Report Industry Investment Rating No relevant information provided. Core View of the Report - The REITs index declined unilaterally this week, with a 2.85% drop, and sectors such as transportation and affordable housing led the decline. The newly - listed Anbo Warehouse REIT broke its issue price on the first day, while the Huaxia Zhonghe Hydropower REIT was highly sought after, with an effective subscription multiple of 340.5 times, attracting over 100 billion yuan in funds. There are also signs of expansion on the asset side, and the policy environment continues to be favorable [3]. - As of December 19, 2025, 19 new REITs have been successfully issued this year, with a total issuance scale of 38.8 billion yuan, a 40.0% year - on - year decrease. This week, 3 new issuance and 1 expansion of public REITs made progress [3]. Summary by Directory 1. Primary Market - This week, 3 new issuance public REITs made progress: Huaxia Anbo Warehouse REIT was listed, with a 10.16% drop on the first day; Huaxia Zhonghe Clean Energy REIT has been priced at 5.015 yuan per share, with an effective subscription multiple of 340.5 times, and will be officially issued on December 22; E Fund Guangxi Beitou Expressway REIT has been queried. One expansion public REIT, Huaxia Fund CR Land Youchao REIT, has its expansion shares listed [3][12][13]. 2. Secondary Market 2.1 Market Review - The CSI REITs Total Return Index closed at 999.19 points this week, with a 2.85% decline, underperforming the CSI 300 by 2.57 percentage points and the CSI Dividend by 3.89 percentage points. Year - to - date, the index has a 3.24% increase, underperforming the CSI 300 by 12.86 percentage points but outperforming the CSI Dividend by 4.99 percentage points. By project attribute, equity - based REITs fell 2.23% and concession - based REITs fell 4.30%. By asset type, sectors such as warehousing and logistics, parks, data centers, and consumption performed better [3]. 2.2 Liquidity - The average daily turnover rates of equity - based and concession - based REITs this week were 0.37% and 0.42% respectively, with a change of - 0.15BP and + 4.98BP compared to last week. The trading volumes were 365 million and 140 million shares respectively, with a week - on - week increase of 0.42% and 13.47%. The data center sector had the highest activity, and the environmental protection and water services sector saw a significant increase in liquidity [24]. 2.3 Valuation - The affordable housing sector has a relatively high valuation. From the perspective of ChinaBond valuation yields, the yields of equity - based and concession - based REITs are 4.18% and 5.26% respectively [25][27]. 3. This Week's News and Important Announcements 3.1 This Week's News - The China Securities Regulatory Commission emphasized promoting the high - quality development of the private equity fund industry, accelerating the pilot of commercial real estate REITs, and researching the launch of new key futures varieties. - Jinjiang International's subsidiary launched a tender for the fund manager, special plan manager, and financial advisor of a public REITs project. - The National Development and Reform Commission proposed to continue to expand the scope of infrastructure REITs and support more private investment projects to be listed [31]. 3.2 Important Announcements - Multiple REITs announced dividend plans, and some REITs had strategic placement shares lifted from restrictions. In addition, some REITs released their operation data, showing an increase in traffic volume and toll revenue [32][33].

Group 1 - The report highlights a dovish interest rate hike by the Bank of Japan and a non-hawkish rate cut by the Federal Reserve, indicating that the next Fed chair must be "super dovish" [3] - December is a critical verification period for global monetary policy, expected to conclude smoothly, with the U.S. midterm election year leading to a renewed focus on monetary and fiscal easing as key drivers of asset pricing [3][4] - The overseas environment for A-shares is likely to stabilize, with potential fiscal stimulus expected to gain traction after resolving the U.S. government shutdown issue, projected for February 2026 [3][4] Group 2 - Spring liquidity in the stock market remains ample, with high-net-worth investors reallocating to private equity following a market pullback, and significant net subscriptions observed in the CSI 300 and A500 ETFs [4][6] - The report identifies multiple windows for stabilizing capital market expectations from February to April, including the Spring Festival, the Two Sessions in March, and a potential visit from Trump in April [4][6] - The spring market is expected to experience upward resistance, with the main asset lines facing limitations, while the focus may shift to non-main battlefield themes such as industrial and policy themes, high-dividend plays, and various rebound opportunities [4][7] Group 3 - The mid-term outlook remains a "two-stage bull market" scenario, with the 2025 bull market 1.0 (technology structural bull) currently at a high level and in a phase of high-level oscillation, while a second bull market phase is anticipated in the second half of 2026 [7] - The report suggests that the first half of 2026 will favor cyclical and value styles, with technology and advanced manufacturing potentially leading the market recovery [7] - Spring market dynamics are expected to be driven by active policy and industrial themes, with a focus on sectors such as commercial aerospace, nuclear fusion, service consumption, and robotics [7]

Key Points Summary Core Viewpoints - The global monetary policy is entering a critical verification period in December, with expectations for a smooth conclusion. The U.S. midterm election year is likely to see a return of both monetary and fiscal easing as dominant factors in asset pricing, potentially stabilizing the overseas environment for A-shares [4][5][9]. - Spring liquidity in the stock market remains ample, with high-net-worth investors reallocating to private equity and significant net subscriptions for the CSI 300 and A500 ETFs. Key windows for stabilizing capital market expectations include the upcoming Chinese New Year, the Two Sessions in March, and a potential visit from Trump in April [4][5][9]. - The spring market may face upward resistance, with market styles reverting to pre-October conditions and limited upward space. The focus may shift to non-main battlefield themes such as industrial and policy themes, high-dividend plays, and various rebound opportunities [5][9]. Market Environment - The Bank of Japan's dovish rate hike of 25 basis points aligns with expectations, while the Federal Reserve's non-hawkish stance on rate cuts suggests a stable capital market environment ahead. The U.S. midterm elections may lead to renewed monetary and fiscal easing, impacting asset pricing [4][5]. - The spring market is characterized by ample liquidity, with private equity fund management scales increasing significantly in October. Insurance products are expected to perform well, and there is a notable increase in net subscriptions for major ETFs [4][5][9]. Investment Strategy - The medium-term outlook remains a "two-stage bull market" scenario, with the first stage (2025) already at a high level and currently in a phase of high-level fluctuations. The second stage (2026) is anticipated to be driven by fundamental improvements, technological trends, and increased asset allocation towards equities [9]. - The spring market is expected to see active themes in commercial aerospace, nuclear fusion, service consumption, and robotics, with high-dividend assets showing strong short-term value. The focus for cyclical investments will likely remain on industrial metals and basic chemicals [9].

Report Title - "2025 December 20th: Subscription Multiple of CNNC Hydropower REIT Hits New High - Weekly Tracking of Publicly Offered REITs (2025.12.15 - 2025.12.19)" [1] Report Industry Investment Rating - Not provided in the content. Core Viewpoints - This week, the REITs index fell unilaterally, with transportation and affordable housing leading the decline. Newly - listed products were under pressure, but CNNC Hydropower REIT was highly sought after by funds. The asset side showed signs of expansion, and the policy side continued to support the REITs market [3]. - As of December 19, 2025, 19 REITs were successfully issued this year, with a total issuance scale of 38.8 billion yuan, a 40.0% year - on - year decrease [3]. Summary by Directory 1. Primary Market: Three First - time Issued Publicly Offered REITs Made New Progress - This year, 19 REITs were successfully issued (6 in Q1 2025, 4 in Q2 2025, 6 in Q3 2025, 2 in October, and 1 in November), with a scale of 38.8 billion yuan, down 40.0% year - on - year [3]. - This week, three first - time issued REITs made new progress: Huaxia Anbo Warehouse REIT was listed with a 10.16% drop on the first day; Huaxia CNNC Clean Energy REIT was priced at 5.015 yuan per share after inquiry, with an effective subscription multiple of 340.5 times, and will be officially issued on December 22; E Fund Guangxi Beitou Expressway REIT was under inquiry [3][13]. - One REIT for expansion made new progress: The expanded shares of Huaxia Fund CR Land Youchao REIT were listed, with the ex - right effective date on December 16 [3][14]. 2. Secondary Market: The Index Fell This Week 2.1 Market Review: The CSI REITs Total Return Index Fell 2.85% - This week, the CSI REITs Total Return Index (932047.CSI) closed at 999.19 points, down 2.85%, underperforming the CSI 300 by 2.57 percentage points and the CSI Dividend by 3.89 percentage points. The year - to - date increase of the CSI REITs Total Return Index was 3.24%, underperforming the CSI 300 by 12.86 percentage points and outperforming the CSI Dividend by 4.99 percentage points [3]. - By property type, equity REITs fell 2.23% and concession - based REITs fell 4.30%. By asset type, the warehouse logistics, park, data center, and consumption sectors performed better [3]. 2.2 Liquidity: The Liquidity of the Environmental Protection and Water Services Sector Increased Significantly - The average daily turnover rates of equity/concession - based REITs this week were 0.37%/0.42%, down 0.15BP/up 4.98BP compared with last week. The trading volumes during the week were 365 million/140 million shares, up 0.42%/13.47% week - on - week. The data center sector was the most active [3][26]. 2.3 Valuation: The Affordable Housing Sector Had a Higher Valuation - According to ChinaBond valuation yields, the yields of equity/concession - based REITs were 4.18%/5.26%, with the transportation, warehouse logistics, and park sectors ranking top three [3]. 3. This Week's Important News and Announcements 3.1 This Week's News - On December 15, 2025, the CSRC emphasized promoting the high - quality development of the private equity fund industry, implementing the pilot of commercial real estate REITs as soon as possible, and researching and launching new key futures varieties [34]. - Also on December 15, Shanghai Jinjiang Asset Management Co., Ltd. launched the tender for the public REITs project, which may indicate the upcoming first hotel REIT [34]. - On the same day, Huatai Baowan Logistics REIT announced an expansion plan, planning to purchase four new infrastructure projects [34]. - On December 16, the National Development and Reform Commission proposed to play the role of new policy - based financial instruments, infrastructure REITs, and inclusive loans to stimulate investment vitality [34]. - On December 18, the National Development and Reform Commission proposed to continuously expand the scope of infrastructure REITs during the 15th Five - Year Plan period and support more private investment projects to be listed [34]. 3.2 Important Announcements - Multiple REITs announced dividend plans this week, including Zheshang Hu杭Yong REIT, Huatai Baowan Logistics REIT, etc. [35][36] - Some REITs announced the lifting of the ban on strategic placement shares, including China Merchants Science and Technology Innovation REIT, Huaxia Beijing Affordable Housing REIT, etc. [36] - Some REITs announced their operation data for November 2025, including Huatai Jiangsu Expressway REIT, Huaxia China Communications Construction Expressway REIT, etc. [36]

Investment Rating - The investment rating for the company is "actively participate" in the new stock issuance [28] Core Insights - The company is a national "small giant" in the field of passive optical devices, with its products widely used in data centers and telecommunications. The company is expected to accelerate its expansion driven by the demand from AI data centers [28] - The company has developed a series of CPO passive internal connection devices, which have achieved mass shipments for 400G and 800G optical modules, with 1.6T products also having achieved limited shipments [28] - The company has a low initial valuation for its IPO, indicating high elasticity for potential investors [28] Summary by Sections 1. Passive Optical Device "Small Giant" - The company, established in September 2011 and located in Shenzhen, specializes in the R&D, manufacturing, and sales of passive optical devices. It is recognized as a "small giant" by the national government and operates in three main business segments: passive optical fiber cabling, passive internal connection devices, and related supporting businesses [4][8] 2. Issuance Plan - The new stock issuance will adopt a direct pricing method, with an issuance price of 31.59 yuan per share. The initial issuance scale is 10.25 million shares, accounting for 15.06% of the total share capital post-issuance. The expected fundraising amount is 324 million yuan, with a total market value of 2.15 billion yuan post-issuance [13][14] 3. Industry Situation - The optical device industry is experiencing rapid technological iteration, driven by the explosion of AI computing power, which demands higher density, integration, speed, and lower power consumption. The AI application market for optical modules is projected to grow significantly, with a year-on-year growth rate of 146.48% [17][19] - The global data center market is also expanding, with the market size expected to grow from 56.7 billion USD in 2019 to 96.8 billion USD by 2025, reflecting a compound annual growth rate of 9.32% [18] 4. Competitive Advantages - The company has established a strong R&D capability, focusing on high precision, high reliability, and high consistency in its products. It has built long-term stable partnerships with major clients such as AT&T, Verizon, Google, and Amazon [21][22] - The company maintains a diverse product line that meets various customer needs across different segments, providing comprehensive solutions for data centers and telecommunications [22] 5. Comparable Companies - The company is compared with other firms in the industry, showing a revenue structure where passive optical fiber cabling products account for 70.34% of total revenue, and the company has a gross margin of 26.74% for 2024 [27][29]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company has completed the issuance of convertible bonds, raising a total of 828 million yuan, with 688 million yuan allocated to the "Dingjie Intelligent Ecosystem Empowerment Platform Project" and 140 million yuan for working capital [4] - The project aims to establish an ecosystem empowerment platform, focusing on various technological components to enhance AI commercialization [6] - The projected average annual revenue from the platform is approximately 701 million yuan, with an internal rate of return of 12.57% and a payback period of about 8.64 years [6] - The company has integrated AI applications into multiple product systems, enhancing its offerings in key business areas [6] - The manufacturing sector's AI agents are expected to see rapid growth due to high customer willingness to pay and a rich customer resource base [6] - The company forecasts revenues of 2.625 billion yuan, 3.044 billion yuan, and 3.606 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 209 million yuan, 252 million yuan, and 312 million yuan for the same years [5][6] Financial Data and Profit Forecast - Total revenue for 2025 is estimated at 2,625 million yuan, with a year-on-year growth rate of 12.6% [5] - The projected net profit for 2025 is 209 million yuan, reflecting a year-on-year growth of 34.4% [5] - The company expects a gross margin of 60.1% in 2025, increasing to 62.5% by 2027 [5] - The return on equity (ROE) is projected to be 8.7% in 2025, rising to 10.9% by 2027 [5]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][9]. Core Insights - The company, originating from Denmark, has pioneered and leads the egg processing industry in China, with a strong market position and growth potential [8][21]. - The domestic egg processing ratio is low, currently at 5%-7%, compared to 50% in Japan, 33% in the USA, and 25% in the EU, indicating significant room for market expansion [8][40]. - The company has established a robust quality control system and customer relationships, which are expected to create competitive barriers and drive industry growth [8][12]. Financial Data and Profitability Forecast - Total revenue projections for the company are as follows: - 2024: 906 million CNY - 2025: 914 million CNY - 2026: 1,084 million CNY - 2027: 1,236 million CNY - The expected growth rates are -6.8% for 2024, 0.8% for 2025, 18.6% for 2026, and 14.1% for 2027 [7]. - Net profit forecasts are: - 2025: 94 million CNY - 2026: 112 million CNY - 2027: 130 million CNY - The company’s gross margin is projected to be around 23.8% in 2025, with a return on equity (ROE) of 15.1% [7][9]. Business Overview - The company has four main product lines: liquid eggs, egg powder, prepared egg products, and beverages, with liquid eggs and egg powder accounting for over 90% of revenue [29][30]. - The prepared egg products segment is experiencing rapid growth, while the beverage segment is still in the cultivation phase [29][30]. Market Demand and Growth Drivers - The baking market in China is expected to grow at a CAGR of 7.4% from 2023 to 2029, driven by diverse consumption scenarios [57]. - The restaurant sector is seeing a shift towards more affordable and nutritious ingredients, with eggs being a key component [8][57]. - The C-end market is expanding, particularly among younger consumers who are increasingly health-conscious [8][57]. Competitive Advantages - The company has a high-level, standardized quality control system that covers the entire production process, ensuring food safety [8][12]. - It has accumulated significant customer resources, which are being converted into competitive barriers [8][12]. Investment Analysis - The company is projected to achieve net profits of 0.94 billion CNY in 2025, 1.12 billion CNY in 2026, and 1.30 billion CNY in 2027, with corresponding price-to-earnings (PE) ratios of 24, 20, and 17 [9]. - The target market capitalization is set at 3.2 billion CNY, indicating a potential upside of 45% from the current closing price [9].

Investment Rating - The report indicates that the unmanned cargo industry is entering a high-growth phase, driven by the dual forces of technological maturity and policy support [3][4]. Core Insights - The unmanned cargo sector benefits from inherent advantages such as predictable paths and controllable environments, which lower the barriers to the implementation of unmanned driving technology compared to manned scenarios [3][5]. - The report emphasizes the importance of focusing on companies that establish technological moats and possess scalable operational experience within specific segments of the unmanned cargo market [3][4]. Summary by Sections 1. Unmanned Cargo: Diverse Application Scenarios, Driven by Technology and Policy - Unmanned driving scenarios can be categorized into manned and unmanned, with unmanned scenarios covering various fields such as logistics and special operations [9]. - The complexity of unmanned cargo scenarios is generally lower than that of manned scenarios, providing a natural advantage for technology implementation [11]. 2. Low-Speed Unmanned Vehicles: High Technological Maturity and Rapid Expansion - Low-speed unmanned vehicles, particularly in logistics and sanitation, have reached a high level of technological maturity and are transitioning from pilot projects to large-scale deliveries [4][5]. - Companies like Jiushi Intelligent and New Stone have achieved deliveries at the scale of thousands of units [4]. 3. High-Speed Unmanned Trucks: Addressing Long-Distance Freight Pain Points - High-speed unmanned trucks are still in the early stages of development but have significant market potential due to their ability to reduce labor costs and improve operational efficiency [4][5]. 4. Special Scenario Unmanned Vehicles: Low Overlap Among Players, Environmental Adaptation Creates Barriers - The special scenario unmanned vehicle market, such as unmanned mining trucks and port vehicles, has a relatively concentrated market structure with high specialization [4][5]. - The demand for unmanned mining trucks is driven by harsh environments and safety pressures, while port scenarios are evolving from early reliance on infrastructure to more flexible solutions [4]. 5. Policy Framework: Accelerating Transition from Pilot to Commercial Operations - The report outlines a comprehensive policy framework that supports the unmanned cargo sector, including national and local government initiatives aimed at facilitating the transition from laboratory validation to real-world commercial operations [21][24]. - Recent policies have focused on establishing demonstration application scenarios and refining testing standards to promote the commercial viability of unmanned cargo solutions [21][24].

Group 1: Higher Education Sector - The higher education sector is expected to see a reversal of difficulties due to a combination of bottoming fundamentals and policy advancements, with a focus on improving educational quality and encouraging the expansion of high-quality private colleges [5][6] - The reintroduction of profit-oriented classification management in Hunan Province in 2025 may serve as a pilot for nationwide implementation, providing a stable policy environment for private colleges to expand and meet the growing demand for higher education [5][6] - Key indicators of educational quality, such as student-to-teacher ratios and per-student funding, have met standards after five years of increased investment, suggesting that the investment cycle is peaking and operational efficiency in higher education companies is likely to recover [5][6] - Companies to watch in this sector include Yuhua Education, Zhongjiao Holdings, New Higher Education, China Kepei, Neusoft Ruixin, Xijiao International Holdings, and Zhonghui Group [5][6] Group 2: Vocational Education Sector - The demand for vocational training is surging, driven by an increasing number of university graduates and high school students entering the labor market, leading to a projected market size of 80 billion yuan in 2025 with a penetration rate of only 5% [6][7] - The youth unemployment rate, particularly among those aged 16 to 24, is higher than the urban average, indicating a growing need for vocational skills training [6][7] - Companies to focus on in the vocational education sector include China Oriental Education and Fenbi [6][7] Group 3: Education Industry Trends - The education industry has undergone significant changes due to the "double reduction" policy, resulting in a 96% reduction in capacity in the academic training sector, with a limited number of operational licenses being redistributed [7] - The shift towards competency-based training is gaining momentum, with institutions leveraging their operational qualifications to expand their market share through non-academic training services [7] - The industry is moving towards a "franchise" model, which is expected to enhance revenue and profit growth for compliant institutions [7] Group 4: Investment Recommendations - The report recommends focusing on Hong Kong-listed vocational education companies, particularly China Oriental Education, which is adapting its operational strategy to cater to the needs of high school graduates [9] - In the higher education sector, the potential reintroduction of profit-oriented options is expected to enhance the revenue-sharing certainty for private colleges, with companies like Yuhua Education, Zhongjiao Holdings, and China Kepei being highlighted for their growth potential [9] - The report also suggests monitoring Chinese education companies listed in the US, such as New Oriental, TAL Education, and others, which are showing strong enrollment data [9]

Group 1: Overview of the Education Industry - The report highlights a potential recovery in the higher education sector, driven by improved quality standards and the reintroduction of profit-oriented licenses, particularly in Hunan province, which may serve as a pilot for national implementation [2][7] - The report anticipates that the operational efficiency of higher education companies will gradually improve as the investment cycle peaks, leading to a dual benefit of profit recovery and valuation enhancement in the sector [2][7] Group 2: Vocational Education Demand - There is a significant increase in demand for vocational training due to the rising number of young people entering the labor market, particularly high school graduates and college dropouts, which is expected to boost the vocational training market to a scale of 80 billion yuan in 2025, with a penetration rate of only 5% [3][8] - Companies such as China Oriental Education and Fenbi are recommended for investment as they adapt their strategies to meet the growing demand for skills training [3][8] Group 3: Training Industry Dynamics - The training industry has undergone a major restructuring, with a 96% reduction in capacity due to regulatory changes, leading to a supply shortage that has not yet improved significantly [4][9] - The report suggests that the industry is transitioning from a fully competitive market to a "franchise" model, which is expected to accelerate capacity expansion and revenue growth for compliant institutions [4][9] Group 4: Investment Recommendations - The report recommends focusing on companies in the higher education sector such as Yuhua Education, Zhongjiao Holdings, and China Kapei, as well as vocational education companies like New Oriental and TAL Education, due to their potential for growth and recovery in profitability [12][27] - Specific investment opportunities are highlighted, including the potential for profit-oriented licenses to enhance returns for private higher education institutions [12][27]