Investment Rating - The report initiates coverage with a rating of "Buy" for the company [2]. Core Insights - The company is positioned as a leading enterprise in wet chemical products, focusing on semiconductor applications and expanding its international and diversified strategies to become a world-class electronic materials company [7][19]. - The semiconductor industry is entering a prosperous cycle, with significant capacity expansion in wafer fabs, which is expected to benefit material suppliers like the company [7][41]. - The company has a robust product matrix, including electronic-grade phosphoric acid and sulfuric acid, which are pivotal for its growth, especially in functional wet chemical products [8][9]. Summary by Sections 1. Company Overview - The company, established in 2008, specializes in the research, production, and sales of wet electronic chemicals, with a focus on semiconductor applications [16]. - It has developed a comprehensive product system, including electronic-grade phosphoric acid, sulfuric acid, and hydrogen peroxide, achieving high standards recognized by major semiconductor manufacturers [16][18]. 2. Industry Outlook - The semiconductor industry is experiencing a "super cycle," with rising demand for storage chips and increased wafer fab utilization, leading to a favorable environment for material suppliers [41][43]. - The report highlights that domestic semiconductor companies are ramping up production, which will further enhance the demand for the company's products [46]. 3. Financial Performance - The company has shown steady revenue growth, with total revenue projected to reach 1,459 million yuan in 2025, reflecting a year-on-year growth rate of 28.3% [6]. - The net profit attributable to the parent company is expected to grow significantly, reaching 227 million yuan in 2025, with a projected PE ratio of 59 [6][8]. 4. Product Development - The company is expanding its product offerings in functional wet chemicals, with a focus on electronic gases and advanced electronic materials, which are expected to contribute to long-term growth [19][20]. - The report indicates that the company has a strong pipeline of new products, with 35 products successfully tested by advanced process customers [19]. 5. Market Position - The company benefits from its affiliation with Xingfa Group, a leading player in the phosphorus chemical industry, providing a strong supply chain advantage [22]. - The company’s market share in electronic-grade phosphoric acid is the highest in China, with significant production capacity planned for the coming years [20][24].

Group 1 - The report highlights that Jinma Amusement has achieved significant performance growth through technological breakthroughs and a comprehensive industry chain layout, covering 13 categories of large amusement facilities and 8 series of virtual immersive projects, with exports to nearly 50 countries [1][2][14] - The amusement equipment industry in China is undergoing structural upgrades driven by policy support and market demand, with the global theme park market expected to reach USD 55.9 billion in 2024, growing by 8.21% year-on-year, indicating a strong recovery trend [2][14] - Jinma Amusement is positioned as a benchmark enterprise in the industry, holding over 240 authorized patents and participating in the formulation of 26 industry standards, while continuously enhancing its R&D capabilities and accelerating the application of AI and robotics in the cultural tourism sector [2][14] Group 2 - The company has a broad customer network, deeply binding with leading domestic theme park groups and entering high-end markets in Europe and the "Belt and Road" emerging markets, with new orders expected to grow by over 40% year-on-year in 2024 [3][14] - Jinma Amusement's strategic investment in Shanghai Matrix Super Intelligence aims to promote the implementation of cultural tourism robotics, establishing a joint venture to create a digital service ecosystem [3][14] - The report projects Jinma Amusement's net profit attributable to shareholders to be CNY 1.09 billion, CNY 2.07 billion, and CNY 3.46 billion for 2025-2027, with corresponding PE ratios of 83, 44, and 26 times, respectively, and assigns a target price of CNY 81.16, indicating a potential upside of 40.7% from the current stock price [3][14]

Investment Rating - The report maintains a positive outlook on the food and beverage industry, particularly in the cyclical direction, emphasizing the importance of domestic demand and consumption [1][7]. Core Views - The report highlights the recent emphasis from authoritative media and high-level officials on the importance of domestic demand, which is crucial for the industry [7]. - Despite a recent pullback in the high-end liquor sector, the report anticipates a recovery in sales and pricing balance in the upcoming quarters, with expectations of a double-digit decline in sales year-on-year for Q1 2026, followed by stabilization in Q2 and a potential turning point in Q3 [7][8]. - The report suggests that high-quality liquor companies are currently in a strategic allocation phase, with recommendations for specific brands such as Luzhou Laojiao, Shanxi Fenjiu, Guizhou Moutai, and Wuliangye [7][8]. - For the consumer goods sector, the report identifies systemic opportunities, with a focus on CPI as a core observation indicator, predicting gradual improvement in food CPI throughout the year [7][10]. Summary by Sections Food and Beverage Weekly Insights - The food and beverage sector experienced a decline of 0.56% last week, with the liquor segment down by 0.20%, underperforming the broader market [6]. - The report notes that the top gainers included Anji Food (+29.65%) and Xichuan Food (+9%), while the biggest losers were Huanlejia (-16.35%) and Zhuangyuan Pasture (-13.19%) [6]. Liquor Sector - Moutai's bottle price is reported at 1550 RMB, with a week-on-week increase of 5 RMB, while the box price is 1560 RMB, also up by 5 RMB. Wuliangye's price remains stable at approximately 780 RMB, and Guojiao 1573 has decreased by 10 RMB to around 820 RMB [8][33]. - The Moutai dealer conference emphasized a market-oriented transformation, focusing on consumer-centric strategies and adjusting product offerings to stabilize market dynamics [8]. Consumer Goods Sector - The report recommends focusing on the restaurant supply chain, particularly in condiments and frozen foods, with specific recommendations for companies like Anji Food, Qianhe Flavor, and Tianwei Food [10]. - The dairy sector is expected to see an improved supply-demand balance in 2026, with recommendations for Yili and New Dairy [10]. Valuation Metrics - As of December 26, the food and beverage sector has a dynamic PE of 20.02x, with a premium rate of 21%, while the liquor sector has a dynamic PE of 18.50x, with a premium rate of 12% [34].

Investment Rating - The report upgrades the investment rating of Baidu Group to "Buy" with a target price of HKD 172.54 per share, indicating an upside potential of 44% [6][2]. Core Insights - Baidu is positioned to benefit from the accelerating demand for AI cloud services, with significant growth in its intelligent cloud business and advancements in its Kunlun chip technology [5][8]. - The company has achieved a market-leading position in AI large model solutions, capturing a 16.6% market share in the first half of 2025 [8][38]. - The report anticipates Baidu's overall revenue for 2025-2027 to be RMB 1285 billion, RMB 1331 billion, and RMB 1410 billion, respectively, with corresponding growth rates of -3%, 4%, and 6% [7][6]. Financial Data and Profit Forecast - Revenue projections for Baidu Group are as follows: - 2023: RMB 1346 billion - 2024: RMB 1331 billion - 2025E: RMB 1285 billion - 2026E: RMB 1331 billion - 2027E: RMB 1410 billion - Non-GAAP net profit estimates are: - 2023: RMB 287 billion - 2024: RMB 270 billion - 2025E: RMB 176 billion - 2026E: RMB 203 billion - 2027E: RMB 220 billion - Adjusted earnings per share are projected to be: - 2023: RMB 10.28 - 2024: RMB 9.65 - 2025E: RMB 6.31 - 2026E: RMB 7.27 - 2027E: RMB 7.87 [4][7]. Industry Overview - The AI cloud market is experiencing rapid growth, with major players like Alibaba and Tencent increasing their capital expenditures significantly since Q3 2024, indicating a competitive landscape [5][14]. - Baidu's intelligent cloud revenue reached RMB 62 billion in Q3 2025, with a year-on-year growth of 31%, contributing to 37% of Baidu's core revenue [28][32]. - The report highlights that Baidu's full-stack AI capabilities, including its self-developed Kunlun chips and comprehensive AI solutions, provide a competitive edge in the market [8][46]. Product Development and Market Position - Baidu's Kunlun chip series is set to expand with the launch of M100 and M300 chips, aimed at enhancing performance for large-scale AI model training and inference [49][50]. - The company has established a strong presence in various sectors, including internet, finance, and energy, with significant deployments of its AI solutions [54][55]. - Baidu's AI applications, such as its intelligent agents and cloud services, are gaining traction, with a total monthly active users (MAU) of nearly 300 million for its core applications [38][8].

Investment Rating - The report maintains an "Optimistic" rating for the chemical industry [2][3] Core Insights - The macroeconomic outlook for the chemical industry indicates a stable increase in oil demand due to global economic recovery and tariff adjustments, with Brent crude oil expected to trade between $55 and $70 per barrel [2][3] - The report highlights the continued rise in long-term contracts for refrigerants and anticipates price increases for organic silicon, suggesting a focus on commercial aerospace and storage sectors [2][3] - The demand for R134a refrigerant is projected to increase significantly due to the growing penetration of electric vehicles, while the import demand for high GWP varieties like R125 may rise as India approaches the final year of its quota baseline [2][3] Summary by Sections Industry Dynamics - Oil supply is constrained by delayed OPEC+ production increases and peak shale oil output, while demand is stabilizing with improved global economic conditions [3] - Coal prices are expected to oscillate at a long-term bottom, with easing pressures on mid and downstream sectors [3] - The U.S. is likely to accelerate natural gas export facility construction, potentially lowering import costs [3] Chemical Sector Analysis - The report suggests a focus on four key areas for investment: 1. Textile and apparel chain, benefiting from high demand and improved supply conditions [2] 2. Agricultural chemicals, with steady growth in fertilizer demand supported by increasing planting areas [2] 3. Export-related chemical products, as global inventories are at historical lows and interest rates are expected to decline [2] 4. "Anti-involution" policies leading to accelerated elimination of outdated capacities [2] Key Companies to Watch - Companies such as Juhua Co., Sanmei Co., Dongyangguang, Yonghe Co., and Haohua Technology are recommended for their potential in the refrigerant market [2] - In the organic silicon sector, companies like Xingfa Group, Luxi Chemical, Dongyue Silicon Material, and Xin'an Chemical are highlighted for their expected price increases [2] - For new materials, attention is drawn to Guocer Materials, Ruihuatai, and calcium titanate materials due to the growing commercial aerospace market [2] Market Trends - The report notes that the overall industrial product PPI decreased by 2.2% year-on-year but increased by 0.1% month-on-month, indicating a recovery in manufacturing demand [5] - The manufacturing PMI for November recorded at 49.2, showing a slight improvement, with overall demand recovering and inventory depletion accelerating [5]

Valuation Summary - The overall valuation of A-shares as of December 26, 2025, shows the CSI All Share (excluding ST) PE at 21.6x and PB at 1.8x, positioned at the historical 81st and 42nd percentiles respectively [2] - The Shanghai Stock Exchange 50 PE is at 11.8x and PB at 1.3x, at the historical 62nd and 42nd percentiles [2] - The CSI 300 PE is at 14.1x and PB at 1.5x, at the historical 65th and 38th percentiles [2] - The CSI 500 PE is at 33.8x and PB at 2.3x, at the historical 64th and 52nd percentiles [2] - The CSI 1000 PE is at 46.4x and PB at 2.5x, at the historical 66th and 46th percentiles [2] - The National Index 2000 PE is at 57.1x and PB at 2.7x, at the historical 73rd and 67th percentiles [2] - The ChiNext Index PE is at 41.3x and PB at 5.6x, at the historical 36th and 64th percentiles [2] - The Sci-Tech 50 PE is at 160.7x and PB at 6.1x, at the historical 97th and 66th percentiles [2] - The ChiNext Index/CSI 300 PE is at 2.9x and PB at 3.7x, at the historical 22nd and 61st percentiles [2] Industry Valuation Comparison - Industries with PE valuations above the historical 85th percentile include Real Estate, Retail Trade, and IT Services [2] - Industries with PB valuations above the historical 85th percentile include Electronics (Semiconductors) and Telecommunications [2] - The Healthcare Services industry has both PE and PB valuations below the historical 15th percentile [2] Industry Sentiment Tracking New Energy - In the photovoltaic sector, the upstream multi-crystalline silicon futures price fell by 1.9%, while the average price of silicon wafers increased by 3.0% [2] - Battery materials saw cobalt prices rise by 4.3% and nickel prices by 8.4%, while lithium prices fluctuated with hexafluorophosphate lithium down by 1.8% and carbonate lithium up by 14.8% [2] - Wind power installations from January to November 2025 saw a year-on-year increase of 59.4%, while photovoltaic installations increased by 33.3% [2] Technology TMT - The Philadelphia Semiconductor Index rose by 2.0%, and the Taiwan Semiconductor Industry Index increased by 5.0% [3] - The DXI Index (DRAM output value) increased by 8.4%, with NAND Flash prices rising by 0.4% [3] - Domestic smartphone shipments from January to November 2025 saw a year-on-year growth of 0.9% [3] Financial Sector - Insurance companies reported a cumulative year-on-year growth of 7.6% in premium income from January to November 2025 [3] Real Estate Chain - The price of rebar fell by 0.5%, while the price of cement decreased by 0.2% [3] - Domestic sales of air conditioners and refrigerators saw significant declines, with year-on-year drops of 39.8% and 15.6% respectively [3] Consumer Sector - The average price of live pigs increased by 0.4%, while wholesale pork prices decreased by 0.6% [3] - The wholesale price index for liquor remained stable, with a slight increase in the price of Feitian Moutai [3] Midstream Manufacturing - The value of overseas contracted engineering projects increased by 9.3% year-on-year from January to November 2025 [3] Cyclical Industries - The price of Brent crude oil rose by 1.7% to $60.73 per barrel, while coal prices fell by 4.4% [3] - The Baltic Dry Index (BDI) fell by 11.5% due to reduced demand for bulk commodities [3]

Quantum Technology - The National Venture Capital Guidance Fund has been launched, focusing on quantum technology, biomedicine, brain-computer interfaces, and other future industries, with an initial capital of 100 billion yuan to attract social capital [5][6] - A significant breakthrough in quantum error correction has been achieved by the University of Science and Technology of China, demonstrating a key milestone in achieving fault-tolerant quantum computing [7][9][10] Biomanufacturing - The European Union has released the Biotechnology Act and associated measures to enhance global competitiveness in biotechnology, aiming to mobilize 10 billion euros in capital from 2026 to 2027 [11][12] - The EU's initiatives include accelerating clinical trials, establishing regulatory sandboxes, and enhancing the application of AI in biomanufacturing, addressing funding shortages and innovation barriers [13][16] Hydrogen Energy and Nuclear Fusion - The Ministry of Industry and Information Technology of China has included three key areas in its 2025 application plan for hydrogen energy, focusing on fuel cell systems, hydrogen compressors, and ammonia co-firing technology [17][18] - South Korea has advanced its nuclear fusion power demonstration target to the 2030s, planning to overcome eight core technologies by 2035 [19][20] - The UK Tokamak Energy ST40 device has set new records in plasma current and energy storage, marking significant progress in commercial fusion energy [21] Brain-Computer Interfaces - A new generation of closed-loop brain-computer interface has been developed by the Chinese Academy of Sciences, enabling functional recovery in spinal cord injury models through real-time decoding of brain movement intentions [22] Embodied Intelligence - The establishment of a national standardization committee for humanoid robots and embodied intelligence aims to enhance the quality and application of these technologies [25] - UBTECH plans to acquire a 43% stake in Fenglong Co., enhancing collaboration in humanoid robot manufacturing and supply chain integration [26][29] Sixth Generation Mobile Communication (6G) - The Ministry of Industry and Information Technology emphasizes systematic advancement in 6G technology research and standard development during the 14th Five-Year Plan period [30] - The U.S. has initiated a spectrum strategy for 6G, focusing on reallocating frequency resources to secure a leading position in global 6G development [31][32] - China has established a collaborative system involving government, industry, and research institutions to promote 6G development, positioning itself as a leader in the field [34][36]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The issuance and net financing of local government bonds decreased on a week - on - week basis this period, and are expected to increase next period. The issuance/net financing of local government bonds in this period (2025.12.22 - 2025.12.28) was 20.37 billion yuan/-31.74 billion yuan, compared with 400.37 billion yuan/281.57 billion yuan in the previous period. Next period (2025.12.29 - 2025.12.31), it is expected to be 260.00 billion yuan/174.49 billion yuan [2]. - The issuance of new special bonds has used part of the 500 - billion - yuan carry - over quota. As of December 26, 2025, the cumulative issuance of new general bonds/new special bonds accounted for 96.2% and 103.4% of the annual quota respectively, and is expected to be 96.2% and 103.8% considering the next - period issuance [2]. - The planned issuance scale of local government bonds in the first quarter of 2026 is 168.09 billion yuan. As of December 26, 2025, 26 regions have disclosed the planned issuance scale. The issuance in 26Q1 may be similar to that in 25Q1, with refinancing bonds issued earlier. The proportion of refinancing general bonds is relatively higher than in 2025. The planned issuance scale in January and March 2026 is larger [2]. - There was no issuance of special new special bonds this period, nor of special refinancing bonds for replacing hidden debts and repaying existing debts. As of December 26, 2025, the cumulative issuance of special new special bonds was 136.68 billion yuan; the cumulative issuance of special refinancing bonds for replacing hidden debts reached 200 billion yuan, with the issuance progress at 100%; and the cumulative issuance of special refinancing bonds for repaying existing debts since October 2025 was 28.75 billion yuan [2]. - The spread between local government bonds and treasury bonds narrowed for 10Y and 30Y this period, and the weekly turnover rate decreased on a week - on - week basis. As of December 26, 2025, the spreads for 10 - year and 30 - year local government bonds over treasury bonds were 20.24BP and 15.67BP respectively, narrowing by 2.68BP and 5.81BP compared with December 19, 2025 [2]. - Attention should be paid to the cost - effectiveness of current 3/10/15Y local government bonds. Taking 10 - year local government bonds as an anchor, the top of the spread adjustment since 2018 may be 20 - 25BP above the issuance spread floor, and the bottom may be near the issuance spread floor [2]. 3. Summary According to the Directory 3.1 This Period: Local Government Bond Issuance Declined and the Weighted Issuance Term Shortened - The issuance of local government bonds in this period (2025.12.22 - 2025.12.28) was 20.37 billion yuan, compared with 400.37 billion yuan in the previous period. Next period (2025.12.29 - 2025.12.31), the forecasted issuance is 260.00 billion yuan [2][9]. - The weighted issuance term of local government bonds in this period was 15.14 years, shorter than 16.15 years in the previous period [2][10]. - As of December 26, 2025, the cumulative issuance of new general bonds/new special bonds accounted for 96.2% and 103.4% of the annual quota respectively, and is expected to be 96.2% and 103.8% considering the next - period issuance [2][18]. - There was no issuance of special new special bonds this period, nor of special refinancing bonds for replacing hidden debts and repaying existing debts. As of December 26, 2025, the cumulative issuance of special new special bonds was 136.68 billion yuan; the cumulative issuance of special refinancing bonds for replacing hidden debts reached 200 billion yuan, with the issuance progress at 100%; and the cumulative issuance of special refinancing bonds for repaying existing debts since October 2025 was 28.75 billion yuan [2][20]. - The planned issuance scale of local government bonds in the first quarter of 2026 is 168.09 billion yuan. As of December 26, 2025, 26 regions have disclosed the planned issuance scale. The issuance in 26Q1 may be similar to that in 25Q1, with refinancing bonds issued earlier. The proportion of refinancing general bonds is relatively higher than in 2025. The planned issuance scale in January and March 2026 is larger. The planned issuance scales in January, February, and March 2026 are 69.25 billion yuan, 24.22 billion yuan, and 74.62 billion yuan respectively [2][24]. - The issuance terms of local government bonds in the first quarter of 2026 in Guangxi, Ningbo, and Zhejiang, where term data are disclosed, show signs of shortening compared with the same period last year [2][31]. 3.2 This Period: The Spread between Local Government Bonds and Treasury Bonds Narrowed for 10Y and 30Y, and the Weekly Turnover Rate Decreased on a Week - on - Week Basis - As of December 26, 2025, the spreads for 10 - year and 30 - year local government bonds over treasury bonds were 20.24BP and 15.67BP respectively, narrowing by 2.68BP and 5.81BP compared with December 19, 2025 [2][37]. - The weekly turnover rate of local government bonds in this period was 0.66%, down from 0.77% in the previous period [2][47]. - The yields and liquidity of 7 - 10Y local government bonds in regions such as Yunnan, Guizhou, and Jilin this period are better than the national average [2].

Investment Rating - The report rates the steel industry as "Overweight," indicating a positive outlook for the sector compared to the overall market performance [2]. Core Insights - The report highlights that the Chinese government is committed to controlling crude steel production, which is expected to improve the supply-demand dynamics in the steel industry. The Ministry of Industry and Information Technology has emphasized the need to curb low-quality competition and regulate production capacity [2]. - In the first eleven months of 2025, China's crude steel production was 892 million tons, a decrease of 4.0% year-on-year, while steel product output increased by 4.0% to 1.333 billion tons. This suggests a shift in production focus and an anticipated improvement in the supply side of the market [2]. - The report notes that the commissioning of the Simandou iron ore mine is expected to contribute significantly to iron ore supply, which may lead to a decline in iron ore prices and reduce cost pressures on steel companies [2]. - Demand is expected to show structural differentiation, with resilient demand in the manufacturing sector supporting the profitability of plate and special steel segments, while the construction sector remains weak [2]. - The report suggests that as the steel consumption structure shifts from construction to manufacturing, investors should focus on undervalued, high-dividend stocks in the plate sector, such as Baosteel, Nanjing Steel, and Hualing Steel, as well as high-end stainless steel and special steel companies like Jiuli Special Materials and CITIC Special Steel [2]. Summary by Sections Production Control - The government has announced ongoing measures to control crude steel production and prevent the addition of new capacity, which is expected to optimize the supply side of the steel market [2]. Raw Material Supply - The Simandou iron ore mine has commenced production, with an expected annual capacity of 12 million tons, contributing to a more favorable pricing environment for iron ore [2]. Demand Dynamics - The report anticipates a divergence in demand, with manufacturing-related sectors showing resilience, while construction demand remains weak [2]. Investment Recommendations - The report recommends focusing on low-valuation, high-dividend stocks in the manufacturing-oriented steel sector and highlights the importance of special steel in emerging sectors like energy and defense [2].

Investment Rating - The report recommends a "left-side investment opportunity" in the pig farming sector, indicating a positive outlook despite current challenges [5][6]. Core Insights - The agricultural sector index increased by 0.3%, while the Shanghai and Shenzhen 300 index rose by 1.9%. Notable stock performances included Shen Nong Technology (up 35.7%) and Guotou Zhonglu (up 20.8%) [5][6]. - The pig price rebounded significantly due to the re-entry of the second batch of fattening pigs and increased retail demand as the year-end approaches. However, the report suggests that this price increase may not be sustainable in the coming quarters [5][6]. - The pet sector is experiencing a valuation shift as the year-end approaches, with a focus on companies like Muyuan Foods, Wens Foodstuff, and others [5][6]. Summary by Sections Pig Farming - The average selling price of the national external three yuan pigs was 12.21 yuan/kg, with a week-on-week increase of 7.0%. The price surge is attributed to the re-entry of fattening pigs and a decrease in supply [5][6]. - The report indicates that the industry remains below the breakeven line, with losses reported for small-scale and medium-scale operations. The outlook for the next 1-2 quarters suggests a bottoming out of prices, with ongoing capacity reduction [5][6]. Pet Industry - The seventh Pet New National Goods Conference was held, revealing that the Chinese pet market is expected to reach a size of 154.5 to 160 billion yuan in 2025. The market is characterized by channel differentiation and a focus on specific product categories [5][6]. - Ruipai Pet Hospital submitted an application for an IPO, aiming to become the first publicly listed pet hospital in China [5][6]. Meat Chicken Farming - The average selling price of white feather broiler chicks was 3.37 yuan/chick, with a slight decrease of 0.6% week-on-week. The price of white feather broiler meat reached a new high of 3.80 yuan/kg, reflecting a week-on-week increase of 4.7% [5][6]. Beef Industry - The prices of beef and cattle have slightly decreased, with the average price of fattened bulls at 25.47 yuan/kg, down 0.24% week-on-week [5][6].