Investment Rating - The report maintains a strong confidence in the pharmaceutical sector, predicting a reversal trend in 2025, with innovative drugs and left-side sector reversals being the biggest investment opportunities [5][12]. Core Views - The recent adjustment in the pharmaceutical sector does not reflect any substantial changes in the industry's fundamentals. The report anticipates continued growth in the innovative drug sector, driven by upcoming academic conferences and seasonal changes in medical services and consumption [2][12]. - The report highlights significant advancements in chronic disease treatments, particularly with Eli Lilly's oral weight-loss drug Oforglipron, which has shown promising results in clinical trials [2][22]. - The report emphasizes the potential of high-end medical devices, supported by government policies aimed at fostering innovation in this area, suggesting that leading companies in specific segments are likely to benefit [33][36]. Summary by Sections Pharmaceutical Sector - Eli Lilly's Oforglipron has demonstrated significant efficacy in reducing A1C levels and weight in type 2 diabetes patients during its Phase 3 trial, with a notable average weight loss of 16.0 pounds (7.9%) [2][22]. - The report notes that the domestic market is seeing continuous progress in chronic disease treatments, with several innovative drugs being prioritized for review by regulatory authorities [20][41]. Biologics - Sanofi and Regeneron reported positive results from the EVEREST Phase 4 trial for Dupixent, which outperformed Xolair in treating adults with chronic rhinosinusitis with nasal polyps (CRSwNP) and asthma [24][29]. - The report suggests ongoing attention to the development of IL-4α targeted drugs, as multiple domestic companies are making strides in this area [24][32]. Medical Devices - The National Medical Products Administration (NMPA) has initiated measures to support the innovation of high-end medical devices, which is expected to accelerate the development of domestic medical robots and advanced imaging equipment [33][36]. - The report indicates that the medical device sector is at an upward turning point, driven by an aging population and increasing healthcare demands [37]. Medical Services & Consumer Healthcare - The report discusses the initiation of a pilot program for medical service price reform in Sichuan, which aims to optimize the pricing system and reflect the value of healthcare professionals' labor [38][40]. - The report highlights the establishment of a comprehensive eye health management system by Aier Eye Hospital, showcasing advancements in healthcare service delivery [38]. Traditional Chinese Medicine - The report notes that since 2025, the Center for Drug Evaluation (CDE) has accepted 41 new drug IND applications for traditional Chinese medicine, indicating a supportive policy environment for innovation in this sector [41][42].

Investment Rating - The report indicates a neutral investment rating for the agricultural sector, with expectations of limited movement in the next 3-6 months [80]. Core Insights - The agricultural sector index decreased by 3.13% this week, underperforming compared to the Shanghai Composite Index [13][14]. - The pig farming sector shows signs of recovery with a current average price of 14.22 CNY/kg, reflecting a weekly increase of 1.43% [21][22]. - The poultry farming sector is stabilizing, with white feather chicken prices at 7.12 CNY/kg, down 2.06% from the previous week [32]. - The beef and dairy sectors are experiencing price fluctuations, with live cattle prices at 26.65 CNY/kg, showing a slight decrease [41]. - The planting industry is expected to improve if there is a significant reduction in grain production due to external uncertainties [48]. Summary by Sections 1. Market Review - The agricultural index closed at 2640.23 points, down 3.13% week-on-week, while the Shanghai Composite Index decreased by 0.51% [13][14]. 2. Key Data Tracking 2.1 Pig Farming - The average weight of pigs at slaughter is 128.28 kg, with a slight decrease of 0.54 kg from the previous week [21][22]. - The profit for self-bred pigs is 19.40 CNY/head, showing a week-on-week increase of 22.30 CNY/head [21][22]. 2.2 Poultry Farming - The average price for white feather chickens is 7.12 CNY/kg, reflecting a decrease of 2.06% [32]. - The overall price stability is attributed to balanced supply and demand [32]. 2.3 Livestock - Live cattle prices are at 26.65 CNY/kg, with a slight decrease of 0.02% [41]. - The dairy sector is seeing a decline in prices, with average milk prices at 3.04 CNY/kg, down 0.33% week-on-week [41]. 2.4 Planting Industry - Domestic corn prices are at 2,342.86 CNY/ton, up 0.37% week-on-week [47]. - The planting sector is stabilizing, with potential improvements if grain production decreases significantly [48]. 2.5 Feed & Aquaculture - Feed prices remain stable, with pig feed at 3.36 CNY/kg [65]. - Aquaculture prices are also stable, with various fish prices showing minimal changes [65].

Investment Rating - The report rates the industry as "Buy" with an expectation of a price increase exceeding 15% over the next 3-6 months [36] Core Insights - Yonghui Supermarket has entered a new phase of large-scale transformation, with over 100 stores adopting the "Fat Donglai" model, aiming to reach 300 stores by early 2026 [11][32] - The 618 shopping festival showed a clear trend of omni-channel collaboration, with national supplement categories driving growth and instant retail emerging as a new player [15][18] Summary by Sections 1. Core Views and Company Dynamics - Yonghui's transformation includes optimizing employee compensation and implementing a profit-sharing mechanism, with significant bonuses distributed to employees [11] - The company plans to accelerate the transformation of stores, expecting to exceed 178 stores by the end of August 2025 [11] 2. Industry Data Tracking - In the second week of June, the overall GMV for Tmall and JD.com decreased by 9.63% year-on-year [19] - The top five categories in terms of growth were toys, automobiles and bicycles, consumer electronics, home appliances, and shoes and bags [19] 3. Market Review - The retail sector experienced a decline, with the Shanghai Composite Index down by 0.51% and the retail sector down by 2.75% during the week of June 16-20, 2025 [25][26] - Notable stock performances included Zhejiang Dongri and Jifeng Technology, which saw significant gains [25] 4. Investment Recommendations - Yonghui Supermarket is recommended for its unique competitive advantages in the fresh produce sector and its ability to leverage scale for cost advantages [32][33] - Meituan is highlighted for its improving profit margins and potential benefits from macroeconomic recovery, with plans to expand its overseas delivery platform [34]

Investment Rating - The report suggests a focus on companies with high earnings growth certainty and relatively high dividend support in the domestic furniture sector, as well as certain export companies with strong growth logic or overseas production capacity advantages [4][9]. Core Insights - The furniture retail sales in China saw a year-on-year increase of 25.6% in May, with a cumulative increase of 21.4% from January to May. However, the overall order situation has weakened since June, indicating a potential fatigue in demand stimulation from national subsidies [4][9]. - In the new tobacco sector, the glo hilo product launched in Japan is expected to accelerate revenue growth in the second half of 2025, supported by strong marketing resources from BAT [4][12]. - The paper packaging sector is experiencing price stability, with a focus on growth-oriented packaging companies. The report highlights the need to monitor the performance of major paper types and the overall supply pressure in the market [4][15]. - The light consumer goods and pet sectors are seeing increased online competition, with a focus on companies that demonstrate clear growth narratives and operational capabilities [4][16]. - The two-wheeler market is expected to see a rebound in the second half of the year, driven by new national standards and product launches, despite a temporary slowdown due to subsidy fund exhaustion [4][19]. Summary by Sections Furniture Sector - Domestic retail sales of furniture increased by 25.6% in May, with a cumulative increase of 21.4% from January to May. However, the order situation has weakened since June, indicating potential fatigue in demand stimulation [4][9]. - Recommended companies include Sofía, Gujia Home, Mousse, and others, focusing on those with high earnings growth certainty and dividend support [4][9]. New Tobacco - The glo hilo product launched in Japan is expected to accelerate revenue growth in the second half of 2025, with strong marketing support from BAT [4][12]. - Recommended companies include Smoore International, which is expected to benefit from the expansion of the overseas compliant market [4][12]. Paper and Packaging - The paper sector is experiencing price stability, with major paper types showing no significant improvement in orders. The report emphasizes the importance of monitoring growth-oriented packaging companies [4][15]. - Recommended companies include Yutong Technology and others, focusing on those with stable operations and growth potential [4][15]. Light Consumer Goods & Pets - The light consumer goods sector is seeing increased online competition, with a focus on companies that demonstrate clear growth narratives and operational capabilities [4][16]. - Recommended companies include Guibao Pet and others, focusing on those with resilient consumer demand and growth potential [4][16]. Two-Wheeler Market - The two-wheeler market is expected to see a rebound in the second half of the year, driven by new national standards and product launches, despite a temporary slowdown due to subsidy fund exhaustion [4][19]. - Recommended companies include Yadi Holdings and others, focusing on those with strong product capabilities and market expansion potential [4][19].

Investment Rating - The report suggests a positive outlook for the AI/AR glasses supply chain and related industries, indicating a favorable investment environment in the second half of the year [1][13]. Core Insights - The launch of the Oakley Meta HSTN AI glasses by Meta and Oakley is expected to drive significant advancements in AI glasses applications in sports [1][13]. - The demand for AI-PCB and ASIC servers is projected to grow significantly, with strong orders reported from multiple AI-PCB companies [1][41]. - The communication sector is experiencing optimism due to the anticipated increase in AI ASIC chip shipments and the expansion of the light module market [2][43]. Summary by Sections Electronic Industry Insights - Meta and Oakley have introduced a new AI glasses model, enhancing battery life to 8 hours and video resolution to 3K, with a starting price of $399 [1][13]. - The PCB industry is showing signs of recovery, with expectations of significant growth in the second quarter driven by demand from home appliances and automotive sectors [1][15]. - The component sector is witnessing an upward trend, with increased usage of MLCCs and higher prices due to product upgrades [1][29]. Communication Industry Insights - The market is optimistic about AI ASIC penetration, with Meta planning to release a new AI ASIC chip by 2025-2026, which is expected to significantly increase shipments [2][48]. - The light module sector is set to benefit from the growing demand for AI ASICs, with several companies positioned to capture market share [2][48]. Computer Industry Insights - The computer sector is currently in a transitional phase, with expectations of improved performance in the second half of the year as new technologies and products are introduced [3][41]. - The report highlights the importance of monitoring the performance of major companies as they adapt to macroeconomic conditions and potential recovery in demand [3][41].

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - The micro trading thermometer reading of the bond market this period remained basically flat at 49% [10]. - The number of indicators in the over - heated range increased to 25%. The 1/10Y Treasury bond turnover rate quantile rebounded significantly, the allocation disk strength continued to weaken, the policy spread quantile widened significantly, and all comparison indicators were in the cold range [10]. 3. Summaries by Relevant Catalogs 3.1 Overall Indicator Distribution - Among the 20 micro - indicators, the number of indicators in the over - heated range increased to 5 (25% of the total), the number in the neutral range decreased to 6 (30% of the total), and the number in the cold range increased to 9 (45% of the total). The 1/10Y turnover rate moved from the neutral range to the over - heated range, and the market spread moved from the neutral range to the cold range [3][18]. 3.2 Transaction Heat Indicators - Only the quantile of the 30/10Y Treasury bond turnover rate decreased by 28 percentage points, while the quantiles of other indicators rebounded. The quantiles of the 1/10Y Treasury bond turnover rate, the whole - market turnover rate, and the institutional leverage increased by 21, 22, and 10 percentage points respectively. The average quantile of transaction heat increased by 4 percentage points [4]. - The proportion of indicators in the over - heated range rose to 33%, the proportion in the neutral range rose to 50%, and the proportion in the cold range remained at 17%. The 1/10Y Treasury bond turnover rate quantile increased by 21 percentage points, moving from the neutral range to the over - heated range [5][21]. 3.3 Institutional Behavior Indicators - The quantiles of the allocation disk strength and the listed company's wealth management purchase volume decreased by 22 and 17 percentage points respectively, while the quantiles of other indicators rebounded slightly. The average quantile of institutional behavior decreased by 4 percentage points [4]. - The proportion of indicators in the over - heated range rose to 38%, the proportion in the neutral range decreased to 25%, and the proportion in the cold range remained at 38%. The quantiles of the allocation disk strength and the listed company's wealth management purchase volume fell to 10% and 21% respectively [6][25]. 3.4 Spread Indicators - The market spread decreased by 1 percentage point, the policy spread quantile increased by 11 percentage points, and the average quantile of spreads increased by 5 percentage points [4]. - The policy spread continued to narrow by 3bp to 0bp, and its quantile increased by 11 percentage points to 54%, remaining in the neutral range. The credit spread, IRS - SHIBOR 3M spread, and Agricultural Development - National Development spread were basically flat, and the average spread widened slightly by 1bp to 19bp, with its quantile slightly decreasing by 1 percentage point to 39%, remaining in the neutral range [6][29]. 3.5 Comparison Indicators - The quantile of the stock - bond comparison decreased by 2 percentage points, the quantile of the commodity comparison increased by 1 percentage point, and other comparison indicators changed little. The average quantile of comparisons was basically flat compared with the previous period [4]. - All comparison indicators were in the cold range. The quantile of the stock - bond comparison continued to fall by 2 percentage points to 36%, the quantile of the commodity comparison increased slightly by 1 percentage point to 13%, and the quantile of the real - estate comparison was basically flat [7][32].

Investment Rating - The report suggests a positive outlook for the AI/AR glasses industry and related supply chains, indicating a strong growth potential in the second half of the year [1][4]. Core Insights - Meta's launch of the AI glasses Oakley Meta HSTN is expected to drive deep applications in sports like skiing and cycling, with significant hardware upgrades and AI functionalities [1][5]. - The demand for AI-PCB is projected to grow significantly, driven by the increasing orders from multiple AI-PCB companies and the expansion of domestic copper-clad laminate manufacturers [1][4]. - The semiconductor industry is experiencing a recovery, with strong growth expected in the storage segment due to rising demand from cloud computing and consumer electronics [21][23]. Summary by Sections Consumer Electronics - Meta and Oakley's new AI glasses are set to enhance the application of AI in sports, with features like 8-hour battery life and 3K video resolution [1][5]. - The report anticipates a new wave of innovation in AI consumer electronics, particularly in AR glasses [5]. PCB Industry - The PCB industry is showing signs of accelerated growth, particularly in the copper-clad laminate sector, with expectations of significant quarter-on-quarter growth [7][4]. - The report highlights the positive outlook for the PCB industry, driven by demand from home appliances, automotive, and AI applications [7]. Semiconductor Industry - The storage segment is expected to see a price increase due to reduced supply and increased demand from cloud computing and consumer electronics [21][23]. - The report emphasizes the importance of domestic semiconductor equipment and materials in light of global supply chain challenges [24][28]. Key Companies - Companies like Nvidia, which are actively increasing orders for AI-related products, are expected to benefit significantly from the growing demand for AI-PCB and computing hardware [32][33]. - Domestic semiconductor equipment manufacturers are positioned to gain market share due to the ongoing trend of localization and self-sufficiency in the semiconductor supply chain [35][36].

Investment Rating - The report suggests a focus on leading domestic generative model companies such as iFlytek, and highlights potential in AI hardware applications with recommendations for companies like Yingshi Network and Hongsoft Technology [2] Core Insights - The report indicates that AI-related functionalities can enhance user engagement and payment rates in consumer applications, recommending attention to companies like Kingsoft Office and Wanjing Technology [2] - The current market is characterized by a chaotic fundamental environment, with some high-frequency data showing resilience, while investor sentiment remains cautious about future expectations [11][12] - The report anticipates that the second half of the year may yield better operational performance due to base effects, new technology/product launches, and policy implementations [11][12] Summary by Sections Industry Perspective - The report notes that OpenAI has received a contract worth up to $200 million from the U.S. Department of Defense to develop advanced AI capabilities [11] - MiniMax has launched several innovations, including the MiniMax-M1 model and the MiniMaxAgent, which have garnered industry attention for their cost-effectiveness and capabilities [11] - The report emphasizes the importance of risk appetite in influencing market valuations, with a potential shift towards theme-based investments [11] Subsector Insights - High-growth sectors identified for 2025 include AI computing power and LiDAR, while accelerating sectors include AI applications [10][12] - Stable growth sectors encompass software outsourcing, financial IT, and the Huawei supply chain, with upward trends expected in quantum computing and data elements [12] - The report highlights that the education IT and cybersecurity sectors are at an inflection point for growth, while industrial software and medical IT face some pressure [12] Market Review - From June 16 to June 20, 2025, the computer industry index (Shenwan) fell by 1.83%, underperforming the CSI 300 index by 1.37 percentage points [13] - The report notes that the computer sector's performance was in the middle range among 31 Shenwan primary industry indices during this period [13] Upcoming Events - Key upcoming events include the Huawei Developer Conference and the Shenzhen International Consumer Electronics Show, which may present opportunities in related industries [25]

Investment Rating - The report maintains an optimistic outlook on the Hong Kong stock market and virtual assets, indicating a positive investment rating for these sectors [3][10]. Core Insights - The report highlights the gradual improvement of legal frameworks for virtual assets, suggesting an upward trend in this sector. It emphasizes the strong performance of the Hong Kong stock market, driven by the long-term undervaluation of assets and the influx of quality mainland assets through IPOs [3][10]. - The report also notes the increasing interest from traditional internet and financial institutions in virtual assets and stablecoins, indicating a broader acceptance and potential for growth in this area [3][10]. Industry Summaries 1. Education - The Chinese education index fell by 2.66% from June 16 to June 20, underperforming compared to major indices. Notable performances included 51talk, which rose by 8.06% [12][22]. - Companies like TAL Education and others are launching AI-driven educational products, indicating a shift towards technology in education [21][25]. 2. Luxury Goods - The luxury goods market is experiencing a slowdown, with a projected decline of 1-3% in Q1 2025. The core markets of the US and China are stagnating, while emerging markets show potential growth [22][26]. - Notable stock performances included Samsonite, which fell by 2.41%, while Prada rose by 1.71% during the same period [22][26]. 3. Coffee and Tea - The coffee sector remains robust, with net increases in store numbers and positive same-store growth for leading brands. However, the tea segment is facing challenges, with a decline in same-store growth and a net decrease in store numbers [27][30]. - Luckin Coffee continues to expand, with significant new store openings and international growth plans [30]. 4. E-commerce - The e-commerce sector is under pressure, with a slight decline in the Hang Seng Internet Technology Index. However, platforms like Tmall and JD.com reported strong sales during the 618 shopping festival, with Tmall's GMV growing by 10% [31][35]. - JD.com is also expanding into the travel sector, offering zero-commission hotel bookings [35][36]. 5. Streaming Platforms - The streaming sector is showing resilience, with the Hang Seng Media Index outperforming other indices. Key players like Netflix and Tencent Music have shown positive growth [38][40]. - The report highlights the success of specific content on platforms like iQIYI, indicating strong viewer engagement [38]. 6. Virtual Assets and Trading Platforms - The global cryptocurrency market capitalization decreased by 7.2%, with Bitcoin and Ethereum prices also declining. However, the report remains optimistic about the long-term potential of virtual assets [39][42]. - Regulatory developments, such as the passage of the Genius Act in the US, are expected to enhance the framework for stablecoins and virtual assets [3][10]. 7. Automotive Services - The automotive aftermarket is facing challenges, with various companies adjusting strategies to attract customers. Notable price adjustments in the tire industry are also highlighted [30][48].

Investment Rating - The report suggests a focus on four main investment lines within the securities sector, indicating a positive outlook for the industry [3][4]. Core Insights - The China Securities Regulatory Commission (CSRC) is set to implement a series of measures to deepen the reform of the science and technology innovation sector, which is expected to enhance the vitality of the capital market and benefit the venture capital industry [2][36]. - The report highlights the anticipated growth in the average daily trading volume (ADT) for the Hong Kong Stock Exchange, which reached 2,103 billion yuan, a year-on-year increase of 50% [3]. - The insurance sector is expected to benefit from new regulations on dividend insurance, with the settlement yield cap set at 3.2%, favoring leading companies in the market [4][32]. Summary by Sections Securities Sector - The CSRC's initiatives aim to strengthen the multi-tiered capital market and promote the integration of technological and industrial innovation, which will support science and technology enterprises [2][36]. - The report recommends focusing on specific companies such as Hong Kong Exchanges and Clearing Limited (HKEX) and Sichuan Shuangma, which are expected to benefit from policy catalysts in the venture capital sector [3]. Insurance Sector - New regulations on dividend insurance have been introduced, standardizing the settlement yield cap at 3.2%, which is beneficial for leading insurance companies [4][32]. - The report suggests that the insurance sector may experience a value reassessment, with a focus on low valuation and strong performance in the upcoming quarterly reports [4][42]. Market Review - The report notes that the A-share market has shown mixed performance, with the non-bank financial sector underperforming compared to the broader market [10][14]. - The average daily trading volume in the A-share market was reported at 12,150 billion yuan, reflecting a decrease of 11.4% week-on-week [13]. Data Tracking - The report provides insights into the brokerage business, noting a significant year-on-year increase in new equity fund issuance and a robust performance in the bond underwriting sector [13][27]. - The asset management sector has seen a steady increase, with public non-monetary funds reaching 19.1 trillion yuan, up 1.2% from the previous month [13]. Industry Dynamics - The report emphasizes the importance of long-term capital, including insurance and social security funds, in supporting private equity investments in technology companies [36][37]. - The establishment of foreign-owned insurance asset management companies in Shanghai is highlighted as a significant development in the insurance sector [37].