Investment Rating - The report indicates a positive investment outlook for the coal mining industry, particularly focusing on the transition to intelligent and automated mining technologies. Core Insights - The coal mining industry in China is entering a phase of intelligent mining, with a record coal production of 4.711 billion tons in 2023, marking a 3.35% increase year-on-year. This transition is driven by the need to reduce labor costs and enhance safety in mining operations [4][26]. - Government policies are actively promoting the direction of unmanned intelligent mining, with a target for major coal mines to achieve automation by 2025 and a significant increase in the proportion of intelligent mining operations by 2030 [4][23]. - Major coal-producing provinces are setting specific development goals, with leading companies taking the initiative to upgrade their operations towards intelligent mining, resulting in a market potential exceeding 100 billion yuan [4][26]. Summary by Sections 1. Intelligent Mining Trends - The application of intelligent systems in coal mining significantly enhances operational efficiency and safety, transitioning from manual to automated processes [15][19]. - The mechanization level of large coal enterprises in China has reached 99.01% by 2022, indicating a high degree of automation in coal mining [15][17]. 2. Labor Shortages and Safety Concerns - The shortage of labor and rising operational costs are driving the demand for intelligent mining solutions, as the harsh working conditions deter younger workers from joining the industry [19][21]. - The report highlights the need for improved safety measures, as mining accidents have historically posed significant risks, with 1,990 fatalities reported from 2016 to 2022 [21][22]. 3. Policy Guidance - A series of government policies are in place to facilitate the transition to intelligent mining, including the "Energy Technology Revolution Innovation Action Plan" which aims for unmanned operations in key mining areas by 2030 [23][24]. - Local governments are also formulating specific plans to achieve intelligent mining, with targets set for various provinces to complete automation by 2025 [25]. 4. Market Potential - The intelligent mining market is projected to reach 33.93 billion yuan in 2024 and 36.25 billion yuan in 2025, driven by the ongoing transition to automation and intelligent systems [4][26]. - Leading companies in the sector, such as Tianma Zhikong and Zhengmeiji, are positioned to benefit significantly from this transition due to their advanced technologies and market presence [4][5].

Group 1 - The report highlights the strong demand in the tire industry, supported by favorable foreign trade conditions, which is expected to sustain the industry's prosperity [6][11][32] - The report recommends focusing on companies with early overseas expansion and stable production capacity, such as Sailun Tire, General Motors, and Linglong Tire, as they are well-positioned for growth in the global market [6][11][32] - The report notes that the domestic tire market is experiencing a shift towards overseas production, particularly in Southeast Asia, driven by the Belt and Road Initiative and the growing global tire market [6][11][32] Group 2 - The report discusses Rongchang Bio, a leader in the domestic autoimmune and ADC fields, emphasizing its core product, Tai Tasi Pi, which is the world's first dual-target fusion protein [34][36] - The company has a rich pipeline of products under development, with significant investments in R&D, increasing from 216 million yuan in 2018 to 1.306 billion yuan in 2023 [14][34] - The report forecasts that Rongchang Bio will achieve revenues of 1.586 billion yuan, 2.175 billion yuan, and 2.952 billion yuan from 2024 to 2026, with net losses expected to decrease over the same period [37]

Investment Rating - The report gives a "Bullish" rating for the tire industry, indicating a positive outlook for the next six months [75]. Core Insights - The tire industry is experiencing a recovery in production and demand, supported by strong export performance and stable domestic consumption [70][71]. - Key raw material prices remain high, impacting production costs, but the overall demand for tires is expected to grow due to increased exports and stable domestic needs [68][70]. Summary by Sections Raw Material Cost - Major raw material prices are maintaining high levels, with May 2024 prices for butadiene at 11,357.29 CNY/ton (down 1.35% MoM, up 48.06% YoY), natural rubber at 1,700.75 USD/ton (up 3.66% MoM, up 23.65% YoY), and styrene-butadiene rubber at 13,481.25 CNY/ton (up 1.27% MoM, up 16.27% YoY) [4][5]. Production - In May 2024, China's rubber tire production reached 93.4 million units, a YoY increase of 9.47% and a MoM increase of 4.42% [19]. - The average operating rate for semi-steel tires was 78.98%, slightly down from the previous month but up YoY, while the operating rate for all-steel tires was 58.86%, showing a decline [27]. Demand - Exports of new inflatable rubber tires in May 2024 totaled 5.638 million units, reflecting a YoY increase of 4.76% and a MoM increase of 3.56% [24]. - The demand for natural rubber in China was 600,000 tons in May 2024, down 2.02% MoM but up 1.61% YoY, with production rising significantly [7]. Industry News - Continental's tire factory expansion in Hefei has commenced production, expected to reach an annual capacity of 18 million units by 2027 [61]. - Yokohama Rubber is expanding its passenger tire business in India with a loan of 82 million USD to enhance production capacity [63]. Monthly Outlook and Investment Suggestions - The report suggests focusing on companies with established overseas production capabilities and strong market positions, such as Sailun Tire, General Motors, and Linglong Tire, as they are well-positioned for growth in the global market [70].

Group 1: Non-Bank Financial Industry Insights - The Lujiazui Forum has outlined the direction for capital market reforms, emphasizing the importance of mergers and acquisitions among brokerages and the recovery of the insurance sector [16][17] - The recent market performance shows a decline in the non-bank index by 1.3%, with brokerages and insurance sectors both experiencing downward trends, specifically -1.47% and -0.52% respectively [4] - The average daily trading volume of stock funds decreased by 3.8% week-on-week to 831 billion yuan, while the margin financing balance slightly decreased by 0.2% [4] Group 2: Insurance Sector Developments - The Lujiazui Forum has set a high-quality development path for the insurance industry, focusing on enhancing the sales rhythm on the liability side after the reduction of the predetermined interest rate [5] - The insurance sector is transitioning from risk management to risk reduction services, with a stable growth in premium income and significant room for penetration [5] - The asset side remains under pressure due to low long-term interest rates, but the real estate policy adjustments and capital market reforms are expected to boost investor sentiment [5] Group 3: Pet Food Industry Performance - During the "618" shopping festival, pet food sales reached 5.5 billion yuan, marking a 10% year-on-year increase, with significant growth in various categories [19][36] - Domestic brands have shown strong performance, with leading brands like Mai Fudi and Wan Pi ranking highly across multiple e-commerce platforms [36] - The pet food export volume in May 2024 was 30,600 tons, a 31% year-on-year increase, while the export value reached 127 million USD, up 21% year-on-year [20]

Investment Rating - The report assigns an "Overweight" rating to the pet food industry, indicating a positive outlook for the sector in the coming months [3]. Core Insights - The pet food industry has shown remarkable performance during the "618" shopping festival, with total sales reaching 55 billion yuan, a year-on-year increase of 10%, while overall e-commerce sales declined by 6.9% [1][7]. - The report highlights a significant growth trend in various pet food categories, particularly in baked and freeze-dried foods, which have seen sales growth exceeding 110% and 50% respectively for cat and dog food during the "618" period [3][7]. - The export of pet food has also maintained a strong upward trajectory, with May 2024 exports reaching 30,600 tons, a year-on-year increase of 31% [4][16]. Summary by Sections 1. Performance During "618" - The pet food category achieved impressive results, with notable increases in sales across major e-commerce platforms [1][7]. - Specific growth figures include over 50% increase in live-stream sales on Tmall and over 42% increase in transaction volume on JD [1][7]. 1.1. Overall Category Growth - The report indicates a clear upward trend in the pet food category, with various products experiencing significant sales increases during the "618" festival [7]. 1.2. Brand Competition - Domestic brands have performed well against international competitors, with brands like MaiFuDi and WanPi ranking highly across multiple categories on platforms like Tmall and JD [10][11]. 1.3. Export Growth - Pet food exports have shown consistent growth, with a 21% increase in export value in May 2024 compared to the previous year [4][16]. 2. Investment Recommendations - The report suggests focusing on companies such as GuaiBao Pet, ZhongChong Co., and PeiTi Co., which are expected to benefit from the industry's growth and trends towards premiumization and differentiation [17].

Investment Rating - The industry investment rating is "Overweight" [21] Core Insights - The report emphasizes the importance of the Lujiazui Forum in setting the direction for capital market reforms, which is expected to enhance the merger and acquisition activities among brokerages and improve insurance configurations [3][19] - The insurance sector is highlighted for its potential growth driven by the adjustment of preset interest rates and the increasing demand for long-term protection and savings from residents [3][19] - The report notes that the non-bank financial index fell by 1.3%, mirroring the performance of the CSI 300 index, with both the brokerage and insurance sectors experiencing declines [3][7] Summary by Sections Market Review - The non-bank financial index decreased by 1.3%, with the brokerage index down by 1.5% and the insurance index down by 0.5% [3][7] - Average daily trading volume in the stock market was 831 billion yuan, a decrease of 3.8% from the previous week [14] Industry News - The Lujiazui Forum indicated a clear direction for capital market reforms, with the China Securities Regulatory Commission (CSRC) emphasizing the need to embrace new productive forces and enhance investor protection [3][19] - The CSRC released eight measures to deepen the reform of the Sci-Tech Innovation Board, aiming to improve the inclusiveness of the capital market [19] Investment Recommendations - For brokerages, the report suggests focusing on merger and acquisition opportunities, high asset returns, and improving return on equity (ROE) [3] - In the insurance sector, the introduction of a tiered agent system is expected to enhance the quality of the workforce, while the stabilization of long-term interest rates and positive expectations for capital market reforms are seen as beneficial [3]

Group 1: Economic and Policy Insights - The central bank is considering including secondary market transactions of government bonds in its monetary policy toolbox to enhance liquidity and interest rate pricing [7] - As of May 2024, the central bank holds approximately 1.52 trillion yuan in government bonds, accounting for only 4.8% of the total outstanding bonds, which is significantly lower than the ratios of the Federal Reserve and the Bank of Japan [7] - The current monetary policy toolbox in China is relatively ample, with room for further reduction in the reserve requirement ratio [12] Group 2: Food and Beverage Industry - The food and beverage sector saw a decline of 5.01% last week, with the overall market sentiment affected by fluctuations in the price of premium liquor [15] - The white liquor market is experiencing price volatility, with the price of Moutai dropping to 2,200 yuan, a decrease of 120 yuan week-on-week [16] - The beer sector is expected to benefit from the upcoming European Cup and summer consumption peak, with a recommendation to focus on high-end beer brands [17] Group 3: Electronic Industry Developments - The launch of HarmonyOS NEXT and Pangu Model 5.0 at the Huawei Developer Conference highlights the advancement of Huawei's AI ecosystem, which is expected to drive a new wave of device upgrades [21] - The electronic industry is currently in a recovery phase, with valuations at historical lows, suggesting potential investment opportunities in AI chips and IoT [25] - The semiconductor sector is showing signs of resilience, with a focus on domestic alternatives and innovation-driven growth [25] Group 4: Chemical Industry Analysis - The chemical industry is in the early stages of capacity clearance, with a decline in capital expenditure ratios indicating tighter control over production [27] - Key sub-sectors such as polyester and fluorochemicals are showing signs of recovery, with leading companies experiencing faster profit recovery [31] - The overall competitive landscape remains intense, necessitating careful monitoring of capacity investments and profitability trends [28] Group 5: Textile and Apparel Sector - The sewing machinery industry is under pressure, with a projected production decline of approximately 11% in 2023, but inventory levels are decreasing [32] - The trend towards "small batch quick response" in the textile industry is driving demand for digital management and intelligent equipment [33] - Companies like Jack Sewing are innovating to meet market demands, with significant pre-orders for new products indicating a positive market response [34] Group 6: Pharmaceutical and Biotechnology Sector - The pharmaceutical sector has seen a decline of 2.72% recently, with a focus on high-quality stocks as mid-year earnings reports begin to emerge [41] - The market is currently characterized by low valuations, with a PE ratio of 24.9, suggesting potential for recovery in high-growth segments [41] - Investment opportunities are identified in innovative drugs, traditional Chinese medicine, and blood products, with specific stock recommendations provided [43] Group 7: Beauty and Personal Care Industry - The beauty and personal care sector underperformed, with a decline of 2.98% compared to the broader market [44] - Sales data from the "618" shopping festival indicates a modest growth in skincare and makeup categories, with top brands showing significant sales increases [45] - The market dynamics suggest a focus on high-quality domestic brands as potential investment opportunities [44]

Investment Rating - The industry investment rating is "Market Weight" indicating that the industry index is expected to perform within -10% to 10% relative to the CSI 300 index over the next six months [40]. Core Insights - The overall capacity of the basic chemical industry is still in the early stages of clearing in 2023, with intense competition persisting. Despite a peak in capital expenditure in 2022, both ROE and cash flow have shown a downward trend in 2023, leading to a contraction in capacity [7][38]. - Certain sub-industries have shown faster capacity clearing, with leading companies recovering profits more quickly. Key companies to watch include Tongkun Co., Ltd. and Xinfengming, as well as Yun Tianhua in phosphate chemicals and Juhua Co. in fluorine chemicals [38][39]. Summary by Sections Financial Indicators - Three financial indicators were selected for analysis: capital expenditure/depreciation and amortization, ROE (diluted), and net cash flow from operating activities/revenue. These indicators help assess the capacity clearing situation in the chemical industry over the past decade [5][7]. - The capital expenditure/depreciation ratio has decreased in 2023 compared to 2022, indicating better capacity control in certain sub-sectors [7][9]. Sub-sector Analysis - The polyester sector has seen a significant reduction in capital expenditure, with leading companies like Tongkun and Xinfengming showing improved ROE in 2023, reflecting a stronger competitive landscape [12][10]. - The fluorine chemical sector, particularly in refrigerants, has experienced a decline in capital expenditure, yet leading companies like Juhua have shown a recovery in ROE [21][22]. - The adhesive and tape sector has also seen rapid capacity clearing, although profitability varies significantly among companies [26][27]. Investment Recommendations - Focus on sub-industries with rapid capacity clearing and strong recovery in leading companies, such as polyester, phosphate chemicals, and fluorine chemicals. Other sectors like coatings and adhesives are also worth monitoring for potential recovery [38][39].

Investment Rating - The report suggests a positive outlook for the electronic sector, recommending a focus on AI chips, optical modules, cyclical bottoming, domestic substitution, and IoT as the four main investment themes [7][10]. Core Insights - The launch of HarmonyOS NEXT and Pangu Model 5.0 at the Huawei Developer Conference 2024 highlights Huawei's system-level AI ecosystem development, which is expected to empower terminal devices and stimulate a new wave of device upgrades [7][8]. - The electronic industry is currently in a phase of supply-demand balance recovery, with valuations at historical lows, indicating potential for growth [7][10]. - The semiconductor sector has shown resilience, with the semiconductor sub-sector rising by 3.08% and outperforming the broader market [27][29]. Summary by Sections Industry Overview - The electronic sector is experiencing a recovery phase, with demand gradually improving and prices returning to normal levels. The report emphasizes the importance of domestic production capabilities amid international pressures [10][21]. Key Developments - HarmonyOS NEXT has undergone significant upgrades, featuring a new architecture that eliminates reliance on Android code, thus enhancing its capabilities for a fully integrated ecosystem [8]. - Pangu Model 5.0 has been upgraded across three dimensions: full series, multi-modal, and strong cognitive abilities, making it suitable for various applications [9][15]. Market Performance - The report notes that the electronic industry outperformed the market, with the Shenzen 300 index down by 1.30% while the Shenwan electronic index rose by 1.86%, marking a 3.16 percentage point outperformance [27][29]. - As of June 21, 2024, the electronic sub-sectors showed varied performance, with semiconductor and consumer electronics sectors gaining 3.08% and 3.11% respectively [27][29]. Investment Recommendations - The report advises investors to focus on AI-driven sectors, high elasticity segments expected to bottom out, and domestic substitution in the semiconductor supply chain [10][21]. - Specific companies to watch include Cambricon, Haiguang Information, and Longxin Zhongke in the AI chip space, as well as various players in the optical device and storage sectors [10].

行 业 研 究 行 业 周 报 [证券分析师 Table_Authors] 周啸宇 S0630519030001 zhouxiaoy@longone.com.cn 联系人 张帆远 zfy@longone.com.cn 联系人 赵敏敏 zmmin@longone.com.cn [table_stockTrend] -49% -38% -28% -17% -7% 4% 15% 23-06 23-09 23-12 24-03 24-06 申万行业指数:电力设备(0763) 沪深300 [相关研究 table_product] 1.行业出清拐点将至,现金流及资产 负债表静待修复 ——光伏行业2023 年报及2024一季报综述 2.光伏新技术产业化加快,电动车需 求恢复——电力设备新能源行业周 报(2023/6/26-2023/7/02) [table_invest] 标配 [Table_NewTitle 欧洲市场拓展加速 ],构网型储能热度提 升 ——电池及储能行业周报(2024/06/17-2024/06/23) [table_main] 投资要点: ➢ 市场表现:本周(6/17-6/23)申万电池板块整体下跌1. ...