Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company is expected to see significant growth in overseas business gross margin due to self-research of core components and an increase in the proportion of high-end products. The precision agriculture products have expanded their application scenarios, and the passenger vehicle business has progressed smoothly with a delivery volume of 300,000 units. The company aims for a net profit of 730 million yuan in 2025, representing a year-on-year increase of 25% [2][6]. Financial Performance - In the first half of 2025, the company reported revenue of 1.833 billion yuan, a year-on-year increase of 23.54%, and a net profit attributable to the parent company of 326 million yuan, up 29.94%. The non-recurring net profit was 299 million yuan, reflecting a 41.80% increase [6]. Business Segmentation - Revenue from the resource and public utilities segment was 702 million yuan, up 3.09% year-on-year; the construction and infrastructure segment generated 659 million yuan, up 23.67% due to increased RTK market share; the geographic information segment saw revenue of 359 million yuan, up 87.61% driven by significant growth in 3D intelligent products; the robotics and autonomous driving segment earned 114 million yuan, up 43.80% due to substantial volume from a specific automotive client [12]. Geographic Performance - Domestic revenue reached 1.232 billion yuan, a year-on-year increase of 18.58%, while overseas revenue was 602 million yuan, up 35.09%, indicating a recovery to over 40% growth for the full year [12]. Growth Drivers - The company is focusing on four main growth areas: overseas expansion, 3D intelligence, precision agriculture, and intelligent driving. The overseas market is expected to provide high margins and rapid growth, with overseas revenue accounting for 29% of total revenue and a gross margin of 77.6%, which is 27 percentage points higher than the domestic market [12]. Profit Forecast - The company aims for a net profit of 730 million yuan in 2025, with projections of 756 million yuan, 995 million yuan, and 1.326 billion yuan for 2026 and 2027, respectively, reflecting year-on-year growth rates of 30%, 32%, and 33% [12].

Investment Rating - The industry investment rating is "Positive" and maintained [10] Core Insights - In the first seven months of the year, narrow infrastructure investment reached 10.5 trillion yuan, a year-on-year increase of 3.2%, while broad infrastructure investment was 14.3 trillion yuan, up 7.4% year-on-year [2][7] - In July, narrow infrastructure investment saw a significant decline of 5.2%, marking the first monthly decrease since 2022, indicating increased pressure on infrastructure [12] - Road investment experienced a notable downturn in July, with a year-on-year decrease of 16.6%, while railway investment continued to show positive trends with a growth rate of 12.4% [12] - Actual infrastructure demand appears weak, with cement production in July down 5.3% year-on-year, reflecting pressure on both housing and traditional infrastructure [12] - The government has accelerated the issuance of special bonds, with a total of 28,369 billion yuan issued this year, indicating a focus on stabilizing growth through fiscal measures and major projects [12] Summary by Sections Investment Performance - Narrow infrastructure investment decreased by 5.2% in July, while broad infrastructure investment fell by 1.4% [12] - Cumulative narrow infrastructure investment for the first seven months was 10.5 trillion yuan, with a year-on-year increase of 3.2% [12] Sector Analysis - Road investment saw a significant decline, while railway investment maintained a positive trajectory [12] - Water conservancy investment showed a decrease of 4% in July, but the decline was less severe than in previous months [12] Demand and Growth Strategies - Cement production and sales data suggest a decline in actual infrastructure demand, despite a smaller decrease in cement output compared to investment figures [12] - The report emphasizes the importance of fiscal measures and major projects to stabilize growth, with a focus on significant infrastructure projects [12]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company's core business in home appliances is experiencing stable growth, while the strategic segments of power tools and automotive electronics are deepening their layouts. The smart product business and the T/R chip business of its subsidiary, Chengchang Technology, have become new growth drivers, with the latter showing rapid performance growth, providing significant space for future growth [3][9]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved operating revenue of 5.446 billion yuan, a year-on-year increase of 19.21%. The net profit attributable to the parent company was 354 million yuan, up 78.65% year-on-year [3][9]. - The overall gross margin improved by 1.66% year-on-year, driven by the optimization of customer and product structure in the controller business and the increased gross margin of Chengchang Technology's products [9]. Business Segments - The home appliance segment, as the company's foundational business, achieved sales revenue of 3.563 billion yuan, a year-on-year increase of 22.14%, with a gross margin increase of 0.94% [9]. - The power tools and industrial automation business generated revenue of 535 million yuan, up 8.32% year-on-year. The automotive electronics segment reported revenue of 415 million yuan, a year-on-year increase of 5.20% [9]. - The smart product segment, positioned as a new strategic growth driver, achieved sales revenue of 618 million yuan, a year-on-year increase of 9.92%, with a gross margin of 23.67% [9]. - Chengchang Technology's T/R chip business reported revenue of 201 million yuan, a remarkable year-on-year increase of 180.16%, with net profit reaching 57 million yuan, up 333.23% [9]. Future Outlook - The company expects net profit attributable to the parent company to reach 700 million yuan, 916 million yuan, and 1.176 billion yuan for the years 2025 to 2027, representing year-on-year growth rates of 92%, 31%, and 28%, respectively [9].

Investment Rating - The report maintains a "Positive" investment rating for the industry [4]. Core Viewpoints - The AIDC electrical equipment export market has significant upside potential due to the high construction costs of overseas data centers compared to domestic markets [25]. - Major cloud service providers (CSPs) are increasing their capital expenditures (Capex), which is expected to drive demand for AIDC equipment [11][18]. - The trend towards higher voltage and power levels in AIDC equipment is likely to enhance the unit value of products [29]. - There is a notable supply shortage in the electrical equipment sector, which may lead to an increase in domestic market share for local manufacturers [30]. - Technological advancements in areas such as HVDC and battery technology present opportunities for domestic companies to capture market share [34]. Summary by Sections Demand - CSPs like Google, Amazon, and Microsoft have reported significant year-on-year growth in cloud revenues and capital expenditures, indicating a robust demand for AIDC equipment [11][18]. - The expected Capex for 2025 from major CSPs is projected to reach approximately $85 billion for Google, $118 billion for Amazon, and $80 billion for Microsoft, reflecting a substantial increase from previous forecasts [13][18]. Value - The construction costs for overseas data centers are significantly higher than those in the domestic market, with large-scale greenfield developments costing between $7 billion to $12 billion per GW [25]. - The unit value of AIDC equipment is expected to rise due to trends in high voltage and high power requirements, with server power supplies projected to increase from 800W to 5.5kW and beyond [29]. Market Share - The supply shortage in the electrical equipment sector is becoming more pronounced, with major companies like Vertiv and Siemens reporting substantial backlogs in orders [30]. - Domestic manufacturers are positioned to benefit from technological advancements and the increasing demand for high-density power solutions, potentially leading to an increase in market share [34][50]. Investment Recommendations - The report suggests focusing on segments experiencing supply shortages, technological iterations, and incremental demand growth, particularly in high voltage and high power applications [54].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - In H1 2025, the company achieved revenue of 1.82 billion yuan, a year-on-year increase of 16%, with net profit attributable to the parent company at 138 million yuan, up 2% [2][4]. - Q2 2025 saw revenue of 961 million yuan, an 18% year-on-year increase, while net profit decreased by 23% [2][4]. - The company anticipates continued revenue acceleration in Q3 and expects a turnaround in profits for 2025, driven by growth in its core businesses, particularly in electronic cigarettes and health environment sectors [4]. Summary by Sections Financial Performance - For H1 2025, the company reported revenue of 1.82 billion yuan, with a net profit of 138 million yuan and a non-recurring net profit of 130 million yuan, reflecting increases of 16%, 2%, and 15% respectively [2][4]. - In Q2 2025, revenue was 961 million yuan, with a year-on-year growth of 18%, while net profit and non-recurring net profit were 61 million yuan and 55 million yuan, showing declines of 23% and 20% respectively [2][4]. Business Segments - The innovative consumer electronics segment saw a revenue increase of 42% in H1 2025, with a gross margin improvement of 4.5 percentage points [4]. - The health environment segment reported a 36% revenue increase, while the automotive electronics segment grew by 12% [4]. - The smart control components segment experienced a 16% revenue decline due to tariff impacts and reduced customer demand [4]. Future Outlook - The company expects to maintain a growth trajectory in its core businesses, particularly in electronic cigarettes, health environment, and automotive electronics, with significant contributions from new product lines and international expansion [4]. - R&D investment for H1 2025 was 166 million yuan, accounting for 9.13% of revenue, indicating a commitment to innovation and market expansion [4].

Investment Rating - The investment rating for China Resources Cement Technology (1313.HK) is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 10.206 billion yuan for the first half of 2025, a year-on-year decrease of 1.0%, while the net profit attributable to shareholders was 307 million yuan, reflecting an increase of 85% year-on-year [2][4]. - The overall industry demand is under pressure, but the Guangdong and Guangxi regions are performing relatively better than the national average. National cement production decreased by 4.3% year-on-year to 820 million tons in the first half of 2025 [5]. - The company’s cement sales volume decreased by 13% year-on-year to 25.31 million tons, while concrete sales volume increased by 36% year-on-year to 68.77 million tons, and aggregate sales volume increased by 23% year-on-year to 36.34 million tons [5]. - The average price of cement products was 247 yuan per ton, an increase of 9 yuan per ton year-on-year, while the average price of commercial concrete was 303 yuan per ton, a decrease of 41 yuan per ton year-on-year [5]. Summary by Sections Company Overview - The company is primarily located in the Guangdong and Guangxi regions, which are expected to see better demand growth compared to the national average. The production line utilization rates for cement, concrete, and aggregates were 56.8%, 32.0%, and 80.2%, respectively, compared to 64.2%, 27.1%, and 75.1% in the same period of 2024 [5][7]. Market Dynamics - The mid-term outlook for the South China market is positive due to the construction momentum from the Greater Bay Area. The regional supply has stabilized, and the market is entering a rebalancing phase. The company, as a regional leader, has comprehensive advantages in scale and distribution [7]. Financial Projections - The industry is expected to gradually optimize its structure, with the company projected to achieve net profits of 700 million yuan and 1 billion yuan for 2025 and 2026, respectively, corresponding to price-earnings ratios of 17 and 12 times [7].

Investment Rating - The report maintains a "Positive" investment rating for the industry [3]. Core Insights - The report highlights the opportunity for domestic substitution in laser drilling technology for PCBs, driven by advancements in AI and the increasing complexity of PCB manufacturing [1][11]. - The global PCB laser drilling equipment market is projected to grow, with Asia dominating the market share due to strong manufacturing capabilities in countries like China, Japan, and South Korea [48][49]. Summary by Sections Section 1: PCB Expansion and Technology Iteration - The production process of different types of PCBs involves various key equipment, including drilling, exposure, plating, and lamination [8]. - The global scale distribution of PCB production equipment in 2024 is detailed, with significant investments in drilling and exposure equipment [9]. Section 2: Laser Drilling Technology - Laser drilling technology is categorized into CO2, UV, and ultrafast lasers, each with specific applications in PCB manufacturing [20][21]. - The penetration rate of laser drilling technology is expected to increase due to the rising demand for high precision and smaller hole sizes in PCBs [19][39]. - The report discusses the advantages of ultrafast laser drilling, including minimal thermal impact and high-quality hole production, which is crucial for high-frequency signal transmission [43]. Section 3: Market Dynamics - The global PCB laser drilling equipment market size was approximately $917 million in 2023, with CO2 laser drilling machines holding over 70% market share [48]. - The report emphasizes the leading position of international manufacturers in the laser drilling equipment market, while also highlighting the potential for domestic manufacturers to accelerate their market presence [51][52]. Section 4: Domestic Manufacturer Developments - Domestic companies like Dazhu CNC are expanding their product lines to cover various laser drilling technologies, indicating a shift towards local production capabilities [52][54]. - The report outlines the advancements and product offerings of several domestic manufacturers, showcasing their efforts to meet the growing demands of the PCB industry [53].

Investment Rating - The report maintains a "Positive" investment rating for the industry [3] Core Insights - The report highlights the increasing potential demand for AIDC and energy storage in emerging markets, driven by the photovoltaic industry's anti-involution catalysts [7][15] - The overall market sentiment is optimistic, with the CJ Electric New Index rising by 5.57% this week, indicating a strong performance across all sub-sectors [7][31] Summary by Sections 1. Photovoltaics - The photovoltaic sector is experiencing a stable price environment, with the Ministry of Industry and Information Technology planning a meeting to discuss component procurement results [18][21] - The report emphasizes the importance of the anti-involution strategy in the photovoltaic industry, with expectations for price stability and potential recovery in demand due to new pricing mechanisms in regions like Shandong and Gansu [27][35] - Recommended stocks include Tongwei Co., GCL-Poly Energy, LONGi Green Energy, and Aiko Solar, focusing on those benefiting from the anti-involution strategy [15][35] 2. Energy Storage - The energy storage sector is witnessing unexpected demand growth, particularly in emerging markets, with Indonesia announcing a 320GWh distributed battery storage plan [40][41] - The report notes that major players like Sungrow Power and CATL are strengthening their market positions, with significant projects enhancing their competitive edge [44][48] - Recommended stocks in this sector include Sungrow Power, DeYe, and Airo Energy, focusing on those with strong growth potential in both domestic and international markets [15][49] 3. Lithium Batteries - The lithium battery sector remains stable, with a focus on solid-state battery advancements and the ongoing demand for electric vehicles [15][35] - Key players such as CATL and other second-tier companies are expected to benefit from the stable market conditions and potential price rebounds in lithium carbonate [15][35] 4. Wind Power - The wind power sector is seeing accelerated offshore wind project approvals, with companies like Mingyang Smart Energy and Haili Wind Power expected to benefit from this trend [15][35] - The report highlights the importance of supply chain recovery and profitability restoration in the wind turbine segment [15][35] 5. Power Equipment - The power equipment sector is experiencing growth driven by high-voltage projects and increasing overseas demand [15][35] - Recommended stocks include Mingyang Electric and Sifang Co., focusing on those involved in high-voltage and data center projects [15][35] 6. New Directions - The report discusses the rising demand for humanoid robots and AIDC technologies, with significant growth expected in AI applications and related sectors [15][35] - Companies like Sanhua Intelligent Control and Zhejiang Rongtai are highlighted as key players in this emerging market [15][35]

Report Investment Rating - The industry investment rating is oscillating and strengthening [3] Core Viewpoints - Short - term: Due to the increasing expectation of Fed rate cuts and the positive USDA report, the futures market oscillated and rebounded, and the 09 contract successfully reduced its positions. Next week, the market will mainly show an oscillating or rebounding trend. Attention should be paid to the results of the meeting between Trump and Putin on August 15th and its impact on the international situation. There are no other major domestic or international macro - events. The CF2509 contract should be watched in the range of [13560 - 13930], and the CF2601 contract in the range of [13920 - 14300] [5] - Medium - term: The long and short positions of the 09 futures contract were closed quickly and are almost stable. The probability of a US rate cut in September has risen significantly to over 90%. With the upcoming new cotton listing, the psychological expectation of ginneries for machine - picked cotton purchase is 6 - 6.3 yuan/ton. The pre - sale volume of new cotton has increased significantly compared with last year, about 1.5 million tons, which supports the price of newly - listed seed cotton, and the initial price is slightly higher. Additionally, with the approaching "Golden September and Silver October", there is a possibility of support or rebound in futures prices [5] - Long - term: Currently, the purchase price of hand - picked cotton in Kashgar is 7 - 7.3 yuan/ton, and the pre - sale price of cottonseed is 2.26 - 2.4 yuan/kg. The psychological expectation of ginneries for machine - picked cotton purchase is 6 - 6.3 yuan/ton, and they are cautious about prices higher than this. Comparing with the current price of the 2601 contract at 14100 - 14200 yuan/ton, farmers can make a profit. This year, the yield per unit has increased. For farmers who lease land, they can break even by selling at 6.66 yuan/ton (including the target subsidy, and it is expected that this year's subsidy will decrease to 0.6 - 0.7 yuan/kg). So, a seed cotton delivery price of 6 yuan/kg can ensure break - even. Also, the pre - sale volume of new cotton has increased significantly compared with last year, about 1.5 million tons, which supports the price of newly - listed seed cotton, and the initial price is slightly higher. During this period, the market is expected to oscillate or may have a rebound opportunity, with support at 13600 - 13700 and resistance at 14300 - 14600. After October, the price is expected to decline, and next year it is expected to oscillate and strengthen [5] Summary by Directory 01 - Weekly Viewpoint - Cotton - Short - term: The futures market will oscillate or rebound next week. Pay attention to the meeting between Trump and Putin on August 15th. The CF2509 contract should be watched in the [13560 - 13930] range, and the CF2601 contract in the [13920 - 14300] range [5] - Medium - term: The 09 contract is almost stable. The probability of a US rate cut in September is over 90%. New cotton pre - sale volume has increased, and the approaching "Golden September and Silver October" may support futures prices [5] - Long - term: Current purchase prices of different types of cotton are given. New cotton pre - sale volume has increased. The market may oscillate or rebound, with support and resistance levels provided. After October, the price may decline, and next year it may oscillate and strengthen [5] 02 - Weekly Viewpoint - Cotton Yarn - This week, Zhengzhou cotton oscillated and rebounded. The cotton yarn market's trading improved with the gradual recovery of downstream demand. Spinning mills' quotes were mainly stable, with some local preferential sales. Some traders' low - price sales decreased slightly. Air - jet spun and regular varieties were mainly for rigid demand. In terms of profit, as cotton prices stabilized, profit performance gradually became stable. Currently, inland spinning mills' C32S cash - flow loss is about 500 yuan/ton, while Xinjiang spinning mills still have a small profit. Overall, enterprises still face challenges of compressed processing profit and inventory pressure. The short - term market may continue to oscillate, following the cotton market but under greater pressure [7] 03 - Market Review - Cotton market: This week, the cotton market oscillated and strengthened, and the spot market remained strong. The main futures contract oscillated and adjusted. Although the overall commodity market was optimistic, the downstream procurement enthusiasm was still poor, and cotton prices were relatively stable [11] - Cotton yarn market: This week, the cotton yarn spot market remained stable, and the futures market oscillated and strengthened. The downstream still faced insufficient demand and production reduction. Enterprises' profit pressure was relatively large [11] 04 - International Macro - Multiple important economic data of the US and the Eurozone from August 1st to 20th, 2025 are presented, including unemployment rate, non - farm payrolls, trade balance, CPI, PPI, GDP, etc. [13] 05 - Domestic Macro - Multiple important economic data of China from August 7th to 20th, 2025 are presented, including foreign exchange reserves, CPI, PPI, fixed - asset investment, retail sales, and unemployment rate [15] 06 - Global Supply - Demand Balance Sheet - According to the USDA's August global cotton supply - demand forecast report, in the 2025/26 season, global cotton production, consumption, and import - export trade volume were all adjusted down month - on - month, and the ending inventory decreased month - on - month. In the 2024/25 season, global cotton production was expected to be adjusted down, consumption to be increased, and exports to be decreased. With the reduction of the beginning inventory, the ending inventory in the 2024/25 season decreased again [16] 07 - Domestic Supply - Demand Balance Sheet - 2024/25 season: The beginning inventory was 6.81 million tons, the national production was 6.85 million tons, and the annual import volume was adjusted down to 1.03 million tons. The monthly cotton consumption decreased month - on - month but increased year - on - year, and the annual cotton consumption was expected to be increased by 50,000 tons to 8.05 million tons. The total demand increased by 50,000 tons to 8.45 million tons, and the ending inventory was adjusted down by 120,000 tons to 6.24 million tons [18][22] - 2025/26 season: The beginning inventory was adjusted down by 120,000 tons to 6.24 million tons. Xinjiang's production increased by 120,000 tons to 6.59 million tons, and inland production decreased by 3,000 tons to about 310,000 tons. The national total production increased by about 120,000 tons to 6.9 million tons. The annual import volume was expected to be adjusted down by 100,000 tons to 1.4 million tons. The annual cotton consumption was expected to remain at 7.9 million tons, other consumption and exports remained at 380,000 tons and 20,000 tons respectively, and the total demand remained stable at 8.3 million tons. The ending inventory was adjusted down by 100,000 tons to 6.24 million tons [19][22] 08 - US Cotton Exports - As of August 7, 2025, the US had cumulatively net - signed 730,000 tons of cotton for the 2025/26 season, accounting for 27.95% of the annual expected export volume, and had cumulatively shipped 35,000 tons, with a shipment rate of 4.80%. Among them, upland cotton signing volume was 709,000 tons, shipping 32,000 tons, with a shipment rate of 4.56%; Pima cotton signing volume was 21,000 tons, shipping 3,000 tons, with a shipment rate of 12.89%. China had cumulatively signed 3,000 tons of US cotton for the 2025/26 season, accounting for 0.35% of the US's signed volume, and had cumulatively shipped 181 tons, accounting for 0.52% of the US's total shipment volume and 7.14% of China's signed volume [26] 09 - Industrial and Commercial Inventory - At the end of July, the national commercial cotton inventory was 2.1898 million tons, a decrease of 640,000 tons from last month, a decline of 22.62%, and 588,400 tons lower than the same period last year, a decline of 21.18%. As of the end of July, the textile enterprises' in - stock industrial cotton inventory was 898,400 tons, a decrease of 4,600 tons from the end of last month. The textile enterprises' disposable cotton inventory was 1.2062 million tons, a decrease of 9,400 tons from the end of last month. The total industrial and commercial inventory was 3.0882 million tons, a year - on - year decrease of 497,000 tons [28] 10 - Cotton and Cotton Yarn Imports in June - In June 2025, China's cotton import volume was 30,000 tons, a decrease of 10,000 tons from the previous month, a decline of 25.0%, and a decrease of 130,000 tons from the same period last year, a decline of 82.1%. From January to June 2025, China had cumulatively imported 460,000 tons of cotton, a year - on - year decrease of 74.3%. From September 2024 to August 2025, China had cumulatively imported 950,000 tons of cotton, a year - on - year decrease of 75.4%. In June 2025, China's cotton yarn import volume was 110,000 tons, a year - on - year increase of about 0.1%, and a month - on - month increase of about 10,000 tons, an increase of about 10%. From January to June 2025, China had cumulatively imported 670,000 tons of cotton yarn, a year - on - year decrease of 13.6%. From September 2024 to June 2025, China had cumulatively imported about 1.17 million tons of cotton yarn, a year - on - year decrease of 18.18% [32] 11 - Cotton Yarn Production and Sales in July - In July, with the further reduction of spinning mills' operation rate, production continued to decline. The production of pure cotton yarn (excluding recycled yarn) in July was 434,000 tons, a year - on - year increase of 12.1% and a month - on - month decrease of 3.2%. From January to July, the cumulative production of pure cotton yarn was 3.004 million tons, a year - on - year increase of 1.6%. July is still the traditional off - season for spinning mills. The downstream market showed some differentiation. From the perspective of operation rate and orders, the knitting market's orders increased slightly, and the operation rate rebounded slightly but remained at a low level. The operation rate of the weaving market mostly decreased. It is initially estimated that the consumption of pure cotton yarn (excluding recycled yarn) in July 2025 was 503,000 tons, a year - on - year decrease of 3.7% and a month - on - month decrease of 0.8%. From January to July, the cumulative consumption was 3.592 million tons, a year - on - year decrease of 5.9% [36] 12 - US Cotton Growth - As of August 10, the budding rate of cotton in 15 major cotton - growing states in the US was 93%, 2 percentage points slower than last year and 1 percentage point slower than the five - year average. The boll - setting rate was 65%, 7 percentage points slower than last year and 6 percentage points slower than the five - year average. The boll - opening rate was 8%, 4 percentage points slower than last year and 2 percentage points slower than the five - year average. The good - to - excellent rate was 53%, 7 percentage points higher than last year and 8 percentage points higher than the five - year average. The growth progress of US cotton was slower than last year and the five - year average, and the good - to - excellent rate decreased slightly month - on - month but was still much higher than the historical average [39] 13 - US Cotton Weather - As of August 12, the drought degree and coverage index of the main US cotton - growing areas (93.0%) was 50, an increase of 8 month - on - month and a decrease of 18 year - on - year. The drought degree and coverage index of Texas was 66, an increase of 2 month - on - month and a decrease of 26 year - on - year. The drought level in the main US cotton - growing areas rebounded, and that in Texas was basically stable month - on - month. In the past two weeks, the main growing areas and Texas had high temperatures and little rain, so the drought seasonally rebounded. Currently, the impact is not significant, and attention should be paid to whether the weather will continue to deteriorate [43] 14 - Xinjiang Cotton Growth - As of August 11, 2025, Xinjiang's cotton growth had entered the late boll - setting stage. Affected by continuous high - temperature weather in some cotton areas, the boll - setting rate of upper fruit branches was low, and the number of top bolls decreased. The average number of bolls was 8.4, a decrease of 0.2 from the previous week. Among them, the average number of bolls in southern Xinjiang was 8.3, a decrease of 0.2; in northern Xinjiang, it was 8.4, a decrease of 0.4; in eastern Xinjiang, it was 8.4, the same as last week. This year, the number of pre - summer bolls increased by about 1 - 2 compared with last year. If proper management is carried out in the later stage to increase the number of autumn bolls and prevent cotton field premature aging, most cotton farmers are optimistic about this year's cotton yield increase, with an expected increase of 15 - 30 kg. Currently, cotton in some areas of southern and eastern Xinjiang has begun to open bolls, about 5 - 10 days earlier than last year. Cotton field management is coming to an end, and the supply of water and fertilizer is gradually decreasing. According to the survey, some cotton fields plan to stop irrigation around August 20 and start spraying defoliants around September 5. The new cotton picking time will be about 10 days earlier than in previous years [45] 15 - Textile Industry Inventory - In June, the textile industry's inventory was 401.53 billion yuan, a month - on - month increase of 0.30% and a year - on - year increase of 1.12%. The textile industry's finished - product inventory was 215.3 billion yuan, a month - on - month increase of 1.18% and a year - on - year increase of 2.42%. The textile and clothing inventory was 187.98 billion yuan, a month - on - month increase of 0.78% and a year - on - year decrease of 0.36%. The textile and clothing finished - product inventory was 99.31 billion yuan, a month - on - month increase of 2.25% and a year - on - year increase of 1.68% [46] 16 - Domestic Demand - According to the National Bureau of Statistics, in July 2025, the total retail sales of consumer goods were 3.878 trillion yuan, a year - on - year increase of 3.7% and a month - on - month decrease of 8.29%. From January to July 2025, the total retail sales of consumer goods were 28.4238 trillion yuan, a year - on - year increase of 4.8%. In July, the retail sales of clothing, footwear, knitted, and textile products were 96.1 billion yuan, a year - on - year increase of 1.8% and a month - on - month decrease of 24.63%. From January to July, the cumulative retail sales were 837.1 billion yuan, a year - on - year increase of 2.9% [51] 17 - External Demand - According to the latest data from the General Administration of Customs, in July 2025, China's textile and clothing exports were 26.766 billion US dollars, a year - on - year decrease of 0.06% and a month - on - month decrease of 2

Investment Rating - The report maintains a "Positive" investment rating for the industry [11]. Core Insights - In the first half of 2025, China's total exports of HVO and SAF reached 338,400 tons, a year-on-year increase of 8.06%, with domestic SAF export channels successfully opened [2][6]. - Biodiesel exports fell to 381,000 tons, a decrease of 42.4% year-on-year, primarily due to anti-dumping tariffs [7][17]. - UCO exports totaled 1,262,000 tons, down 10.5% year-on-year, with Singapore replacing the U.S. as the largest export destination [8][31]. - The report suggests monitoring overseas policies and demand changes, anticipating more supportive domestic policies to be implemented [9][43]. Summary by Sections SAF & HVO - In H1 2025, China's SAF export channels were successfully opened, with a total export volume of 338,400 tons, marking an 8.06% increase year-on-year. Jiangsu Province exported 14,900 tons of SAF to Belgium and Spain in June, likely from the Jiaao Environmental Lianyungang factory [6][16]. - Domestic SAF exports require approval from four government departments, and Jiaao Environmental received a license for 372,400 tons of bio-jet fuel, indicating a positive trend for future SAF exports [6][16]. Biodiesel - Biodiesel exports in H1 2025 were 381,000 tons, down 42.4% year-on-year, mainly due to anti-dumping tariffs imposed by the EU [7][17]. - Major export partners included Malaysia (141,000 tons), Singapore (98,700 tons), and the Netherlands (70,000 tons), with significant increases in exports to Malaysia and Singapore, likely for blending with marine fuel [7][22]. - The average export price for biodiesel was $1,103 per ton, a slight increase of 2.0% year-on-year, while total export value dropped by 40.6% to $3.02 billion [17]. UCO - UCO exports in H1 2025 were 1,262,000 tons, a decrease of 10.5% year-on-year, attributed to increased domestic SAF production and the cancellation of export tax rebates [8][29]. - The average export price for UCO was $1,048 per ton, up 17.9% year-on-year, driven by the EU's mandatory blending policy for SAF [8][29]. - Singapore became the largest export destination for UCO, with exports to the U.S. declining significantly due to high tariffs [31][35]. Market Outlook - The report emphasizes the need to track overseas policy changes and anticipates more domestic supportive policies to be implemented [9][43]. - The U.S. market faces significant uncertainty due to fluctuating tariff policies, while the EU's blending ratio requirements for SAF are expected to boost China's SAF industry [43]. - In Singapore, the demand for clean alternative fuels is projected to increase due to new carbon quota regulations for the shipping industry [43]. Investment Recommendations - The industry is viewed positively due to its reliance on waste oils as raw materials, with several companies producing qualified SAF and obtaining airworthiness certification. The report recommends focusing on raw material suppliers and processing companies like Zhuoyue New Energy [9][47].