Investment Rating - The report provides a positive outlook for the basic chemical industry, indicating potential improvements in supply and demand due to ongoing anti-involution policies [6]. Core Insights - The anti-involution policies are expected to enhance the supply-demand dynamics within the industry, particularly in the pesticide sector, where inventory reduction has led to price increases [12]. - The report highlights significant price movements in key products, with notable increases in herbicide prices, such as glyphosate, which rose to 25,301 CNY/ton, reflecting a 2.03% increase week-on-week and a 7.18% increase year-to-date [6][12]. - The report suggests investment opportunities in various sectors, including integrated refining and chemical companies, leading tire manufacturers, and firms involved in new material production [13]. Summary by Sections 1. Industry News and Event Commentary - The central government is focusing on promoting a unified national market and addressing low-price competition, which is expected to improve the overall market environment [12]. - The pesticide industry has shown significant inventory reduction, with glyphosate prices increasing due to tighter market supply [12]. 2. Chemical Sector Weekly Performance - The Shanghai Composite Index rose by 1.54%, while the basic chemical index increased by 0.80%, indicating a lag behind the broader market [14]. - The top-performing sub-sectors included oil and gas engineering, polyester, and compound fertilizers, while other plastic products and textile chemicals saw declines [15][16]. 3. Key Product Price Movements - Notable price increases were observed in butanone (12.43%), TDI (5.54%), and dichloromethane (3.97%), while acetone and NYMEX natural gas experienced significant declines [24][25]. - The report also tracks price spreads, with significant increases in the spreads for dimethyl ether and PET bottle chips, while the spreads for adipic acid and acetic acid saw substantial declines [26][27]. 4. Investment Recommendations - The report recommends focusing on integrated refining and chemical companies such as Hengli Petrochemical and Rongsheng Petrochemical, as well as leading firms in the refrigerant and tire manufacturing sectors [13]. - It also highlights opportunities in the pesticide sector due to improving supply-demand conditions and suggests monitoring companies involved in high-end engineering plastics and semiconductor materials [13].

Investment Rating - The report rates the beauty and personal care industry as "Positive" for investment [3]. Core Insights - The beauty and personal care sector has shown strong performance, with a cumulative increase of 6.90% as of June 2025, outperforming the market by 6.87 percentage points [7]. - The industry is entering a stable development phase, with performance differentiation among companies. Leading firms like Proya and Marubi are achieving steady growth, while emerging material companies like Jinbo Bio and Juzi Bio are experiencing rapid growth [9]. - The cosmetics market is maturing, with a slight decline in market size expected in 2024, projected at 774.645 billion yuan, down 2.83% year-on-year [19]. Summary by Sections Market Review - The beauty and personal care sector has shown a strong performance, with the beauty care segment outperforming the market [7][9]. - The cosmetics market is transitioning to a stable growth phase, with a strong siphoning effect observed during major shopping events like "618" and "Double Eleven" [18]. Cosmetics - The cosmetics market is experiencing a stable growth phase, with a year-on-year increase of 4.1% in the first five months of 2025, compared to a decline of 1.1% in 2024 [18]. - The market size for cosmetics is projected to be 774.645 billion yuan in 2024, reflecting a slight decline from previous years [19]. - Domestic brands are gaining market share, with the market share of domestic products reaching 55.7% in 2024 [45]. Medical Aesthetics - The non-surgical medical aesthetics market is growing rapidly due to its safety and ease of operation, with a projected compound annual growth rate (CAGR) of 15%-20% over the next five years [55]. - The market for collagen products is expected to reach 58.57 billion yuan by 2025, with significant growth anticipated in the coming years [65]. Personal Care - The personal care segment has shown strong growth, driven by new consumer trends and increased awareness of personal health care [91]. - The online penetration rate for personal care products is currently low, indicating significant growth potential in e-commerce [97].

Group 1: Pharmaceutical and Biotechnology Industry - The pharmaceutical and biotechnology sector saw an overall increase of 3.64% from June 30 to July 4, outperforming the CSI 300 index by 2.1 percentage points [7] - The sector's year-to-date growth is 10.10%, ranking fourth among 31 industries, with a current PE valuation of 28.44 times, indicating a 127% premium over the CSI 300 [7] - Key sub-sectors that performed well include chemical pharmaceuticals, medical services, and biological products, with respective increases of 5.03%, 4.47%, and 4.40% [7] - The National Healthcare Security Administration and the National Health Commission have introduced measures to support the high-quality development of innovative drugs, emphasizing a full-chain support approach [8] - The approval of innovative drugs like Dize Pharmaceutical's Shuwotini in the U.S. highlights the international competitiveness of domestic innovative drugs [9] Group 2: Food and Beverage Industry - The food and beverage sector experienced a decline of 0.62%, underperforming the CSI 300 index by 0.92 percentage points, ranking 20th among 31 sectors [11] - The liquor segment, particularly Moutai, showed signs of stabilization with a price increase, while the overall industry is expected to undergo a clearing process due to macroeconomic pressures [12] - The snack segment is experiencing high growth, driven by consumer demand for healthier options and the rise of new retail channels [26] - The dairy sector is expected to improve as raw milk prices stabilize, leading to enhanced profitability for leading dairy companies [26] Group 3: Electronics Industry - The electronics sector is witnessing a mild recovery, with domestic GPU companies like Moer Thread and Muxi Technology receiving IPO approvals, indicating a capital market push for the domestic GPU industry [20] - The easing of EDA sales restrictions from the U.S. is expected to provide short-term relief, but long-term development of domestic EDA remains critical [23] - The sector's overall performance lagged behind the CSI 300 index, with a PE ratio of 52.63 times, indicating a need for cautious investment [24] Group 4: Consumer Goods Industry - The consumer goods sector is facing slow recovery, with traditional food and beverage demands under pressure, but structural opportunities are emerging in high-growth segments like snacks and beer [25] - The beer segment is expected to benefit from improved demand and cost reductions, with leading brands like Qingdao Beer and Yanjing Beer showing strong growth potential [26] - The dairy industry is poised for recovery as supply-demand dynamics improve, with a focus on profitability among leading companies [26] Group 5: Refrigeration Equipment Industry - The household refrigeration equipment market is entering a phase of competition driven by replacement demand, with leading companies leveraging supply chain advantages [28] - The potential for overseas expansion is significant, particularly in emerging markets, as domestic companies adapt to changing global trade policies [29] - The demand for specialized refrigeration solutions in data centers is increasing, necessitating enhanced design and operational capabilities [30]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock price in the next six months [1][5]. Core Insights - The company has demonstrated resilience in its core automotive interior business, achieving a revenue of 2.098 billion yuan in 2024, a year-on-year increase of 16.35%, significantly exceeding its target [5]. - The first unlocking phase of the employee stock ownership plan has been completed, with 36 holders unlocking a total of 4.6706 million shares, accounting for 0.32% of the total share capital [5]. - The company is expected to see a recovery in profits in 2025, with a projected net profit of 2.17 billion yuan, reflecting a growth trajectory supported by product structure optimization and the potential of the filter business as a second growth driver [5]. Financial Performance Summary - **Revenue Forecast**: The company’s main revenue is projected to grow from 2.098 billion yuan in 2024 to 2.343 billion yuan in 2025, representing a 12% year-on-year increase [4][6]. - **Net Profit Forecast**: The net profit is expected to rise from 163 million yuan in 2024 to 217 million yuan in 2025, marking a 33% increase [4][6]. - **Earnings Per Share (EPS)**: EPS is forecasted to increase from 0.11 yuan in 2024 to 0.15 yuan in 2025 [4][6]. - **Gross Margin**: The gross margin is expected to stabilize at around 24% from 2025 onwards [4][6]. - **Return on Equity (ROE)**: ROE is projected to improve from 4% in 2024 to 6% in 2025 [4][6]. Business Segment Performance - **Automotive Interior Business**: This segment achieved a revenue of 1.926 billion yuan in 2024, with a year-on-year growth of 20.88%, driven by the recovery in the automotive industry and an increase in orders for new energy vehicle components [5]. - **New Energy Business**: The new energy segment faced challenges, with revenue declining by 17.99% to 172 million yuan in 2024 due to insufficient grid consumption capacity and falling market prices [5]. - **Filter Business**: The company’s filter business is expected to contribute positively as production ramps up, with plans to launch new products in 2025 [5].

Investment Rating - The report assigns an "Overweight" rating for the food and beverage industry, indicating a positive outlook compared to the broader market index [1][57]. Core Insights - The report emphasizes the importance of new product categories and channels, highlighting potential alpha opportunities within the food and beverage sector [4]. - The secondary market performance shows a decline of 0.62% in the food and beverage sector, underperforming the CSI 300 index by 0.92 percentage points, ranking 20th among 31 sectors [7][12]. - The report identifies key trends in various sub-sectors, including the stabilization of liquor prices, improving beer demand, and high growth potential in the snack segment [7][27]. Summary by Sections 1. Secondary Market Performance - The food and beverage sector experienced a decline of 0.62%, with the liquor sub-sector showing a relative increase of 1.20% [12]. - Top-performing stocks included Huang Shang Huang, Jiu Gui Jiu, and ST Tong Pu, with gains ranging from 5.12% to 11.71% [12][17]. 2. Major Consumer Goods and Raw Material Prices - Liquor prices as of July 7, 2025, show a mixed trend, with the 2024 Flying Moutai price at 1,890 RMB for scattered bottles, down 160 RMB from the previous month [21]. - Beer production in May 2025 reached 3.584 million kiloliters, reflecting a year-on-year increase of 1.30% [27]. - Dairy prices indicate a stable trend, with fresh milk priced at 3.04 RMB per kilogram, while pork prices are at 20.58 RMB per kilogram, showing a slight increase [29]. 3. Industry Dynamics - The report notes that there are currently 65,900 beer-related enterprises in China, predominantly located in East and Northeast regions [54]. - Recent promotional activities, such as the Taobao flash sale, have significantly boosted sales in the liquor and dairy sectors [54]. 4. Core Company Dynamics - Key company updates include Kuozi Jiao's announcement of a cash dividend of 1.30 RMB per share, totaling 778 million RMB [56].

Investment Rating - The report suggests a cautious optimism for the electronic sector, indicating a moderate recovery in demand and price stabilization, with a recommendation to gradually accumulate positions in specific segments [7][8]. Core Views - The domestic GPU industry is entering a critical phase of capitalization, with companies like Moer Thread and Muxi Technology having their IPO applications accepted, signaling a potential acceleration in the penetration rate of domestic AI chip supply chains driven by technological breakthroughs, policy support, and market substitution [7][13][14]. - The lifting of export restrictions on EDA software by the U.S. for major companies like Synopsys, Cadence, and Siemens is seen as a short-term easing of constraints, but the long-term development of domestic EDA remains urgent [7][13]. - The electronic industry is currently experiencing a mild recovery, with a focus on four main investment themes: AIOT, AI-driven technologies, equipment materials, and consumer electronics [7][8]. Summary by Sections Industry News - Major EDA companies have resumed supply to China, which may enhance the local chip design capabilities [13]. - Moer Thread's IPO aims to raise 8 billion yuan, focusing on high-performance computing solutions [13]. - Muxi Technology's IPO seeks to raise 3.9 billion yuan, emphasizing its competitive GPU products [14]. - Samsung has completed the development of its 1c nanometer DRAM process, preparing for mass production [14]. - Apple is in the prototype testing phase for its foldable iPhone, with a potential release in late 2026 [14]. Market Performance - The electronic sector underperformed the broader market, with the Shenwan Electronic Index rising by 0.74% compared to a 1.54% increase in the CSI 300 Index [21]. - The semiconductor sub-sector saw a decline of 1.18%, while electronic components increased by 6.82% [21][23]. Investment Recommendations - Focus on companies benefiting from strong domestic and international demand in the AIOT sector, such as Lexin Technology and Hengxuan Technology [8]. - In the AI innovation-driven segment, attention is drawn to computing chips from companies like Cambrian and Haiguang Information [8]. - Emphasis on upstream supply chain replacements in semiconductor equipment and materials, with companies like North China Hua Chuang and Micro Company highlighted [8].

Group 1: Beer Industry - The beer sector is experiencing marginal demand improvement, with cost reductions enhancing profit elasticity. In 2024, terminal consumption remains weak, but leading beer companies are working on channel inventory destocking, with inventory levels at historical lows. The sector's valuation has dropped to a five-year low, but there is a high certainty of sales data recovery in 2025 due to low base effects and consumption policy stimuli, which may catalyze valuation increases. Additionally, costs are in a downward cycle, and product structure optimization is ongoing, indicating potential profit elasticity. Companies to watch include Qingdao Beer and Yanjing Beer, which have strong growth momentum and stable profit improvement [2][41]. - The beer production volume has stabilized over the past four years, with expectations for steady production in the next five years. The main consumer demographic for beer is aged 18-49, and after peaking in 2013, beer production has gradually declined. The production volume is expected to remain stable, with a slight decrease projected for 2024 [9][11]. - The beer industry has a high concentration, with the top five companies holding over 90% market share. Price increases remain a key growth driver for leading companies, particularly in the 6-10 yuan price range, as low-end products upgrade and high-end demand recedes [13][17]. Group 2: Snack Industry - The snack industry is entering a stable growth phase, with accelerated penetration into lower-tier markets and continued channel benefits. The retail market for leisure food and beverages is projected to reach 3.7 trillion yuan in 2024, with a year-on-year growth of 4.1%. The lower-tier market is expected to grow faster than higher-tier markets, with a projected market size of 1.18 trillion yuan by 2025 [44][45]. - Health-conscious and quality-oriented demands are increasingly shaping the snack market. Products like konjac and quail eggs are gaining popularity due to their health benefits and taste experiences. The konjac market is expected to continue its rapid growth, with significant sales increases noted in recent quarters [68][79]. - The rise of membership supermarkets is creating new opportunities for snack growth. Companies are actively expanding their presence in membership channels like Sam's Club and Hema, which are becoming key points for product launches and rapid sales growth [61][79]. Group 3: Dairy Industry - The dairy industry is experiencing a gradual improvement in supply-demand dynamics, with expectations for a turning point in the raw milk cycle. The price of fresh milk has been declining, leading to increased losses in dairy farming, but a reduction in raw milk inventory is anticipated as summer demand for cold dairy products rises. This could enhance the profitability of dairy companies once prices stabilize [2][82]. - The dairy sector has faced three rounds of price declines since 2008, with the current cycle extending due to weak demand and excess supply. The total milk production in China is projected to decrease for the first time since 2018, indicating a significant adjustment phase for the industry [88].

1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - The domestic sales growth of traditional household refrigeration equipment is expected to shift from high - speed to a relatively moderate range, and attention should be paid to factors such as policy impact, raw material costs, and market competition [4][49]. - The overseas expansion potential of domestic household refrigeration equipment enterprises is promising, and emerging markets have broad development prospects [49]. - In the field of dedicated refrigeration equipment, with the development of downstream industries such as data centers, there is a higher demand for the efficiency of refrigeration equipment, and enterprises need to provide comprehensive solutions [41][49]. - Suggest paying attention to industry leaders in the household refrigeration equipment field and domestic companies with rich reserves in data - center refrigeration solutions in the dedicated refrigeration equipment field [49]. 3. Summary According to Relevant Catalogs 3.1 Traditional Household Refrigeration Equipment - **Air Conditioner**: In 2025, the domestic sales of air conditioners maintained a strong trend in the first half of the year, with accelerated shipment growth in the second quarter due to a low base last year and promotional activities. The "trade - in" policy was optimized, with an increased subsidy limit. However, considering the "low - before - high" shipment pattern in 2024, the marginal pulling effect of the "trade - in" policy on short - term shipments may slow down. Attention should be paid to raw material cost changes, and online channels may intensify price competition in segmented markets [4][5]. - **Refrigerator and Freezer**: After relatively rapid growth in 2023 - 2024, the production growth rate of refrigerators and freezers slowed down in 2025. In May 2025, refrigerator production increased by 2.0% year - on - year, with domestic sales increasing by 13.7% and exports decreasing by 6.4%. Freezer production increased by 7.5% year - on - year, with domestic sales and exports increasing by 2.5% and 3.1% respectively. North American exports declined significantly, while African exports grew rapidly. Future production schedules are expected to be adjusted according to market demand and policy changes [23]. 3.2 Comprehensive Leaders and Dedicated Refrigeration Equipment - **Samsung Electronics**: In May 2025, Samsung Electronics acquired the German heating, ventilation, and air - conditioning solutions provider FläktGroup for 1.5 billion euros to strengthen its investment in the HVACR field and enter the data - center refrigeration market [29]. - **Daikin**: In 2023, Daikin acquired the American custom air - handling equipment manufacturer Alliance Air Products to meet the growing demand for data - center cooling solutions. In the fiscal year 2024, Daikin achieved both revenue and profit growth and expects stable profit growth in the fiscal year 2025 [34]. - **Trane Technologies**: The organic revenue of Trane Technologies has been growing for multiple quarters. In the first quarter of the fiscal year 2025, the company's overall organic revenue increased by 11% year - on - year, and the adjusted earnings per share increased by 26% year - on - year. Its commercial HVAC orders in the Americas reached a record high [35]. - **Data Center Refrigeration**: The development of AI and other industries is expected to drive the construction of data centers. By 2025, new and renovated large - scale and super - large - scale data centers are required to reduce their power usage effectiveness (PUE). Efficient refrigeration solutions have become an important R & D direction for relevant enterprises. Different cooling technologies have their own characteristics, and appropriate solutions should be selected according to specific scenarios [41][43]. 3.3 Summary and Investment Suggestions - **Summary**: The traditional household refrigeration equipment industry is facing challenges such as policy changes, cost fluctuations, and market competition, while the dedicated refrigeration equipment industry has opportunities due to the development of downstream industries [49]. - **Investment Suggestions**: In the household refrigeration equipment field, pay attention to industry leaders such as Midea Group, Gree Electric Appliances, and Haier Smart Home, as well as upstream component companies. In the dedicated refrigeration equipment field, focus on domestic companies with rich reserves in data - center refrigeration solutions, such as Invicom and Shenling Environment [49].

Group 1 - The "Beautiful America Act" signed by the US President aims to significantly reduce taxes, increase defense spending, and cut social welfare and new energy subsidies, indicating a potential shift in fiscal policy [8][17][18] - The US labor market shows signs of resilience with a non-farm employment increase of 147,000 in June, surpassing expectations, but the private sector added only 74,000 jobs, highlighting underlying weaknesses [16][17][18] - In China, the "anti-involution" policy is expected to synchronize with market-driven forces, impacting industries like photovoltaic, refining, and steel, which may affect upstream raw material prices [8][10] Group 2 - The energy storage industry is experiencing a rebound after a period of decline, with demand expected to surge in emerging markets, particularly in China, the US, and Europe [11][13][14] - The global energy storage demand is projected to grow significantly, with China's cumulative installed capacity expected to reach 137.9 GW by the end of 2024, a year-on-year increase of 59.4% [13][14] - The report emphasizes the importance of core drivers for energy storage installations, including consumption, profitability, and reliability of electricity supply, with extreme weather and geopolitical events increasing backup power demand [12][14] Group 3 - The A-share market shows mixed performance, with the Shanghai Composite Index closing at 3,472 points, facing resistance at the 3,500-point level, while the Shenzhen and ChiNext indices experienced declines [27][28] - The gaming sector led the market with a 1.65% increase, while sectors like energy metals and wind power equipment saw declines, indicating sector-specific volatility [29][30] - The report highlights the importance of monitoring market liquidity and interest rates, with the 10-year Chinese government bond yield declining to 1.6433% [34]

Employment Data Overview - In June 2025, the U.S. non-farm payrolls increased by 147,000, exceeding expectations of 110,000 and slightly up from the previous month's 144,000[2] - The unemployment rate decreased from 4.2% to 4.1%, indicating a slight improvement in the labor market[2] Private vs. Government Employment - Private sector employment added only 74,000 jobs, nearly half of May's increase of 137,000, highlighting a significant slowdown[2] - Government employment surged by 73,000, with state government jobs rising to 47,000, the highest since February 2023, signaling a shift in fiscal policy towards expansion[2] Sector-Specific Insights - Manufacturing jobs decreased by 7,000, while wholesale employment also fell by 7,000, attributed to inventory buildup and weak demand[2] - Service sector jobs saw a decline of over 53%, with healthcare and accommodation sectors experiencing the most significant drops[2] Wage and Participation Rate Trends - The labor force participation rate fell to 62.3%, the lowest since 2023, indicating a shrinking workforce[2] - Hourly wage growth slowed, particularly in durable goods manufacturing and healthcare, with rates dropping to -0.3% and -0.1% respectively[2] Market Reactions and Future Outlook - Following the employment data release, market expectations for a September interest rate cut decreased from 71.5% to 68.3%[3] - The strong government employment figures and the passage of the "Beautiful America Act" suggest a potential shift towards more expansive fiscal policies in the second half of the year[3]