Investment Rating - The industry investment rating is "Maintain Buy" [5] Core Views - India's coking coal imports increased by 6% quarter-on-quarter in Q2 FY2026, reflecting growth in the steel industry's capacity and output [2] - Future months are expected to see increased coking coal import demand due to replenishment needs post-monsoon [3] - Key investment recommendations include companies with strong performance elasticity such as Yancoal Energy, Jinkong Coal Industry, and those focused on smart mining like Keda Automation [3] Summary by Sections Coal Mining - In Q2 FY2026, India imported 16.9 million tons of coking coal, up from 16 million tons in Q1, with Australia being the largest supplier at 9.7 million tons, a 14.1% increase [2] - Coking coal prices at major ports showed slight increases, with Newcastle port at $112.7 per ton (+1.85%) and European ARA ports at $97.15 per ton (+1.20%) [1][35] Key Stocks - Recommended stocks include: - China Qinfa (00866.HK) - Buy, EPS forecast for 2026E is 0.27 [7] - Jiangxi Tungsten (600397.SH) - Buy, EPS forecast for 2026E is 0.03 [7] - China Shenhua (601088.SH) - Buy, EPS forecast for 2026E is 2.71 [7] - Jinkong Coal Industry (601001.SH) - Buy, EPS forecast for 2026E is 1.47 [7] - Yancoal Energy (600188.SH) - Buy, EPS forecast for 2026E is 1.18 [7] - Zhongmei Energy (601898.SH) - Buy, EPS forecast for 2026E is 1.29 [7] - Shaanxi Coal (601225.SH) - Buy, EPS forecast for 2026E is 1.86 [7] Market Trends - The report indicates a marginal increase in coal demand, with a focus on the recovery of coal power generation as seasonal demand begins to rise [37]

Core Insights - The trial reform for long-term investment of insurance funds has accelerated this year, with the latest holdings of insurance-related private equity funds revealed following the disclosure of listed companies' Q3 reports [1][9] - Five insurance-related private equity funds have disclosed their latest holdings, with significant investments in companies such as Sinopec, Daqin Railway, Guotou Power, Luzhou Laojiao, Anhui Expressway, and HLA [1][4] Holdings Summary - As of the end of Q3, Taibao Zhiyuan No. 1 Private Securities Investment Fund has appeared in the top ten circulating shareholders of Anhui Expressway and HLA, holding 4.1483 million shares and 18.0652 million shares respectively [3][6] - The holdings of five insurance-related private equity funds are detailed in a table, showing the number of shares, market value, and percentage of circulating A-shares for each listed company [5] - The Honghu Fund Phase III No. 1 has emerged as a major shareholder in Sinopec, Daqin Railway, Guotou Power, and Luzhou Laojiao, with holdings of 304.9586 million shares, 298.4871 million shares, 93.438 million shares, and 18.872 million shares respectively [6][7] Investment Focus - The insurance-related private equity funds are primarily concentrated in sectors such as petrochemicals, transportation, coal, public utilities, food and beverage, telecommunications, and textiles, with many holdings being industry leaders characterized by high dividends and low volatility [7][10] - The ongoing trial reform has seen the number of operational insurance-related private equity funds increase to seven, with a total approved scale of 222 billion yuan [9][10]

Core Viewpoint - The latest holdings of the "national team" in A-share listed companies have been revealed, with significant investments in major financial institutions and other sectors, indicating a strategic focus on stability and growth in the market [1][2]. Group 1: National Team Holdings - A total of 233 A-share listed companies have the "national team" (China Securities Finance Corporation and Central Huijin) among their top ten shareholders [1]. - There are 30 stocks with a holding value exceeding 10 billion yuan, including major banks like China Construction Bank, Agricultural Bank of China, and Bank of China, with holdings valued at 1.3288 trillion yuan, 1.1429 trillion yuan, and 1.1138 trillion yuan respectively [1][2]. - The top holdings also include companies from various sectors such as insurance, food and beverage, and energy, showcasing a diversified investment strategy [1][2]. Group 2: New Additions and Performance - Farah Electronics has been newly added to the "national team" holdings, with a market value of 158 million yuan [3]. - For the third quarter, Farah Electronics reported a revenue of 3.944 billion yuan, a year-on-year increase of 14.69%, and a net profit of 888 million yuan, also up by 14.58% [3]. - The company’s capacitor products are utilized in ultra-high voltage transmission applications, indicating a focus on high-demand technology sectors [3].

Core Insights - The latest holdings of the "national team" in A-share listed companies have been revealed, with 233 companies having the "national team" as one of their top ten shareholders [1][2] - In the third quarter, the "national team" held over 10 billion yuan in market value in 30 stocks, including major banks and insurance companies [1] Group 1: Major Holdings - The top three holdings by market value are: - China Construction Bank: 13,288.15 billion yuan - Agricultural Bank of China: 11,429.52 billion yuan - Bank of China: 11,138.27 billion yuan [1] - Other significant holdings include: - Industrial and Commercial Bank of China: 9,914.42 billion yuan - New China Life Insurance: 751.22 billion yuan - Ping An Insurance: 734.02 billion yuan [1][2] Group 2: New Additions - Farah Electronics is a new addition to the "national team" holdings, with a market value of 1.58 billion yuan [2] - The company reported a revenue of 3.944 billion yuan for the first three quarters, a year-on-year increase of 14.69%, and a net profit of 888 million yuan, also up 14.58% [2] - In the third quarter alone, Farah Electronics achieved a revenue of 1.445 billion yuan, reflecting a year-on-year growth of 9.31% [2]

Core Insights - The functional carbon-based materials industry in China is experiencing significant growth due to increasing applications across various sectors and expanding downstream market demand. The market size is projected to grow from 7.992 billion yuan in 2019 to 23.952 billion yuan by 2024, with a compound annual growth rate (CAGR) of 24.55% [1][8]. Industry Overview - Carbon-based materials, primarily composed of carbon elements, exhibit unique physical and chemical properties, making them suitable for high-tech applications. Key types include carbon quantum dots, fullerenes, carbon fibers, carbon nanotubes, carbon nanowires, and graphene, which are essential for upgrading the new materials industry [4][8]. Market Applications - Functional carbon-based materials are widely used in high-end fields such as aerospace (rocket engine nozzles, space shuttle components), automotive (brake discs), medicine, electronics, and photovoltaic power generation. These applications are characterized by high growth rates and strong drivers for market expansion [1][8]. Industry Policies - The functional carbon-based materials industry in China is still in its early stages of industrialization, facing international trade and technological barriers. Recent government policies aim to guide and support the industry's healthy development, including the inclusion of carbon-based materials in encouraged projects [6][7]. Industry Chain - The industry chain consists of upstream raw materials (coal, oil, methane, etc.), midstream production processes, and downstream applications across various sectors such as photovoltaics, wind power, semiconductors, and aerospace [7][8]. Competitive Landscape - The global market for functional carbon-based materials is characterized by both international and domestic competition. International giants like SGL Group and Morgan Advanced Materials dominate the high-end market, while domestic companies such as Chujiang New Materials and Guangwei Composite Materials are rapidly emerging through innovation and market expansion [9][10]. Development Trends - The industry is shifting focus from scale to performance breakthroughs, emphasizing the design and synthesis of precursor structures to develop materials with superior properties. Future trends include precision applications tailored to specific markets, such as renewable energy and biomedical fields, and a transition towards green manufacturing and recycling practices [11][12][13].

Quantitative Models and Construction - **Model Name**: Competitive Advantage Portfolio **Construction Idea**: Incorporates competitive environment and strategic factors into stock selection, focusing on industries with distinct competitive characteristics[10][11] **Construction Process**: 1. Classify industries into four types: "Barrier Shield", "Intense Competition", "Steady Progress", and "Seeking Breakthrough"[10] 2. Focus on "Barrier Shield" industries to identify "dominant leaders" and "cooperative win-win" companies[10] 3. Combine "dominant leaders + cooperative win-win" stocks with "efficient operators" from non-barrier industries to form the portfolio[11] **Evaluation**: Provides a unique value quantification perspective beyond traditional factor investing[10] - **Model Name**: Margin of Safety Portfolio **Construction Idea**: Focuses on internal value estimation and competitive advantage to ensure sustainable profitability[15] **Construction Process**: 1. Calculate intrinsic value using profitability metrics like ROIC and NOPAT[15] 2. Select top 50 stocks with the highest margin of safety from a competitive advantage pool[15] 3. Weight stocks by dividend yield to maximize portfolio safety margin[15][17] **Evaluation**: Emphasizes reliable intrinsic value estimation and sustainable competitive advantage[15] - **Model Name**: Dividend Low Volatility Adjusted Portfolio **Construction Idea**: Avoids "high dividend traps" by considering dividend sustainability and excluding extreme cases[21] **Construction Process**: 1. Predict dividend yield and exclude stocks with extreme price performance or abnormal debt ratios[21] 2. Optimize portfolio by focusing on stocks with stable dividend yields[21] **Evaluation**: Addresses the risks of chasing high dividend yields without considering long-term value[21] - **Model Name**: AEG Valuation Potential Portfolio **Construction Idea**: Utilizes abnormal earnings growth (AEG) to capture valuation potential[25] **Construction Process**: 1. Calculate AEG using the formula: $$\begin{array}{c}{{A E G=Y_{t}-N_{t}=(E_{t}+r*D P S_{t-1})-(1+r)*E_{t-1}}}\\ {{\frac{V_{0}}{E_{1}}=\frac{1}{r}+\frac{1}{r}*\frac{\left(\frac{A E G_{2}}{1+r}+\frac{A E G_{3}}{(1+r)^{2}}+\frac{A E G_{4}}{(1+r)^{3}}+\cdots\right)}}}\\ {{\frac{E_{1}}{E_{1}}}}\end{array}$$[25] 2. Select top 100 stocks based on AEG_EP factor, then narrow down to top 50 with high dividend reinvestment/P ratio[29] **Evaluation**: Captures undervalued growth potential in companies overlooked by the market[25][29] - **Model Name**: Cash Cow Portfolio **Construction Idea**: Evaluates companies' cash generation efficiency using CFOR analysis[32] **Construction Process**: 1. Use CFOR metrics to assess free cash flow stability and operational asset returns[32] 2. Combine high-quality stocks from non-financial sectors with ROE above the 40th percentile[33] 3. Select stocks with low volatility and valuation factors for final portfolio construction[33] **Evaluation**: Provides a comprehensive view of operational performance and financial stability[32] - **Model Name**: Distress Reversal Portfolio **Construction Idea**: Captures valuation-driven short-term fluctuations and recovery potential[39] **Construction Process**: 1. Use inventory cycles to identify distress reversal opportunities[39] 2. Combine factors like accelerated recovery and undervaluation to select top 50 stocks[39] **Evaluation**: Complements momentum strategies by focusing on valuation-driven returns during downturns[39] --- Model Backtesting Results - **Competitive Advantage Portfolio**: Annualized return 20.36%, Sharpe ratio 0.95, IR 0.12, max drawdown -19.32%, Calmar ratio 1.05[14] - **Margin of Safety Portfolio**: Annualized return 23.37%, Sharpe ratio 1.17, IR 0.13, max drawdown -16.89%, Calmar ratio 1.38[19] - **Dividend Low Volatility Adjusted Portfolio**: Annualized return 16.81%, Sharpe ratio 0.98, IR 0.16, max drawdown -21.61%, Calmar ratio 0.78[22] - **AEG Valuation Potential Portfolio**: Annualized return 24.88%, Sharpe ratio 1.13, IR 0.17, max drawdown -24.02%, Calmar ratio 1.04[31] - **Cash Cow Portfolio**: Annualized return 14.15%, Sharpe ratio 0.71, IR 0.10, max drawdown -19.80%, Calmar ratio 0.71[37] - **Distress Reversal Portfolio**: Annualized return 25.17%, Sharpe ratio 1.01, IR 0.15, max drawdown -33.73%, Calmar ratio 0.75[41]

Core Viewpoint - China Shenhua's stock has declined over 3% following the release of its financial results for the third quarter, indicating market concerns over its performance amid declining revenues and profits [1] Financial Performance - For the first three quarters, China Shenhua reported revenue of 213.15 billion RMB, a year-on-year decrease of 16.6% [1] - The net profit attributable to shareholders was 41.37 billion RMB, down 13.8% year-on-year [1] - In the third quarter alone, the company achieved revenue of 75.04 billion RMB, a year-on-year decline of 13.1% but a quarter-on-quarter increase of 9.5% [1] - The net profit for the third quarter was 14.41 billion RMB, reflecting a year-on-year decrease of 6.2% but a quarter-on-quarter increase of 13.5% [1] Analyst Insights - According to a report from Zhongyin International, the net profit calculated under IFRS for the third quarter decreased by 6% to 14.7 billion RMB, while showing a quarter-on-quarter growth of 13% [1] - The strong performance of the power business is identified as a key driver for the quarterly growth [1] - The firm anticipates that by the fourth quarter of 2025, the company's earnings will stabilize quarter-on-quarter, as rising costs and unfavorable changes in coal sales structure will offset the benefits from increased coal prices [1]

Core Viewpoint - China Shenhua's stock has declined over 3% following the release of its financial results for the third quarter, indicating market concerns over its performance amid declining revenues and profits [1]. Financial Performance - For the first three quarters, China Shenhua reported revenue of 213.15 billion RMB, a year-on-year decrease of 16.6% [1]. - The profit attributable to the owners of the company was 41.37 billion RMB, down 13.8% year-on-year [1]. - In the third quarter alone, the company achieved operating revenue of 75.04 billion RMB, a year-on-year decline of 13.1% but a quarter-on-quarter increase of 9.5% [1]. - The net profit attributable to shareholders for the third quarter was 14.41 billion RMB, reflecting a year-on-year decrease of 6.2% but a quarter-on-quarter increase of 13.5% [1]. Analyst Insights - According to a report from Zhongyin International, the net profit calculated under IFRS for the third quarter decreased by 6% to 14.7 billion RMB, while showing a quarter-on-quarter growth of 13% [1]. - The strong performance of the power business is identified as a key driver for the quarterly growth [1]. - The firm anticipates that by the fourth quarter of 2025, the company's earnings will stabilize quarter-on-quarter, as rising costs and unfavorable changes in coal sales structure will offset the benefits from increased coal prices [1].

Group 1 - The article highlights the top 20 stocks in the S&P China A-Share Dividend Opportunities Index, showcasing their daily and year-to-date performance along with dividend yields [1][2] - The top performer is COSCO Shipping Energy Transportation (600026.SH) with a daily increase of 8.76% and a year-to-date increase of 19.08%, offering a dividend yield of 2.77% [1] - China National Foreign Trade Transportation Group (601598.SH) ranks second with a daily increase of 7.40% and a year-to-date increase of 31.14%, providing a dividend yield of 4.28% [1] Group 2 - The index consists of 100 stocks, with a maximum weight of 3% for any single stock and a maximum of 33% for any single GICS industry [2] - The index's historical price-to-earnings ratio is 10.08, with an expected price-to-earnings ratio of 10.64, and a dividend yield of 5.18% [2] - The data for the index is sourced from the Shanghai and Shenzhen Stock Exchanges, with the latest update as of October 30, 2025 [2]

Group 1 - The current high-level financial opening and high-quality development of the real economy have become a key theme, with Beijing and Hong Kong being core forces in promoting enterprises going global and capital connectivity [1] - At the 2025 Financial Street Forum, it was highlighted that Beijing enterprises hold significant positions in terms of market value and quantity in the Hong Kong stock market, with an increasing number of tech companies preparing to list in Hong Kong [1][2] - The collaboration between the Beijing Stock Exchange (BSE) and the Hong Kong Stock Exchange (HKEX) aims to support qualified listed companies in applying for listings in each other's markets, enhancing market cooperation and promoting mutual prosperity [2][3] Group 2 - The HKEX has seen a significant increase in IPO activities, with new listings raising HKD 180 billion in the first three quarters of 2023, a twofold year-on-year increase, and subsequent stock placements raising HKD 260 billion, up 270% [4] - The "A+H" listing trend is gaining momentum, with several A-share companies already listed in Hong Kong, and more companies in the pipeline for IPOs [5][6] - The demand for A-share leading enterprises to list in Hong Kong is expected to continue, driven by the need to enhance international influence and attract global capital [6][7] Group 3 - The China Securities Regulatory Commission (CSRC) has issued measures to support leading domestic enterprises in listing in Hong Kong, facilitating a smooth financing channel for overseas listings [7]