Group 1: Policy Deployment - The Central Committee issued a notification on February 23, 2026, to promote the establishment and practice of a correct view of political achievements, focusing on leadership at the county and department levels, starting after the Spring Festival and concluding by the end of July 2026[2]. - On February 24, a meeting emphasized that all levels of party committees should prioritize the education on the correct view of political achievements as a key task for party building this year[2]. - The State Council meeting on February 24 highlighted the need to quickly resume work post-Spring Festival and implement the Central Committee's decisions, particularly emphasizing practical achievements for the people[2]. Group 2: Government Work and Reforms - The Politburo meeting on February 27 discussed the 14th Five-Year Plan and government work report, stressing the need for a more proactive fiscal policy and moderately loose monetary policy, alongside reforms and macro policy coordination[7]. - The meeting also called for strengthening domestic market construction, fostering new growth drivers, and accelerating high-level technological self-reliance[7]. - The report from the Central Commission for Discipline Inspection on February 28 addressed the need to combat issues like statistical fraud and promote a correct view of political achievements, emphasizing strict adherence to political discipline[3]. Group 3: Economic Indicators - During the Spring Festival, key retail and catering enterprises reported an average daily sales increase of 5.7% compared to the previous year, with foot traffic in monitored pedestrian streets rising by 6.7%[16]. - Notably, the sales of smart glasses and intelligent robots surged by 47.3% and 32.7%, respectively, indicating a strong consumer trend towards technology during the holiday[16]. - The report also noted a significant increase in inbound tourism product orders, which rose by 18.4% year-on-year, reflecting a recovery in the tourism sector[16].

Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index by more than 5% over the next 3-6 months compared to the benchmark index [17]. Core Insights - The report highlights that commercial aerospace policies and domestic and international industry resonance are continuously catalyzing growth. It is anticipated that low-orbit satellites will gradually achieve regular networking, and commercial rockets will accelerate breakthroughs in reusable technology [6]. - The report emphasizes the increasing importance of satellite operation services, with measurement and control becoming key components. The application of satellites across various industries is expected to become a new norm [6]. - The report also notes that regulatory measures are orderly, ecological development is progressing, and there is support from funds and accelerated IPOs, indicating ongoing positive developments in the commercial aerospace sector [6]. Industry Overview - The report provides basic industry data, including 337 listed companies with a total market value of 62,840.76 billion and a circulating market value of 56,779.44 billion [3]. - The absolute performance of the industry index shows a decline of 2.0% over the past month, an increase of 2.5% over the past six months, and a rise of 13.9% over the past year [4]. - The report mentions that the commercial aerospace sector has been included in government work reports for two consecutive years, indicating strong governmental support [6]. Market Performance - The report notes that the computer (CITIC) index rose by 1.23% during the week from February 24 to February 27, 2026, with notable gains from companies such as Runze Technology (+26.89%) and Xinghuan Technology-U (+18.30%) [6]. - The report identifies key players in various segments of the industry, including satellite manufacturing, satellite operation, rocket launch, satellite application, and ground equipment, suggesting a diversified investment approach [6].

1. Report Industry Investment Rating The provided text does not mention the industry investment rating. 2. Core Viewpoints of the Report - The implementation of the "Package of Measures to Optimize Refinancing" on February 9, 2026, by the Shanghai, Shenzhen, and Beijing Stock Exchanges may accelerate the issuance of convertible bonds in relevant sectors. Assuming the approval speed returns to the level before 2023, the expected issuance scale of convertible bonds in 2026 is 9.166 billion yuan [1][2][8]. - In March, the volatility of the equity market may increase, and defensive sectors may have short - term trading opportunities. The technology growth sector remains the main focus this year. The convertible bond market is currently at a historical high in terms of valuation, and the trading strategy should focus on capturing structural opportunities in the equity market, with a more cautious and neutral position [3]. - In February, the convertible bond market strengthened with small - cap styles leading, and the overall valuation increased by 2.01 pct. New bond issuance continued to be light, and the pace of new bond issuance plans slowed down [4]. 3. Summary According to the Directory 3.1 Convertible Bond Approval is Accelerating. How to Forecast This Year's Issuance? - The "Package of Measures to Optimize Refinancing" aims to guide capital market resources to gather towards technological innovation and new - quality productivity, which may accelerate the issuance of convertible bonds in relevant sectors. Since the fourth quarter of 2025, a non - seasonal recovery in convertible bond issuance scale has been observed [1][8][9]. - By analyzing the average time taken for each stage of convertible bond issuance, except for the relatively stable time from approval for registration to listing, the time taken for other stages increased significantly in 2024 and 2025 and began to recover significantly in the second half of 2025 [1][9]. - Assuming the approval speed returns to the level before 2023, the probabilities of completing the board proposal, shareholders' meeting approval, exchange acceptance, listing committee approval, and approval for registration within 2026 are 39.5%, 69.7%, 80.4%, 98.3%, and 99.3% respectively. After considering the probability of suspension of implementation, the expected issuance scale of convertible bonds in 2026 is 9.166 billion yuan [2][24][25]. 3.2 Key Convertible Bonds to Focus on in March - From January 30 to February 27, 2026, the convertible bond portfolio rose by 2.81%, outperforming the benchmark index by 3.66 pct. Huachen, Xingqiu, and Huayi in the portfolio had significant increases [30]. - In March, the "Huachuang Convertible Bond" focus portfolio was adjusted to include Xingqiu, Sanxia 2, Yirui, Huachen, Huayi, Yifeng, Bengang, Peiti, Ziyin, Qingnong, Chongyin, and Xingye [32]. 3.3 Strategy Outlook: Valuation Digestion is Underway, Returning to Prudent Neutrality - In March, due to global geopolitical instability and the Two Sessions, the volatility of the equity market may increase. Defensive sectors such as pharmaceutical consumption and transportation and public utilities with low valuations can be appropriately focused on. The technology growth sector, including AI, commercial aerospace, and humanoid robots, remains the main focus this year. With the unexpected recovery of PPI, attention should be paid to the price increases in chemicals, non - ferrous metals, energy, and electronic components [3][37]. - The convertible bond market's valuation is still at a historical high of 39%. The trading strategy for convertible bonds should focus on capturing structural opportunities in the equity market, and the overall position should return to a prudent and neutral level. It is recommended to avoid newly - issued convertible bonds with high valuations and double - high convertible bonds with unclear call expectations [3][42][43]. 3.4 Market Review: Convertible Bonds and Underlying Stocks Continued to be Strong, and Valuation Fluctuated Upward 3.4.1 Market Performance: Broad - based Indexes Generally Rose, and the Cyclical Sector Shined - In February, the convertible bond market strengthened, with small - cap styles leading. As of February 27, the Wind All - A Index rose by 2.34%, and the CSI Convertible Bond Index rose by 0.89%. The overall valuation increased by 2.01 pct month - on - month. Small - cap stocks were generally strong, with the CSI 300 rising by 0.09%, the CSI 500 rising by 3.44%, the CSI 1000 rising by 3.71%, and the CSI 2000 rising by 4.80% [49]. - The equity market remained active in February. Before the Spring Festival, there may have been profit - taking and risk - aversion sentiment. After the festival, the relaxation of Shanghai's real - estate control and the emphasis on economic construction in important meetings, as well as the calendar effect between the Spring Festival and the Two Sessions, strengthened the market's expectations for a "good start" and performance verification, and the margin trading balance increased rapidly [52]. 3.4.2 Capital Performance: Trading Activity in the Equity and Convertible Bond Markets Cooled, and the Margin Trading Balance Increased Rapidly After the Festival - From February 1 to February 27, 2026, the average daily trading volume of the CSI Convertible Bond Index was 75.423 billion yuan, a decrease of 18.04% compared with January 2026. The average daily trading volume of the Wind All - A Index was 2,310.723 billion yuan, a decrease of 24.11% compared with January 2026 [53]. - The margin trading balance showed a differentiated performance in February, increasing rapidly after the festival. As of February 26, 2026, the total margin trading balance in Shanghai and Shenzhen was approximately 2.66 trillion yuan, a decrease of 48.013 billion yuan compared with the end of January, but with a significant rebound after the festival. Most industries experienced net selling of margin trading funds [56]. 3.4.3 Convertible Bond Valuation: Valuation Rose Overall, with Small - Cap and Technology Sectors Stronger - As of February 28, 2026, compared with the end of January, the conversion premium rates of many industries increased. From the perspective of major sectors, most sectors' valuations increased, with the financial sector showing a relatively obvious increase. The average conversion premium rates of home appliances, agriculture, electronics, automobiles, and non - ferrous metals increased by 14.37, 1.40, 1.34, 1.21, and 0.55 pct respectively [58]. - Most rated and sized convertible bonds' valuations increased. As of February 28, compared with the end of January, the fitted premium rates of high - rated convertible bonds represented by AAA/AA + increased by 1.59 pct, medium - rated AA/AA - increased by 2.11 pct, and low - rated A/A - increased by 3.92 pct. In terms of size, the fitted premium rates of convertible bonds over 5 billion yuan increased by 1.70 pct, those in the 2 - 5 billion yuan (including 5 billion yuan) range increased by 1.56 pct, those in the 1 - 2 billion yuan (including 2 billion yuan) range increased by 1.40 pct, those in the 0.3 - 1 billion yuan (including 1 billion yuan) range increased by 1.71 pct, and those below 0.3 billion yuan (including) increased by 2.75 pct [66]. 3.5 Supply and Demand Situation: New Bond Issuance Continued to be Light, and the Pace of New Bond Issuance Plans Slowed Down 3.5.1 In February, 1 Convertible Bond was Issued, and 3 New Convertible Bonds were Listed - In February, the issuance of convertible bonds continued to be light, with the scale decreasing month - on - month. Only Haitian Convertible Bond was issued, with a scale of 801 million yuan. Aiwei, Longjian, and Shangtai Convertible Bonds were listed, with a total scale of 4.635 billion yuan [67]. - The online subscription for new convertible bonds decreased in February. The average effective subscription amount was 8.79 trillion yuan, a month - on - month decrease of 81.38%. The online winning rate was 0.0009%, a month - on - month decrease of 0.0018 pct [73]. - As of February 28, 2026, the total scale of convertible bonds to be issued was approximately 138.375 billion yuan. Five listed companies obtained approval for convertible bond issuance, with a planned issuance scale of 4.387 billion yuan. Seven convertible bond issuances had passed the review committee and were waiting for approval, with a total scale of 6.966 billion yuan. In February, five new board proposals were added, with a total scale of 12.42 billion yuan [74]. - In March 2026, the number and scale of convertible bonds to be delisted increased. As of February 27, the total balance was 16.459 billion yuan, and 14 convertible bonds would be delisted [81]. - Four convertible bonds' boards proposed downward revisions, and four convertible bonds announced the results of downward revisions. In February, 10 convertible bonds announced no downward revisions, and 15 convertible bonds announced expected downward revisions [84][85]. - In February, 12 convertible bonds announced early redemptions, many convertible bonds announced no early redemptions, and some convertible bonds announced that they were expected to meet the redemption conditions [88]. 3.5.2 In January, Holders on the Shanghai and Shenzhen Stock Exchanges Continued to Reduce Holdings, and Public Funds Performed Relatively Actively - The total scale of convertible bonds held by various entities on the Shanghai and Shenzhen Stock Exchanges further decreased, with a significant reduction on the Shenzhen Stock Exchange. In January, the total face value of convertible bonds held by the two exchanges was 558.832 billion yuan, a decrease of 8.06 billion yuan compared with the end of January, a decline of 1.46% [92]. - Public funds' holdings of convertible bonds increased, but their relative proportion decreased. In January, the total face value of convertible bonds held by public funds on the two exchanges was 240.076 billion yuan, a month - on - month increase of 6.88%, and the proportion was 44.08%, a month - on - month increase of 3.44 pct [94]. - Enterprise annuities' holdings of convertible bonds on the two exchanges decreased. In January, the total face value of convertible bonds held by enterprise annuities on the two exchanges was 83.843 billion yuan, a month - on - month decrease of 4.64%, and the proportion was 15.39%, a month - on - month decrease of 0.51 pct [94]. - Securities companies' holdings of convertible bonds on the two exchanges decreased. On the Shanghai Stock Exchange, the face value of convertible bonds held by securities companies' proprietary trading decreased by 0.07% compared with the end of January, and the proportion increased by 0.07 pct month - on - month. The face value of convertible bonds held by securities companies' asset management decreased by 6.74% compared with the end of January, and the proportion decreased by 0.24 pct month - on - month. On the Shenzhen Stock Exchange, the face value of convertible bonds held by securities companies' proprietary trading decreased by 1.16% compared with the end of January, and the proportion increased by 0.03 pct month - on - month. The face value of convertible bonds held by securities companies' collective asset management decreased by 5.20% compared with the end of January, and the proportion decreased by 0.09 pct month - on - month [95].

Investment Rating - The report maintains a "Buy" recommendation for precious metals due to rising geopolitical tensions and increased demand for safe-haven assets [2]. Core Views - The report highlights that the escalation of the Middle East situation, particularly the military actions between the US and Iran, is expected to boost the performance of precious metals as investors seek refuge from market volatility [3]. - It emphasizes that Iran's significant share in global production of certain metals, such as strontium and direct reduced iron (DRI), could lead to price fluctuations in these commodities due to potential supply disruptions [4][6]. - The long-term outlook for precious metals remains positive, with expectations of a super cycle for gold driven by central bank purchases and sustained investment demand [3]. Summary by Sections Industrial Metals - The report notes that Iran's military conflict may impact its production capabilities, particularly in metals where it holds a high global market share, such as strontium (56% of global production) and DRI (24% of global production) [4][5]. - Copper and zinc are identified as critical metals with significant implications for global supply chains, especially in light of potential disruptions in the Middle East [6]. Precious Metals - The report anticipates that geopolitical tensions will enhance the appeal of gold and silver as inflation hedges, with gold prices expected to rise in response to increased demand [3]. - The report also discusses the potential for silver prices to be more volatile due to its dual role as an industrial and financial asset [3]. Aluminum Industry - The report indicates that the ongoing conflict may tighten the global aluminum supply, particularly if Iranian production is affected, which could lead to price increases [11][12]. - It highlights that the aluminum market is currently in a state of tight balance, with potential for price support due to supply constraints [11]. New Energy Metals - The report discusses Zimbabwe's ban on lithium exports, which is expected to tighten the global lithium market and support prices [15][16]. - It suggests that the rise of resource nationalism may lead to increased control over strategic metals, impacting their pricing and availability [15].

Investment Rating - The report indicates a positive investment outlook for the prostate cancer treatment sector, particularly focusing on PSMA-targeted therapies, with a strategic partnership between Vir Biotechnology and Astellas valued at $1.7 billion [12][16]. Core Insights - Prostate cancer is one of the most common malignancies in men globally, with PSMA being a critical biomarker for diagnosis and treatment. PSMA-targeted therapies, including radioligand therapy and novel T-cell engagers, show significant promise in treating advanced stages of the disease [8][11]. - The report highlights the advancements in PSMA/CD3 T-cell engagers (TCEs), particularly the development of VIR-5500 and JANX007, which utilize shielding peptide technology to enhance safety and efficacy by limiting T-cell activation to the tumor microenvironment [11][20][29]. - Initial clinical data for VIR-5500 shows good tolerability and promising efficacy, with a PSA response rate of 82% in high-dose groups, indicating a strong potential for further development [25][21]. Summary by Sections Section 1: Prostate Cancer and PSMA Targeting - PSMA is highly expressed in prostate cancer cells, making it a key target for both diagnostic and therapeutic interventions. The dual enzymatic activity of PSMA supports its role in promoting tumor aggressiveness [8][9]. - Current PSMA-targeted strategies include radioligand therapies and novel TCEs, which are being actively researched and developed [8][11]. Section 2: Clinical Development of PSMA/CD3 TCEs - The report details the clinical progress of PSMA/CD3 TCEs, noting that early candidates faced challenges due to issues like antibody-drug interactions and systemic toxicity. However, the introduction of shielding peptide technology has shown potential to mitigate these risks [11][12]. - VIR-5500, a leading candidate, has shown positive early-phase clinical trial results, with a strategic partnership established to support its development [16][21]. Section 3: Company Updates and Financials - Vir Biotechnology has secured a $335 million upfront payment from Astellas as part of their collaboration, with potential milestone payments reaching up to $1.37 billion [16][12]. - The report also mentions the financial performance of various biotech companies, highlighting significant revenue growth and strategic partnerships that enhance their market positions [45].

Investment Rating - The report maintains a recommendation for the automotive sector, indicating a gradual recovery in retail sales expected in March 2026 [1]. Core Insights - The automotive sector continues to be impacted by weak retail sales and rising material costs. However, March is anticipated to show improvement due to several factors, including the reduction of deferred consumers from last year, new car launches, and the opening of subsidy channels [1]. - The report highlights that the cost of lithium carbonate for PHEVs has increased by approximately 1,000-2,000 CNY year-on-year, while for BEVs, the increase is about 2,000-4,000 CNY. The cost for economic storage has risen by several hundred CNY, and for high-end models, it has increased by 1,000-3,000 CNY [1]. - The report emphasizes that automakers often find ways to mitigate the impact of rising material costs, such as cost reduction in the supply chain, adjustments in product configurations, and price increases. The acceptance of reasonable price hikes by consumers will be crucial for new car launches and annual model updates [1]. Data Tracking - The discount rate in early February decreased to 9.3%, with a year-on-year increase of 0.3 percentage points and a month-on-month decrease of 0.2 percentage points. The average discount amount was 20,714 CNY, showing a year-on-year increase of 307 CNY but a month-on-month decrease of 828 CNY [3]. - In December, wholesale and retail sales of passenger vehicles saw a year-on-year decline, with wholesale sales at 2.85 million units (down 8.7% year-on-year) and retail sales at 2.28 million units (down 16.8% year-on-year) [3]. Market Performance - The automotive sector index increased by 0.59% this week, ranking 22 out of 29 sectors. The overall market indices showed positive growth, with the Shanghai Composite Index up by 1.98% [7][8]. - Key material prices have shown significant fluctuations, with lithium carbonate averaging 152,881 CNY per ton in Q1 2026, a year-on-year increase of 102% [7].

Investment Rating - The report maintains a "Buy" recommendation for the shipping sector and highlights the ongoing positive sentiment in the oil shipping market [2][42]. Core Insights - The escalation of the US-Iran conflict has increased the risk premium for shipping assets, particularly affecting oil transportation through the Strait of Hormuz, which is crucial for global energy and shipping markets [1][10]. - The VLCC spot rates have surged to $200,000 per day, with significant weekly increases across various routes, indicating a strong upward trend in shipping rates [2][26]. - The express delivery sector is experiencing a recovery in volume growth, with major players like Zhongtong and Yuantong outperforming the market [3][43]. Summary by Sections Oil Shipping - The US-Iran conflict has heightened attention on the Strait of Hormuz, through which approximately 11% of global maritime trade passes, including 34% of oil exports [1][11]. - VLCC spot rates have increased significantly, with the Clarkson VLCC-TCE index reaching $200,000, a 40.1% increase week-on-week [2][26]. - Investment recommendations include focusing on the oil shipping sector, particularly companies like COSCO Shipping Energy, China Merchants Energy Shipping, and China Merchants Jinling [2][42]. Express Delivery - The express delivery industry is undergoing a "de-involution" phase, with regulatory efforts aimed at creating a more orderly competitive environment [3][43]. - The volume growth in the express delivery sector has shown improvement, with a year-on-year increase of 5.8% in cumulative collection volume as of February 22 [3][46]. - Leading companies such as Zhongtong and Yuantong are recommended for investment due to their strong market positions and growth potential [3][48][49]. Industry Data Tracking - Domestic civil aviation passenger volume increased by 6.3% year-on-year during the Spring Festival period, indicating a recovery in air travel [7][54]. - The air cargo price index at Pudong Airport showed a year-on-year increase of 7.4%, reflecting a positive trend in air freight [7][73]. - The Baltic Dry Index (BDI) and the Shanghai Containerized Freight Index (SCFI) have also shown upward movements, indicating a strengthening in shipping demand [7][77].

1. Report Industry Investment Rating - Not provided in the content 2. Core View of the Report - In the first week after the Spring Festival, strong equity performance, tariff progress, and the "Shanghai Seven Measures" boosted equity risk appetite, leading to a callback in the bond market driven by profit - taking of trading desks. On Friday, the central bank lowered the foreign exchange risk reserve ratio for forward foreign exchange sales, and on Saturday, the Iran - US conflict intensified the risk - aversion sentiment, causing bond yields to decline. Overall for the week, the yield of the 1 - year Treasury active bond rose 1.92BP to 1.30%, the yield of the 10 - year Treasury active bond rose 1.19BP to 1.79%, and the 30 - year Treasury yield rose 1.05BP to 1.235% [4][7]. 3. Summary According to the Directory 3.1 Interest Rate Bond Market Review - **Overall Situation**: In the first week after the Spring Festival, factors such as good holiday high - frequency data, tariff progress, and the "Shanghai Seven Measures" improved equity risk appetite. Profit - taking by trading desks led to a bond market callback. Policy adjustments and the Iran - US conflict later drove bond yields down. The yields of 1 - year, 10 - year, and 30 - year Treasury bonds all increased slightly for the week [4][7]. - **Daily Analysis**: - **Tuesday (February 24)**: The central bank net - withdrew 9264 billion yuan. The capital market was balanced, risk appetite improved, and the equity market was strong. The bond market was lightly traded, with most maturities fluctuating within 0.5BP of the ChinaBond valuation [1][8][13]. - **Wednesday (February 25)**: The central bank net - injected 3095 billion yuan. The capital market changed from tight to loose, and the Shanghai real - estate policy was optimized. The equity market was strong, and due to the stock - bond seesaw effect and institutional profit - taking, bond yields oscillated and adjusted, with the 10 - year Treasury yield rising above 1.8% [1][8][14]. - **Thursday (February 26)**: The central bank net - withdrew 795 billion yuan. The equity market had a high - level correction. Due to the "Shanghai Seven Measures" and pre - Two Sessions policy games, profit - taking sentiment increased, and the bond market sentiment was weak, with the 10 - year Treasury yield rising to a maximum of 1.8140% [1][8][15]. - **Friday (February 27)**: The central bank net - injected 2690 billion yuan and lowered the foreign exchange risk reserve ratio for forward foreign exchange sales. The Politburo meeting's communiqué had little new content. Bond market sentiment recovered, and the yields of most bonds declined, with the 10 - year Treasury active bond yield returning to around 1.8% [2][8][16]. - **Saturday (February 28)**: The central bank continued net - injection. The capital market was stable and loose. In the afternoon, the Iran - US situation escalated, and risk - aversion sentiment drove bond yields down rapidly, with the 10 - year Treasury active bond yield dropping 1.2bp to 1.79% [2][8][18]. - **Next Week's Focus**: - **Fundamentals**: Due to the Spring Festival holiday in February affecting production, the PMI is expected to remain below the boom - bust line. In 2026, local economic targets have been mostly lowered, and it is expected that the policy intensity during the Two Sessions will remain the same, with the GDP target maintained at around 5% [2][9]. - **Funds**: At the beginning of the month, there are few capital disturbances, and the capital market is likely to remain stable. 1 trillion yuan of 3 - month repurchase agreements are due, and attention should be paid to the central bank's renewal [2][9]. - **Overseas**: After the breakdown of the Geneva negotiations, the risk of the Iran - US conflict over the weekend continued to rise, the Middle East situation became more tense, and global risk - aversion sentiment increased significantly. Attention should be paid to the volatility risks of global stocks, crude oil, gold and other assets [2][9]. 3.2 Capital Market - The central bank's open - market operations (OMO) had a net withdrawal, and the capital market was balanced and loose. The 1 - year national - share bank certificate of deposit issuance rate dropped to 1.59%, and the capital sentiment index was basically around 50 [1][8][21]. 3.3 Primary Issuance - The net financing of Treasury bonds and local bonds increased, while the net financing of policy - financial bonds and inter - bank certificates of deposit decreased [25]. 3.4 Benchmark Changes - The term spread of Treasury bonds narrowed, while the term spread of China Development Bank bonds widened. Specifically, the short - end yields of Treasury bonds rose 0.23BP, and the long - end yields fell 1.46BP. The short - end yields of China Development Bank bonds rose 0.47BP, and the long - end yields rose 1.60BP. The 10Y - 1Y spread of Treasury bonds narrowed 1.69BP to 45.58BP, and the 10Y - 1Y spread of China Development Bank bonds widened 1.13BP to 39.31BP [20][30].

Investment Rating - The report maintains a "Buy" recommendation for the aviation industry, highlighting strong demand and supply dynamics [1]. Core Insights - The report emphasizes the high passenger load factor and price elasticity observed during the Spring Festival travel period, indicating a robust recovery in the aviation sector [7][11]. - It notes that the domestic aviation market is experiencing a structural improvement in demand, driven by increased personal travel and a recovery in international travel [33][34]. - The report identifies key investment opportunities within the domestic aircraft manufacturing chain, particularly focusing on the development of indigenous large aircraft and commercial engines [53]. Summary by Sections Aviation Transportation - The Spring Festival saw a record high in cross-regional passenger flow, with a total of 6.72 billion trips, averaging 258 million trips per day, a 5.9% increase from the previous year [11][12]. - Domestic passenger volume increased by 6.3% year-on-year, while average ticket prices rose by 4.3% during the same period [12][13]. - The report highlights two key trends for the 2026 Spring Festival: a surge in secondary travel and concentrated return trips, reflecting a shift in travel patterns [14][15]. - Investment suggestions include focusing on major airlines such as Air China, China Southern Airlines, and China Eastern Airlines, as well as low-cost carriers like Spring Airlines [37]. Aviation Manufacturing - The report discusses the ongoing capacity ramp-up by major manufacturers Boeing and Airbus, with a combined backlog of over 15,000 aircraft orders [2][76]. - Boeing plans to increase its 737 production from 42 to 52 units per month by 2026, while Airbus aims to reach a production rate of 70-75 A320 aircraft per month by the end of 2027 [82]. - GE Aviation reported a significant increase in engine deliveries, with 2,386 commercial engines delivered in 2025, including 1,802 LEAP engines, reflecting a 28% year-on-year growth [93][100]. - The report recommends focusing on key suppliers within the commercial aircraft engine supply chain, including Aero Engine Corporation of China and other core component manufacturers [53][56].

Investment Rating - The report maintains a "Buy" recommendation for the precious metals sector due to rising geopolitical tensions and increased demand for safe-haven assets [2]. Core Views - The report highlights that the escalation of the Middle East conflict, particularly the military actions between the U.S. and Iran, is expected to boost the performance of precious metals as investors seek refuge from market volatility [3]. - It emphasizes that Iran's significant share in global production of certain metals, such as strontium and direct reduced iron (DRI), could lead to price fluctuations in these commodities due to potential supply disruptions [4][6]. - The long-term outlook for precious metals remains positive, with expectations of a super cycle for gold driven by central bank purchases and sustained investment demand [3]. Summary by Sections Industrial Metals - The report notes that Iran accounts for approximately 56% of global strontium production, 24% of DRI production, and has significant copper and zinc reserves, which could be impacted by the ongoing conflict [4][5]. - It suggests that the geopolitical situation may exacerbate supply shortages for copper and other critical metals, urging investors to monitor these developments closely [6]. Aluminum Sector - The report discusses the potential tightening of the global aluminum supply due to the conflict, particularly if Iranian production is affected, which could impact around 600,000 tons of aluminum supply [12][14]. - It indicates that the aluminum market is currently stable, but geopolitical risks could lead to price volatility [11]. New Energy Metals - The report highlights Zimbabwe's ban on lithium exports, which is expected to tighten the global lithium market and support prices, as Zimbabwe is a key supplier [15][16]. - It suggests that the rise of resource nationalism may lead to increased control over strategic metals, impacting pricing dynamics in the market [15]. Stock Recommendations - The report recommends specific stocks in the precious metals sector, including Zhongjin Gold and Chifeng Jilong Gold Mining, as well as companies in the copper and aluminum sectors such as Zijin Mining and China Hongqiao Group [13].