Core Viewpoint - Hanmu Huatian has submitted a listing application to the Hong Kong Stock Exchange, with CITIC Securities as the sponsor, aiming to enhance its market presence and expand its operations in the skin and personal care industry [1]. Group 1: Company Overview - Hanmu Huatian is a leading Chinese brand in skin and personal care, covering body care, hair care, and facial care [1]. - According to Frost & Sullivan data, Hanmu Huatian is the top domestic brand in body lotion, body scrub, and facial cleansing mousse based on retail sales in 2024 [1]. - The company ranks among the top ten in the overall Chinese body care market and has the highest growth rate among the top ten brands from 2022 to 2024 [1]. Group 2: Product Development and R&D - The company focuses on core star products, such as body scrubs and body lotions, while gradually expanding its product matrix to include all categories of body, hair, and facial care [1]. - As of September 30, 2025, Hanmu Huatian has 509 main SKUs and emphasizes a consumer-centric integrated product development process [1]. - The company has been recognized as a national high-tech enterprise and a specialized and innovative enterprise in Shandong Province, with a comprehensive R&D system covering raw material development, basic research, technology transfer, product implementation, and efficacy verification [1]. Group 3: Sales Network - Hanmu Huatian has successfully transformed its sales network from a single online channel to a fully integrated online and offline sales network [1]. - Online sales revenue has consistently accounted for 75% to 85% during the historical record period, while the offline channel has accelerated its layout since 2021, covering all 31 provinces, autonomous regions, and municipalities in China [1]. Group 4: Use of Proceeds from IPO - The company plans to use the net proceeds from the IPO primarily for channel development, product marketing, brand building, enhancing R&D capabilities, establishing a global diversified talent pool, strengthening digital and intelligent infrastructure, and for working capital and general corporate purposes [2].

Core Viewpoint - CITIC Securities continues to experience growth in performance, with several financial indicators reaching historical highs, driven by an active capital market and increased investor confidence [1][2][3]. Financial Performance - In 2025, CITIC Securities achieved operating revenue of 748.3 billion yuan, a year-on-year increase of 28.75%, and a net profit attributable to shareholders of 300.51 billion yuan, up 38.46% [2][3]. - The company's net profit exceeded 300 billion yuan for the first time, setting a new historical record [1][2]. - The first three quarters of 2025 saw significant growth, with operating revenue of 558.15 billion yuan, a 32.7% increase, and a net profit of 231.59 billion yuan, up 37.86% [2][3]. Quarterly Breakdown - In 2025, the quarterly operating revenues were as follows: 177.61 billion yuan, 152.78 billion yuan, 227.75 billion yuan, and 190.15 billion yuan, reflecting year-on-year growth rates of 29.13%, 11.69%, 55.71%, and 7.75% respectively [2][3]. - The net profit for the quarters was 65.45 billion yuan, 71.74 billion yuan, 94.4 billion yuan, and 68.92 billion yuan, with growth rates of 32%, 27.85%, 51.54%, and 40.51% respectively [2][3]. Market Position and Activities - CITIC Securities ranked first in the industry for IPO underwriting, with 17 IPOs and an underwriting amount of 249 billion yuan in 2025, marking an over 80% increase [5][6]. - The company also led in refinancing, with 41 cases raising 229 billion yuan, a 230% increase year-on-year [6]. - The total assets of CITIC Securities reached 2.08 trillion yuan by the end of 2025, a 21.79% increase from the previous year, making it the first domestic securities firm to exceed 2 trillion yuan in total assets [4][6]. Business Segments - The brokerage business saw a significant boost, with net income of 109.39 billion yuan, a 52.9% increase, ranking first among listed brokers [7]. - The asset management business showed slower growth, with net income of 87.03 billion yuan, a 16.37% increase, lagging behind competitors [7]. - The self-operated business generated 316.03 billion yuan in revenue in the first three quarters, accounting for 56.62% of total revenue, driven by a 190% increase in investment income [7]. International Expansion - CITIC Securities is actively pursuing international expansion, enhancing cross-border service capabilities, and benefiting from strong performance in the Hong Kong market, leading to rapid growth in overseas revenue [3][6].

Core Viewpoint - Inclusive reform is identified as the core content of capital market reform during the "14th Five-Year Plan" period, emphasizing the construction of a capital market system based on "expanding financing + strengthening investment + precise regulation + deep opening" [1] Group 1: Capital Market Development - Continuous strengthening of capital market institutional supply will support technological innovation, optimize industrial structure, enhance resident wealth, and build a strong financial nation [1] - The securities industry is expected to encounter significant structural opportunities in investment banking, derivatives, wealth management, and internationalization [1] Group 2: Investment Recommendations - Two investment themes are suggested: 1) Leading securities companies aiming to become international first-class investment banks; 2) Medium to large securities companies with the potential to enter the top tier [1]

Core Viewpoint - The investment plan of 4 trillion yuan by State Grid during the 14th Five-Year Plan period solidifies expectations for stable and strong growth in power grid investments over the next five years, while clarifying development directions such as ultra-high voltage, direct current transmission, and digital intelligence [1] Group 1: Investment Opportunities - Two key investment directions are recommended: 1) Domestic power equipment leading companies closely related to the domestic power grid investment climate and major projects like ultra-high voltage and flexible direct current [1] 2) Leading companies benefiting from significant domestic construction investments, while also considering high demand in overseas markets or emerging fields like AI [1]

Core Viewpoint - The adjustment of financing margins does not affect the overall upward trend of the market but will impact its structure [1] Group 1: Market Dynamics - The competition among thematic sectors is intensifying, marking the end of a one-sided trend driven solely by narratives and capital relay [1] - As the annual report forecast period approaches, the importance of performance indicators is rising again [1] Group 2: Investment Strategy - The massive redemption of ETFs is part of a counter-cyclical adjustment, providing a window for allocation funds to enter the market comfortably [1] - An optimal investment portfolio should focus on experiences that are good, have low resistance, and reduce anxiety, based on "resources + traditional manufacturing pricing weight estimation" [1] - Recommended sectors for investment include chemicals, non-ferrous metals, power equipment, and new energy, with opportunities to increase allocation in non-bank sectors (securities, insurance) during dips [1] - Enhancing returns can be achieved through selective service consumer products (such as duty-free and aviation) or high-growth sectors (such as semiconductor equipment) [1]

Core Viewpoint - The adjustment of financing margins does not affect the overall upward trend of the market but will impact its structure [1] Group 1: Market Dynamics - The competition among thematic sectors is intensifying, marking the end of a one-sided trend driven solely by narratives and capital relay [1] - As the annual report preview period approaches, the importance of performance indicators is rising again [1] Group 2: Investment Strategy - The massive redemption of ETFs is part of a counter-cyclical adjustment, providing a window for allocation funds to enter the market comfortably [1] - An optimal investment portfolio should focus on experiences that are good, face low resistance, and reduce anxiety, based on "resources + traditional manufacturing pricing weight estimation" [1] - Recommended sectors for investment include chemicals, non-ferrous metals, power equipment, and new energy, with opportunities to increase allocation in non-bank sectors (securities, insurance) during dips [1] - Additionally, enhancing returns can be achieved through selective consumer service sectors (such as duty-free and aviation) or high-growth sectors (such as semiconductor equipment) [1]

Core Viewpoint - The investment plan of 4 trillion yuan by the State Grid during the "14th Five-Year Plan" period solidifies the expectation of steady and strong growth in power grid investment over the next five years, with a focus on ultra-high voltage, direct current transmission, and digital intelligence development [1][2]. Group 1: Investment Plan - The State Grid's fixed asset investment is expected to reach 4 trillion yuan during the "14th Five-Year Plan," representing a 40% increase compared to the "13th Five-Year Plan" [2]. - The average annual investment is projected to be 800 billion yuan, with a compound annual growth rate (CAGR) approaching double digits, slightly exceeding the growth of electricity consumption [2]. Group 2: Green Transition and Carbon Neutrality - The State Grid aims to support national carbon peak goals, with an expected annual increase of around 200 million kilowatts in new wind and solar energy installations, pushing non-fossil energy consumption to 25% and electricity's share in final energy consumption to 35% [3]. - The development goals indicate a steady improvement in energy application greening and electrification levels, promoting the widespread application of intelligent devices and systems suitable for high renewable energy ratios [3]. Group 3: New Power System Construction - During the "14th Five-Year Plan," the State Grid plans to establish a new power grid platform characterized by collaborative main and distribution networks, enhancing cross-regional transmission capacity by over 30% compared to the end of the "13th Five-Year Plan" [4]. - The construction will focus on interconnectivity and digital intelligence, with significant investments in ultra-high voltage, direct current transmission, and intelligent microgrid systems expected to maintain high demand [4].

Core Viewpoint - Yuexiu Capital plans to sell up to 1% of CITIC Securities' total shares through the secondary market, which is expected to generate significant investment returns and optimize its asset structure [3][4]. Group 1: Yuexiu Capital's Shareholding and Reduction - As of January 16, 2026, Yuexiu Capital holds 12.66 billion shares of CITIC Securities, accounting for 8.54% of the total shares, with a potential market value of approximately 4.16 billion yuan from the planned reduction [4][5]. - The average holding cost for Yuexiu Capital is about 15.1 yuan per share, resulting in a return rate of approximately 86% based on the latest closing price [5]. - The reduction is expected to have a short-term impact on CITIC Securities' stock price, but it is not anticipated to affect the fundamental performance of the brokerage sector [4][6]. Group 2: Financial Performance of CITIC Securities - CITIC Securities reported a revenue of 74.83 billion yuan for the fiscal year 2025, representing a year-on-year growth of 28.75%, and a net profit of 30.05 billion yuan, up 38.46% [6]. - The growth is attributed to an overall upturn in the domestic capital market, increased trading activity, and successful international expansion [6]. Group 3: Strategic Moves and Management Changes - Yuexiu Capital plans to invest up to 1 billion yuan to increase its stake in Beijing Holdings, indicating a shift in asset allocation strategy [6][8]. - The company has recently undergone a management change, with a new chairman and other key appointments aimed at enhancing operational efficiency [8].

Core Viewpoint - The adjustment of financing margin does not affect the overall upward trend of the market but will impact its structure, leading to intensified competition among thematic sectors and the end of a one-sided trend driven solely by narratives and capital relay [1][2][3]. Market Dynamics - Historical experience shows that an increase in financing margin effectively reduces market volatility in the short term, as evidenced by a decrease in the standard deviation of daily returns from 1.61% to 1.45% after a margin increase in 2015, with a maximum drawdown of only 5.9% [1]. - Following the margin adjustment, the average daily trading volume in A-shares dropped from 10,298 billion yuan to 8,774 billion yuan, a decline of 14.8%, indicating a significant cooling of investor sentiment [1]. - The current financing buy-in ratio is relatively low, with an average of 11.18% since 2026, lower than the 12.11% observed before the 2015 margin adjustment [2]. Thematic Sector Analysis - The adjustment of financing margin is seen as a targeted cooling measure for overheated thematic speculation, particularly affecting sectors reliant on transaction volume and information dissemination [2][3]. - The current market is still in an upward trend, with active funds likely to seek opportunities in thematic investments, especially in sectors like commercial aerospace that have real industrial trends [3]. Earnings Forecast Period - The market has entered the earnings forecast period, with companies that have issued profit warnings outperforming those with profit increases, which is atypical compared to previous years [3][4]. - As of January 16, 2026, the cumulative increase for the profit warning group was 21.1%, surpassing the 19.7% increase for the profit increase group [4]. Global Market Influences - The strengthening of the US dollar and Bitcoin indicates a critical period for validating sustained AI demand, with Bitcoin rising to $95,500, a 9.2% increase since the end of the previous year [4]. - The upcoming earnings reports from major tech companies will be crucial in shifting market focus back to sectors with strong performance rather than speculative themes [4]. ETF Market Movements - A record net redemption of 141.2 billion yuan in ETFs occurred from January 12 to 16, 2026, primarily in broad-based ETFs, while thematic ETFs continued to see inflows [5]. - This trend of net redemptions in broad-based ETFs does not negatively impact the overall market trend, providing an opportunity for allocation into high-quality stocks [5]. Investment Strategy - A well-structured investment portfolio should focus on sectors with good experiences, low resistance, and anxiety mitigation, particularly in resources and traditional manufacturing [6]. - The strategy includes increasing allocations to non-bank financials and capturing opportunities in domestic consumption sectors to enhance returns while managing volatility [6].

Core Viewpoint - The adjustment of financing margin does not affect the overall upward trend of the market but will impact its structure [1] Group 1: Market Dynamics - Historical experience shows that an increase in financing margin can effectively reduce market volatility in the short term, as seen in November 2015 when the margin requirement was raised from 50% to 100%, leading to a decrease in volatility from 1.61% to 1.45% [1] - Following the margin adjustment, the average daily trading volume in A-shares dropped from 10,298 billion to 8,774 billion, a decline of 14.8%, indicating a significant cooling of investor sentiment [1] - The current financing buy-in ratio is relatively low, with an average of 11.18% since 2026, compared to 12.11% before the 2015 margin adjustment [2] Group 2: Sector Analysis - The adjustment is expected to particularly impact sectors that rely heavily on speculative trading and narrative-driven investments, such as commercial aerospace and AI applications, which have seen significant financing increases [2][3] - The current market is characterized by a desire for upward movement, with active funds likely to seek opportunities in thematic investments, especially those with real industrial trends [3] Group 3: Earnings Forecasts - As the market enters the earnings forecast period, the weight of performance indicators is increasing, with companies that have issued profit warnings outperforming those with profit increases, a trend not typically observed in previous years [4][5] - The cumulative increase for companies with profit warnings reached 21.1%, surpassing the 19.7% increase for profit-increasing companies as of January 16, 2026 [4] Group 4: Global Market Influences - The strengthening of the US dollar and Bitcoin indicates a critical period for validating sustained AI demand, with Bitcoin rising to $95,500, a 9.2% increase since the end of the previous year [6] - The upcoming earnings reports from major tech companies will be crucial in determining whether market attention shifts back to strong performance in real industries [6] Group 5: Investment Strategy - A well-structured investment portfolio should focus on sectors with good experiences, low resistance, and anxiety mitigation, particularly in traditional manufacturing and resource sectors [8] - Investors are encouraged to increase allocations in non-bank financials and high-growth sectors while capturing opportunities in domestic consumption and high-certainty industries [8] Group 6: ETF Dynamics - The recent massive redemption of ETFs, totaling 141.2 billion, is part of a counter-cyclical adjustment, providing a window for allocation by institutional investors [7] - The net redemption was concentrated in broad-based ETFs, while industry-specific ETFs continued to see inflows, indicating a shift in investor strategy [7]