Summary of Key Points Core Viewpoint - The report highlights the top short-selling stocks in Hong Kong, indicating significant short-selling activity in companies like New World Development, Hong Kong Exchanges, and BYD, with notable short-selling ratios and amounts [1][2]. Short-Selling Ratios - New World Development (80016) has the highest short-selling ratio at 100.00% - Hong Kong Exchanges (80388) follows with a short-selling ratio of 94.27% - BYD (81211) has a short-selling ratio of 94.13% [1][2]. Short-Selling Amounts - Alibaba (09988) leads in short-selling amount with HKD 1.546 billion - Tencent (00700) has a short-selling amount of HKD 1.265 billion - Xiaomi (01810) follows with HKD 1.188 billion [1][2]. Deviation Values - Hong Kong Exchanges (80388) has the highest deviation value at 54.37% - New World Development (80016) has a deviation value of 41.90% - Alibaba (89988) shows a deviation value of 39.84% [1][2].

Group 1 - The core viewpoint of the news is the performance and characteristics of the Hong Kong Dividend Low Volatility ETF (520890), which has seen a significant decrease in both shares and scale in 2024 [1][2] - As of August 4, 2024, the fund's latest shares were 56.508 million, with a scale of 80.0775 million yuan, reflecting a 54.06% decrease in shares and a 45.28% decrease in scale compared to December 31, 2024 [1] - The fund's management fee is 0.50% annually, and the custody fee is 0.10% annually, with a performance benchmark based on the Hang Seng Hong Kong Stock Connect High Dividend Low Volatility Index [1] Group 2 - The current fund manager, Li Qian, has managed the fund since its inception on September 4, 2024, achieving a return of 41.71% during her tenure [1] - The ETF's recent trading activity shows a cumulative transaction amount of 140 million yuan over the last 20 trading days, with an average daily transaction amount of 7.0048 million yuan [1] - The top holdings of the ETF include Shougang Resources (3.83%), Far East Horizon (3.69%), and Chongqing Rural Commercial Bank (3.27%), among others, with detailed holdings and market values provided [2]

Group 1: Hong Kong Stock Market Movements - Jin Jing New Energy (01783) rose over 4.5% as the Hang Seng Index company is set to release its mid-year review results on August 22, with changes effective from September 8 [1] - Paper stocks in Hong Kong continued to rise, with Nine Dragons Paper (02689.HK) increasing over 7%, recording five consecutive gains, while Lee & Man Paper (02314.HK) rose about 5% [1] - Airline stocks saw significant gains, with China National Aviation (0753.HK) up over 7%, driven by the Civil Aviation Administration's emphasis on enhancing the industry’s competitive landscape [1] - Renrui Talent (06919) surged over 19% after announcing a positive earnings forecast, expecting revenue of approximately RMB 2.49 billion to 2.69 billion for the year ending June 30, 2025, representing a year-on-year growth of 21.1% to 30.8% [1] Group 2: Other Notable Stock Movements - China Antibody-B (03681) increased over 8% after entering into subscription agreements for the issuance of 182 million new shares at a subscription price of HKD 2.03 per share [2] - Fufeng Group (00546) rose over 4% with an expected net profit of RMB 1.74 billion for the first half of the year, a 67% increase year-on-year, attributed to higher sales and lower raw material costs [2] - Cao Cao Travel (02643) gained over 4%, reaching a new high following a strategic partnership with a leading commercial aerospace company [2] - NIO-SW (09866) rose over 8%, with a cumulative increase of over 40% in the month [2] Group 3: US Stock Market Highlights - Kohl's (KSS.US) saw a dramatic increase of nearly 90%, becoming a popular "meme stock" among retail investors, closing at $14.34, up 37.62% [3] - Daqo New Energy (DQ.US) closed at $24.60, with a rise of 16.75%, as silicon material prices have been on the rise, with an increase of 25-35% recently [3] - General Motors (GM.US) stock fell by 8.12% to $48.89, with the CFO indicating potential tariff impacts of up to $5 billion this year [3] - The Nasdaq Golden Dragon China Index rose 1.35%, with notable gains in Chinese concept stocks, including PONY.US up 8.62% and NIO.US up 10.84% [3] Group 4: Additional Stock Movements - Faraday Future (FFAI.US) surged over 43% after receiving a non-binding order for 1,000 vehicles valued at up to $100 million [4] - Most new energy vehicle stocks rose, with Lucid Group (LCID.US) closing at $3.13, an increase of about 11% [4] - Circle (CRCL.US) fell by 8.23% after a downgrade from "neutral" to "sell" by Compass Point Research [4] - Replimune (REPL.US) dropped 77% after the FDA rejected its application for a combination therapy for advanced melanoma, citing insufficient evidence [4]

Investment Rating - The investment rating for the company is maintained at "Buy" [1] Core Views - The company is expected to achieve a net profit of 1.74 billion RMB for the first half of 2025, representing a year-on-year increase of 67%, driven by increased sales volume and reduced raw material costs [1][2] - The outlook for amino acids and MSG is expected to improve, and the company's overseas expansion is anticipated to contribute additional growth [1][3] Summary by Sections Financial Performance - The expected net profit for the first half of 2025 is 1.74 billion RMB, slightly above the previous forecast of 1.6 billion RMB [1] - The average market prices for key products in the first half of 2025 are as follows: lysine (98.5%) at 9.2 RMB/kg, lysine (70%) at 5.4 RMB/kg, threonine at 10.5 RMB/kg, and MSG at 7.2 RMB/kg, with year-on-year changes of -8%, +1%, +2%, and -11% respectively [2] Market Outlook - The market prices for lysine (98.5%) and threonine are expected to improve as the peak season approaches, alongside a recovery in MSG consumption demand [3] - The company plans to establish two overseas production bases and expand its sales offices in Vietnam, the USA, and the Netherlands [3] Profit Forecast and Valuation - The forecasted net profit for 2025, 2026, and 2027 has been raised to 2.8 billion RMB, 3.0 billion RMB, and 3.3 billion RMB respectively, reflecting increases of 16%, 16%, and 17% from previous estimates [4] - The target price for the company's stock is set at 8.62 HKD, based on a valuation of 7x PE for 2025 [4]

Market Overview - The Hong Kong stock market showed volatility, with the Hang Seng Index closing at 25,130.03 points, up 0.54% or 135.89 points, with a total turnover of HKD 266.07 billion [1] - The Hang Seng China Enterprises Index rose 0.39% to 9,075.6 points, while the Hang Seng Tech Index increased by 0.38% to 5,606.83 points [1] Blue Chip Performance - BYD (01211) saw a significant increase of 5.09%, closing at HKD 134.2, contributing 37.78 points to the Hang Seng Index [2] - In the first half of 2023, BYD's domestic sales exceeded 2.113 million units, a year-on-year increase of 31.5%, while overseas sales reached 472,000 units, up 128.5% [2] - Other notable blue chips included Xinyi Glass (00868) up 7.23%, Zhongsheng Holdings (00881) up 6.15%, while New Oriental (09901) and Bank of China Hong Kong (02388) saw declines of 4.92% and 3.5% respectively [2] Sector Highlights - Coal stocks surged, with Mongolian Coking Coal (00975) up 11.55% and Yancoal Australia (01171) up 9.53%, driven by rumors of capacity control measures in the coal industry [3][4] - Infrastructure stocks performed strongly, with China Communications Construction (01800) rising 7.57% and China Railway Construction (01186) up 6.03% [4] - The launch of the Yarlung Tsangpo River downstream hydropower project, with an investment of approximately CNY 1.2 trillion, is expected to boost infrastructure investment [5] Commodity and Material Stocks - Non-ferrous metal stocks continued to rise, with Ganfeng Lithium (01772) up 8.94% and Luoyang Molybdenum (03993) up 7.12%, supported by upcoming policies aimed at stabilizing growth in key industries [6] - The photovoltaic sector was active, with Kaisa New Energy (01108) rising 8% and GCL-Poly Energy (03800) up 6.67%, as supply-side reforms are anticipated to improve industry conditions [7] Notable Stock Movements - China Longgong (03339) surged 15.83% after announcing a significant profit increase forecast for the first half of 2025 [8] - Fufeng Group (00546) rose 10.8% on expectations of a substantial profit increase due to higher sales and lower raw material costs [9] - Lijun Pharmaceutical (01513) reached a new high, up 9.37%, following positive clinical trial results for a new drug [10] - Harbin Electric (01133) climbed 8.14% after announcing a profit forecast that exceeded expectations [11] - Meizhong Jiahe (02453) faced pressure, down 6%, due to a planned share placement at a discount [12]

Core Viewpoint - The company, 阜丰集团, has experienced a significant increase in stock price and anticipates a substantial rise in net profit for the mid-2025 period, driven by increased sales and reduced raw material costs [2][3]. Financial Performance - The company expects a net profit increase of approximately 7 billion RMB, representing a growth of about 67.31% compared to the net profit of approximately 10.4 billion RMB for the six months ending June 30, 2024 [2]. - The increase in net profit is attributed to higher sales volumes of key products and a decrease in the costs of major raw materials [2]. Legal Developments - The company reached a settlement in a lawsuit regarding trade secrets related to xanthan gum production, resulting in a compensation of 2.33 billion RMB from 新疆梅花氨基酸有限公司 and 梅花生物 [3]. - The settlement is expected to reduce future legal uncertainties and related costs without significantly impacting the company's financial status or operations [3]. International Strategy - The company is actively implementing an internationalization strategy, establishing two overseas production bases and developing sales offices in Vietnam, the United States, and the Netherlands [4]. - The company aims to leverage the cost advantages of its chemical plants and enhance its global competitiveness amid challenges such as anti-dumping measures on certain amino acids [4].

Group 1 - The core viewpoint of the report is that due to the decline in raw material prices such as corn and coal, as well as compensation received by the company, the profit forecasts for 2025 and 2026 have been raised by 21% and 9% to 2.93 billion and 2.80 billion respectively, with the current stock price corresponding to a P/E ratio of 5.7x and 5.9x for 2025 and 2026 [1] - The company expects a net profit of approximately 1.74 billion for 1H25, representing a year-on-year increase of 63%, which exceeds market expectations, primarily due to lower costs of key raw materials and a compensation of 233 million received in March 2025 [1] - The prices of the company's main products, including monosodium glutamate, threonine, and lysine, have shown year-on-year changes of -11%, +1%, and -9% respectively, indicating a mixed pricing environment influenced by weak downstream demand and anti-dumping duties imposed by the EU [1] Group 2 - The company is focusing on the potential for price increases in monosodium glutamate and threonine due to a concentrated supply structure, with the top three producers accounting for about 80% of global production capacity [2] - Despite recent price adjustments, the high market concentration suggests a low probability of price wars, with expectations for price recovery as seasonal demand increases [2] - The company is advancing its overseas production capacity, with plans to establish two overseas production bases and develop sales offices in Vietnam, the United States, and the Netherlands, which may enhance its global competitiveness [3]

Group 1: Market Developments - Hong Kong Stock Exchange will lower the minimum price fluctuation for stocks starting August 4, 2025, following successful market rehearsals and regulatory approvals [1] - The Hang Seng Index's ADR closed at 24,987.99 points, down 6.15 points or 0.02% [3] Group 2: Index Adjustments - The Hang Seng Index announced changes to the calculation method of the Hang Seng Hong Kong Stock Connect Innovative Drug Selection Index, effective from the index review on June 30, 2025 [2] Group 3: Company Earnings - Cathay Pacific reported a 23.3% year-on-year increase in passenger numbers, carrying approximately 2.9 million passengers in June 2025 [8] - China Longgong expects a significant increase in net profit for the first half of 2025, estimated between RMB 590 million and RMB 665 million, representing a year-on-year increase of 29% to 45% [11] - Meitu Company anticipates a 65% to 72% year-on-year growth in adjusted net profit for the first half of 2025 [10] - Hengtou Securities expects a net profit of approximately RMB 239 million for the first half of 2025, a significant increase from RMB 53.87 million in the same period last year [14] - Huiri Group forecasts a consolidated profit of approximately HKD 250 million for the first half of 2025, up from HKD 37 million in the previous year [15] - Harbin Electric anticipates a net profit of approximately RMB 1.02 billion for the first half of 2025, a substantial increase from RMB 523 million in the same period last year [21] Group 4: Strategic Initiatives - Multiple departments released implementation details for cross-border asset management pilot business in Hainan Free Trade Port, allowing foreign investors to invest in various financial products [6] - Dongyangguang Jiangsu Pharmaceutical and Dongyangguang Pharmaceutical's merger agreement was approved by shareholders, with the new entity expected to be listed on August 7, 2025 [13] - Global New Materials International's acquisition of Merck's surface solutions business was approved by a special shareholder meeting, with a transaction value of EUR 665 million [17] Group 5: Industry Trends - GGII reported that China's power battery installation capacity reached approximately 288.1 GWh in the first half of 2025, a year-on-year increase of 44% [5] - The key product DB-1310 from InnoCare Pharma has received fast track designation from the FDA for treating advanced non-small cell lung cancer [20]

Core Viewpoint - The Hong Kong Dividend Low Volatility ETF (520890) has experienced a significant decline in both share count and total assets in 2024, indicating potential challenges in attracting investment [1][2]. Group 1: Fund Overview - The Hong Kong Dividend Low Volatility ETF (520890) was established on September 4, 2024, with an annual management fee of 0.50% and a custody fee of 0.10% [1]. - As of July 8, 2024, the fund had a total of 47.508 million shares and a total size of 66.131 million yuan, down from 123 million shares and 146 million yuan at the end of 2024, representing a 61.38% decrease in shares and a 54.81% decrease in size year-to-date [1]. Group 2: Liquidity and Performance - The cumulative trading amount for the ETF over the last 20 trading days was 150 million yuan, with an average daily trading amount of 7.4938 million yuan [1]. - The current fund manager, Li Qian, has managed the fund since its inception, achieving a return of 39.20% during her tenure [1]. Group 3: Top Holdings - The ETF's top holdings include Far East Horizon, Shougang Resources, Chongqing Rural Commercial Bank, VTECH Holdings, Kerry Properties, Minsheng Bank, Henderson Land, China Petroleum, Sinopec, and Fufeng Group, with respective holding percentages and market values detailed [2]. - The largest holding is Far East Horizon at 3.78%, followed closely by Shougang Resources at 3.72% [2].

Core Viewpoint - The corn starch industry in China is a crucial pillar of the agricultural product deep processing sector, exhibiting a mature supply-demand system with a balanced state in 2024, where production is projected to reach 37.99 million tons and apparent demand at 37.97 million tons, indicating a tight balance overall [1][13]. Group 1: Industry Overview - The corn starch industry has established a stable supply-demand structure, with production and demand closely aligned, reflecting a trend of "stable total volume and optimized structure" [1][13]. - The industry is transitioning from traditional scale expansion to high-quality development, with an increasing proportion of high-value-added products, demonstrating resilience [1][13]. - The corn starch is derived from corn kernels through various processes and is categorized into three types: regular corn starch, modified starch, and specialty corn starch, widely used in food processing, pharmaceuticals, textiles, and biodegradable materials [2][4]. Group 2: Policy Support - Recent national policies have significantly supported the corn starch industry, emphasizing green manufacturing and high-end product development, with specific encouragement for bio-based products and functional food additives [4]. - Local governments are also promoting the development of the corn starch deep processing industry, aiming for a stable planting area and a substantial industry scale by 2027 [4]. Group 3: Industry Chain - The corn starch industry in China features a complete industrial chain with a "dispersed upstream, concentrated midstream, and diversified downstream" structure [6]. - The midstream processing segment is highly concentrated, with key regions like Shandong and Hebei forming industrial clusters, while downstream applications are diversifying into traditional and emerging sectors [6]. Group 4: Market Dynamics - The corn production in China is vital, with a total output exceeding 294.92 million tons in 2024, accounting for over 40% of the total grain production, supported by increased planting area and yield [9]. - The demand for corn starch is robust across various sectors, with the food industry being the largest consumer, followed by starch sugar, paper, pharmaceuticals, and chemicals [11]. Group 5: Competitive Landscape - The competitive landscape of the corn starch industry is characterized by a concentration of leading firms, with the top five companies holding approximately 45% market share, while smaller firms focus on niche markets [19]. - The industry is evolving towards a "technology-driven, chain collaboration, and scenario-focused" competitive model, with leading companies integrating their operations from corn to starch to bio-based materials [19]. Group 6: Future Trends - The corn starch industry is undergoing a transformation driven by technological innovation, with advancements in smart manufacturing and green production methods [21]. - Market demand is shifting towards high-end and diversified applications, particularly in biodegradable materials and health-oriented products, with significant growth expected in these areas [22][23]. - The industry is also seeing increased integration and globalization, with leading firms expanding their operations and establishing a presence in international markets [24].