Investment Rating - The industry investment rating is "Positive" and is maintained [4] Core Viewpoints - The multi-modal video generation sector is experiencing accelerated iteration of domestic models, significantly narrowing the technological gap with overseas counterparts. The most notable change is the introduction of intelligent storyboarding, which lowers the entry barrier for users. The unified multi-modal architecture supports more efficient and flexible expression of creative intent, leading to substantial progress in both B-end and C-end expansions in 2026. Model vendors are focusing on the AI penetration in the content sector while continuing to enhance their technologies [1][7] Summary by Sections Industry Overview - The video generation sector is entering a phase of precise control, with recent iterations of models such as Vidu Q3, Kuaishou 3.0, and Seedance 2.0 supporting multi-modal inputs, which enhances controllability and improves the success rate of generated content. The duration for single generation has increased to around 15 seconds, further lowering the creative threshold for both B-end and C-end users [7] Investment Recommendations and Targets - Emphasis should be placed on vertical multi-modal AI application opportunities, with expectations that technological breakthroughs and cost optimizations will accelerate industry trends, driving user growth, payment penetration, and commercialization. Companies with multi-modal AI applications expanding overseas are particularly noteworthy, as they may experience faster growth rates. Recommended targets include Kuaishou-W (01024, Buy) and Meitu Inc. (01357, Buy) [2]

Investment Rating - The report maintains a "Positive" outlook for the non-ferrous metals industry [5] Core Viewpoints - Short-term fluctuations do not alter the long-term positive trend for the non-ferrous metals sector, with a focus on low-position investment opportunities [7][12] - The zinc sector is viewed as an overlooked foundational material in the context of "de-globalization," with improving supply-demand dynamics expected to drive prices upward [13] - The aluminum sector, particularly the electrolytic aluminum industry, is anticipated to enjoy valuation premiums due to its supply chain security and competitive advantages [14] - In the precious metals sector, investors are advised to wait for price stabilization before re-entering positions, despite a long-term bullish outlook for gold [14] Summary by Sections 1. Core Viewpoints - Short-term market volatility is expected, but the long-term outlook remains positive, driven by ongoing demand and supply constraints in the non-ferrous metals market [12] - The zinc market is expected to benefit from increased demand due to re-industrialization in Asia, Africa, and Latin America, despite current domestic construction concerns [13] - The aluminum industry is positioned to gain from enhanced supply chain security and competitive advantages, with domestic production capabilities improving [14] - Precious metals are currently experiencing high volatility, and investors are encouraged to wait for a more stable price environment before making new investments [14] 2. Steel Industry - The steel sector is facing a weak fundamental backdrop as it approaches the Chinese New Year, with expectations for policy measures to support the industry [15] - Steel production has seen a slight increase, but demand for rebar is weakening, with a notable decrease in consumption [20] - Inventory levels for both social and steel mill stocks are rising, indicating potential oversupply concerns [22] - Overall steel prices have experienced a slight decline, reflecting broader market trends [31] 3. New Energy Metals - Lithium production in December 2025 saw a significant year-on-year increase, indicating strong supply growth in the new energy sector [35] - The demand for new energy vehicles remains robust, with production and sales showing significant year-on-year growth [39] - Prices for lithium and nickel have shown notable declines, while cobalt prices have remained stable [44]

Investment Rating - The industry investment rating is "Positive (Maintain)" [6] Core Viewpoints - The macro sentiment remains volatile, leading to increased volatility in the commodity market. Short-term demand for replenishment supports prices after a correction in lithium carbonate futures. In the medium term, supply constraints and rising costs at the mining level maintain an upward price trend for lithium. The cobalt sector is supported by raw material costs, with limited downside potential despite price corrections, and the market is expected to remain in a state of fluctuation [4][9] Summary by Sections 1. Cycle Assessment - Lithium and cobalt core targets have clear investment value, suggesting active positioning. Lithium carbonate prices have significantly corrected, with downstream purchasing concentrated on replenishment. Futures contracts saw a weekly decline of 10.25% to 133,900 CNY/ton for the Wuxi 2605 contract and 10.92% to 132,000 CNY/ton for the Guangxi 2605 contract. Lithium concentrate prices were reported at 1,880 USD/ton, down 90 USD from the previous week [9][14] 2. Company and Industry Dynamics - Recent announcements include support for rural consumption expansion, particularly in new energy vehicles and smart home appliances, as outlined in the 2026 Central Document No. 1. Tian Tie Technology announced its subsidiary completed high-tech enterprise re-certification. Shengxin Lithium Energy plans to acquire a 13.93% stake in Huirong Mining for 1.2597 billion CNY to enhance lithium supply security [18] 3. Core Data on New Energy Materials - January production of domestic lithium carbonate increased by 5% month-on-month, while hydroxide production decreased by 4%. The inventory showed structural adjustments [19][23]

Group 1 - The report highlights that the recent volatility in the commodity market has significantly impacted market sentiment, with a notable focus on the consumer and financial sectors, which have shown resilience despite overall market weakness [4][7][13] - The analysis suggests that the recent adjustments in commodity prices are primarily driven by deleveraging rather than a fundamental shift in market trends, indicating that the market does not expect significant changes from the newly appointed hawkish Federal Reserve chairman [9][14] - The report identifies that the consumer and financial sectors have become preferred options for expressing risk aversion, as traditional safe-haven assets like gold have been affected by high leverage risks [13][14] Group 2 - The report anticipates that as the deleveraging issues in the commodity market stabilize, cyclical sectors, particularly chemicals and agriculture, are likely to regain prominence as key investment themes [4][14] - It is noted that the recent performance of the financial sector, particularly banks over brokerages, reflects a lower risk appetite in the market, further supporting the notion of risk aversion [13][14] - The report emphasizes that the current market dynamics, including the inverse relationship between long-term interest rates and consumer stocks, suggest a unique market environment where traditional correlations are disrupted [14][15]

Investment Rating - The industry investment rating is "Positive (Maintain)" [6] Core Viewpoints - The macro sentiment remains volatile, leading to increased volatility in the commodity market. Short-term demand for replenishment supports prices after a correction in carbonate lithium futures. In the medium term, limited supply of lithium salts and rising costs at the mining level maintain the upward price logic for lithium. The cobalt sector is supported by raw material costs, with prices showing resilience despite a recent correction, and overall downward space is limited, with expectations of market stabilization [4][9][14]. Summary by Sections 1. Cycle Assessment - Lithium and cobalt core targets have clear investment value, suggesting active positioning. The carbonate lithium price has significantly corrected, with downstream concentrated purchasing for replenishment. Futures contracts saw a weekly drop of 10.25% to 133,900 CNY/ton for Wuxi and 10.92% to 132,000 CNY/ton for Guangxi. Lithium concentrate prices fell to 1,880 USD/ton, down 90 USD from the previous week [9][14]. 2. Company and Industry Dynamics - Recent announcements include the central government's initiatives to expand rural consumption, supporting the adoption of new energy vehicles and smart appliances. Tian Tie Technology's subsidiary has been re-certified as a high-tech enterprise, while Shengxin Lithium Energy plans to acquire a 13.93% stake in Huirong Mining to enhance lithium supply security [18]. 3. Core Data on New Energy Materials - January production of domestic carbonate lithium increased by 5%, while hydroxide lithium production decreased by 4%. The inventory showed structural adjustments, with a weekly decrease in carbonate lithium production of 3.82% and inventory down by 1.88% [19][48].

Investment Rating - The report maintains a "Positive" outlook for the non-ferrous metals industry [5] Core Viewpoints - Short-term fluctuations do not alter the long-term positive trend, and investors should look for low-position opportunities in the sector [7][12] - The zinc sector is seen as an overlooked basic material in the context of de-globalization, with improving supply-demand dynamics suggesting potential price increases [13] - The aluminum sector, particularly electrolytic aluminum, is expected to enjoy valuation premiums due to its supply chain security and competitive advantages [14] - In the precious metals sector, it is advised to wait for price stabilization before increasing positions, as long-term bullish trends remain intact despite recent volatility [14] Summary by Sections 1. Core Viewpoints - Short-term market fluctuations are not expected to change the long-term positive outlook for the non-ferrous metals sector, with a focus on low-position investment opportunities [12] - The zinc sector is anticipated to benefit from increased demand driven by re-industrialization in Asia, Africa, and Latin America, despite current market skepticism [13] - The aluminum sector is projected to see steady profit growth due to enhanced supply chain security and the ongoing transition from copper to aluminum in air conditioning applications [14] - Precious metals are recommended for cautious investment, with a focus on long-term price stability and potential upward trends [14] 2. Steel Industry - The steel industry is experiencing a weak fundamental outlook as it approaches the seasonal low around the Spring Festival, with expectations for policy measures to support the sector [15] - Steel production has seen a slight increase, while demand for rebar has weakened significantly [20] - Inventory levels for both social and steel mill stocks are on the rise, indicating potential oversupply concerns [22] - Overall steel prices have slightly declined, reflecting broader market trends [31] 3. New Energy Metals - Lithium carbonate production in December 2025 saw a significant year-on-year increase of 69.09%, indicating strong supply growth in the new energy sector [35] - The demand for new energy vehicles remains robust, with production and sales showing notable year-on-year growth [39] - Prices for lithium and nickel have experienced significant declines, while cobalt prices have remained stable [44]

Investment Rating - The industry investment rating is "Positive (Maintain)" [5] Core Viewpoints - The space photovoltaic sector is experiencing upward momentum driven by both domestic and international factors, with significant opportunities for leading equipment manufacturers and core material companies in China [2][7] - The market potential for space photovoltaics is substantial, with projections indicating a possible scale of 8GW annually if 80,000 satellites are launched each year, translating to a market space of approximately 8 trillion yuan [7] - China's photovoltaic industry chain is robust, with leading equipment manufacturers like Maiwei and Aotwei expected to capture incremental orders, while core material manufacturers are also poised for growth due to increasing demand from overseas clients [7] Summary by Sections Investment Suggestions and Targets - Investment suggestion emphasizes the strong growth potential in the space photovoltaic sector, recommending attention to domestic leading equipment manufacturers and core material producers [3] - Key equipment manufacturers to watch include Aotwei (688516), Maiwei (300751), and Jiejia Weichuang (300724) [3] - Core material companies recommended include Dongfang Risen (300118), Junda Co. (002865), and Foster (603806) [3] Industry Dynamics - High capital expenditures from domestic and international cloud service providers are expected to drive demand for electrical equipment [7] - The "14th Five-Year Plan" outlines significant investments in green energy applications, positioning new energy technologies as a cornerstone for carbon reduction [7] - The National Grid's investment plan of 4 trillion yuan is anticipated to resonate positively across domestic and international power grid sectors [7]

Investment Rating - The industry investment rating is maintained as "Positive" [5] Core Viewpoints - The chemical industry is experiencing a recovery opportunity across various sub-sectors, with specific recommendations for leading companies such as Wanhua Chemical (600309, Buy) in the MDI sector, and China Petroleum & Chemical Corporation (600028, Buy) in the refining sector [3][5] - The demand for oxalic acid is expected to rise, driven by investments in the iron-lithium supply chain, indicating a tightening supply-demand situation that may elevate market conditions [3][8] Summary by Relevant Sections Investment Suggestions and Targets - The report continues to favor recovery opportunities in the chemical sub-sectors, recommending leading companies such as: - MDI leader: Wanhua Chemical (600309, Buy) - PVC industry: Zhongtai Chemical (002092, Not Rated), Xinjiang Tianye (600075, Not Rated), Chlor-alkali Chemical (600618, Not Rated), Tianyuan Co., Ltd. (002386, Not Rated) - Refining sector: China Petroleum & Chemical Corporation (600028, Buy), Rongsheng Petrochemical (002493, Buy), Hengli Petrochemical (600346, Buy) - Agricultural chemical chain: Guoguang Co., Ltd. (002749, Buy), Xinyangfeng (000902, Buy), Shidanli (002588, Not Rated), Yuntu Holdings (002539, Not Rated), Runfeng Co., Ltd. (301035, Buy) - Phosphate chemical sector: Chuanheng Co., Ltd. (002895, Not Rated), Yuntianhua (600096, Not Rated) - Oxalic acid sector: Hualu Hengsheng (600426, Buy), Huayi Group (600623, Buy), Wankai New Materials (301216, Buy) [3] Market Dynamics - The chemical industry has seen increased attention, with a recovery in stock prices following a dip influenced by precious metals and crude oil futures. This indicates a shift away from previous narratives tied to external market influences [8] - The report highlights that the current chemical market rally is primarily driven by policy guidance and strategic adjustments within the industry, suggesting a return to a favorable economic cycle for the chemical sector [8]

Investment Rating - The report maintains a "Positive" investment rating for the utility sector, indicating a favorable outlook for investment opportunities in this industry [7]. Core Insights - Electricity demand is expected to grow steadily, while the growth rate of new energy installations is anticipated to slow down. The China Electricity Council predicts that the national electricity consumption for 2026 will be between 10.9 to 11.0 trillion kilowatt-hours, representing a year-on-year increase of 5% to 6% [7]. - The report highlights that the overall balance of electricity supply and demand in 2026 is expected to improve, with a reduction in the risk of electricity shortages. The growth rate of new energy installations is projected to decelerate [7]. - The report suggests that the performance expectations for the utility sector have reached a low point, making low-priced utility assets worth considering for investment [7]. Summary by Sections Electricity Demand and Supply - The report forecasts that the total installed power generation capacity will exceed 400 million kilowatts in 2026, with new energy installations expected to surpass 300 million kilowatts [7]. - The electricity supply-demand situation is projected to be generally balanced, with some regions experiencing tighter balances during peak summer and winter periods [7]. Coal Prices and Inventory - Port coal prices have seen a slight increase, while inventory levels have decreased. The report notes that the port coal price for Q5500 grade coal was 695 RMB/ton, reflecting a week-on-week increase of 0.4% [19]. - The report indicates that coal inventory at major ports has decreased by 5.5% week-on-week, with power plant coal consumption also declining by 12% [28]. Performance of Utility Sector - The utility sector index outperformed the broader market indices, with a 0.2% increase compared to a 1.3% decline in the CSI 300 index [38]. - The report identifies specific stocks within the utility sector that are recommended for investment, including JianTou Energy and Huadian International, among others [7]. Water Resource Management - The report notes a slight decrease in the outflow from the Three Gorges Reservoir, with the average outflow for the week being 8,091 cubic meters per second, which is a 9.8% decrease week-on-week [31].

Investment Rating - The report maintains a "Positive" investment rating for the utility sector, indicating a favorable outlook for investment opportunities [7]. Core Insights - Electricity demand is expected to grow steadily, while the growth rate of new energy installations is anticipated to slow down. The China Electricity Council forecasts that the national electricity consumption for 2026 is projected to be between 10.9 to 11.0 trillion kilowatt-hours, representing a year-on-year increase of 5% to 6% [7]. - The report highlights that the overall balance of electricity supply and demand in 2026 is expected to improve, with a reduction in the risk of electricity shortages. The growth rate of new energy installations is expected to decelerate [7]. - The report suggests that low-interest rates and policies encouraging long-term capital investment make dividend assets in the utility sector attractive for long-term allocation [7]. Summary by Sections Electricity Demand and Supply - The forecast for 2026 includes an expected addition of over 400 million kilowatts in new power generation capacity, with more than 300 million kilowatts coming from new energy sources [7]. - The report indicates that the electricity supply-demand situation will be generally balanced, with some regional tightness during peak summer months [7]. Coal Prices and Inventory - Port coal prices have seen a slight increase, while inventory levels have decreased. The report notes that the coal price at Qinhuangdao for Q5500 grade coal is 695 RMB per ton, reflecting a week-on-week increase of 0.4% [19]. - The report also mentions that coal inventory at major ports has dropped, with Qinhuangdao's coal inventory at 5.55 million tons, down 3.2% week-on-week [28]. Performance of Utility Sector - The utility sector has outperformed the broader market indices, with the Shenwan Utility Index rising by 0.2% compared to a 1.3% decline in the CSI 300 Index [38]. - The report identifies specific stocks within the utility sector that are recommended for investment, including Jiantou Energy and Huadian International, among others [7]. Hydropower and Nuclear Power - The report emphasizes the strong growth potential for hydropower and nuclear power, with hydropower having the lowest cost per kilowatt-hour among all power sources [7]. - It suggests that the commercial model for nuclear power is robust, with a strong long-term growth outlook [7]. Wind and Solar Power - The report notes that under carbon neutrality expectations, wind and solar power still have significant growth potential, and it is advisable to select companies with a high proportion of wind energy [7].