Core Viewpoint - A-shares have lower trading costs and better market liquidity compared to H-shares, with a current premium of about 20% for A-shares as indicated by the Hang Seng AH Premium Index (HSAHP) being above 120. However, certain companies like CATL have shown a reverse phenomenon where H-shares are priced higher than A-shares [2][4]. Group 1: Market Dynamics - The phenomenon of H-shares trading at a premium over A-shares is attributed to the smaller market capitalization of H-shares compared to A-shares, leading to relative scarcity in liquidity [5]. - Among the six companies exhibiting this "inversion," three are newly listed, resulting in lower liquidity for H-shares, which can lead to inflated prices due to concentrated holdings by large institutions [5][6]. - As institutional investors gradually exit their positions, the liquidity of H-shares is expected to increase, potentially narrowing the premium of H-shares over A-shares [5]. Group 2: Characteristics of A-H Share Companies - Companies with inverted pricing typically share common traits: they are large enterprises with stable operating histories and solid financials, often in traditional industries like finance and energy [6]. - The valuation of these companies tends to be higher in the A-share market, reflecting differing expectations from overseas investors regarding future growth potential [6][8]. Group 3: Foreign Investment Preferences - Foreign investors prefer industry leaders that have a competitive edge in the market, which are often scarce in the international market [8]. - These leading companies usually possess strong brand recognition, stable profitability, and good governance structures, aligning with foreign investors' long-term investment criteria [8][9]. - The preference for H-shares over A-shares is also influenced by the perceived monopolistic characteristics of certain companies, which can lead to higher valuations in the H-share market [9].

Core Points - The 20th "Golden Roundtable Award" ceremony for Chinese listed companies was held in Jiangyin, attended by over 200 guests including executives, scholars, and media representatives, highlighting achievements in corporate governance [1][2][3] - The event recognized over 100 listed companies with a total market value exceeding 10 trillion, including 16 companies with market values over 100 billion [1][2] Group 1 - The opening speech by Li Zhenqiang emphasized the importance of the "Golden Roundtable Award" as a platform for consensus and wisdom, aiming to support the transformation and upgrading of Chinese listed companies [2][3] - Jiangyin's Vice Mayor Ji Zhen highlighted the city's achievements as a manufacturing hub, with 66 listed companies and a total market value exceeding 300 billion, positioning Jiangyin as a leader among county-level cities [5][6] Group 2 - Liu Yunhong, a professor, discussed the development of corporate governance rules in China, identifying six key issues in current practices and advocating for a shift from "formal compliance" to "substantive effectiveness" [12] - Zhu Zhengyi shared insights from Longji Technology's acquisition of Xingke Jinpeng, emphasizing the strategic role of corporate secretaries in governance [12][13] - Su Mei analyzed the trends in the A-share market under the registration system, stressing the importance of value management for high-quality development [15] Group 3 - The award ceremony recognized outstanding companies and individuals in various categories, including "Most Influential Independent Director" and "Excellent Board of Directors," showcasing achievements in governance and value creation [18][20][33] - The "Best Board of Directors" award was presented to leading companies such as Weichai Power and China Ping An, reflecting their exemplary governance practices and strategic foresight [33][36]

Core Viewpoint - The phenomenon of "AH share premium inversion" is observed in six companies, where H-shares are priced higher than A-shares, attributed to low liquidity and foreign investors' preference for industry leaders [1][2]. Group 1: Market Dynamics - The Heng Seng AH Share Premium Index (HSAHP) remains above 120, indicating a 20% premium of A-shares over H-shares [1]. - The six companies experiencing this inversion include CATL, China Merchants Bank, Hengrui Medicine, Weichai Power, WuXi AppTec, and Midea Group [2]. - The market sees a preference for newly listed stocks in the H-share market, which have lower liquidity, leading to higher valuations [2]. Group 2: Liquidity and New Listings - The "inversion" stocks are characterized by a high proportion of newly listed shares, with three of the six companies listed for less than a year [2]. - The market capitalization of H-shares is often significantly smaller than that of A-shares, contributing to the liquidity scarcity and price inversion [2]. - As institutional investors gradually exit their IPO allocations, the liquidity in the H-share market is expected to increase, potentially narrowing the premium [2]. Group 3: Foreign Investment Preferences - Foreign investors show a strong preference for industry leaders that have established market positions and stable financials [3][4]. - These companies typically operate in traditional sectors such as finance, energy, and infrastructure, which have predictable profit models [3]. - The preference for H-shares is also driven by the perception of higher growth potential and better governance structures in these companies [4]. Group 4: Examples of Inversion - BYD and China Merchants Bank are highlighted as typical examples of companies where H-shares occasionally exhibit a premium over A-shares [5]. - The presence of monopolistic characteristics in H-shares can attract foreign investment, as these companies are often seen as irreplaceable in the global market [5].

Group 1 - The core viewpoint is that the heavy truck industry demand growth is expected to slow down to a year-on-year increase of 3% in 2026, following a significant growth of 21% in 2025, primarily due to a high base formed by accelerated sales since mid-2025 [1][2] - Despite the slowdown in the heavy truck industry, the company Weichai Power (02338) is anticipated to benefit from explosive growth in its data center backup power engine business [1][2] - Weichai Power's total engine sales are projected to grow by 8% in 2025 and 3% in 2026, with profit margin expansion expected due to sustained high demand for heavy trucks and increased contribution from high-margin data center engines [1][2] Group 2 - The institution has raised its earnings forecast for 2025E-2027E by 1-5% based on the latest industry predictions and has rolled forward the valuation benchmark year to 2026E [1][2] - The target prices for A-shares and H-shares have been adjusted upwards to RMB 22.3 and HKD 21.9, respectively, based on a sum-of-the-parts valuation [1][2] - The institution maintains a "Buy" rating for Weichai Power [1][2]

Core Viewpoint - 招银国际 has raised the target price for Weichai Power (02338) by 12% from HKD 19.5 to HKD 21.9, maintaining a "Buy" rating [1] Group 1: Earnings Forecast - The earnings forecast for 2025-2027 has been increased by 1-5% based on the latest industry predictions [1] - The heavy truck industry demand growth is expected to slow to a year-on-year increase of 3% in 2026, primarily due to a high base formed by accelerated sales growth since mid-2025 [1] Group 2: Business Growth - The company is expected to continue benefiting from explosive growth in the data center backup power engine business [1] - Total engine sales (across all categories) are projected to grow by 8% and 3% in 2025 and 2026, respectively, with profit margin expansion anticipated [1] - The sustained high demand for heavy trucks in 2026 and the increased contribution from high-margin data center engines are key drivers for this growth [1]

Core Viewpoint - 招银国际 has raised the target price for Weichai Power (000338)(02338) by 12% from HKD 19.5 to HKD 21.9, maintaining a "Buy" rating [1] Company Summary - The firm has adjusted its profit forecasts for Weichai Power for the years 2025-2027 upwards by 1-5% based on the latest industry predictions [1] - The company is expected to benefit from explosive growth in the data center backup power engine business [1] - Total engine sales for the company are projected to grow by 8% and 3% in 2025 and 2026 respectively, with profit margin expansion anticipated due to sustained high demand in the heavy truck sector and increased contribution from high-margin data center engines [1] Industry Summary - The heavy truck industry demand growth is expected to slow to a year-on-year increase of 3% in 2026, primarily due to a high base formed by accelerated sales growth since mid-2025 [1]

Core Insights - A-shares have lower trading costs and better market liquidity compared to H-shares, with a current premium of approximately 20% for A-shares as indicated by the Hang Seng AH Premium Index (HSAHP) being above 120 [1][2] - A peculiar situation has arisen where H-shares of certain companies, such as CATL, are trading at higher prices than their A-shares, attributed to factors like limited liquidity and the preference of overseas investors for industry leaders [1][2][3] Group 1: Market Dynamics - The six companies experiencing H-share price premiums over A-shares include CATL, China Merchants Bank, Hengrui Medicine, Weichai Power, WuXi AppTec, and Midea Group [2] - The phenomenon of H-share price premiums is linked to the smaller market capitalization of H-shares compared to A-shares, leading to relative scarcity in liquidity [2][3] - Newly listed companies in the H-share market tend to have lower trading volumes, which can lead to inflated prices due to concentrated holdings by large institutions [2][3] Group 2: Investor Preferences - Foreign investors show a preference for industry leaders that have established market positions and stable financials, often leading to higher valuations in the H-share market [4][5] - Companies with strong brand recognition and stable profitability are more likely to attract foreign investment, as these factors align with the long-term investment strategies of international investors [4][5] - The preference for H-shares over A-shares is also influenced by the perceived growth potential and governance standards of the companies involved [4][5] Group 3: Specific Company Examples - CATL's H-shares were observed to have a premium of over 30% shortly after listing, which has since narrowed to approximately 13% as liquidity increased [2] - Other examples of companies with close pricing between H-shares and A-shares include BYD and China Merchants Bank, reflecting positive market sentiment regarding their growth prospects and governance [5]

Core Insights - A-shares have lower trading costs and better market liquidity compared to H-shares, with an overall premium of 20% for A-shares as indicated by the Hang Seng AH Premium Index (HSAHP) remaining above 120 [1][2] - A peculiar situation has arisen where H-shares of certain companies, such as CATL, are trading at higher prices than their A-shares, attributed to factors like limited liquidity and the preference of overseas investors for industry leaders [1][2][3] Group 1: Market Dynamics - The six companies experiencing H-share price premiums over A-shares include CATL, China Merchants Bank, Hengrui Medicine, Weichai Power, WuXi AppTec, and Midea Group, with others like Zijin Mining and BYD showing closer price alignment [2][3] - The phenomenon of "inverted pricing" is largely due to the smaller market capitalization of H-shares compared to A-shares, leading to relative scarcity in liquidity which drives up prices [2][3] Group 2: Investor Preferences - Foreign investors show a strong preference for industry leaders that are scarce in the international market, often leading to higher valuations for these companies in H-shares [4][5] - Companies with stable financials and established operational histories, particularly in traditional sectors like finance and energy, tend to attract more foreign investment, reflecting differing growth expectations between domestic and international investors [3][4] Group 3: Future Outlook - As large institutional investors gradually exit their positions, the liquidity of H-shares is expected to increase, potentially narrowing the premium of H-shares over A-shares [2][4] - The case of CATL illustrates this trend, where its H-share premium over A-shares decreased from over 30% to approximately 13% following the unlocking of shares held by certain investors [2][4]

Group 1: Heavy Truck Market Overview - In November 2025, China's heavy truck market is expected to sell around 100,000 units, a decrease of approximately 6% month-on-month from October 2025, but a significant increase of about 46% year-on-year from 68,500 units [1] - The heavy truck market has experienced eight consecutive months of growth from April to November, with an average growth rate of 42% [1] - Strong terminal sales growth, driven by the policy on scrapping old operational trucks, has supported the high wholesale sales in the fourth quarter [1] Group 2: New Energy and Gas Heavy Trucks - New energy heavy trucks have set new records, while natural gas heavy trucks have seen four consecutive months of growth, each exceeding 20,000 units for three months [1] - Domestic diesel heavy truck terminal sales in November are expected to remain stable [1] Group 3: Industry Outlook and Recommendations - CITIC Construction Investment has reported a stable outlook for domestic heavy truck sales and continued growth in exports, highlighting the importance of ongoing domestic subsidies and opportunities for leading companies to exceed performance expectations [1] - The release of replacement demand in 2026 and sustained export growth are expected to support a high and stable industry total [1] Group 4: Company-Specific Insights - China National Heavy Duty Truck Group - In the first half of 2025, China National Heavy Duty Truck Group achieved sales of 9,376 new energy heavy trucks, a year-on-year increase of 220.3%, with a market share of 11.8% [2] - The company plans to distribute a dividend of 0.68 yuan per share, totaling 1.877 billion yuan, maintaining a high dividend payout ratio of 54.8% [2] - In the first half of 2025, heavy truck exports to non-Russian regions reached 143,000 units, a year-on-year increase of 35.8%, supporting overseas demand growth [2] Group 5: Company-Specific Insights - Weichai Power - Weichai Power anticipates a 10% recovery in industry sales in 2025, potentially reaching 1 million units, benefiting from scrapping subsidies [3] - The company delivered 5,000 large-bore engines in the first half of the year, a year-on-year increase of 41%, with a projected median annual sales of 11,000 large-bore engines [3] - The company delivered 10,000 new energy heavy trucks, achieving a market share of approximately 12.6%, with expectations for significant growth in the second half of the year [3]

Industry Overview - In November 2025, China's heavy truck market sold approximately 100,000 units, a month-on-month decrease of about 6% from October 2025, but a significant year-on-year increase of approximately 46% from 68,500 units in the same month last year [1] - The heavy truck market has experienced eight consecutive months of growth, with an average growth rate of 42% from April to November 2025 [1] - Strong terminal sales growth, driven by the policy promoting the scrapping and updating of old operating trucks, has supported domestic demand [1] New Energy and Gas Trucks - New energy heavy trucks have set new records, while natural gas heavy trucks have seen four consecutive months of growth, exceeding 20,000 units for three consecutive months [1] - Domestic diesel heavy truck terminal sales in November are expected to remain stable [1] Company Insights China National Heavy Duty Truck Group (China National Heavy Duty Truck) - In the first half of 2025, the company achieved sales of 9,376 new energy heavy trucks, a year-on-year increase of 220.3%, surpassing the industry growth rate, with a market share of 11.8% [2] - The company plans to distribute a dividend of 0.68 yuan per share, totaling 1.877 billion yuan, maintaining a high dividend payout ratio of 54.8% [2] - In the first half of 2025, heavy truck exports to non-Russian regions reached 143,000 units, a year-on-year increase of 35.8%, supporting overseas demand growth [2] Weichai Power - The scrapping subsidy is expected to stimulate a 10% recovery in industry sales in 2025, reaching 1 million units, benefiting the company as a leading heavy truck engine manufacturer [3] - The company delivered 5,000 large-bore engines in the first half of 2025, a year-on-year increase of 41%, with a projected total delivery of 11,000 large-bore engines for the year [3] - The company delivered 10,000 new energy heavy trucks, capturing a market share of approximately 12.6%, with expectations of 2-3 times growth in new energy products in the second half of the year [3]