Korean tourists grew by 95% [15]. Travel Characteristics - The report indicates a shift towards longer trips, with 59.6% of travel orders being for trips longer than five days, and an average travel duration of 6.4 days [16]. - There is a notable increase in interest in cultural experiences, particularly among younger generations, with searches for intangible cultural heritage experiences rising by 180% [16].

基础化工 | 证券研究报告 — 行业周报 2026 年 2 月 25 日 强于大市 化工行业周报 20260225 国际油价大幅上涨，分散染料迎来第四轮涨价 二月份建议关注：1、低估值行业龙头公司；2、"反内卷"对相关子行业供给端影响；3、下游需求旺 盛，自主可控日益关键背景下的电子材料公司。 行业动态 相关研究报告 《染料价格上行，一体化企业有望受益》 20260211 《化工行业周报 20260208》20260208 《化工行业周报 20260201》20260202 中银国际证券股份有限公司 具备证券投资咨询业务资格 证券分析师：余嫄嫄 (8621)20328550 yuanyuan.yu@bocichina.com 证券投资咨询业务证书编号：S1300517050002 证券分析师：范琦岩 qiyan.fan@bocichina.com 证券投资咨询业务证书编号：S1300525040001 投资建议 风险提示 ◼ 地缘政治因素变化引起油价大幅波动；全球经济形势出现变化。 ◼ 本周（02.17-02.24）均价跟踪的 100 个化工品种中，共有 33 个品种价格上涨，8 个品种价格下跌， 59 个品 ...

国际油价大幅上涨，分散染料迎来第四轮涨价 二月份建议关注：1、低估值行业龙头公司；2、"反内卷"对相关子行业供给端影响；3、下游需求旺 盛，自主可控日益关键背景下的电子材料公司。 行业动态 基础化工 | 证券研究报告 — 行业周报 2026 年 2 月 25 日 强于大市 化工行业周报 20260225 相关研究报告 《染料价格上行，一体化企业有望受益》 20260211 《化工行业周报 20260208》20260208 《化工行业周报 20260201》20260202 中银国际证券股份有限公司 具备证券投资咨询业务资格 基础化工 证券分析师：余嫄嫄 (8621)20328550 yuanyuan.yu@bocichina.com 证券投资咨询业务证书编号：S1300517050002 证券分析师：范琦岩 qiyan.fan@bocichina.com 证券投资咨询业务证书编号：S1300525040001 投资建议 风险提示 ◼ 地缘政治因素变化引起油价大幅波动；全球经济形势出现变化。 ◼ 本周（02.17-02.24）均价跟踪的 100 个化工品种中，共有 33 个品种价格上涨，8 个品种价格下跌， ...

Core Insights - The report emphasizes that the current environment is favorable for allocating resources in cyclical sectors, particularly in the first quarter of 2026, due to rising overseas uncertainties and the expected resumption of domestic activities after the Spring Festival [1][2]. Group 1: Market Performance - The cyclical sector performed well, with significant gains in industries such as oil and petrochemicals, construction materials, basic chemicals, non-ferrous metals, and coal, driven by geopolitical tensions, U.S. tariff policy uncertainties, and domestic supply-demand expectations [2]. - The escalation of the U.S.-Iran situation has led to rising oil prices, with global crude oil prices reaching a six-month high during the Spring Festival, positively impacting the domestic oil and petrochemical sector [2]. - Uncertainties surrounding tariffs have provided strong support for precious metal prices, with international gold prices continuing to rise amid renewed global trade uncertainties [2]. Group 2: Supply Constraints and Price Expectations - Coal prices are expected to recover due to supply constraints, with domestic coal inventories at major ports dropping to low levels and signals of reduced coal supply from Indonesia, which may create price space for domestic coal [2]. - The resumption of work after the Spring Festival is anticipated to boost demand expectations, further supporting coal prices [2]. Group 3: Strategic Outlook - The report reiterates that the first quarter is a critical time for resource allocation, with the recent rise in overseas uncertainties likely to catalyze a new round of resource price movements [2]. - The evolution of the U.S.-Iran situation will be a significant factor influencing oil and precious metal prices, while the restart of U.S. trade policy uncertainties may provide strong support for precious metals [2]. - Domestic construction activity and macroeconomic policy developments ahead of the Two Sessions will significantly impact the sustainability of the coal sector and other domestic resource prices [2].

Investment Rating - The report assigns a "BUY" rating to NetEase Cloud Music with a target price of HK$200.00 [6][8] Core Insights - In 2H25, NetEase Cloud Music's topline grew by 1% year-on-year, slightly missing consensus expectations by 1%. Online music revenue increased by 8% year-on-year, driven by a 12% growth in core music subscription revenue, while social entertainment revenue declined by 17% year-on-year. The adjusted net profit margin was 23.2%, meeting market expectations [7][9] - The company is committed to executing its core music content, product, and monetization strategies, particularly targeting young music enthusiasts, and is accelerating the adoption of AI technologies in content and algorithms [7][9] - Despite increased competition in the domestic music market, the outlook remains optimistic for the company to gradually extract long-term value from its engaged young user base [8][9]

Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry index is expected to perform better than the benchmark index over the next 6-12 months [12]. Core Insights - The evolution path of large models in the AI industry is becoming clearer, with a potential supply-demand imbalance in computing power [2]. - Significant upgrades to major AI models occurred around the Chinese New Year, with both domestic and international companies releasing important model updates, indicating a robust demand for advanced AI capabilities [4]. - The rise in computing power prices suggests a supply bottleneck, which may benefit the computing power supply chain in the long term [4]. Summary by Sections Investment Suggestions - The report suggests focusing on the following sectors for investment: - Computing and Storage: Cambrian, Haiguang Information, Moore Threads, Muxi Co., Zhaoyi Innovation, Baiwei Storage, Jucheng Co., and Lixin Micro [4]. - Advanced Manufacturing: SMIC, Huahong, Jinghe Integration, China Resources Micro, Chipone, Changdian Technology, Tongfu Microelectronics [4]. - Optical Communication: Zhongji Xuchuang, Tianfu Communication, Xinyi Sheng, Changfei Fiber Optics, Zhongtian Technology, Hengtong Optics, Huanyu Electronics, Jietu [4]. - PCB: Shennan Circuit, Huitian Technology, Pengding Holdings, Shenghong Technology [4]. - PCB Materials: Shengyi Technology, Nanya New Materials, Feiliwa, International Composites, China Materials Technology, Honghe Technology [4]. - Thermal Management and Power Supply: Invec, Shenling Environment, Jiewate, Magmi Tech, Oulu Tong [4]. Industry Developments - Major AI model upgrades were noted, including the release of models such as K2.5 by Moon's Dark Side, GLM-5 by Zhipu, and others from ByteDance and Alibaba, showcasing a competitive landscape in AI model development [4]. - The emergence of advanced AI agents and multi-modal applications is expected to drive productivity changes across various sectors, including business, legal, and financial applications [4]. - The report highlights the increasing efficiency of AI-generated content, with improvements in video generation capabilities, indicating a shift towards scalable development in industries like animation and gaming [4].

Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry index is expected to perform better than the benchmark index over the next 6-12 months [24]. Core Insights - The pilot program in Shanghai for acquiring second-hand housing for rental housing is expected to have advantages compared to lower-tier cities and may serve as a guiding model for other key urban projects [2][4]. - If the implementation is orderly, it could positively impact market expectations and confidence [2]. - The acquisition of second-hand homes is part of a new model called "monetization of affordable housing construction," allowing for the conversion of physical affordable housing into monetary funds for purchasing suitable existing homes [1][4]. Summary by Sections Event Overview - On February 2, 2026, the first batch of second-hand housing acquisitions for rental housing projects in Shanghai was officially signed, supported by China Construction Bank [1]. - The pilot will take place in the districts of Pudong, Xuhui, and Jing'an, focusing on acquiring 96 second-hand homes to be included in the affordable housing supply system [1]. Acquisition Mechanism - The acquisition will prioritize small-sized units built before 2000, with a total price not exceeding 4 million yuan, targeting properties with clear ownership and no disputes [4][5]. - The program aims to address the housing supply-demand imbalance in key areas with high rental demand [4][6]. Market Conditions - As of the end of 2025, there were approximately 4,825 second-hand homes in the three districts that met the acquisition criteria, with a total listing value of 14.2 billion yuan [4][11]. - The rental demand for one and two-bedroom units in these districts is notably high, with demand ratios reaching 85.4% in Xuhui, 80.2% in Pudong, and 78.2% in Jing'an [6][8]. Financial Support and Sustainability - The funding for the acquisitions will come from district-level financial resources, supplemented by bank loans, with rental income from the acquired properties expected to support ongoing operations [4][5]. - China Construction Bank is expected to provide financial support for the acquisition process, including customized financing solutions [4][5]. Comparative Analysis - The report compares Shanghai's approach to similar initiatives in Zhengzhou, noting that while Zhengzhou's program has not significantly boosted market demand, Shanghai's pilot is positioned to better meet existing rental needs [4][5]. - The price decline of second-hand homes in Shanghai has been significant, with prices in the three districts dropping by over 20% compared to their peak [4][15].

Investment Rating - The report rates the real estate industry as "Outperforming the Market" [24]. Core Insights - In January 2026, new home prices in 70 large and medium-sized cities decreased by 0.4% month-on-month, while second-hand home prices fell by 0.5%. The decline in second-hand home prices has narrowed compared to December 2025 [3][10]. - The number of cities with declining new home prices increased to 62, with an average decline of 0.42%, which is a slight improvement from the previous month [3]. - First-tier cities saw a month-on-month decline of 0.3% in new home prices, while second-hand home prices decreased by 0.5%, with significant improvements noted in Beijing [3][11]. - Second-tier cities experienced a month-on-month decline of 0.3% in new home prices and 0.5% in second-hand home prices, with some cities showing price increases [3][11]. - Third-tier cities maintained a month-on-month decline of 0.4% in new home prices and a 0.6% decrease in second-hand home prices, with a few cities showing slight increases [3][11]. - The report suggests that while the narrowing of second-hand home price declines in January is a positive sign, ongoing observation of transaction volumes and prices is necessary, particularly for potential seasonal rebounds in the market [3][11]. - The report anticipates two key turning points in 2026: a "policy turning point" around the end of Q1 and a "fundamental turning point" around Q4, with investment opportunities expected to arise [3][11]. - Recommended investment focuses include companies with stable fundamentals in core cities, smaller firms showing significant breakthroughs in sales and land acquisition, and commercial real estate companies exploring new consumption scenarios [3][11]. Summary by Sections New Home Prices - In January 2026, new home prices in 70 cities fell by 0.4%, with 62 cities experiencing declines [3][10]. - First-tier cities saw a stable decline of 0.3%, while second-tier cities had a decline of 0.3% and third-tier cities maintained a decline of 0.4% [3][11]. Second-Hand Home Prices - Second-hand home prices decreased by 0.5% in January 2026, with 67 cities reporting declines [3][11]. - First-tier cities experienced a decline of 0.5%, second-tier cities saw a 0.5% decrease, and third-tier cities had a 0.6% decline [3][11]. Investment Recommendations - Focus on companies with strong sales and land reserves in first and second-tier cities, smaller firms with notable sales and land acquisition breakthroughs, and commercial real estate companies adapting to new consumption trends [3][11].