Core Points - The State-owned Assets Supervision and Administration Commission (SASAC) released the list of A-level central enterprises for the 2024 performance assessment and the 2022-2024 term [1][2] - A total of 50 central enterprises were recognized as A-level for the 2024 assessment, including State Grid Corporation, China National Petroleum Corporation, and China Mobile Communications Group [1][4] - For the 2022-2024 term, another 50 enterprises were awarded A-level status, with notable mentions including China Merchants Group, China Mobile, and China Ocean Shipping Group [1][7] - SASAC also published the list of outstanding enterprises in technological innovation for 2024, with 28 companies recognized, an increase from 26 last year [1][11] Group 1: 2024 A-Level Enterprises - The 2024 A-level enterprises include: - State Grid Corporation - China National Petroleum Corporation - China Mobile Communications Group - China Energy Investment Corporation - China National Offshore Oil Corporation - China Power Investment Corporation - China Southern Power Grid Co., Ltd. - China Huaneng Group - China Huadian Corporation - China Petroleum and Chemical Corporation - China National Nuclear Corporation - China Telecom Group - China Ocean Shipping Group - China Resources (Group) Co., Ltd. - China Three Gorges Corporation - China Aluminum Corporation - China General Nuclear Power Group - China Merchants Group - China Electronics Technology Group Corporation - China National Petroleum and Natural Gas Pipeline Group - China United Network Communications Group - China Aerospace Science and Technology Corporation - China Datang Corporation - China CRRC Corporation Limited [4][5][6] Group 2: 2022-2024 Term A-Level Enterprises - The A-level enterprises for the 2022-2024 term include: - China Merchants Group - China Mobile Communications Group - China Ocean Shipping Group - China National Offshore Oil Corporation - China Energy Investment Corporation - China Three Gorges Corporation - China National Petroleum Corporation - China Coal Energy Group - China Petroleum and Chemical Corporation - China Huaneng Group - China Power Investment Corporation - China Huadian Corporation - China Electronics Technology Group Corporation - China First Automobile Group - China National Petroleum and Natural Gas Pipeline Group - State Grid Corporation - China Telecom Group - China Development Investment Corporation - China Shipbuilding Industry Corporation - China General Nuclear Power Group - China Southern Power Grid Co., Ltd. - China Aluminum Corporation - China Weapon Industry Group - China United Network Communications Group - China Weapon Equipment Group - China Datang Corporation - China Minmetals Corporation - China CRRC Corporation Limited - China National New Holding Co., Ltd. - China Aviation Industry Corporation - China Baowu Steel Group - China Resources (Group) Co., Ltd. - China Aerospace Science and Technology Corporation - China Construction Group - China Nonferrous Metal Mining Group - China Dongfang Electric Corporation - COFCO Corporation - China Aviation Engine Group - China Chemical Engineering Group - China Aviation Group - China Coal Science and Technology Group - China Southern Airlines Group - China Electrical Equipment Group - China Machinery Industry Group - China Electronics Information Industry Group - China Communications Construction Group - China Eastern Airlines Group - China Steel Research Technology Group - China Railway Communication Signal Group [7][8][9] Group 3: 2024 Technological Innovation Outstanding Enterprises - The 2024 outstanding enterprises in technological innovation include: - China Petroleum and Chemical Corporation - State Grid Corporation - China Shipbuilding Industry Corporation - China Mobile Communications Group - China Electronics Technology Group Corporation - China National Petroleum Corporation - China Steel Research Technology Group - China Aviation Industry Corporation - China Telecom Group - China CRRC Corporation Limited - China Weapon Industry Group - China National Nuclear Corporation - China Southern Power Grid Co., Ltd. - China Machinery Industry Group - China Energy Investment Corporation - China Aerospace Science and Technology Corporation - China United Network Communications Group - China Aerospace Science and Industry Corporation - China Aviation Engine Group - China Machinery Science Research Institute Group - China Academy of Research and Development of Technology - China Weapon Equipment Group - China Information Communication Technology Group - China Dongfang Electric Corporation - China Electronics Information Industry Group - China Coal Science and Technology Group - State Power Investment Corporation - China Aluminum Corporation [11][12]

Domestic News - The Yarlung Tsangpo River downstream hydropower project officially commenced on July 19 in Nyingchi, Tibet, with a total investment of approximately 1.2 trillion yuan, aiming to construct five tiered power stations primarily for power transmission and local consumption [2] - The Ministry of Finance's Deputy Minister Liao Min announced at the G20 finance ministers and central bank governors meeting that China will implement a more proactive fiscal policy in the second half of the year and expand high-level opening-up [2] Industry News - The State-owned Assets Supervision and Administration Commission (SASAC) released the list of A-level enterprises for the 2024 annual performance assessment, including major companies such as State Grid Corporation of China and China National Petroleum Corporation [3] - The Lixun Robot Headquarters project broke ground in Changshu with a total investment of 5 billion yuan, expected to achieve an annual output value of 10 billion yuan upon completion [4] - FAW Qiji New Power Technology Co., Ltd., a wholly-owned subsidiary of FAW Group, held its inaugural conference in Changchun, focusing on developing leading technologies in new energy powertrains [4]

根据《中央企业负责人经营业绩考核办法》，2024年度和2022-2024年任期中央企业负责 人经营业绩考核结果已经国务院国资委党委会议审议通过。2024年度和2022-2024年任期 中央企业负责人经营业绩考核A级企业名单如下： 2024年度中央企业负责人 经营业绩考核A级企业 (50家) 1.国家电网有限公司 2.中国石油天然气集团有限公司 3.中国移动通信集团有限公司 4.国家能源投资集团有限责任公司 5.中国海洋石油集团有限公司 6.国家电力投资集团有限公司 7.中国南方电网有限责任公司 8.中国华能集团有限公司 9.中国华电集团有限公司 10.中国石油化工集团有限公司 11.中国核工业集团有限公司 12.中国电信集团有限公司 13.中国远洋海运集团有限公司 14.华润(集团)有限公司 15.中国长汀三峡集团右限公司 16.中国铝业集团有限公司 17.中国广核集团有限公司 18.招商局集团有限公司 19.中国电子科技集团有限公司 20.国家石油天然气管网集团有限公司 21.中国联合网络通信集团有限公司 22.中国航天科技集团有限公司 23.中国大唐集团有限公司 24.中国中车集团有限公司 25.中国中煤 ...

Group 1 - The international standard IEC 62840-2:2025 CMV for electric vehicle battery swapping systems has been officially released, marking a significant step towards the standardization and safety of the global electric vehicle battery swapping industry, and recognizing China's technological solutions in the new energy vehicle sector [1][4] - The standard focuses on the safety of battery swapping systems, ensuring the safety of personnel and equipment during the battery swapping process, and is applicable to electric vehicle battery swapping systems connected to the power supply network [4] - The new standard includes safety requirements for portable battery swapping systems and expands its scope to light vehicles, covering scenarios for two-wheeled and three-wheeled electric vehicles, enhancing interoperability requirements and reinforcing electrical, mechanical, and data safety protections [4] Group 2 - The standard was published by the International Electrotechnical Commission (IEC) in a commentary version (CMV), facilitating quick understanding and comparison of version differences for users, and aiding in the consistent testing of battery swapping products for entry into different national markets [5] - The company actively participated in international standardization collaboration during the standard's preparation, with experts contributing technical solutions to help reach a consensus among global experts [5] - The company aims to leverage the release of this standard to strengthen the integration of "standards-research-development-industry," enhancing China's influence in global standard governance and contributing to global energy transition and low-carbon transportation development [5]

Core Viewpoint - The China Securities Dividend Return Index has shown a mixed performance, with a recent increase but a decline year-to-date, reflecting the overall performance of high dividend-paying companies in the market [2]. Group 1: Index Performance - The China Securities Dividend Return Index rose by 2.66% in the past month, decreased by 0.78% over the last three months, and has fallen by 2.89% year-to-date [2]. - The index is based on companies with high cumulative dividend financing ratios and average dividend financing ratios over the past three years, with a base date of December 31, 2004, set at 1000.0 points [2]. Group 2: Index Holdings - The top ten weighted companies in the index include Kweichow Moutai (14.72%), Wuliangye (9.37%), Gree Electric (8.3%), Yili (6.69%), Sany Heavy Industry (4.33%), Wanhua Chemical (4.0%), Haier Smart Home (3.74%), Fuyao Glass (3.51%), Guodian Nanjing Automation (3.38%), and Luzhou Laojiao (3.38%) [2]. - The index's holdings are primarily from the Shanghai Stock Exchange (62.84%) and the Shenzhen Stock Exchange (37.16%) [2]. Group 3: Industry Composition - The industry composition of the index holdings includes Consumer Staples (39.27%), Consumer Discretionary (18.78%), Industrials (13.74%), Materials (10.27%), Health Care (6.42%), Information Technology (3.73%), Energy (3.32%), Communication Services (3.26%), and Utilities (1.22%) [2]. Group 4: Sample Adjustment Criteria - The index samples are adjusted annually, with criteria including a cash dividend to net profit ratio of at least 30%, ranking in the top 90% of average total market capitalization, and ranking in the top 90% of average trading volume over the past year [3]. - Each sample adjustment typically does not exceed 20%, unless more than 20% of the original samples are disqualified based on the cash dividend criteria [3]. - Weight factors are adjusted in line with sample changes, with fixed weights generally maintained until the next scheduled adjustment [3].

Summary of Conference Call Notes Industry Overview - The focus is on the ultra-high voltage (UHV) projects in the domestic power equipment sector, with a notable slowdown in project approvals until late June when two UHV projects were approved in quick succession. [1] - The expectation is for a significant acceleration in project approvals in the second half of the year, presenting a potential investment opportunity in related power equipment stocks. [1] Key Insights and Arguments - The total market size for domestic power grid equipment companies is estimated at approximately 1.8 trillion yuan, with a year-on-year growth rate of about 13%. [3] - The investment from the State Grid and Southern Grid is projected to be around 800 billion yuan, with UHV investments expected to range between 100 billion to 140 billion yuan annually. [3][4] - The UHV sector is highlighted as having high attention compared to other investment demands, with a simplified research framework focusing on three keywords: ideal, reality, and deviation. [4][5] - The UHV investment for 2023 is expected to exceed 500 billion yuan, with significant project approvals anticipated in the latter part of the year. [6][9] Future Projections - For 2025, the UHV investment is projected to surpass 1.5 trillion yuan, indicating a growth trajectory from the 1.2 trillion yuan level in 2023. [9][10] - The contribution of major companies like Pinggao, Xudong, and NARI to profits is expected to increase, with profit contributions from UHV projects projected to rise by about 10% from 2023 to 2027. [11] Risks and Considerations - Several risks were identified, including regional challenges due to the length and complexity of the projects, environmental assessments, limited manpower from the State Grid, and potential changes in financing schemes. [13][14][15] - The approval and construction timelines are critical, with expectations that projects approved by October could lead to significant bidding for equipment by the end of the year. [9][11] Additional Important Points - The conference emphasized the importance of monitoring the approval pace and the subsequent impact on equipment orders and profit contributions for companies involved in UHV projects. [2][12] - The overall sentiment is optimistic regarding the UHV sector, with recommendations for investment in companies that are currently undervalued. [15]

Group 1 - Snam plans to acquire nearly 25% of OGE, Germany's largest natural gas network operator, but faces scrutiny from the German government due to concerns over Chinese influence [1][2] - The acquisition is valued at €920 million, with Snam purchasing 24.99% of Vier Gas Holding, which owns all shares of OGE [1] - OGE operates a pipeline network of approximately 12,000 kilometers and has an annual gas transmission capacity of about 21 billion cubic meters, serving over 400 end customers [1] Group 2 - The German Federal Ministry of Economics and Energy has initiated a thorough investment review process to assess potential risks to public order and safety from the transaction [2] - Germany's recent approach towards China has been characterized by a "de-risking" strategy, categorizing infrastructure, especially energy, as critical and sensitive [2][3] - The trend of "pan-security" has emerged, where even ordinary research cooperation and cultural exchanges are subjected to scrutiny, reflecting a decline in trust towards China [3]

Core Viewpoint - The State-owned Assets Supervision and Administration Commission (SASAC) has recognized Guodian NARI (国电南瑞) as a "benchmark" for the "Science and Technology Reform Action" for the second consecutive year, highlighting its commitment to innovation and reform in state-owned enterprises [1][2]. Group 1: Company Achievements - Guodian NARI has been awarded the "Science and Technology Reform Benchmark" by SASAC for its continuous efforts in reform and innovation since being included in the program in 2023 [1]. - The company has established a research organization system with a "one committee, two levels, and three poles" structure, and has set up an academic exchange platform in collaboration with universities [1]. - Guodian NARI's R&D investment intensity remains above 7%, indicating a strong commitment to innovation [1]. Group 2: Governance and Performance - The company is enhancing its modern corporate governance system and optimizing the implementation of six key board responsibilities, which has led to a leading position in operating income profit margin and return on net assets among peers [2]. - Guodian NARI has achieved significant innovation results, including the successful operation of the world's first 6kV network-type SVG and several other advanced technologies [2]. - The company has been recognized for its transparency and governance, receiving an A-class rating for information disclosure for ten consecutive years and being included in various ESG indices [2]. Group 3: Future Outlook - Guodian NARI plans to deepen reforms and focus on high-quality development, aiming to enhance its innovation capabilities and core competitiveness [3]. - The company is strategically positioning itself to capitalize on opportunities in the new energy sector, with plans to scale up the application of technologies such as new energy storage and green hydrogen production [2].

Investment Rating - The investment rating for the AIDC power equipment and grid industry is "Outperform the Market" (maintained) [1] Core Viewpoints - The global AI computing load is expected to grow significantly, with new AI computing loads projected at 9.7/15.9/20.2/22.3/23.4/24.6 GW from 2025 to 2030. This translates to a demand for AIDC power equipment of 29/48/60/67/70/74 GW, with an average annual growth rate of 20% [5][13] - The market potential for dry-type transformers, medium and low voltage switchgear, UPS, HVDC, and solid-state transformers is estimated to reach 85/341/41/380/239 billion yuan by 2030 [5][12] - The domestic data center industry is expected to see increased capital expenditure from major cloud providers, with 2025 anticipated to be a pivotal year for AIDC construction [5][18] Summary by Sections AIDC Power Equipment - The AIDC power equipment sector has shown a diverse range of products, with major global players like Vertiv, Eaton, and Schneider Electric having established strong product lines and solutions [5] - Domestic companies are gaining competitive advantages in various segments, with leading firms gradually building their solution-providing capabilities [5] - The recent performance of the AIDC power equipment sector has been mixed, with notable declines in backup diesel power sources and lead-acid batteries [5][24] Grid Industry - The grid sector has seen significant investment growth, with national grid engineering investment reaching 632 billion yuan in May 2025, a year-on-year increase of 33.3% [31][32] - The bidding results for high-voltage equipment have shown a strong performance, with a total bid amount of 211.89 billion yuan in July 2025, reflecting a year-on-year increase of 38.1% [64] - The grid industry is expected to benefit from the maturation of new business models such as electricity trading and virtual power plants, with a focus on high-voltage orders and deliveries in the second half of 2025 [5][58]

1. Report Industry Investment Rating There is no information provided regarding the report's industry investment rating in the given content. 2. Core Viewpoints of the Report - Investing in ultra - long credit bonds is challenging due to high volatility. Since 2024, their yields have gone through multiple stages including rapid decline, adjustment, and oscillation [11]. - To improve the allocation win - rate, one can measure the cost - effectiveness of extending duration through credit spreads, understand institutional allocation behavior patterns, decide entry based on trading sentiment, and select high - liquidity value entities [4]. - The long - term stable market of ultra - long credit bonds generally requires continuous buying from trading accounts such as funds and wealth management products. Insurance mainly helps stabilize prices during market adjustments [50]. 3. Summary by Relevant Catalogs 3.1 High - Volatility Ultra - Long Credit Bonds - **Yield Fluctuation Stages**: Since 2024, the yields of ultra - long credit bonds have experienced 3 bull markets, 2 adjustments, and 1 oscillation. For example, from January to March 2024, the yields declined slightly at first and then increased due to various events; from April to July 2024, the demand for ultra - long credit bonds increased under institutional under - allocation pressure [11]. - **Volatility and Investment Difficulties**: Although the volatility of ultra - long credit bonds in the second quarter of 2025 was lower than the same period last year, it was still higher than most of 2024 from January to April. The high volatility provides capital gain opportunities but is difficult for band - trading due to liquidity issues [16]. 3.2 How to Improve Allocation Win - Rate 3.2.1 Measure the Cost - Effectiveness of Extending Duration through Credit Spreads - **Credit Spread Channels**: By using the 30 - day average of credit spreads to form upper and lower tracks, when the credit spread touches the upper track, there is a large compression space, and when it touches the lower track, it may rebound. However, this indicator has some limitations and should be combined with other factors [21]. - **Term Spread Channels**: Similar to credit spreads, term spread channels can also be used to predict market trends. But they also have limitations in considering factors such as institutional behavior and policy changes [24]. - **Credit Spread Quantiles**: As of July 4, 2025, the credit spreads of some long - term bonds are at relatively low quantiles, indicating limited further compression space [27]. 3.2.2 Grasp the Laws of Institutional Allocation Behavior - **Insurance**: Ultra - long credit bonds match the duration of insurance products and can alleviate the asset shortage problem. Insurance is a stable buyer, but its buying volume is affected by the supply rhythm of interest - rate bonds and the "good start" seasonal pattern [32]. - **Wealth Management**: Due to bank quarterly assessments and fund repatriation, wealth management scale usually declines at the end of the quarter and rebounds at the beginning. In recent four years, there have been relatively large month - on - month increases in April and July, leading to an increased demand for credit bonds [38]. - **Public Funds**: Ultra - long credit bonds are attractive for their coupon income and duration offensive. Funds tend to extend duration in a bull market but increase selling during market adjustments [42]. - **Credit Bond ETFs**: Since late May, credit bond ETFs have expanded rapidly. By July 4, 2025, the scale of 8 benchmark - making market - making credit bond ETFs had increased to 13.22 billion yuan, which has promoted the bull market of ultra - long credit bonds [45]. 3.2.3 Decide Entry Based on Trading Sentiment - Currently, the sentiment of bond market investors participating in long - term credit bonds is over - heated. The trading deviation of credit bonds over 10 years has approached the levels during the strongest rising periods in 2024. However, the over - crowded market is increasing potential adjustment risks [53]. 3.2.4 Layout High - Liquidity Value Entities - When the ultra - long credit bond market starts, one can focus on the outstanding bonds of entities with large outstanding ultra - long bond scales and ratings of AA+ or above. For example, State Grid, Chengtong Holdings, and Sinochem Group have relatively large outstanding scales [60]. - Further, one can select entities with higher term spreads than the market average, indicating potential for long - term bond interest rate compression [61].