Investment Rating - The report assigns an "Overweight" rating for the smart glasses industry [4]. Core Insights - The CES 2026 event highlighted the integration of AI with hardware, indicating a shift towards "Physical AI" [2][5]. - The smart glasses sector is experiencing rapid growth, with global shipments increasing by 110% year-on-year in the first half of 2025 [17]. - The inclusion of smart glasses in national subsidy policies is expected to drive further growth [21]. Summary by Sections Industry Overview - The CES 2026 showcased approximately 4,300 exhibitors from over 160 countries, with 942 Chinese exhibitors, representing 22% of total participants [5]. - Major Chinese brands like Thunderbird Innovation and Rokid are making significant advancements in smart glasses technology [5][6]. Product Developments - Thunderbird Innovation launched the X3 Pro Project eSIM, enabling independent communication capabilities [5]. - Rokid introduced the Rokid Style, weighing only 38.5g, featuring an open AI ecosystem [6]. - ByteDance's "Doubao" AI glasses are set to enter the market, with various configurations planned for release [9]. Market Trends - The trend towards lightweight designs is evident, with many products now weighing between 30-50g [15]. - AI glasses are evolving into independent smart devices capable of complex functions like communication and AI processing [15]. - The market is seeing a shift from basic audio glasses to more advanced AI-integrated models, with AI glasses' shipment share rising from 46% to 78% [17]. Investment Recommendations - The report recommends investing in companies such as Kangnait Optical, Doctor Glasses, and Aishide, with Tianyin Holdings also mentioned as a relevant target [21][24].

Macroeconomic Insights - The US unemployment rate fell to 4.4% in December, down from a revised 4.5% in November, indicating a temporary halt in concerns over job market deterioration[11] - The US manufacturing PMI declined while the services PMI increased, reflecting mixed economic signals[7] - Consumer confidence in the US continued to recover in January, with inflation expectations slightly rising[7] Market Trends - Risk assets generally rose in the week of January 2-9, 2026, with major economies' stock markets and commodity prices increasing[7] - The 10-year US Treasury yield rose by 5.7%, while domestic 10Y government bond futures prices fell by 0.1%[7] - The dollar index increased by 0.7%, with the USD/CNY exchange rate at 6.98, indicating a slight appreciation of the yuan[7] Sector Performance - The AI application sector is expected to see significant growth, with a projected compound annual growth rate (CAGR) of over 35% for the AI industry and over 63% for the large model market[23] - The consumer electronics sector, particularly smart glasses, is experiencing rapid growth, with a projected 110% year-on-year increase in global shipments in the first half of 2025[38] Investment Recommendations - It is advised to overweight A/H shares due to multiple factors supporting Chinese equity performance, including an expected expansion of the fiscal deficit and a more aggressive economic policy[18] - Gold is recommended for overweight allocation due to its strong resilience and safe-haven attributes amid rising geopolitical uncertainties[20] - The report suggests a cautious approach to oil investments, recommending a lower allocation due to expected price pressures from geopolitical events and US policy directions[20]

Investment Rating - The report assigns an "Accumulate" rating for the industry, indicating a potential upside of over 15% relative to the CSI 300 index [2][25]. Core Insights - The report highlights that the significant asset swap involving Jiaoyun Co. is expected to transform the company from a regional automotive service provider into a leading comprehensive cultural and tourism operator in Shanghai, significantly enhancing its long-term value [3]. - The cultural and tourism industry is entering a phase of comprehensive recovery, with asset securitization empowering industry development. The current phase is characterized by ongoing policy benefits, upgraded consumer demand, innovative business models, and intensified market differentiation [5]. Summary by Sections 1. Divesting Traditional Cyclical Business to Enter High-Growth Consumer Services - The automotive business faces multiple challenges, with intensified competition leading to pressure on profit margins. The Chinese passenger car market has entered a dual cycle of "stock competition + structural transformation," resulting in a significant decline in profitability [8][9]. - The integration of high-quality cultural and tourism resources in Shanghai is expected to enhance profitability. The cultural tourism sector is a core area of consumer upgrade, with substantial growth potential driven by strong demand and supportive policies [11][14]. - The asset swap aligns with state-owned enterprise reform requirements, enhancing the quality of the listed company by divesting non-core automotive businesses and acquiring quality cultural and tourism assets [15]. 2. Transitioning from Traditional Manufacturing to Consumer Services - The transaction involves a significant asset swap between Jiaoyun Co. and its controlling shareholder, Jiushi Group, focusing on divesting traditional automotive-related businesses and acquiring quality cultural and tourism assets [16]. - The swap is expected to significantly enhance the company's profitability and core competitive advantages, creating long-term value for shareholders [18]. - The transaction will not involve a change in the actual controlling shareholder, as the asset swap and cash compensation will be determined through mutual agreement based on an asset evaluation report [19].

- The report discusses the "Liquidity Shock Indicator" for the CSI 300 Index, which measures market liquidity. The indicator was 0.60 on Friday, higher than the previous week's 0.34, indicating that current market liquidity is 0.60 standard deviations above the average of the past year [2][8] - The "PUT-CALL Ratio" for SSE 50ETF options is analyzed, showing a decline to 0.64 on Friday from 0.88 the previous week, reflecting increased short-term optimism among investors regarding the SSE 50ETF [2][8] - The "Turnover Rate" for the SSE Composite Index and Wind All A Index is highlighted, with 5-day average turnover rates of 1.41% and 2.24%, respectively, corresponding to the 79.01% and 87.08% percentiles since 2005, indicating increased trading activity [2][8] - The "Moving Average Strength Index" is introduced as a technical indicator, with the current market score at 261, placing it in the 95.22% percentile since 2023, suggesting strong market momentum [14][19] - The "Sentiment Timing Model" is discussed, which incorporates factors such as net limit-up ratio, next-day return after limit-down, and high-frequency board trading returns. The sentiment model score is 4 out of 5, with both the trend and weighted models showing positive signals [14][17] - The "Factor Crowding Index" is analyzed for various factors, including small-cap, low-valuation, high-profitability, and high-growth factors. The composite crowding scores are 0.37, -0.57, 0.63, and 1.09, respectively, with high-growth factors showing the highest crowding level [18][20][21] - The report evaluates "Industry Crowding Levels," identifying sectors such as communication, comprehensive, non-ferrous metals, defense, and electronics as having relatively high crowding levels. Defense and comprehensive sectors show the largest increases in crowding compared to the previous month [23][25][26]

Group 1 - The core view of the report suggests that the resilience of credit bonds observed at the beginning of the year may continue, with a recommendation to focus on riding opportunities in the 3Y-1Y segment [1] - The net financing for major credit bond varieties turned positive last week, with a total issuance of 2507.8 billion and a net financing of 1280.8 billion, reversing from a negative net financing of -636.4 billion in the previous week [5][6] - The issuance of short-term financing bonds, medium-term notes, and corporate bonds increased compared to the previous week, indicating a growing market activity [5][6] Group 2 - Secondary market transactions saw a significant increase, with total transactions reaching 7959 billion, up from 2964 billion in the previous week, indicating a warming market [8][9] - The yield on medium-term notes showed mixed movements, with the 3-year AAA medium-term note yield rising by 0.03 basis points to 1.89%, while the 3-year AA+ medium-term note yield fell by 0.97 basis points to 1.98% [8][9] - The credit rating adjustments showed no changes in issuer ratings, and there were no reported defaults during the week [5][6]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 27.71 CNY, compared to the current price of 22.31 CNY [6][13]. Core Insights - The report highlights that the limited scale of the H-share refinancing will have a minor impact on short-term shareholder returns, but it is expected to create a new growth driver for the company's international business in the long term, thereby expanding its development space [2][13]. - The company plans to raise approximately 61 billion HKD through H-share placement and convertible bonds, which will be fully allocated to increase capital for its overseas subsidiaries [13]. - The report adjusts the company's net profit forecasts for 2025-2027 to 14.201 billion, 15.568 billion, and 16.567 billion CNY respectively, reflecting a positive outlook on capital market recovery [13]. Financial Summary - Revenue projections for the company are as follows: - 2023A: 23.3 billion CNY - 2024A: 27.199 billion CNY (up 16.7%) - 2025E: 35.911 billion CNY (up 32.0%) - 2026E: 38.682 billion CNY (up 7.7%) - 2027E: 40.430 billion CNY (up 4.5%) [4][14] - Net profit (attributable to shareholders) is projected as: - 2023A: 6.978 billion CNY - 2024A: 9.637 billion CNY (up 38.1%) - 2025E: 14.201 billion CNY (up 47.4%) - 2026E: 15.568 billion CNY (up 9.6%) - 2027E: 16.567 billion CNY (up 6.4%) [4][14]. - The earnings per share (EPS) is expected to grow from 0.92 CNY in 2023 to 2.17 CNY in 2027 [4][14]. Market Data - The company has a total market capitalization of 169.686 billion CNY and a total share capital of 7.606 million shares, with 5.904 million shares in circulation [7]. - The price-to-earnings (P/E) ratio is projected to decrease from 24.37 in 2023 to 10.26 in 2027, indicating an improving valuation over time [4][14].

Report Industry Investment Rating The document does not provide a specific industry investment rating. Core Viewpoints of the Report - Future investment strategy suggests balanced style allocation, emphasizing technology, non - banking, and consumption sectors. For stock funds, A - share market may have a spring "good start" with policy expectations, liquidity, and fundamentals improving. For bond funds, short - term negative factors are repaired, but mid - term structural optimization is incomplete. Money funds have no trend investment opportunities in the long - term low - interest environment [3][4]. - Last week, the A - share market continued its upward trend and had a good start, with satellite, AI application, and non - ferrous sectors performing well. The bond market declined, the US stock market reached a new high, and oil and gold prices rose due to geopolitical risks. Funds heavily invested in medical, semiconductor, and military sectors performed well [4][6][7]. Summary by Related Catalogs 1. Last Week's Market Review - **A - share Market**: Continued the upward trend and had a good start during 20260105 - 20260111. Satellite, AI application, and non - ferrous sectors were strong. The satellite sector's popularity and IPO benefits drove the military sector; AI company listings on the Hong Kong Stock Exchange boosted the AI application sector; the US military action in Venezuela affected non - ferrous metal supply and pushed up the sector. The Shanghai Composite Index rose 3.82% to 4120.43, and the Shenzhen Component Index rose 4.40% to 14120.15. The trading volume was 14.13 trillion yuan, with a daily average increase of about 1.56 trillion yuan compared to the previous week. Among industries, defense, media, non - ferrous, computer, and medical sectors led the increase [4][6][7]. - **Bond Market**: Declined as the strong A - share market suppressed it. The 1 - year Treasury yield dropped 5BP to 1.29%, and the 10 - year Treasury yield rose 3BP to 1.88%. Credit spreads narrowed. The ChinaBond Aggregate Net Price Index fell 0.24%, while the CSI Convertible Bond Index rose 4.45% [4][8]. - **Overseas Market**: The US stock market reached a new high, with the Dow Jones Industrial Average rising 2.32%, the S&P 500 rising 1.57%, and the Nasdaq rising 1.88%. European and most Asian markets also rose, except for the Hang Seng Index which fell 0.41%. The US dollar index rose 0.69%. Geopolitical risks from the US military action in Venezuela increased oil and gold prices [4][9]. 2. Last Week's Fund Market Review - **Stock Funds**: Rose 4.92%. Some funds heavily invested in medical, semiconductor, and military sectors performed well. Index funds related to satellite, semiconductor, and media themes did well [4][10][11]. - **Bond Funds**: Rose 0.29%. Partial - debt funds and convertible bond funds with semiconductor and computer in their equity allocation performed well. Among pure - debt funds, those mainly investing in high - grade credit bonds and medium - short - term bonds did better [4][10][11]. - **QDII Funds**: Equity QDII funds rose 2.62%, with funds mainly investing in medicine and semiconductor themes performing well. QDII bond funds rose 0.10% [4][10][12]. - **Money Funds**: Had an annualized yield of 1.58%. Different types of摊余成本法债 funds had different yields [11]. - **Gold ETF and Linked Funds**: Rose 2.85%. Commodity funds rose 2.64% [13]. 3. Future Investment Strategy - **Stock Market**: Policy expectations, liquidity, and fundamentals are expected to improve, and the A - share market may have a spring "good start". Industries with good prospects are technology, non - banking, and consumption. It is recommended to have a balanced style allocation and focus on these sectors [4][14][15]. - **Bond Market**: Short - term negative factors are repaired, but mid - term structural optimization is incomplete. It is recommended to focus on interest - rate bonds with flexible durations and products that mainly invest in high - grade and highly liquid credit bonds [4][15]. - **Money Market**: There are no trend investment opportunities in the long - term low - interest environment [4][15]. - **Commodity Market**: It is advisable to appropriately allocate gold ETFs for long - term and hedging investments [15]. 4. Latest Fund Market Developments - **QDII Quota**: Under the background of promoting inclusive finance, QDII quotas should be more used in public - offering products. Fund companies need to adjust the proportion of QDII quotas used in public - offering and private - placement products, reducing the private - placement quota ratio to within 20% by the end of 2027 and completing at least half of the adjustment by the end of 2026 [17]. - **Fund Sales Fee Regulations**: The official version of the regulations relaxes the redemption fee constraints for bond funds and fine - tunes the subscription and purchase fees. Bond ETFs may become important tools for liquidity management and trading by wealth management institutions. Wealth management funds may gradually increase their allocation to equity funds, with broad - based index funds and low - volatility "fixed - income +" products being more popular [18]. - **Newly Issued Funds**: 11 new funds were established last week, including 3 low - position ordinary FOF funds, 2 strong - equity hybrid funds, 2 stock ETFs, etc. The average subscription days were about 12 days, and the average raised share was 7.45 billion, with a total of 81.91 billion shares [19]. - **Upcoming Fund Dividends**: 99 funds will conduct equity registration in the coming week. The most notable is the Chang Sheng Aerospace and Marine Equipment A, with a dividend of 2.764 yuan per 10 shares [20].

Group 1 - The report emphasizes that high-quality projects can be acquired at low prices, while projects with higher operational risks should be considered after the disclosure of operational data [3][7]. - The REITs market has entered a favorable development phase characterized by both supply and demand growth, with a focus on quality operational entities to share in market development benefits [3][7]. - As of January 10, preliminary operational data for the second half of the year shows that the industrial park and warehousing sectors are stabilizing, with no significant decline in occupancy rates under the price-for-volume policy [7]. Group 2 - The report highlights that the China REITs total return index increased by 1.89% to 1028.93 during the week from December 31, 2025, to January 9, 2026, with significant gains in new infrastructure and consumer REITs [5][6]. - The performance of various sectors during the past week showed new infrastructure leading with a 4.41% increase, followed by consumer REITs at 3.17%, and industrial parks at 3.16% [5][6]. - The report notes that the REITs market experienced a positive start to the year, contrasting with the poor performance of the bond market, indicating a recovery in previously depressed sectors [6][7].

Investment Rating - The report rates the mechanical industry as "Overweight" [5] Core Insights - The mechanical equipment index increased by 5.98% during the week of January 5 to January 9, 2026, outperforming the CSI 300 index, which rose by 2.79% [8] - China has submitted applications for 203,000 new satellites covering 14 satellite constellations, indicating a significant expansion in the commercial space sector [5] - The CES 2026 showcased advancements in humanoid robots, with companies like Upward and Boston Dynamics unveiling new models, highlighting the industry's shift towards diversification and automation [5] Summary by Sections Weekly Market Summary - The mechanical equipment sector's performance was ranked 10th among 31 first-level industries, with a weekly increase of 5.98% [8] - The mechanical industry index has risen by 53.09% since the beginning of 2025, compared to a 24.57% increase in the CSI 300 index [10] Key Macro Data - The manufacturing PMI for December 2025 was reported at 50.1%, indicating stable growth in the sector [15] - The production index and order index for December 2025 were 50.8% and 51.7%, respectively, suggesting positive trends in manufacturing activity [21] Sub-industry Data Summary Engineering Machinery Industry - Excavator sales in December 2025 reached 23,095 units, a year-on-year increase of 19.2% [36] Machine Tool and Industrial Robot Industry - Industrial robot production in November 2025 was 70,188 units, reflecting a year-on-year growth of 20.6% [41] Rail Transit Industry - The cumulative production of EMUs from January to November 2025 was 1,722 units, with November production showing a year-on-year increase of 24.1% [45] Oilfield Equipment Industry - The global active drilling rig count was 1,813 units as of November 2025, with Brent crude oil averaging $63.34 per barrel on January 9, 2026 [53] Semiconductor Equipment Industry - Semiconductor sales in November 2025 reached $75.28 billion, with a month-on-month increase of 3.53% [76] Key Company Earnings Forecast - The report recommends several companies for investment, including: - Humanoid Robots: Hengli Hydraulic, Changying Precision, and others [5] - Chip Equipment: Keri Technology [5] - Commercial Aerospace: Plit [5] - AI Infrastructure: Ice Wheel Environment, Hanzhong Precision, and others [5] - Engineering Machinery: Sany Heavy Industry, XCMG, and others [5] - Export Chain: Honghua Digital Science, Juxing Technology, and others [5]

- The "Buy Intention Factor" showed strong performance at the beginning of the year, with intraday high-frequency skewness factor, intraday downside volatility proportion factor, post-opening buy intention proportion factor, post-opening buy intention strength factor, post-opening large order net buy proportion factor, post-opening large order net buy strength factor, intraday return factor, end-of-day trading proportion factor, average single outflow amount proportion factor, and large order push-up factor all being evaluated[5][6][9] - The "Multi-Granularity Factor" showed average performance, with GRU(10,2)+NN(10) factor, GRU(50,2)+NN(10) factor, multi-granularity model (5-day label) factor, and multi-granularity model (10-day label) factor being evaluated[5][6][9] - The "AI Enhanced Portfolio" had a poor start to the year, with significant drawdowns observed in the weekly rebalanced CSI 500 AI enhanced wide constraint portfolio, CSI 500 AI enhanced strict constraint portfolio, CSI 1000 AI enhanced wide constraint portfolio, and CSI 1000 AI enhanced strict constraint portfolio[5][6][9] Quantitative Factors and Construction Methods 1. **Factor Name: Intraday High-Frequency Skewness Factor** - **Construction Idea**: Measures the skewness of intraday returns to capture the asymmetry in return distribution[5][6] - **Construction Process**: Calculated using high-frequency data to determine the skewness of returns within a trading day[5][6] - **Evaluation**: Demonstrated strong performance at the beginning of the year[5][6] 2. **Factor Name: Intraday Downside Volatility Proportion Factor** - **Construction Idea**: Measures the proportion of downside volatility in intraday returns[5][6] - **Construction Process**: Calculated using high-frequency data to determine the proportion of downside volatility within a trading day[5][6] - **Evaluation**: Showed moderate performance[5][6] 3. **Factor Name: Post-Opening Buy Intention Proportion Factor** - **Construction Idea**: Measures the proportion of buy intentions after market opening[5][6] - **Construction Process**: Calculated using high-frequency data to determine the proportion of buy intentions after the market opens[5][6] - **Evaluation**: Demonstrated strong performance at the beginning of the year[5][6] 4. **Factor Name: Post-Opening Buy Intention Strength Factor** - **Construction Idea**: Measures the strength of buy intentions after market opening[5][6] - **Construction Process**: Calculated using high-frequency data to determine the strength of buy intentions after the market opens[5][6] - **Evaluation**: Showed moderate performance[5][6] 5. **Factor Name: Post-Opening Large Order Net Buy Proportion Factor** - **Construction Idea**: Measures the proportion of net buy orders of large size after market opening[5][6] - **Construction Process**: Calculated using high-frequency data to determine the proportion of net buy orders of large size after the market opens[5][6] - **Evaluation**: Demonstrated weak performance[5][6] 6. **Factor Name: Post-Opening Large Order Net Buy Strength Factor** - **Construction Idea**: Measures the strength of net buy orders of large size after market opening[5][6] - **Construction Process**: Calculated using high-frequency data to determine the strength of net buy orders of large size after the market opens[5][6] - **Evaluation**: Showed weak performance[5][6] 7. **Factor Name: Intraday Return Factor** - **Construction Idea**: Measures the return within a trading day[5][6] - **Construction Process**: Calculated using high-frequency data to determine the return within a trading day[5][6] - **Evaluation**: Demonstrated strong performance at the beginning of the year[5][6] 8. **Factor Name: End-of-Day Trading Proportion Factor** - **Construction Idea**: Measures the proportion of trading activity at the end of the day[5][6] - **Construction Process**: Calculated using high-frequency data to determine the proportion of trading activity at the end of the day[5][6] - **Evaluation**: Showed strong performance[5][6] 9. **Factor Name: Average Single Outflow Amount Proportion Factor** - **Construction Idea**: Measures the proportion of average single outflow amounts[5][6] - **Construction Process**: Calculated using high-frequency data to determine the proportion of average single outflow amounts[5][6] - **Evaluation**: Demonstrated moderate performance[5][6] 10. **Factor Name: Large Order Push-Up Factor** - **Construction Idea**: Measures the impact of large orders on price increases[5][6] - **Construction Process**: Calculated using high-frequency data to determine the impact of large orders on price increases[5][6] - **Evaluation**: Showed moderate performance[5][6] 11. **Factor Name: GRU(10,2)+NN(10) Factor** - **Construction Idea**: Combines GRU and neural network models to capture complex patterns in data[5][6] - **Construction Process**: Utilizes GRU with 10 units and 2 layers, followed by a neural network with 10 units[5][6] - **Evaluation**: Demonstrated average performance[5][6] 12. **Factor Name: GRU(50,2)+NN(10) Factor** - **Construction Idea**: Combines GRU and neural network models to capture complex patterns in data[5][6] - **Construction Process**: Utilizes GRU with 50 units and 2 layers, followed by a neural network with 10 units[5][6] - **Evaluation**: Showed weak performance[5][6] 13. **Factor Name: Multi-Granularity Model (5-Day Label) Factor** - **Construction Idea**: Uses multi-granularity approach to capture patterns over different time frames[5][6] - **Construction Process**: Trained using a 5-day label to capture short-term patterns[5][6] - **Evaluation**: Demonstrated average performance[5][6] 14. **Factor Name: Multi-Granularity Model (10-Day Label) Factor** - **Construction Idea**: Uses multi-granularity approach to capture patterns over different time frames[5][6] - **Construction Process**: Trained using a 10-day label to capture longer-term patterns[5][6] - **Evaluation**: Showed weak performance[5][6] Factor Backtest Results 1. **Intraday High-Frequency Skewness Factor**: IC -0.007, e^(-rank mae) 0.312, long-short return 0.29%, long-only excess return 0.99%, monthly win rate 1/1[9][10] 2. **Intraday Downside Volatility Proportion Factor**: IC -0.001, e^(-rank mae) 0.313, long-short return 0.22%, long-only excess return 0.95%, monthly win rate 1/1[9][10] 3. **Post-Opening Buy Intention Proportion Factor**: IC 0.032, e^(-rank mae) 0.324, long-short return 1.04%, long-only excess return -0.41%, monthly win rate 0/1[9][10] 4. **Post-Opening Buy Intention Strength Factor**: IC 0.027, e^(-rank mae) 0.323, long-short return 0.65%, long-only excess return 0.62%, monthly win rate 1/1[9][10] 5. **Post-Opening Large Order Net Buy Proportion Factor**: IC -0.006, e^(-rank mae) 0.306, long-short return -0.52%, long-only excess return -0.53%, monthly win rate 0/1[9][10] 6. **Post-Opening Large Order Net Buy Strength Factor**: IC 0.004, e^(-rank mae) 0.308, long-short return -0.07%, long-only excess return -0.66%, monthly win rate 0/1[9][10] 7. **Intraday Return Factor**: IC 0.037, e^(-rank mae) 0.328, long-short return 1.77%, long-only excess return 1.89%, monthly win rate 1/1[9][10] 8. **End-of-Day Trading Proportion Factor**: IC 0.084, e^(-rank mae) 0.334, long-short return 2.67%, long-only excess return 1.35%, monthly win rate 1/1[9][10] 9. **Average Single Outflow Amount Proportion Factor**: IC 0.013, e^(-rank mae) 0.319, long-short return 0.45%, long-only excess return 0.14%, monthly win rate 1/1[9][10] 10. **Large Order Push-Up Factor**: IC -0.007, e^(-rank mae) 0.327, long-short return 0.22%, long-only excess return 0.43%, monthly win rate 1/1[9][10] 11. **GRU(10,2