Investment Rating - The report maintains a "Buy" rating for both the A-shares and H-shares of the company [6]. Core Views - The company reported strong performance in Q3 2025, with revenue of $2.382 billion, a year-over-year increase of 9.7% and a quarter-over-quarter increase of 7.8%, exceeding market expectations [1]. - The demand driven by domestic substitution and AI continues to be robust, with the company benefiting from increased market share in various sectors [2]. - The company is expected to accelerate capacity expansion in 2026 due to high utilization rates and ongoing demand [3]. - Profit forecasts for 2025-2027 have been raised, with projected net profits of $735 million, $1.101 billion, and $1.321 billion respectively, reflecting significant growth [4]. Summary by Sections Financial Performance - Q3 2025 revenue was $2.382 billion, with a gross margin of 22%, and net profit of $315 million, exceeding market expectations [1]. - The company expects Q4 2025 revenue to be between $2.38 billion and $2.43 billion, indicating a cautious outlook due to seasonal factors [1]. Demand and Market Trends - The overall demand remains strong, with a supply-demand imbalance leading to increased orders [2]. - The trend of domestic substitution is enhancing the company's order volume and market share, particularly in sectors like analog chips and memory [2]. Capacity and Utilization - The utilization rate in Q3 2025 was 95.8%, with wafer shipments reaching 2.4995 million pieces [3]. - Capital expenditures in Q3 2025 were $2.39 billion, with expectations for continued investment to support capacity expansion [3]. Profitability and Valuation - The report has adjusted profit forecasts upwards for 2025-2027, with corresponding price-to-book ratios of 3.5x for H-shares and 6.2x for A-shares [4][5]. - The projected revenue growth rates for 2025-2027 are 15.7%, 24.8%, and 22.0% respectively [5].

Investment Rating - The report maintains a "Buy" rating for the banking sector, indicating an expected investment return exceeding the market benchmark by over 15% in the next 6-12 months [1]. Core Insights - The banking sector has shown resilience with stable net interest margins and a recovery in profit growth, with net profits for the first three quarters of 2025 reaching 1.87 trillion yuan, reflecting a year-on-year growth rate of approximately 0% [4][5]. - The average capital return rate stands at 8.18%, while the non-performing loan ratio is at 1.52%, slightly increasing by 3 basis points from the previous quarter [4][5]. - The report highlights that the profit growth rate for commercial banks improved by 1.2 percentage points compared to the first half of 2025, with state-owned banks showing the highest growth at 2.3% [5][6]. Summary by Sections Profitability and Performance - In the first three quarters of 2025, the net profit growth for commercial banks was 0%, with state-owned banks, joint-stock banks, city commercial banks, and rural commercial banks showing growth rates of 2.3%, -2.1%, 1.7%, and -7.3% respectively [5][7]. - The net interest margin for the first three quarters remained stable at 1.42%, with a year-on-year decrease of 11 basis points [24][25]. Asset Quality - The overall asset quality remains stable, with the non-performing loan ratio slightly increasing to 1.52% and the provision coverage ratio maintaining above 200% [31][36]. - As of the end of Q3 2025, the non-performing loan balance was 3.52 trillion yuan, with a provision coverage ratio of 207.2% [31][36]. Market Outlook - The report suggests that the banking sector is entering a seasonal "tailwind" period, with expectations of strong performance in the coming months due to high dividend yields and low valuations [38][39]. - The banking index has outperformed the broader market indices, indicating a favorable investment environment [39][40]. Investment Recommendations - The report recommends focusing on large banks with stable fundamentals and good dividend yields, particularly those with strong regional economic resilience and attractive valuation [40][41].

Investment Rating - The report maintains an "Increase" rating for the non-ferrous metals industry, indicating a positive outlook for the sector [6]. Core Insights - The rapid development of data centers in the United States is causing concerns over electricity supply, which presents investment opportunities in the aluminum sector [1]. - In 2024, U.S. electricity generation is projected to be approximately 42.5% of China's, with industrial electricity consumption accounting for 26% of total usage [1]. - The electricity consumption of data centers in the U.S. is expected to rise from 4% of total electricity usage in 2024 to 12% by 2030, indicating significant growth in demand [1]. - U.S. electrolytic aluminum production in 2024 is estimated at 670,000 tons, representing 0.9% of global production, and is significantly lower than the 3.67 million tons produced in 2000 [2][3]. - The electricity cost for producing aluminum in the U.S. is approximately 1.9 times higher than in China, which poses economic challenges for U.S. aluminum producers [3]. Summary by Sections Data Center Electricity Demand - The electricity consumption of data centers in the U.S. is projected to increase significantly, with an estimated 178 TWh in 2024 and 606 TWh by 2030, which will account for 41% of the increase in U.S. electricity demand from 2024 to 2030 [1][3]. U.S. Aluminum Production - The U.S. electrolytic aluminum production capacity is concentrated in a few plants, with total production expected to be 670,000 tons in 2024, a drastic decline from 3.67 million tons in 2000 due to rising electricity costs [2]. Investment Recommendations - The report recommends investing in companies such as Yun Aluminum, China Hongqiao, and Shenhuo Co., while keeping an eye on China Aluminum and Zhongfu Industrial, as the demand for aluminum is expected to rise due to data center growth [4].

Report Summary 1. Industry Investment Rating There is no information about the industry investment rating in the report. 2. Core View The convertible bond market rose slightly this week while the equity market declined. Since the beginning of 2025, both the convertible bond market and the equity market have been on an upward trend, but the convertible bond market has underperformed the equity market. Currently, the issuance of new convertible bonds has not accelerated significantly, demand remains strong, high - quality convertible bonds are scarce, and prices are relatively high. Fine - tuned bond selection is needed, and it is recommended to comprehensively consider bond terms and underlying stock conditions, diversify investments, and balance risks and returns [4]. 3. Summary by Directory Market行情 - From November 10 to November 14, 2025 (5 trading days), the CSI Convertible Bond Index rose by +0.52% (last week's increase was +0.86%), and the CSI All - Share Index decreased by - 0.53% (last week's increase was +0.63%). Since the beginning of 2025, the CSI Convertible Bond Index has risen by +18.61%, and the CSI All - Share Index has risen by +23.61% [1]. - By bond rating, high - rated bonds (AAA), medium - high - rated bonds (AA+), medium - rated bonds (AA), medium - low - rated bonds (AA -), and low - rated bonds (AA - and below) rose by - 0.61%, - 0.38%, +0.56%, - 0.09%, and +0.17% respectively this week, with medium - rated bonds having the highest increase [1]. - By convertible bond size, large - scale convertible bonds (bond balance > 2 billion yuan), medium - large - scale convertible bonds (balance between 1.5 and 2 billion yuan), medium - scale convertible bonds (balance between 1 and 1.5 billion yuan), small - medium - scale convertible bonds (balance between 0.5 and 1 billion yuan), and small - scale convertible bonds (balance < 0.5 billion yuan) rose by - 0.41%, - 0.88%, +0.83%, +0.10%, and +0.32% respectively this week, with medium - scale convertible bonds having the highest increase [2]. - By conversion parity, ultra - high - parity bonds (conversion value > 130 yuan), high - parity bonds (conversion value between 120 and 130 yuan), medium - high - parity bonds (conversion value between 110 and 120 yuan), medium - parity bonds (conversion value between 100 and 110 yuan), medium - low - parity bonds (conversion value between 90 and 100 yuan), low - parity bonds (conversion value between 80 and 90 yuan), and ultra - low - parity bonds (conversion value < 80 yuan) rose by - 3.78%, +1.54%, - 0.64%, - 0.22%, +0.52%, +0.96%, and +0.30% respectively this week, with high - parity bonds having the highest increase [2]. Convertible Bond Valuation - As of November 14, 2025, there were 412 outstanding convertible bonds (411 at the end of last week), with a balance of 566.85 billion yuan (569.538 billion yuan at the end of last week). The average convertible bond price was 133.30 yuan (132.07 yuan at the end of last week), with a percentile of 99.28% (from the beginning of 2023 to November 14, 2025). The average conversion parity was 105.52 yuan (105.90 yuan at the end of last week), with a percentile of 95.81%. The average conversion premium rate was 27.12% (27.07% at the end of last week), with a percentile of 18.21% [3]. Convertible Bond Performance and Allocation Direction - The convertible bond market rose slightly this week while the equity market declined. Since the beginning of 2025, both markets have risen, but the convertible bond market has underperformed. With no obvious acceleration in new bond issuance, strong demand, and high scarcity of high - quality bonds, and relatively high market prices, fine - tuned bond selection is needed. It is recommended to comprehensively consider bond terms and underlying stock conditions, diversify investments, and balance risks and returns [4]. Convertible Bond Increase Ranking - The top 15 convertible bonds with the highest increases this week include Guocheng Convertible Bond (31.44%), Dazhong Convertible Bond (28.89%), Dongshi Convertible Bond (20.41%), etc. [22]

Investment Rating - The report maintains an "Accumulate" rating for the copper industry [6]. Core Viewpoints - Short-term copper prices are expected to fluctuate, but there is optimism for an upward trend due to demand recovery. As of November 14, 2025, SHFE copper closed at 86,900 CNY/ton, up 1.12% from November 7, and LME copper closed at 10,846 USD/ton, up 1.41% [1]. - Supply remains tight as Freeport has reduced copper production for 2025-2026, while cable companies are seeing a recovery in operating rates amid rising copper prices. The demand-supply balance is expected to remain tight, supporting further price increases [1][4]. Summary by Sections Inventory - Domestic copper social inventory decreased by 1.1%, while LME copper inventory fell by 0.4%. As of November 14, 2025, domestic port copper concentrate inventory was 648,000 tons, up 2.9% from the previous week [2][26]. - Global electrolytic copper inventory totaled 621,000 tons as of November 10, 2025, up 2.5% from November 3. LME copper global inventory was 136,000 tons, down 0.4% [2][26]. Supply - The price difference between refined and scrap copper increased by 500 CNY/ton this week, reaching 3,488 CNY/ton as of November 14, 2025 [2][55]. - China's copper concentrate production in July 2025 was 138,000 tons, down 6.3% month-on-month and 1.6% year-on-year [2][47]. Smelting - The TC spot price decreased by 0.5 USD/ton this week, with the current TC spot price at -41.82 USD/ton, the lowest since September 2007 [3][62]. - China's electrolytic copper production in October 2025 was 1.0916 million tons, down 2.6% month-on-month but up 9.6% year-on-year [3][67]. Demand - Cable companies' operating rates increased by 0.9 percentage points this week, reaching 64.36% as of November 13, 2025 [3][76]. - Air conditioning production is expected to decline year-on-year by 23.7% in November, 12.8% in December, but improve by 16.1% in January 2026 [3][94]. Futures - SHFE copper active contract positions decreased by 6% this week, with a total position of 192,000 lots as of November 14, 2025 [4][33]. Investment Recommendations - The report suggests that with tightening supply and improving demand, copper prices are likely to continue rising. Recommended stocks include Zijin Mining, Western Mining, Luoyang Molybdenum, and Jincheng Mining, with a focus on Tongling Nonferrous Metals [4][5].

Quantitative Models and Construction Methods 1. Model Name: PB-ROE-50 Combination - **Model Construction Idea**: The PB-ROE-50 combination is constructed based on the principle of selecting stocks with low price-to-book (PB) ratios and high return on equity (ROE), aiming to capture value and profitability factors[25] - **Model Construction Process**: - Stocks are selected based on their PB and ROE metrics - The portfolio is rebalanced periodically to maintain the desired exposure to these factors - The construction details are referenced in earlier reports[25][26] - **Model Evaluation**: The model experienced a drawdown in excess returns across all stock pools during the week, indicating potential short-term underperformance[25] --- Model Backtesting Results 1. PB-ROE-50 Combination - **Excess Return**: - CSI 500: -0.23% this week, 2.92% year-to-date - CSI 800: -0.98% this week, 15.82% year-to-date - Full Market: -1.39% this week, 18.21% year-to-date[26] - **Absolute Return**: - CSI 500: -1.49% this week, 30.06% year-to-date - CSI 800: -2.10% this week, 38.80% year-to-date - Full Market: -1.91% this week, 46.11% year-to-date[26] --- Quantitative Factors and Construction Methods 1. Factor Name: Residual Volatility Factor - **Factor Construction Idea**: Captures the residual volatility of stocks after controlling for market and sector effects, aiming to identify stocks with stable performance[20] - **Factor Construction Process**: - Calculate the residual volatility of stock returns after regressing against market and sector returns - Rank stocks based on their residual volatility and construct a portfolio with the desired exposure[20] - **Factor Evaluation**: The factor delivered positive returns this week, indicating its effectiveness in capturing stable stocks during the period[20] 2. Factor Name: Leverage Factor - **Factor Construction Idea**: Measures the financial leverage of companies, aiming to capture the risk-return tradeoff associated with leverage[20] - **Factor Construction Process**: - Calculate the leverage ratio of companies (e.g., debt-to-equity ratio) - Rank stocks based on their leverage and construct a portfolio with the desired exposure[20] - **Factor Evaluation**: The factor delivered positive returns this week, suggesting its relevance in the current market environment[20] 3. Factor Name: Beta Factor - **Factor Construction Idea**: Measures the sensitivity of a stock's returns to market returns, aiming to capture systematic risk[20] - **Factor Construction Process**: - Calculate the beta of stocks using historical return data - Rank stocks based on their beta and construct a portfolio with the desired exposure[20] - **Factor Evaluation**: The factor delivered negative returns this week, indicating underperformance in the current market environment[20] 4. Factor Name: Size Factor - **Factor Construction Idea**: Captures the size effect by focusing on small-cap stocks, which tend to outperform large-cap stocks over time[20] - **Factor Construction Process**: - Rank stocks based on their market capitalization - Construct a portfolio with a tilt towards smaller-cap stocks[20] - **Factor Evaluation**: The factor delivered negative returns this week, despite the general preference for small-cap stocks in the market[20] 5. Factor Name: Momentum Factor - **Factor Construction Idea**: Captures the momentum effect by focusing on stocks with strong recent performance[20] - **Factor Construction Process**: - Calculate the past returns of stocks over a specific period (e.g., 6 months or 12 months) - Rank stocks based on their momentum and construct a portfolio with the desired exposure[20] - **Factor Evaluation**: The factor delivered negative returns this week, indicating a reversal effect in the market[20] --- Factor Backtesting Results 1. Residual Volatility Factor - Weekly Return: 0.50%[20] 2. Leverage Factor - Weekly Return: 0.36%[20] 3. Beta Factor - Weekly Return: -1.10%[20] 4. Size Factor - Weekly Return: -0.92%[20] 5. Momentum Factor - Weekly Return: -0.70%[20]

Report Industry Investment Rating No information about the report industry investment rating is provided in the given content. Core Viewpoints - From November 10 to November 14, 2025, the secondary - market prices of China's listed public REITs showed a fluctuating upward trend, with the weighted REITs index closing at 184.03 and a weekly return rate of 0.95%. Among mainstream asset classes, REITs ranked second in terms of return rate after gold [1][11]. - In terms of project attributes, both property - right and franchise - type REITs saw price increases this week. In terms of underlying asset types, affordable housing - type REITs had the largest increase [1][16]. - The total trading volume of public REITs this week was 2.84 billion yuan, and the water conservancy facilities - type REITs led in the average daily turnover rate during the period. The total net inflow of main funds was - 51.39 million yuan, indicating a decrease in market trading enthusiasm compared to last week [2][31]. - This week, there were no new REITs products listed, and no project status was updated [4][39][43]. Summary by Related Catalogs Secondary Market Price Trends - **At the large - scale asset level**: The secondary - market prices of listed public REITs in China showed a fluctuating upward trend. The China Securities REITs (closing) and China Securities REITs total return indexes closed at 818.17 and 1050.45 respectively, with weekly return rates of 0.82% and 0.86%. The weighted REITs index closed at 184.03, with a weekly return rate of 0.95%. Among mainstream asset classes, the return rate ranking from high to low was: gold > REITs > convertible bonds > pure bonds > US stocks > A - shares > crude oil [11]. - **At the underlying asset level**: Both property - right and franchise - type REITs' secondary - market prices increased. The weighted index of property - right REITs closed at 155.98, with a return rate of 0.86%; the weighted index of franchise - type REITs closed at 131.53, with a return rate of 1.29%. In terms of underlying asset types, affordable housing - type REITs had the largest increase, and the top three in terms of return rate were affordable housing - type, transportation infrastructure - type, and consumer - type REITs, with weighted indexes closing at 139.6, 101.28, and 173.54 respectively, and return rates of 1.57%, 1.55%, and 1.17% [16][18]. - **At the single - REIT level**: This week, public REITs showed mixed performance, with 56 rising, 1 remaining flat compared to last week, and 20 falling. The top three in terms of increase were CICC Liandong Science and Technology Innovation REIT, CICC Shandong Expressway REIT, and China Merchants Fund Shekou Rental Housing REIT, with increases of 6.24%, 5.18%, and 4.1% respectively. The top three in terms of decrease were Huatai Nanjing Jianye REIT, CICC Chongqing Liangjiang REIT, and Huaxia Heda High - tech REIT, with decreases of 6.58%, 5.21%, and 2.34% respectively [23]. Transaction Volume and Turnover Rate - **At the underlying asset level**: The transaction volume of public REITs this week was 2.84 billion yuan, and the water conservancy facilities - type REITs led in the average daily turnover rate during the period. The total turnover of the 77 listed REITs this week was 2.84 billion yuan, and the average daily turnover rate during the period was 0.67%. In terms of turnover, the top three in terms of underlying asset types were park infrastructure, transportation infrastructure, and consumer infrastructure, with turnovers of 6.24, 5.15, and 4.05 billion yuan respectively. In terms of turnover rate, the top three were water conservancy facilities, new - type infrastructure, and park infrastructure, with turnover rates of 1.46%, 1.04%, and 0.73% respectively [24]. - **At the single - REIT level**: This week, the performance of single - REIT transaction volume and turnover rate continued to be differentiated. The top three in terms of trading volume were Huaxia Hefei High - tech REIT, Huaxia Fund China Resources Youchao REIT, and Hongtu Innovation Yantian Port REIT, with trading volumes of 0.73, 0.29, and 0.23 billion shares respectively. In terms of turnover, the top three were Huaxia Hefei High - tech REIT, Huaxia Fund China Resources Youchao REIT, and CICC Anhui Expressway REIT [27]. Main Fund Inflow and Block Trading - **Main fund inflow situation**: The total net inflow of main funds this week was - 51.39 million yuan, and the market trading enthusiasm decreased compared to last week. In terms of different underlying asset REITs, the top three in terms of net inflow of main funds during the week were consumer infrastructure, water conservancy facilities, and affordable rental housing. In terms of single - REIT, the top three were Yin Hua Shaoxing Raw Water Water Conservancy REIT, China Merchants Fund Shekou Rental Housing REIT, and Huaxia China Overseas Commercial REIT [31]. - **Block trading situation**: The total block trading volume this week reached 1.01086 billion yuan, an increase compared to last week. There were block trading transactions on 5 trading days this week, with a total block trading turnover of 1.01086 billion yuan. The block trading turnover on Wednesday (November 12, 2025) was the highest during the period, reaching 300.82 million yuan. In terms of single - REIT, the top three in terms of block trading turnover were CITIC Construction Investment State Power Investment New Energy REIT, CICC Anhui Expressway REIT, and Huaxia China Communications Construction REIT [32]. Primary Market Listed Projects - As of November 14, 2025, the number of public REITs products in China reached 77, with a total issuance scale of 19.9301 billion yuan. In terms of underlying asset types, the transportation infrastructure - type had the largest issuance scale, reaching 6.8771 billion yuan, followed by the park infrastructure - type REITs, with an issuance scale of 3.2933 billion yuan [38]. - This week, there were no new REITs products listed [39]. Projects to be Listed - According to the project dynamic disclosures of the Shanghai Stock Exchange and the Shenzhen Stock Exchange, there were 17 REITs in the to - be - listed state, including 10 first - issuance REITs and 7 to - be - expanded REITs [42]. - This week, no project status was updated [43].

Report Industry Investment Rating - Not mentioned in the report Core Viewpoints - From November 10 to November 14, 2025, the issuance volume of credit bonds increased month - on - month, and the industry credit spreads showed mixed trends [1] Summary by Directory 1. Primary Market 1.1 Issuance Statistics - From November 10 to November 14, 2025, 330 credit bonds were issued, with a total issuance scale of 455.379 billion yuan, a month - on - month increase of 25.31% [1][11] - In terms of issuance scale, 161 industrial bonds were issued, with a scale of 169.68 billion yuan, a 4.09% month - on - month decrease, accounting for 37.26% of the total credit bond issuance scale; 122 urban investment bonds were issued, with a scale of 81.729 billion yuan, a 19.25% month - on - month decrease, accounting for 17.95% of the total scale; 47 financial bonds were issued, with a scale of 203.97 billion yuan, a 139.20% month - on - month increase, accounting for 44.79% of the total scale [1][11] - In terms of issuance term, the average issuance term of credit bonds was 2.75 years. The average issuance term of industrial bonds was 2.25 years, urban investment bonds was 3.51 years, and financial bonds was 2.13 years [1][15] - In terms of issuance coupon rate, the average issuance coupon rate of credit bonds was 2.12%. The average issuance coupon rate of industrial bonds was 2.06%, urban investment bonds was 2.26%, and financial bonds was 1.94% [2][19] 1.2 Cancellation of Issuance Statistics - Two credit bonds cancelled issuance this week, namely "25 Huadian Jiangsu SCP027" and "25 Xingmei 01" [3][24] 2. Secondary Market 2.1 Credit Spread Tracking - This week, industry credit spreads showed mixed trends. Among Shenwan primary industries, the largest upward movement in AAA - rated industry credit spreads was in agriculture, forestry, animal husbandry and fishery, up 6.5BP, and the largest downward movement was in steel, down 3.5BP; for AA + - rated industry credit spreads, the largest upward movement was in electronics, up 1.4BP, and the largest downward movement was in the automobile industry, down 16.6BP; for AA - rated industry credit spreads, the largest upward movement was in transportation, up 0.9BP, and the largest downward movement was in mining, down 3.9BP [3][26] - For urban investment bonds by region, among AAA - rated bonds, the largest upward movement in credit spreads was in Zhejiang, up 3BP, and the largest downward movement was in Yunnan, down 10.2BP; for AA + - rated bonds, the largest upward movement was in Fujian, up 2.6BP, and the largest downward movement was in Yunnan, down 10.6BP; for AA - rated bonds, the largest upward movement was in Chongqing, up 3.1BP, and the largest downward movement was in Henan, down 5.7BP [3][29] 2.2 Trading Volume Statistics - The total trading volume of credit bonds was 1219.783 billion yuan, a 5.53% month - on - month decrease. The top three in terms of trading volume were commercial bank bonds, corporate bonds, and medium - term notes. Specifically, the trading volume of commercial bank bonds was 375.608 billion yuan, a 3.93% month - on - month increase, accounting for 30.79% of the total credit bond trading volume; the trading volume of corporate bonds was 414.081 billion yuan, a 7.86% month - on - month decrease, accounting for 33.95% of the total volume; the trading volume of medium - term notes was 243.078 billion yuan, a 16.01% month - on - month decrease, accounting for 19.93% of the total volume [4][30] 2.3 Active Bonds Traded This Week - The report selects the top 20 urban investment bonds, industrial bonds, and financial bonds in terms of trading volume this week for investors' reference, including information such as bond codes, names, trading volumes, average trading yields, and issuers [32][33][34]

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - The main economic indicators in October 2025 showed a decline, including industrial production, fixed - asset investment, and social consumption [1][2]. - In the bond market, investors should gradually become more optimistic, with a short - to - long duration strategy for interest - rate bonds and a focus on structural opportunities for convertible bonds [3]. 3. Summary According to the Directory 3.1 Event - On November 14, 2025, the National Bureau of Statistics released the economic data for October 2025, including industrial added value, fixed - asset investment, and social consumption data [1][6]. 3.2 Economic Data Analysis 3.2.1 Industrial Production - In October 2025, the year - on - year growth rate of industrial added value above a designated size was 4.9%, down 1.6 percentage points from September. The month - on - month growth rate was + 0.17%, the lowest of the year and lower than the same period in 2023 and 2024 [2][6]. - The decline in the year - on - year growth rate of industrial added value was mainly due to the decrease in the mining and manufacturing sectors, while the production and supply of electricity, heat, gas, and water increased [7]. 3.2.2 Fixed - Asset Investment - From January to October 2025, the cumulative year - on - year growth rate of fixed - asset investment was - 1.7%, continuing the downward trend. The month - on - month growth rate in October was - 1.62%, with an expanding decline [2][14]. - The cumulative year - on - year growth rates of real estate, manufacturing, and general infrastructure investment all decreased. Real estate investment remained weak, and manufacturing and infrastructure investment weakened from their high levels at the beginning of the year [18]. 3.2.3 Social Consumption - In October 2025, the year - on - year growth rate of social consumption was 2.9%, slightly lower than the previous month. The month - on - month growth rate was + 0.16%, turning positive but weaker than the seasonal average [2][21]. - Among consumer goods, the year - on - year growth rate of essential consumption increased. Among optional consumption, the decline in automobile and home appliance consumption was significant, while optional consumption such as gold, silver, and jewelry, and communication equipment still performed well. The year - on - year growth rate of catering consumption increased significantly [21]. 3.3 Bond Market View 3.3.1 Interest - Rate Bonds - Since August 2025, the yield of treasury bonds has shown a significant divergence. The short - end yield fluctuated little, while the long - end yield first increased and then decreased. By November 13, the 10 - year and 30 - year treasury bond yields had decreased by 9bp and 13bp respectively from their previous highs [3][27]. - Given the current loose liquidity, investors should be more optimistic about the bond market. The duration selection can be from short to long, and the view that the fluctuation center of the 10 - year treasury bond yield is 1.7% is maintained [3][28]. 3.3.2 Convertible Bonds - As of November 13, 2025, the increase and decrease of the CSI Convertible Bond Index was + 19.3%, and that of the CSI All - Index was + 25.3%. The convertible bond market underperformed the equity market. Since late October, the convertible bond market has seen a new round of growth [3][36]. - In the context of the slow - bull expectation of the equity market and the difficult - to - change pattern of strong demand over supply in the convertible bond market, convertible bonds are still relatively high - quality assets in the long run, and more attention should be paid to the structure [36].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [6] Core Insights - Tencent Holdings reported Q3 2025 revenue of 192.9 billion yuan, a year-on-year increase of 15.4%, exceeding Bloomberg consensus expectations by 2.15% [1] - Non-IFRS operating profit reached 72.6 billion yuan, surpassing consensus by 0.58%, with an operating margin of 37.6% [1] - Non-IFRS net profit was 70.6 billion yuan, exceeding expectations by 6.84%, with a net profit margin of 36.6%, up 0.8 percentage points year-on-year [1] Summary by Sections Gaming - Q3 2025 gaming revenue was 63.6 billion yuan, a year-on-year increase of 22.8%, exceeding consensus by 5.21% [2] - Domestic gaming revenue was 42.8 billion yuan, up 14.7% year-on-year, surpassing expectations by 1.26% [2] - Overseas gaming revenue reached 20.8 billion yuan, a significant year-on-year increase of 43.4%, exceeding expectations by 14.8% [2] Advertising and Enterprise Services - Marketing services revenue for Q3 2025 was 36.2 billion yuan, a year-on-year increase of 20.8%, exceeding consensus by 1.81% [2] - Financial technology and enterprise services revenue was 58.2 billion yuan, up 9.6% year-on-year, slightly exceeding expectations by 0.07% [2] Capital Expenditure and AI Strategy - Capital expenditure for Q3 2025 was 13 billion yuan, down 24% year-on-year, below expectations by 43.9% [3] - The company is increasing AI R&D investment, with Q3 2025 R&D expenses reaching a historical high [3] - The report highlights a clear long-term AI strategy, focusing on the integration of AI agents with the social ecosystem [3] Profit Forecast, Valuation, and Rating - The report raises the Non-IFRS net profit forecasts for 2025-2027 to 265.8 billion, 298.4 billion, and 335.1 billion yuan, respectively, reflecting increases of 4.0%, 3.5%, and 4.0% from previous estimates [3] - The target price is raised to 741 HKD, with a current price of 656 HKD, indicating a favorable valuation [3]