- **Barra style factors**: The report tracks several style factors including Beta, Market Cap, Momentum, Volatility, Non-linear Market Cap, Valuation, Liquidity, Profitability, Growth, and Leverage. These factors are constructed using historical data and financial metrics such as turnover rates, earnings growth rates, and market leverage ratios. For example, the Beta factor represents historical beta, while the Valuation factor is calculated as the inverse of the price-to-book ratio. The formulas for constructing these factors include weighted combinations of metrics like turnover rates and earnings ratios [14][15][16] - **Factor performance tracking**: The report evaluates the recent performance of style factors across the market. Beta, Liquidity, and Momentum factors showed strong long positions, while Market Cap, Non-linear Market Cap, and Valuation factors performed better in short positions. The tracking methodology involves selecting stocks from the Wind All A pool, excluding ST stocks, suspended stocks, and newly listed stocks under 120 days. Long positions are taken in the top 10% of stocks with the highest factor values, and short positions in the bottom 10%, with equal weight allocation [16][19][20] - **Factor backtesting results**: The report provides detailed backtesting results for style factors. For example, Beta achieved a weekly return of 4.58%, while Market Cap showed a negative weekly return of -3.55%. Other factors like Momentum and Liquidity also demonstrated varied performance across different time horizons, such as one week, one month, and year-to-date. The report highlights the annualized returns for three-year and five-year periods for each factor [17][18][19] - **GRU factor performance**: GRU factors showed weaker performance overall, with only the barra1d model achieving positive returns. Other GRU models experienced drawdowns in their long-short portfolios. This indicates potential challenges in the effectiveness of GRU factors under current market conditions [20][25][29] - **Technical factors**: Technical factors such as 20-day Momentum, 60-day Momentum, and various volatility measures (e.g., 120-day Volatility) were tracked. These factors generally showed positive returns in long positions, particularly in high-volatility and high-momentum stocks. For example, 120-day Volatility achieved a weekly return of 5.92% in the CSI 300 stock pool [24][27][31] - **Fundamental factors**: Fundamental factors like ROA growth, ROC growth, and Net Profit growth were analyzed. In the CSI 300 stock pool, Net Profit growth achieved a weekly return of 2.51%, while ROA growth showed a return of 1.19%. These factors generally favored stocks with stable and strong growth metrics [23][25][30] - **Multi-factor portfolio performance**: The report evaluates the performance of multi-factor portfolios. The barra5d model outperformed the CSI 1000 index by 0.27% this week and achieved a year-to-date excess return of 5.91%. Other models showed mixed results, with some experiencing slight drawdowns. The multi-factor portfolio achieved a weekly excess return of 0.04% relative to the CSI 1000 index [8][33][34]

Industry Investment Rating - The investment rating for the construction materials industry is "Outperform the Market" and is maintained [1] Core Views - The report highlights that during the 14th Five-Year Plan period, China is expected to construct and renovate over 700,000 kilometers of underground pipelines, with new investment needs exceeding 5 trillion yuan. This initiative is a key focus for the government and is expected to significantly boost investment and consumption, creating substantial domestic demand opportunities. Recommended companies to watch include China Liansu, Qinglong Pipeline, and Donghong Co [4] - In the cement sector, the demand recovery is slow, with a year-on-year decline of 8.6% in cement production in August 2025, totaling 154 million tons. The industry is currently in a low demand and price phase, but capacity utilization is expected to improve due to policies limiting overproduction. Companies to focus on include Conch Cement and Huaxin Cement [5][10] - The glass industry is experiencing a downward trend in demand due to the real estate sector's impact, with prices showing signs of weakening post-holiday. The report suggests that while environmental regulations may not lead to a drastic reduction in capacity, they will increase costs and accelerate industry adjustments. Key players to monitor include Qibin Group [5][15] - The fiberglass sector is seeing a positive trend driven by demand from the AI industry, with expectations for explosive growth in low-dielectric products. Companies like China Jushi and China National Building Material are highlighted as potential beneficiaries [5] - The consumer building materials sector has reached a profitability bottom, with no further price declines expected. The report anticipates a recovery in profitability for leading companies in the second half of the year, with firms like Oriental Yuhong and Sanke Tree recommended for attention [5] Summary by Sections Cement - The cement market is gradually entering its peak season, but overall demand recovery is slow. The construction sector's demand has not fully materialized due to weather disruptions and the pace of demand release. The report notes that the industry is currently at a low point in both demand and prices [10] - In August 2025, cement production was 154 million tons, reflecting an 8.6% year-on-year decline [10] Glass - The glass industry is facing weak demand post-holiday, with significant inventory increases affecting price stability. The report indicates that the supply-demand imbalance persists, and future performance will depend on policy changes and downstream inventory replenishment [15] Fiberglass - The fiberglass sector is benefiting from the AI industry's growth, with expectations for a significant increase in demand and prices for low-dielectric products. The report emphasizes a positive outlook for the industry [5] Consumer Building Materials - The consumer building materials sector is expected to see a recovery in profitability, with leading companies actively pursuing price increases. The report suggests that the sector has reached a profitability bottom, and improvements are anticipated in the latter half of the year [5]

Investment Rating - The report maintains a "Buy" rating for the company, with an expected increase in stock price relative to the benchmark index of over 20% within the next six months [6][12]. Core Insights - The company reported a revenue of 41.1 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 8.4%. The net profit attributable to shareholders was 4.1 billion yuan, up 61.6% year-on-year [4]. - In Q3 2025, the company achieved a revenue of 48.4 billion yuan, with a year-on-year growth of 7.9%. The net profit for the same period was 1.6 billion yuan, reflecting a significant increase of 227.7% year-on-year [4]. - The company is progressing well with its ultra-high voltage Phase III project, which is expected to enhance profitability in the polymer materials segment [5]. - The charging business is anticipated to reach a breakeven point sooner due to the growth of charging infrastructure and changes in electricity pricing models [5]. Financial Forecasts - Revenue projections for 2025, 2026, and 2027 are 201.0 billion yuan, 227.7 billion yuan, and 258.1 billion yuan, respectively. The net profit attributable to shareholders is forecasted to be 5.2 billion yuan, 6.6 billion yuan, and 8.2 billion yuan for the same years [6][10]. - The report indicates an upward revision in net profit forecasts compared to previous estimates, reflecting improved operational performance [6]. - The projected price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 34, 27, and 22, respectively [6].

- The diffusion index model has been tracking out-of-sample performance for four years, with notable results in 2021 when momentum strategies captured industry trends, achieving excess returns of over 25% before a significant drawdown in September due to cyclical stock adjustments. In 2022, the strategy maintained stable returns with an annual excess return of 6.12%. However, in 2023, excess returns declined to -4.58%, and in 2024, a major drawdown occurred after September due to the model's focus on upward trends, missing rebound industries, resulting in an annual excess return of -5.82%[24][28] - The diffusion index model suggests allocating to industries such as non-bank finance, construction, and defense military, which showed significant week-on-week improvement in rankings. The top six industries based on diffusion index rankings as of October 24, 2025, are non-bank finance (0.988), banking (0.967), steel (0.952), communication (0.946), comprehensive (0.913), and non-bank finance (0.9)[25][26][27] - The GRU factor model, based on minute-level volume and price data processed through GRU deep learning networks, has shown strong performance in short cycles but weaker performance in long cycles. The model has been effective in capturing trading information since 2021, achieving significant excess returns. However, since February 2025, the model has faced challenges in generating excess returns due to market focus on thematic trading[31][37] - The GRU factor model ranks industries based on their GRU factor scores. As of October 24, 2025, the top six industries are non-bank finance (1.13), banking (1), electric power and utilities (0.54), textile and apparel (0.03), automotive (-0.58), and machinery (-0.73). Industries with the lowest GRU factor scores include food and beverage (-17.79), non-ferrous metals (-10.81), basic chemicals (-8.82), agriculture (-8.76), coal (-6.57), and building materials (-6.48)[6][13][32] - The GRU factor model's weekly industry rotation suggests allocating to non-bank finance, electric power and utilities, textile and apparel, transportation, steel, and petrochemicals. For the week ending October 24, 2025, the model achieved an average return of 1.89%, underperforming the equal-weighted return of the CSI first-tier industries by -0.77%. For October, the model's excess return is 1.80%, while the year-to-date excess return stands at -6.41%[6][34][39]

Report Information - Report Type: Fixed Income Report - Release Time: October 27, 2025 - Analyst: Liang Weichao - SAC Registration Number: S1340523070001 - Email: liangweichao@cnpsec.com [2] Industry Investment Rating No relevant content provided. Core Viewpoints - Fourth - quarter bond market may move in a volatile manner. The 30 - year minus 10 - year Treasury spread has fully reflected the repair of risk preference, and the 10 - year minus 1 - year Treasury spread has also generally reflected it. The bond market currently has allocation value, but chasing the rise requires caution [3][10]. - The capital market is in a loose state, with stable and low capital prices and little seasonal fluctuation. It is expected to remain loose during the October tax period and month - end [3][11]. - The issuance pressure of inter - bank certificates of deposit (NCDs) in the fourth quarter mainly comes from seasonality, and the probability of significantly exceeding expectations is low. NCDs have high allocation value at the end of the year and may decline more than expected [4][17]. Summary by Directory 1. How to View the Pricing of Inter - bank Certificates of Deposit? - **Bond Market Outlook**: Fourth - quarter bond market may move in a volatile manner. The spreads have reflected risk - preference repair, and the bond market has allocation value. Supply pressure may ease, and there may be opportunities for monetary easing, but redemption pressure will persist. Chasing the rise of bonds requires caution [3][10]. - **Capital Market Situation**: The capital market is in a loose state, with capital prices at a stable low and little seasonal fluctuation. This is due to the central bank's careful liquidity arrangements and the relatively loose and smooth - flowing bank liabilities. It is expected to remain loose during the October tax period and month - end [3][11]. - **Analysis of NCDs' Net Financing Decline**: Some investors are worried about the continuous negative net financing of NCDs since the third quarter. This decline is consistent with the state of the bank's broad liability gap and is also due to the substitution effect of the central bank's medium - and long - term liquidity injection [13]. - **NCDs' Supply Pressure in the Fourth Quarter**: The issuance pressure of NCDs in the fourth quarter mainly comes from seasonality, and the probability of significantly exceeding expectations is low. Although there is still some supply pressure at the end of the year, the probability of negative feedback is not high. The NCDs' interest rate is in a high - allocation - value range and may decline more than expected at the end of the year [4][17].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the benchmark index within six months [6][11]. Core Insights - The company reported a revenue of 370 million yuan for the first three quarters of 2025, a year-on-year decrease of 2.0%, with a net profit of 50 million yuan, down 0.1% year-on-year. However, Q3 2025 showed a revenue increase of 17.9% quarter-on-quarter and 23.8% year-on-year, with net profit rising by 110.4% quarter-on-quarter and 94.1% year-on-year, indicating strong performance in the testing power business despite underperformance in the hydrogen energy sector [4][5]. - The company is actively expanding its presence in the AI testing power sector, having secured small batch orders and completed some deliveries. It is also working on automating testing solutions for leading industry clients [5]. - The hydrogen energy industry is expected to gain momentum during the 14th Five-Year Plan, with national strategic support anticipated, which may lead to improved industry conditions and ongoing policy support [5]. Financial Forecast and Metrics - Revenue projections for 2025-2027 are 550 million yuan, 660 million yuan, and 840 million yuan, respectively. Corresponding net profits are forecasted at 70 million yuan, 90 million yuan, and 130 million yuan, leading to price-to-earnings ratios of 52, 38, and 27 times [6][9]. - The company’s gross margin and net margin for the first three quarters of 2025 were 40.8% and 13.9%, respectively, with a notable reduction in sales expense ratio to 11.6% and a slight decrease in R&D expense ratio to 15.3% [4][6].

Investment Rating - The report maintains an "Accumulate" rating for the company, reflecting a downward adjustment in expectations [6]. Core Insights - The company reported a revenue of 1.16 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 29.9%, with a net profit of 280 million yuan, up 28.5% year-on-year. In Q3 2025, revenue reached 460 million yuan, with year-on-year and quarter-on-quarter growth of 33.4% and 9.4%, respectively [3]. - The gross margin for the first three quarters of 2025 was 45.1%, a slight increase of 0.6 percentage points year-on-year, while the net margin was 23.8%, down 0.3 percentage points year-on-year. The overall increase in expense ratios was attributed to increased marketing, management, and R&D personnel to expand market reach and develop new products [4]. - Global investment in power grids is expected to rise, with a projected investment of 390 billion USD in 2024, a 9% increase year-on-year, and an anticipated surpassing of 400 billion USD in 2025. The growth in renewable energy is expected to put continuous pressure on grid security, leading to a long-term positive outlook for grid enhancement [5]. Financial Forecast and Metrics - The company’s projected net profits for 2025-2027 are 430 million, 530 million, and 670 million yuan, respectively, with corresponding price-to-earnings ratios of 37, 29, and 23 times [6]. - Revenue forecasts for 2024-2027 are 1.345 billion, 1.863 billion, 2.484 billion, and 3.177 billion yuan, with growth rates of 40.22%, 38.55%, 33.29%, and 27.92% respectively [10]. - The company’s gross margin is expected to decline slightly from 43.6% in 2024 to 41.0% in 2027, while the net margin is projected to decrease from 23.1% to 21.0% over the same period [11].

Investment Rating - The report maintains a strong buy rating for the card industry, indicating a positive outlook for investment opportunities [3]. Core Insights - The card industry is characterized by high growth and significant potential within the broader entertainment sector, with collectible card games (CCGs) experiencing a compound annual growth rate (CAGR) exceeding 50% over the past five years [5]. - The leading company in the collectible card market, Card Game Co., has shown impressive revenue growth, with projected revenues increasing from 4.131 billion yuan in 2022 to 10.057 billion yuan in 2024, reflecting a CAGR of 56.03% [5][6]. - The report highlights the competitive landscape, noting that while Card Game Co. dominates the market, there is increasing competition from brands like Collect Card Society and Flash Soul [5][6]. Industry Analysis - The collectible card market in China is still in its early stages compared to more mature markets like Japan and the United States, suggesting substantial room for growth in per capita spending [39]. - The overall market for collectible cards in China is projected to grow from 2.8 billion yuan in 2019 to 26.3 billion yuan by 2024, with a CAGR of 56.6% [20]. - The report emphasizes the importance of intellectual property (IP) partnerships, as Card Game Co. has secured licenses for popular franchises such as Ultraman and My Little Pony, enhancing its product offerings [43]. Company Overview - Card Game Co. has established itself as a leader in the collectible card market, with a strong focus on expanding its IP and product matrix, currently holding 69 licensed IPs and one proprietary IP [43]. - The company has a concentrated ownership structure, with the founders holding 83.5% of the shares, which allows for strategic decision-making aligned with long-term growth objectives [45]. - Financially, Card Game Co. has demonstrated robust performance, with revenues increasing significantly and adjusted net profits projected to rise from 1.62 billion yuan in 2022 to 4.466 billion yuan in 2024, reflecting a CAGR of 66.05% [51]. Competitive Advantages - The report identifies several competitive advantages for Card Game Co., including a diverse IP portfolio, strong distribution channels, and innovative gameplay design that enhances consumer engagement [6][7]. - The company is well-positioned to capitalize on the growing demand for collectible cards, particularly among younger consumers who favor low-priced, high-frequency purchases [7]. - Card Game Co. is also exploring international markets, aiming to leverage its established brand and product offerings to create a second growth curve [7]. Growth Outlook - The report suggests that the collectible card industry is poised for continued expansion, driven by collaborations with content creators and a focus on enhancing the entertainment and social aspects of competitive trading card games (TCGs) [7]. - The potential for growth in the collectible card segment is further supported by the increasing popularity of mobile gaming, which may help broaden the audience for card games [5][6].

Investment Rating - The report maintains a rating of "Accumulate" for the company [8]. Core Views - The company is advancing its PD-1/VEGF combination therapy, JS207, which shows significant potential for market leadership and business development opportunities. The drug has demonstrated excellent anti-tumor effects in preclinical studies and is currently undergoing multiple Phase II clinical trials globally [4]. - The core product, Toripalimab, has seen substantial growth in sales, with domestic revenue reaching 954 million yuan in the first half of 2025, a year-on-year increase of approximately 42%. The product has been approved in over 40 countries and regions, including the U.S. and EU, and is the first drug approved by the FDA for nasopharyngeal carcinoma treatment [5]. - The company has a robust pipeline with multiple promising products in development, including JS207 and JS212, which target drug resistance issues. The combination of PD-1/VEGF and ADC therapies presents significant synergistic potential [6]. - A stock incentive plan has been announced, reflecting the company's strong confidence in future performance, with options granted for 25.97 million shares, approximately 2.53% of total shares [6]. Summary by Sections Company Overview - The company, established in December 2012, focuses on discovering, developing, and commercializing innovative therapies. It has a strong drug discovery capability and advanced biotechnological research and development [16]. Management and Pipeline - The management team has extensive experience in the innovative drug sector, with many members having multinational corporation backgrounds. The company has expanded its pipeline to cover three major overseas markets, including PD-1 plus, small nucleic acids, and ADC plus [17][24]. Financial Performance - In the first half of 2025, the company achieved revenue of 1.17 billion yuan, with a compound annual growth rate (CAGR) of 5.13% from 2020 to 2024. The net loss was 410 million yuan, showing significant improvement compared to previous years [28][31]. Commercial Products - Toripalimab is the first domestically approved PD-1 monoclonal antibody, with 12 approved indications in China and ongoing clinical studies for over 15 indications globally. The sales revenue is projected to grow significantly due to expanding indications and international market access [33][37]. Clinical Pipeline - The company has several key products in clinical development, including JS207 and JS212, with promising early data. The ongoing clinical trials are progressing well, with significant patient enrollment [6][7]. International Expansion - The company has established a strong international presence, with Toripalimab approved in multiple countries and regions. The production facility has received GMP certifications, supporting its global commercialization efforts [46][47].

Investment Rating - The report maintains a rating of "Accumulate" for the company, indicating a positive outlook for the stock's performance relative to the benchmark index [2][8]. Core Views - The company reported a strong Q3 performance with a revenue of 47.95 billion yuan, representing a year-on-year increase of 23.17%, and a net profit of 8.81 billion yuan, up 54.06% year-on-year [4][5]. - The growth in revenue is attributed to robust sales in the high-end market segments such as wind power and thermoplastics, alongside a significant increase in electronic fabric sales driven by downstream price expectations [5][6]. - The company's gross margin for the first three quarters was 32.4%, an increase of 8.7 percentage points year-on-year, although it saw a slight decline in Q3 due to a minor drop in raw sand prices [5]. - The company announced a stock buyback plan, reflecting confidence in sustained future profitability, with a maximum repurchase price set at 22 yuan per share [6]. Financial Summary - For the first three quarters of 2025, the company achieved a revenue of 139.04 billion yuan, a year-on-year increase of 19.53%, and a net profit of 25.68 billion yuan, up 67.51% year-on-year [4]. - The forecast for 2025 and 2026 projects revenues of 186 billion yuan and 211 billion yuan, respectively, with corresponding net profits of 34.6 billion yuan and 39.7 billion yuan, indicating growth rates of 41.3% and 15.0% [6][9]. - The company's financial metrics show a PE ratio of 25.00, with expected PE ratios of 18.4X and 16.0X for 2025 and 2026, respectively [3][9].