Group 1 - The report highlights that the tariff impact has not yet manifested, and demand-side expectations may become crucial, as indicated by the US May CPI data showing a year-on-year increase of 2.4% and a month-on-month increase of 0.1% [5][6] - The refrigerant industry continues to experience high prosperity, with prices for third-generation refrigerants R32, R125, and R134a increasing by 4.08%, 1.11%, and 2.11% respectively as of May 30, 2025 [10][11] - The short-term fundamentals for adipic acid are expected to improve, with market prices rising to 7233 yuan/ton, reflecting a 6.63% increase [13][14] Group 2 - The report discusses the financial support measures issued by the central bank and the State Administration of Foreign Exchange to explore cross-strait integration development in Fujian [19] - It notes that the Chinese government is willing to strengthen market connectivity and industrial collaboration with the European Central Bank [20] - The report mentions the key parts of a US-UK trade agreement that will lower tariffs on car exports from the UK to the US [20] Group 3 - The report provides an overview of the A-share market, indicating that the Shanghai Composite Index closed slightly higher at 3402 points, with mixed performance among major indices [21][22] - It highlights that the precious metals sector saw significant gains, while the white liquor sector experienced declines [23][25] - The report includes market data showing the closing prices and changes for various indices and commodities, such as the WTI crude oil price at $66.64 per barrel [27]

Inflation Data Summary - The U.S. May CPI year-on-year increased to 2.4%, slightly below the expected 2.5% and up from the previous 2.3%[2] - Month-on-month CPI rose by 0.1%, lower than the expected 0.3% and previous 0.2%[2] - Core CPI year-on-year remained at 2.8%, matching the previous value but below the expected 2.9%[2] Key Influencing Factors - Energy service price growth slowed to 0.4% from 1.5%, primarily due to a drop in natural gas prices, which fell from 3.7% to -1.0%[2] - Core goods prices saw a decline, with a month-on-month change of 0%, down from 0.1%, driven by reduced demand following a consumer purchasing surge in Q1[2] - Core services prices increased by 0.2%, down from 0.3%, influenced by a cooling rental market[2] Market Reactions and Expectations - Following the CPI release, U.S. stock markets rose, while bond yields and the dollar index fell, indicating strong expectations for interest rate cuts[2][4] - The market anticipates a 99.8% probability of no rate change in the upcoming June meeting, with a significant chance of cuts by September[4] Risks and Outlook - The impact of tariff negotiations on inflation expectations is significant, with one-year inflation expectations rising to 6.6%, exceeding actual inflation rates[2] - Potential risks include unexpected outcomes from tariff negotiations leading to upward pressure on inflation expectations and a downturn in the U.S. economy[2]

Group 1: Equipment Manufacturing Industry - The equipment manufacturing industry shows improving prosperity, with the manufacturing PMI for May 2025 at 49.5%, up 0.5 percentage points from the previous month [5][6] - Large enterprises have a PMI above the critical point, while small and medium-sized enterprises remain below it, with small enterprises showing a 0.6 percentage point increase in May [5] - The robot industry is advancing applications in the pharmaceutical sector, with a strategic partnership between Yujian Technology and Yaoshi Bang to develop intelligent robots for medical applications [6][7] Group 2: Refrigerant Industry - The refrigerant industry continues to experience high prosperity, with prices for third-generation refrigerants R32, R125, and R134a increasing by 4.08%, 1.11%, and 2.11% respectively as of May 30, 2025 [11][12] - The production of household air conditioners is expected to maintain year-on-year growth, supporting demand for refrigerants [12] - Investment recommendations focus on leading companies in the refrigerant industry and those with a complete industrial chain, such as Juhua Co., Ltd. and Sanmei Co., Ltd. [12] Group 3: Adipic Acid Industry - The adipic acid market is showing positive short-term fundamentals, with prices rising to 7,233 yuan/ton, an increase of 6.63% [13][14] - The demand for adipic acid is supported by significant expansions in downstream nylon production, with domestic nylon 66 capacity expected to reach 1.27 million tons by the end of 2024 [14][16] - Integrated enterprises in the adipic acid sector are expected to have a competitive advantage due to their scale and complete industrial chain, with recommendations to focus on companies like Hualu Hengsheng and Huafeng Chemical [17]

Investment Rating - The report maintains a positive outlook on the refrigerant industry, indicating a high level of prosperity and suggesting that related companies are likely to see significant improvements in profitability [8][66]. Core Insights - The prices of third-generation refrigerants R32, R125, and R134a have increased as of May 30, 2025, with respective prices of 51,000 CNY/ton, 45,500 CNY/ton, and 48,500 CNY/ton, reflecting increases of 4.08%, 1.11%, and 2.11% compared to the end of April [8][15]. - The production quotas for second-generation refrigerants are set to decrease in 2025, while the total production quota for third-generation refrigerants will remain at baseline levels, leading to a tightening supply-demand relationship for both generations [8][66]. - The domestic production of household air conditioners is expected to maintain a year-on-year growth trend from June to August 2025, with production volumes of 20.5 million units, 17.13 million units, and 12.09 million units, representing year-on-year growth rates of 11.50%, 6.30%, and 2.70% respectively [8][39]. Summary by Sections Refrigerant Tracking - As of May 30, 2025, the total inventory of R32, R134a, and R125 refrigerants was 4,042 tons, 3,380 tons, and 2,623 tons respectively, with slight fluctuations in inventory levels [8][21]. - The production of R22 in May 2025 was 32,082 tons, showing a year-on-year decrease of 15.19% but a month-on-month increase of 9.94% [8][28]. Fluoropolymer - The prices of fluoropolymers have shown fluctuations, with PTFE, PVDF, and HFP prices recorded at 41,000 CNY/ton, 62,000 CNY/ton, and 37,000 CNY/ton respectively as of May 30, 2025 [8][49]. - The production of PTFE, PVDF, and HFP in May 2025 was 12,946 tons, 10,538 tons, and 7,371 tons respectively, with year-on-year increases of 28.13%, 30.42%, and 34.02% [8][56]. Industry News - A new technology for the resource conversion of trifluoromethane has been developed, achieving international leading standards and promising significant reductions in greenhouse gas emissions [8][59]. - Juhua Co., Ltd. has been actively increasing its shareholding, reflecting confidence in future performance and growth [8][60].

Investment Rating - The report maintains a positive outlook on the refrigerant industry, indicating a high level of prosperity and suggesting that related companies are likely to see significant improvements in profitability [8][66]. Core Insights - The prices of third-generation refrigerants R32, R125, and R134a have increased as of May 30, 2025, with respective prices of 51,000 CNY/ton, 45,500 CNY/ton, and 48,500 CNY/ton, reflecting increases of 4.08%, 1.11%, and 2.11% compared to the end of April [8][15]. - The production quotas for second-generation refrigerants are set to decrease in 2025, while the total production quota for third-generation refrigerants will remain at baseline levels, leading to a tightening supply-demand relationship for both generations [8][66]. - The domestic production of household air conditioners is expected to maintain a year-on-year growth trend from June to August 2025, with production volumes of 20.5 million units, 17.13 million units, and 12.09 million units, representing year-on-year growth rates of 11.50%, 6.30%, and 2.70% respectively [8][39]. Summary by Sections Refrigerant Tracking - As of May 30, 2025, the total inventory of R32, R134a, and R125 refrigerants was 4,042 tons, 3,380 tons, and 2,623 tons respectively, showing a mixed change compared to the previous month [8][21]. - The production of R22 in May 2025 was 32,082 tons, a year-on-year decrease of 15.19% but a month-on-month increase of 9.94% [8][28]. Fluoropolymer - The prices of fluoropolymers have shown fluctuations, with PTFE, PVDF, and HFP prices recorded at 41,000 CNY/ton, 62,000 CNY/ton, and 37,000 CNY/ton respectively as of May 30, 2025 [8][49]. - The production of PTFE, PVDF, and HFP in May 2025 was 12,946 tons, 10,538 tons, and 7,371 tons respectively, with year-on-year increases of 28.13%, 30.42%, and 34.02% [8][56]. Industry News - A new technology for the resource conversion of trifluoromethane has been developed, achieving international leading levels and promising significant reductions in greenhouse gas emissions [8][59]. - Juhua Co., Ltd. has been actively increasing its shareholding, reflecting confidence in its future performance [8][60][61]. Investment Recommendations - The report suggests focusing on leading companies in the refrigerant industry and those with well-established supply chains in the fluorochemical sector, such as Juhua Co., Ltd., Sanmei Co., and Jinshi Resources [8][66].

Investment Rating - The industry investment rating is "Overweight" indicating that the industry index is expected to outperform the CSI 300 index by 10% or more over the next six months [33]. Core Insights - The manufacturing PMI for May 2025 improved to 49.5%, up by 0.5 percentage points from the previous month, with large enterprises performing better than smaller ones [9][10]. - The equipment manufacturing, high-tech manufacturing, and consumer goods manufacturing PMIs were all in the expansion zone, indicating positive growth trends in these sectors [9]. - The robot industry is seeing strategic collaborations, such as the partnership between Yujian Technology and Yaoshi Bang to develop intelligent robots for the pharmaceutical sector [13]. - Dazhu CNC has submitted an application for H-share listing in Hong Kong, focusing on PCB production equipment, with a global market share of 6.5% as of 2024 [18][19]. Summary by Sections 1. Macro Data Tracking - The manufacturing PMI for May 2025 is 49.5%, with large enterprises above the critical point and small enterprises showing slight improvement [9]. - Equipment manufacturing PMI is at 51.2%, indicating expansion, while high-energy-consuming industries are below the critical point [9][10]. 2. Robot Industry Dynamics - Yujian Technology and Yaoshi Bang signed a strategic cooperation agreement to develop intelligent robots for various pharmaceutical applications [13]. - Galaxy General has opened seven unmanned pharmacies in Beijing, utilizing humanoid robots for 24-hour service [13]. 3. Hong Kong Listing Dynamics - Dazhu CNC has applied for H-share listing, focusing on PCB production equipment, with significant revenue growth expected in 2024 [18][19]. 4. Focus on Export Chain Enterprises - Companies with proactive overseas capacity layouts may gain market share amid changing competition dynamics due to tariffs [21]. 4.1. Jiechang Drive - Jiechang Drive reported a 20.4% increase in revenue in 2024, with significant growth in medical and home products [22][24]. - The company is expanding its overseas production bases to mitigate tariff risks [24]. 4.2. Yindu Co., Ltd. - Yindu Co., Ltd. achieved a 7.8% increase in overseas sales in 2024, focusing on building a robust overseas warehouse network [28][29]. 5. Market Review - The CSI 300 index rose by 0.88%, while the machinery equipment sector outperformed with a 0.93% increase [30].

Investment Rating - The industry investment rating is "Overweight" indicating that the industry index is expected to outperform the CSI 300 index by 10% or more over the next six months [33]. Core Insights - The manufacturing PMI for May 2025 improved to 49.5%, up by 0.5 percentage points from the previous month, with large enterprises showing better performance [9][10]. - The equipment manufacturing, high-tech manufacturing, and consumer goods manufacturing PMIs were all in the expansion zone, indicating positive growth trends in these sectors [9][11]. - The robot industry is seeing strategic collaborations, such as the partnership between Yujian Technology and Yaoshi Bang to develop intelligent robots for the pharmaceutical sector [13][18]. - Dazhu CNC has submitted an application for H-share listing in Hong Kong, focusing on PCB production equipment, with a global market share of 6.5% as of 2024 [18][19]. Summary by Sections 1. Macro Data Tracking - The manufacturing PMI for May 2025 is 49.5%, with large enterprises above the critical point and small enterprises showing a slight improvement [9]. - The production index and new orders index increased by 0.9 percentage points and 0.6 percentage points, respectively, with the production index at 50.7% [9][10]. - Equipment manufacturing PMI was 51.2%, high-tech manufacturing PMI was 50.9%, and consumer goods manufacturing PMI was 50.2%, all indicating expansion [9][11]. 2. Robot Industry Dynamics - Yujian Technology and Yaoshi Bang signed a strategic cooperation agreement to develop intelligent robots for various pharmaceutical applications [13]. - Galaxy General has opened seven unmanned pharmacies in Beijing, utilizing humanoid robots for 24-hour service [13][18]. 3. Hong Kong Listing Application - Dazhu CNC submitted an application for H-share listing on May 30, 2025, focusing on PCB production equipment with a significant market presence [18][19]. 4. Focus on Export Chain Enterprises - Companies with proactive overseas capacity layouts may gain market share amid changing competition dynamics due to tariffs [21]. - Jiechang Drive has established subsidiaries in multiple countries and is expanding its overseas production capabilities [22][24]. 5. Market Review - The CSI 300 index increased by 0.88%, while the machinery equipment sector rose by 0.93%, outperforming the CSI 300 by 0.05 percentage points [30].

Group 1: Pharmaceutical and Biotechnology Industry - The dual-target antibody sector is experiencing a surge in transactions, with significant interest in innovative pharmaceutical companies. The overall performance of the pharmaceutical and biotechnology sector rose by 1.13% during the week of June 2-8, 2025, outperforming the CSI 300 index by 0.25 percentage points. The current PE valuation for the sector stands at 28.16 times, which is at the historical median level, with a 137% premium over the CSI 300 index [6][7] - BioNTech SE and Bristol-Myers Squibb announced a collaboration to develop and commercialize the dual-specific antibody BNT327, with a total deal value exceeding $9 billion. This antibody targets PD-L1 and VEGF-A and is currently in Phase III clinical trials for small cell lung cancer. The collaboration includes significant upfront payments and milestone payments [7][8] - The report recommends focusing on innovative pharmaceutical companies with differentiated and breakthrough technology routes in the dual-target antibody space, as well as investment opportunities in medical devices, traditional Chinese medicine, chain pharmacies, and medical services [8] Group 2: Food and Beverage Industry - The food and beverage sector saw a decline of 1.06% last week, underperforming the CSI 300 index by 1.94 percentage points. The snack segment performed relatively well, increasing by 4.64%. The top five gainers included Junyao Health, Qinghai Spring, Miaokelando, Youyou Food, and Xiangpiaopiao, with respective increases of 24.43%, 15.38%, 10.11%, 9.57%, and 7.22% [10][11] - The beer sector is entering a peak season, with improved terminal sales. In April, the production of major beer companies in China reached 2.896 million kiloliters, a year-on-year increase of 4.8%. The report anticipates that beer sales will continue to recover as temperatures rise and consumption policies are boosted [12][14] - Investment recommendations include focusing on high-end liquor and regional leaders in the liquor sector, as well as stable operators like Qingdao Beer and growth-oriented companies like Yanjing Beer in the beer sector [14] Group 3: Electronics Industry - Broadcom reported record revenue for Q2 2025, with AI-related revenue growing by 46% year-on-year, becoming a key driver of revenue growth. The company expects continued growth in AI revenue in Q3 2025 [15][16] - SK Hynix surpassed Samsung Electronics for the first time in Q1 2025, achieving a 36% market share in the global DRAM market. The DRAM market is showing signs of recovery, with expectations of price increases in Q2 2025 [17][18] - The report suggests focusing on AIOT, AI-driven sectors, equipment materials, and consumer electronics as key investment themes as the electronics industry experiences a moderate recovery [19] Group 4: Non-Banking Financial Industry - The non-banking financial index rose by 2.0%, outperforming the CSI 300 index by 1.1 percentage points. The securities and insurance indices also saw synchronized increases of 2.4% and 1.0%, respectively [20][21] - The actual controller of several AMC-related securities firms has changed to Central Huijin, which is expected to enhance resource allocation efficiency and promote mergers and acquisitions within the sector [21][22] - Investment recommendations include focusing on large, stable securities firms and comprehensive insurance companies that have competitive advantages [22] Group 5: Basic Chemicals Industry - A major potassium fertilizer contract was signed with India at a price of $349 per ton, reflecting a 23.3% increase from the previous year's price of $283 per ton. This indicates a favorable outlook for the potassium fertilizer market [24][25] - The report highlights the acceleration of consolidation in the carbon fiber industry, suggesting that companies with scale and technological advantages will be key players in the market [25][26] - Investment suggestions include focusing on companies in the agricultural chemicals sector, such as Yanguang Chemical and Guangxin Chemical, which are expected to benefit from favorable market conditions [28]

Investment Rating - The report suggests a positive outlook for the chemical industry, particularly in segments like potassium fertilizers and carbon fiber, indicating potential investment opportunities in leading companies with scale and technological advantages [5][6][7]. Core Insights - The potassium fertilizer market is expected to maintain its favorable conditions following the signing of a major contract between Russia and India at a price of $349 per ton, reflecting a 23.3% increase from the previous year [6][15]. - The carbon fiber industry is undergoing accelerated consolidation, with significant players like Dow and SGL exiting the market, which may create opportunities for companies with strong technological capabilities [7][16][17]. Summary by Sections 1. Industry News and Events - The Indian potassium fertilizer contract was finalized at $349 per ton, with a shipment volume of 600,000 tons, indicating a strong market outlook [6][15]. - The carbon fiber sector is seeing consolidation, with Dow selling its stake in DowAksa and SGL closing its factory in Portugal, suggesting a shift towards companies with competitive advantages [7][16][17]. 2. Chemical Sector Performance - The basic chemical index rose by 2.61% in the week of June 2-6, 2025, outperforming the broader market [21][22]. - Notable stock performances included significant gains in companies like Lianhua Technology and Dazhi Technology, while some companies faced declines [26][28]. 3. Price Trends - Key products such as sulfuric acid and caustic soda saw price increases of 4.67% and 4.56% respectively, while vitamin E prices dropped by 13.46% [32][33]. - The price spread for products like PVC and PET bottles showed significant increases, indicating market dynamics favoring certain chemical products [34][35]. 4. Investment Recommendations - The report recommends focusing on integrated players in the refining and chemical sectors, as well as leaders in the refrigerant and agricultural chemical markets [19][20]. - Companies involved in domestic substitution for high-end materials, such as semiconductor materials and advanced engineering plastics, are highlighted as potential beneficiaries of the domestic manufacturing trend [20].

Trade Data Summary - In May 2025, exports increased by 4.8% year-on-year, down from 8.1% in April, while imports decreased by 3.4% year-on-year, compared to a decline of 0.2% in April[2] - The trade surplus reached $103.22 billion, an increase of $21.85 billion compared to the same month last year[2] - Export growth is expected to remain resilient in June to Q3 due to tariff reductions and pre-Christmas orders, but the overall external demand is still slowing down[2] Export and Import Trends - May exports totaled $316.10 billion, a historical high for the month, but the month-on-month growth was only 0.2%, below the four-year average of 3.48%[2] - The overall external demand is below the boom-bust line, with JPMorgan's global manufacturing PMI at 49.6% in May, indicating a contraction[2] - Imports in May were $212.88 billion, the lowest for the same month since 2021, with a month-on-month decline of 3%[3] Regional Export Performance - Exports to the EU increased by 12.02%, up 3.75 percentage points from April, while exports to the US fell significantly by 34.52%[2] - The ASEAN region saw a decline in exports by 14.84%, reflecting the impact of "export grabbing" on demand[2] Product-Specific Insights - Key products like integrated circuits and automobiles showed significant recovery, while labor-intensive products like toys and footwear remained at low levels due to tariff impacts[2] - The import of crude oil saw a decline of 22.1% year-on-year, while imports of grains and soybeans increased significantly, reflecting a shift in demand[3]