Policy Developments - China and France will enhance cooperation in nuclear research, technology applications, and fusion technology, as evidenced by the signing of the 15th cooperation protocol on December 4, 2023[5] - The National Energy Administration of China aims to steadily increase the share of nuclear energy in energy consumption, with 67 out of 112 approved nuclear units (60%) utilizing third-generation or higher technology[5] Industry Dynamics - A breakthrough in superconducting magnet technology was achieved, with a central magnetic field strength of 16.5 Tesla and an inner diameter of 150mm, indicating significant potential for commercial applications in controlled nuclear fusion[6] - The "Xuanlong-50U" device successfully implemented an intelligent control system for plasma shape using reinforcement learning, enhancing precision in plasma control and aligning with national energy strategies[6] - The CRAFT facility passed its first performance test, marking progress in the development of key systems for fusion reactors[6] Investment and Financing - No specific investment or financing events were reported in this period[9] Risk Factors - Potential risks include underperformance of industrial policies and technological breakthroughs not meeting expectations[10]

Investment Rating - The report assigns a rating of "Buy" to the company with a target price of 41.35 CNY [6][12]. Core Insights - The company is a leading provider of digital products and solutions, focusing on intelligent computing hardware and software, and is well-positioned in the digital transformation and new infrastructure sectors [3][27]. - The core subsidiary, Baifei Electronics, is a leader in domestic embedded computing, experiencing rapid order growth due to the rising demand in specialized electronic equipment [3][41]. - The future growth potential is significant, driven by AI and domestic innovation initiatives [3][27]. Financial Summary - Total revenue is projected to grow from 10,001 million CNY in 2023 to 13,990 million CNY by 2027, reflecting a compound annual growth rate (CAGR) of approximately 10.4% [5][20]. - Net profit attributable to the parent company is expected to increase from 497 million CNY in 2023 to 726 million CNY in 2027, with a notable growth rate of 16.2% in 2027 [5][20]. - Earnings per share (EPS) is forecasted to rise from 0.73 CNY in 2023 to 1.07 CNY in 2027 [5][20]. Revenue Breakdown - The industry digitalization business is expected to achieve revenues of 9,721.91 million CNY in 2025, with a growth rate of 10% [19]. - The digital new infrastructure business is projected to generate revenues of 965.56 million CNY in 2025, with a growth rate of 20% [19]. - The digital products business is anticipated to reach revenues of 800 million CNY in 2024, with a growth rate of 1.19% [19]. Business Segments - The company operates in three main business segments: digital products, industry digitalization, and digital new infrastructure, with the digitalization segment contributing the highest revenue [33][34]. - The digital products segment includes intelligent computing hardware and software, while the industry digitalization segment focuses on enhancing digital infrastructure solutions [33][34]. - The digital new infrastructure segment provides comprehensive services throughout the lifecycle of digital infrastructure projects [33][34]. Internationalization and AI Initiatives - The company has successfully expanded its international business, generating 5.98 million CNY in revenue in 2024, with a focus on financial and telecommunications sectors [37]. - AI-related orders have surpassed 100, indicating a strong demand for intelligent computing solutions [36][37].

Group 1: IPO Guidelines and Market Trends - The Shanghai Stock Exchange released IPO guidelines for commercial rocket companies on December 26, 2025, enhancing the adaptability and inclusiveness of the listing standards[6] - Eight commercial aerospace companies have filed for IPO guidance, with Blue Arrow Aerospace expected to be the first to list after passing recent evaluations[9] - The overall market showed strong upward movement in the fourth week of December, with the ChiNext Index and the Sci-Tech 50 Index rising by 3.90% and 2.85%, respectively[11] Group 2: New Stock Performance - Four new stocks listed during the week, with an average first-day increase of approximately 200%, including gains of 255.09% for Jianxin Superconductor and 231.48% for Nabai Chuan[4] - A/B class investors earned returns of 30.35 and 28.27 thousand yuan per account from these new stocks, translating to a yield increase of 0.61‰ and 0.57‰ for a 500 million yuan account size[4] - The new stock index experienced a slight decline of 0.02%, while the near-term new stock index rose by 0.22%[11] Group 3: Market Dynamics and Risks - The new stock market showed signs of a slight pullback, with an average decline of 0.79% across 37 new stocks, indicating mixed performance[4] - There is a risk of reduced subscription rates for new stock purchases and compliance risks related to internal systems for offline investors[4] - The net active selling in the new stock sector amounted to 59.21 billion yuan, a decrease of 7.63 billion yuan from the previous week, with institutional investors contributing to this reduction[28]

Quantitative Models and Construction Methods 1. **Model Name**: Dividend Style Timing Model **Model Construction Idea**: The model is designed to time the dividend style by aggregating multiple factors that influence the performance of dividend-related stocks. The comprehensive factor value is used to determine the timing signal for the dividend style[6]. **Model Construction Process**: - The model aggregates several sub-factors, including U.S. Treasury yields, the spread between dividend yield and Chinese bond yields, and industry sentiment indicators. - The comprehensive factor value is calculated as a weighted sum of these sub-factors. - The model outputs a signal based on whether the comprehensive factor value is greater than or less than zero. A positive value indicates a favorable timing signal, while a negative value suggests an unfavorable signal[6][7]. **Model Evaluation**: The model provides a systematic approach to timing the dividend style, but its effectiveness depends on the stability and predictive power of the underlying factors[6][7]. --- Model Backtesting Results 1. **Dividend Style Timing Model**: - Comprehensive factor value for the week of 2025.12.22 to 2025.12.26: -0.55 - Comprehensive factor value for the previous week (2025.12.15 to 2025.12.19): -0.72 - The model's comprehensive factor value showed improvement but remained below zero, indicating no positive timing signal[6][7]. --- Quantitative Factors and Construction Methods 1. **Factor Name**: U.S. 10-Year Treasury Yield **Factor Construction Idea**: This factor reflects the impact of U.S. Treasury yields on dividend style performance. A decline in yields is generally considered supportive of dividend stocks[7]. **Factor Construction Process**: The factor value is derived from the weekly change in the 10-year U.S. Treasury yield. A negative value indicates a decline in yields, which is expected to positively influence the dividend style[11]. 2. **Factor Name**: Spread Between Dividend Yield and 10-Year Chinese Bond Yield **Factor Construction Idea**: This factor measures the relative attractiveness of dividend yields compared to risk-free bond yields in China. A wider spread is considered favorable for dividend stocks[7]. **Factor Construction Process**: - The factor value is calculated as the difference between the dividend yield of the CSI Dividend Index and the 10-year Chinese bond yield. - A positive value indicates that dividend yields are higher than bond yields, which is supportive of the dividend style[11]. 3. **Factor Name**: Industry Sentiment Indicator **Factor Construction Idea**: This factor captures the overall sentiment in the industry, which can influence the performance of dividend stocks. Positive sentiment is expected to support the dividend style[7]. **Factor Construction Process**: The factor value is derived from analysts' assessments of industry conditions. A higher value indicates stronger sentiment, which is favorable for dividend stocks[11]. --- Factor Backtesting Results 1. **U.S. 10-Year Treasury Yield**: - Factor value on 2025.12.26: -0.91 - Factor value on 2025.12.19: -1.08 - Factor value on 2025.11.30: -1.32[11] 2. **Spread Between Dividend Yield and 10-Year Chinese Bond Yield**: - Factor value on 2025.12.26: 0.72 - Factor value on 2025.12.19: 0.32 - Factor value on 2025.11.30: -0.32[11] 3. **Industry Sentiment Indicator**: - Factor value on 2025.12.26: 1.65 - Factor value on 2025.12.19: 1.77 - Factor value on 2025.11.30: 1.97[11]

1. Report Industry Investment Rating No relevant content provided 2. Core Viewpoints of the Report - The issuance term of local government bonds in Q1 2026 may set the tone for the whole year, and the issuance in 2026 is expected to further balance issuance costs and maturity repayment pressure [2] - The issuance of new local government bonds before the Spring Festival in 2026 may not result in physical work, and the peak issuance of new local government bonds may occur in the second and third quarters [2] 3. Summary According to the Table of Contents 3.1 Two - year Increase in Long - term Local Government Bond Supply, Mainly Due to the Lengthening of Special Refinancing Bond Issuance Terms - Since the implementation of debt resolution policies, the supply of long - term local government bonds has continued to increase. In 2025, compared with 2023, the issuance term increased by 3.0 years. The issuance term of special refinancing bonds increased by 10.3 years, and those of new bonds and refinancing bonds increased by 0.3 years and 1.3 years respectively [2][7] - In 2025, the average issuance term of special refinancing bonds was 18.9 years, an increase of 10.3 years compared with 2023. Seven provinces had an average issuance term of over 25 years, with more than half being key provinces [7] - In 2025, the average issuance term of new bonds was 16.8 years, with little change in the past 3 years, but significant regional differentiation. Four provinces saw an increase of over 5 years in issuance terms [7] - In 2025, the average issuance term of refinancing bonds was 9.6 years, an increase of 1.3 years compared with 2023. Twenty - four out of 31 provinces had lengthened issuance terms, and three provinces had an increase of over 5 years [7] 3.2 The Issuance Term of Local Government Bonds in Q1 2026 May Set the Tone for the Whole Year - As of December 27, 22 provinces and municipalities had announced their Q1 2026 issuance plans, with a total amount of 1593.4 billion yuan. The amount of new general bonds was 116.4 billion yuan, new special bonds was 483.5 billion yuan, and refinancing bonds was 993.5 billion yuan. The front - loading of replacement bonds is clear [2][8] - The issuance term of local government bonds in Q1 2026 may set the tone for the whole year. The proportion of replacement bonds in the Q1 2026 issuance plan may be relatively high. The lengthening of replacement bond terms was the main reason for the increase in long - term local government bond supply in the past two years [2][9] - In 2026, the issuance of local government bonds will further balance issuance costs and maturity repayment pressure. From the perspective of refinancing, the principal repayment ratio after local government bond maturity is between 10% - 15%. In volatile and bull markets, reducing the proportion of 15 - year, 20 - year (curve convex points), and 30 - year (high issuance cost) local government bonds is more advantageous; during interest rate adjustment periods, lengthening the term can lock in issuance costs. The issuance term in 2026 may be reduced compared with 2024 and 2025 [2][10][11] 3.3 Supply Rhythm: Replacement Bonds May Be Front - loaded, and the Peak of Special Bond Issuance May Occur in the Second and Third Quarters - In 2026, the Spring Festival falls in mid - to - late February. Issuing new local government bonds before the Spring Festival may not result in physical work. The first - quarter issuance may be mainly replacement bonds, and the peak issuance of new local government bonds may occur in the second and third quarters [13] - Q1: The issuance of replacement bonds is expected to be front - loaded to promote the repayment of implicit debts of financing platforms and the exit of financing platforms [13] - Q2 and Q3: After the second batch of local government bond quotas is released, there may be a peak in the issuance of new local government bonds. Historically, the monthly issuance scale during the peak may reach 800 - 1000 billion yuan, and the issuance progress of new local government bonds may reach around 90% by the end of September each year [13] - Q4: The remaining quotas and unused limits of new local government bonds will be issued. The unused limits in 2024 and 2025 were 400 billion yuan and 500 billion yuan respectively, and the Ministry of Finance issued them in the fourth quarter [13]

Investment Rating - The investment rating for the company is "Accumulate" [5]. Core Views - The company's performance continues to improve, with significant growth in both ODM and proprietary brand segments, leading to a notable recovery in overall financial results [2][12]. - The revenue and profit outlook has been adjusted, with expected EPS for 2025-2027 at 0.90, 1.32, and 1.73 yuan respectively, reflecting a positive trend in profitability [12]. - The company has established a balanced business structure focusing on ODM while also developing its proprietary brand, achieving profitability in its offline business [12]. Financial Summary - Total revenue is projected to grow from 1,067 million yuan in 2023 to 1,967 million yuan in 2027, with a CAGR of approximately 13.9% [4]. - Net profit attributable to the parent company is expected to recover from a loss of 77 million yuan in 2024 to a profit of 174 million yuan in 2027 [4]. - The gross margin is expected to improve, with a forecasted gross margin of 29.6% in 2025 [12]. Market Position - The company has a total market capitalization of 3,084 million yuan, with a share price range over the past 52 weeks between 19.67 and 44.97 yuan [6]. - The company has established strong relationships with clients in various international markets, with overseas revenue accounting for 53.26% of total revenue in the first half of 2025 [12]. Profitability Metrics - The net profit margin for the first three quarters of 2025 is reported at 6.9%, an increase of 2.5 percentage points year-on-year [12]. - The return on equity (ROE) is expected to improve from -7.8% in 2024 to 13.6% in 2027 [4][12].

Market Performance - Emerging markets showed stronger performance last week, with MSCI Global up by 1.2%, MSCI Developed Markets up by 1.1%, and MSCI Emerging Markets up by 1.7% [9][12] - Among developed markets, the Taiwan Weighted Index had the best performance at +3.1%, while the French CAC40 Index was the weakest at -0.6% [9] - In the emerging markets, the ChiNext Index performed the best at +3.9%, while the Indian Sensex30 was the weakest at +0.1% [9] Trading Sentiment - Trading volume in the US and Europe decreased due to the Christmas holiday, with the Hang Seng Index's volatility continuing to decline [23] - The Shanghai Composite Index's trading volume increased to 2.51 billion shares and $564.5 billion, while the Hang Seng Index's trading volume decreased to 5.8 billion shares and $24.4 billion [23] - Investor sentiment in Hong Kong improved, with short-selling ratios decreasing to 15.1%, while North American sentiment remained high with the NAAIM Manager Index at 95.1% [23][26] Earnings Expectations - The global energy sector's earnings expectations were significantly revised upwards, while the Hong Kong market's earnings expectations were revised downwards [72] - The Hang Seng Index's 2025 EPS earnings expectation was adjusted from 2063 to 2062, with the energy sector seeing the largest upward revision of +7.1 [72] - In the US market, the S&P 500 Index's 2025 EPS earnings expectation remained stable at 273, with the energy sector also seeing a slight upward revision of +0.4 [72] Economic Expectations - Economic indicators in the US and Europe showed marginal improvement, with the Citigroup US Economic Surprise Index returning to positive territory [72] - The European Economic Surprise Index also saw a slight increase, supported by stable ECB rate policies and reduced geopolitical tensions [72] - In contrast, the Citigroup China Economic Surprise Index declined, influenced by weak industrial profit growth and fluctuating policy expectations [72] Fund Flows - The Federal Reserve's stance on interest rate cuts for 2026 remains divided, with hawkish officials advocating for caution due to inflation concerns [55] - Market expectations indicate that the Fed may cut rates approximately twice in 2026, unchanged from the previous week [55] - Global liquidity trends showed significant inflows into China, the US, South Korea, India, and Europe, with Hong Kong experiencing accelerated capital inflows [66][67]

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies [1]. Core Insights - The launch of the carbon-based high-performance materials demonstration project by China Chemical signifies the first industrial application of graphene continuous gas-phase synthesis technology in China [1]. - Clearon Technology has completed a multi-million angel round financing to expand production lines and develop core equipment for high-performance composite dielectric films [3]. - Guangyin Technology has secured a significant A+ round financing to accelerate the industrialization of perovskite technology and expand into consumer electronics and IoT applications [4]. Summary by Sections Industry Development Dynamics - The carbon-based high-performance materials demonstration project in Hefei covers an area of 49.43 acres and includes a production line for 200 tons/year of gas-phase synthesized graphene powder and 4000 tons/year of graphene functional slurry [1]. Investment and Financing Dynamics - Clearon Technology, founded in September 2024, focuses on high-performance composite dielectric materials and has completed a multi-million angel round financing led by Zhongke Chuangxing [3]. - Guangyin Technology, established in 2022, aims to commercialize perovskite technology and has received funding to enhance its production capacity and market reach [4]. Market Performance - The Wande New Materials Index rose by 7.03% in the week from December 22 to December 26, while the CSI 300 Index increased by 1.95% during the same period [6].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoint The report tracks important developments in the domestic and international "dual carbon" field from December 22 to December 26, 2025, mainly in the carbon quota trading area. Prices of carbon allowances in European and American carbon markets increased last week, while volume decreased; the price of Korean carbon allowances decreased, and so did the volume. In the domestic market, the cumulative trading volume and amount of carbon emission allowances in the national carbon market increased significantly, and the weekly trading volume in domestic pilot carbon markets also rose [2]. 3. Summary by Directory 3.1 International Carbon Trading Market Tracking - **European Carbon Quota Price and Volume**: EUA spot prices rose by 1.28% from December 22 to December 23, and due to Christmas closures, the trading volume decreased by 44.51% to 278,000 tons last week [6]. - **US Carbon Quota Price and Volume**: EUA futures prices rose by 0.61% from December 22 to December 24, with a trading volume decrease of 65.01% to 58.7 million tons last week. UKA futures prices rose by 0.95% from December 22 to December 26 [9]. - **Korean Carbon Quota Price and Volume**: KAU25 spot prices decreased by 1.58% from December 22 to December 26, and the trading volume dropped by 29.68% to 462,400 tons last week [13]. 3.2 Domestic Carbon Market Tracking - **National Carbon Market Carbon Quota Volume and Average Transaction Price**: The cumulative trading volume of national carbon market carbon allowances (CEA) was 1.56556 million tons, and the cumulative trading amount was 1.122 billion yuan, with increases of 60.92% and 93.63% respectively. As of December 26, the average daily transaction price of CEA was 71.36 yuan/ton, up 19.66% [16]. - **Weekly Average Transaction Price of Carbon Quotas in Domestic Pilot Provincial and Municipal Carbon Markets**: Except for HBEA in Hubei Province, the weekly average transaction prices of carbon quotas in domestic pilot carbon markets increased. FJEA in Fujian Province had the largest increase at 10.63%. Compared with the same period last month, the prices varied. BEA in Beijing had the largest increase at 7.01%, and SZA in Shenzhen had the largest decrease at 15.66% [18]. - **Trading Volume and Transaction Amount of Carbon Quotas in Domestic Pilot Provincial and Municipal Carbon Markets**: Last week, carbon quota trading in domestic pilot carbon markets was mainly concentrated in Tianjin, Hubei, and Guangdong, accounting for 77.82% of the total weekly trading volume. The transaction amounts in Tianjin, Beijing, and Hubei accounted for 76.55% of the total. The total weekly trading volume in domestic pilot carbon markets was 759,400 tons, an increase of 88.70% [19]. 3.3 Dual Carbon Frontier Technology Tracking - **Delivery of the World's First Methanol Dual-Fuel Powered Intelligent Ultra-Large Oil Tanker**: On December 22, the "Kaituo" tanker, the world's first methanol dual-fuel powered intelligent ultra-large oil tanker, was successfully delivered in Dalian. It has features such as strong seaworthiness, good port adaptability, low emissions, and intelligent operation. Compared with conventional fuel oil, it can reduce carbon dioxide emissions by up to 92% [24]. - **Release of the World's First Native Power Professional Large Model**: Recently, the NWHR Power Production Large Model (AI EPS V1.0) was officially released, which is the world's first native power large model innovated from the source of the underlying architecture, a significant innovation in the application of AI in the vertical field of power production [24].

- The Growth 50 portfolio achieved the best performance last week with a weekly return of 3.71%, generating an excess return of 0.47% relative to the China Securities Growth Index[1][5] - The Value 50 portfolio and the Value Balanced 50 portfolio had weekly returns of 1.79% and 0.36%, respectively[5] - The Small Cap 50 portfolio and the Small Cap Balanced 50 portfolio had weekly returns of 1.13% and 3.53%, respectively[5] - The annual returns for the Value 50 portfolio and the Value Balanced 50 portfolio were 19.70% and 24.05%, respectively[5] - The annual returns for the Growth 50 portfolio and the Growth Balanced 50 portfolio were 28.75% and 33.90%, respectively[5] - The annual returns for the Small Cap 50 portfolio and the Small Cap Balanced 50 portfolio were 49.75% and 45.36%, respectively[5] - The maximum relative drawdown for the Value 50 portfolio was 5.19%, and for the Value Balanced 50 portfolio, it was 4.91%[8] - The maximum relative drawdown for the Growth 50 portfolio was 11.66%, and for the Growth Balanced 50 portfolio, it was 13.35%[8] - The maximum relative drawdown for the Small Cap 50 portfolio was 10.89%, and for the Small Cap Balanced 50 portfolio, it was 4.56%[8] - The Smart beta portfolios were constructed based on high beta elasticity and long-term stable excess returns, selecting historically low-correlated styles such as value, growth, and small cap[7]