1. Overnight Night Market Trends - INTERNATIONAL PRECIOUS METALS: COMEX gold futures fell 0.45% to $4126.90 per ounce, down 2.05% for the week; COMEX silver futures dropped 0.60% to $48.41 per ounce, down 3.38% for the week [4] - CRUDE OIL: The U.S. oil main contract fell 0.57% to $61.44 per barrel, up 7.51% for the week; Brent crude's main contract declined 0.57% to $64.92 per barrel, up 7.06% for the week [5] - LONDON BASE METALS: LME copper rose 0.85% to $10947 per ton, up 3.23% for the week; LME lead increased 0.30% to $2016.50 per ton, up 2.36% for the week; LME zinc edged up 0.07% to $3019.50 per ton, up 2.93% for the week; LME aluminum dropped 0.21% to $2856.50 per ton, up 2.84% for the week; LME nickel fell 0.25% to $15325 per ton, up 1.32% for the week; LME tin declined 0.34% to $35650 per ton, up 1.75% for the week [5] - DOMESTIC FUTURES: As of the close on October 24 at 23:00, domestic futures' main contracts mostly rose. Low - sulfur fuel oil, LPG, and fuel oil rose over 1%, while asphalt, coking coal, and rapeseed meal had small increases. Synthetic rubber, caustic soda, corn, and sugar slightly declined [5] 2. Important Information Macroeconomic Information - President Xi Jinping will visit South Korea from October 30 to November 1 to attend the 32nd APEC Economic Leaders' Meeting and conduct a state visit [8] - The "Proposal of the Central Committee of the Communist Party of China for Formulating the 15th Five - Year Plan for National Economic and Social Development" aims to break market barriers [8] - The central bank will conduct 900 billion yuan of MLF operations on October 27 [8] - The China Securities Regulatory Commission emphasizes enhancing the resilience and risk - resistance of the capital market [8] - Shipping indices show an increase in export container freight rates [9] - The central bank will adjust monetary policy according to economic and financial conditions and maintain the stability of the RMB exchange rate [9][10] - U.S. September CPI is slightly lower than expected, paving the way for a rate cut [10] - U.S. October PMI data shows improvement [10] - China and the U.S. held economic and trade consultations in Kuala Lumpur, reaching preliminary consensus on multiple issues [10][11] Energy and Chemical Futures - Russia's central bank forecasts average oil prices for 2025 and 2026 [12] - India's Reliance Industries bought hundreds of thousands of barrels of crude oil due to concerns about supply disruptions [14] Metal Futures - China's non - ferrous metal industry had a good performance in the first three quarters [16] - Last week, copper, aluminum, zinc, and lead inventories decreased, while nickel and tin inventories increased [17] - This month's estimated retail sales of narrow - sense passenger cars are about 2.2 million, with a decline in both month - on - month and year - on - year terms, and the penetration rate of new energy vehicles may reach 60% [17] Black - Series Futures - In mid - October, steel production of key enterprises had different trends in daily output [19] - The Ministry of Industry and Information Technology solicits opinions on the "Implementation Measures for Capacity Replacement in the Iron and Steel Industry", with specific replacement ratios and restrictions [19][21] - Some steel mills in Tangshan and Xingtai plan to raise coke prices [21] - This week's total urban inventory of steel decreased [22] - Shanxi is increasing coal production to meet winter demand, with a 3.7% year - on - year increase in the first three quarters [22] Agricultural Futures - Pig - farming losses have decreased [24] - Pig and pork prices are expected to stop falling and rise slightly in the second half of the fourth quarter [25] - In the 43rd week, soybean crushing volume in oil mills exceeded expectations [25] - Imported cotton port inventory increased slightly [26] - The domestic edible vegetable oil market is expected to have stable prices, while palm oil prices may rise slightly [28] - Malaysia's October 1 - 25 palm oil exports are expected to decline 0.4% [29] 3. Financial Markets Finance - Many A - share companies released positive third - quarter reports, with some having significant profit growth [31] - Fund managers will adjust investment strategies based on third - quarter reports, focusing on technology stocks [31] - As of the end of the third quarter, social security funds held shares in 135 stocks, with new entries, increases, and decreases in positions, and increased investment in technology sectors [32] - Many A - share companies were surveyed by institutions, with technology stocks being popular [34] - Many companies distributed dividends, and some will distribute more in the future [34] - Nearly 2000 public funds' third - quarter reports show that innovation - related assets are the main allocation [34] - The market sentiment has stabilized, and the subsequent adjustment space may be limited [34] - Hong Kong stocks' "B - series" varieties are being sold by pharmaceutical fund managers, and innovation - drug funds are entering the stock - selection stage [35] Industry - A draft regulatory guideline for public fund performance comparison benchmarks may be released soon, and many funds have adjusted their benchmarks this year [36] - Banks have raised the minimum investment threshold for gold accumulation, and short - term gold price fluctuations may be normal [38] - Gold jewelry brands have raised prices, mainly to increase processing fees and maintain stable margins [38] - Many real - estate companies have made breakthroughs in debt restructuring [38] - As of September, China's power generation installed capacity increased, with significant growth in solar and wind power [39] - The flu vaccine vaccination season has arrived, with different price trends for different vaccines [39] - Multiple paper companies will raise the price of white cardboard from November 1 [39] Overseas - The U.S. and Vietnam, Thailand, Malaysia, and Cambodia reached trade - related agreements [41][42] - The U.S. Treasury Secretary believes inflation will continue to decline, and the government shutdown is eroding the economy [42] - The U.S. government shutdown may last until the end of November [43] - The IMF President suggests that ASEAN economies strengthen their fundamentals and predicts that AI will affect a large proportion of jobs [43] International Stock Markets - European countries will implement winter time starting Monday, adjusting trading and data - release times [45] Bonds - As of October 24, the issuance scale of securities firms' science and technology innovation bonds this year reached 59.17 billion yuan, and it is expected to continue growing [46] 4. Upcoming Economic Data and Events Economic Data - Various economic data will be released on October 27, including Japan's September corporate service price index, China's September industrial enterprise profits, etc. [48] Events - The central bank has 7000 billion yuan of 1 - year MLF and 189 billion yuan of 7 - day reverse repurchases maturing [50] - The governor of the Reserve Bank of Australia will participate in a talk [50] - There are new stock subscriptions and company earnings reports [50] - Multiple important events are scheduled, such as the East Asia Cooperation Leaders' Series Meetings, the 2025 Financial Street Forum Annual Conference, etc. [50]

Core Viewpoint - Institutional investors continue to favor technology stocks, with over 400 A-share companies receiving institutional research attention this month, particularly in the electronics and power equipment sectors [2][3] Group 1: Institutional Research Trends - More than 15 A-share companies received over 100 institutional research visits this month, with a significant focus on the electronics, computer, and power equipment industries [3] - Rongbai Technology (688005.SH) received the highest number of institutional visits, totaling 216, including participation from major firms like CITIC Securities and Tianhong Fund [3] - New Qianglian (300850.SZ) and Duofluo (002407.SZ) also attracted significant attention, with 189 and 183 institutional visits respectively [3] Group 2: Company Performance Highlights - New Qianglian reported a remarkable 1939% year-on-year increase in net profit for the first three quarters, reaching 664 million yuan, with a revenue of 3.618 billion yuan, up 84.1% [4] - Duofluo's revenue for the first three quarters was 6.729 billion yuan, a decrease of 2.75%, but net profit surged by 407.74% to 78 million yuan [5] - Hikvision (002415.SZ) achieved a revenue of 65.758 billion yuan, a 1.18% increase, and a net profit of 9.319 billion yuan, up 14.94% [7][8] Group 3: Institutional Concerns and Questions - Institutions inquired about the operational performance and future sales expectations of Rongbai Technology, particularly regarding its high-nickel material upgrades and overseas production capacity [3] - New Qianglian addressed concerns about production capacity limitations and cash flow risks related to accounts receivable management, emphasizing their strategies for optimizing production efficiency and managing credit risk [4] - Hikvision was questioned about its annual profit guidance and dividend policies, indicating a focus on maintaining robust cash flow and increasing dividend frequency [7][8] Group 4: Capital Market Activities - Tailin Micro announced plans to issue overseas shares (H-shares) and list on the Hong Kong Stock Exchange, aiming to enhance its global capital strategy and financing channels [9]

Investment Rating - The report suggests a focus on leading domestic generative models such as iFlytek, AI hardware as a new carrier for application implementation, and companies like Hikvision, Hongsoft Technology, and Hesai [2] Core Insights - The report highlights significant advancements in AI applications and technologies, with expectations for improved operational strength in Q3 and further growth in Q4, driven by new technology implementations and enhanced operational quality [9][10] - The AI industry chain is expected to remain a major focus, with notable progress in AI applications compared to previous years, indicating a potential for exponential growth in the second half of the year [9] - The report identifies high-growth sectors within the industry, including AI computing power and lidar, while also noting stable growth in software outsourcing and financial IT [10] Summary by Sections 1. Industry Perspective - The report discusses the release of new AI models and tools, such as DeepSeek-OCR and KAT-Coder, which enhance capabilities in text processing and AI programming [9] - It emphasizes the importance of AI in various sectors, including finance and software, with expectations for increased investment and development [10] 2. Market Performance - From October 20 to October 24, 2025, the computer industry index rose by 3.58%, outperforming the CSI 300 index by 0.33 percentage points [11] 3. Sector Insights - The report categorizes various sectors based on their growth potential, with AI computing power and lidar maintaining high growth, while sectors like industrial software face some pressure [10] - It notes that the software export market has significant potential, with emerging brands gaining traction [10] 4. Upcoming Events - The report highlights key upcoming events, including the 10th China International Artificial Intelligence Conference and the 27th China International High-tech Achievements Fair, which are expected to present opportunities within the industry [24][25]

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 40.98 per share based on a 2025 PE of 28x [4][22]. Core Insights - The company is positioned to benefit from innovation and overseas market expansion, with AI expected to enhance future growth prospects. EPS estimates for 2025-2027 are RMB 1.47, 1.68, and 1.97 respectively [4][22]. - The concept of "Lighthouse Factory," introduced by WEF and McKinsey, emphasizes the integration of advanced technologies like IoT, AI, and big data to achieve significant improvements in production efficiency and sustainability. China leads globally with 85 such factories, accounting for 42.29% of the total [4][23][24]. Financial Summary - Total revenue is projected to grow from RMB 89.34 billion in 2023 to RMB 117.62 billion by 2027, reflecting a CAGR of approximately 10.3% [3]. - Net profit attributable to the parent company is expected to recover from RMB 11.98 billion in 2024 to RMB 18.03 billion in 2027, with a notable increase of 17.0% in 2027 [3]. - The company’s net asset return is forecasted to improve from 14.8% in 2024 to 17.6% in 2027 [3]. Business Strategy - The company focuses on "IoT sensing, AI, and big data" to enhance its product offerings, creating a comprehensive IoT data entry system that supports AI algorithm improvements [4][24]. - Recent collaborations, such as with Haier, aim to accelerate digital transformation across various sectors, including smart manufacturing and supply chain management [15][16]. Market Position - The company has established itself as a leader in the security industry, leveraging its technological capabilities to provide customized digital solutions across multiple industrial sectors [4][25]. - The report highlights successful implementations of its technology in various industries, such as steel and cement, showcasing significant improvements in operational efficiency and safety [11][25].

Core Points - The Shenzhen State-Owned Enterprises Shareholder Return Index (470064) closed at 2305.1 points, down 0.29%, with a trading volume of 34.285 billion yuan and a turnover rate of 1.32% [1] - Among the index constituents, 20 stocks rose while 28 stocks fell, with China National Materials Technology leading the gainers at 5.67% and Shenzhen Properties A leading the decliners at 8.41% [1] Index Constituents Summary - The top ten constituents of the Shenzhen State-Owned Enterprises Shareholder Return Index include: - BOE Technology Group (sz000725) with a weight of 9.64%, latest price at 4.05, and total market value of 151.26 billion yuan [1] - Wuliangye Yibin (sz000858) with a weight of 7.95%, latest price at 120.29, and total market value of 466.92 billion yuan [1] - Hikvision (sz002415) with a weight of 7.72%, latest price at 33.29, and total market value of 305.10 billion yuan [1] - Luzhou Laojiao (sz000568) with a weight of 6.53%, latest price at 130.24, and total market value of 191.71 billion yuan [1] - XCMG Machinery (sz000425) with a weight of 6.28%, latest price at 11.37, and total market value of 133.63 billion yuan [1] - Changan Automobile (sz000625) with a weight of 3.87%, latest price at 12.72, and total market value of 126.11 billion yuan [1] - Shenwan Hongyuan (sz000166) with a weight of 3.78%, latest price at 5.46, and total market value of 136.72 billion yuan [1] - Yunnan Aluminum (sz000807) with a weight of 3.45%, latest price at 23.18, and total market value of 80.39 billion yuan [1] - Yanghe Brewery (sz002304) with a weight of 3.27%, latest price at 69.22, and total market value of 104.28 billion yuan [1] - Changchun High & New Technology (sz000661) with a weight of 3.17%, latest price at 117.84, and total market value of 48.07 billion yuan [1] Capital Flow Summary - The net outflow of main funds from the index constituents totaled 0.881 billion yuan, while speculative funds saw a net inflow of 0.65 billion yuan and retail funds a net inflow of 0.231 billion yuan [3] - Notable capital flows include: - Changan Automobile (000625) with a net inflow of 204 million yuan from main funds [3] - Yunnan Copper (000878) with a net inflow of 71.86 million yuan from main funds [3] - Hubei Energy (000883) with a significant net inflow of 44.39 million yuan from main funds [3]

Core Viewpoint - The Shenzhen State-owned Enterprise ESG Index (970055) closed at 1402.3 points on October 24, with a gain of 0.39% and a trading volume of 35.566 billion yuan, indicating a stable performance in the market [1]. Group 1: Index Performance - On the same day, 24 constituent stocks of the index rose, with Deep Technology leading at a 6.01% increase, while 25 stocks declined, with China National Chemical leading the decline at 4.16% [1]. - The turnover rate of the index was 1.02%, reflecting moderate trading activity [1]. Group 2: Constituent Stocks Details - The top ten constituent stocks of the Shenzhen State-owned Enterprise ESG Index are as follows: - Hikvision (sz002415) with a weight of 9.64% and a latest price of 33.29 yuan, down 0.42% [1]. - BOE Technology Group (sz000725) with a weight of 9.31% and a latest price of 4.05 yuan, unchanged [1]. - Wuliangye Yibin (sz000858) with a weight of 8.62% and a latest price of 120.29 yuan, down 0.86% [1]. - Inspur Information (sz000977) with a weight of 7.30% and a latest price of 67.80 yuan, up 3.23% [1]. - Weichai Power (sz000338) with a weight of 6.78% and a latest price of 14.20 yuan, up 0.14% [1]. - AVIC Optoelectronics (sz002179) with a weight of 4.48% and a latest price of 37.45 yuan, up 1.22% [1]. - Shenwan Hongyuan (sz000166) with a weight of 4.14% and a latest price of 5.46 yuan, up 0.55% [1]. - Yunnan Aluminum (sz000807) with a weight of 4.08% and a latest price of 23.18 yuan, up 1.09% [1]. - Changchun High-tech (sz000661) with a weight of 3.73% and a latest price of 117.84 yuan, up 0.16% [1]. - China Merchants Shekou (sz001979) with a weight of 3.31% and a latest price of 9.50 yuan, down 2.56% [1]. Group 3: Capital Flow - The net inflow of main funds into the constituent stocks of the Shenzhen State-owned Enterprise ESG Index totaled 86.5205 million yuan, while the net outflow of speculative funds was 306 million yuan, and the net inflow of retail funds was 21.9 million yuan [1]. - Detailed capital flow for specific stocks shows that Inspur Information had a net inflow of 34.2 million yuan from main funds, while Deep Technology experienced a net outflow of 12.26 million yuan from speculative funds [2].

Market Overview - On October 24, the computer equipment sector rose by 2.05%, led by Aerospace Intelligence [1] - The Shanghai Composite Index closed at 3950.31, up 0.71%, while the Shenzhen Component Index closed at 13289.18, up 2.02% [1] Stock Performance - Aerospace Intelligence (300455) saw a closing price of 19.76 with a significant increase of 19.98% and a trading volume of 311,100 shares, amounting to a transaction value of 614 million [1] - Weihong Co., Ltd. (300508) closed at 31.98, up 12.61%, with a trading volume of 94,300 shares [1] - Dahua Intelligent (002512) closed at 4.46, up 10.12%, with a trading volume of 672,500 shares [1] - Other notable performers include Langke Technology (300042) with an 8.93% increase and a closing price of 33.18, and Jiayuan Technology (301117) with a 7.96% increase and a closing price of 43.25 [1] Capital Flow - The computer equipment sector experienced a net inflow of 1.494 billion in main funds, while retail funds saw a net outflow of 575 million [2] - The main funds' net inflow for Zhongke Shuguang (603019) was 914 million, accounting for 12.96% of the total, while retail funds had a net outflow of 578 million [3] - Dahua Intelligent (002512) had a main fund net inflow of 139 million, representing 46.50% of the total, with retail funds experiencing a net outflow of 64.93 million [3]

Group 1 - The user base of generative AI in China is rapidly increasing, expected to reach 515 million by June 2025, doubling in six months with a penetration rate of 36.5% [1] - The usage of Doubao large model tokens surged from 120 billion in May 2024 to over 30 trillion by September 2025, marking a 253-fold increase [1] - The policy support for computing power and data is advancing, with over 50 standards to be revised or established by 2027 to enhance the computing power standard system [1] Group 2 - The domestic AI ecosystem is continuously improving, with the AI industry chain accelerating, indicating a potential spiral growth in large models, computing power, and applications [2] - As of October 22, 2025, the CSI Artificial Intelligence Theme Index accounted for 6.3% of the total A-share trading volume, showing a recovery in trading density [2] - The CSI Artificial Intelligence Theme Index (930713) rose by 2.63% on October 24, 2025, with significant gains in constituent stocks such as Huida Technology (up 10.00%) and Beijing Junzheng (up 7.11%) [2] Group 3 - The AI Artificial Intelligence ETF has the lowest management fee of 0.15% and a custody fee of 0.05% among comparable funds [3] - As of October 23, 2025, the AI Artificial Intelligence ETF had a tracking error of 0.009% over the past three months, the highest tracking accuracy among comparable funds [3] - The CSI Artificial Intelligence Theme Index includes 50 listed companies that provide essential resources, technology, and application support for AI, with the top ten stocks accounting for 61.36% of the index [3] Group 4 - The top ten weighted stocks in the CSI Artificial Intelligence Theme Index include companies like Xinyi Sheng (6.52%), Zhongji Xuchuang (6.71%), and Hanwujing (6.45%), reflecting their significant influence on the index [5] - The AI Artificial Intelligence ETF is connected to various fund classes, enhancing its accessibility to investors [5]

Core Insights - In the past five trading days, a total of 129 companies were investigated by institutions, with New Strong Union, Multi-Fluorine, and Hikvision being the most frequently researched [1][2] Group 1: Institutional Research Activity - 90.70% of the companies investigated had participation from securities firms, with 117 companies being researched by them [1] - Fund companies conducted research on 100 companies, while private equity firms investigated 71 companies [1] - New Strong Union received the highest attention with 189 institutions participating in its research, followed by Multi-Fluorine with 184 institutions [1] Group 2: Financial Performance and Trends - Among the stocks investigated by more than 20 institutions, 17 experienced net capital inflows in the past five days, with Shenghong Technology seeing the highest net inflow of 1.611 billion yuan [1] - New Strong Union and Multi-Fluorine also had significant net inflows of 171 million yuan and 523 million yuan, respectively [1] - In terms of stock performance, 27 stocks among those investigated saw price increases, with the highest gainers being Boying Special Welding and New Strong Union, which rose by 28.88% and 22.87%, respectively [2] Group 3: Quarterly Earnings Reports - 37 stocks have released their third-quarter reports, with New Strong Union and Shijia Photon showing the highest year-on-year net profit growth of 1939.50% and 727.74%, respectively [2] - Three companies have issued earnings forecasts for the first three quarters, all indicating profit increases, with Tailin Micro's expected net profit growth at 118.00% [2]

Core Insights - Hikvision launched the "STAR Technology Public Welfare Installer Partner Program" during the "International Installers and Technicians Conference," aiming to unite global installers to promote technology-driven public welfare projects [1][2] Group 1: STAR Technology Public Welfare Program - The "STAR Technology Public Welfare Partner Program" has collaborated with over 30 public welfare organizations since its inception on October 23, 2020, covering 14 countries and regions [2][3] - The program focuses on areas such as biodiversity monitoring, environmental governance, digital rural construction, and cultural protection [2][3] Group 2: Challenges in Public Welfare Projects - Public welfare projects often face challenges such as complex implementation environments and high deployment difficulties, especially in remote areas [3] - Hikvision aims to recruit international installers with technical expertise and a commitment to public welfare to assist organizations in overcoming these challenges [3] Group 3: Technological Empowerment in Glacier Monitoring - The rapid melting of glaciers poses significant ecological risks, with approximately 26% of China's glaciers disappearing over the past 60 years [4] - New monitoring technologies have been implemented in glacier-lake areas to provide real-time, high-resolution observations, significantly improving efficiency compared to traditional methods [5][6] - The collaboration between Hikvision and research institutions aims to enhance understanding of glacier-lake dynamics and contribute to ecological protection efforts [6]