Core Insights - The report highlights a bullish outlook for the A-share and Hong Kong stock markets, with specific stock recommendations for August 2025 [2] - The AI computing demand in the US is expanding into emerging markets, driven by reduced costs of large models, indicating a significant market opportunity for AI applications [3] - The real estate sector has outperformed the market recently, with notable gains in leading companies, suggesting a focus on quality stocks for potential alpha opportunities [4] - The petrochemical industry is expected to benefit from supply-side reforms and the exit of outdated facilities, leading to an improved market structure [5] - The company, Adebiotech, reported strong financial performance in H1 2025, with significant growth in revenue and net profit, indicating a positive trajectory for future earnings [6] Summary by Sections A-Share and Hong Kong Stock Market - The A-share market saw a 7.8% increase from July 1 to July 25, outperforming the CSI 300 index by 2.93 percentage points [4] - Recommended stocks include Dongfang Caifu, Hainan Huatie, Huayou Cobalt, and others for A-shares, and China Life, Xinhua Insurance, Tencent, and Alibaba for Hong Kong stocks [2] AI Industry - The demand for AI computing in the US is growing, particularly in IT operations, cybersecurity, and databases, with a favorable long-term outlook due to a relaxed financing environment and regulatory conditions [3] Real Estate Sector - Leading real estate companies such as New Town Holdings and China Jinmao have shown significant stock price increases, with recommendations to focus on these quality leaders for investment [4] Petrochemical Industry - The report suggests that the petrochemical sector is poised for recovery as outdated production facilities are phased out, with key companies like Tongkun and Hengli Petrochemical recommended for investment [5] Company Performance - Adebiotech achieved a revenue of 579 million yuan in H1 2025, a year-on-year increase of 6.69%, and a net profit of 189 million yuan, reflecting a substantial growth of 31.41% [6] - Future net profit projections for Adebiotech are 343 million, 380 million, and 427 million yuan for 2025, 2026, and 2027 respectively, with a current PE ratio forecasted at 28, 25, and 23 times [6]

Investment Rating - The report maintains an "Overweight" rating for the petrochemical and chemical fiber industry [1] Core Insights - The report highlights that the supply-side clearing pattern is improving, and the industry is awaiting a recovery in prosperity [1] - The report emphasizes the ongoing elimination and upgrading of outdated chemical facilities, which is expected to stabilize the supply side of the industry [4] - The polyester filament industry is experiencing a continuous increase in concentration, with leading companies likely to benefit from the recovery in industry prosperity [5][7] Summary by Sections Industry Overview - The chemical industry is undergoing a phase of eliminating outdated facilities, with a focus on safety and efficiency improvements. A plan has been issued for the period from 2024 to 2029 to phase out non-compliant production facilities and upgrade existing ones [4] - The domestic refining capacity is expected to be maintained at around 1 billion tons, with a target utilization rate of over 80% for major products by 2025 [4] Polyester Filament Sector - The domestic polyester filament capacity has grown from 33.28 million tons in 2019 to 43.16 million tons in 2023, with an annual growth rate of 5%. The growth rate is expected to slow down significantly due to high oil prices and weakened supply-demand dynamics [5] - The industry is shifting from extensive expansion to refined operations, with a focus on high-value-added products, which is expected to enhance the market competitiveness of leading companies [5][7] Investment Recommendations - The report suggests focusing on leading companies in the "refining-chemical fiber" sector, including Tongkun Co., Ltd., Xinfengming Group, Hengli Petrochemical, Rongsheng Petrochemical, Hengyi Petrochemical, and Dongfang Shenghong, as they are expected to benefit from the ongoing industry recovery [8]

Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Insights - The company reported strong performance in H1 2025, with revenue of 579 million yuan, a year-on-year increase of 6.69%, and a net profit attributable to shareholders of 189 million yuan, up 31.41% year-on-year [1][2]. - The core business of testing reagents generated revenue of 483 million yuan, reflecting a growth of 7.93% and accounting for 83.4% of total revenue, with a gross margin of 90.72% [2]. - The company is expanding its international presence, with significant progress in product registration and market access in regions such as Southeast Asia, the Middle East, and Latin America [3]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 579 million yuan, with a net profit of 189 million yuan, and a net profit excluding non-recurring items of 185 million yuan, marking a growth of 39.97% [1][2]. - The revenue from domestic sales was 442 million yuan, up 7.11%, while international sales reached 137 million yuan, growing by 5.36% [2]. Product Development - The company invested 90.5 million yuan in R&D, representing 15.63% of its revenue, and received two new Class III medical device registrations, bringing the total to 32 [3]. - Five products are currently under review, with three included in innovation or priority approval processes [3]. Profit Forecast and Valuation - The profit forecast for 2025-2026 has been revised upwards to 343 million yuan and 380 million yuan, respectively, reflecting an increase of 11.2% and 4.7% from previous estimates [4]. - The current price corresponds to a PE ratio of 28 for 2025, 25 for 2026, and 23 for 2027 [4].

Group 1 - The A-share and Hong Kong stock markets showed signs of recovery in July, with major indices generally rising, driven by improved market sentiment and policy catalysts. The ChiNext index had the highest increase of 8.7%, while the Shanghai Composite Index had the smallest increase of 3.1% [1][8] - The steel, construction materials, and non-ferrous metals sectors performed well due to ongoing anti-involution policies and infrastructure projects like the Yajiang Hydropower Station [1][8] - The Hong Kong stock market experienced a steady upward trend, with the Hang Seng Technology Index rising by 7.1% and the Hang Seng Index by 5.5% as of July 25, 2025 [1][10] Group 2 - The A-share market is expected to reach new highs in the second half of the year, transitioning from policy-driven to fundamentals and liquidity-driven growth, with potential to surpass the peak of the second half of 2024 [2][12] - Focus on sectors benefiting from anti-involution policies, including coal, steel, photovoltaic, and construction materials, as well as opportunities in electronics and machinery equipment [2][13] - The market is anticipated to exhibit a "rotation and rebound" characteristic, with attention on industries that have lagged behind but have shown strong historical performance [2][13] Group 3 - The Hang Seng Index has surpassed previous highs and is expected to continue its upward trend, supported by strong profitability in the Hong Kong market and low valuations in sectors like internet, new consumption, and innovative pharmaceuticals [3][19] - The "dumbbell" strategy is recommended, focusing on technology growth and high dividend yield sectors, including telecommunications, utilities, and banking [3][19] - Key stocks for August 2025 in the A-share market include Dongfang Caifu, Hainan Huatie, and Huayou Cobalt, while the Hong Kong stock recommendations include China Life, Xinhua Insurance, and Tencent Holdings [3][24][28]

2025 年 7 月 29 日 行业研究 《价格法》修正草案征求意见，反内卷政策持续深化落实 ——建材、建筑及基建公募 REITs 周报（7 月 19 日-7 月 25 日） 要点 《价格法》修正草案征求意见，反内卷相关政策持续深化落实。24 年 7 月中央 政治局会议首次提出防止"内卷式"恶性竞争以来，相关政策持续深化落实。24 年 12 月中央经济工作会议亦提出综合整治"内卷式"竞争，规范地方政府和企 业行为；25 年 3 月政府工作报告指明要综合整治"内卷式"竞争；7 月 1 日中 财委第六次会议再次强调，依法依规治理企业低价无序竞争，引导企业提升产品 品质，推动落后产能有效退出；在 7 月 16 日-17 日中央企业负责人研讨班上， 国资委提出国资央企要超越内卷竞争维护产业价值；7 月 18 日国新办新闻发布 会上，工信部表示，近期将陆续发布新一轮钢铁、有色金属、石化、建材等十大 重点行业稳增长具体工作方案，推动重点行业着力调结构、优供给、淘汰落后产 能；在 7 月 23 日-24 日地方国资委负责人研讨班上，国资委强调要带头抵制"内 卷式"竞争，加强重组整合；7 月 24 日《中华人民共和国价格法修 ...

Investment Rating - The report maintains a "Buy" rating for key companies in the real estate development sector, including Poly Developments, China Merchants Shekou, and Binjiang Group, while also giving a "Buy" rating to China Overseas Development, China Resources Land, and China Jinmao in the H-share sector [37][71]. Core Insights - The real estate sector has shown resilience, with the real estate (Shenwan) index rising by 7.8% from July 1 to July 25, 2025, outperforming the CSI 300 index by 2.93 percentage points [29][37]. - The report highlights a structural alpha opportunity in the real estate sector, particularly for leading companies with strong brand recognition and product reputation, despite a weak beta performance overall [4][65]. - The report emphasizes the importance of urban renewal and structural optimization in high-capacity core cities, which are expected to benefit from ongoing real estate policies [70][71]. Summary by Sections Real Estate Development Sector Valuation and Key Companies - As of July 25, 2025, the real estate (Shenwan) price-to-earnings (P/E) ratio is 42.93, with a historical percentile of 99.45% [11][20]. - The top-performing A-share real estate companies from July 1 to July 25, 2025, include New Town Holdings (+12.2%), China Merchants Shekou (+9.3%), and JinDi Group (+7.4%) [29][31]. Property Services Sector Valuation and Key Companies - The real estate services (Shenwan) P/E ratio is 46.73, with a historical percentile of 86.21% as of July 25, 2025 [2][40]. - The top-performing A-share property service companies during the same period are TeFa Service (+10.4%), World Union (+9.2%), and Ningbo Fuda (+5.9%) [51][55]. Public Fund Holdings in Real Estate Sector - As of the end of Q2 2025, public funds held a total market value of approximately 484.4 billion yuan in real estate stocks, representing a decrease from 548.4 billion yuan at the end of Q1 2025 [3][63]. Market Trends and Sales Performance - In the first half of 2025, the sales amount for commodity residential properties in major cities increased by 6.0%, while the overall sales amount for the top 100 real estate companies decreased by 11.4% [4][66]. - The report notes a significant increase in land transaction prices and areas in key cities, indicating a potential recovery in the real estate market [67][70]. Investment Recommendations - The report suggests focusing on three main lines for investment: stable leading companies with high product reputation, companies with rich existing resources, and the long-term growth potential of the property services sector [71][70].

Group 1: Agricultural Chemicals Industry - The China Pesticide Industry Association has initiated a "Correcting Wind and Treating Volume" action, which is expected to enhance the industry's prosperity [1] - Recommended companies in the agricultural chemicals sector include: raw materials - Yangnong Chemical, Lier Chemical, Xingfa Group, Xin'an Chemical, Jiangshan Chemical, Changqing Chemical, and Xianda Chemical; formulations - Andon Health, Runfeng Co., Guoguang Co., and Nuofushin [1] Group 2: Real Estate Market - As of July 27, 2025, the cumulative transaction of new homes in 20 cities reached 454,000 units, a decrease of 3.8% year-on-year; Beijing saw 24,000 units (-9%), Shanghai 58,000 units (+1%), and Shenzhen 18,000 units (+4%) [2] - The cumulative transaction of second-hand homes in 10 cities reached 451,000 units, an increase of 12.3% year-on-year; Beijing recorded 99,000 units (+12%), Shanghai 147,000 units (+19%), and Shenzhen 40,000 units (+29%) [2] Group 3: Pharmaceutical Company - The company has entered a significant partnership with GSK, granting global exclusive rights for HRS-9821 and up to 11 projects, excluding certain regions, for a payment of $500 million upfront, with potential milestone payments of $12 billion and sales sharing [3] - This collaboration opens up international sales opportunities for the company and strengthens its position as a leader in innovative pharmaceuticals [3] Group 4: Beverage Industry - The company reported a revenue of 10.737 billion yuan for the first half of 2025, representing a year-on-year growth of 36.4%; net profit attributable to shareholders was 2.375 billion yuan, up 37.2% [4] - The forecast for net profit attributable to shareholders for 2025-2027 is adjusted to 4.553 billion, 5.801 billion, and 7 billion yuan, respectively, with corresponding EPS of 8.76, 11.16, and 13.46 yuan [4] - The current stock price corresponds to a PE ratio of 33x for 2025, maintaining a "buy" rating [4]

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report In Q2 2025, the convertible bond market generally followed the trend of the equity market, with the convertible bond index rising. However, the scale of convertible bonds held by funds decreased, and the convertible bonds of the banking industry were significantly reduced. Different types of funds showed different trends in holding convertible bonds, and the performance of convertible bond funds was stronger than that of the Wind All - A Index and the CSI Convertible Bond Index [2][3][4]. 3. Summary According to the Directory 3.1 2025 Q2 Market Review - Most major market indices rose, except for the Shenzhen Component Index. The Shanghai Composite Index rose 2.8%, the Shenzhen Component Index fell 1.3%, the ChiNext Index rose 1.2%, the Wind All - A Index rose 3.0%, and the CSI Convertible Bond Index rose 3.3%. The convertible bond market generally followed the trend of the equity market, and the conversion premium rate decreased from 46.58% on April 1 to 44.09% on June 30 [2][14]. 3.2 Fund Holding Convertible Bond Behavior Analysis 3.2.1 Fund Holding Convertible Bond Total Scale Change - As of the end of Q2 2025, the balance of the convertible bond market was 660.618 billion yuan, a decrease of 40.389 billion yuan from the end of the previous quarter. The scale of convertible bonds held by funds was 272.825 billion yuan, a decrease of 9.457 billion yuan from the end of the previous quarter, a year - on - year decrease of 1.21% and a quarter - on - quarter decrease of 3.35%. The proportion of the market value of convertible bonds held by funds to the balance of the convertible bond market was 41.30%, an increase of 1.03 percentage points compared with Q1 2025 [16][17]. 3.2.2 Various Types of Funds Holding Convertible Bond Scale Change - In Q2 2025, the secondary hybrid bond funds held the largest scale of convertible bonds, with a market value of 8.5867 billion yuan, followed by the primary hybrid bond funds with a market value of 7.2656 billion yuan. The secondary hybrid bond funds reduced their holdings of convertible bonds by 8.14 billion yuan, while the primary hybrid bond funds increased their holdings by 6.05 billion yuan [23][29]. 3.2.3 Fund Positioning Behavior Analysis - **Industry Distribution**: The convertible bonds of the banking sector were still the main allocation direction of funds. In Q2 2025, the top five industries with the largest scale of convertible bonds held by funds were banking, power equipment, basic chemicals, electronics, and non - ferrous metals. The convertible bonds of the banking industry were significantly reduced by over 14 billion yuan, while those of basic chemicals, non - banking finance, electronics, automotive, and pharmaceutical biology industries were increased by over 500 million yuan [37][40]. - **Individual Bond Distribution**: At the end of Q2 2025, among the top 5 convertible bonds held by funds, 4 were bank - related convertible bonds. The Bank of Shanghai Convertible Bond was the individual bond with the largest increase in holdings, followed by the Hebang Convertible Bond [45][47]. - **Rating Situation**: Among the convertible bonds held by funds, the proportion of AA - rated convertible bonds was relatively high, with 143 bonds, accounting for 30.82% [53]. 3.3 Convertible Bond Fund Holding Convertible Bond Behavior Analysis 3.3.1 Convertible Bond Fund Scale Change - As of the end of Q2 2025, there were 38 convertible bond funds in existence, holding a scale of 40.229 billion yuan, a decrease of 2.201 billion yuan from the previous quarter [56]. 3.3.2 Convertible Bond Fund Positioning Behavior Analysis - **Industry Distribution**: Convertible bond funds held the largest market value of bank - related convertible bonds, with a scale of 6.917 billion yuan. The convertible bonds of the non - banking finance industry were increased by 413 million yuan, while those of the banking industry were reduced by 1.583 billion yuan [57][59]. - **Performance**: In Q2 2025, the average return rate of convertible bond funds was 3.50%, the median return rate was 3.43%, and the average return rate of the top 10 convertible bond funds was 4.98%. The performance of convertible bond funds was stronger than that of the Wind All - A Index and the CSI Convertible Bond Index [63].

Investment Rating - The report maintains a "Buy" rating for the food and beverage industry [5]. Core Viewpoints - The liquor sector is currently in a deep value zone, with the CITIC liquor index showing a rebound and a dividend yield of 3.72% as of July 25, 2025, indicating strong profitability and willingness to distribute dividends [1][13]. - The restaurant supply chain is undergoing active transformation, with companies like Weizhi Xiang expanding their product categories and enhancing their sales channels, particularly in lower-tier cities [2][14]. - The snack food sector is focusing on steady growth in store openings and exploring new product categories, with companies like Wancheng Group adapting to market demands [3][15]. Summary by Sections Liquor Industry - The CITIC liquor index has seen a rebound, with a dividend yield of 3.72% as of July 25, 2025, placing it in a deep value zone [1][13]. - The cumulative net profit for the liquor sector is projected to reach 166.6 billion yuan in 2024, with a dividend payout ratio of 71% [1][13]. - The proportion of actively managed equity public funds holding liquor stocks has decreased to 5.1%, indicating significant clearing of positions [1][13]. - The market price of Moutai has dropped over 10% since the announcement of austerity measures, impacting confidence in the market [1][13]. Restaurant Supply Chain - Weizhi Xiang is actively transforming its channels, expanding product categories, and enhancing its online presence to boost sales [2][14]. - The company is also focusing on expanding into lower-tier cities and encouraging franchisees to open multiple stores [2][14]. - The B-end group meal channel has shown significant growth, with expectations for further expansion [2][14]. Snack Food Sector - Wancheng Group is maintaining a steady pace of store openings, with an increase in customer traffic despite a slight decline in average transaction value [3][15]. - The company is transitioning from rapid expansion to improving operational efficiency and brand building [3][15]. - New product categories are being explored, including collaborations with local suppliers for baked goods [3][15]. Investment Recommendations - The report suggests maintaining positions in dairy and snack sectors, recommending companies like Yili and Yanjinpuzi for core holdings [4][43]. - It also advises flexible trading in underperforming sectors with potential for recovery, such as Lihai Food and New Dairy [4][43]. - For the liquor sector, it recommends focusing on companies with better competitive positioning, such as Kweichow Moutai and Wuliangye [4][43].

Investment Rating - The report maintains an "Overweight" rating for the company [5] Core Views - The partnership with GlaxoSmithKline (GSK) opens significant international market opportunities for the company, allowing it to leverage GSK's global sales capabilities [2][3] - The upfront payment of $500 million from GSK and potential milestone payments of approximately $12 billion highlight the company's recognized innovation and development capabilities [2][3] - The collaboration is expected to enhance the company's market value and solidify its position as a leading innovator in the domestic pharmaceutical sector [2] Summary by Relevant Sections Financial Forecasts and Valuation - The company is projected to achieve net profits of 83.3 billion, 90.1 billion, and 101.9 billion yuan for the years 2025, 2026, and 2027 respectively, reflecting increases of 22.7%, 12.5%, and 11.2% [3] - The current price-to-earnings (P/E) ratios are estimated at 45, 42, and 37 for the years 2025, 2026, and 2027 [3] - Revenue is expected to grow from 22.82 billion yuan in 2023 to 41.26 billion yuan in 2027, with a compound annual growth rate of approximately 11.06% [10] Revenue and Profitability Metrics - The company's revenue growth rates are projected at 7.26% for 2023, 22.63% for 2024, and 23.09% for 2025 [10] - The gross margin is expected to remain strong, with estimates of 84.6% in 2023 and 87.3% in 2027 [12] - The return on equity (ROE) is forecasted to be 10.63% in 2023 and stabilize around 12.97% by 2027 [12] Market Position and Strategic Initiatives - The agreement with GSK allows the company to license up to 11 projects, significantly expanding its international pipeline [2] - The company has 19 innovative drugs approved for sale in China and over 90 products in clinical development, indicating a robust pipeline for future growth [2]