Investment Rating - The report maintains a "Buy" rating for the agriculture, forestry, animal husbandry, and fishery sector [4] Core Viewpoints - Recent policy guidance has led to a rapid decline in post-slaughter weight, allowing for a rebalancing of volume and price, with positive expectations for pig prices [3] - The long-term perspective indicates that the bottom of the production capacity cycle is becoming clearer, suggesting a potential long-term profit upturn for the sector [3] - The report highlights investment opportunities in various segments, including pig farming, feed, and planting chains, as well as the pet food sector [3] Summary by Sections Pig Farming Sector - In June, 13 listed pig companies collectively slaughtered 16.2681 million pigs, a month-on-month increase of 2.65% and a year-on-year increase of 47.55% [2][13] - The average selling price of pigs decreased by approximately 3% month-on-month and about 20% year-on-year, with prices ranging from 13.23 to 15.57 yuan/kg [14][15] - The average weight of slaughtered pigs in June was 125.06 kg, down 0.77 kg from May, indicating a trend towards reducing weight [17] Market Dynamics - The national average price for live pigs was 14.81 yuan/kg as of July 11, reflecting a week-on-week decline of 3.52% [28] - The demand for pork is weakening due to high temperatures affecting consumption and rising storage costs, leading to a gradual loosening of supply-demand dynamics [28] Investment Recommendations - The report recommends focusing on leading companies such as Muyuan Foods, Wens Foodstuff, and Juxing Agriculture, as well as companies in the feed and animal health sectors like Haida Group and Ruipu Biological [3] - In the planting chain, opportunities are highlighted for companies like Suqian Agricultural Development and Beidahuang [3] Other Segments - The pet food industry is experiencing growth, with increasing recognition of domestic brands and continuous growth of leading companies [3]

Group 1 - The A-share market has shown signs of recovery, with major indices mostly rising, particularly the ChiNext Index which increased by 2.4% [13][14][16] - The real estate, steel, and non-bank financial sectors performed relatively well this week, with respective increases of 6.1%, 4.4%, and 4.0% [16][19][34] - The manufacturing sector is predicted to have the highest mid-year report performance growth, with an estimated year-on-year growth rate of approximately 10.0% [33][34] Group 2 - Industries expected to show high mid-year report performance growth include light industry, non-ferrous metals, and non-bank financial sectors, with predicted net profit growth rates of 34.2%, 33.0%, and 19.1% respectively [33][34] - The construction materials, electronics, and telecommunications sectors are anticipated to have significant performance improvement, with expected growth rate improvements of 11.4%, 7.9%, and 6.1% respectively [34][39] - The current mid-year earnings forecast disclosure rate is only 4.1%, indicating limited reference value for investors [39][42] Group 3 - The overall pre-announcement rate for A-share companies is 72%, with many industries showing high pre-announcement rates, particularly in real estate and non-bank financial sectors [39][40] - The environmental protection, transportation, and media sectors are expected to show significant improvement in mid-year earnings forecasts, with respective improvement rates of 139.5pct, 111.0pct, and 96.7pct [41][44] - The market is expected to experience a bullish trend in the second half of the year, with a focus on sectors that are likely to outperform in mid-year reports [57][58]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a projected investment return exceeding the market benchmark by more than 15% over the next 6-12 months [4][6]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of 1.2-1.45 billion yuan for the first half of 2025, representing a year-on-year growth of 68.1%-103.1% [1]. - The company has implemented a dual strategy focusing on both B-end (industrial catering series) and C-end (instant nutrition series and family dining series) to strengthen its market position in the cheese sector [3]. - The company has confirmed stock incentive expenses of 18.6869 million yuan in Q2 2025, yet still anticipates rapid profit growth due to increased revenue from cheese products and reduced raw material costs [2]. Summary by Sections Financial Performance - The company forecasts net profits of 216 million yuan, 324 million yuan, and 457 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.42 yuan, 0.63 yuan, and 0.89 yuan [4][10]. - Revenue for 2025 is projected at 5.377 billion yuan, with a growth rate of 11.01% [5][10]. Market Position - The company has achieved a market share of over 39% in Q1 2025, maintaining its position as the market leader in cheese sales [3]. - The company is expanding into new retail channels, including instant retail and member stores, to enhance its distribution network [3]. Product Development - The company is focusing on product innovation, launching new items such as cheese sticks and various cheese snacks to cater to consumer preferences [3]. - The company is also developing customized products for large B-end clients to enhance its service capabilities [3].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - From July 7 to July 11, 2025, the secondary - market prices of China's listed public REITs showed an overall correction, with a weighted REITs index return rate of - 1.26%. Compared with other mainstream asset classes, REITs performed weakly [1][11]. - The trading volume and enthusiasm in the REITs market decreased. The total net inflow of main funds was 7.483 million yuan, and the total amount of block trades reached 628.09 million yuan, an increase from the previous week [2][3][32]. - There were no new REITs products listed in the primary market this week, and the status of the first - issue project of "Huaxia Zhonghe Clean Energy Closed - end Infrastructure Securities Investment Fund" was updated to "Feedback Received" [4][44]. 3. Summary According to the Directory 3.1 Secondary Market 3.1.1 Price Trends - **At the major asset level**: The secondary - market prices of China's listed public REITs corrected. The returns of China's public REITs were - 1.26%, ranking at the bottom among mainstream asset classes [11]. - **At the underlying asset level**: Both equity - type and franchise - type REITs showed a downward trend, with franchise - type REITs having a smaller decline. Among different underlying asset types, energy - type REITs had the smallest decline this week [16][18]. - **At the single - REIT level**: 8 REITs rose and 60 REITs fell. The top three in terms of increase were Harvest JD Warehouse Infrastructure REIT, CICC China Greentown Commercial REIT, and Southern SF Logistics REIT [22]. 3.1.2 Transaction Volume and Turnover Rate - **At the underlying asset level**: The total trading volume of public REITs this week was 2.75 billion yuan, and the ecological and environmental protection - type REITs led in the average daily turnover rate during the period. The top three in terms of trading volume were transportation infrastructure, park infrastructure, and consumption infrastructure; the top three in terms of average daily turnover rate were ecological and environmental protection, affordable rental housing, and consumption infrastructure [26]. - **At the single - REIT level**: The performance of single - REIT trading volume and turnover rate continued to be differentiated. The top three in terms of trading volume were Huaxia Hefei High - tech REIT, Huaxia Beijing Affordable Housing REIT, and Harvest JD Warehouse Infrastructure REIT; the top three in terms of trading amount were Huaxia Beijing Affordable Housing REIT, Huaxia China Resources Commercial REIT, and CICC Anhui Expressway REIT [29]. 3.1.3 Main Net Inflow and Block Trade Situation - **Main net inflow situation**: The total net inflow of main funds this week was 7.483 million yuan, indicating a decline in market trading enthusiasm. The top three underlying asset types in terms of net inflow were consumption infrastructure, energy infrastructure, and affordable rental housing. The top three REITs in terms of net inflow were CICC China Greentown Commercial REIT, Huaxia China Resources Commercial REIT, and CITIC Construction Investment State Power Investment New Energy REIT [32]. - **Block trade situation**: The total amount of block trades this week reached 628.09 million yuan, an increase from the previous week. The highest single - day block - trade turnover was on Thursday, July 10, 2025. The top three REITs in terms of block - trade turnover were Huaxia China Resources Commercial REIT, Huaxia Beijing Affordable Housing REIT, and Huaxia Shenzhen International REIT [33]. 3.2 Primary Market 3.2.1 Listed Projects - As of July 11, 2025, the number of China's public REITs products reached 68, with a total issuance scale of 177.061 billion yuan. Transportation infrastructure had the largest issuance scale, followed by park infrastructure [38]. - No new REITs products were listed this week [39]. 3.2.2 Projects to be Listed - There were 28 REITs in a to - be - listed state, including 16 first - issue REITs and 12 to - be - expanded REITs. The status of the first - issue project of "Huaxia Zhonghe Clean Energy Closed - end Infrastructure Securities Investment Fund" was updated to "Feedback Received" [44].

Quantitative Models and Construction Methods 1. Model Name: PB-ROE-50 - **Model Construction Idea**: The PB-ROE-50 model selects stocks based on a combination of Price-to-Book (PB) ratio and Return on Equity (ROE), aiming to capture value and profitability factors[23] - **Model Construction Process**: - Stocks are ranked based on their PB and ROE metrics - A portfolio is constructed by selecting the top 50 stocks with the best combined PB and ROE scores - The portfolio is rebalanced periodically to maintain the factor exposure[23] - **Model Evaluation**: The model demonstrates the ability to generate excess returns in certain market conditions, particularly in capturing value and profitability factors[23] 2. Model Name: Block Trade Portfolio - **Model Construction Idea**: This model leverages the information embedded in block trades, focusing on stocks with high block trade transaction amounts and low volatility in transaction amounts[29] - **Model Construction Process**: - Identify stocks with high "block trade transaction amount ratio" and low "6-day transaction amount volatility" - Construct a portfolio based on these criteria and rebalance monthly[29] - **Model Evaluation**: The model effectively captures the excess return potential of block trade-related stocks, particularly those with high transaction amounts and low volatility[29] 3. Model Name: Private Placement Portfolio - **Model Construction Idea**: This model focuses on stocks involved in private placements, aiming to capture the event-driven effects of private placements on stock performance[35] - **Model Construction Process**: - Use the shareholder meeting announcement date as the event trigger - Incorporate market capitalization, rebalancing frequency, and position control into the portfolio construction process - Construct a portfolio based on these parameters[35] - **Model Evaluation**: The model captures the investment opportunities arising from private placement events, though its effectiveness may vary depending on market conditions[35] --- Model Backtesting Results 1. PB-ROE-50 Model - **Excess Return (This Week)**: - CSI 500: -0.56% - CSI 800: -0.38% - All Market: 0.92%[24] - **Year-to-Date Excess Return**: - CSI 500: 2.99% - CSI 800: 6.41% - All Market: 9.28%[24] - **Absolute Return (This Week)**: - CSI 500: 1.39% - CSI 800: 0.73% - All Market: 2.47%[24] - **Year-to-Date Absolute Return**: - CSI 500: 8.41% - CSI 800: 9.44% - All Market: 16.07%[24] 2. Block Trade Portfolio - **Excess Return (This Week)**: 1.22% - **Year-to-Date Excess Return**: 25.89% - **Absolute Return (This Week)**: 2.78% - **Year-to-Date Absolute Return**: 33.71%[30] 3. Private Placement Portfolio - **Excess Return (This Week)**: 0.05% - **Year-to-Date Excess Return**: 8.72% - **Absolute Return (This Week)**: 1.59% - **Year-to-Date Absolute Return**: 15.48%[36] --- Quantitative Factors and Construction Methods 1. Factor Name: Beta Factor - **Factor Construction Idea**: Measures the sensitivity of a stock's returns to market returns, capturing systematic risk[18] - **Factor Construction Process**: - Calculate the covariance between the stock's returns and market returns - Divide by the variance of market returns to derive the beta coefficient - $ \beta = \frac{\text{Cov}(R_i, R_m)}{\text{Var}(R_m)} $ - Where $R_i$ is the stock return, and $R_m$ is the market return[18] - **Factor Evaluation**: The factor captures systematic risk effectively and is widely used in portfolio construction and risk management[18] 2. Factor Name: Momentum Factor - **Factor Construction Idea**: Measures the tendency of stocks with high past returns to continue performing well in the future[18] - **Factor Construction Process**: - Calculate the cumulative return of a stock over a specific look-back period (e.g., 6 months or 12 months) - Rank stocks based on their cumulative returns and construct a portfolio of top-ranked stocks[18] - **Factor Evaluation**: The factor is effective in capturing trends in stock performance but may underperform in reversal markets[18] 3. Factor Name: Valuation Factor (e.g., PB, PE, PS) - **Factor Construction Idea**: Measures the relative valuation of stocks based on financial metrics like Price-to-Book (PB), Price-to-Earnings (PE), and Price-to-Sales (PS)[18] - **Factor Construction Process**: - Calculate the PB, PE, or PS ratio for each stock - Rank stocks based on these ratios and construct a portfolio of low-ratio stocks (value stocks)[18] - **Factor Evaluation**: Valuation factors are effective in identifying undervalued stocks but may underperform during growth-driven market phases[18] --- Factor Backtesting Results 1. Beta Factor - **Weekly Return**: 0.48%[18] 2. Momentum Factor - **Weekly Return**: -0.44%[18] 3. Valuation Factor - **Weekly Return**: - PB: 2.57% (CSI 500)[14] - PE: 0.37% (CSI 300)[13] - PS: 1.26% (CSI 300)[13]

Investment Rating - The report maintains an "Overweight" rating for the non-bank financial sector [1]. Core Insights - The recent notification from the Ministry of Finance emphasizes the importance of long-term assessments for state-owned commercial insurance companies, aiming to enhance their stable operation and increase their market participation [1][3]. - The adjustment in the assessment criteria for net asset return rates and capital preservation rates aims to encourage long-term investment strategies among insurance companies [3][4]. - The report highlights that the long-cycle assessment will help alleviate the impact of short-term market fluctuations on performance, thereby increasing the willingness of insurance funds to enter the market [8][9]. Summary by Sections Background - The regulatory environment is being optimized to promote long-term investments, with a series of measures introduced to address the barriers faced by insurance funds in making long-term investments [2]. - Key measures include increasing the A-share investment ratio and stability of commercial insurance funds, as well as simplifying the regulatory ratios for equity assets [2]. Content - The assessment weight for the 3-5 year cycle has been raised to 70%, with the new evaluation method combining annual, 3-year, and 5-year indicators [3][4]. - The notification introduces a new assessment requirement for the preservation and appreciation rate of state-owned capital, aligning it with the assessment method for net asset return rates [4]. Impact - The long-cycle assessment system is expected to facilitate the entry of insurance funds into the market, particularly in a low-interest-rate environment, which has been squeezing profit margins for insurance companies [8][9]. - Increasing the proportion of equity investments is anticipated to enhance the investment yield elasticity for insurance companies, thereby providing a buffer against interest margin losses [9]. Investment Recommendations - The report suggests that despite potential pressures on new business growth, the ongoing optimization of product structures and the increase in floating income products will support the net profit value (NBV) [15]. - It recommends specific insurance stocks that are likely to benefit from these trends, including New China Life Insurance, China Life Insurance, and China Pacific Insurance [15].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future investment returns exceeding the market benchmark by more than 15% over the next 6-12 months [5]. Core Views - The company has shown significant improvement in display business profits, driven by optimization of panel product structure and a trend towards larger sizes, which has led to stable pricing and increased demand [2]. - The semiconductor display business is expected to achieve a net profit exceeding 46 billion yuan, reflecting a year-on-year increase of over 70% [3]. - The photovoltaic business remains under pressure, with expected net losses for TCL Zhonghuan in the range of 12 to 13.5 billion yuan due to product price declines and inventory impairments [3]. - The company continues to enhance its competitive advantage through strategic acquisitions and operational improvements, including the integration of LG Display (China) and the completion of a stake acquisition in Shenzhen Huaxing Optoelectronics [2]. Summary by Sections Financial Performance - For the first half of 2025, the company anticipates revenue between 826 billion and 906 billion yuan, representing a year-on-year growth of 3% to 13% [1]. - The net profit attributable to shareholders is projected to be between 18 billion and 20 billion yuan, marking a growth of 81% to 101% year-on-year [1]. - The adjusted net profit is expected to be between 15 billion and 16.5 billion yuan, reflecting a substantial increase of 168% to 195% year-on-year [1]. Business Segments - The large-size display segment is experiencing growth due to an optimized supply-side structure and stable pricing, while the medium-size segment benefits from increased IT product sales [2]. - The OLED business in the small-size segment has seen success through a high-end strategy, supplying differentiated products to leading customers [2]. - The photovoltaic segment is facing challenges, with a decline in demand and profitability, but the company is actively working on cost control and operational improvements [3]. Profitability and Valuation - The report adjusts the profit forecasts for 2025 and 2026, lowering the net profit estimates to 59.58 billion yuan and 83.35 billion yuan, respectively, reflecting a decrease of 24% and 15% [3]. - The projected price-to-earnings ratios for 2025 to 2027 are 15, 11, and 9 times, respectively, indicating a favorable valuation compared to the company's ongoing profitability in the display business [3].

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company is expected to see improved profitability due to ongoing upgrades in optical specifications and accelerated shipments in the automotive sector [2][3] - The mobile camera module shipments have shown a positive year-on-year growth for the first time in 2025, while lens shipments are expected to recover in the second half of the year [1][2] - The automotive lens shipments have significantly increased, with a projected growth rate of 26% in global shipments by 2025, benefiting the company as a leading player in this market [3] Summary by Sections Mobile Camera Modules - In June, mobile camera module shipments increased by 11.1% month-on-month and 0.7% year-on-year, marking the first positive year-on-year growth in 2025 [1] - The first half of 2025 saw a year-on-year decline of 21.0% in mobile camera module shipments, attributed to a focus on mid-to-high-end projects and a high base from the previous year [1] - The report anticipates a recovery in shipments during the second half of 2025 due to the traditional peak season for Android devices [1] Mobile Lenses - Mobile lens shipments in June decreased by 3.1% month-on-month and 12.7% year-on-year, primarily due to a focus on mid-to-high-end projects [1] - For the first half of 2025, mobile lens shipments declined by 6.4% year-on-year, which is below the annual growth guidance of 5% [1] - A recovery in mobile lens shipments is expected in the second half of 2025 due to increased demand from major clients [1] Automotive Lenses - June saw a 3.2% month-on-month increase and a 44.6% year-on-year increase in automotive lens shipments [3] - The first half of 2025 recorded a 21.7% year-on-year increase in automotive lens shipments, exceeding the annual growth guidance of 15%-20% [3] - The company is projected to benefit significantly from the anticipated growth in the automotive lens market, with an expected shipment growth rate of nearly 25% in 2025 [3] Financial Forecasts - The report has revised the net profit forecasts for 2025 and 2026 upwards by 9% and 6% respectively, now estimating net profits of 3.83 billion and 4.84 billion RMB [4] - The company is expected to achieve a gross margin of nearly 10% for mobile camera modules and nearly 30% for mobile lenses in 2025 [2] - Revenue projections for the company show a steady increase from 31.68 billion RMB in 2023 to 62.07 billion RMB in 2027, with a compound annual growth rate of approximately 17.9% [4]

Investment Rating - The report indicates a positive outlook for the unmanned logistics vehicle industry, suggesting that it is well-positioned for commercialization and growth [5][12]. Core Insights - Unmanned logistics vehicles are primarily used for short-distance transportation, addressing labor shortages in remote areas and peak times, and are expected to reshape the urban delivery ecosystem [5][7]. - The commercialization factors for unmanned logistics vehicles are mature, with favorable policies, technological advancements, and reduced costs paving the way for large-scale deployment by 2030 [5][12]. - The market for unmanned logistics vehicles is projected to exceed 100 billion yuan by 2030, with an expected sales volume of over 800,000 units, indicating significant growth potential [5][45]. Summary by Sections Unmanned Logistics Vehicles Expected to Reshape Urban Delivery Ecosystem - The current application of unmanned logistics vehicles focuses on short-distance delivery, particularly in urban settings, which can enhance delivery efficiency and operational capabilities [5][8]. Market Space for Unmanned Logistics Vehicles - The report highlights a growing demand for logistics solutions, with the domestic logistics total increasing from 298 trillion yuan in 2019 to 361 trillion yuan in 2024, alongside a significant rise in express delivery volumes [40][42]. - The penetration rate of unmanned logistics vehicles is currently around 0.1%, with substantial room for growth as the industry evolves [5][45]. Commercialization Factors are Fully Prepared - The report identifies that unmanned logistics vehicles have met the necessary conditions for commercialization, including supportive policies across various city tiers, simplified technological requirements, and significantly reduced costs [5][18][31]. - The cost of unmanned logistics vehicles has decreased from over 1 million yuan in 2018 to below 100,000 yuan, making them more competitive compared to traditional vehicles [31][33]. Short-term Profitability and Focus on Key Suppliers - The report suggests that short-term profitability in the unmanned logistics vehicle sector will favor component suppliers over manufacturers, with a focus on domain control and chassis suppliers [5][49]. - Key suppliers identified include domain control providers like Xiaoma Zhixing and Jingwei Hengrun, and chassis suppliers such as Yatai Co. and Wanlang Magnetic Plastic [5][49].

Group 1: Market Overview - The market has shifted from being policy-driven to being driven by fundamentals and liquidity since September last year, with expectations for a continued upward trend in the second half of the year, potentially surpassing the peak in the second half of 2024 [1] Group 2: Company Research - Juhua Co., Ltd. (600160.SH) - The refrigerant market is experiencing high demand, leading to an increase in profitability for Juhua Co., Ltd. The net profit forecast for 2025-2027 has been raised to 4.191 billion (up 11%), 5.141 billion (up 10%), and 6.286 billion (up 8%), with corresponding EPS of 1.55, 1.90, and 2.33 [2] Group 3: Company Research - Northern Rare Earth (600111.SH) - Northern Rare Earth expects a net profit of 900 million to 960 million for the first half of 2025, representing a year-on-year increase of 1882.54% to 2014.71%. The rise in prices for praseodymium-neodymium and lanthanum-cerium, along with reduced processing costs, has contributed to this performance [3] - The company is advancing its green smelting upgrade project, with the first phase nearing completion, and the downstream applications continue to grow, indicating a tight supply-demand balance in the rare earth industry [3] Group 4: Company Research - Zhaoli Pharmaceutical (300181.SZ) - Zhaoli Pharmaceutical's net profit for the first half of 2025 is projected to be between 368 million and 388 million, reflecting a year-on-year growth of 24% to 31%. The company is implementing a strategic upgrade towards consumer health, leveraging AI in the health consumption sector [4] - The net profit forecasts for 2025-2027 are set at 655 million, 836 million, and 1.063 billion, with growth rates of 29%, 28%, and 27% respectively, and the current stock price corresponds to PE ratios of 20, 16, and 12 [4]