Investment Rating - The report maintains a positive outlook on the African building materials sector and local manufacturing leader Keda Manufacturing, particularly following the ignition of Keda's base in Côte d'Ivoire in June [1][13]. Core Insights - The Kenyan government has implemented a tiered tax on imported building materials, including a 3% export promotion tax on ceramic tiles and sanitary ware, aimed at reducing import dependency and fostering local manufacturing [1][13]. - The report emphasizes the importance of local production and consumption integration, highlighting Keda Manufacturing's efforts to establish local production in multiple African countries [1][13]. - The report identifies potential investment opportunities in the PCB upstream new materials sector, particularly in electronic cloth and copper foil, driven by high demand in AI applications [2][14]. - The waterproofing industry is experiencing frequent price increases, indicating a consensus among leading companies to curb malicious competition and stabilize prices [3][15]. - The cement sector is undergoing capacity reduction efforts, with the China Cement Association advocating for a unified approach to actual and registered production capacities [3][15]. Summary by Sections Weekly Discussion - Keda Manufacturing is recognized as a leader in local production within Africa, with recent developments in Côte d'Ivoire and supportive government policies in Kenya [1][13]. Cycle Interaction - Cement prices have shown a slight decline, with an average price of 347 RMB/t, down 46 RMB year-on-year, while glass prices have increased slightly to 1204.97 RMB/t [4][16]. - The report notes a stable demand for glass and fiberglass, with the latter maintaining a price of 3669 RMB/t [4][16][61]. National Subsidy Tracking - The report highlights government initiatives to boost consumption, including subsidies for building materials, which may benefit companies like Sangor and North New Materials [5][17]. Important Changes - Several companies, including Zhongcai Technology and China Jushi, have announced significant profit increases for the first half of 2025, indicating strong performance in the building materials sector [6][21].

Investment Rating - The report suggests a focus on leading domestic generative large model companies such as iFLYTEK, and highlights potential in AI hardware applications with recommendations for companies like Yingshi Network, Hongsoft Technology, and Hesai [2] Core Insights - The report emphasizes that the AI industry is currently in a relatively chaotic fundamental period, with some high-frequency data showing resilience, while investor expectations remain low. The willingness to use AI products is increasing, but payment capabilities are still limited, necessitating further breakthroughs in large models [11][12] - It identifies high-growth sectors for 2025, including AI computing power and lidar, while noting that AI applications are accelerating upward. Stable growth is expected in software outsourcing, financial IT, quantum computing, data elements, EDA, and overseas expansion [11][12] Summary by Sections Industry Perspective - The report discusses the launch of Tencent's 3D generative model Hunyuan3D-PolyGen, which can generate complex geometric models with thousands of faces, and highlights the advancements of Musk's Grok 4 model, which has shown significant improvements in training efficiency [11] - It notes that the computer industry is expected to perform better in the second half of the year due to base effects, new technology/product launches, and policy implementations [11] Subsector Insights - The report categorizes the computer industry into various subsectors with their respective growth outlooks: - High growth maintained: AI computing power, lidar - Accelerating growth: AI applications - Stable growth: Software outsourcing, financial IT, quantum computing, data elements, EDA, overseas expansion, and domestic innovation [10][12] - Turning points: Education IT, cybersecurity, enterprise services - Stabilizing: Smart transportation, government IT, security, construction real estate IT - Slightly pressured: Industrial software, medical IT [10][12] Market Performance Review - From July 7 to July 11, 2025, the computer industry index (Shenwan) rose by 3.22%, outperforming the CSI 300 index by 2.40 percentage points, ranking 6th among 31 Shenwan first-level industry indices [13] Upcoming Key Events - The report highlights upcoming events such as the second AI glasses industry innovation application summit and the 2025 World Artificial Intelligence Conference, suggesting that investors pay attention to related industry chain opportunities [25][26]

Report Summary Core View - Among AA-rated urban investment bonds (subject rating) with a high discount margin, "24 Jinhua Rongsheng MTN005" has the largest valuation price deviation. Among the top 50 bonds with the largest net price decline, "24 CCCC MTN003B" has the largest valuation price deviation. Among the top 50 bonds with the largest net price increase, "24 CRCC K2" has the largest valuation price deviation. Among the top 50 Tier 2 and perpetual bonds with the largest net price increase, "25 China Minsheng Bank Tier 2 Capital Bond 01" has the largest valuation price deviation [2]. Summary by Directory Chart 1: AA-rated Urban Investment Bonds with High Discount Margin - The table lists information such as remaining term, valuation price, valuation net price, valuation yield, etc., for multiple AA-rated urban investment bonds. "24 Jinhua Rongsheng MTN005" has a remaining term of 2.41 years, a valuation price deviation of -0.22%, and a valuation net price of 100.58 yuan [4]. Chart 2: Top 50 Bonds with the Largest Net Price Decline - The table shows details of 50 bonds with large net price declines, including remaining term, valuation price deviation, valuation net price, etc. "24 CCCC MTN003B" has a remaining term of 13.95 years, a valuation price deviation of -0.30%, and a valuation net price of 105.41 yuan [6]. Chart 3: Top 50 Bonds with the Largest Net Price Increase - This table presents information on 50 bonds with large net price increases. "24 CRCC K2" has a remaining term of 29.05 years, a valuation price deviation of 0.76%, and a valuation net price of 109.35 yuan [9]. Chart 4: Top 50 Tier 2 and Perpetual Bonds with the Largest Net Price Increase - The table lists Tier 2 and perpetual bonds with large net price increases. "25 China Minsheng Bank Tier 2 Capital Bond 01" has a remaining term of 4.80 years, a valuation price deviation of 0.25%, and a valuation net price of 101.13 yuan [13].

1. Report's Investment Rating for the Industry - Not provided in the given content 2. Core View of the Report - The weighted average trading durations of mainstream bond varieties are approaching their peaks again. As of July 11, the weighted trading durations of urban investment bonds and industrial bonds are at 2.44 years and 3.77 years respectively, both at over 90% quantile levels since March 2021. Among commercial bank bonds, the weighted average trading durations of secondary capital bonds, bank perpetual bonds, and general commercial financial bonds are 4.16 years, 3.74 years, and 2.95 years respectively, with bank perpetual bonds at a relatively low historical level. Among other financial bonds, the durations of securities company bonds, securities subordinated bonds, insurance company bonds, and leasing company bonds are 1.43 years, 1.83 years, 3.56 years, and 1.20 years respectively, with securities company bonds and securities subordinated bonds at relatively low historical quantiles and insurance company bonds at a relatively high historical quantile [10]. - The coupon duration congestion index declined and then slightly increased. After reaching its highest value in March 2024, it dropped and this week decreased slightly compared to last week, currently at the 17.8% level since March 2021 [12]. 3. Summary by Directory 3.1 All - Variety Duration Overview - As of July 11, the weighted trading durations of urban investment bonds and industrial bonds are 2.44 years and 3.77 years respectively, both at over 90% quantile levels since March 2021. Among commercial bank bonds, the weighted average trading durations of secondary capital bonds, bank perpetual bonds, and general commercial financial bonds are 4.16 years, 3.74 years, and 2.95 years respectively. Among other financial bonds, the durations of securities company bonds, securities subordinated bonds, insurance company bonds, and leasing company bonds are 1.43 years, 1.83 years, 3.56 years, and 1.20 years respectively [2][10]. 3.2 Variety Microscope 3.2.1 Urban Investment Bonds - The weighted average trading duration hovers around 2.44 years. The durations of urban investment bonds in Guangdong prefecture - level cities and Hebei provincial - level are over 5 years, while the trading duration of Shanxi prefecture - level urban investment bonds has shortened to around 1.35 years. The historical quantiles of the durations of urban investment bonds in regions such as Jiangsu prefecture - level cities, Jiangsu district - level, Zhejiang prefecture - level cities, and Chongqing district - level have exceeded 90%. The durations of Hunan provincial - level and Henan prefecture - level urban investment bonds are approaching their highest levels since 2021 [3][16]. 3.2.2 Industrial Bonds - The weighted average trading duration has slightly lengthened compared to last week, generally around 3.77 years. The trading duration of the real - estate industry has shortened to 1.78 years, while that of the public utilities industry has lengthened to 4.62 years. The trading duration of the real - estate industry is at a relatively low historical quantile, while industries such as public utilities, transportation, pharmaceutical biology, commercial retail, and building materials are all at over 90% historical quantiles [3][21]. 3.2.3 Commercial Bank Bonds - The duration of general commercial financial bonds has shortened to 2.95 years, at the 99.1% historical quantile, higher than the level of the same period last year. The duration of secondary capital bonds has shortened to 4.16 years, at the 92.4% historical quantile, higher than the level of the same period last year. The duration of bank perpetual bonds has lengthened to 3.74 years, at the 68.3% historical quantile, higher than the level of the same period last year [3][23]. 3.2.4 Other Financial Bonds - In terms of the weighted average trading duration, insurance company bonds > securities subordinated bonds > securities company bonds > leasing company bonds, at 79%, 23%, 16%, and 68% historical quantiles respectively. The durations of insurance company bonds and securities subordinated bonds have slightly lengthened compared to last week [4][25].

Investment Rating - The report indicates a positive investment outlook for the real estate sector, suggesting a "buy" recommendation for stocks in this industry due to recent price recoveries and potential policy support [7]. Core Insights - The A-share real estate sector saw a significant increase of +6.1% in the week of July 5-11, outperforming other sectors, while the Hong Kong real estate sector rose by +0.6% [3][17]. - There is an expectation for new stimulus policies to be introduced, particularly in light of the upcoming Central Urban Work Conference, which historically has influenced urban development strategies and real estate policies [5][13]. - The trend of Real World Asset (RWA) tokenization in the real estate sector is emerging, enhancing liquidity and providing new financing options for real estate companies [6][15]. Summary by Sections Market Performance - The A-share real estate sector ranked first among all sectors with a weekly increase of +6.1%, while the Hong Kong real estate sector ranked sixth with a +0.6% increase [3][17]. - The property service index in Hong Kong increased by +1%, indicating a stable performance relative to other indices [25]. Land Market - In the week of July 5-11, the total area of residential land sold across 300 cities was 445 million square meters, reflecting a week-on-week decrease of 48% and a year-on-year decrease of 24% [26]. - The average premium rate for land transactions was reported at 8%, with a cumulative area of 19,016 million square meters sold since the beginning of 2025, showing a year-on-year decline of 3.8% [26][29]. New Housing Sales - In 47 cities, new housing sales totaled 261 million square meters, with a week-on-week decrease of 49% and a year-on-year decrease of 14% [33]. - Sales in first-tier cities decreased by 45% week-on-week and 17% year-on-year, while second-tier cities saw a 53% week-on-week decrease and a 10% year-on-year decrease [33]. Second-Hand Housing Sales - The total area of second-hand housing sold in 22 cities was 229 million square meters, with a week-on-week decrease of 4% and a year-on-year decrease of 2% [41]. - First-tier cities experienced a 13% week-on-week decrease and a 6% year-on-year decrease, while second-tier cities saw a 2% increase week-on-week but an 8% decrease year-on-year [41]. Policy Expectations - The anticipation of new policies is growing due to recent declines in real estate data, with expectations for the Central Urban Work Conference to guide future policy directions [5][13]. - Historical insights from previous conferences indicate a focus on urban development and potential support for the real estate sector [5][13]. RWA Tokenization - The report highlights the development of RWA tokenization in real estate, which allows for the division of property ownership into tradable tokens, thereby increasing liquidity and providing new investment opportunities [6][15].

Investment Rating - The report indicates a positive outlook for the copper and aluminum industries, with copper showing a stable upward trend and aluminum stabilizing at the bottom [14][15][16]. Core Insights - The copper market is experiencing a slight price decline, with LME copper down 1.92% to $9,663.00 per ton, while domestic copper inventory has increased slightly [15]. - The aluminum market shows a minor price increase, with LME aluminum up 0.17% to $2,602.00 per ton, and a decrease in domestic electrolytic aluminum ingot inventory [16]. - Gold prices have increased by 0.71% to $3,370.30 per ounce, driven by geopolitical tensions and increased demand for safe-haven assets [17]. - The rare earth sector is expected to see price increases due to tightening supply and rising demand, with strategic government actions enhancing the sector's outlook [39]. - The antimony market is stabilizing, with expectations of price recovery supported by reduced domestic production and increased demand from new regulations [40]. - Molybdenum prices are rising, supported by low inventory levels and strong demand from the steel industry [41]. - Lithium prices have shown a mixed trend, with carbonate prices increasing while hydroxide prices have slightly decreased [44]. Summary by Sections 1. Overview of Bulk and Precious Metals Market - Copper shows a robust upward trend, while aluminum is stabilizing at lower levels. Precious metals are accelerating due to fiscal expansion policies [14]. 2. Bulk and Precious Metals Fundamentals Update 2.1 Copper - LME copper price decreased by 1.92% to $9,663.00 per ton, with slight increases in domestic inventory and production rates expected to rise [15]. 2.2 Aluminum - LME aluminum price increased by 0.17% to $2,602.00 per ton, with a decrease in domestic inventory [16]. 2.3 Precious Metals - Gold prices increased by 0.71% to $3,370.30 per ounce, influenced by geopolitical tensions [17]. 3. Overview of Minor Metals and Rare Earths Market - The rare earth sector is expected to benefit from supply constraints and increasing demand, with government actions enhancing market conditions [39]. 4. Minor Metals and Rare Earths Fundamentals Update 4.1 Rare Earths - Prices for rare earth elements are expected to rise due to tightening supply and strategic government actions [39]. 4.2 Antimony - Antimony prices are stabilizing, with expectations of recovery supported by reduced production and new regulations [40]. 4.3 Molybdenum - Molybdenum prices are increasing due to low inventory levels and strong demand from the steel industry [41]. 4.4 Lithium - Lithium carbonate prices increased by 2.43% to 63,200 CNY per ton, while hydroxide prices decreased slightly [44].

Investment Rating - The report maintains a positive outlook on the AI-PCB industry chain, indicating strong demand and growth potential [1][4]. Core Insights - The release of the Grok-4 series model by xAI is expected to drive demand in the AI-PCB sector, with significant increases in computational resources and capabilities compared to previous models [1]. - TSMC reported a revenue of NT$263.79 billion in June, a year-on-year increase of 26.9%, indicating robust AI demand [1]. - The report highlights the anticipated rapid shipment of GB200 and GB300 products in the second half of the year, with strong orders from multiple AI-PCB companies [1][4]. - The semiconductor industry is experiencing a shift towards domestic production and self-sufficiency due to geopolitical factors and export controls [24]. Summary by Sections 1. Industry Overview - The AI-PCB industry is witnessing a demand resonance, with many companies experiencing strong orders and full production capacity [4]. - The report emphasizes the importance of focusing on performance growth in the first half of the year, particularly in AI-PCB and core computing hardware sectors [4]. 2. Segment Insights 2.1 Consumer Electronics - The launch of Samsung's Galaxy Z Fold7 is noted, with a recommendation to focus on the Apple supply chain due to favorable tariff conditions [5][6]. 2.2 PCB - The PCB industry is maintaining a high level of prosperity, driven by demand from automotive and industrial control sectors, alongside AI growth [7]. 2.3 Components - The report indicates a continued upward trend in the component sector, with AI applications driving demand for higher specifications in electronic components [19]. 2.4 IC Design - The storage segment is expected to see price increases due to supply constraints and rising demand from cloud computing and consumer electronics [21]. 2.5 Semiconductor Equipment and Materials - The report highlights the ongoing trend of domestic substitution in the semiconductor equipment sector, with a focus on advanced packaging and HBM production [24][27]. 3. Key Companies - Companies such as Huadian, North Huachuang, and Jiangfeng Electronics are highlighted for their strong growth prospects in the AI and semiconductor sectors [33][34][37]. - The report suggests that these companies are well-positioned to benefit from the ongoing trends in AI and domestic production [34][36].

Investment Rating - The report suggests a focus on undervalued leaders in the shipbuilding sector, particularly China Shipbuilding, and highlights potential investment opportunities in industrial gases and engineering machinery [3][9]. Core Insights - The global new ship price index showed a slight increase of 0.22% in June 2025, indicating a marginal improvement in industry sentiment [3][22]. - China Shipbuilding's H1 2025 net profit is projected to be between 2.8 billion to 3.1 billion yuan, reflecting a year-on-year growth of 98.25% to 119.49%, showcasing strong performance and capacity for profit release [3][22]. - Industrial gas prices have returned to positive year-on-year growth, driven by structural demand improvements and low inventory levels, with a significant increase in pipeline gas revenue expected for Hangzhou Oxygen [3][22]. - The engineering machinery sector is experiencing a robust upward trend, with excavator sales in June 2025 reaching 18,804 units, a year-on-year increase of 13.3% [3][36]. Summary by Sections General Machinery - The general machinery sector continues to face pressure, with the manufacturing PMI at 49.7%, indicating contraction [24]. Engineering Machinery - The engineering machinery sector shows resilience, with domestic excavator sales increasing by 6.2% and exports by 19.3% in June 2025 [3][36]. Shipbuilding - The shipbuilding sector is witnessing a slowdown in decline, with the new ship price index indicating a recovery trend [3][44]. Oilfield Equipment - The oilfield equipment sector is stabilizing at the bottom, with global rig counts rising to over 1,600 units, reflecting a recovery in demand [3][47]. Industrial Gases - The industrial gases sector is expected to perform well in Q3 2025, benefiting from previous maintenance and low base effects [3][55]. Gas Turbines - The gas turbine industry is on a steady upward trajectory, with significant order growth reported for leading companies [3][57].

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 [4]. Core Insights - The report highlights the performance of various sectors, with the carbon neutrality sector rising by 3.52% and the environmental protection sector increasing by 3.07% during the week [12]. - It emphasizes the importance of market dynamics and regulatory changes, such as the approval of the cross-grid electricity trading mechanism by the National Development and Reform Commission and the National Energy Administration [75]. Summary by Sections Market Review - The Shanghai Composite Index rose by 1.09% and the ChiNext Index increased by 2.36% during the week [12]. - The thermal power sector is recommended for investment due to its potential for asset value reassessment in regions with tight electricity supply [4]. Industry News - The report discusses the recent regulatory developments aimed at enhancing the electricity market's efficiency and interconnectivity, including the implementation of a market mechanism for cross-grid electricity trading [75]. - It also notes the ongoing reforms in the renewable energy sector, particularly in Hainan Province, to correct market interventions and ensure fair pricing for new energy projects [75]. Investment Recommendations - For thermal power, the report recommends Anhui Energy and Huadian International due to their strategic positioning in competitive markets [4]. - In the hydropower sector, it suggests focusing on Yangtze Power, while for nuclear power, China National Nuclear Power is highlighted as a key player [4]. - In the renewable energy segment, Longyuan Power is identified as a leading wind power operator worth monitoring [4].

Investment Rating - The report maintains a "Buy" rating for the company, with expected profits for 2025, 2026, and 2027 projected at 46.1 billion, 58.5 billion, and 73.3 billion RMB respectively, reflecting year-on-year growth rates of 39%, 27%, and 25% [4]. Core Insights - The company is expected to achieve revenue of 106.3-108.4 billion RMB in the first half of 2025, representing a year-on-year increase of 35.0% to 37.7%. The net profit attributable to shareholders is projected to be 23.1-24.5 billion RMB, with a year-on-year growth of 33.5% to 41.6% [2]. - The second quarter of 2025 is anticipated to see revenue of 57.8-59.9 billion RMB, a year-on-year increase of 31.7% to 36.5%, and a net profit of 13.3-14.7 billion RMB, reflecting a year-on-year growth of 24.6% to 37.8% [2]. - The company is focusing on diversifying its product offerings and expanding its market presence, with strong growth expected from its core beverage categories and new product lines [3]. Summary by Sections Revenue and Profit Forecast - The company is projected to achieve significant revenue growth, with estimates of 11.263 billion RMB in 2023, 15.839 billion RMB in 2024, and 21.132 billion RMB in 2025, reflecting growth rates of 32.42%, 40.63%, and 33.42% respectively [7]. - The net profit attributable to shareholders is expected to grow from 2.040 billion RMB in 2023 to 4.612 billion RMB in 2025, with growth rates of 41.60% and 38.62% for the respective years [7]. Profitability Metrics - The report indicates that the net profit margin for the second quarter of 2025 is expected to be 23.8%, a slight decrease of 0.50 percentage points year-on-year, while the non-deductible net profit margin is projected at 22.6%, down 2.04 percentage points year-on-year [3]. - The company is expected to maintain strong profitability due to cost advantages and effective channel management, with a focus on enhancing product visibility and driving sales at the retail level [3]. Market Position and Strategy - The company is actively pursuing a national expansion strategy, leveraging refined channel management to enhance operational capabilities and increase product exposure [3]. - The report highlights the company's commitment to innovation and product diversification, which is expected to unlock new revenue streams and enhance overall market competitiveness [3].