Investment Rating - The industry investment rating is "Outperform the Market - B" [6] Core Insights - Infrastructure investment in China has shown steady growth, with significant contributions from water conservancy projects, which have maintained a high growth rate of 26.6% year-on-year [2][19] - The issuance of special bonds and long-term government bonds has accelerated, leading to a robust government investment that supports infrastructure development [3][19] - The reform of state-owned enterprises is progressing, with an average completion rate of over 80% for key reform tasks as of the end of Q1 2025 [18] Summary by Relevant Sections Industry Dynamics - From January to May 2025, China's fixed asset investment reached 19.19 trillion yuan, a year-on-year increase of 3.7%, with narrow infrastructure investment growing by 5.6% [1][16] - The contribution rate of infrastructure investment to overall investment growth was 34.5%, an increase of 1.9 percentage points compared to the previous month [1][16] Market Performance - The construction industry experienced a decline of 2.24% from June 16 to June 20, underperforming compared to the broader market indices [20] - Among the sub-sectors, the housing construction sector had the smallest decline at -0.67% [20] Company Announcements - Major contracts were awarded, including a 50.05 billion yuan project by China Energy Construction and a 3.37 billion USD contract by China National Machinery Industry Corporation [32] - China Construction reported a new contract total of 1.8412 trillion yuan for the first five months of 2025, reflecting a year-on-year increase of 1.7% [33] Investment Opportunities - The report suggests focusing on undervalued construction state-owned enterprises, including China State Construction, China Communications Construction, and China Railway Construction, as their operational indicators are expected to improve [11][19] - It also highlights the potential of construction design firms and international engineering service providers, particularly those with strong overseas business growth [12][19]

Investment Rating - The report maintains an investment rating of "Outperform" [7] Core Insights - DDR4 prices have surged, with spot prices increasing over 12% in just two days, driven by major manufacturers exiting DDR4 production and strong buying momentum in the market [2] - Qualcomm's Snapdragon Ride platform aims to accelerate the adoption of Advanced Driver Assistance Systems (ADAS) among Chinese automakers, having already been implemented in over 60 countries with significant testing mileage [3] - Meta has launched a new smart glasses model, Oakley Meta HSTN, priced at $399, featuring advanced functionalities for athletes [4] Industry Performance - The electronic sector has shown a relative return of 0.4% over the past month, while absolute returns have decreased by 0.9% [9] - The electronic industry index has outperformed the broader market, with a 0.95% increase during the week of June 16-20, 2025, while major indices like the Shanghai Composite Index fell [31] Market Trends - The semiconductor industry saw a 6% quarter-over-quarter revenue increase among the top ten IC design firms in Q1 2025, reaching a record high of $77.4 billion [19] - The global smartphone market experienced a slight decline in production, with Q1 2025 figures showing a total of 289 million units, a year-on-year decrease of approximately 3% [25] - The domestic electric vehicle market has shown rapid growth, with production and sales reaching 5.7 million and 5.6 million units respectively from January to May 2025, marking a year-on-year increase of 45.2% and 44% [20] Investment Recommendations - The report suggests focusing on companies within the computing power supply chain such as Shenghong Technology, Hushen Electric, and Shengyi Electronics, as well as storage companies like Zhaoyi Innovation and Bawei Storage [12]

重点监测 18 城合计成交二手房总套数为 2.5 万套，环比上周增长 1%； 2025 年累计成交总套数为 60.9 万套，累计同比增长 14.6%。 土地供应（6.9-6.15） 2025 年 06 月 22 日 房地产 5 月房价环比走弱 周观点：5 月统计局全国地产数据环比走弱 2025 年 5 月，全国房地产市场底部。单月开发投资同比降幅扩大至- 12.0%（前值-11.3%），1-5 月累计投资 3.62 万亿元，同比下降 10.7%。 新房销售端动能减弱，单月商品房销售面积同比下降 3.3%，降幅较 4 月扩大 1.2 个百分点；单月销售额同比下降 6.0%。价格方面，70 城 新房价格环比下跌 0.2%，跌幅扩大 0.1 个百分点；二手房环比下跌 0.5%，跌幅扩大 0.1 个百分点，仅三城二手房环比上涨（无锡、洛阳、 南充），一线城市全面转跌。 我们认为，5 月房地产数据呈现出销售面积降幅收窄，但房价下行压 力加大的市场特征，在房价，建议关注困境反转类房企：金地集团、 新城控股等；保持拿地强度的龙头招商蛇口、绿城中国、保利发展、 滨江集团等；多元经营稳健发展的地方国企浦东金桥、外高桥等。 销售 ...

Group 1 - The report highlights a "golden pit" scenario for the A-share market, indicating a period of volatility without significant downward pressure or a second bottom formation [1][2][3] - The market is currently characterized by a "push-up" pattern of narrow fluctuations, a "barbell" strategy focusing on banks and micro-cap stocks, and a "seesaw" effect between new consumption and new technology [1][2][3] - The report suggests that the recent U.S. airstrikes on Iran are unlikely to escalate into a larger conflict, which could have significant implications for inflation and market stability [1][2] Group 2 - The report outlines three potential scenarios for the second half of the year, drawing parallels to previous years: 2020, 2024, and 2019, each with distinct market characteristics and structural focuses [2][3][4] - The 2020 scenario suggests a bull market driven by synchronized policy responses from the U.S., Europe, and China, with a focus on core growth assets [2][3] - The 2024 scenario anticipates a double bottom formation with a focus on high-dividend strategies, while the 2019 scenario emphasizes a transition between old and new economic drivers, showcasing a dual momentum in consumption and technology [3][4][5] Group 3 - The report notes that the A-share market is currently experiencing a significant shift towards new economic drivers, particularly in sectors like AI, military technology, and innovative pharmaceuticals, which are expected to support market resilience [4][5][6] - The report emphasizes the importance of understanding the dynamics of the A-share market in relation to the Hong Kong market, particularly regarding the AH premium, which has reached a five-year low, indicating a divergence in valuations [34][39][70] - The report also highlights the ongoing transformation in the consumption sector, with new consumption indices outperforming traditional ones, reflecting a shift in consumer behavior and market dynamics [57][58][60]

Investment Rating - The report maintains an investment rating of "Leading the Market - A" [7] Core Insights - The 85th American Diabetes Association (ADA) conference revealed excellent weight loss data for several domestic GLP-1 products from companies such as HengRui Medicine, GeLi Pharmaceutical, and others [2][20] - Notable weight loss results include HengRui's HRS9531 showing an average weight reduction of 17.97% at week 32, and BoRui's BGM0504 showing a 19.78% reduction at week 24 [2][20] - The report highlights a significant increase in new drug applications, with 4 new drugs approved and 5 new drug applications accepted this week [4][24] Summary by Sections New Drug Market Review - From June 16 to June 20, 2025, the top five companies in the new drug sector by stock price increase were: - Ascentage Pharma-B (15.88%) - WuXi AppTec-B (14.67%) - Eucure Biopharma-B (6.60%) - Genscript Biotech-B (1.91%) - Beihai Kangcheng-B (1.54%) - The top five companies by stock price decrease were: - Kedi-B (-22.68%) - Deqi Pharma-B (-19.69%) - Zai Lab (-16.44%) - Tsinghua Tongfang-B (-16.18%) - Nocera Health (-15.34%) [1][16] Key Analysis of New Drug Industry - The ADA conference showcased multiple domestic companies disclosing their GLP-1 products' weight loss data, with significant results from HengRui, GeLi, and others [2][20] - In the GLP-1/GIP dual-target peptide category, HengRui's HRS9531 achieved a 17.97% weight reduction, while BoRui's BGM0504 reached 19.78% [2][20] New Drug Approval & Acceptance - This week, 4 new drug applications were approved, including: - Quadrivalent influenza virus split vaccine - Rituximab injection - 13-valent pneumococcal conjugate vaccine - Daridorexant tablets - Additionally, 5 new drug applications were accepted, including: - Ranibizumab injection - Insulin degludec injection - Paclitaxel oral solution - Masitinib dispersible tablets - Pirtobrutinib tablets [4][24][25] Clinical Application Approval & Acceptance - A total of 45 new drug clinical applications were approved, and 29 new drug clinical applications were accepted this week [5][27]

Investment Rating - The report maintains an investment rating of "Outperform" compared to the market, indicating an expected return that will exceed the CSI 300 index by 10% or more over the next six months [8]. Core Insights - The Huawei Developer Conference (HDC 2025) showcased significant advancements in AI and operating systems, highlighting the release of HarmonyOS 6, which is now installed on over 40 Huawei devices and supports more than 30,000 applications [2][15]. - The introduction of the Harmony AI Framework (HMAF) aims to create a new AI ecosystem with autonomous decision-making and collaborative capabilities, enhancing human-computer interaction [3][16]. - The Pangu Model 5.5 was launched, featuring various specialized models for different applications, indicating a substantial upgrade in AI capabilities [4][17]. - The CloudRobo platform was introduced to empower various connected devices to function as intelligent robots, showcasing advancements in industrial applications [5][18]. - The CloudMatrix 384 solution integrates 384 Ascend AI chips and 192 Kunpeng CPU chips, significantly enhancing AI cloud service capabilities with a fourfold increase in inference throughput [6][19]. Summary by Sections Industry Performance - The computer industry index decreased by 1.87% this week, underperforming the Shanghai Composite Index by 1.036 percentage points [20][21]. - The overall market sentiment remains cautious, with AI applications experiencing notable pullbacks [20][24]. Important News - Huawei's launch of the Pangu Model 5.5 and Ascend AI cloud services marks a breakthrough in domestic AI computing capabilities, with significant improvements in inference efficiency and model architecture [28]. - Meta's acquisition of Scale AI for $14.3 billion aims to bolster its AI capabilities, reflecting the competitive landscape in AI development [28]. - The introduction of new models by Google and Alibaba indicates ongoing innovation and competition in the AI sector [28].

2025 年 06 月 22 日 环保及公用事业 5 月用电量数据发布，虚拟电厂建设加 速推进 本周专题：虚拟电厂推进加速，商业模式进一步清晰 6 月 4 日，国家发改委与国家能源局发布《关于组织开展新型电力系 统建设第一批试点工作的通知》，通知提出要围绕构网型技术、系统 友好型新能源电站、智能微电网、算力与电力协同、虚拟电厂、大规 模高比例新能源外送、新一代煤电等七个方向开展试点工作。这是继 4 月"357 号文"发布后又一国家层面加快虚拟电厂发展的文件。地 方层面看，上海、陕西等地相继发布相关政策，虚拟电厂建设加速推 进。357 号文的发布，从明确准入条件、健全电能量市场机制、完善 辅助服务市场机制和优化需求响应机制四个方面，为虚拟电厂参与电 力市场提供了清晰的路径和规范。建议关注虚拟电厂/功率预测相关 标的，国能日新、朗新集团、东方电子、恒实科技、国网信通、协鑫 能科、合康新能等；以及受益于数据中心放量的绿电标的，同力日升 等。 行情回顾： 6 月 9 日-6 月 20 日上证指数下跌 0.75%，创业板指下跌 1.45%，公用 事业指数下跌 0.87%，跑输上证综指 0.12pct,环保指数下跌 3. ...

- The report mentions a "Four-Wheel Drive Model" as part of its analysis framework[5][12] - The model identifies potential opportunities in weak sectors based on metrics such as RS6, momentum (Mom), trend strength (TendS), temperature (Tempe), and new high (Newhigh)[12] - Specific examples include the electronics sector with RS6: 0.47, Mom: 0.14 (0.14 -> 0.21), TendS: 0.22 (0.33, 1, 229), Tempe: 44.4, and Newhigh: 0.03[12] - Another example is the communication sector with RS6: 0.2, Mom: 0.22 (0.11 -> 0.17), TendS: 0.23 (0.33, 6, 40), Tempe: 51.9, and Newhigh: 0.08[12]

Investment Rating - The report maintains an investment rating of "Outperform" with a target price of 41.75 CNY for Mingyue Lens [5][6]. Core Insights - AI glasses are positioned as a key application for AI large models, with significant market potential estimated at over 1 trillion CNY. They are expected to quickly gain popularity and become the next generation of mobile terminals due to their lightweight, stylish design, and affordability [1][2][22]. - The penetration rate of AI glasses is currently in the early stages, with expectations for rapid growth driven by technological breakthroughs and the entry of leading companies into the market [3][32]. Summary by Sections 1. High-Potential Smart Wearable Devices - AI glasses are identified as one of the best application carriers for AI large models, occupying a unique position for multimodal interaction [1][14]. - The global market for non-display AI glasses is estimated to be close to 190 billion CNY, while AI+AR glasses could reach a market size of 1.76 trillion CNY [2][32]. 2. Industry Chain Value Concentration - The value chain of the industry is concentrated in core components and distribution channels, with leading manufacturers in high-end lens production expected to benefit significantly [4][8]. 3. AI Glasses Valuation Phase - AI glasses are currently in a valuation adjustment phase, with expectations for significant growth in the second half of 2025 as major new products are launched [8][32]. 4. Key Companies to Watch - Notable companies include: - Kangnait Optical, which leads in customized lens manufacturing and has strong backing from GoerTek [8]. - Mingyue Lens, a domestic lens production leader that has entered the Xiaomi supply chain [8]. - Inpai, focusing on entertainment and fitness scenarios in collaboration with Li Weike [8]. - Doctor Glasses, which has a large store network and partnerships with major AI glasses brands [8].

Investment Rating - The report assigns a "Buy-A" investment rating with a 6-month target price of 15.78 CNY [5][6]. Core Insights - The company is expected to benefit from the launch of its new health-oriented product, VitaYoung, which features a "6-zero" formula, aligning with health consumption trends and potentially driving significant sales growth [1]. - A new generation manager has taken over, indicating a shift towards professional and youthful governance, alongside a revamped marketing strategy that leverages online media and celebrity endorsements to enhance brand visibility among younger consumers [2]. - The company is experiencing a reduction in the cost of bulk powder, leading to an increase in gross margin, which is projected to continue improving due to favorable raw milk prices [3]. - The company has a strong commitment to shareholder returns, planning to distribute approximately 194 million CNY in cash dividends, which represents 86.57% of the net profit for the year [4]. Financial Projections - Revenue growth is forecasted at 8.0%, 8.5%, and 9.0% for the years 2025 to 2027, with net profit growth expected at 7.5%, 15.5%, and 15.1% respectively, indicating strong growth potential [5][18]. - The company’s revenue for 2025 is projected to be 1,528 million CNY, with a gross margin of 41.7% [19][26]. - The company’s earnings per share (EPS) is expected to increase from 0.60 CNY in 2023 to 0.81 CNY by 2027 [19][26]. Business Structure and Product Lines - The company focuses on sweet milk beverage products, with a significant portion of revenue coming from its core dairy drink segment, which has shown consistent growth [10][12]. - The product mix includes a variety of beverages, with dairy drinks accounting for 95.69% of revenue, while new product lines like plant protein and vitamin water are being developed to meet diverse consumer needs [12][16]. - The company has established a strong distribution network, covering over 2,600 dealers nationwide, which supports its market presence [13].