Investment Rating - The report initiates coverage with a "Buy" rating for Anfu Technology [6][7]. Core Insights - Anfu Technology has successfully acquired high-quality assets from Nanfu Battery, enhancing cash flow stability and profitability. The company is positioned for external expansion and has entered the domestic GPU sector through investments [6][7]. - Nanfu Battery, primarily focused on domestic alkaline battery sales, has shown strong ROE performance and is expected to maintain robust growth in revenue and profitability [6][7]. - The report highlights the strategic importance of Nanfu Battery's market position and its potential for growth in both domestic and international markets, driven by production capacity expansion and export initiatives [6][7]. Summary by Sections 1. Anfu Technology: Acquisition of High-Quality Assets - Anfu Technology, formerly known as Andeli Department Store, transitioned to focus on battery production after acquiring controlling interest in Nanfu Battery in 2022. The acquisition was structured to optimize financial performance and compliance, earning recognition in the Shanghai Stock Exchange's compilation of typical M&A cases [6][19]. - The company has plans to increase its stake in Nanfu Battery to 46% by 2025, which is expected to significantly boost its profitability [6][7]. 2. Nanfu Battery: Domestic Leader in Alkaline Batteries - Nanfu Battery has established itself as a leading brand in the domestic market, with a strong focus on alkaline batteries, which accounted for 77.3% of its revenue in 2024. The company has maintained a high ROE, with figures reaching 81.2% in 2024 [6][7]. - The company is expanding its production capacity, with plans to build four new production lines, which will enhance its competitiveness in the export market [6][7]. 3. Battery Industry: Steady Demand Growth - The report notes that the global market for zinc-manganese batteries is expected to grow steadily, with China's manufacturing capabilities leading the way. The domestic market for alkaline batteries is projected to increase as penetration rates improve [6][7]. - The report emphasizes the potential for export growth, with Nanfu Battery's export revenue expected to grow at a CAGR of 60.3% from 2022 to 2024 [6][7]. 4. Financial Forecast and Valuation Analysis - The financial projections indicate that Anfu Technology's net profit attributable to shareholders is expected to grow significantly, with estimates of 226 million, 405 million, and 440 million yuan for 2025, 2026, and 2027, respectively [6][7]. - The report suggests a target market capitalization of 14.2 billion yuan based on a comparable company average PE ratio of 35X, indicating a potential upside of 25% from current levels [6][7].

Core Insights - The report highlights the significant advantages of ASIC over GPU in terms of cost-effectiveness and energy efficiency, marking a turning point for ASIC development [5][15] - The increasing penetration of AI is driving a surge in inference demand, expanding the market space for ASICs, with projections indicating the global AI ASIC market could reach $125 billion by 2028 [6][15] - The report emphasizes the importance of ASIC design service providers, noting that companies like Broadcom and Marvell hold significant market shares and are crucial for the successful deployment of ASIC technology [6][15] Summary by Sections Computer Industry Deep Dive - ASICs are specialized chips tightly coupled with downstream applications, focusing on specific needs like text and video inference, while GPUs are general-purpose [5][15] - ASICs demonstrate superior energy efficiency, with Google's TPU v5 showing 1.46 times the efficiency of NVIDIA's H200, and Amazon's Trainium2 reducing training costs by 40% compared to GPU solutions [5][15] - The demand for inference capabilities is expected to grow significantly, driven by applications like ChatGPT, which reached 700 million weekly active users by July 2025 [6][15] Market Trends - The report forecasts that the AI ASIC market will see substantial growth, with Broadcom estimating a serviceable market for large clients of $60-90 billion by 2027 [6][15] - Domestic cloud providers are increasingly investing in self-developed ASICs, with companies like Baidu and Alibaba making significant advancements in their chip development [15][16] - The report identifies two core trends in the development of domestic ASICs: PD separation and super nodes, which enhance performance and adaptability to diverse industry needs [15][16] Investment Recommendations - The report suggests focusing on companies with strong self-developed technology platforms in the small nucleic acid drug sector, highlighting firms like Rebio and Hengrui Medicine as potential investment opportunities [17] - It also recommends monitoring the performance of companies involved in the aluminum electronic materials sector, particularly Xinjiang Zhonghe, which is expected to benefit from its integrated supply chain and new alumina projects [18][20] - The report indicates that the data center industry, particularly companies like GDS Holdings, is poised for growth due to increasing demand for AI infrastructure and cloud services [21][23]

Core Insights - The report highlights the significant advantages of ASIC over GPU in terms of cost-effectiveness and energy efficiency, marking a turning point for ASIC development [2][12] - The increasing penetration of AI is driving a surge in inference demand, expanding the market space for ASICs [3][12] - Domestic cloud providers are making strides in self-developed ASICs, indicating a strong demand in the Chinese AI cloud market [12][13] Summary by Sections ASIC vs. GPU - ASICs are specialized chips tightly coupled with downstream applications, focusing on specific needs like text and video inference, while GPUs are general-purpose chips covering a broader range of applications [2][12] - The energy efficiency of Google's TPU v5 is 1.46 times that of NVIDIA's H200, and Amazon's Trainium2 reduces training costs by 40% compared to GPU solutions [2][12] Market Growth and Demand - The global AI ASIC market is projected to reach $125 billion by 2028, with significant contributions from major clients [3][12] - The demand for inference computing is directly linked to throughput, with ChatGPT's weekly active users reaching 700 million by July 2025, driving the need for increased computational power [3][12] ASIC Design Services - ASIC design requires a high level of specialization, with major service providers like Broadcom and Marvell leading the market [3][12] - Broadcom's collaboration with Google on TPU has been pivotal, leveraging a comprehensive IP system and advanced packaging technologies [3][12] Domestic Developments - Leading Chinese cloud providers are achieving results in self-developed ASICs, with significant orders and advancements in technology [12][13] - The trends of PD separation and super nodes are emerging as key developments in the domestic ASIC landscape [12][13] Industry Outlook - The report anticipates a robust growth trajectory for the ASIC market, driven by increasing AI applications and domestic innovation [12][13]

Economic Indicators - The final annualized quarterly GDP growth rate for the US in Q2 2025 was significantly revised up to 3.8%, from a previous estimate of 3.3%, marking the strongest performance since Q3 2023[6] - The strong GDP growth has cooled global interest rate cut expectations, with the probability of a 25 basis point cut in October now at 89.8%, down from 91.9%[3] Market Performance - The S&P 500 index closed at 6643.70, showing a decline of 0.31% over the week, while the Hang Seng Index and KOSPI led declines in the Asia-Pacific region[8] - The technology sector in the US saw a significant outflow of $4.33 billion, while China's technology sector experienced an inflow of $3.55 billion[3] Fund Flows - In the past week, US equity markets saw inflows of $8.26 billion, while Chinese markets attracted $5.48 billion[15] - Developed markets experienced notable inflows, with US fixed income funds seeing an inflow of $18.85 billion[15] Commodity Prices - Brent crude oil prices increased by 4.60%, and COMEX gold rose by 2.83% during the week, indicating a stronger inflation outlook[3] - The US dollar index rose by 0.55%, currently standing at 98.2, remaining below the 100 mark[9] Valuation Metrics - The risk-adjusted return percentiles for the S&P 500 and NASDAQ decreased to 49% and 45%, respectively, indicating a decline in perceived investment quality[3] - The PE percentile for the S&P 500 and DAX is at 93.0% and 89.5%, respectively, suggesting high valuations compared to historical averages[3]

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - The weakening of the diversion effect of large - scale assets has helped REITs stabilize, and the valuation has回调 to the historical center. The net subscription yield of REITs offline in 2025 is 3.45%. In the second half of September, 10 REITs announced dividend plans, and 1 REIT will be lifted from the restricted - sale period after the holiday. The discount rate of the initial offering valuation of REITs has narrowed, and the cultural and tourism category led in the bidding this month [3][5][36]. 3. Summary According to the Directory 3.1 Diversion Effect Weakens to Help REITs Stabilize, Valuation回调 to Historical Center - **Market Performance**: In September 2025, the CSI REITs index fell 1.82%, with the decline narrowing compared to August. The diversion effect of large - scale assets weakened, and the asset shortage narrative continued. All types of REITs indexes fell, but the decline generally narrowed. The energy sector had the shallowest decline, and the decline of rental housing and consumer sectors narrowed significantly. The daily average turnover rate of Shanghai and Shenzhen REITs was 0.43%, halved compared to the beginning of the year [3][9][14]. - **Yield and Valuation**: As of September 26, 2025, the dividend yield of equity - type REITs was 3.96%, with a spread of 2.08% against the 10 - year Treasury yield and - 0.67% against the dividend yield of high - dividend stocks. Except for the consumer category, the percentile of the dividend yield (TTM) of each asset type increased compared to the end of August. The valuations of equity - type and concession - type REITs both回调 to around the 50% historical percentile. The latest IRR of each asset increased compared to the end of August [26][30][31]. 3.2 Three REITs Launched Offerings in September, and the Offline Subscription Yield in 2025 was 3.45% - **New Offerings**: In September 2025, 3 REITs were under offline inquiry, with a total estimated issuance scale of 5.12 billion yuan. As of September 26, there were 74 listed REITs in Shanghai and Shenzhen, with a total market value of 219 billion yuan [40]. - **Offline Subscription Yield**: Since 2025, excluding extreme values, the offline subscription income of REITs in 0.5 - billion - yuan/1 - billion - yuan cash accounts totaled 1.7234 million/3.4468 million yuan, with an offline subscription yield of 3.45% [45]. 3.3 Ten REITs Announced Dividend Plans in the Second Half of the Month, and One REIT will be Lifted from the Restricted - Sale Period after the Holiday - **Dividend Plans**: In the second half of September 2025, 10 REITs announced dividend plans, including华安张江产业园REIT,平安宁波交投REIT, etc. [50]. - **Restricted - Sale Period Lifting**:部分战略配售份额 of华夏合肥高新产园REIT will be lifted from the restricted - sale period on October 10, 2025, with 35 million shares to be lifted [48]. 3.4 The Discount Rate of REITs' Initial Offering Valuation Narrowed, and the Cultural and Tourism Category Led in the Bidding this Month - **Pending and Under - Review Projects**: As of September 26, 2025, 3 REITs were registered but not issued, and 11 were under review at the exchange. A new public - utility initial offering project was accepted this month [55]. - **Valuation Update**: The latest valuations of the underlying assets of 3 newly registered REITs did not change compared to the feedback reply drafts. The discount rates of the initial offering valuations of the latest 3 initial offerings all narrowed [60][61]. - **Bidding and Proposed Application Update**: In the second half of September 2025, the bidding information of 3 REITs was updated, involving 2 cultural and tourism projects. Yunnan Stone Forest Tourism Group Co., Ltd. and Chengdu Dujiangyan Investment Development Group Co., Ltd. planned to issue REITs for their cultural and tourism assets [65][68].

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - The issuance and net financing of local government bonds increased on a week - on - week basis this period, and are expected to decline during the National Day holiday next period. As of September 26, 2025, the cumulative issuance progress of new general bonds and new special bonds is lower than that of 2024, with the progress of new general bonds higher but that of new special bonds lower than that of 2023 [2]. - The planned issuance scale of local government bonds from October to November 2025 is 840 billion yuan, including 485.8 billion yuan of new special bonds. As of September 26, 2025, 25 regions have disclosed this information [2]. - This period saw the issuance of 50.6 billion yuan of special new special bonds and 11.4 billion yuan of special refinancing bonds for replacing hidden debts. As of September 26, 2025, the cumulative issuance of special new special bonds reached 1,201.2 billion yuan, and that of special refinancing bonds for replacing hidden debts reached 1,986.2 billion yuan, with an issuance progress of 99.3% [2]. - The spread between 10 - year and 30 - year local government bonds and treasury bonds widened this period, and the weekly turnover rate increased on a week - on - week basis. As of September 26, 2025, the spreads were 22.32BP and 18.30BP respectively, up 6.21BP and 1.26BP from September 19, 2025. The weekly turnover rate of local government bonds was 1.26%, up from 0.87% in the previous period [2]. - The cost - effectiveness of exploring the spread between local government bonds and treasury bonds has improved [2]. 3. Summary According to the Table of Contents 3.1 This Period: Local Government Bond Issuance Increased, and the Weighted Issuance Term Lengthened - The total issuance of local government bonds this period (September 22 - 28, 2025) was 196.051 billion yuan (188.519 billion yuan in the previous period), and the expected issuance next period (September 29 - October 3, 2025) is 107.153 billion yuan. The weighted issuance term of local government bonds this period was 19.81 years, longer than 15.89 years in the previous period [2][9][11]. - As of September 26, 2025, the cumulative issuance of new general bonds and new special bonds accounted for 82.7% and 82.6% of the annual quota respectively, and 83.9% and 83.8% considering the expected issuance next period. The cumulative issuance progress in 2024 was 82.1%/85.0% and 84.4%/89.8%, and in 2023 was 89.6%/84.7% and 90.1%/87.0% [2][12][16]. - As of September 26, 2025, 25 regions have disclosed that the planned issuance scale of local government bonds from October to November 2025 is 840 billion yuan (540.6 billion yuan in October and 299.4 billion yuan in November), including 485.8 billion yuan of new special bonds (367.8 billion yuan in October and 118 billion yuan in November) [2][22][23]. - As of September 26, 2025, the cumulative issuance of special new special bonds reached 1,201.2 billion yuan (50.6 billion yuan issued this period); the cumulative issuance of special refinancing bonds for replacing hidden debts reached 1,986.2 billion yuan (11.4 billion yuan issued this period), with an issuance progress of 99.3%, and 31 regions such as Zhejiang have completed the issuance [2][20]. 3.2 This Period: The Spread between 10 - year and 30 - year Local Government Bonds and Treasury Bonds Widened, and the Weekly Turnover Rate Increased on a Week - on - Week Basis - As of September 26, 2025, the spreads between 10 - year and 30 - year local government bonds and treasury bonds were 22.32BP and 18.30BP respectively, up 6.21BP and 1.26BP from September 19, 2025, and were at the 67.90% and 72.00% historical quantiles since 2023 [2][26][31]. - The weekly turnover rate of local government bonds this period was 1.26%, up from 0.87% in the previous period. The yields and liquidity of 7 - 10 - year local government bonds in regions such as Yunnan, Guizhou, and Shandong were better than the national average [2][38]. - Taking the 10 - year local government bond as an observation anchor, since 2018, the upper limit of the spread adjustment may be 20 - 25BP above the lower limit of the issuance spread, and the lower limit may be near the lower limit of the issuance spread. Currently, the upper limit of the spread between local government bonds and treasury bonds may be around 30 - 35BP, and the lower limit may be around 5 - 10BP [2].

Investment Rating - The report maintains an "Overweight" rating for the internet media industry, indicating a positive outlook compared to the overall market performance [2]. Core Insights - The report emphasizes the ongoing significance of cloud computing and gaming, highlighting the potential for innovation in video group broadcasting. It notes that AI and self-developed chips are pivotal for value reassessment in global internet cloud computing [2]. - The gaming sector is described as fundamentally sound, with mid-term performance and long-term narratives supporting its status as one of the strongest themes in TMT (Technology, Media, and Telecommunications) [2]. - Long videos are expected to benefit from recent regulatory policies, which aim to enhance content supply and project ROI, while short videos are innovating with interactive formats [2]. Summary by Sections Cloud Computing - Alibaba's cloud strategy focuses on becoming a super AI cloud, with significant investments in AI infrastructure projected to increase data center energy consumption tenfold by 2032. The report anticipates a positive revenue trajectory driven by advancements in domestic models and chips [2]. - Key companies to watch include Alibaba, Tencent, Baidu, and Kingsoft, with their cloud computing and AI applications expected to drive growth [2]. Gaming - The gaming industry has seen a continuous revenue acceleration over four quarters, with profit margins at their highest since Q2 2023. The report forecasts a PE range of 15-20x for 2026, suggesting that valuations are not overstated [2]. - Notable companies include Tencent, NetEase, Giant Network, and others, with specific titles and projects expected to contribute to their growth [2]. Long Video - The report highlights the establishment of a policy bottom for the broadcasting industry, which is expected to resolve core contradictions in content supply. The focus is on the potential for innovation in variety shows and the integration of short video elements into long video formats [2]. - Companies like Mango TV are noted for their upcoming projects and stable operations, while the report suggests that long video platforms are adapting to new interactive programming trends [2]. Other Key Areas - The report also mentions emotional consumption sectors such as NetEase Cloud Music, Pop Mart, and others, indicating a broad interest in various entertainment segments [2].

Investment Rating - The report maintains a positive outlook on the petrochemical industry, indicating a recovery in industry prosperity [3][5]. Core Viewpoints - The "Petrochemical Industry Steady Growth Work Plan" aims for an average annual growth of over 5% in the industry's added value from 2025 to 2026, with a focus on stabilizing economic benefits and enhancing technological innovation [4][5]. - The report highlights five key initiatives to achieve these goals, including strengthening technological innovation, expanding effective investment, and enhancing market demand [6][10]. - The upstream sector is experiencing a trend of widening supply and demand, with expectations of oil prices maintaining a medium to high level despite potential downward adjustments [4][18]. - The refining sector is seeing improved profitability due to a recovery in oil prices, although the current product price differentials remain low [4][45]. - The polyester sector shows signs of recovery, with expectations for improved profitability as supply and demand conditions improve [14]. Summary by Sections Upstream Sector - Brent crude oil prices increased to $70.13 per barrel, a 5.17% rise week-on-week, while WTI prices rose to $65.72 per barrel, up 4.85% [4][18]. - U.S. commercial crude oil inventories decreased to 415 million barrels, down 610,000 barrels from the previous week, and are 4% lower than the five-year average [20][22]. - The number of U.S. drilling rigs increased to 549, up 7 rigs week-on-week, but down 38 rigs year-on-year [28]. Refining Sector - The Singapore refining margin for major products fell to $13.54 per barrel, down $4.51 from the previous week [4]. - The report notes that while refining product price differentials have improved, they remain at low levels, with expectations for gradual improvement as the economy recovers [4][45]. Polyester Sector - PTA prices have stabilized, with the average price in East China at 4528.6 CNY per ton, down 1.69% week-on-week [4]. - The report anticipates a gradual improvement in the polyester industry as new capacity additions taper off in the coming years [14]. Investment Recommendations - The report recommends focusing on leading companies in the polyester sector, such as Tongkun Co. and Wankai New Materials, as well as high-quality refining companies like Hengli Petrochemical and Sinopec [14][15]. - It also suggests monitoring companies in the upstream exploration and development sector, which are expected to maintain high profitability due to sustained capital expenditures [14].

Investment Rating - The report maintains a "Positive" rating for the chemical industry [5][6][20] Core Insights - The petrochemical industry is expected to see stable growth due to the introduction of policies aimed at enhancing industry health and eliminating outdated capacity [5][6] - The demand for viscose filament is anticipated to tighten, leading to an upward trend in prices, while the grass herbicide market is expected to optimize its structure [5][6] - The global GDP growth is projected to remain at 2.8%, with stable oil demand despite some slowdown due to tariff policies [5][6] Industry Dynamics - Oil supply is expected to increase significantly, driven by non-OPEC production, while demand remains stable [5][6] - The coal market is anticipated to experience long-term price stabilization, with easing pressures on downstream sectors [5][6] - Natural gas exports from the U.S. are likely to accelerate, potentially lowering import costs [5][6] Chemical Sector Analysis - The report highlights that the viscose filament industry will see a supply-demand tightening, with a projected increase in operating rates from 84% to over 95% [5][6] - The grass herbicide market is set to address issues of low pricing and quality through upcoming industry meetings aimed at regulating competition [5][6] Investment Recommendations - The report suggests focusing on sectors benefiting from the "anti-involution" policy, including textiles, agriculture, and export-related chemicals [5][6] - Specific companies to watch include Xinxiang Chemical Fiber, Jilin Chemical Fiber, and Lier Chemical, which are expected to benefit from market dynamics [5][6][20] Key Company Valuations - The report provides a valuation table for key companies, indicating various ratings such as "Buy" and "Increase" for companies like Hailir Chemical, Yunnan Chemical, and Wanhu Chemical [20]

Valuation Summary - The overall valuation of A-shares as of September 26, 2025, shows the CSI All Share Index (excluding ST stocks) with a PE of 21.4x and a PB of 1.8x, positioned at the 80th and 40th historical percentiles respectively [1] - The Shanghai 50 Index has a PE of 11.7x and a PB of 1.3x, at the 62nd and 38th percentiles [1] - The ChiNext Index has a PE of 44.2x and a PB of 5.5x, at the 43rd and 63rd percentiles [1] - The STAR 50 Index shows a PE of 187.3x and a PB of 6.6x, at the 100th and 76th percentiles [1] Industry Valuation Comparison - Industries with PE valuations above the 85th percentile include Real Estate, Automation Equipment, Chemical Pharmaceuticals, Electronics (Semiconductors), and IT Services [1] - Industries with PB valuations above the 85th percentile include Electronics (Semiconductors) and Communications [1] - Insurance and White Goods industries have both PE and PB valuations below the 15th percentile [1] Industry Midstream Sentiment Tracking New Energy - In the photovoltaic sector, upstream polysilicon futures prices fell by 2.6%, while downstream battery and module prices increased by 2.8% and 0.4% respectively [2] - Cobalt prices rose by 12.5%, while nickel prices fell by 0.2%. The Democratic Republic of Congo announced the end of its cobalt export ban starting October 15, 2025 [2] - Wind and solar power installations from January to August 2025 increased by 72.1% and 64.7% year-on-year, although growth rates have slowed compared to previous months [2] Financial Sector - Insurance companies reported a cumulative premium income growth of 9.6% from January to August 2025, with a 2.8 percentage point increase from the previous seven months [2] Real Estate Chain - The price of rebar increased by 1.4% this week, while iron ore prices fell by 0.1% [2] - The national cement price index rose by 3.0%, supported by effective production scheduling and new growth plans [2] Consumer Sector - The average price of live pigs fell by 1.8%, while the wholesale price of pork decreased by 0.3% [2] - The wholesale price index for liquor fell by 0.14% in mid-September 2025 [2] Midstream Manufacturing - The value of overseas contracted engineering projects grew by 8.1% year-on-year from January to August 2025, driven by demand in transportation infrastructure and clean energy projects [2] Cyclical Sector - The price of Brent crude oil rose by 4.6% to $69.75 per barrel, influenced by geopolitical tensions affecting Russian refining capabilities [2] - The price of thermal coal fell by 0.4%, while coking coal prices increased by 3.9% [2]