Investment Rating - The report maintains a "Positive" outlook on the pharmaceutical and biotechnology industry [3][4]. Core Insights - The overall performance of the pharmaceutical sector in the first half of 2024 was stable, with 471 A-share pharmaceutical companies achieving a total revenue of 1,254.5 billion yuan, a year-on-year decrease of 0.4%, and a net profit of 102.1 billion yuan, down 2.6% year-on-year [4][5]. - The innovative drug and blood products sectors showed robust growth, with innovative drug companies generating 41.3 billion yuan in revenue in the first half of 2024, a year-on-year increase of 51.2% [4][6]. Summary by Relevant Sections Overall Sector Performance - In Q2 2024, the pharmaceutical sector's total revenue was 617.8 billion yuan, down 1.4% year-on-year and 3.0% quarter-on-quarter, with a net profit of 48.8 billion yuan, reflecting a year-on-year decline of 5.4% and a quarter-on-quarter decline of 8.2% [4][5]. Subsector Performance 1. **Pharmaceuticals**: - The innovative drug and blood products sectors performed well, while the vaccine sector faced pressure. Blood products showed stable performance with revenue growth exceeding 10% year-on-year and profit growth of 18.6% [4][7]. - The innovative drug sector saw revenue growth of over 30% in Q2 2024, aided by significant loss reduction from companies like BeiGene [7]. 2. **Medical Devices**: - The consumables segment exhibited strong growth, with a net profit increase of 12.8% year-on-year in Q2 2024. However, the medical equipment and IVD segments experienced around a 10% decline in net profit due to high base effects from the previous year [4][7]. 3. **Healthcare Services**: - The CXO (Contract Research Organization) segment reported a 9.4% year-on-year revenue decline and a 32.0% drop in net profit, but showed signs of recovery with a 9.3% revenue increase and a 52.1% profit increase quarter-on-quarter in Q2 2024 [4][7]. Investment Recommendations - The report recommends focusing on companies in the innovative drug and blood products sectors, including Heng Rui Medicine, Xin Nuo Wei, BeiGene, and others. It also suggests monitoring potential investment opportunities in the medical device sector as it approaches a turning point [4][6].

Investment Rating - The report maintains an "Overweight" rating for the real estate industry, indicating a positive outlook for the sector [4][6]. Core Insights - In August 2024, new home sales saw an expanded decline, with a year-on-year decrease of 28% and a month-on-month decrease of 1%. The total sales amount for 50 real estate companies was 198 billion yuan [3][4]. - The report highlights a shift in policy focus from supply-side stability to demand-side measures aimed at stabilizing housing prices and promoting inventory reduction [3][4]. - The top three companies in terms of sales for August 2024 were Poly Developments (22.1 billion yuan, +29% YoY), China Overseas (18.4 billion yuan, -2% YoY), and Vanke (17.2 billion yuan, -24% YoY) [3][4]. Summary by Sections Sales Performance - In August 2024, the cumulative sales amount for the first eight months was 1,903.5 billion yuan, reflecting a 39% year-on-year decline. The sales area was 10.726 million square meters, down 41% year-on-year [4][6]. - The report notes that the number of companies achieving over 10 billion yuan in sales in August decreased from 10 in 2022 to 5 in 2024 [3][4]. Policy Analysis - The report discusses various policy measures introduced since April 2024, including a reduction in down payment ratios and the cancellation of mortgage rate floors, aimed at stimulating demand in the real estate market [3][4]. - The report emphasizes the need for further policy support on the demand side to address the ongoing decline in sales [4][6]. Company Recommendations - The report recommends focusing on high-quality real estate companies such as Binhai Group, China Merchants Shekou, Poly Developments, and Huafa Group for investment opportunities [4][6]. - It also suggests maintaining a positive outlook on property management companies, recommending firms like China Resources Vientiane and Poly Property [4][6].

Investment Rating - The report maintains a "Positive" outlook for the construction decoration industry [3]. Core Insights - The construction industry has faced profit pressure in the first half of 2024, with expectations for stimulating policies to support recovery [3]. - The report highlights the performance of various sub-sectors, with design consulting, steel structure, and decorative curtain walls showing the highest weekly gains [3][5]. - Key companies such as China Railway and China Communications Construction have reported declines in revenue and net profit for the first half of 2024 [17]. Summary by Sections Industry Performance - The construction decoration sector's weekly performance was -2.28%, underperforming compared to major indices [5]. - The best-performing sub-sectors for the week included design consulting (+5.28%), steel structure (+4.96%), and decorative curtain walls (+4.18%) [7][9]. Major Changes in the Industry - The National Development and Reform Commission issued a notice to promote private investment in key sectors such as infrastructure and real estate [14]. - The State-owned Assets Supervision and Administration Commission is working on a more targeted evaluation system for state-owned enterprises [14]. Key Company Updates - China Railway reported a 7.83% decline in revenue and a 12.08% drop in net profit for H1 2024 [17]. - China Communications Construction's revenue decreased by 2.52%, with a slight net profit decline of 0.59% [17]. - China Chemical's revenue fell by 0.34%, and net profit decreased by 3.63% [17]. Investment Recommendations - The report recommends focusing on companies like China Railway and China Railway Construction, while also keeping an eye on China Communications Construction and China Metallurgical Group [3].

Investment Rating - The report maintains a "Positive" outlook on the food and beverage industry, particularly focusing on the performance of individual stocks within the sector [2][8]. Core Insights - The overall performance of the food and beverage sector is under pressure, with significant differentiation among companies. The report emphasizes a cautious approach towards the upcoming peak season, highlighting the importance of individual stock performance [2][8]. - In the liquor segment, the report notes that the overall demand is still under pressure due to macroeconomic factors, but the trend of concentration among leading brands continues. The report suggests that maintaining channel quality is crucial for companies to regain growth momentum in the future [2][8]. - The report identifies key investment opportunities in leading companies such as Guizhou Moutai, Shanxi Fenjiu, and Wuliangye, among others, based on their potential dividend levels and long-term structural growth [2][8]. Summary by Sections Liquor Sector - Moutai's price continues to decline, with the retail price for a bottle of Flying Moutai at approximately 2365 yuan. The overall performance of liquor companies in Q2 2024 shows increased inventory and slowed sales, indicating pressure on financial results [3][9]. - Leading brands like Wuliangye and Shanxi Fenjiu have shown resilience, with Wuliangye reporting a 10% revenue increase in Q2 2024, while Shanxi Fenjiu's revenue grew by 17% [3][9]. Food Sector - The food sector's leading companies are experiencing revenue pressure, but cost reductions are supporting profitability. For instance, Dongpeng Beverage reported a 48% revenue increase in Q2 2024, with a net profit growth of 75% [4][10]. - Qingdao Beer and Yili Group reported declines in revenue, with Qingdao Beer down 9% and Yili down 17% in Q2 2024, indicating a challenging market environment [4][10]. Market Performance - The food and beverage sector saw a 1.62% increase last week, outperforming the broader market, which declined by 0.43%. The report highlights the importance of stock selection in a differentiated market [8][10].

行 业 及 产 业 2024 年 09 月 01 日 三氯蔗糖大幅提价，传统旺季即将 来临，重点关注低估值高成长标的 看好 ——《化工周报 24/08/26-24/08/30》 相关研究 本期投资提示： 证券分析师 宋涛 A0230516070001 songtao@swsresearch.com 研究支持 邵靖宇 A0230524080001 shaojy@swsresearch.com 任杰 A0230522070003 renjie@swsresearch.com 赵文琪 A0230523060003 zhaowq@swsresearch.com 周超 A0230123090004 zhouchao@swsresearch.com 联系人 马昕晔 (8621)23297818× maxy@swsresearch.com ⚫ 当前时点的化工宏观判断。根据 wind 数据统计，原油：国内经济仍在复苏通道，美联 储加息结束降息进程有望开启，俄罗斯及 OPEC+减产，全球原油供给偏紧，油价 Q3 有望维持 80 美元/桶附近。煤炭：煤炭价格中长期回落，中下游压力逐步缓解。天然 气：海外天然气价格底部震荡。总体上 ...

Investment Rating - The industry investment rating is "Overweight" indicating a positive outlook for the agricultural sector compared to the overall market performance [4][6][33]. Core Insights - The report highlights a focus on the performance of leading livestock companies and the emerging trends in pet food consumption. The domestic pet food market continues to show growth, with leading companies gaining market share and improving performance [4][5][6]. - The report emphasizes the profitability of the pig farming industry in the second half of 2024, suggesting that companies with cost and output certainty should be prioritized for investment [4][5][6]. Summary by Sections Market Performance - The Shenwan Agricultural Index increased by 1.5%, while the CSI 300 Index decreased by 0.2%. The top five gainers included Wancheng Group (up 14.8%), Jinjian Rice Industry (up 10.6%), and Yike Food (up 8.0%) [4][6]. - The report suggests focusing on the growth certainty of leading companies in the pet food sector and the performance of major livestock companies [4][6]. Pig Farming - The report notes an increase in the average selling price of pigs to 19.98 yuan/kg, with a slight week-on-week increase of 0.1%. The average weight of pigs sold has also increased to 126.73 kg, reflecting a positive trend in the industry [4][5]. - The report anticipates continued profitability in pig farming for the second half of 2024, with improved cash flow and reduced debt ratios for some companies [4][5]. Poultry Farming - The report indicates a decline in the price of broiler chickens, with the average price dropping to 3.60 yuan/kg, a decrease of 2.44% week-on-week. The demand for chicken remains weak, impacting prices negatively [5]. - It is suggested that supply pressures are easing, and a marginal recovery in demand could improve chicken prices in the latter half of the year [5]. Pet Food Industry - The report identifies three key trends in the pet food industry: increasing brand concentration, innovative marketing strategies, and a shift towards high-quality ingredients [5]. - Leading companies in the pet food sector, such as Guibao Pet and Zhongchong Co., are expected to see steady growth in market share and performance [5][6].

Investment Rating - The report maintains a "Buy" rating for Anker Innovations, indicating a strong performance relative to the market [6]. Core Insights - Anker Innovations reported better-than-expected performance in its 2024 mid-year results, with a revenue of 9.65 billion yuan, a year-on-year increase of 37%, and a net profit attributable to shareholders of 870 million yuan, up 6% [6]. - The company is experiencing rapid growth across all three major business segments, driven by continuous product innovation and channel expansion [6]. - The report highlights significant improvements in profitability and operational efficiency, with a gross margin increase of 2 percentage points to 45.2% [6]. Summary by Sections Financial Performance - For the first half of 2024, Anker Innovations achieved a revenue of 9.65 billion yuan, a 36.6% year-on-year growth, and a net profit of 872 million yuan, reflecting a 6.4% increase [7]. - The company plans to distribute a mid-term dividend of 0.6 yuan per share, with a payout ratio of 37% [6]. Business Segments - Charging and storage products saw a revenue increase of 43% to 4.98 billion yuan, accounting for 52% of total revenue [6]. - Smart innovation products grew by 35% to 2.36 billion yuan, representing 24% of total revenue [6]. - Smart audio-visual products increased by 31% to 2.31 billion yuan, also making up 24% of total revenue [6]. Channel and Market Expansion - Online sales accounted for 70% of total revenue, with online revenue growing by 38% to 6.7 billion yuan [6]. - The independent website's revenue surged by 103% to 920 million yuan, now representing 10% of total revenue [6]. - The North American market revenue increased by 41% to 4.6 billion yuan, while European revenue grew by 45% to 2.1 billion yuan [6]. Profitability and Efficiency - The gross margin improved to 45.2%, while the net profit margin decreased to 9.0% due to non-operating losses [12]. - Operating cash flow increased by 38% to 840 million yuan, indicating enhanced operational efficiency [6]. Future Outlook - The report raises profit forecasts for 2024-2026, expecting net profits of 1.98 billion yuan, 2.40 billion yuan, and 2.83 billion yuan respectively [6].

Investment Rating - The industry investment rating is "Overweight" [2][20] Core Viewpoints - The report indicates that metal prices are experiencing narrow fluctuations as overseas interest rate cuts are imminent [2] - The report highlights a preference for gold due to expectations of declining real interest rates and strategic positioning, alongside a positive outlook for copper driven by supply constraints and low dependency on real estate demand [2][3] Weekly Market Review - The Shanghai Composite Index decreased by 0.43%, while the Shenzhen Component increased by 2.04%. The non-ferrous metals index rose by 1.06%, outperforming the CSI 300 Index by 1.23 percentage points [3] - The report notes that precious metals fell by 8.08%, while aluminum rose by 2.96%, and energy metals increased by 5.98% [8] Price Changes - Industrial metals and precious metals saw price changes as follows: LME copper down 0.58%, aluminum down 3.74%, and COMEX gold up 0.50% [2][10] - The report also details that lithium carbonate prices increased by 2.74% for battery-grade and 2.13% for industrial-grade [2][12] Inventory Changes - LME copper inventory increased by 1.70% week-on-week, while Shanghai Futures Exchange copper inventory decreased by 3.71% [11] - The report indicates that LME aluminum inventory decreased by 4.40% week-on-week [11] Key Company Valuations - The report provides valuations for key companies in the non-ferrous metals sector, including Zijin Mining with a price of 16.00 and a projected EPS of 0.97 for 2024 [14] - Other notable companies include Luoyang Molybdenum with a price of 7.49 and projected EPS of 0.48 for 2024 [14]

Investment Rating - The report maintains a "Buy" rating for several transportation stocks, particularly in the shipping and logistics sectors, highlighting high dividend yields and positive profit growth in Q2 [3][5]. Core Insights - The transportation sector is experiencing a recovery, with Q2 net profit growth and a focus on high-dividend stocks such as Bohai Ferry and China Merchants Jinling [3][5]. - The shipping industry shows signs of improvement, with a confirmed upward trend in gross margins and significant new orders for vessels [3][5]. - The report emphasizes the potential for demand recovery in the fourth quarter, driven by seasonal factors and new production from petrochemical projects [3][5]. Summary by Sections Shipping Industry - Q2 gross margin improvements confirmed, with China Shipbuilding reporting new civil ship orders amounting to 199.639 billion yuan [3][5]. - VLCC rates fell by 33% to $17,941 per day, influenced by reduced oil production from Libya and Iraq [3][5]. - The report recommends stocks like China Merchants Energy and China Shipping Development due to their potential recovery as the off-season ends [3][5]. Logistics and Express Delivery - In July, express delivery volumes reached 14.26 billion items, a year-on-year increase of 22.2%, with revenue growth of 14.1% [8][9]. - The report suggests that Q3 is a traditional off-season for the industry, recommending companies like YTO Express and ZTO Express for long-term investment opportunities [8][9]. Aviation and Airports - The report highlights the delivery of the first C919 aircraft, marking a new phase for multi-user operations [10]. - Passenger traffic in July increased by 8.0% year-on-year, with a load factor of 86.0% [10]. - Recommended stocks include China Eastern Airlines and Spring Airlines, focusing on the recovery of the aviation sector [10]. Rail and Road Transport - The report recommends stocks like Datong Railway and China Merchants Highway, noting a slight increase in railway freight volume [11][12]. - The report indicates that the transportation sector is benefiting from seasonal travel trends, with a year-on-year increase in passenger numbers during the summer [11][12].

Investment Rating - The report maintains a positive outlook on the home appliance industry, particularly in the air conditioning segment, with a focus on high export growth and new investment projects [3][4]. Core Insights - The home appliance sector has shown resilience, with significant growth in exports, particularly in air conditioning units, which saw a year-on-year increase of 31.8% in September 2024 [3][12]. - Haier is investing in a new project to produce 5 million air conditioning units annually, with a total investment of approximately RMB 2.494 billion, expected to have a payback period of about 4.98 years [3][13]. - The report highlights the importance of the real estate market's recovery and the potential for increased demand for white goods, supported by government policies promoting upgrades and replacements [4][12]. Summary by Sections Industry Dynamics - In September 2024, the production data for major white goods indicated a total output of 2,662 million units, reflecting a 4.5% increase year-on-year. Specifically, air conditioning units produced were 10.542 million, up 8.8% from the previous year [12]. - The report notes a decline in domestic sales of air conditioning units, with a 14.4% drop year-on-year, while exports continue to thrive [12][3]. Sales and Market Performance - In July 2024, the air conditioning sector experienced a total production of 16.116 million units, with exports rising by 42.65% year-on-year, while domestic sales fell by 21.26% [4][25]. - Gree maintained a market share of 22.87% in air conditioning sales, ranking second among brands, followed by Aux and Haier [28]. Investment Opportunities - The report identifies two main investment themes: the undervaluation and high dividend yield of white goods companies, and the recovery of export orders alongside the depreciation of the RMB against the USD, which is expected to enhance revenue and performance [4][3]. - Recommended companies include Haier, Gree, and Supor, which are expected to benefit from both domestic and international market growth [4][3].