Industry Investment Rating - The report maintains an **Overweight** rating on the electronic components industry, particularly focusing on the high-speed Ethernet switch and PCB sectors [1] Core Viewpoints - **800G Ethernet Switches**: The report highlights the potential for 800G Ethernet switches to experience significant growth, driven by AI data center demands and the need for higher bandwidth and lower latency [1][7] - **High-Speed PCB Demand**: With the rise of 800G and future 1.6T Ethernet switches, the demand for high-speed PCBs is expected to surge, particularly for multi-layer PCBs with advanced materials and manufacturing processes [1][35] - **Market Growth**: The global Ethernet switch market reached $44.2 billion in 2023, with a 20.1% YoY growth, driven by data center expansion and AI infrastructure needs [12] Key Companies and Recommendations - **Hudian Co., Ltd. (沪电股份)**: Rated **Overweight**, the company is a leading supplier of high-speed PCBs for Ethernet switches and AI servers, with strong growth in revenue and profitability [1][43] - **Shennan Circuits (深南电路)**: Rated **Overweight**, the company benefits from the AI-driven demand for high-speed PCBs and has shown significant revenue growth in its PCB and packaging substrate businesses [1][48] - **Shengyi Electronics (生益电子)**: The company is recommended for its focus on high-speed PCB products for 800G switches and AI servers, with a strong recovery in revenue and profitability [52][55] - **Founder Technology (方正科技)**: The company is noted for its growth in the PCB market, particularly in high-layer PCBs for data centers and AI applications, with improving profitability [56][57] Industry Trends and Drivers - **Ethernet vs. InfiniBand**: Ethernet and InfiniBand are the two dominant networking technologies in AI data centers, with Ethernet gaining traction due to its cost-effectiveness and compatibility advantages [9][14] - **800G and 1.6T Switches**: The report predicts that 800G switches will see rapid adoption starting in 2025, with 1.6T switches following suit, driven by AI and data center needs [28][29] - **PCB Layer and Material Upgrades**: As transmission rates increase, PCB layers and materials must evolve to meet higher performance requirements, with 800G switches requiring PCBs with 30+ layers and advanced CCL materials [35][36] Market Opportunities - **AI Data Center Expansion**: The growth of AI data centers is a key driver for the Ethernet switch and PCB markets, with major cloud service providers increasing capital expenditures to meet AI infrastructure demands [31][32] - **High-Speed PCB Market**: The high-speed PCB market is expected to benefit significantly from the adoption of 800G and 1.6T switches, with high barriers to entry and strong demand for advanced manufacturing capabilities [35][37]

Investment Rating - The report maintains an "Overweight" rating for the construction sector, indicating a positive outlook for the industry [1]. Core Insights - The construction industry is expected to see improvements in both performance and valuation due to favorable policies and a low current valuation, suggesting a high cost-performance ratio for investments [1][2]. - Recent monetary and fiscal policies, including a 0.5 percentage point reduction in the reserve requirement ratio and adjustments to mortgage rates, are anticipated to enhance liquidity and project demand in the construction sector [2][9]. - The report highlights that the construction sector's performance in Q4 is likely to rebound, particularly benefiting leading state-owned enterprises in the real estate and infrastructure sectors [2][4]. Summary by Sections Important Events Tracking - On September 24, the People's Bank of China announced a 0.5 percentage point reduction in the reserve requirement ratio, injecting approximately 1 trillion yuan into the financial market [2][9]. - The Central Political Bureau emphasized the need for effective use of special bonds and long-term government bonds to stimulate investment [2][9]. - The report notes that the issuance of special bonds reached 66.6 billion yuan in the week of September 23-30, with a cumulative issuance of 35,993.46 billion yuan for the year, accounting for 92.29% of the planned quota [3][20]. Market Performance Tracking - From September 23 to September 30, the construction engineering sector (SW) rose by 25.04%, while the overall A-share index increased by 26.30%, resulting in a relative underperformance of -1.26 percentage points for the construction sector [10]. - Sub-sectors such as housing construction, water and electricity, and road and bridge engineering showed significant gains, with increases ranging from 21.77% to 31.71% [10][11]. Industry Data Tracking - Fixed asset investment from January to August 2024 totaled 329,385 billion yuan, reflecting a year-on-year growth of 3.4% [4]. - The report indicates that the construction sector's price-to-earnings (PE) ratio is currently at 9.08, with a price-to-book (PB) ratio of 0.75, both of which are at historical low percentiles [13][15]. - The report recommends focusing on state-owned enterprises with stable growth and low valuations, as well as companies in high-growth sectors such as water and renewable energy [4][12].

＃title＃ ＃assAuthor＃ ＃assAuthor＃ 行 业 研 究 证券研究报告 ＃industryId＃ 有色金属 ＃investSuggestion 推荐 ＃ (＃ investS uggesti onChan ge＃ 维持 ） 行 业 跟 踪 报 告 ＃相关报告 relatedReport＃ 《【兴证金属】有色金属：国 内政策定调积极，继续重点推 荐铜铝布局机会》2024-09-29 《【兴证金属】有色金属：铜 铝进入再布局时点》2024-09- 22 《【兴证金属】铜行业 2024 年 中报总结及展望：板块盈利表 现亮眼，重视降息后资源品向 上弹性》2024-09-17 ＃分析师： emailAuthor＃ 赖福洋 laifuyang@xyzq.com.cn S0190522050001 看多商品，把握顺周期品种共振机会 ＃createTime1＃ 2024 年 10 月 08 日 投资要点 ＃summary＃ ⚫ 引言：大宗商品价格是现实与预期共同博弈的结果，而每年四季度随着需求 季节性走弱，预期对商品定价权重会大幅上升。中国作为全球最大的工业化 国家，对钢铁、铜铝需求影响举足轻重，因此 ...

Investment Rating - The report maintains an "Overweight" rating for the communication industry [2][3]. Core Viewpoints - The communication sector is currently positioned for growth, with a focus on AI computing, communication semiconductors, cyclical recovery, and dividend assets [2][3]. - AI computing is highlighted as a high-growth area, with strong performance in Q3 and low valuations for key players [2][3]. - The semiconductor sector is expected to benefit from recent market trends, particularly in Hong Kong, with domestic companies poised for gains [2][3]. - The cyclical recovery is driven by domestic economic improvements, positively impacting IoT and smart controller companies [3][8]. - Dividend assets are becoming more attractive due to recent policies enhancing dividend payouts from major telecom operators [3][8]. Summary by Sections Weekly Investment Overview - The report emphasizes the importance of AI computing, communication semiconductors, cyclical sectors, and dividend assets as key investment themes [7][8]. - Key recommended stocks include Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication, China Mobile, and Dingtong Technology [8]. Industry Dynamics - OpenAI announced a $6.6 billion funding round, raising its valuation to over $150 billion, indicating strong investment in AI infrastructure [9]. - New features were introduced at OpenAI's developer conference, simplifying the development of AI applications [10]. - Meta launched a new model capable of generating high-quality videos, showcasing advancements in AI technology [11]. Major Events - A list of significant upcoming events for communication companies is provided, including shareholder meetings and earnings announcements [15][16].

Investment Rating - The report maintains an "Overweight" rating for the media industry, with specific recommendations for companies within the gaming, traditional culture, and AI application sectors [2][3]. Core Insights - The media sector has experienced a significant rebound, with the valuation and fund holdings returning to historical lows. Recent events, such as the success of "Black Myth: Wukong," have catalyzed renewed interest in the sector, indicating potential for sustained growth [11][18]. - The report identifies three main investment themes: gaming, traditional culture, and AI applications, each with specific company recommendations [18]. Summary by Sections Industry Performance Review - From September 23 to September 27, 2024, the Shenwan Media sector rose by 15.94%, outperforming the CSI 300 by 0.24 percentage points but underperforming the ChiNext by 6.76 percentage points. The sector's performance was driven by significant gains in the film and television, digital media, and advertising segments [8][10]. - As of September 30, 2024, the Shenwan Media sector's performance was 11.18%, again outperforming the CSI 300 by 2.70 percentage points [10]. Key Data Tracking - In September 2024, 109 domestic games received approval, contributing to a total of 1,034 approvals for the year. This reflects a significant increase in the pace of game approvals [19][23]. - In terms of variety shows, Mango TV had 6 exclusive shows in the Top 20, while Tencent Video also had 6, indicating strong competition among platforms [33][34]. - For dramas, Tencent Video led with 9 exclusive shows in the Top 20, followed by iQIYI with 4, showcasing its dominance in the market [35][36]. Investment Themes 1. **Gaming Sector**: The success of "Black Myth: Wukong" has opened up substantial market opportunities, with recommendations for companies like Kayi Network and Yaoji Technology, which are expected to benefit from the "he economy" trend [18][20]. 2. **Traditional Culture**: The report emphasizes the potential for high-quality cultural products and IP development, recommending companies with strong IP reserves like Guomai Culture and Light Media [18][20]. 3. **AI Applications**: The ongoing advancements in AI technology are expected to drive growth in the media sector, with recommendations for companies involved in AI applications, including Kayi Network and Shanghai Film [18][20].

Investment Rating - The report maintains a "Buy" recommendation for the construction materials industry [1] Core Views - The cement industry is experiencing significant price increases, and favorable policy signals are expected to benefit retail building materials [1] - The report emphasizes the positive shift in real estate beta factors, suggesting a proactive approach to retail building materials [3] - It highlights the potential for profit recovery in the cement sector due to seasonal price increases and improved market conditions [3] Summary by Sections 1. Industry Views and Investment Recommendations - The report indicates that recent real estate policy relaxations have positively impacted the construction materials sector, suggesting a shift towards a more favorable beta factor [9] - Short-term indicators show that consumer building materials are at a holding and valuation bottom, while mid-term performance is expected to improve as the sector emerges from a low point [9] - Long-term prospects for consumer building materials are optimistic, driven by improved operational quality and a focus on retail and renovation markets [9] - Key companies recommended for investment include Oriental Yuhong, Dongpeng Holdings, and Rabbit Baby, with additional attention to Beixin Building Materials, Sankeshu, Weixing New Materials, and Mona Lisa [3][9] 2. Cement Industry Insights - The cement sector is expected to stabilize profits through seasonal price increases, with signs of a bottom emerging in the market [12] - The report notes that the first half of 2024 saw a decline in cement profitability, but collaborative price increases among leading companies are anticipated to support profit recovery in the latter half of the year [12] - The average price of cement in September 2024 was reported at 383.91 yuan per ton, reflecting a year-on-year increase [23] 3. High Dividend Stock Recommendations - The construction materials sector had a cash dividend ratio of 44.0% in 2023, with a 12-month dividend yield of 2.46% [14] - Companies with high dividend yields recommended for investment include Rabbit Baby, Luyang Energy Saving, and Weixing New Materials, among others [14] 4. Market Performance Overview - The construction materials index saw a week-on-week increase of 18.56%, outperforming the Shanghai Composite Index [21] - Specific sub-sectors such as pipe materials and cement manufacturing showed significant gains, indicating a positive market trend [21]

Investment Rating - The report maintains a "Buy" rating for key companies including Huayi Group, Weixing Co., and Biyin Lefen [3]. Core Viewpoints - The Chinese government has introduced a series of policies to boost consumer confidence, including a 0.5 percentage point reduction in the reserve requirement ratio and adjustments to mortgage rates, which are expected to enhance the valuation of the textile and apparel sector [7][11]. - The textile and apparel index rose by 14.5% in the week of September 23-27, slightly underperforming the CSI 300 index, which increased by 15.7% [14]. - The report anticipates that the performance of listed companies in the sector may improve rapidly in the fourth quarter, driven by the wealth effect and various supportive policies [7][11]. Summary by Sections 1. Main Views and Investment Suggestions - The report emphasizes that the brand apparel sector is expected to rebound, with significant policy support aimed at enhancing domestic consumption [7]. - Recommended stocks include Semir Fashion, Baoxini, and Fuanna, alongside established brands like Haianzhijia and Biyin Lefen [11][12]. 2. Market Review - The textile and apparel sector saw a 14.5% increase, with notable gains from Haianzhijia, which rose by 35.3% during the same period [14]. - The report highlights that the brand apparel segment has experienced a smaller decline compared to textile manufacturing since the beginning of the year [14]. 3. Key Companies and Valuation - Huayi Group is projected to have an EPS of 3.3 yuan for 2024, with a PE ratio of 20.4, while Weixing Co. has an EPS of 0.6 yuan and a PE of 22.2 [13]. - Biyin Lefen is expected to have an EPS of 1.9 yuan with a PE of 11.5 for 2024 [13].

Investment Rating - The report maintains an investment rating for the electronic industry [2][4]. Core Insights - The upcoming launch of MediaTek's Dimensity 9400 chip is expected to boost operational performance in Q4 and next year, driven by demand in mobile, PC, and AI sectors [3][24]. - The semiconductor industry is experiencing a significant sales increase, with global sales reaching $53.1 billion in August 2024, a 20.6% increase from August 2023 [3][26]. - Microsoft plans to invest €4.3 billion in AI and cloud infrastructure in Northern Italy, marking its largest investment in the country to date [3][18]. Summary by Sections 1. Market Review - From September 30 to October 4, the overall market saw significant gains, with the electronic industry index rising 12.94%, outperforming the broader market [8][12]. 2. Sub-industry News 2.1 Semiconductor - Global semiconductor sales reached $53.1 billion in August 2024, up 20.6% year-over-year, with notable growth in the Americas and China [13][26]. - The importance of domestic semiconductor production is highlighted, with ongoing expansion in wafer and storage facilities [3][26]. 2.2 AI, IoT, and Automotive Electronics - Microsoft's Windows 11 update introduces new AI features, enhancing user experience despite privacy concerns [3][17]. - The AI wave is expected to significantly increase demand for computing power across various sectors, including servers and AI chips [3][24]. 2.3 Innovative Electronics & Wearables - Meta plans to produce its Quest 3S VR headset in Vietnam starting in 2025, creating 1,000 jobs [19]. - Google Lens is experiencing rapid growth, with monthly visual searches reaching 20 billion [19]. 2.4 Mobile & 5G - The material cost for Apple's iPhone 16 Pro Max is reported at $485, a 7% increase from the previous model [20]. - Qualcomm has completed a $200 million acquisition of Sequans Communications to enhance its IoT semiconductor offerings [21]. 2.5 LCD & LED - The global LED display market is projected to reach $7.991 billion by 2025, driven by increasing applications and high-resolution display demands [22]. - The domestic production rate of flexible OLED panels has reached 98.2% in Q2 2024, reflecting strong growth in the sector [23]. 3. Industry Investment Strategy and Weekly Outlook - The report suggests focusing on companies in passive components, digital SoC, RF chips, storage, and packaging sectors, which are expected to benefit from the AI demand surge [3][24][25]. - Key companies recommended for investment include Huadian Technology, Tongfu Microelectronics, and Zhaoyi Innovation, among others [4][25].

Investment Rating - The report maintains a positive investment rating for the real estate sector, indicating a potential for stabilization and recovery in the market [1]. Core Insights - The report highlights that major cities are implementing comprehensive real estate policy optimizations to support market stabilization. This includes adjustments in purchase restrictions and down payment ratios for first and second homes [1]. - The overall transaction volume for new and second-hand homes has shown a significant decline year-on-year, with new home transaction volume down by 19.2% since the beginning of the year [1]. - The report emphasizes that the central government and local authorities are taking measures to promote market recovery, with expectations for core cities to stabilize first [1]. Summary by Sections 1. Market Overview - New home transaction area for the week was 235,000 square meters, with a year-to-date cumulative area of 8.106 million square meters, reflecting a 41% increase week-on-week but a 35% decrease year-on-year [5]. - The total transaction area for second-hand homes was 169,700 square meters, with a year-to-date cumulative area showing a 19.2% decline since the beginning of the year [1][5]. 2. Policy Changes - Major cities like Beijing, Shanghai, and Shenzhen have adjusted their real estate policies, including lowering down payment ratios to 15% for first-time buyers and 20% for second homes [1]. - The central bank has introduced measures to unify the minimum down payment ratio for commercial housing loans to no less than 15%, regardless of whether it is the first or second home [5]. 3. Company Announcements - Notable announcements include New City Holdings approving a borrowing limit of up to 1 billion yuan to support its operational needs [5]. - The report also mentions that major real estate companies are experiencing a decline in sales, with a 37.7% year-on-year drop in sales volume for the top 100 real estate firms in September [1][5]. 4. Regional Insights - The report provides detailed transaction data for various regions, indicating that first-tier cities are seeing a cumulative year-on-year decline of 26% in new home transactions, while second-tier cities are down by 37% [1][17]. - The report notes that the average de-stocking period for available properties in 10 major cities is approximately 17.7 months, reflecting ongoing challenges in the market [20].

Investment Rating - The report maintains a positive investment suggestion for the computer industry [1] Core Viewpoints - The computer sector has shown significant resilience, with a cumulative increase of 41.8% since the Federal Reserve's interest rate cut decision on September 18, ranking second among 30 sectors [3][7] - Key factors influencing the sector's performance in October include policy incentives, quarterly earnings expectations, and industry changes, particularly in financial IT and trusted computing [3][7] Summary by Sections Industry Weekly Viewpoints - The computer sector has outperformed, with a 13.61% increase in the week before the National Day holiday, leading all sectors [9][10] - The report emphasizes the importance of policy support and the expected release of more policies as the year-end approaches, which could enhance the sector's upward momentum [3][7] Market Review - The computer index's performance is highlighted, showing a 13.61% increase, outperforming the Shanghai Composite Index by 5.55 percentage points [9][10] Company Dynamics - Companies to watch include those in securities IT such as Tonghuashun and Guiding Compass, as well as trusted computing firms like Kingsoft Office and Dameng Data [8][41] Investment and Financing Summary - A total of 10 financing events were reported in the computer industry from September 21 to October 6, with significant investments in AI-related companies [38][39] Bidding Information Statistics - The total bidding amount for key companies reached 928 million yuan, with Yonyou Network securing the largest bid of 163 million yuan [42][43]