Investment Rating - The report maintains a positive outlook on the copper foil and electronic cloth sectors within the PCB upstream materials industry, indicating potential investment opportunities in these areas [1][12]. Core Insights - The report emphasizes the high demand for high-end PCB materials, particularly RTF and HVLP copper foils, which are essential for high-frequency and high-speed circuit boards. The production of HVLP copper foil is challenging due to the need for low profile and high peel strength [1][12]. - The electronic cloth market is also highlighted, with advancements in technology, such as NVIDIA's potential new techniques, expected to drive demand for quartz cloth. The report notes the advantages of quartz cloth over low-dielectric electronic cloth in terms of dielectric constant and loss [2][13]. - The report identifies Keda Manufacturing as a leading player in the African building materials market, with significant growth in net profit driven by price optimization and new ceramic capacity. The company is well-positioned to benefit from local production and consumption in Africa [2][14]. Summary by Sections 1. Weekly Discussion - The report continues to explore the potential of PCB upstream new materials, particularly focusing on copper foil and electronic cloth. It notes the low domestic production rate of high-end copper foil and the significant upgrade potential in the supply chain [1][12]. 2. Cyclical Linkage - Cement prices have decreased to an average of 344 RMB/t, with a year-on-year drop of 46 RMB. The average utilization rate for concrete mixing stations is reported at 7.26% [3][15]. - The average price of float glass has increased slightly to 1211.96 RMB/ton, with a week-on-week rise of 0.58%. The report indicates a decrease in inventory days for production enterprises [3][15]. - The report suggests a cautious outlook for the glass fiber market, with prices for 2400tex alkali-free winding yarn averaging 3649 RMB/ton, reflecting a slight decline [3][15]. 3. National Subsidy Tracking - A new initiative in Yunnan Province offers subsidies for home improvement products aimed at elderly consumers, with a maximum subsidy of 15,000 RMB per household [4][16]. 4. Important Changes - Keda Manufacturing expects a net profit of 700-790 million RMB for the first half of 2025, representing a year-on-year increase of 54-74% [5][18]. - Huaxin Cement anticipates a net profit of 1.096-1.132 billion RMB for the same period, reflecting a 50-55% increase [5][18]. 5. Market Performance - The building materials index has shown a decline of 0.89% this week, with specific sectors like cement manufacturing and glass manufacturing experiencing varied performance [21][27]. 6. Building Material Price Changes - The report notes a continued decline in national cement prices, with a 1% decrease this week. The average utilization rate for cement enterprises is around 46% [33][33]. - The float glass market remains stable, with slight price increases observed in certain regions, while the overall supply-demand balance remains tight [45][46].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - The reading of the micro - trading thermometer this period rose 6 percentage points to 52%, with significant increases in some indicators and slight decreases in others [2][14]. - The proportion of indicators in the over - heated range increased to 35%, with changes in the intervals of several indicators [3][19]. - Only the average value of the matching percentile of price ratios declined, while different categories of indicators showed different trends [4][19]. 3. Summary by Related Catalogs 3.1. Micro - trading Thermometer Reading - The "Guojin Securities Fixed - income Bond Market Micro - trading Thermometer" rose 6 percentage points to 52%. Indicators with large increases in percentile values include fund - rural commercial bank buying volume, 30/10Y Treasury bond turnover rate, and allocation disk strength, while TL/T long - short ratio, market - wide turnover rate, stock - bond price ratio, institutional leverage, and listed company wealth management buying volume decreased slightly [2][14]. 3.2. Proportion of Indicators in the Over - heated Range - Among 20 micro - indicators, 7 (35%) were in the over - heated range, 6 (30%) in the neutral range, and 7 (35%) in the cold range. 30/10Y Treasury bond turnover and fund - rural commercial bank buying volume moved from the cold to the over - heated range, allocation disk strength from the neutral to the over - heated range, TL/T long - short ratio from the over - heated to the neutral range, and stock - bond price ratio from the neutral to the cold range [3][19]. 3.3. Sub - categories of Indicators 3.3.1. Trading Heat - The proportion of indicators in the over - heated range among trading heat indicators decreased to 50%, in the neutral range increased to 33%, and in the cold range decreased to 17%. The 30/10Y Treasury bond turnover rate percentile rose 55 percentage points to the over - heated range, while the TL/T long - short ratio percentile decreased 22 percentage points to the neutral range [5][22]. 3.3.2. Institutional Behavior - The proportion of indicators in the over - heated range among institutional behavior indicators increased to 50%, in the neutral range decreased to 25%, and in the cold range decreased to 25%. Allocation disk strength percentile rose 18 percentage points to 76% and entered the over - heated range, and fund - rural commercial bank buying volume percentile rose 67 percentage points to the over - heated range [6][24]. 3.3.3. Policy Spread - The 3 - year Treasury bond yield declined slightly, and the policy spread narrowed from 2bp to 0bp, with the percentile rising 6 percentage points to 48% (neutral range). Credit spread, agricultural development - state - owned development spread, and IRS - SHIBOR 3M spread narrowed, and their average spread percentile rose 7 percentage points to 50% (neutral range) [7][30]. 3.3.4. Stock - Bond Price Ratio - The proportion of price - ratio indicators in the cold range increased to 100%. Only the stock - bond price ratio percentile decreased 15 percentage points to the cold range, while the commodity price ratio percentile rose 6 percentage points to 15%, and the real - estate price ratio changed little [8][33].

Investment Rating - The report does not explicitly state an investment rating for the industry or specific companies [2]. Core Insights - The SW Machinery Equipment Index increased by 2.91% over the last week, ranking 4th among 31 primary industry categories, while the Shanghai and Shenzhen 300 Index rose by 1.09% [3][13]. - Year-to-date, the SW Machinery Equipment Index has risen by 13.53%, ranking 6th among the 31 primary industry categories, compared to a 3.14% increase in the Shanghai and Shenzhen 300 Index [3][16]. - The report highlights a positive outlook for Yingliu Co., which is the sole supplier of gas turbine blades for Siemens Energy in China, indicating a significant increase in orders [5][24]. - Yushu Technology has initiated its IPO process, which is expected to accelerate its robotics business development [5][24]. - The first commercial linear field reversed magnetic fusion device in China has achieved plasma ignition, indicating a breakthrough in controllable nuclear fusion commercialization [5][25]. - The report identifies various industry segments with differing trends: General Machinery is under pressure, Engineering Machinery is steadily improving, Shipbuilding is stabilizing, Oilfield Equipment is bottoming out, Railway Equipment is steadily improving, and Gas Turbines are on an upward trend [5]. Summary by Sections Market Review - The SW Machinery Equipment Index rose by 2.91% last week, ranking 4th among 31 primary industry categories [3][13]. - Year-to-date performance shows a 13.53% increase in the SW Machinery Equipment Index, ranking 6th [3][16]. Key Data Tracking General Machinery - The General Machinery sector is under pressure, with a PMI of 49.7% in June, indicating contraction [26]. - Industrial vehicle sales from January to May showed a 9.33% year-on-year increase, with domestic sales up by 6.66% [26]. Engineering Machinery - The Engineering Machinery sector is showing steady improvement, with excavator sales in June reaching 18,804 units, a 13.3% year-on-year increase [34]. Railway Equipment - The Railway Equipment sector is experiencing steady growth, with fixed asset investment maintaining around 6% growth [44]. Shipbuilding - The Shipbuilding sector is stabilizing, with the global new ship price index showing signs of improvement [45]. Oilfield Equipment - The Oilfield Equipment sector is stabilizing at the bottom, with global rig counts reaching 1,600 units [47]. Industrial Gases - The Industrial Gases sector is expected to perform well in Q3 due to previous maintenance activities [52]. Gas Turbines - The Gas Turbine sector is on an upward trend, with significant order growth reported for GEV [54][56].

Investment Rating - The report suggests focusing on sectors driven by domestic AI development such as servers and IDC, as well as sectors benefiting from overseas AI development like servers and optical modules [4]. Core Insights - Nvidia's H20 sales resumption in China has positively impacted the data center sector, leading to a surge in related stocks, indicating improved market sentiment regarding computing power supply [1][2]. - ASML and TSMC reported better-than-expected Q2 2025 earnings, driven by strong AI demand, with ASML's net sales reaching €7.7 billion, up 23.2% year-on-year, and TSMC's revenue at NT$933.8 billion, up 38.6% year-on-year [1][59]. - The release of new AI models is accelerating technological iterations, with increased demand for inference and agent computing power [1]. - Companies like Zhongji Xuchuang and Xinyi Sheng have reported Q2 2025 earnings that exceeded market expectations, reflecting positive trends in the downstream industry [1][9]. Summary by Sections Server Sector - The server index increased by 4.59% this week and 3.96% this month, driven by accelerated AI computing investments from North American cloud providers like Google and Meta, which plan to invest $25 billion and hundreds of billions respectively in AI infrastructure [2][6]. - TSMC's optimistic forecast for 2025, expecting a 30% year-on-year sales growth, further validates strong downstream AI demand [6][59]. Optical Module Sector - The optical module index rose by 9.17% this week and 10.33% this month, with North American cloud providers driving demand for 800G optical modules [9]. - Zhongji Xuchuang and Xinyi Sheng are key suppliers in this sector, with projected net profits showing significant year-on-year growth [9]. IDC Sector - The IDC index increased by 5.28% this week and 4.31% this month, with the resumption of H20 supply alleviating previous chip shortages, indicating a potential turning point for the AIDC industry [12]. - The report anticipates continued growth in capital expenditures from domestic internet giants in the second half of 2025, supporting the domestic computing power chain [12].

Investment Rating - The report indicates a positive outlook for the sports apparel industry, with expectations for continued operational improvement in the second half of 2025 [1][15]. Core Insights - Leading companies in the sports apparel sector demonstrated strong operational resilience in Q2 2025, with Anta Sports and FILA showing steady revenue growth despite market fluctuations [1][11]. - The report highlights the successful multi-brand strategy of Anta Sports, with significant contributions from new brands like Descente and MAIA, while Li Ning is undergoing channel and product adjustments [1][15]. - The overall health of inventory levels is maintained, with a healthy inventory-to-sales ratio of 4-5 months, and companies are optimistic about improving operational data in H2 2025 [1][15]. Summary by Sections Sports Apparel Sector - In Q2 2025, leading companies like Anta Sports and FILA maintained steady revenue growth, while Li Ning experienced low single-digit growth excluding its young brand [1][11]. - Anta's multi-brand matrix continues to perform well, with significant growth from new brands and a focus on professional sports segments [1][15]. - The report notes that companies are leveraging multi-brand operations and event marketing to drive growth, with running shoes seeing higher revenue growth compared to other categories [1][15]. Performance of Ruoyuchen - Ruoyuchen's H1 2025 performance is highlighted, with expected net profit growth of 61.81% to 100.33% year-on-year, driven by its proprietary brand strategy and effective brand management [2][16]. - The launch of the new health product VitaOcean is anticipated to open new growth avenues for the company [2][16]. Industry Data Tracking - June retail sales for apparel showed a year-on-year growth of 1.9%, but a month-on-month decline due to factors like the early 618 shopping festival and adverse weather conditions affecting foot traffic [3][18]. - The report tracks stable raw material prices, with cotton and other materials showing minor fluctuations, indicating a stable supply chain environment [3][23]. Investment Recommendations - The report recommends several companies based on their market positioning and growth potential, including Anta Sports, Li Ning, and Ruoyuchen, highlighting their strategies to adapt to market changes and consumer trends [3][35]. - In the beauty and personal care sector, companies like Juzhibio and Jinbo Biological are recommended for their strong data resilience and upcoming product launches [3][35]. - The gold and jewelry sector is also highlighted, with recommendations for brands like Laopu Gold due to the favorable market conditions driven by rising gold prices [3][35].

Group 1 - The current market is experiencing the end of the mid-year earnings forecast trend, with high forecast growth rates in certain industries leading to better market performance and upward adjustments in profit predictions [3][9][13] - Historical data indicates that the market's focus on mid-year earnings typically increases from June, peaking in early July before declining, suggesting a shift in market direction is imminent [3][9][13] Group 2 - The impact of tariffs on inflation is becoming evident in the U.S., with high dependency sectors seeing significant CPI increases, although the full effects of tariffs may not yet be realized [4][17][19] - Inventory levels are acting as a buffer for price transmission, with wholesalers being the main force behind inventory replenishment in the U.S. this year [4][17][19] - Approximately 75% of U.S. companies are likely to pass on increased costs due to tariffs to consumers, indicating potential inflationary pressures [20][23][28] Group 3 - In China, the GDP growth for Q2 2025 was 5.2%, slightly above expectations, but concerns about demand weakness persist, particularly in consumption and investment [4][39][41] - The export structure is changing, with a notable increase in the export growth rates of capital goods and intermediate goods, while some consumer goods are seeing a decline [39][40][41] - The differentiation between large and small enterprises is intensifying, with larger firms improving their market concentration and profitability outlook [41][42] Group 4 - The report suggests that despite short-term economic disturbances, the path for return on equity (ROE) in China is becoming clearer, driven by anti-involution policies and a stronger manufacturing sector [4][41][46] - Recommendations for asset allocation include focusing on upstream resource products and capital goods that benefit from both domestic policies and international demand [4][46]

Investment Rating - The report suggests focusing on power generation assets in regions with tight supply-demand balance and favorable competition dynamics, particularly recommending companies like Anhui Energy and Huadian International in the thermal power sector, and Longjiang Electric in hydropower [4]. Core Insights - The report highlights the increasing participation of various market entities in China's electricity market, with a projected 8.9% year-on-year growth in the number of market participants to 816,000 by 2024. The market transaction volume is expected to reach 6.18 trillion kWh, a 9.0% increase from the previous year [75]. - It emphasizes the need for effective investment in renewable energy resources and the construction of major projects in nuclear power, large-scale bases, and offshore wind power [76]. - The report also discusses the effective capacity coefficients for wind and solar power in Gansu, which are set at 7% and 1% respectively, drawing parallels with the UK's capacity market [6][38]. Summary by Sections Market Review - The Shanghai Composite Index rose by 1.09% and the ChiNext Index increased by 2.36% during the week of July 14-18, with the carbon neutrality sector up by 3.52% and the environmental sector up by 3.07% [1][12]. Industry News - The National Energy Administration released the 2024 China Electricity Market Development Report, indicating a steady increase in market participation and a significant rise in market transaction volumes [75]. - The State Power Investment Corporation emphasized the importance of expanding effective investments and enhancing the acquisition of renewable energy resources [76]. Investment Recommendations - The report recommends focusing on thermal power companies in regions with favorable supply-demand conditions, hydropower leaders like Yangtze Power, and nuclear power companies like China National Nuclear Power [4]. Industry Data Tracking - The report tracks coal prices, noting that the European ARA coal price was $107.10 per ton, a decrease of 0.74%, while the Newcastle coal price rose by 1.11% to $109.00 per ton [56].

Investment Rating - The report suggests a positive outlook for the AI PCB industry chain, indicating it is in an upward phase of prosperity, with attractive valuations for leading companies in the sector [1][2][3] Core Insights - The AI PCB industry is expected to see a correction in market expectations as leading companies report better-than-expected performance, despite recent stock price increases [1][2] - The report emphasizes the importance of monitoring the "anti-involution" trend, highlighting recent government actions and discussions that may impact various industries, including the automotive sector [1][2] - The chemical sector is currently at a stage where it is advisable to increase allocations, particularly in leading companies that are at the bottom of the cycle in terms of inventory, valuation, and expectations [1][3] Summary by Sections Market Review - The chemical market has shown strong performance, with the SW Chemical Index rising by 1.77%, outperforming the CSI 300 Index by 0.68% [2][11] - Key events include the suspension of certain production lines by Korean companies and price increases in TDI due to supply disruptions [2][4] Recent Views from the Chemical Team - The report recommends gradually increasing positions in the sector, focusing on technology materials and price-increasing products like nitrocellulose and glyphosate [3][28] Key Chemical Product Price Changes - The report details significant price movements in various chemical products, with notable increases in TDI prices and stable prices in other segments [2][29][34] Important Industry Information - The report highlights major events affecting the industry, including production suspensions and price adjustments due to supply chain disruptions [4][28]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% within the next 6-12 months [4][12]. Core Insights - The company is advancing its global leadership with the innovative dual-target antibody Ivoris, which is undergoing pivotal Phase 3 clinical trials for first-line treatment of advanced pMMR/MSS mCRC [2][3]. - The company is entering an accelerated commercialization phase, with expected sales growth from the inclusion of Ivoris and Cardunili in national health insurance by 2024 [4]. - The company has a rich pipeline with over 50 projects in development, including differentiated ADCs and various therapeutic areas such as oncology, metabolism, and autoimmune diseases [4]. Financial Projections - Revenue forecasts for 2025 and 2026 have been adjusted downwards by 15% and 16% to 3.6 billion and 5.4 billion RMB, respectively. The net profit for the same years is projected to be -96 million and 426 million RMB [4][9]. - The company anticipates revenues of 7.5 billion RMB and a net profit of 1.3 billion RMB by 2027 [4][9]. - The projected revenue growth rates are 68.65% for 2025 and 49.36% for 2026, with a significant recovery expected in net profit growth by 2027 [9][11].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong expectation for future growth [4]. Core Insights - The company reported Q2 2025 revenue of $30.07 billion, a year-on-year increase of 44.4% and a quarter-on-quarter increase of 17.8%. The gross margin was 58.6%, up 5.4 percentage points year-on-year but down 0.2 percentage points quarter-on-quarter. Net profit reached $12.8 billion, reflecting a year-on-year increase of 60.7% and a quarter-on-quarter increase of 10.2% [2]. - The company has raised its full-year revenue growth guidance to approximately 30%, driven primarily by demand for advanced processes. In Q2 2025, revenue from N3, N5, and N7 processes accounted for 24%, 36%, and 14% of total wafer revenue, respectively, totaling 74% [3]. - The company is expected to benefit significantly from the growing demand for AI chips, with projections for net profits of $49.686 billion, $60.379 billion, and $66.768 billion for the years 2025 to 2027, respectively [4]. Summary by Sections Performance Review - In Q2 2025, the company achieved revenue of $30.07 billion, with a gross margin of 58.6% and net profit of $12.8 billion [2]. Operational Analysis - The decline in gross margin is attributed to the appreciation of the New Taiwan Dollar (TWD), which impacts revenue when converted from USD. A 1% appreciation in TWD results in a 1% revenue loss and a 40 basis points loss in gross margin. In Q2 2025, TWD appreciated by 4.4%, leading to a 180 basis points decline in gross margin, with further expected appreciation causing an additional 260 basis points loss [3]. - The company anticipates the first-generation N2 process to enter mass production in H2 2025, with subsequent processes expected in 2026 and 2028 [3]. Profit Forecast, Valuation, and Rating - The company is positioned as a leader in the wafer foundry industry, with a competitive edge in advanced processes, expected to benefit from the rise in AI chip demand. The projected net profits for 2025, 2026, and 2027 are $49.686 billion, $60.379 billion, and $66.768 billion, respectively [4].