Investment Rating - The report maintains a "Positive" investment rating for the cosmetics industry [3] Core Insights - The cosmetics industry is experiencing stable growth with a slight improvement in growth rates, while profitability continues to show differentiation among companies [11][16] - The average revenue growth rate for the cosmetics industry in Q1 and Q2 of 2025 was -8.4% and -2.1%, respectively, indicating a slight improvement in the second quarter [16] - Online sales channels, particularly Tmall and Douyin, have shown a year-on-year growth of 13.1% in the first half of 2025, reflecting a recovery in consumer demand [11] Summary by Sections Cosmetics: Stable Growth and Business Adjustments - The cosmetics industry showed a year-on-year growth of 3.1% and 2.6% in Q1 and Q2 of 2025, respectively, with a significant improvement compared to the -1.1% growth in 2024 [11] - The industry is characterized by a slight improvement in growth rates, with the overall growth falling into a stable range [11] Revenue: Differentiation Among Brands - The average revenue growth for the brand segment was 0.4% and 6.5% in Q1 and Q2 of 2025, respectively, indicating stronger resilience compared to upstream and downstream segments [16] - Mid-sized brands like Maogeping and Shangmei have achieved good growth amidst a stable industry backdrop, while leading companies like Proya continue to grow steadily [16] Gross Margin Trends - The average gross margin for the brand segment increased by 1.6 percentage points in the first half of 2025, driven by improved business structures and effective price control by certain brands [21] - Specific brands like Water Sheep and Beitaini have seen significant improvements in gross margins due to product upgrades and price management strategies [21] Product Innovation: Focus on Core Series and Efficacy Expansion - Brands are focusing on upgrading core product lines and expanding efficacy categories, particularly in sunscreen and whitening, with increased competition expected [25] - New product launches include Proya's whitening series and Beitaini's anti-aging products, indicating a trend towards enhancing product offerings [25] Sales Expenses: Rising Industry Rates - The average sales expense ratio for brands in the first half of 2025 was 44.7%, reflecting a year-on-year increase of 1.7 percentage points, influenced by rising competition and platform costs [31] - The narrowing of gross sales margins indicates ongoing pressure on profitability across the industry [31]

Investment Rating - The report maintains a positive outlook on the investment banking and brokerage industry [7] Core Insights - The recent implementation of the public fund fee reform in three phases is driving high-quality development in the industry. Brokerage firms continue to show high growth in their mid-year performance, and market enthusiasm remains high. The valuation still offers cost-effectiveness, suggesting a focus on leading companies and high-performing stocks in the sector. In the insurance sector, the overall trend supports the logic of deposit migration, increased equity allocation, and improved new policy costs, enhancing the certainty of long-term ROE improvement and accelerating valuation recovery [2][4] - From the perspective of profitability and dividend stability, the report continues to recommend Jiangsu Jinzu, which has stable profit growth and dividend rates, China Ping An, which maintains a high dividend yield, and China Pacific Insurance, which has clear advantages in business model and market position. Additionally, based on performance elasticity and valuation levels, the report recommends Xinhua Insurance, China Life, Hong Kong Stock Exchange, CITIC Securities, Dongfang Wealth, Tonghuashun, and Jiufang Zhitu Holdings [4] Summary by Sections Industry Overview - The non-bank financial index increased by 0.3% this week, with an excess return of -1.1% relative to the CSI 300, ranking 24th out of 31 industries. Year-to-date, the non-bank financial index is up 8.2%, with an excess return of -6.7%, also ranking 21st out of 31 [5] - Market enthusiasm has slightly declined, with an average daily trading volume of 23,264.15 billion yuan, down 10.63% week-on-week, and an average turnover rate of 2.45%, down 34.86 basis points [5] Key Industry News & Company Announcements - The China Securities Regulatory Commission released the "Classification Evaluation Regulations for Futures Companies" [6] - Company announcements include Guosen Securities completing the registration procedures for issuing new shares to acquire 96.08% of Wanhe Securities, and Xibu Securities completing the transfer of shares for the acquisition of Guorong Securities [6] Brokerage Data Tracking - The report highlights a slight recovery in margin financing, with a balance of 2.34 trillion yuan, up 2.67% week-on-week. The stock pledge market remains cautious, with expectations of continued contraction in stock pledge scale, but improved asset yield rates are anticipated to enhance income performance [45][49]

Investment Rating - The report maintains a "Positive" investment rating for the supermarket and department store industry [4]. Core Insights - The overall retail sector is showing signs of stabilization and recovery, with essential and national subsidized categories performing well. In the first seven months of 2025, the retail sales growth rate was 4.8%, with July's growth at 3.7% [14]. - Supermarkets are undergoing store closures and adjustments, leading to an optimization of profit margins. In the first half of 2025, major supermarket chains closed a total of 223 stores, with ongoing adjustments expected to enhance profitability [15][19]. - The department store sector is experiencing a short-term decline in performance, with a focus on maintaining operational stability and gradually improving brand matrices [35]. Summary by Sections Overall Retail Sector - Retail sales growth is stabilizing, with essential goods showing strong growth. For instance, the retail sales growth for essential food categories was 12.2% in Q2 2025 [14]. - The performance of optional categories is recovering, with notable growth in national subsidized products like home appliances and furniture, which saw growth rates of 40.4% and 27.2% respectively in Q2 2025 [14]. Supermarkets - Supermarkets are optimizing their store networks, with significant closures and adjustments. For example, Yonghui Supermarket closed 223 stores, reducing its total to 552 [15]. - The average revenue for representative supermarket enterprises in Q2 2025 was 3.8 billion yuan, a decrease of 15% year-on-year, primarily due to the closure of underperforming stores [19]. - The average gross margin for supermarkets improved by 0.84 percentage points to 22.82% in Q2 2025, despite a net loss of 160 million yuan [19][25]. Department Stores - The average revenue for representative department store enterprises in Q2 2025 was 1.28 billion yuan, down 11% year-on-year, attributed to weak consumer demand [35]. - The average gross margin for department stores increased by 1.83 percentage points to 36.25% in Q2 2025, while average sales and management expenses decreased by 3% and 2% respectively [35]. Investment Recommendations - The report suggests continuous monitoring of supermarket adjustments and improvements in operational efficiency. Key companies to watch include Yonghui Supermarket, Jiajiayue, Wushang Group, Chongqing Department Store, and Tianhong [42][43].

Investment Rating - The report maintains a "Positive" investment rating for the gold and jewelry industry [4]. Core Viewpoints - The jewelry industry is experiencing a trend towards product upgrades and diversification, with a focus on design and cultural elements to attract younger consumers [16][20]. - Investment demand remains strong, with gold bar and coin sales increasing by 18% year-on-year in Q2 2025, despite a 24% decline in gold jewelry sales [9][32]. - The report suggests that the upcoming holiday season may further boost jewelry demand if gold prices stabilize [52]. Industry Prosperity - The industry is witnessing a slow recovery in gold jewelry demand, with Q2 2025 sales down 24% year-on-year, while investment gold continues to show high demand [9][12]. - The number of marriages has seen a positive year-on-year growth for the first time since 2024, which may alleviate some pressure on diamond jewelry sales [12]. Product Trends - The industry is focusing on multi-material designs and cultural integration, with brands increasingly collaborating with IPs to appeal to niche markets [16][21]. - Notable product innovations include lightweight and high-repurchase items like beads and rings, as well as high-end designs featuring diamonds and enamel [17]. Performance Overview of Jewelry Companies - In H1 2025, the average revenue of representative jewelry brands increased by 15% year-on-year, driven by a 39% rise in gold prices [32]. - Companies like Cai Bai and Lai Shen Tong Ling reported revenue growth rates of 50% and 27%, respectively, due to their focus on investment gold [32]. - The gross profit margin for many brands improved, with Lai Shen Tong Ling, Man Ka Long, and Chao Hong Ji showing significant year-on-year growth in gross profit [32][37]. Investment Recommendations - The report recommends focusing on leading brands that are enhancing product offerings and optimizing channels, specifically highlighting Lao Pu Gold, Chao Hong Ji, Cai Bai, Zhou Da Sheng, and Lao Feng Xiang as key players to watch [52].

Investment Rating - The report maintains a "Positive" investment rating for the consumer services sector [11] Core Insights - In H1 2025, the overall industry revenue increased by 1.0% year-on-year, indicating a stable upward trend, while the overall non-recurring net profit decreased by 7.1% year-on-year. However, in Q2 2025, the non-recurring net profit increased by 15% year-on-year, showing a recovery in profitability [2][19] - Structural opportunities are emerging across various segments, with notable improvements in profitability for human resources and hotel sectors [2][19] Revenue Overview - In H1 2025, the revenue growth was driven by a price-volume trade-off, with human resources, outbound tourism, education, dining, and scenic spots showing year-on-year increases of 10.7%, 8.6%, 3.4%, 3.3%, and 0.5% respectively. The duty-free sector is gradually recovering from a weak period, with a year-on-year decline of 10.1% [20][19] - The hotel industry faced pressure, with a year-on-year decline of 2.7% in performance [20] Profitability Analysis - The overall non-recurring net profit for the industry in H1 2025 decreased by 7.1%, but improved by 15% in Q2 2025. The human resources and hotel sectors saw increases of 6.4% and 1.0% respectively in H1 2025 [24][19] - The duty-free, dining, education, and scenic sectors experienced significant declines in non-recurring net profit, primarily due to weak consumer recovery in Q1 [24][19] Cash Flow Insights - The overall operating cash flow net amount decreased by 15.72% year-on-year in H1 2025, with the dining sector showing a positive growth of 28.89% [31][19] - By Q2 2025, the operating net cash flow for outbound tourism and education sectors turned positive, with increases of 38.51% and 18.02% respectively [31][19] Sector-Specific Highlights - **Tea Beverage**: The segment continues to thrive, with significant revenue and profit growth driven by delivery services and seasonal demand. Notable brands like Gu Ming are recommended for their robust growth potential [7][50] - **Dining**: The sector is recovering, but performance among listed companies varies. Brands with strong value propositions and rapid expansion are highlighted for investment [7][52] - **Education**: Quality institutions are experiencing steady growth, with a focus on AI applications enhancing revenue and profit margins. Recommended companies include Xue Da Education and Action Education [8][50] - **Human Resources**: The demand is structurally improving, with AI technology enhancing efficiency and reducing reliance on manual labor. Recommended companies include Keri International and Beijing Human Resources [8][50] - **Scenic Spots**: The tourism sector is witnessing growth in visitor numbers, supported by favorable policies. Recommended companies include Tianmu Lake and Songcheng Performance [8][50] - **Hotels**: The sector is under pressure, but major hotel groups are achieving cost reductions and efficiency improvements. Recommended companies include Shoulu Hotel and Jinjiang Hotel [9][50] - **Duty-Free**: The decline in offshore duty-free sales is narrowing, with positive trends in port stores. Recommended company is China Duty Free [9][50]

Investment Rating - The report maintains a "Positive" investment rating for the aerospace and defense industry [11]. Core Insights - The next generation of aerospace engines is reaching the thermal limits of metal materials, while ceramic matrix composites (CMCs) offer excellent high-temperature performance and lightweight advantages, indicating significant application potential [2][5]. - The market for CMCs in China's military and civilian aerospace engines is projected to exceed 10 billion yuan annually over the next decade, driven by deep integration of production and research [2][7]. - The global CMC market is expected to maintain a compound annual growth rate (CAGR) of 10% over the next ten years, with the aerospace and defense sector accounting for approximately 39.6% of the market [7][28]. Summary by Sections CMC Overview - CMCs are identified as a new structural material for advanced aerospace engine hot-end components, with a working temperature of up to 1650°C, significantly higher than that of metal alloys [5][28]. - The main types of CMCs currently applied in aerospace engines include silicon carbide fiber-reinforced silicon carbide composites (SiC/SiC) and oxide fiber-reinforced oxide composites (Ox/Ox) [36][41]. International Landscape - The CMC industry in Europe and the U.S. is well-established, with significant investments and advancements in production capabilities, including the successful application of CMCs in various engine components [6][59]. - Companies like GE and Pratt & Whitney have made substantial progress in integrating CMCs into their engine designs, enhancing performance metrics such as thrust-to-weight ratio and fuel efficiency [6][59]. Domestic Development - China's CMC industry is in its early stages, with a focus on integrating research and production, exemplified by partnerships between companies like Huayin Technology and research institutions [8][21]. - Key domestic players include Huayin Technology, Torch Electronics, and AVIC High-Tech, which are actively developing CMC technologies and applications [12][21]. Market Potential - The report estimates that the CMC market in China could exceed 10 billion yuan annually, with significant demand driven by military and civilian aerospace applications [7][28]. - The demand for CMCs is expected to be further propelled by advancements in gas turbine technology, with projected cumulative demand exceeding 68 billion yuan from 2024 to 2027 [7][28].

Investment Rating - The report maintains a "Positive" investment rating for the coal industry [10]. Core Insights - Since the third quarter, the coal sector has seen a cumulative decline of 9% year-to-date, with only a 4% increase since Q3 2025. The report suggests focusing on the coal sector for potential recovery due to favorable demand policies and supply constraints [2][7]. - The report highlights three main advantages for the coal sector: (1) Demand stimulus policies combined with supply control make prices more likely to rise; (2) The coal sector has lower valuations and greater elasticity compared to other cyclical resources; (3) Marginal catalysts such as price stabilization and potential policy support could drive further price increases [2][7]. Summary by Sections Market Performance - The coal index (Yangtze) increased by 0.31% this week, underperforming the CSI 300 index by 1.07 percentage points. The thermal coal market price as of September 12 was 680 CNY/ton, with a weekly increase of 1 CNY/ton [6][20]. - The report notes that the coal sector's performance has been weaker compared to other cyclical resource sectors, which have seen significant gains [7][20]. Supply and Demand Analysis - The report indicates that despite a decrease in daily coal consumption, the upcoming "golden September and silver October" period is expected to support demand, particularly for non-electric uses. Supply remains constrained due to production controls [21]. - For coking coal, the price remained stable at 1540 CNY/ton, with expectations of limited price declines due to ongoing demand from the steel sector [21]. Investment Recommendations - The report recommends several stocks based on their potential for recovery: 1. High elasticity stocks: Yanzhou Coal Mining, Jinneng Holding, Huayang Co., Lu'an Environmental Energy, Pingmei Shenma Energy, and Huaibei Mining. 2. Low valuation growth: Electric Power Investment. 3. Long-term stable profit leaders: China Coal Energy and China Shenhua Energy [8]. Price Trends - Historical data shows that from 2014 to 2024, the prices of both thermal and coking coal typically rise in September, indicating a seasonal trend that could support future price increases [16]. Company Performance - The report lists the top-performing coal companies this week, including Antai Group (8.11%) and Baotailong (5.96%), while noting declines in companies like Anyuan Coal Industry (-5.33%) and Shanxi Coal and Electricity (-1.42%) [31][34].

Investment Rating - The report maintains a "Buy" rating for the company [9] Core Viewpoints - The company's performance met expectations with significant market expansion, achieving revenue of 268 million yuan in the first half of 2025, a year-on-year increase of 13.50% [6][12] - The company actively expanded its customer base, adding 623 new clients in the first half of 2025, and developed 56 new product specifications across 13 series based on customer needs [2][12] - Gross margin improved to 42.57%, up 1.16 percentage points from 41.41% in 2024, while net margin increased to 17.74%, up 4.68 percentage points from 13.06% in 2024, driven by enhanced production efficiency and scale effects [12] - The company focused on overseas markets, generating 168 million yuan in overseas revenue, accounting for approximately 62.83% of total revenue, with over 30% from the U.S. market [12] - The company has developed a comprehensive product system with over 100 specifications across seven major categories in laboratory consumables and a series of biological reagents [12] - Future profit projections for the company are optimistic, with expected net profits of 90 million, 113 million, and 143 million yuan for 2025, 2026, and 2027 respectively, corresponding to PE ratios of 30, 24, and 19 times [12]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - In the first half of 2025, the company achieved a revenue of 9.01 billion, a year-on-year decline of 3.8%, while the net profit attributable to shareholders was 180 million, a year-on-year increase of 7.8%. In Q2 alone, the revenue was 4.07 billion, down 2.6% year-on-year, but the net profit attributable to shareholders surged by 82.6% to 40 million, with a non-recurring net profit growth of 120.5% to 40 million [2][4]. Summary by Sections Financial Performance - The company reported a total revenue of 90.1 billion for the first half of 2025, down 3.8% year-on-year, with a net profit of 1.8 billion, up 7.8%. In Q2, revenue was 40.7 billion, down 2.6%, while net profit reached 0.4 billion, up 82.6%, and non-recurring net profit increased by 120.5% to 0.4 billion [2][4]. Operational Adjustments - The company optimized its store layout by closing 16 stores, resulting in a total of 1,084 stores, while opening 29 new stores and closing 45. The revenue from comprehensive supermarkets and community fresh supermarkets saw a limited decline of 2% and 4% respectively, while rural supermarkets experienced a 12% drop. The company completed upgrades on 30 stores, enhancing shopping environments and product quality [9]. Supply Chain and Cost Management - The company focused on streamlining expenses, reducing four types of period costs by 73.76 million. The logistics costs decreased by 6.16% year-on-year, and the satisfaction rate of logistics to stores improved by 6%. The company is also advancing the construction of a logistics base in Hohhot and a modern bakery factory [9]. Future Outlook - The company aims to strengthen its core categories such as fresh and processed fresh products while expanding its supply chain coverage. The expected EPS for 2025-2027 is projected to be 0.31, 0.38, and 0.45 respectively, maintaining a "Buy" rating [9].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a significant narrowing of profit decline and notable improvement in gross margin in its 2025 mid-year report. For H1 2025, revenue was 2.37 billion yuan, a year-on-year decrease of 15.4%, while net profit attributable to shareholders was 250 million yuan, down 49% year-on-year. In Q2 alone, revenue was 1.42 billion yuan, down 16.7% year-on-year, and net profit was 220 million yuan, down 29% year-on-year, with a reduced decline compared to Q1 [2][4]. Summary by Sections Revenue and Profitability - In H1 2025, the company's revenue was 2.37 billion yuan, reflecting a 15.4% year-on-year decline. The net profit attributable to shareholders was 250 million yuan, down 49% year-on-year. In Q2, revenue was 1.42 billion yuan, a 16.7% year-on-year decline, and net profit was 220 million yuan, down 29% year-on-year, with a reduced decline from Q1's 84% [2][4]. Brand Performance - The main brand faced temporary pressure, while the sub-brand Aikeman showed impressive growth. In H1 2025, revenues for various brands were as follows: Winona (1.95 billion yuan, -18.4%), Winona Baby (110 million yuan, +8.6%), Aikeman (50 million yuan, +93.9%), Jirui (210 million yuan, -11.5%), and Pomei (20 million yuan, -4.7%) [10]. Gross Margin and Expenses - The gross margin improved by 3.4 percentage points to 76% in H1 2025, attributed to stable pricing strategies and reduced promotional expenses. The expense ratios for sales, management, R&D, and finance increased by 8.6, 1.9, 0.8, and 0.4 percentage points respectively, leading to a total expense ratio increase of 11.8 percentage points [10]. Future Outlook - The company is expected to see a recovery in profit margins driven by stable pricing of core products and continued growth in Aikeman. The projected EPS for 2025-2027 is 1.18, 1.55, and 1.67 yuan respectively, supporting the "Buy" rating [10].