Investment Rating - The report assigns an "Increase" rating to companies such as GoerTek (002241.SZ), Jiahe Intelligent (300793.SZ), and Deep Science and Technology (688328.SH), while "Buy" is assigned to Baiwei Storage (688525.SH) [1][4]. Core Insights - Xiaomi's first AI smart glasses are positioned as a next-generation personal smart device, with prices set at 1999 RMB for the standard version, 2699 RMB for the monochrome electrochromic version, and 2999 RMB for the color electrochromic version [1]. - The introduction of AI glasses is expected to drive a shift from functional accessories to a central hub for cross-scenario interaction within the ecosystem, potentially benefiting the entire industry chain as sales volume expands [4][7]. Hardware Summary - The glasses feature a lightweight design optimized for Asian facial structures, weighing only 40g, enhancing user comfort [2]. - A dual-core architecture extends battery life to 8.6 hours, utilizing a 263mAh silicon-carbon battery [2]. - The glasses incorporate electrochromic technology, allowing color adjustment in 0.2 seconds, catering to various lighting conditions [2]. - Equipped with a 12MP ultra-wide-angle camera, the glasses support 2K video recording and EIS stabilization [2]. Software Summary - The AI functionality is deeply integrated with Xiaomi's ecosystem, enabling voice interaction through "Xiao Ai" for various services such as weather queries and music playback [3]. - The glasses support multi-modal interactions, including AI recognition, voice payment, and real-time translation in multiple languages [3]. - They can seamlessly integrate with popular platforms for video calls and live streaming, acting as a control center for smart home devices [3]. Investment Recommendations - The report suggests that Xiaomi's AI glasses will catalyze significant advancements in practical applications for edge AI devices, with the potential to create a "catalyst effect" in the domestic AI glasses market [4]. - The report recommends focusing on related industry stocks such as Hengxuan Technology, GoerTek, Baiwei Storage, Deep Science and Technology, and Jiahe Intelligent [7].

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - Near the end - of - quarter period, the overall pattern of ample liquidity remained, with minor fluctuations. The stock market reaching a new high this year and the easing of external risks put some pressure on the bond market. However, the weak fundamentals, such as soft inflation and financial data, continued decline in real - estate investment, and PMI still in the contraction range, supported the bond market. The market showed narrow - range fluctuations with a small correction amplitude. The 10 - year Treasury yield rose slightly by 1BP to 1.65%, and the 2 - year Treasury yield dropped by 4BP to 1.36%, making the yield curve steeper [1][19]. - The change in the central bank's monetary policy statement from "choosing the right time to cut the reserve requirement ratio and interest rates" to "flexibly grasping the intensity and rhythm of policies" does not completely rule out the possibility of reserve requirement ratio and interest rate cuts in the third quarter. Given the current insufficient endogenous economic momentum and unresolved external risks, the policy toolbox may still be opened at any time [2][20]. - The central bank's unexpected non - release of Treasury trading data on June 30 extended the mystery timeline. It may be an attempt to maintain the current bond market level as the market has formed a consensus that the start of Treasury trading is a catalyst for the decline in bond market interest rates [2][20]. 3. Summary by Related Catalogs 3.1 Interest - Bearing Bonds: Last Week's Data Review - **Short - term Interest Rates**: From June 23 to 27, DR001 fluctuated around 1.37%, and R001 fluctuated around 1.44% from June 23 to 26 and rose to 1.46% on June 27. Affected by the end - of - quarter period, the 7 - day interest rates increased significantly. DR007 rose from 1.51% on June 23 to 1.70% on June 27 and further to 1.92% on June 30. FR007 rose from 1.57% on June 23 to 1.85% on June 27 and to 1.95% on June 30 [6]. - **Open - Market Operations**: In the last week of the quarter, the central bank increased its capital injection. The central bank conducted reverse - repurchase operations worth 202.75 billion yuan, with a total maturity of 96.03 billion yuan, resulting in a net capital injection of 106.72 billion yuan [6]. - **Sino - US Interest Rate Comparison**: The US 6 - month SOFR rate decreased from 4.23% on June 23 to 4.14% on June 27, while the Chinese 6 - month SHIBOR rate remained stable at 1.64%. As of June 27, the 6 - month Sino - US interest rate spread was - 250BP, and the spread continued to narrow. The 2 - year and 10 - year Sino - US bond spreads were - 237BP and - 264BP respectively, with little change in the short - and long - term spread inversion amplitude during the week [13]. - **Term Spread and Yield Curve**: The term spreads of both Chinese and US bonds widened. The 10 - 2 - year spread of Chinese bonds widened from 27BP to 29BP, and that of US bonds widened by 6BP to 56BP. The yield curves of both Chinese and US bonds became steeper. The short - end of the Chinese bond yield declined slightly, and the long - end rose slightly. The middle - end of the US bond yield declined significantly [14]. 3.2 Last Week's Key Bond Market Events - **2025 Q2 Monetary Policy Committee Meeting**: The meeting proposed to increase the intensity of monetary policy regulation, improve its forward - looking, targeted, and effective nature, and flexibly grasp the intensity and rhythm of policy implementation. It aimed to maintain ample liquidity, guide financial institutions to increase credit supply, and promote a decline in the comprehensive social financing cost. It also emphasized observing and evaluating the bond market from a macro - prudential perspective, paying attention to long - term yield changes, and preventing excessive exchange - rate fluctuations [21]. - **US Senate's Procedural Motion**: On June 28 (local time), the US Senate passed a procedural motion to advance the so - called "big and beautiful" large - scale tax and spending bill. If passed, the bill is expected to increase the US debt by $3.3 trillion over the next decade [22].

Investment Rating - The automotive industry is rated as "Overweight" with expectations of outperforming the market in the next six months [52]. Core Views - The automotive sector saw a weekly increase of 2.88%, outperforming the CSI 300 index by 0.93 percentage points during the period from June 22 to June 27, 2025 [10][41]. - Retail sales of passenger vehicles in June increased by 24% year-on-year, with a total of 1,008.6 million units sold year-to-date, reflecting an 11% increase compared to the previous year [6][42]. - The new Xiaomi YU7 SUV model launched successfully, achieving over 240,000 pre-orders within 18 hours of its release [3][42]. Summary by Sections Market Review - The automotive sector's performance for the week (June 22-27, 2025) showed a 2.88% increase, with the passenger vehicle segment rising by 0.08% and commercial vehicles by 1.01% [10][41]. - The automotive parts sector increased by 4.62%, while the automotive services sector rose by 4.27%, both outperforming the CSI 300 index [10][41]. Valuation Levels - As of June 27, 2025, the automotive industry's PE-TTM was 25.9, up by 0.72 from the previous week. The valuations for passenger vehicles, commercial vehicles, and parts were 25.37, 35.87, and 24.46 respectively [11][41]. New Vehicle Launches - A total of 28 new models were launched during the week, including the Xiaomi YU7, which is priced between 25.35 and 32.99 million yuan [38][40]. Investment Recommendations - The report suggests that the automotive sector is expected to continue its upward trend, with specific focus on the performance of electric vehicles and related technologies [41].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking it as the first rating given [4]. Core Viewpoints - The company is positioned in the military inertial navigation sector, which is crucial for enhancing the advanced capabilities of national defense systems. The report highlights that there is no current overcapacity or technological obsolescence in this field, indicating a stable growth environment [8]. - The company has a strong track record in the inertial navigation and control domain, with over 30 years of experience, and has established a solid reputation and extensive customer base [8]. - The company is actively expanding into the civil aviation market, with several projects progressing well, and has signed contracts with commercial aerospace entities, indicating a diversification strategy [3][9]. Financial Summary - Projected revenue growth shows a significant increase from 22 million in 2023 to 1,092 million by 2027, with a year-on-year growth rate peaking at 685.6% in 2024 [1]. - The net profit is expected to turn positive by 2025, with projections of 54 million, 96 million, and 115 million for the years 2025, 2026, and 2027 respectively, reflecting a substantial growth trajectory [1][9]. - The report anticipates a gradual improvement in key financial metrics, including ROE, which is expected to rise from -1.6% in 2023 to 5.6% by 2027 [1]. Market Development - The company is focusing on enhancing its market management and performance assessment systems to boost the motivation of its market personnel, which is expected to improve overall market performance [2]. - The company is closely monitoring the demand for guided munitions and has secured contracts for inertial navigation devices, with production and delivery scheduled for 2024 [2][8]. - The report emphasizes the company's commitment to technological innovation and its role in supporting military capabilities, aligning with national defense strategies [9].

Group 1 - The overall revenue growth of the A-share market shows a recovery trend, with a year-on-year growth rate of -0.18% for the entire A-share market and 0.65% for the non-financial and non-oil sectors in Q1 2025, indicating a significant improvement compared to Q4 2024 [21][28] - The growth rate of revenue for the ChiNext board reached 7.89% in Q1 2025, maintaining positive growth since December 2022, while the STAR Market experienced a decline of 7.24% due to the downturn in the photovoltaic industry [21][28] - The net profit growth for the entire A-share market turned positive in Q1 2025, with a year-on-year increase of 1.49%, compared to a decline of -0.89% in Q4 2024, indicating a significant recovery in profitability [28][36] Group 2 - The financial and real estate sectors are experiencing a divergence, with the real estate sector continuing to weaken, while brokerage firms benefit from the deepening of capital market reforms, showing a year-on-year revenue growth of 22.08% and a net profit growth of 83% [3][59] - The upstream materials sector shows resilience, particularly in the non-ferrous metals segment, which saw a net profit increase of 37.9% year-on-year, driven by geopolitical risks and a weakening dollar [3][59] - The steel industry is facing challenges with excess capacity, leading to a significant decline in profits for the rebar segment, while the plate segment benefits from equipment renewal policies, showing a notable improvement in net profit growth [3][59] Group 3 - The midstream manufacturing sector is witnessing a transition between old and new driving forces, with the engineering machinery sector experiencing a revenue increase of 9.88% driven by domestic demand recovery, while exports are negatively impacted by shrinking overseas demand [4][61] - The smart manufacturing and automation sectors are emerging as growth drivers, with industrial robot production increasing by 51.5% year-on-year and the gross profit margin of new energy equipment recovering to 18.7% [4][61] - The consumer sector is highlighting structural opportunities, with the home appliance sector benefiting from "old-for-new" policies, achieving a net profit growth of 10.14% in Q1 2025 [4][61] Group 4 - The innovative drug sector is driven by business development (BD) transactions, with a net profit growth rebound to 7.54% in Q1 2025, supported by domestic medical insurance expansion and breakthroughs in overseas clinical trials [5][63] - The TMT and AI industry chains are characterized by high investment, with the optical module segment benefiting from the global computing power competition, resulting in a net profit increase of 114.5% year-on-year [4][63] - The AI industry chain is experiencing a slowdown in revenue growth, with a decrease to 3.25% in Q1 2025, although the pace of domestic substitution is accelerating [4][63]

Investment Rating - The report assigns an "Accumulate" rating for the company [4]. Core Views - The company has achieved a turnaround in net profit for Q1 2025, with a significant increase in high-end market revenue share [1][2]. - The semiconductor market in China is experiencing accelerated domestic substitution, reducing reliance on imports and creating growth opportunities for local companies [3]. - The company is focusing on high-value applications, with a notable increase in sales of digital energy devices and significant orders in specialized power supply sectors [8][9]. Financial Summary - For 2024, the company is projected to achieve revenue of 354 million yuan, a year-on-year increase of 10.76%, while net profit is expected to decline by 18.77% to 25 million yuan [1]. - The company's revenue is expected to grow steadily from 320 million yuan in 2023 to 537 million yuan by 2027, with a compound annual growth rate (CAGR) of approximately 12.3% [1]. - The gross margin for 2024 is projected at 29.45%, an increase of 6.26 percentage points year-on-year, indicating improved profitability [2]. Market Position and Competitive Advantage - The company ranks among the top domestic players in the high-power semiconductor device sector, with strong production capacity and quality advantages [3]. - The company maintains long-term stable partnerships with leading enterprises in various electrical systems and industrial control equipment sectors, enhancing its market presence [3][8]. - The focus on high-end clients and applications has led to a significant increase in revenue from high-value power semiconductor devices [8].

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group [4] Core Views - Xiaomi is expanding its product offerings in the AI field, launching its first AI glasses, which feature multi-modal smart interaction capabilities and plans for secure online payment integration with Alipay [2] - The launch of the Xiaomi YU7 smart car has seen impressive pre-order numbers, indicating strong market interest and potential for growth in the smart automotive sector [3] - The company's strategic focus on a comprehensive ecosystem encompassing personal, automotive, and home devices is expected to drive future performance [8] Financial Summary - Revenue projections show a growth trajectory from approximately 270.97 billion CNY in 2023 to 673.42 billion CNY by 2027, with year-over-year growth rates of -3.24% in 2023, 35.04% in 2024, and stabilizing around 16.89% by 2027 [1] - Net profit is expected to increase significantly from 17.48 billion CNY in 2023 to 59.67 billion CNY in 2027, with a remarkable growth rate of 606.34% in 2023 [1] - The report anticipates a steady improvement in return on equity (ROE), rising from 10.66% in 2023 to 17.67% in 2027 [1] Market Position and Strategy - Xiaomi's entry into the AI glasses market is seen as a confidence booster for the smart eyewear industry, with the global wearable AI market projected to reach 39.7 billion USD in 2024 [2] - The company is leveraging its leadership in the smart technology sector to enhance its product matrix in personal smart devices [2] - The YU7 smart car features advanced technology, including a 700 TOPS computing platform and various sensors, indicating Xiaomi's commitment to innovation in the automotive space [3]

Investment Rating - The report assigns an "Accumulate" rating to the company, indicating a forecasted stock price increase of 5% to 15% relative to the industry index over the next six months [4]. Core Insights - The company has achieved a significant turnaround in net profit for 2024, with a reported net profit of 123 million yuan, compared to a loss of 811 million yuan in 2023. This improvement is attributed to strategic adjustments and the divestment of its CNC machine tool business [2][10]. - The company's revenue for 2024 is projected to be 1.184 billion yuan, reflecting a year-on-year growth of 76.5%. The first quarter of 2025 shows continued strong performance with a revenue increase of 41.12% year-on-year [1][2]. - The GPU chip business is highlighted as a new growth area, with the company successfully entering the domestic GPU market through its subsidiary, Ruixin Tuxin, which has begun mass production of its BF2000 series GPU chips [9][10]. Financial Performance Summary - **Revenue**: The company expects revenues to grow from 671 million yuan in 2023 to 1.184 billion yuan in 2024, with a compound annual growth rate (CAGR) of 76.5% [1]. - **Net Profit**: The net profit is forecasted to improve from a loss of 811 million yuan in 2023 to a profit of 123 million yuan in 2024, with further increases expected in subsequent years [1][10]. - **Gross Margin**: The gross margin for 2024 is projected at 12.41%, up 5.42 percentage points year-on-year, while the first quarter of 2025 shows a gross margin of 27.64% [2]. - **Earnings Per Share (EPS)**: EPS is expected to rise from -0.80 yuan in 2023 to 0.12 yuan in 2024, with further growth anticipated in the following years [1][10]. Business Strategy and Developments - The company has successfully divested its CNC machine tool business, receiving 357 million yuan from the sale and recovering associated loans and dividends [3]. - The company is focusing on enhancing its product portfolio in the port machinery and photovoltaic sectors, with a strong order backlog of approximately 2 billion yuan as of the end of 2024 [3][10]. - The GPU chip segment is positioned to capitalize on the growing domestic market, with the company’s products already integrated into various applications across multiple industries [9][10].

Group 1: Overall Market Trends - The overall A-share market shows a recovery in revenue growth, with a year-on-year revenue growth rate of -0.18% for Q1 2025, and a positive growth of 0.65% for non-financial and non-oil sectors, indicating a significant improvement from the previous quarter [11][16] - The ChiNext board leads with a revenue growth rate of 7.89% in Q1 2025, maintaining positive growth since December 2022, while the STAR Market experiences a decline of 7.24% due to the downturn in the photovoltaic industry [11][16] - The net profit growth for the entire A-share market turns positive at 1.49% in Q1 2025, a recovery from -0.89% in Q4 2024, with the ChiNext board seeing a remarkable increase of 18.02% [11][16] Group 2: Sector Performance - The financial and real estate sectors show a divergence, with securities firms benefiting from capital market reforms, achieving a revenue growth of 22.08% and a net profit growth of 83%, while the banking sector faces pressure from narrowing net interest margins, resulting in a net profit growth slowdown to -1.20% [2][36] - The upstream materials sector demonstrates resilience, particularly in non-ferrous metals, with the gold sub-sector's net profit increasing by 37.9% driven by geopolitical risks and a weakening dollar [2][36] - The steel industry faces challenges with overcapacity, leading to a significant decline in profits for the rebar sector, while the plate sector benefits from equipment upgrade policies, showing a notable improvement in net profit growth [2][36] Group 3: Midstream Manufacturing and Consumer Trends - The midstream manufacturing sector experiences a "new and old momentum switch," with engineering machinery revenue increasing by 9.88% driven by domestic demand recovery, while exports face a decline of 4.24% [3][39] - The consumer sector reveals structural opportunities, with the home appliance sector benefiting from "trade-in" policies, achieving a net profit growth of 10.14% in Q1 2025 [3][39] - The TMT and AI sectors exhibit high investment characteristics, with the optical module sector seeing a net profit surge of 114.5% due to the global computing power competition [3][39] Group 4: Strategic Recommendations - The report suggests a "defensive-flexible-aggressive" investment strategy, focusing on high-dividend banks, innovative pharmaceuticals, and AI computing hardware as key areas for investment [4][39]

Key Insights - The report highlights the ongoing "stagflation" risk in the US economy, with the first quarter of 2025 showing a contraction in GDP of -0.5%, indicating a technical recession, while core PCE inflation remains sticky at 3.5% [9] - The approval of the first stablecoin license for a Chinese brokerage firm signals a shift in regulatory stance towards stablecoins, emphasizing their strategic value for cross-border payments [9][8] - Xiaomi's YU7 model has seen overwhelming demand, with over 289,000 orders within an hour of launch, raising concerns about production capacity and potential legal risks in secondary markets [9][8] Industry Analysis Fluorochemicals - The quota system driven by policy has led to a rigid freeze on the production capacity of third-generation refrigerants, accelerating the exit of smaller players and allowing leading companies to gain pricing power, pushing refrigerant prices upward [17] - The supply of fluorite resources is constrained due to low extraction ratios and stricter environmental policies, further solidifying cost support [17] Innovative Pharmaceuticals - The innovative pharmaceutical sector is experiencing a phase of adjustment, primarily influenced by emotional factors and trading dynamics, with valuations returning to near five-year lows, presenting an entry opportunity for investors [18] - The export transaction volume of domestic innovative drugs reached $45.5 billion from January to May 2025, contributing positively to profits [18] Semiconductors - The semiconductor market is witnessing a recovery in risk appetite, with the AI industry chain potentially becoming a focal point again [18] - External technological restrictions and geopolitical risks are driving the localization of supply chains, with increasing domestic production rates for semiconductor equipment and materials [18]