Investment Rating - The report maintains a strong confidence in the pharmaceutical sector, anticipating a reversal trend in 2025, with innovative drugs and left-side sector recovery being the primary investment opportunities [4][11]. Core Insights - The pharmaceutical sector has shown strong performance, highlighted by the unexpected $1.25 billion upfront payment from the significant deal between Sanofi and Pfizer, which enhances market confidence in the quality and market value of Chinese innovative drugs [11][20]. - The ASCO conference showcased a wealth of clinical data from domestic innovative pharmaceutical companies, indicating a potential new wave of data-driven innovation in the drug market [11][22]. - There is notable potential for recovery in sectors such as chain pharmacies, generic drugs, traditional Chinese medicine, and in vitro diagnostics, with companies like YaoYao Pharmacy and Changchun High-tech gaining market recognition following improvements in their fundamentals [11][20]. Summary by Sections Pharmaceutical Sector - Sanofi's significant deal with Pfizer includes a $1.25 billion upfront payment, reinforcing the market's recognition of the value of Chinese innovative drugs [20]. - At ASCO, 74 clinical studies from Chinese companies were presented, with 11 entries in the Late Breaking Abstracts (LBA) category, showcasing advancements in various cancer treatments [22]. Biopharmaceuticals - GSK's FDA approval of mepolizumab for COPD treatment is expected to generate €1.784 billion in global sales by 2024, with several domestic companies also developing IL-5 targeted drugs [2][9]. Medical Services & Consumer Healthcare - Alcon reported a slight decline in surgical sales but a 3% growth in vision care sales, driven by innovations in contact lenses [3][11]. Medical Devices - Johnson & Johnson launched the SOUNDSTAR CRYSTAL ultrasound catheter in the U.S., indicating a robust pipeline of innovative products in the medical device sector [3][12]. Pharmacies - The Chinese government has initiated policies to enhance the health promotion functions of retail pharmacies, suggesting a favorable environment for non-drug category expansion [3][12]. Investment Recommendations - The report suggests actively monitoring updates on innovative drug clinical data and the upcoming summer trends in traditional Chinese medicine, pharmacies, and healthcare services [4][11]. Key Targets - Notable companies to watch include Kelun-Botai, Renfu Pharmaceutical, East China Pharmaceutical, and Mindray Medical, among others [5][15].

Investment Rating - The report suggests a strong investment trend in the automotive sector, particularly in the areas of intelligent driving and robotics, indicating a bullish outlook for the ROBO+ sector [4]. Core Insights - The report highlights that the commercial window for Robotaxi has opened, with increasing passenger willingness to pay and cities willing to allow deployment, indicating a significant shift in the market dynamics [1][12]. - The introduction of Xiaomi's first SUV model, YU7, is expected to capture a significant market share in the mid-to-large pure electric SUV segment due to its long range and fast charging capabilities [1][9]. - WeRide's financial report shows a doubling of Robotaxi revenue share and accelerated global expansion, with operations in 10 cities across 3 continents [10][11]. - Xiaoma Zhixing's financial results indicate a strong growth trajectory for Robotaxi, with plans to scale its fleet to 1,000 units by the end of the year [12]. Summary by Sections Intelligent Driving - Xiaomi's YU7 SUV is positioned as a luxury high-performance model, with specifications indicating a competitive edge in the market [9]. - WeRide's Q1 2025 financials show total revenue of 72.4 million yuan, with a net loss of 385 million yuan, reflecting increased investment in autonomous driving [10][11]. - Xiaoma Zhixing reported a Q1 revenue of 102 million yuan, with Robotaxi business revenue growing over 200% [12]. - Tesla plans to launch its Robotaxi project in Austin, which is expected to reshape urban transportation [13]. - Dongfeng and Huawei signed a strategic cooperation agreement to enhance automotive intelligence and digitalization [14]. Robotics - Zhiyuan Robotics announced a significant breakthrough with the release of the EVAC world model and EWMBench evaluation benchmark, aimed at enhancing embodied intelligence research [25][29]. - RoboCare, in collaboration with Obsidian Technology, has developed a cognitive training system for elderly care, demonstrating practical applications of robotics in healthcare [30][34]. - Madi Technology has launched a smart care platform in partnership with major tech firms, focusing on integrating AI and robotics for elderly care [36]. - The report emphasizes the importance of core components in robotics, with several companies making strides in developing essential parts for robotic applications [41][42].

Investment Rating - The report maintains a "Buy" rating for the company, suggesting a potential upside of over 15% within the next 6-12 months [5][14]. Core Insights - The company is positioned to benefit from the recent passing of the Stablecoin Regulation Bill in Hong Kong, allowing institutions to apply for compliance as stablecoin issuers by the end of the year [2]. - ZA Bank, a subsidiary of the company, aims to provide banking services for stablecoin issuers and has already partnered with over 80 Web3 companies [2][3]. - The company has launched cryptocurrency trading services for retail users in Hong Kong, simplifying the investment process through its app [3]. - The company is expected to see significant profit growth in 2025, with a projected net profit of 905 million yuan, reflecting a 50% increase from the previous year [5][11]. Financial Projections - Insurance service revenue is projected to grow from 27,535 million yuan in 2023 to 45,823 million yuan by 2027, with a compound annual growth rate (CAGR) of approximately 13.5% [11]. - The company's net profit is expected to increase from 294 million yuan in 2023 to 1,360 million yuan by 2027, indicating a strong growth trajectory [11]. - The price-to-book (P/B) ratio is projected to decrease from 0.84 in 2023 to 0.62 by 2027, suggesting potential undervaluation [11].

Investment Rating - The report maintains a "Buy" rating for the company, suggesting a potential upside of over 15% within the next 6-12 months [5][14]. Core Insights - The company is positioned to benefit from the recent passing of the Stablecoin Regulation Bill in Hong Kong, allowing institutions to apply for compliance as stablecoin issuers by the end of the year [2]. - ZA Bank, a subsidiary of the company, aims to provide banking services for Web 3.0 and has already partnered with over 80 Web3 companies, enhancing its market presence [2][3]. - The company has launched cryptocurrency trading services for retail users in Hong Kong, simplifying the investment process through its app [3]. - The company is expected to see significant profit growth in 2025, with a projected net profit of 905 million yuan, reflecting a 50% increase from the previous year [5][11]. Summary by Sections Business Development - ZA Bank is the first digital bank in Hong Kong to offer reserve banking services for stablecoin issuers, collaborating with Circle Innovation Technology as one of the first sandbox participants [2][4]. - The bank has established strong ties with digital asset exchanges and stablecoin issuers, indicating potential for further collaborations [4]. Financial Projections - The company anticipates a substantial increase in net profit for 2025, with a low base in the first half of 2024, where net profit is expected to be only 5.5 million yuan [5]. - The projected insurance service revenue for 2025 is 35.26 billion yuan, with a growth rate of 11.1% [11]. Valuation Metrics - As of now, the company's price-to-book (PB) ratio is 0.74, which is at the 5% percentile of valuations since 2018, indicating a low valuation opportunity [5].

Investment Rating - The report suggests a positive outlook for the home appliance industry, indicating strong growth potential in both domestic and emerging markets [4][54]. Core Insights - In April, home appliance exports showed a mixed performance, with a slight increase in quantity (+1.5%) but a decrease in value (-1.7%). Notably, air conditioner exports rose significantly by 14.5% [11][13]. - Emerging markets, particularly Southeast Asia and Africa, demonstrated robust growth in appliance exports, with increases of 70% and 43% respectively [13][16]. - The domestic air conditioner production is expected to increase by 35% in June 2025, driven by improved consumer confidence and government policies [21][23]. Summary by Sections 1. Export Performance - In April, air conditioner exports reached 10.68 million units, a year-on-year increase of 14.5%, while refrigerator exports slightly declined by 0.7% [11][12]. - Southeast Asia and Africa led the growth in appliance exports, with significant increases in export values [13][14]. 2. Production Insights - Air conditioner production in June 2025 is projected at 20.75 million units, a 17% increase year-on-year, with domestic production up by 35.4% [21][23]. - Factors contributing to this growth include enhanced retail market dynamics and government incentives [23]. 3. Market Trends - The home appliance retail sector has maintained high growth, supported by domestic demand and favorable government policies [4][54]. - The report emphasizes the importance of focusing on domestic demand and subsidy-driven growth opportunities in the white goods sector [4][54]. 4. Investment Recommendations - The report recommends focusing on three main lines: domestic demand and subsidies, structural upgrades in the black goods sector, and opportunities in small appliances [4][54].

Investment Rating - The report suggests a positive outlook for the home appliance industry, particularly focusing on domestic demand and emerging market exports [4][54]. Core Insights - In April, home appliance exports showed a mixed performance with a slight increase in quantity (+1.5%) but a decrease in value (-1.7%). Air conditioner exports rose significantly by 14.5% [11][13]. - The report highlights strong growth in emerging markets, particularly Southeast Asia and Africa, with export values increasing by 70% and 43% respectively [13][16]. - The air conditioning production for June is projected to increase by 35%, driven by domestic demand and favorable market conditions [21][23]. Summary by Sections 1. April Home Appliance Export Performance - Home appliance exports in April showed a quantity increase of 1.5% but a value decrease of 1.7%. Air conditioners, refrigerators, washing machines, and LCD TVs had varied performances with air conditioners and washing machines showing notable growth [11][12][14]. 2. Regional Export Trends - Southeast Asia and Africa led the growth in exports, while North America and Europe experienced significant declines. For instance, air conditioner exports to South America and the Middle East grew by 37% and 31% respectively [16][18]. 3. Production Insights - The report indicates that air conditioning production in June is expected to reach 20.75 million units, a 17% increase year-on-year, with domestic production rising by 35.4% [21][23]. 4. Market and Sector Tracking - The report tracks market performance, noting a slight decline in the Shanghai Composite Index but a 0.4% increase in the home appliance sector index. Key stocks showed varied performance, with notable gains in companies like Stone Technology and Aishida [24][27]. 5. Investment Recommendations - The report recommends focusing on domestic demand and subsidy-driven growth in the white goods sector, as well as opportunities in the black goods sector and small appliances [4][54].

4月已公布重点出口商品中，出口增速最高的是中间品和资本品，分别为8.5%、8.2%，显著高于消费品的出口增速-4.1%。 另外，5 月 6 日美国公布的贸易数据也显示，3 月美国继续从全球"抢进口"。 出口增速的压力将在 6-7 月开始显现。一是从美国企业下订单到商品出口存在 2 个月左右的时间差，4 月 PMI 新出口 订单大幅下滑 4.3 个百分点至 44.7%，创 2023 年以来新低，预计从 6 月初开始出口增速可能开始减弱。二是随着 90 天豁免期结束（4 月 9 日开始，到 7 月 9 日），出口的不确定性在升温，同时前期企业"抢进口"也透支了一部分需求。 三是美国经济下行压力逐渐显现导致的需求不足也会成为后续出口的核心拖累之一。 风险提示 美国关税政策来回波动巨大，中美之间贸易谈判不确定性高。 全球贸易前景不明确，美国与其他国家之间的贸易往来不确定性高。 关税贸易摩擦下，中国出口在后续或面临大幅下行压力，并对中国经济造成明显冲击。 敬请参阅最后一页特别声明 用使箱邮共公益兴华国司公限有理管产资险保益兴华国供仅告报此 4 月中国出口（以美元计价）同比增长 8.1%，表现出明显的"抢转口"特征。 扫 ...

- The quantitative credit strategy shows that the short-term sinking of urban investment bonds has defensive attributes, and the medium-to-long-term strategy provides protection space for the portfolio, resulting in excess returns of over 2bp last week. The short-term sinking strategy outperformed other strategies. Over the past four weeks, despite negative excess returns from financial debt-heavy portfolios last week, the broker-dealer bond strategy remained stable, with cumulative excess returns leading. The perpetual bond duration strategy lagged behind the short-term sinking strategy due to weekly drag[2][12][13] - The duration tracking of various bond types indicates that the transaction duration of urban investment bonds, industrial bonds, and secondary capital bonds is at historical highs. As of May 16, the weighted average transaction durations for urban investment bonds and industrial bonds were 2.21 years and 2.72 years, respectively, both at the 90th percentile level since March 2021. For commercial bank bonds, the weighted average transaction durations for secondary capital bonds, perpetual bonds, and general commercial bank bonds were 4.09 years, 3.52 years, and 2.21 years, respectively. Other financial bonds, such as securities company bonds, securities subordinated bonds, insurance company bonds, and leasing company bonds, had durations of 1.64 years, 2.33 years, 3.51 years, and 1.50 years, respectively[3][15][16] - The coupon asset heat map shows that as of May 19, the yields of non-financial, non-real estate industrial bonds and urban investment bonds generally declined compared to the previous week. Real estate bond yields also mainly declined, with public non-perpetual bonds of state-owned enterprises within 1 year and 1-2 years experiencing a drop of over 10bp. More than half of the financial bond yields declined, with leasing bonds performing better among financial bonds. Commercial bank bond yields showed differentiation across maturities, with yields of bonds within 1 year generally declining, while most bonds over 1 year experienced various adjustments. The yields of perpetual bonds within 3-5 years consistently declined[4][18][19][20] - The tracking of ultra-long credit bonds indicates that the long-term bond index turned downward. Due to continuous negative factors in the bond market, long-term interest rate bonds were the first to realize profits, with a decline of 0.97% for government bonds over 10 years. Ultra-long credit bonds followed the decline, but the drop was relatively mild, with the AA+ credit bond index over 10 years falling by 0.13%[5][22][23][24] - The supply and trading tracking of local government bonds shows a structural differentiation in the recent local bond market. The trading activity of short-to-medium-term bonds fluctuated significantly, with the turnover rate of bonds within 7 years decreasing week-on-week, possibly reflecting cautious short-term allocation. Bonds with maturities of 7-10 years remained stable due to interest rate fluctuations, while the activity of ultra-long-term bonds significantly improved. The weekly turnover rate of ultra-long-term bonds over 10 years returned to over 1%, with weekly transaction volume exceeding 350 billion yuan, indicating that institutional investors are increasing their allocation of long-duration assets, especially ultra-long-term local government bonds as duration management tools. The stepwise growth in transaction volume confirms the continuous improvement in market liquidity, but attention should be paid to potential market expectation differences behind turnover rate fluctuations[6][25][26][27] - Quantitative credit strategy, excess return values: urban investment short-term sinking strategy: 15bp, urban investment duration extension strategy: 10bp, urban investment barbell strategy: 5bp, secondary debt bullet strategy: -5bp, secondary debt sinking strategy: 0bp, secondary debt duration extension strategy: 5bp, commercial bank bond bullet strategy: -10bp, perpetual bond sinking strategy: 0bp, perpetual bond duration extension strategy: 5bp, broker-dealer bond sinking strategy: 20bp, broker-dealer bond duration extension strategy: 15bp[12][13] - Duration tracking, historical percentile values: urban investment bonds: 95.8%, industrial bonds: 93.9%, secondary capital bonds: 91.2%, perpetual bonds: 63.8%, general commercial bank bonds: 78.2%, securities company bonds: 49.5%, securities subordinated bonds: 58.7%, insurance company bonds: 78.4%, leasing company bonds: 93.5%[15][16] - Coupon asset heat map, weighted average yield values: urban investment bonds (private placement): 1 year: 2.01%, 1-2 years: 2.15%, 2-3 years: 2.40%, 3-5 years: 2.58%; urban investment bonds (public offering): 1 year: 1.91%, 1-2 years: 2.00%, 2-3 years: 2.20%, 3-5 years: 2.25%; non-financial, non-real estate industrial bonds (state-owned enterprises, private placement): 1 year: 2.31%, 1-2 years: 2.48%, 2-3 years: 2.69%, 3-5 years: 2.54%; non-financial, non-real estate industrial bonds (state-owned enterprises, public offering): 1 year: 1.86%, 1-2 years: 1.99%, 2-3 years: 2.14%, 3-5 years: 2.17%; non-financial, non-real estate industrial bonds (private enterprises, private placement): 1 year: 2.28%, 1-2 years: 3.95%, 2-3 years: 2.91%; non-financial, non-real estate industrial bonds (private enterprises, public offering): 1 year: 3.85%, 1-2 years: 2.46%, 2-3 years: 2.39%; real estate bonds (state-owned enterprises, private placement): 1 year: 2.22%, 1-2 years: 2.58%, 2-3 years: 2.47%, 3-5 years: 2.71%; real estate bonds (state-owned enterprises, public offering): 1 year: 1.83%, 1-2 years: 2.53%, 2-3 years: 2.48%, 3-5 years: 2.32%; leasing company bonds (private placement): 1 year: 2.25%, 1-2 years: 2.40%, 2-3 years: 2.48%; leasing company bonds (public offering): 1 year: 2.12%, 1-2 years: 2.29%, 2-3 years: 2.33%; commercial bank ordinary financial bonds (state-owned commercial banks): 1 year: 1.56%, 1-2 years: 1.65%, 2-3 years: 1.71%, 3-5 years: 1.79%; commercial bank ordinary financial bonds (joint-stock commercial banks): 1 year: 1.61%, 1-2 years: 1.71%, 2-3 years: 1.76%, 3-5 years: 1.84%; commercial bank ordinary financial bonds (city commercial banks): 1 year: 1.67%, 1-2 years: 1.76%, 2-3 years: 1.82%; commercial bank ordinary financial bonds (rural commercial banks): 1 year: 1.70%, 1-2 years: 1.77%, 2-3 years: 1.85%; bank capital supplement bonds (state-owned commercial banks): 1 year: 1.71%, 1-2 years: 1.78%, 2-3 years: 1.85%, 3-5 years: 1.96%; bank capital supplement bonds (joint-stock commercial banks): 1 year: 1.74%, 1-2 years: 1.84%, 2-3 years: 2.06%, 3-5 years: 2.11%; bank capital supplement bonds (city commercial banks): 1 year: 2.35%, 1-2 years: 2.13%, 2-3 years: 2.32%, 3-5 years: 2.34%; bank capital supplement bonds (rural commercial banks): 1 year: 1.87%, 1-2 years: 2.15%, 2-3 years: 2.39%, 3-5 years: 2.27%; securities company bonds (private placement): 1 year: 1.74%, 1-2 years: 1.85%, 2-3 years: 1.93%, 3-5 years: 2.07%; securities company bonds (public offering): 1 year: 1.65%, 1-2 years: 1.75%, 2-3 years: 1.85%, 3-5 years: 1.90%; securities company subordinated bonds (private placement): 1 year: 1.75%, 1-2 years: 1.83%, 2-3 years: 2.39%, 3-5 years: 2.52%; securities company subordinated bonds (public offering): 1 year: 1.74%, 1-2 years: 1.85%, 2-3 years: 2.00%, 3-5 years: 2.12%[18][19][20] - Ultra-long credit

Investment Rating - The report maintains a "Buy" rating for the company [2][5] Core Views - The company reported a revenue of 27.013 billion RMB for FY2025, a decrease of 6.69% year-on-year, and a net profit of 1.286 billion RMB, down 41.89% year-on-year. The company declared a dividend of 0.28 RMB, with a payout ratio of approximately 135% [2] - The decline in revenue is attributed to weak consumer demand and a reduction in foot traffic in offline stores. The company is focusing on efficient large-format stores while eliminating underperforming ones, resulting in a total of 5,020 stores at the end of FY25, a decrease of 1,124 stores year-on-year [3] - The company has seen a 14% year-on-year increase in average store revenue, with a membership base growing to 86 million, contributing 93.2% of in-store sales, of which repeat members account for 70% [3] - The gross margin for FY25 was 38.44%, down 3.31 percentage points, primarily due to declining sales and increased promotional activities. The net margin was 4.76%, a decrease of 2.88 percentage points [4] - The company expects to maintain stable performance in FY2026-2028, with projected EPS of 0.21, 0.24, and 0.28 RMB, and PE ratios of 14, 12, and 10 times respectively [5] Summary by Sections Performance Overview - FY2025 revenue was 27.013 billion RMB, down 6.69% year-on-year, with a net profit of 1.286 billion RMB, down 41.89% year-on-year. The company declared a dividend of 0.28 RMB, with a payout ratio of approximately 135% [2] Operational Analysis - Main brand revenue decreased by 6.1% to 23.311 billion RMB, while other brands fell by 9.9% to 3.505 billion RMB due to weak consumer demand. The company is optimizing its store network by focusing on high-efficiency large stores and reducing the number of low-efficiency stores [3] - The company has enhanced member engagement through diverse marketing activities, resulting in a membership increase of 5 million year-on-year [3] Financial Metrics - The gross margin for FY25 was 38.44%, down 3.31 percentage points, while the net margin was 4.76%, down 2.88 percentage points. The company’s cash flow from operating activities increased by 20% to 3.755 billion RMB, indicating a strong cash position [4] - The company anticipates a recovery in net profit margins in the coming years, with projected EPS growth [5]

Economic Growth Forecast - The GDP growth rate for Q2 is expected to be around 5.2%, with the first half of the year projected at approximately 5.3%[2] - Monthly GDP growth rates for April and May are estimated at 5.4% and 5.3%, respectively, aligning with demand-side predictions[2] Export and Trade Dynamics - Exports are anticipated to achieve a growth rate of 3%-5% in Q2, driven by "grabbing exports" and "grabbing trans-exports" despite high base effects[2][23] - The easing of trade frictions is expected to enhance export performance, making the real economic fundamentals more noteworthy in Q2[4] Consumer Spending Insights - Retail sales growth for the first four months of the year is at 4.7%, with "trade-in" consumption categories showing a 7.2% increase, contributing approximately 1.1 percentage points to overall retail growth[5] - The impact of "trade-in" policies is projected to support retail sales growth at around 4.5%-5% in Q2, with final consumption growth estimated at about 4.3%[20] Real Estate Market Trends - Real estate sales are facing downward pressure as the effects of the 924 policy diminish, with a 1-4 month cumulative decline in new housing sales area of -2.8% compared to -17.1% in the previous year[14] - The second-hand housing market showed a significant increase of 21.1% in transaction area from October 2024 to March 2025, but recent data indicates a cooling trend[14] Investment and Policy Implications - Fixed asset investment growth is expected to stabilize around 4%, supported by equipment updates and infrastructure projects, with manufacturing and infrastructure investment showing year-on-year increases of 8.8% and 10.9% respectively[23] - The overall economic stability in the first half of the year provides ample room for policy responses to external uncertainties, with sufficient flexibility for incremental policy adjustments in Q3[2][20]