Market Overview - The overall A-share market rose in the fourth week of December 2025, with the North Exchange's trading activity declining, as the average daily trading amount fell below 200 billion yuan to 199.87 billion yuan, a decrease of 11.68% from the previous week[1][8]. - The North Exchange 50 Index increased by 1.19% during the week, which is weaker compared to other major indices[1][14]. Trading Activity - The North Exchange's trading volume accounted for 1.02% of the total market, continuing a downward trend since May 2025, although it remains above the North Exchange's circulating market value ratio[11][12]. - The average turnover rate for the North Exchange was 21.85%, leading among the three exchanges[7][8]. Sector Performance - Most sectors on the North Exchange experienced negative median returns, with the food and beverage sector leading declines at -7.72%, while the media sector had the highest median gain at 2.25%[19]. - The computer industry had the highest median price-to-earnings (P/E) ratio at 145.25 times, indicating high valuation compared to other sectors[19][25]. New Listings and IPOs - There were no new stock offerings on the North Exchange during the week, but one new stock, Jiangtian Technology, was listed, with a first-day average price increase of 209.92%[43][44]. New Third Board Activity - The trading scale of the New Third Board increased, with a total of 5,956 listed companies, and the average trading amount for the innovation layer rose by 42.76% to 19.04 billion yuan, while the basic layer increased by 53.31%[37][40].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of 34.16 CNY [5][11][24]. Core Insights - The company is a leading supplier of radar equipment and systems, benefiting from the advancement of national defense informatization and the growing demand for civil radar and intelligent transportation. The company is expected to achieve steady growth through structural optimization and increased R&D investment [2][11]. - The radar equipment and subsystems are projected to remain the core revenue and profit drivers, with expected revenue growth rates of 14%/13%/15% from 2025 to 2027 [15][39]. - The industrial software and intelligent manufacturing sectors are anticipated to form an important second growth curve, with revenue growth rates of 1%/17%/20% from 2025 to 2027 [15][39]. - The company is increasing its R&D investment, with a projected R&D expense ratio of 6.65% in 2024, which is expected to enhance its long-term competitiveness [11][37]. Financial Summary - Total revenue is projected to grow from 3,282 million CNY in 2023 to 4,982 million CNY in 2027, reflecting a CAGR of approximately 15.7% [4][16]. - Net profit attributable to the parent company is expected to increase from 599 million CNY in 2023 to 956 million CNY in 2027, with a notable growth rate of 21.2% in 2027 [4][16]. - The earnings per share (EPS) is forecasted to rise from 0.48 CNY in 2023 to 0.77 CNY in 2027 [4][16]. Business Segmentation - Radar equipment and subsystems are expected to generate significant revenue, with projected sales of 2,275 million CNY in 2023, increasing to 4,027 million CNY by 2027 [16][39]. - The rail transit control system is projected to experience fluctuations, with revenues expected to reach 353.85 million CNY in 2025, followed by a decline in 2026 [16][39]. - The industrial software and intelligent manufacturing segment is expected to grow from 452.81 million CNY in 2023 to 565.87 million CNY in 2027, reflecting a strong growth trajectory [16][39].

Investment Rating - The investment rating for the company is "Accumulate" with a target price of 8.26 CNY [1][7]. Core Insights - The report highlights that the company is maintaining its leading position in the men's apparel sector while expanding its new business formats, which may take time to reflect in performance. The earnings per share (EPS) forecasts for 2025-2027 are adjusted to 0.46, 0.48, and 0.51 CNY respectively, with a price-to-earnings (PE) ratio of 18 times for 2025, which is above the industry average [7][10]. Financial Summary - Total revenue for 2023 is projected at 21,528 million CNY, with a slight decline to 20,957 million CNY in 2024, followed by a recovery to 21,610 million CNY in 2025, representing a 3.1% increase [8][11]. - Net profit attributable to the parent company is expected to decrease from 2,952 million CNY in 2023 to 2,159 million CNY in 2024, before gradually increasing to 2,470 million CNY by 2027 [8][11]. - The company’s net asset return (ROE) is forecasted to decline from 18.4% in 2023 to 12.7% in 2024, with a gradual recovery to 13.9% by 2027 [8][11]. Market Performance - The current stock price is 6.13 CNY, with a 52-week price range of 6.09 to 8.78 CNY [2]. - The company has a total market capitalization of 29,441 million CNY and a net asset value per share of 3.75 CNY, resulting in a price-to-book (P/B) ratio of 1.6 [3][2]. Business Expansion - The company is actively expanding its partnership with Adidas, aiming to create a "sports+" ecosystem and has opened over 500 Adidas stores, with expectations to exceed 700 by the end of the year [10]. - The overseas revenue is projected to reach 360 million CNY in 2024, marking a 30.8% year-on-year growth, with a compound annual growth rate (CAGR) of 27.3% from 2022 to 2024 [10]. Brand Performance - The main brand's revenue for Q3 2025 is reported at 2.46 billion CNY, showing a 3.0% year-on-year growth, with a gradual improvement in revenue growth rates over the quarters [10]. - The gross margin for the main brand is 45.5%, an increase of 3.1 percentage points year-on-year, attributed to a higher proportion of direct sales [10].

Investment Rating - The report assigns an "Accumulate" rating for the photovoltaic equipment industry [1]. Core Insights - The low Earth orbit (LEO) satellites and space computing are expected to drive long-term demand in the photovoltaic industry, with equipment companies likely to benefit first [2]. - The report highlights that as LEO satellites enter a phase of intensive launches and the commercialization of space computing becomes evident, there will be a significant increase in demand for new photovoltaic technologies [4]. Summary by Sections Investment Recommendations - The report suggests that core equipment manufacturers are expected to benefit from the increasing demand driven by LEO satellites and space computing. Recommended stocks include Maiwei Co., Ltd., Jiejia Weichuang, Jing Shan Light Machine, and Laplace, with Di'er Laser identified as a beneficiary [4]. Market Dynamics - Elon Musk's plan to deploy 100GW of solar AI satellites annually is a key driver for space photovoltaic demand. The ability to harness solar energy in space offers longer generation times and higher stability and availability of energy [4]. - The report notes that the International Telecommunication Union (ITU) has regulations that allow for a maximum of about 60,000 satellites in LEO, with Starlink having applied for 42,000. This rapid expansion of satellite constellations is expected to increase demand for solar wings, battery cells, deployable array structures, and power management systems [4]. Technological Developments - The current main technology for space photovoltaics is gallium arsenide, with multi-junction gallium arsenide cells achieving a production efficiency of 30%. However, the complexity and cost constraints limit its scalability for LEO constellations [4]. - In the short to medium term, silicon-based P-type HJT technology is expected to penetrate low Earth orbit missions due to its lightweight potential and ongoing advancements in radiation resistance [4]. - Long-term prospects for perovskite tandem cells are promising due to their high efficiency and flexible film advantages, provided that breakthroughs in packaging lifespan and large-area consistency are achieved [4]. Industry Collaboration - The commercialization of the space photovoltaic industry is accelerating, with companies actively exploring opportunities in the space economy. For instance, Junda Co. and Shangyi Optoelectronics have signed a strategic cooperation agreement to integrate resources and collaborate on the application of perovskite battery technology in space energy [4].

Investment Rating - The industry investment rating is "Increase Holding" [4][10]. Core Insights - The industry is experiencing a domestic cyclical recovery, with structural improvements in export conditions. As counter-cyclical policies gradually take effect, the industry's prosperity is expected to continue improving [2]. - Domestic sales of excavators are projected to rebound, supported by counter-cyclical fiscal policies and an upward industry cycle. Although exports face some trade friction risks, major machinery manufacturers have limited exposure to the U.S. market, keeping risks manageable. Leading companies are well-positioned overseas and are entering a harvest phase [4]. - In November 2025, a total of 20,027 excavators were sold, representing a year-on-year increase of 13.9%. Domestic sales accounted for 9,842 units, up 9.11% year-on-year, while exports reached 10,185 units, up 18.8% year-on-year. From January to November 2025, total excavator sales were 212,162 units, a 16.7% increase year-on-year [4]. - The average working hours for major construction machinery products in November 2025 were 84.2 hours, a year-on-year decrease of 13%, but a month-on-month increase of 4.08% [4]. Summary by Sections Sales Performance - In November 2025, excavator sales were 20,027 units, with domestic sales at 9,842 units and exports at 10,185 units. Year-to-date sales from January to November reached 212,162 units, with domestic sales of 108,187 units and exports of 103,975 units [4]. - The proportion of domestic sales in November was approximately 49%, while exports accounted for about 51%. For the year-to-date period, domestic sales made up about 51%, and exports were around 49% [4]. Working Hours and Utilization Rates - The average working hours for major machinery in November 2025 were 84.2 hours, with excavators averaging 76.5 hours. The month-on-month improvement indicates a recovery trend despite a year-on-year decline [4]. - The utilization rate for major machinery products was 56.5% in November 2025, down 12.1 percentage points year-on-year but up 1.5 percentage points month-on-month [4]. Company Recommendations - Recommended companies include Sany Heavy Industry, Zoomlion, XCMG, Liugong, and Hengli Hydraulic, all rated as "Increase Holding" [4][5]. - Earnings per share (EPS) forecasts for these companies show a positive trend, with Sany Heavy Industry projected to have an EPS of 1.02 in 2025, while XCMG is expected to reach 0.69 [5].

Investment Rating - The report maintains a "Buy" rating for the equipment manufacturing industry, particularly highlighting investment opportunities in AI-driven sectors and computing infrastructure [2]. Core Insights - The equipment manufacturing industry in China is transitioning into a technology-driven phase, with AI and computing infrastructure being key areas for investment. The report emphasizes the growth potential of AI endpoint products and computing infrastructure investments [2]. - The report identifies three main drivers for the recovery of machinery equipment exports by 2026: the expected interest rate cuts by the Federal Reserve, strong infrastructure demand along the Belt and Road Initiative, and the rising demand for AI computing equipment [3]. Summary by Sections AI-Driven Growth - Investment opportunities are seen in AI endpoints such as humanoid robots, smart manufacturing, and various consumer AI products, which are expected to experience rapid growth. This will lead to increased demand for chips used in training, inference, and storage, initiating a new investment cycle in semiconductor equipment [2]. - The report also highlights the importance of computing infrastructure investments to support AI endpoints, recommending investments in cooling systems and energy solutions due to power shortages [2]. Export Recovery Drivers - The report outlines three key drivers for the expected recovery in machinery equipment exports by 2026: 1. Recovery in overseas demand due to anticipated interest rate cuts by the Federal Reserve, which will boost global industrial product demand [3]. 2. Strong infrastructure demand in countries along the Belt and Road Initiative, particularly in the Middle East, where domestic oil service equipment manufacturers are expected to benefit from high growth [3]. 3. Increased demand for equipment driven by AI computing needs, leading to growth in gas turbines and diesel generator sets, as well as PCB materials and testing equipment [3]. Company Profit Forecasts - The report provides profit forecasts for key recommended companies, all rated as "Buy," indicating a positive outlook for their performance in the coming years [5].

Group 1 - The report indicates that the stock side employs a small-cap growth portfolio combined with a non-timing stock-bond rebalancing strategy of 10/90 and 20/80, projecting cumulative returns of 6.80% and 12.44% by 2025 respectively [1] - As of December 26, 2025, the total market size of fixed income plus funds reached 21,730.41 billion, with 1,147 products, and 233 of these funds achieved historical net value highs last week [2][18] - The report highlights that 25 new products were launched last week, with median performance across various fund types showing divergence, such as mixed bond type I (0.09%), mixed bond type II (0.29%), and flexible allocation type (0.31%) [2][14] Group 2 - The macro environment forecast for Q4 2025 suggests an inflationary trend, with the CSI 300 index yielding 2.88% since December, while the total wealth index of government bonds yielded -0.10% [3] - The report recommends focusing on specific industry ETFs for December 2025, including Southern CSI Shenwan Nonferrous Metals ETF and Huabao CSI Bank ETF, with a combined return of 3.08% last week [3] - The absolute return strategy performance tracking indicates that the stock-bond 20/80 rebalancing strategy yielded 0.45% last week, while the stock-bond risk parity strategy yielded 0.28% [4] Group 3 - The report details that the small-cap growth style within the stock-bond 20/80 combination performed exceptionally well, achieving a year-to-date return of 12.44% [4] - The report also notes that the conservative, balanced, and aggressive fund median returns were 0.14%, 0.27%, and 0.39% respectively for the week ending December 26, 2025 [2][14] - The absolute return strategy performance tracking shows that the combined strategy of stock-bond and industry ETF rotation yielded returns of 0.68% and 0.31% respectively last week [4]

Investment Rating - The report assigns a rating of "Buy" for the company [6] Core Insights - The company has established a product matrix based on three major technology platforms: vacuum, laser, and precision equipment, covering downstream sectors such as photovoltaics, displays, and semiconductors. Recently, the company secured the first perovskite/silicon heterojunction tandem line order in the industry, which will accelerate mass production in the sector. Additionally, the company's semiconductor and display business layouts are accelerating, potentially creating a second growth curve [2][12] Financial Summary - Total revenue is projected to reach 8,089 million in 2023, increasing to 9,830 million in 2024, before declining to 8,078 million in 2025, and then recovering to 8,555 million in 2026 and 9,410 million in 2027, reflecting a growth rate of 95.0% in 2023 and a decline of 17.8% in 2025 [4] - Net profit attributable to the parent company is expected to be 914 million in 2023, with slight increases to 926 million in 2024 and 896 million in 2025, followed by a rise to 1,052 million in 2026 and 1,169 million in 2027 [4] - Earnings per share (EPS) are forecasted to be 3.27 in 2023, 3.31 in 2024, 3.21 in 2025, 3.77 in 2026, and 4.18 in 2027 [4][15] Valuation - The company is positioned as a leading manufacturer of photovoltaic equipment, with accelerated platform layouts in displays and semiconductors. A price-to-earnings (PE) valuation of 60 times is applied for 2026, resulting in a target price of 225.94 [15][12] Market Data - The company's stock has a 52-week price range of 65.29 to 205.32, with a total market capitalization of 53,674 million [7] - The company has a net asset value per share of 28.13, with a price-to-book (P/B) ratio of 6.8 [8]

- The report tracks the performance of single factors and major factor categories in quantitative stock selection models across different stock pools (CSI 300, CSI 500, CSI 1000, CSI 2000, and CSI All Share). It highlights the excess returns of factors over different time periods, such as weekly, monthly, and yearly[7][28][30] - Single factors with strong weekly excess returns in the CSI 300 stock pool include "120-day change in analysts' forecasted net profit FY3" (2.11%), "EPS 120-day change FY3" (2.05%), and "90-day institutional earnings forecast adjustment" (1.96%)[30] - In the CSI 500 stock pool, factors with strong weekly excess returns include "standardized unexpected single-quarter ROA with drift" (1.18%), "standardized unexpected single-quarter net profit with drift" (1.15%), and "standardized unexpected P/E ratio (parent company) with drift" (1.15%)[31] - For the CSI 1000 stock pool, factors with strong weekly excess returns include "single-quarter non-recurring ROA change" (1.26%), "1-minute path momentum" (1.15%), and "20-day intraday return" (1.02%)[32] - In the CSI 2000 stock pool, factors with strong weekly excess returns include "60-day shareholding ratio change" (1.74%), "5-day shareholding ratio change" (1.26%), and "EP 60-day change" (1.12%)[33] - Major factor categories with strong weekly excess returns in the CSI 300 stock pool include "analysts' surprise" (1.96%), "growth" (1.5%), and "analysts" (1.24%). For the full year, the best-performing categories are "profitability" (33.2%), "analysts' surprise" (30.25%), and "growth" (29.73%)[37][38][40] - In the CSI 500 stock pool, the best-performing major factor categories for the year are "growth" (16.68%), "analysts" (10.84%), and "analysts' surprise" (8.32%)[42][43] - For the CSI 1000 stock pool, the top-performing major factor categories for the year are "growth" (18.41%), "analysts" (10.99%), and "analysts' surprise" (10.86%)[47][48] - In the CSI 2000 stock pool, the best-performing major factor categories for the year are "market capitalization" (22.73%), "analysts' surprise" (20.54%), and "growth" (20.25%)[52][55] - The CSI All Share stock pool shows the best-performing major factor categories for the year as "market capitalization" (43.82%), "growth" (26.45%), and "analysts' surprise" (23.55%)[57][58] - The report also tracks the performance of index enhancement strategies based on multi-factor stock selection models. For the CSI 300 stock pool, the strategy achieved a weekly return of 2.38% and an annual return of 27.19%, with an excess return of 8.84% and a maximum drawdown of -3.15%[59][60] - For the CSI 500 stock pool, the strategy achieved a weekly return of 3.59% and an annual return of 31.54%, with an excess return of 1.28% and a maximum drawdown of -4.76%[60] - The CSI 1000 stock pool's strategy achieved a weekly return of 3% and an annual return of 42.2%, with an excess return of 14.54% and a maximum drawdown of -5.59%[66] - The CSI 2000 stock pool's strategy achieved a weekly return of 1.76% and an annual return of 63.87%, with an excess return of 27.31% and a maximum drawdown of -5.23%[66]

Investment Rating - The investment rating for the company is "Accumulate" with a target price of 33.58 CNY [6][12]. Core Insights - The company maintains a leading position in breeding costs, with a projected continuous growth in pig sales volume. The company's low debt ratio and high cash flow security are highlighted [2][12]. - The report indicates that the company's breeding cost as of October 2025 is 12.2 CNY/kg, which remains industry-leading. It is expected that breeding costs will continue to decline in 2026 [12]. - The company sold approximately 300,000 pigs in 2025, representing a year-on-year growth of about 32%. The company aims to reach a target of 5 million pigs sold [12]. - The company's debt ratio is low, with asset-liability ratios of 26.41%, 27.39%, and 27.07% for 2023 to Q3 2025, indicating a stable financial position [12]. Financial Summary - Total revenue is projected to grow from 3,891 million CNY in 2023 to 7,469 million CNY in 2027, reflecting a compound annual growth rate (CAGR) of approximately 13.8% [4]. - Net profit attributable to the parent company is expected to recover from a loss of 401 million CNY in 2023 to a profit of 978 million CNY in 2027 [4]. - Earnings per share (EPS) is forecasted to increase from -0.76 CNY in 2023 to 1.86 CNY in 2027 [4]. - The return on equity (ROE) is projected to improve from -9.6% in 2023 to 15.1% in 2027 [4]. Market Data - The company's market capitalization is approximately 15,454 million CNY, with a total share capital of 525 million shares [7]. - The stock price has fluctuated between 24.81 CNY and 35.70 CNY over the past 52 weeks [7]. - The current price of the stock is 29.45 CNY [12].