Report Industry Investment Rating No relevant content provided. Core View of the Report - Last week, 16 new products were issued in the US, with a relatively large number of single - stock products and digital currency products. The Defined Duration series ETFs issued by Discipline Funds use a stock - bond hybrid form to anchor the target duration [1][6]. - In the past week, the inflow of US ETFs continued to exceed $30 billion, with a large inflow into stock products. Bitcoin ETFs continued to experience outflows, while the capital flow of gold ETFs remained stable [1][10]. - This year, raw material - related products in US industry - themed products have led the gains, with many products rising by more than 60% [1][16]. - In September 2025, the total amount of non - money public funds in the US was $23.47 trillion, an increase of $0.49 trillion compared to August. Last week, the outflow of US domestic stock funds returned to around $20 billion, and bond products returned to inflows [1][19]. Summary by Directory 1. US ETF Innovation Products - 16 new products were issued last week, including single - stock products (mostly 2 - times leveraged products covering semiconductor, supply - chain, fuel - cell and other companies), municipal bond - related ETFs, strategy ETFs, and digital currency index products [6][7]. - Discipline Funds issued the Defined Duration series ETFs, which use a stock - bond hybrid form to anchor the target duration and aim to obtain more stable returns within a given time frame by evaluating stock duration through valuation indicators and combining with matching bond portfolios [1][9]. 2. US ETF Dynamics 2.1 US ETF Fund Flows - In the past week, the inflow of US ETFs exceeded $30 billion, with a large inflow into stock products. Bitcoin ETFs continued to experience outflows. Vanguard's S&P 500 ETF ranked first in inflows, while State Street's products had the largest outflows. Each S&P 500 ETF has alternated in inflows in recent weeks. BlackRock's Bitcoin and Ethereum ETFs were among the top ten in outflows [1][10]. - The capital flow of gold ETFs remained stable last week, and the capital of the Nasdaq 100 ETF has fluctuated significantly recently [15]. 2.2 US ETF Performance - This year, raw material - related products in US industry - themed products have led the gains. In addition to gold and silver mining, copper mines, rare earths, and other metals have all performed well, with many products rising by more than 60% [1][16]. 3. Recent Fund Flows of US Ordinary Public Funds - In September 2025, the total amount of non - money public funds in the US was $23.47 trillion, an increase of $0.49 trillion compared to August. The S&P 500 rose 3.53% in September, and the scale of US domestic stock products increased by 2.13%, with an increase in redemption pressure that month. - According to weekly statistics, last week, the outflow of US domestic stock funds returned to around $20 billion, and bond products returned to inflows [19].

Investment Rating - The report maintains an "Overweight" rating for the agriculture, forestry, animal husbandry, and fishery industry, indicating a positive outlook compared to the overall market performance [2][46]. Core Insights - The Swine price continues to decline, leading to an increase in losses, while the capacity reduction is expected to accelerate. The pressure on fat pig supply remains significant, and the seasonal demand for pigs may not boost prices, potentially undermining industry confidence [2][3]. - The pet food sector showed strong sales performance during the "Double Eleven" shopping festival, with leading companies achieving significant market share growth. The report suggests focusing on the growth potential of top-tier companies in this sector [2][3]. - The report highlights the stable performance of the white feather broiler chicken market, with slight declines in chick prices but stable chicken meat prices. The overall supply remains abundant, indicating a focus on leading companies for long-term value [2][3]. Summary by Sections Market Performance - The Shenwan Agriculture, Forestry, Animal Husbandry, and Fishery Index rose by 2.7%, while the CSI 300 Index fell by 1.1%. The top five gainers included Green Kang Bio (27.6%), ST Jiawo (23.2%), and Pingtan Development (22.2%) [2][3][9]. Swine Farming - The report notes a continued decline in swine prices, with the average price for external three yuan pigs at 11.56 yuan/kg, down 2.9% year-on-year. Losses for self-breeding sows are reported at -71.95 yuan per head, a week-on-week increase in losses [2][3][41]. Pet Food - The report emphasizes the strong sales of domestic pet food brands during the "Double Eleven" event, with major brands like Guobao Pet and Zhongchong leading in sales rankings across various platforms [2][3]. Poultry Farming - The average selling price for white feather broiler chicks is reported at 3.35 yuan per chick, a week-on-week decrease of 2.9%. The average price for white feather broiler meat is stable at 3.45 yuan/kg [2][3]. Beef Cattle - The report indicates a slight decrease in the prices of beef cattle and calves, with the average price for fattened bulls at 25.6 yuan/kg, down 0.16% week-on-week [2][3].

Investment Rating - The report maintains a positive outlook on the coal industry, indicating an "Overweight" rating for the sector [3]. Core Insights - The report highlights that due to safety and environmental inspections, coal production is expected to tighten, leading to an anticipated increase in coal prices during the heating season [3]. - The report provides specific price data for thermal coal and coking coal, noting price increases and supply constraints in key production areas [3][10][11]. - The report suggests that the demand for thermal coal is expected to rebound during the peak season, recommending specific companies for investment based on their price elasticity and valuation [3]. Summary by Sections Recent Industry Policies and Dynamics - The report discusses the initiation of central ecological and environmental inspections across several provinces and major state-owned enterprises, which may impact coal production [9]. - It mentions the release of guidelines by the National Energy Administration aimed at integrating coal with new energy sources, emphasizing low-carbon transitions [9]. Price Trends - Thermal coal prices have shown mixed trends, with some regions experiencing price increases while others have seen declines [10]. - Coking coal prices have generally increased, with specific price points provided for various regions [13]. Supply and Demand Dynamics - The report notes an increase in daily coal inflow and outflow at the Bohai Rim ports, indicating a tightening supply situation [22]. - It highlights a decrease in power plant inventories and an increase in daily consumption rates, suggesting a growing demand for coal [5][22]. International Oil Prices - The report indicates a rise in Brent crude oil prices, which may influence coal pricing dynamics [17]. Shipping Costs - Domestic and international shipping costs have increased, which could affect overall coal pricing and supply chain logistics [28]. Company Valuation Table - The report includes a valuation table for key companies in the coal sector, providing insights into their market capitalization, earnings per share, and price-to-earnings ratios [33].

Investment Rating - The report maintains a positive outlook on the defense and military industry, indicating an "Overweight" rating for the sector, suggesting it will outperform the overall market [23]. Core Insights - The military industry is entering an upward cycle as per the "14th Five-Year Plan" recommendations, with expectations of performance recovery in Q4 2025, driven by increased military trade and order fulfillment [3][4]. - The report highlights that the military trade landscape is evolving due to rising global geopolitical uncertainties, leading to increased demand for military products, particularly in the Middle East and Asia [3]. - Key investment opportunities are identified in next-generation equipment, unmanned/anti-unmanned weapons, and information/intelligent systems, with a focus on companies that are expected to benefit from these trends [3]. Market Review - Last week, the Shenwan Defense and Military Index fell by 2.15%, while the CSI Military Leaders Index decreased by 1.53%. In comparison, the Shanghai Composite Index dropped by 0.18% and the CSI 300 by 1.08% [4][11]. - The report notes that the defense and military sector's performance ranked 27th among 31 Shenwan primary industries, indicating a relatively poor performance compared to other sectors [4]. - The report lists the top five gainers in the defense sector: Tian'ao Electronics (up 12.63%), Aerospace Development (up 8.54%), *ST Dali (up 7.1%), Aerospace Intelligence Equipment (up 5.72%), and 712 (up 4.21%) [11][12]. Valuation Changes - The current PE-TTM for the Shenwan military sector is 76.94, placing it in the upper range historically, with a valuation percentile of 65.32% since January 2014 and 91.95% since January 2019 [12][13]. - The report indicates a slight differentiation in valuations among sub-sectors, with aerospace and aviation equipment showing relatively high PE valuations since 2020 [12][13].

Investment Rating - The report maintains a "Positive" outlook on the public utilities and environmental protection sectors [3] Core Insights - The report highlights a significant increase in electricity production in October, with total generation reaching 800.2 billion kWh, a year-on-year growth of 7.9% [4][11] - Hydropower and thermal power contributed the most to the increase in electricity generation, while wind power saw a decline of 11.9% compared to the previous year [4][10] - Natural gas prices showed mixed trends globally, with stable prices in Asia and fluctuations in Europe and North America [22][40] Summary by Sections 1. Electricity Production - In October, thermal power generation was 513.8 billion kWh, up 7.3% year-on-year, while hydropower generation reached 135.1 billion kWh, up 28.2% [4][11] - The total increase in electricity generation for October was approximately 58.6 billion kWh, with thermal power contributing 35 billion kWh and hydropower contributing 29.7 billion kWh [10][11] - The Three Gorges Reservoir achieved its water storage target of 175 meters, supporting future hydropower generation [10] 2. Natural Gas Market - As of November 14, the Henry Hub spot price in the U.S. was $3.49/mmBtu, a weekly decrease of 7.32% [22] - The TTF spot price in Europe was €30.80/MWh, showing a slight weekly change of 0.81% [22] - Northeast Asia's LNG spot price remained stable at $11.10/mmBtu, with domestic supply being sufficient [22][40] 3. Investment Recommendations - For hydropower, the report recommends companies like Guotou Power, Chuan Investment Energy, and Huaneng Hydropower due to favorable autumn water conditions [20] - In the green energy sector, companies such as Xintian Green Energy and Longyuan Power are suggested for their stable returns and high utilization hours [20] - For nuclear power, the report highlights China Nuclear Power and China General Nuclear Power as key players due to ongoing approvals for new units [20] - In the thermal power sector, companies like Guodian Power and Inner Mongolia Huadian are recommended due to decreasing fuel costs [20] - The report also suggests focusing on integrated natural gas companies like Kunlun Energy and New Hope Energy for their potential recovery in profitability [42][43]

Investment Strategy Overview - The report highlights the resurgence of resource nationalism driven by de-globalization, emphasizing coal's strategic importance for national energy security. Major coal-producing countries like Indonesia, Mongolia, and the USA are tightening control over coal resources, integrating them into national strategies to bolster energy independence and support domestic industrial and power needs [3][4][5]. Supply Side Analysis - The coal industry is undergoing a significant restructuring, with safety and environmental regulations leading to a more rational supply order. The release of production capacity is expected to be steady but cautious, promoting high-quality development in the coal sector [3][4]. - Domestic supply costs are rising, and coal imports are tightening marginally due to increased scrutiny and regulations [4][32]. Demand Side Analysis - The report anticipates a stable and slight increase in overall coal demand, driven by the rigid growth in electricity consumption and the irreplaceable role of coal in peak regulation and energy security. The expected price range for thermal coal in 2026 is projected to be between 750-800 RMB per ton [3][4][29]. - The resilience of coal power generation is highlighted, particularly in the context of fluctuating renewable energy output, indicating that coal will continue to play a crucial role in the energy mix [3][4]. Investment Recommendations - The report recommends investing in stable, high-dividend companies such as China Shenhua, Shaanxi Coal and Chemical Industry, and China Coal Energy. It also suggests paying attention to companies with price elasticity like Jinkong Coal Industry, Huayang Co., Tebian Electric Apparatus, and Shanxi Coal International [3][4]. - Growth-oriented companies in coal-electricity joint ventures, such as Xinji Energy, are also recommended for consideration [3][4]. Regional Insights - Indonesia's coal production is expected to decline in 2025 due to new resource tax regulations, which will increase export costs and support domestic coal prices [11][12]. - Mongolia's coal production and sales are affected by ongoing political instability, impacting the stability of coal imports [17][18]. - The USA is implementing favorable policies to revitalize its coal industry, including reducing royalty rates and increasing federal land available for coal exploration [21][22]. Future Capacity and Production Trends - Future coal production capacity is expected to be limited, with only about 67 million tons of new capacity projected over the next three years. The focus is shifting towards regions like Xinjiang, which has significant coal reserves and favorable mining conditions [61][67]. - The report notes that the overall coal production in China is unlikely to see significant growth in 2026 due to ongoing safety inspections and regulatory measures [51][53].

Group 1 - The report emphasizes the need for stable investment and strategic layout in emerging sectors, predicting that investment in the construction and decoration industry will stabilize in 2026 due to the orderly progress of local government debt reduction and the implementation of central "two重" projects [3][4][28] - The report highlights that the construction sector is expected to benefit from national strategies, particularly in areas such as regional coordination, new infrastructure, and green development, with the central and western regions anticipated to enter a fast development track [3][30][34] - The report notes that low-valued state-owned enterprises are likely to see valuation recovery, as the construction industry remains a pillar of the national economy, supported by ongoing investment in the central and western regions, urban renewal, and overseas market expansion [3][4][28] Group 2 - The report indicates that fixed asset investment growth has slowed down, with infrastructure, manufacturing, and real estate facing pressures, as evidenced by a 0.5% year-on-year decline in fixed asset investment from January to September 2025 [5][9][28] - It is projected that broad infrastructure investment will grow by 4.2% and narrow infrastructure investment by 3.3% in 2026, driven by debt reduction policies and the launch of major projects under the "十五五" plan [26][27][28] - The report discusses the importance of urban renewal and the construction of quality housing, emphasizing that the modernization of cities will require both the improvement of existing stock and the development of new quality housing [59][60] Group 3 - The report identifies specific companies to watch in various sectors, including Sichuan Road and Bridge, China Chemical, and Donghua Technology in the central and western region investments, and Shenghui Integration and Yaxiang Integration in new infrastructure [3][4][28] - The report highlights the rapid growth of the Artificial Intelligence Data Center (AIDC) sector, predicting a significant increase in market size and emphasizing the opportunities for construction companies in this emerging field [49][54][58] - The report outlines the strategic importance of Xinjiang's development, with plans to accelerate investment in ten major industrial clusters, leveraging its unique geographical advantages [37][39][40]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company reported Q3 revenue of $2.382 billion, a year-over-year increase of 9.7% and a quarter-over-quarter increase of 7.8%, exceeding guidance [5] - The net profit attributable to shareholders was $192 million, reflecting a year-over-year growth of 28.9% and a quarter-over-quarter growth of 44.7% [5] - The gross margin for Q3 was 22%, up 1.6 percentage points quarter-over-quarter, also above the guidance range of 18%-20% [5] - For the first three quarters of 2025, total revenue reached $6.838 billion, a year-over-year increase of 17.4%, with a gross margin of 21.6%, up 5.3 percentage points year-over-year [5] Financial Data and Profit Forecast - The company expects total revenue for 2025 to be $6.6755 billion, with a year-over-year growth rate of 15.5% [7] - The net profit forecast for 2025 is adjusted to $5.123 billion, representing a year-over-year growth of 38.5% [7] - The earnings per share (EPS) for 2025 is projected at 0.64 yuan, with a price-to-earnings (PE) ratio of 185 [7] - The gross margin is expected to be 21.9% for 2025, with a return on equity (ROE) of 3.4% [7] Operational Highlights - The overall utilization rate for Q3 was 95.8%, an increase of 3.3 percentage points quarter-over-quarter [8] - The average selling price (ASP) for wafers increased by 3.1% to $953 per wafer [8] - Revenue from the industrial and automotive sectors increased by 21% quarter-over-quarter, indicating strong demand in these areas [8] - The company plans to increase capital expenditures in Q4, with depreciation and amortization costs rising to $996 million, a year-over-year increase of 19.8% [8]

Investment Rating - The report gives an "Overweight" rating for the shipbuilding sector, indicating a positive outlook for the industry compared to the overall market performance [1]. Core Insights - Historical review shows that improvements in shipping sub-sectors gradually transmit to upstream shipbuilding, with significant price movements observed after a lag of approximately four months following increases in container and oil shipping rates [2][3]. - The second-hand ship price index is expected to surpass the new ship price index, indicating a potential super-cycle in the shipping and shipbuilding sectors. This has occurred four times since 2000, with three instances leading to super-cycle conditions [3]. - The oil tanker charter rates are rising, suggesting an acceleration in the oil shipping sector's recovery, which may positively influence the shipbuilding market as older vessels exit the market [3]. - The new ship price index has shown a weekly increase, primarily driven by rising oil tanker prices, reflecting the transmission of shipping sector recovery to shipbuilding [3]. - Shipbuilding companies are currently undervalued, with significant order backlogs and low market capitalization to order value ratios, indicating potential investment opportunities [3]. Summary by Sections Historical Context - In 2021, the container shipping sector's recovery led to a subsequent rise in shipbuilding stocks after a four-month lag [2]. - In 2022, the oil shipping sector saw a similar pattern, with shipbuilding stocks following oil shipping price increases after a four-month delay [2]. - The anticipated recovery in the container shipping sector in 2024 is expected to align with the shipbuilding sector's performance [2]. Price Trends - The second-hand ship price index is projected to stabilize and exceed previous highs by late 2025, marking a significant trend reversal [3]. - The new ship price index has recently increased by 0.03% week-on-week, driven by oil tanker price increases [3]. Valuation Insights - Key companies in the shipbuilding sector, such as China Shipbuilding and China Shipbuilding Defense, are noted to have low valuation levels relative to their order backlogs, suggesting potential for price appreciation [3].

Investment Rating - The investment rating for the company is maintained as "Outperform" [5]. Core Insights - The company reported a total revenue of 590 million yuan for the first three quarters of 2025, reflecting a year-over-year growth of 4%. The net profit attributable to the parent company was 73 million yuan, up 20% year-over-year [5]. - The second phase of the Thailand Jianlong project is gradually ramping up production, enhancing the company's overseas capacity coordination. The overseas sales revenue reached 155 million yuan, accounting for 26.21% of total revenue, with significant growth in the Thailand operations [5]. - The company is focusing on its core molecular sieve business and increasing R&D investments to expand application scenarios, aiming to improve market share and profitability [5]. Financial Data and Profit Forecast - The company forecasts total revenue of 819 million yuan for 2025, with a year-over-year growth rate of 5.2%. The net profit attributable to the parent company is projected to be 98 million yuan, representing a 31.3% increase [4]. - The gross profit margin is expected to be 29.5% in 2025, with a return on equity (ROE) of 5.5% [4]. - The average price of formed molecular sieve products is revised down from 26,700 yuan/ton to 17,500 yuan/ton for 2025, leading to a downward adjustment of the net profit forecast for 2025 to 98 million yuan [5].