Core Insights - The Social Security Fund has invested in 264 stocks by the end of Q3, with 91 stocks held for over 8 consecutive quarters, indicating a focus on long-term investments [1][2] Group 1: Investment Trends - The Social Security Fund has increased its holdings in 30 out of the 91 continuously held stocks, with significant increases in stocks like Dongfang Tantalum (167.89%), Weifu High Technology (102.60%), and Anhui Wuwei High-tech (86.33%) [2] - Conversely, 42 stocks saw a reduction in holdings, with notable decreases in Xinji Energy (88.17%), Mingtai Aluminum (77.19%), and Sophia (70.50%) [2] Group 2: Sector Analysis - The 91 stocks held by the Social Security Fund are concentrated in the pharmaceutical, basic chemicals, and power equipment sectors, with 15, 9, and 8 stocks respectively [2] - Key stocks in the pharmaceutical sector include Woofu Biology, Aide Biology, and Chengyi Pharmaceutical, while the basic chemicals sector features Yangnong Chemical, Blue Sky Technology, and Zhongqi Co., Ltd. [2] Group 3: Performance Metrics - Among the 91 stocks, 65 reported year-on-year profit growth, with significant increases from companies like Dajin Heavy Industry (214.63%), Shennong Development (202.82%), and Sanmei Co., Ltd. (183.66%) [3] - Conversely, 25 stocks experienced profit declines, with Zhongqi Co., Ltd. (-622.16%), Vanadium Titanium Co., Ltd. (-181.13%), and Three Squirrels (-52.91%) showing the largest decreases [3] Group 4: Long-term Holdings - The longest-held stocks by the Social Security Fund include Woofu Biology and Yangnong Chemical, held for 44 quarters since Q4 2014 [1] - Other notable long-term holdings include China Jushi (35 quarters), Sun Paper (31 quarters), and New Xing Foundry (30 quarters) [1]

Group 1: Institutional Research on Popular Companies - The top twenty companies with the highest number of institutional research visits in the past 30 days include Rongbai Technology, Xinqianglian, Duofuduo, Hikvision, and Dangsheng Technology [12] - In the last five days, the most researched companies were Xinqianglian, Duofuduo, Baiya Shares, Taotao Vehicle, and Jereh Shares [12] - Among the top twenty companies researched in the past 30 days, 16 had ten or more rating agencies involved [12] Group 2: Major Shareholder Increase in A-Share Companies - From October 20 to October 24, 2025, no A-share companies announced significant shareholder increases [18] - From January 1 to October 24, 2025, a total of 285 companies announced significant shareholder increases, with 76 having ten or more rating agencies [19] - Companies with proposed increase amounts exceeding 1% of the latest market value include Xianhe Shares, Xinjie Energy, Zhongju Gaoxin, and Tunnel Shares [19] Group 3: A-Share Company Buyback Situation - From October 20 to October 24, 2025, 71 companies announced buyback progress, with 19 having ten or more rating agencies [23] - The companies with the highest expected buyback amounts as a percentage of market value include Huafa Shares, Guangzhou Restaurant, Ruoyu Chen, and China Jushi [23] - From January 1 to October 24, 2025, a total of 1,774 companies announced buyback progress, with 347 having ten or more rating agencies [24]

Group 1 - The company is exploring the development of PEEK materials and their potential application in humanoid robots [2] - The company's fiberglass products can be used in the manufacturing of certain structural components for humanoid robots [2] - Currently, the company has not directly engaged in the humanoid robot business due to the numerous processing and manufacturing steps required between fiberglass products and end-user applications [2]

Economic News - The 28th ASEAN Plus China, Japan, and South Korea Leaders' Meeting emphasized the importance of open cooperation and strategic alignment to enhance economic potential through environmental improvement, deepening industrial chain collaboration, and fostering new growth drivers [1] - Canadian Prime Minister Carney announced plans for significant domestic investment and trade diversification, aiming to double exports to non-U.S. markets over the next decade, exceeding CAD 300 billion [1] - From January to September, profits of large-scale industrial enterprises in China increased by 3.2% year-on-year, marking the highest growth rate since August of the previous year [1] - The China Logistics and Purchasing Federation reported that the total demand for food cold chain logistics in the third quarter reached 117 million tons, a year-on-year increase of 4.72% [1] - The International Monetary Fund (IMF) predicts that the U.S. government's debt burden may exceed that of Italy and Greece for the first time this century, with total debt projected to rise over 20% to 143.4% of GDP by the end of the decade [1] Company Insights - Rio Tinto Group and State Power Investment Corporation launched a pilot project for pure electric battery swap mining trucks at the Oyu Tolgoi copper mine in Mongolia, marking the first use of this technology in an open-pit mine [4] - Yongmaotai reported third-quarter revenue of CNY 1.655 billion, a year-on-year increase of 59.65%, with net profit soaring by 6319.92% to CNY 30.41 million [4] - Delin Hai's third-quarter revenue reached CNY 185 million, up 94.96% year-on-year, while net profit surged by 1322.74% to CNY 48.73 million [4] - Knight Dairy's third-quarter revenue was CNY 246 million, down 6.78%, but net profit increased by 189.26% to CNY 22.73 million [4] - Porsche, a subsidiary of Volkswagen Group, reported a third-quarter loss of EUR 966 million (approximately CNY 8 billion), leading to a 99% year-on-year decline in sales profit for the first three quarters [4] Industry Analysis - The 20th Central Committee of the Communist Party of China emphasized the importance of high-quality development and technological self-reliance as core foundations for future growth, aiming to transition from a follower to a leader in the global industrial chain [6][7] - The meeting highlighted the need to build a modern industrial system and strengthen the real economy, with a focus on becoming a manufacturing, quality, aerospace, transportation, and internet power [6] - The report suggests that the technology sector, particularly those related to self-reliance, will be a key area for investment, with a positive outlook for companies in this space [7] - The food and beverage sector is experiencing a shift towards lower-alcohol products to attract younger consumers, as evidenced by the introduction of new low-alcohol products at recent trade fairs [10][11] - The logistics industry is seeing a recovery in single-ticket revenue, with major players like Shentong and Yunda reporting significant increases in revenue per ticket [22][23] Investment Recommendations - The report recommends focusing on technology sectors, particularly those with strong performance indicators, as the market shifts back to fundamentals with the release of quarterly reports [7] - In the food and beverage sector, attention is drawn to leading companies like Guizhou Moutai, which are showing signs of recovery despite short-term price fluctuations [11] - For the chemical industry, investment opportunities are identified in sectors benefiting from improved supply-demand dynamics and those driven by capital expenditure and R&D [27]

Summary of China Jushi 3Q25 Post Result Call Company Overview - **Company**: China Jushi (Ticker: 600176.SS) - **Industry**: Greater China Materials - **Market Cap**: Rmb63,129.5 million - **Current Share Price**: Rmb15.77 (as of October 24, 2025) - **Price Target**: Rmb19.20 - **Stock Rating**: Overweight Key Takeaways Capacity and Production - Limited capacity increases are expected in 2026, including: - 200kt new capacity in Huai'an starting mid-2026 - 60kt incremental capacity from the upgrade of the Tongxiang line - 100kt new electronic fabric capacity in Huai'an commencing in 2026 - Construction of 200kt capacity in Chengdu expected to start late 2025 or early 2026 - Overall supply increase for 2026 will be limited due to maintenance on the 180kt line in Tongxiang and potential maintenance in Egypt [2][4] Product Development - High-end electronic fabric is projected to reach commercial production in 1Q26 - Generation one and two low-dielectric electronic fabric products are under innovation, with generation 1 products currently in the certification process [3] Financial Performance - Net profit per ton (NP/t) slightly decreased QoQ in 3Q25 to over Rmb800/t, attributed to lower earnings from Europe and the US - Roving sales volume increased by 10% YoY to 809.7kt, while electronic fabric sales volume surged 73% YoY and 24% QoQ to 294 million meters - The percentage of overseas sales volume decreased to approximately one-third, mainly due to softened demand from the EU [4][8] Market Demand - Demand for solar modules is increasing but at a slower pace, with expectations to surpass 3GW in 2026 compared to around 2GW in 2025 - The slow demand increase is attributed to intense competition with aluminum frame producers, as aluminum is recyclable [4] Pricing and Costs - Average selling prices (ASP) for roving and electronic fabric increased by 6% YoY and 5% YoY, but slightly dropped QoQ due to higher industry supply - Costs declined in 3Q25 due to technical upgrades rather than management expense cuts - Price increases are anticipated in 2026 to counteract potential higher costs, including labor and raw material prices [8] Risks and Considerations - **Upside Risks**: - Better-than-expected demand - Decreasing raw material prices - **Downside Risks**: - Global demand slowdown - Rising raw material prices - Industry overcapacity [11] Conclusion China Jushi is positioned for moderate growth with planned capacity expansions and product innovations. However, the company faces challenges from competitive pressures and fluctuating demand in key markets. The financial outlook remains cautiously optimistic, supported by strong sales volumes and strategic pricing adjustments.

Core Viewpoint - The company plans to repurchase 30 to 40 million shares with a budget of up to 880 million yuan for equity incentives, ensuring transparency and fairness in the process [1] Group 1: Share Repurchase Details - The company has obtained a commitment letter for a special loan from financial institutions to fund the share repurchase [1] - The repurchase will be conducted in accordance with the regulations set by the China Securities Regulatory Commission and the Shanghai Stock Exchange [1] - The company will disclose information regarding the progress of the share repurchase in a timely manner [1]

Investment Rating - The report maintains an "Overweight" rating for the construction materials industry [1] Core Views - Short-term easing of US-China trade tensions and anticipation of economic work conference guidance [1] - Mid-term expectations for improved profitability in the fiberglass sector [2] - The construction materials sector has shown a 1.60% increase in the past week, underperforming compared to the broader market indices [4] Summary by Sections 1. Bulk Construction Materials Fundamentals and High-Frequency Data - **Cement**: The national average price for high-standard cement is 348.2 RMB/ton, up 1.3 RMB/ton from last week but down 63.0 RMB/ton year-on-year. The average cement inventory ratio is 67.9%, up 0.6 percentage points from last week [11][12][18]. - **Glass**: The average price for float glass is 1243.7 RMB/ton, down 57.3 RMB/ton from last week and down 9.3% year-on-year. Inventory levels have increased, indicating weak demand [44][50]. - **Fiberglass**: The market for non-alkali fiberglass remains stable, with prices holding steady. The average price for 2400tex non-alkali winding direct yarn is between 3250-3700 RMB/ton [5]. 2. Industry Dynamics Tracking - **Investment Trends**: Fixed asset investment growth has slowed, indicating weakness in traditional sectors like real estate and infrastructure. The focus is shifting towards technology and domestic consumption [4]. - **Market Recommendations**: The report suggests focusing on technology sectors benefiting from domestic cycles and improving supply chains in the real estate sector [4]. 3. Weekly Market Review and Sector Valuation - The construction materials sector has underperformed compared to the broader market indices, with a 1.60% increase against a 3.24% rise in the CSI 300 index [4]. - The report highlights the importance of industry self-discipline and the potential for price stabilization in the cement sector due to supply-side adjustments [5][11]. 4. Price and Inventory Trends - **Cement Prices**: The report notes a slight increase in cement prices in certain regions, with expectations for continued price fluctuations due to seasonal demand [11][12]. - **Glass Inventory**: The increase in glass inventory suggests a need for demand recovery to stabilize prices [50]. 5. Recommendations for Key Companies - The report recommends focusing on leading companies in the cement and fiberglass sectors, such as China National Building Material and China Jushi, which are expected to benefit from market adjustments and technological advancements [5].

Market Overview - The glass and fiberglass sector increased by 1.58% compared to the previous trading day, with Honghe Technology leading the gains [1] - The Shanghai Composite Index closed at 3996.94, up 1.18%, while the Shenzhen Component Index closed at 13489.4, up 1.51% [1] Stock Performance - Honghe Technology (603256) closed at 34.98, up 4.08%, with a trading volume of 264,900 shares and a transaction value of 914 million [1] - Qibin Group (601636) closed at 7.10, up 3.35%, with a trading volume of 368,400 shares and a transaction value of 259 million [1] - Changhai Co., Ltd. (300196) closed at 15.05, up 2.80%, with a trading volume of 190,100 shares and a transaction value of 136 million [1] - International Composite Materials (301526) closed at 6.31, up 2.77%, with a trading volume of 199,150 shares and a transaction value of 626 million [1] - China Jushi (600176) closed at 16.05, up 1.78%, with a trading volume of 537,900 shares and a transaction value of 872 million [1] Capital Flow - The glass and fiberglass sector saw a net inflow of 206 million from main funds, while retail investors experienced a net outflow of 127 million [2] - The main funds' net inflow for Honghe Technology was 58 million, while retail investors had a net outflow of approximately 30 million [3] - The net inflow for Qibin Group from main funds was 6.76 million, with a significant net outflow from retail investors of about 2.96 million [3]

Core Insights - The Social Security Fund has invested in 157 stocks by the end of Q3, with 57 stocks held for over 8 consecutive quarters, indicating a preference for long-term investments [1][2] Group 1: Investment Trends - The Social Security Fund has increased its holdings in 23 of the 57 continuously held stocks, with significant increases in stocks like Dongfang Tantalum (167.89%), Wanwei High-tech (86.33%), and Sumida (70.56%) [2] - Conversely, 21 stocks saw a reduction in holdings, with notable decreases in Xinji Energy (88.17%), Mingtai Aluminum (77.19%), and Weifeng Electronics (64.38%) [2] Group 2: Sector Distribution - The 57 stocks held by the Social Security Fund are concentrated in the pharmaceutical, basic chemicals, and non-ferrous metals sectors, with 8, 6, and 6 stocks respectively [2] - The pharmaceutical sector includes stocks like Iwu Biological, Aide Biological, and Huate Dain [2] - The basic chemicals sector features stocks such as Lanxiao Technology, Zhongqi Co., and Wanwei High-tech [2] Group 3: Performance Metrics - Among the 57 stocks, 41 reported a year-on-year increase in net profit, with significant growth from companies like Shennong Development (202.82%), Wanwei High-tech (89.77%), and Chifeng Gold (86.21%) [3] - 15 stocks experienced a decline in net profit, with the largest decreases from Zhongqi Co. (622.16%), Vanadium Titanium Co. (181.13%), and Huawang Technology (49.46%) [3] - The sustainability of performance is observed in 23 stocks that have shown consistent year-on-year net profit growth over the past three years [3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company achieved a revenue of 13.9 billion yuan in the first three quarters of 2025, representing a year-on-year growth of 20%. The net profit attributable to shareholders was 2.57 billion yuan, up 68% year-on-year, while the net profit excluding non-recurring items reached 2.61 billion yuan, marking a 126% increase [3][4]. - In the third quarter, the company reported a revenue of 4.8 billion yuan, a 23% increase year-on-year, with a net profit of 880 million yuan, up 54% year-on-year, and a net profit excluding non-recurring items of 910 million yuan, reflecting a 73% increase [3][4]. - The company is experiencing a recovery in electronic fabric demand, driven by the automotive and consumer electronics sectors, alongside a low base from the previous year [10]. Summary by Sections Financial Performance - The company's gross margin for the first three quarters was approximately 32.4%, an increase of 8.7 percentage points year-on-year. The gross margin for the third quarter was about 32.8%, up 4.6 percentage points year-on-year [10]. - The company has effectively reduced costs, with the expense ratio for the first three quarters at about 9.0%, down 1.5 percentage points year-on-year [10]. Market Dynamics - The decline in fiberglass prices from May to July was attributed to weakened export demand and increased supply. The actual tariffs imposed on fiberglass exports to the U.S. have reached 60%, impacting the company's export capacity [10]. - The report anticipates that fiberglass prices will stabilize in the second half of 2025, with potential upward momentum in 2026 due to limited new production capacity and expected recovery in overseas demand [10]. Strategic Initiatives - The company plans to repurchase 30 to 40 million shares, accounting for 0.75% to 1.00% of the total share capital, with a maximum repurchase price of 22 yuan per share [10]. - The company is actively positioning itself in the AI electronic fabric market, indicating a positive outlook for its operations in the coming years [10].