Group 1 - The report indicates that the credit bond market is experiencing a divergence in trends, with most credit bond yields rising and credit spreads showing mixed performance, particularly in the short-end segment [10][21] - It is suggested to focus on the 2-3 year credit bonds for yield opportunities, as their spreads are higher than the lowest points in 2024 and lower than the average spread since 2024, indicating potential for value [12][21] - The report highlights that the financial bonds have shown some recovery after significant adjustments, but the sentiment remains cautious with limited room for bullish positions [10][21] Group 2 - Key policies include the announcement of a loan from Shenzhen Metro Group to Vanke for debt repayment, totaling up to 2.064 billion yuan, with cumulative loans since 2025 reaching 25.941 billion yuan [3][14] - The Ministry of Finance reported that from January to August, the national general public budget revenue was 1.48198 trillion yuan, a year-on-year increase of 0.3%, with tax revenue slightly up by 0.02% [15][20] - The central bank is guiding commercial banks to provide loans to state-owned enterprises and financing platforms to settle overdue accounts, with a total debt scale of approximately 1.8 trillion yuan [4][16] Group 3 - The report notes that the secondary market for credit bonds is active, with a significant increase in trading volume observed [21] - The report emphasizes the importance of monitoring the adjustments in the credit bond market, particularly in the context of the upcoming policy changes and market conditions [10][21] - The report also mentions that the Shanghai Stock Exchange has optimized the bond repurchase business to stabilize market prices, which may lead to a narrowing of spreads for lower-rated bonds [4][13]

Investment Rating - The insurance industry is rated as "Recommended," with expectations for the industry index to exceed the benchmark index by more than 5% in the next 3-6 months [21]. Core Insights - August saw significant growth in life insurance, but September's growth may face pressure due to high base effects and the impact of the upcoming adjustment in the preset interest rate [4][6]. - The insurance sector experienced a decline, with the insurance index dropping by 4.8%, underperforming the broader market by 4.36 percentage points [1]. - The report highlights that the transition from the "2.5% era" to the "2.0% era" in preset interest rates is expected to benefit sales in the short term, with a notable increase in monthly premiums [4]. Summary by Sections Weekly Dynamics - China Pacific Insurance, New China Life, and ZhongAn Online have disclosed their premium announcements for January to August 2025 [2]. - China Pacific Insurance's share transfer actions were noted, with significant stakes being transferred to Shanghai Jiushi and Shanghai Electric [2]. Premium Analysis for Listed Insurance Companies - China Pacific Insurance reported a cumulative premium of 359.9 billion yuan from January to August 2025, a year-on-year increase of 7.8% [3]. - New China Life's cumulative life insurance premium reached 158.1 billion yuan, up 21.3% year-on-year [3]. - ZhongAn Online's cumulative premium was 23.6 billion yuan, reflecting a year-on-year increase of 6.4% [3]. Investment Recommendations - The report suggests that despite recent adjustments in the insurance sector, there are opportunities for structural market movements that could lead to better-than-expected performance for some flexible insurers [4]. - The report recommends China Pacific Insurance, China Life H, China Re H, and Sunshine Insurance H, with specific recommendations based on market conditions [5].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - In the context of relatively high maturity pressure at the end of the quarter, the issuance of certificates of deposit (CDs) was relatively active this week, with an increase in long - term issuance leading to a slight lengthening of the term structure. After entering October, the maturity pressure is relatively small, and the renewal pressure may ease. - On the demand side, wealth management products remain the main support for allocation, while rural commercial banks are accelerating their reduction. With limited incremental allocation at the end of the quarter, the pricing of CDs has increased slightly. - In terms of funds, the 7D and 14D reverse repurchases at the end of the quarter may maintain relatively active placements, and the MLF may continue with a small net placement. It is expected that the risk of a tightened funds market is limited. - For CDs, with relatively active supply, constraints on funds, and limited support on the demand side, the pricing of 1 - year national and joint - stock bank CDs at the end of the quarter may fluctuate within a narrow range of 1.65 - 1.7%. After the quarter - end in October, the supply - demand pattern may ease. The key lies in the rhythm of wealth management product allocation. If there is early "grabbing for allocation" like in June and the growth of wealth management product scale in October is weaker than in April and July, the support for the CD market at the beginning of October may be relatively limited, and the 1 - year national and joint - stock bank CDs may slightly recover to around 1.6% [2][48]. 3. Summary According to the Table of Contents Supply: Net Financing Turns Positive, and the Term Structure Lengthens - This week (September 15 - 21), the CD issuance scale was 984.41 billion yuan, and the net financing amount was 134.36 billion yuan (compared with - 468.01 billion yuan from September 8 - 14). - In terms of supply structure, the issuance proportion of state - owned banks increased from 31% to 46%, while that of joint - stock banks decreased from 31% to 20%. - In terms of terms, the issuance proportion of 1 - year CDs increased from 15% to 23%. The weighted issuance term of CDs expanded to 6.40 months (previously 5.86 months). - Next week (September 22 - 28), the maturity scale will rise slightly to 968 billion yuan, a weekly increase of 117.95 billion yuan [2][5]. Demand: Wealth Management Products Are the Main Force in Secondary Allocation, and the Primary Market Subscription Rate Rises Slightly - In terms of secondary - market allocation institutions, state - owned banks and other product categories are the main forces in the secondary market, with weekly net purchases of 39.351 billion yuan and 50.213 billion yuan respectively. Money market funds changed from net selling of 21.016 billion yuan to net buying of 2.446 billion yuan. - In the primary market, the overall market subscription rate (15DMA) rose slightly to around 90%. By institution, the subscription rate of city commercial banks increased from 87% to 90%, that of joint - stock banks decreased from 94% to 93%, and that of state - owned banks increased from 82% to 85% [2][17]. Valuation: Primary - Market Pricing of CDs Increases Slightly, and Secondary - Market Yields Decline - In primary - market pricing, the central bank's supportive attitude continues. The issuance rate of 1 - year national and joint - stock bank CDs increased slightly to around 1.68%. Specifically, the rates of 3 - month and 6 - month varieties increased by 1bp compared with last week, the 1 - month variety increased by 3bp, the 9 - month variety increased by 2bp, and the 1 - year variety remained stable. - In terms of term spreads, the 1Y - 3M term spread of joint - stock banks fluctuated slightly, at the 23% historical quantile. - In terms of credit spreads, the spread between 1 - year city commercial banks and joint - stock banks narrowed from 10.27BP to 8.43BP, at around the 8% quantile, and the spread between rural commercial banks and joint - stock banks narrowed from 16.33BP to 7.19BP, close to the 11% quantile. - In the secondary market, the yields of AAA - rated CDs increased slightly. The 1 - month variety increased by 2bp compared with last week, the 3 - month, 6 - month, and 1 - year varieties increased by 1bp, and the 9 - month variety remained the same as last week. The 1Y - 3M term spread of AAA - rated CDs decreased slightly to the 24% historical quantile [2][21][29]. Comparison: The Spread between CDs and Funds Widens Slightly in Some Areas - The spread between the 1 - year AAA - rated CD yield and the 15 - day moving average of DR007 widened from 19.42BP to 19.87BP; the spread with the 15 - day moving average of R007 widened from 17.49BP to 18.63BP. - The yield of 1 - year treasury bonds decreased by 1bp, and the spread between CDs and treasury bonds widened from 27.00BP to 28.50BP, with the quantile rising to around 12%. - The spread between CDs and China Development Bank bonds narrowed from 9.20BP to 4.86BP, with the quantile dropping to 0%. - The spread between AAA - rated medium - and short - term commercial paper and CDs widened from 7.36BP to 8.54BP, with the quantile rising to 40% [35].

1. Report Industry Investment Rating - The report does not mention the industry investment rating. 2. Core Viewpoints of the Report - As of September 19, 2025, the debt - resolution varieties and special treasury bonds of government bonds are nearly issued, with about 2.1 trillion yuan of remaining varieties to be issued, indicating fiscal room for more efforts. If there is an increase in government bond issuance in Q4, there are several possibilities, and different issuance methods have different requirements and limitations [2][32]. - The urgency of domestic interest - rate cuts at the end of the year is not strong. The 14D reverse repurchase is expected to support a smooth quarter - end transition, and the operation may be more flexible. The Fed's interest - rate cut opens up space for domestic monetary policy easing, but the domestic policy is still "domestically - oriented" [3][57]. - From late September to early October, in order to achieve the annual growth target of 5%, pro - growth policies may disrupt the bond market. For allocation portfolios, when the 10y treasury bond yield is around 1.8%, it gradually becomes cost - effective; trading portfolios need to be cautious [4][61]. 3. Summary by Relevant Catalogs 3.1 Government Bond Classification, Progress, and Outlook 3.1.1 Types of Debt - Resolution Local Bonds - **Replacement Bonds**: General replacement bonds include replacement bonds (used from 2015 - 2019) and replacement - type refinancing special bonds (used from 2024 - 2026). The 2025 quota of replacement bonds is nearly issued. The replacement bonds in 2015 - 2018 issued 12.2 trillion yuan, and in 2019, 1579 billion yuan was issued. From 2024, the replacement - type refinancing special bonds are used, with 2 trillion yuan per year from 2024 - 2026, and as of September 19, 2025, 19747 billion yuan has been issued [14][19][20]. - **Special Refinancing Bonds**: Since 2020, they have become a new tool for local government debt resolution. The issuance can be divided into four stages, with a total issuance of about 31298 billion yuan. As of September 19, 2025, the 4000 - billion - yuan quota added in October 2024 has accumulated an issuance of 3981 billion yuan, and the existing quota is nearly issued [24][25][26]. - **Special Newly - Added Special Bonds**: Some newly - added special bonds not disclosing "one case and two books" are mainly used for resolving implicit debts. From 2024 - 2028, there is an 8000 - billion - yuan quota per year. As of September 19, 2025, 11506 billion yuan has been issued, and the excess may be used to repay government arrears to enterprises [27][31]. 3.1.2 Current Issuance Progress of Government Bond Varieties and Q4 Outlook - As of September 19, 2025, debt - resolution varieties and special treasury bonds are nearly issued, and the remaining varieties to be issued are about 2.1 trillion yuan. If there is an increase in government bond issuance in Q4, for treasury bonds, raising the quota requires approval from the National People's Congress, and there may be a rush - to - issue phenomenon in advance. Using the remaining quota does not require approval from the National People's Congress, but the current space is limited. For local bonds, the remaining quota and replacement bond quota have been allocated, but issuance requires fiscal approval [2][32][36]. 3.2 Monetary Policy 3.2.1 How to View the Tightening of Funds During the Tax Period and at the End of the Month? - In mid - September, due to the central bank's restrained liquidity injection, tax payments, and the freezing of funds for new share subscriptions on the Beijing Stock Exchange, the funds tightened briefly. Looking forward, funds may gradually ease in the last 7 days of the quarter, and the risk of fund fluctuations is relatively limited [44][47]. 3.2.2 How to Understand the Reform of the 14D Reverse Repurchase Bidding Method? - The 14D reverse repurchase bidding method is changed to multiple - rate bidding, which further strengthens the policy - rate status of the 7D reverse repurchase. The theoretical price is currently 1.55%. The 14D reverse repurchase in September is expected to support a smooth quarter - end transition, and subsequent operations may be more flexible [50][51][52]. 3.2.3 Will China Follow the Fed's Interest - Rate Cut? - The Fed's interest - rate cut opens up space for domestic monetary policy easing, but the domestic policy is still "domestically - oriented". The urgency of domestic interest - rate cuts at the end of the year is not strong, and the focus is on structural policy tools to boost broad credit [57][59][60]. 3.3 Bond Market Strategy - From late September to early October, pro - growth policies may disrupt the bond market. For allocation portfolios, when the 10y treasury bond yield is around 1.8%, it gradually becomes cost - effective; trading portfolios need to be cautious, and appropriate strategies include small - band micro - operations, short - credit coupon income, and waiting for better opportunities [61][65][66]. - Some varieties show cost - effectiveness and can be gradually entered during the adjustment process. According to the three - factor interest - rate bond comparison analysis framework, continue to pay attention to the 6y CDB bonds, 7y local bonds, and 10y CDB bonds. Funds with stable liabilities can pay attention to 20y CDB bonds and 30y treasury bonds [67]. 3.4 Interest - Rate Bond Market Review 3.4.1 Funding Situation - The central bank conducted net OMO injections, and the funding situation was balanced but tight [81]. 3.4.2 Primary Issuance - The net financing of treasury bonds and local bonds decreased, while the net financing of policy - financial bonds and inter - bank certificates of deposit increased [83]. 3.4.3 Benchmark Changes - The term spread of treasury bonds widened, and the term spread of CDB bonds narrowed. The short - end varieties of treasury bonds and CDB bonds performed better than the long - end varieties [78][88].

Quantitative Models and Construction Methods - **Model Name**: Volume Model **Construction Idea**: This model evaluates market trends based on trading volume dynamics[1][11][62] **Construction Process**: The model uses trading volume data across broad-based indices to generate neutral signals for short-term market timing[11][62] - **Model Name**: Low Volatility Model **Construction Idea**: This model assesses market trends by analyzing low-volatility characteristics[1][11][62] **Construction Process**: The model evaluates the volatility of broad-based indices and generates neutral signals for short-term market timing[11][62] - **Model Name**: Institutional Feature Model (LHB) **Construction Idea**: This model leverages institutional trading data from the "Dragon and Tiger List" to predict market trends[1][11][62] **Construction Process**: The model analyzes institutional trading patterns and generates bullish signals for short-term market timing[11][62] - **Model Name**: Feature Volume Model **Construction Idea**: This model uses specific volume characteristics to predict market trends[1][11][62] **Construction Process**: The model evaluates unique volume features and generates bearish signals for short-term market timing[11][62] - **Model Name**: Intelligent Algorithm Model (CSI 300 and CSI 500) **Construction Idea**: This model applies machine learning algorithms to predict market trends for specific indices[1][11][62] **Construction Process**: The model generates bearish signals for both CSI 300 and CSI 500 indices based on algorithmic predictions[11][62] - **Model Name**: Limit-Up/Down Model **Construction Idea**: This model evaluates market trends by analyzing the frequency of limit-up and limit-down events[1][12][63] **Construction Process**: The model generates neutral signals for mid-term market timing based on historical limit-up/down data[12][63] - **Model Name**: Calendar Effect Model **Construction Idea**: This model incorporates seasonal and calendar-based effects to predict market trends[1][12][63] **Construction Process**: The model generates neutral signals for mid-term market timing based on calendar patterns[12][63] - **Model Name**: Long-Term Momentum Model **Construction Idea**: This model evaluates long-term market trends using momentum indicators[1][13][64] **Construction Process**: The model generates bullish signals for long-term market timing based on momentum analysis[13][64] - **Model Name**: A-Share Comprehensive Weapon V3 Model **Construction Idea**: This composite model integrates multiple signals to provide a comprehensive market outlook[1][14][65] **Construction Process**: The model generates bearish signals for A-shares by combining various short, mid, and long-term indicators[14][65] - **Model Name**: A-Share Comprehensive Guozheng 2000 Model **Construction Idea**: This composite model focuses on the Guozheng 2000 index using integrated signals[1][14][65] **Construction Process**: The model generates bearish signals for the Guozheng 2000 index by combining multiple indicators[14][65] - **Model Name**: Turnover-to-Amplitude Model (Hong Kong Market) **Construction Idea**: This model evaluates the Hong Kong market by analyzing turnover relative to price amplitude[1][15][66] **Construction Process**: The model generates bullish signals for mid-term market timing in the Hong Kong market[15][66] Model Backtesting Results - **Volume Model**: Neutral signals for all broad-based indices[11][62] - **Low Volatility Model**: Neutral signals for all broad-based indices[11][62] - **Institutional Feature Model (LHB)**: Bullish signals for short-term market timing[11][62] - **Feature Volume Model**: Bearish signals for short-term market timing[11][62] - **Intelligent Algorithm Model (CSI 300 and CSI 500)**: Bearish signals for both indices[11][62] - **Limit-Up/Down Model**: Neutral signals for mid-term market timing[12][63] - **Calendar Effect Model**: Neutral signals for mid-term market timing[12][63] - **Long-Term Momentum Model**: Bullish signals for long-term market timing[13][64] - **A-Share Comprehensive Weapon V3 Model**: Bearish signals for A-shares[14][65] - **A-Share Comprehensive Guozheng 2000 Model**: Bearish signals for the Guozheng 2000 index[14][65] - **Turnover-to-Amplitude Model (Hong Kong Market)**: Bullish signals for mid-term market timing[15][66]

- The report introduces a "Total Heat Index" for monitoring market sentiment, which aggregates the browsing, self-selection, and click counts of individual stocks, normalized by their market share on the same day, and then multiplied by 10,000, with a value range of [0,10000][7] - The "Total Heat Index" is used as a proxy variable for "emotional heat" to track the sentiment of broad-based indices, industries, and concepts[7] - The report constructs a simple rotation strategy based on the weekly heat change rate (MA2) of different broad-based indices, buying the index with the highest heat change rate at the end of each week, and staying out of the market if the highest change rate is in the "others" group[12][15] - The rotation strategy based on the heat change rate (MA2) has an annualized return of 8.74% since 2017, with a maximum drawdown of 23.5%, and a return of 32.7% in 2025[15] - The report also constructs two simple portfolios based on the heat change rate of concepts: a "TOP" portfolio consisting of the top 10 stocks with the highest total heat in the hottest concepts, and a "BOTTOM" portfolio consisting of the bottom 10 stocks with the lowest total heat in the hottest concepts[29] - The "BOTTOM" portfolio historically achieved an annualized return of 15.71% with a maximum drawdown of 28.89%, and a return of 40.9% in 2025[31] - The "Total Heat Index" for broad-based indices includes the heat of the CSI 300, CSI 500, CSI 1000, and CSI 2000 indices, as well as an "others" group for stocks not included in these indices[8][9] - The weekly heat change rate (MA2) for the main broad-based indices shows that the CSI 500 had the highest increase of 3.33%, while the CSI 300 had the largest decrease of 4.11%[15] - The weekly heat change rate (MA2) for the Shenwan primary industries shows that the real estate industry had the highest increase of 48.8%, while the defense industry had the largest decrease of -31.0%[26] - The weekly heat change rate (MA2) for the Shenwan secondary industries shows that the top 5 industries with the highest positive change rates are house construction II, film and cinema, paper, coal mining, and home appliance parts II[26] - The weekly heat change rate for concepts shows that the top 5 concepts with the highest positive change rates are house inspection, underground pipelines, car dismantling, prefabricated buildings, and Shanghai state-owned enterprise reform[27][29] - The current valuation historical percentiles (rolling 5 years) for the main broad-based indices are 81% for the CSI 300, 99% for the CSI 500, and 94% for the CSI 1000[36] - The Shenwan primary industries with current valuations above the 80th historical percentile include power equipment, electronics, computers, light manufacturing, defense, pharmaceuticals, retail, building materials, banking, coal, and basic chemicals[37] - The Shenwan secondary industries with current valuations above the 80th historical percentile include chemical pharmaceuticals, aerospace equipment, wind power equipment, steel raw materials, biological products, semiconductors, large state-owned banks, environmental protection equipment, general retail, airports, components, clothing and textiles, automotive services, tourism and scenic spots, commercial vehicles, rubber, building materials, real estate services, professional chains, diversified finance, animal health, electronic chemicals, optical and optoelectronics, chemical fibers, digital media, other electronics, glass and fiberglass, automation equipment, and games[40]

Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 7.6 yuan [2][9]. Core Insights - The company reported a revenue of 2.8 billion yuan for the first half of 2025, reflecting a year-over-year decline of 9.7%. The net profit attributable to the parent company was 270 million yuan, down 9.2% year-over-year [2][9]. - The core business is under pressure due to the low real estate market, which is closely related to the kitchen appliance industry. The sales area of new residential properties decreased by 3.5% year-over-year in the first half of 2025 [9]. - Despite the revenue decline, the company's gross margin improved to 43.5%, up 2.9 percentage points year-over-year, driven by a shift in consumer preferences towards higher-margin products due to national subsidy policies [9]. - The company's net profit margin for the first half of 2025 was 9.7%, a slight increase of 0.1 percentage points year-over-year, indicating stable profitability [9]. Financial Summary - The total revenue forecast for 2025 is 6.149 billion yuan, representing a year-over-year decline of 3.5%. The net profit is projected to be 509 million yuan, with a growth rate of 5.0% [5][10]. - The earnings per share (EPS) for 2025 is estimated at 0.60 yuan, with a price-to-earnings (P/E) ratio of 11 times [5][10]. - The company’s total assets are projected to reach 7.356 billion yuan by 2025, with a debt-to-equity ratio of 3.3% [10].

Market Overview - In August 2025, the A-share market showed strong performance with the Shanghai Composite Index increasing by 7.97% and the CSI 300 Index rising by 10.33%[8] - The bond market experienced fluctuations, with the 10-year government bond yield rising to 1.860%, up 14 basis points from the previous month[9] - The total market value of public funds reached a record high of 34.62 trillion yuan, increasing by 5717 billion yuan month-on-month[5] Fund Market Dynamics - Equity funds saw a significant inflow of approximately 4860 billion yuan in August, marking a month-on-month growth of 10.95%[24] - The number of new A-share accounts surged to 265 million in August, reflecting a 165% year-on-year increase[33] - The average yield of mixed and equity wealth management products reached 27.76% in July, significantly higher than traditional fixed-income products[26] Savings and Wealth Management Trends - In August, new household deposits increased by about 1094 billion yuan, but this was a decrease of approximately 6000 billion yuan compared to the same month last year[30] - The total scale of wealth management products rose to 30.86 trillion yuan by the end of August, showing a steady recovery after a brief contraction in June[34] - The interest rate for one-year fixed deposits dropped to 0.95%, making wealth management products more attractive[32] Policy and Regulatory Environment - The central bank maintained a moderately loose monetary policy, with M2 growth at 8.8% year-on-year, supporting liquidity in the market[14] - New regulations on trust and wealth management products are expected to enhance transparency and standardization in the industry[15] - Adjustments to the tax policy on government bond interest are anticipated to influence asset allocation among investors[17]

Report Industry Investment Rating No relevant content provided. Core Viewpoints - Today, convertible bonds followed the decline of underlying stocks, and the valuation compressed on a month - on - month basis. The trading sentiment in the convertible bond market weakened [1]. - The convertible bond price center decreased, and the proportion of high - price bonds declined. The valuation of convertible bonds compressed [2]. - In the industry performance, more than half of the underlying stock industry indices rose, while 21 industries in the convertible bond market declined [3]. Summary by Related Catalogs Market Overview - Index performance: The CSI Convertible Bond Index decreased by 0.55% month - on - month, the Shanghai Composite Index decreased by 0.30%, the Shenzhen Component Index decreased by 0.04%, the ChiNext Index decreased by 0.16%, the SSE 50 Index decreased by 0.11%, and the CSI 1000 Index decreased by 0.51% [1]. - Market style: Mid - cap value was relatively dominant. Large - cap growth rose by 0.23%, large - cap value rose by 0.17%, mid - cap growth rose by 0.42%, mid - cap value rose by 0.65%, small - cap growth decreased by 0.35%, and small - cap value decreased by 0.06% [1]. - Capital performance: The trading sentiment in the convertible bond market weakened. The trading volume of the convertible bond market was 81.662 billion yuan, a month - on - month decrease of 18.16%; the total trading volume of the Wind All - A Index was 2.349413 trillion yuan, a month - on - month decrease of 25.81%; the net out - flow of the main funds in the Shanghai and Shenzhen stock markets was 4.3142 billion yuan, and the yield of the 10 - year treasury bond increased by 2.43bp to 1.88% [1]. Convertible Bond Price and Valuation - Price: The weighted average closing price of convertible bonds was 129.25 yuan, a month - on - month decrease of 0.54%. The closing price of equity - biased convertible bonds was 180.11 yuan, a decrease of 1.01%; the closing price of debt - biased convertible bonds was 117.18 yuan, a decrease of 0.40%; the closing price of balanced convertible bonds was 125.56 yuan, a decrease of 0.44%. The proportion of bonds with a closing price above 130 yuan was 48.60%, a decrease of 0.82pct. The price median was 129.44 yuan, a decrease of 0.37% [2]. - Valuation: The fitted conversion premium rate of 100 - yuan par value was 28.28%, a decrease of 0.08pct. The overall weighted par value was 100.25 yuan, a decrease of 0.29%. The premium rate of equity - biased convertible bonds was 9.09%, a decrease of 1.15pct; the premium rate of debt - biased convertible bonds was 83.36%, an increase of 0.70pct; the premium rate of balanced convertible bonds was 22.11%, a decrease of 0.17pct [2]. Industry Performance - Underlying stock market: Among the A - share market, the top three rising industries were coal (+1.97%), non - ferrous metals (+1.19%), and building materials (+1.05%); the top three falling industries were automobiles (-1.94%), pharmaceutical biology (-1.41%), and computer (-1.26%) [3]. - Convertible bond market: 21 industries declined. The top three falling industries were light manufacturing (-2.73%), communication (-2.25%), and automobiles (-1.48%); the top three rising industries were building materials (+0.98%), national defense and military industry (+0.96%), and coal (+0.42%) [3]. - Performance indicators by category: - Closing price: The large - cycle decreased by 0.26%, manufacturing decreased by 1.61%, technology decreased by 0.59%, large - consumption decreased by 0.41%, and large - finance decreased by 0.80% [3]. - Conversion premium rate: The large - cycle decreased by 0.52pct, manufacturing decreased by 0.24pct, technology decreased by 0.48pct, large - consumption increased by 0.21pct, and large - finance decreased by 0.94pct [3]. - Conversion value: The large - cycle increased by 0.34%, manufacturing decreased by 1.63%, technology increased by 0.15%, large - consumption increased by 0.22%, and large - finance decreased by 0.54% [3]. - Pure - debt premium rate: The large - cycle decreased by 0.36pct, manufacturing decreased by 2.4pct, technology decreased by 0.91pct, large - consumption decreased by 0.53pct, and large - finance decreased by 0.92pct [4]. Industry Rotation - Coal, non - ferrous metals, and building materials led the rise. The report also provided the daily, weekly, monthly, and year - to - date changes in the underlying stocks and convertible bonds of various industries, as well as the valuation quantiles of the underlying stocks [58].

Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 55.0 yuan [2][10]. Core Views - The company achieved a revenue of 11.48 billion yuan in H1 2025, representing a year-on-year increase of 4.7%. The net profit attributable to shareholders was 0.94 billion yuan, showing a slight decrease of 0.1% year-on-year [2][10]. - The revenue for Q2 2025 was 5.69 billion yuan, with a year-on-year growth of 1.9%, while the net profit for the same period was 0.44 billion yuan, down 5.9% year-on-year [2][10]. - The company's gross margin in H1 2025 was 23.6%, a decrease of 0.8 percentage points year-on-year, primarily due to fluctuations in overseas tariffs [10]. - The net profit margin for H1 2025 was 8.2%, down 0.4 percentage points year-on-year, influenced by the decline in gross margin [10]. Financial Summary - The company is projected to have total revenue of 22.43 billion yuan in 2024, with a growth rate of 5.3%. The estimated revenue for 2025 is 23.40 billion yuan, reflecting a growth rate of 4.3% [5]. - The net profit attributable to shareholders is expected to be 2.24 billion yuan in 2024, with a growth rate of 3.0%, and 2.26 billion yuan in 2025, with a growth rate of 0.5% [5]. - The earnings per share (EPS) for 2025 is estimated at 2.82 yuan, with a price-to-earnings (P/E) ratio of 18 times [5][10]. - The company’s total assets are projected to reach 13.55 billion yuan by 2025, with a debt-to-equity ratio of 5.0% [11].