Investment Rating - The industry investment rating is "Buy" [4] Core Insights - The AI recycling market is poised for exponential growth, with the value of AI waste projected to reach 500 billion by the end of the 14th Five-Year Plan [8] - The introduction of new regulations is expected to formalize the recycling process, leading to the first wave of AI server recycling around 2027-2028 [8] - High-value and high-barrier characteristics of AI server recycling present significant opportunities for leading electronic waste dismantling companies [8] Summary by Sections AI's Hidden Track - The First Wave of Server Recycling - The AI industry is rapidly expanding, with the AI server market expected to grow at a compound annual growth rate (CAGR) of 31% from 2024 to 2028 [16] - The demand for AI servers is driving a significant increase in electronic waste, with projections indicating a potential increase of nearly 1000 times in AI-related electronic waste from 2020 to 2030 [17] Analysis of AI Server Recycling - AI servers exhibit high residual value and concentration, with Nvidia H100 GPUs maintaining a residual value of 80-90% and a recovery price of 28,000 to 35,000 USD [26] - The recycling process for AI servers is complex and requires adherence to high standards, including data security and environmental compliance [32] Policy Driving Industry Formalization - New regulations have been implemented to include AI waste in the national control system, marking a new phase for the industry [42] - The updated regulations require stricter disposal standards and comprehensive monitoring throughout the recycling process [43] Key Recommendations - The report highlights "Dadi Ocean" as a key player in the recycling industry, particularly due to its recent acquisition of "Tiger Brother" to enhance its waste recycling capabilities [58] - The "Tiger Brother" model effectively addresses challenges in waste collection and recycling, achieving a resource utilization rate of over 90% [62]

- The report utilizes convolutional neural networks (CNN) to model the relationship between charted price-volume data and future prices, mapping learned features to industry thematic indices[74][75] - The thematic indices configured using CNN include the CSI Dividend Low Volatility Index, CSI Bank Index, CSI 800 Bank Index, CSI Mainland Real Estate Thematic Index, and CSI 800 Real Estate Index[75] - The CNN-based approach focuses on standardizing price-volume data into charts for analysis, as referenced in prior deep learning studies like "AI Recognition and Classification of Stock Price Trends Based on Convolutional Neural Networks"[74]

Investment Rating - The report assigns a "Buy" rating to the company with a current price of HKD 29.82 and a fair value of HKD 39.24 [4]. Core Insights - The company, Leshu Shi, is a leading player in the sanitary products market in emerging markets, particularly in Africa, with a market share of 20% in baby diapers and 16% in sanitary napkins as of 2024 [8]. - The company has established a strong operational presence with eight factories and 18 sales branches across over 30 countries, indicating robust market penetration [8]. - The African sanitary products industry is expected to grow steadily, driven by population growth and economic development, with a compound annual growth rate (CAGR) of 6.8% from 2020 to 2024 [8]. - Leshu Shi has built high barriers to entry through local production and deep channel management, positioning itself as a leader in the market [8]. - The company aims to expand into Latin America and diversify its product offerings, leveraging its existing distribution channels [8]. - Profit forecasts indicate a net profit of USD 1.41 million in 2026, growing to USD 1.86 million by 2028, reflecting a strong growth trajectory [8]. Financial Summary - The company’s revenue is projected to grow from USD 454 million in 2024 to USD 875 million by 2028, with growth rates of 10.5% in 2024 and 24.9% in 2025 [2]. - EBITDA is expected to increase from USD 124 million in 2024 to USD 226 million in 2028, indicating improving profitability [2]. - Non-GAAP net profit is forecasted to rise from USD 98 million in 2024 to USD 186 million in 2028, with a growth rate of 24.4% in 2025 [2]. - The company’s Non-GAAP EPS is projected to increase from HKD 0.20 in 2025 to HKD 0.30 in 2028 [2]. - The Non-GAAP PE ratio is expected to decrease from 20.9 in 2025 to 12.7 in 2028, suggesting an attractive valuation [2]. Market and Industry Analysis - The report highlights the favorable macroeconomic factors in Africa, including a growing eligible population and rising GDP, which support the demand for sanitary products [8]. - The industry is characterized by a concentrated market structure, with Leshu Shi holding a leading position in both baby diapers and sanitary napkins [8]. - The company’s strategy includes enhancing its distribution network and product offerings to capture a larger market share [8].

Investment Rating - The report provides a "Buy" rating for the non-bank financial sector, indicating an expected performance that will exceed the market by more than 10% over the next 12 months [36]. Core Insights - The report emphasizes the importance of strengthening market stability mechanisms and suggests focusing on left-side opportunities within the sector. It highlights that external risk events may fluctuate, but the market's resilience remains strong, with a trend of incremental capital inflow expected to continue [5]. - The introduction of the Financial Law draft is seen as a significant step towards enhancing regulatory frameworks and promoting high-quality development in the financial sector. This law aims to strengthen supervision, prevent risks, and support long-term growth [16][17]. - The insurance sector is advised to be actively monitored, as it continues to increase its equity investment ratio despite market downturns. The report notes that the solvency ratio of life insurance companies remains robust, providing a buffer against potential market pressures [13][5]. Summary by Sections 1. Market Performance - As of March 21, 2026, the Shanghai Composite Index fell by 3.38%, while the Shenzhen Component Index decreased by 2.90%. The CSI 300 Index dropped by 2.19%, and the ChiNext Index rose by 1.26% [10]. 2. Industry Dynamics and Weekly Commentary (a) Insurance - The report indicates that the insurance sector is guided by the two sessions to pursue high-quality development. The solvency ratio of life insurance companies is at 115%, significantly above the regulatory threshold of 50%, allowing for continued investment in equities [13]. - The proportion of insurance funds allocated to stocks and funds has increased to 14.8%, up by 2.1 percentage points from the previous year. The report suggests that the current valuation of the insurance sector presents a good cost-performance ratio [13]. (b) Securities - The Financial Law draft aims to enhance financial regulation and promote high-quality development. It establishes a comprehensive legal framework for financial activities, emphasizing risk prevention and regulatory clarity [16][17]. - The report notes that the Hong Kong Securities and Futures Commission has reported a significant increase in the virtual asset market, with a daily trading volume increase of 89.5% year-on-year, indicating a growing market and regulatory framework [21][23]. 3. Key Company Valuations and Financial Analysis - The report includes detailed valuations for key companies in the sector, with several companies rated as "Buy," including China Ping An, China Life, and Huatai Securities, among others. The expected earnings per share (EPS) and price-to-earnings (PE) ratios for these companies indicate strong growth potential [6].

Market Overview - The current market is characterized by a steepening yield curve, with short-term rates supported and long-term rates experiencing controlled volatility[4] - Geopolitical conflicts have driven oil prices up, impacting inflation expectations but with limited effect on domestic fundamentals and monetary policy[10] Economic Data Insights - Economic data from January to February shows structural recovery, particularly in infrastructure investment, but consumer recovery remains weak[10] - The anticipated economic growth rate for March may see a marginal decline due to seasonal factors, with ongoing verification needed for sustained recovery[10] Investment Strategy Recommendations - Suggested strategies include a focus on 1-year AA- certificates of deposit to capture short-term certainty, alongside 3-5 year perpetual bonds with a tilt towards 5-year positions[4] - High-yield real estate bonds are recommended for defensive positioning against market volatility, particularly 3-year high-rated varieties[11] Risk Factors - Potential risks include unexpected policy changes or external disturbances that could exceed current expectations[4] - Limitations in sample data and historical data may affect the accuracy of predictions and strategies[4] Performance Metrics - The cumulative return of the weekly strategy since early 2025 stands at 3.91%, outperforming short-term bond fund indices by 1.80% and medium to long-term bond indices by 0.65%[14]

Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The Terafab project, announced by SpaceX and Tesla, aims to produce 1 trillion watts of computing power annually through the manufacturing of 100 billion to 200 billion advanced 2nm chips, with an investment of $20 billion to $25 billion [6] - The chips produced will serve both ground and space applications, with 80% allocated for space computing and 20% for ground computing [6] - The project is part of a broader strategy by Musk to create a commercial ecosystem integrating solar power, computing, and rocket technology, potentially completing a business loop in space computing [6] - Investment recommendations include focusing on semiconductor equipment companies like Changchuan Technology, and companies involved in photovoltaic equipment and materials [6] Summary by Sections Industry Overview - The report highlights the significant advancements in the commercial aerospace sector, particularly through the Terafab project, which is expected to revolutionize space computing capabilities [6] Financial Analysis - Key companies in the semiconductor and photovoltaic sectors are recommended for investment, with specific focus on their growth potential and market positioning [7]

Investment Rating - The report rates the internet media industry as "Buy" [3] Core Insights - The report highlights the strong growth potential in various segments of the internet media industry, including e-commerce, social entertainment media, internet healthcare, short videos, and IP-driven products [7][15][18] - The gaming sector is expected to maintain a favorable outlook, with new game launches anticipated to drive growth [18] - The advertising sector shows signs of recovery, particularly with significant increases in internet advertising investments [18] Summary by Sections Internet Sector - E-commerce: Alibaba's MaaS business and the progress of the Qianwen model are expected to stimulate market interest [15] - Social Entertainment Media: Tencent's WeChat commercialization potential and Bilibili's advertising growth are promising [15][16] - Internet Healthcare: JD Health and Alibaba Health are leveraging their platform advantages for strong revenue and profit growth [16] Gaming Sector - The gaming industry is projected to continue its upward trend in 2026, with major companies like Tencent and NetEase showing significant value [18] - New game releases are expected to catalyze industry growth, with several high-profile titles scheduled for launch [13][18] Advertising Sector - A notable increase in internet advertising investments has been observed, particularly in the context of major events like the Winter Olympics and the World Cup [18] AI and Technology - The report emphasizes the ongoing advancements in AI technology, with significant developments expected in 2026, particularly in AI-driven applications and models [21] - Companies like Alibaba and Baidu are making strides in AI integration within their business models, enhancing operational efficiency [33] Key Company Valuations - The report provides detailed financial analyses and valuations for key companies in the sector, recommending several stocks based on their growth potential and market positioning [8]

Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The report highlights that under inflation expectations, broad asset liquidity may contract, and attention should be paid to negative feedback effects [1][14] - The central bank's operations have resulted in a net injection of 215.8 billion CNY, with liquidity in the interbank market remaining ample and funding rates slightly declining [14] - The report emphasizes the potential for liquidity-driven valuation expansion to slow down in the second quarter due to rising inflation expectations and external geopolitical conflicts affecting oil prices [14][16] Summary by Sections 1. Inflation Expectations and Asset Liquidity - The interbank liquidity is currently abundant, with funding rates showing a slight decline. As of March 20, R001 and R007 rates were 1.40% and 1.48%, respectively [14] - The central bank conducted 242.3 billion CNY in 7-day reverse repos, with a maturity of 1,765 billion CNY, and a net injection of 215.8 billion CNY was achieved [14] - The report anticipates that liquidity may face contraction in Q2, influenced by inflation recovery expectations and external factors [14] 2. Central Bank Dynamics and Market Rates - The central bank's operations are characterized by small adjustments, maintaining a stable liquidity environment [15] - The report notes that government bond yields have shown mixed movements, with 1Y and 3Y yields decreasing by 2.0bp and 2.5bp, while longer-term yields have increased [16] - The report suggests that the market should prepare for potential upward pressure on long-term interest rates as economic recovery and inflation expectations evolve [16] 3. Bank Financing Tracking - The report indicates that the issuance of interbank certificates of deposit (NCD) has seen a weighted average issuance rate of 1.53%, down by 2bp from the previous period [19] - The total outstanding amount of interbank certificates of deposit is 18.17 trillion CNY, with a negative net financing of 4.042 billion CNY this period [19] - The report highlights that there were no new issuances of commercial bank bonds during this period, with a total outstanding amount of 3.35 trillion CNY [20]

Investment Rating - The report maintains a "Buy" rating for Haitong Development (603162.SH), with an expected reasonable value of 13.16 RMB per share based on a 13x PE for 2026 [5]. Core Views - The company achieved a revenue of 4.443 billion RMB in 2025, representing a year-on-year growth of 21.43%. However, the net profit attributable to shareholders decreased by 15.30% to 465 million RMB [5]. - The fourth quarter of 2025 showed significant improvement, with revenue reaching 1.434 billion RMB, up 33.8% year-on-year, and net profit increasing by 53.3% to 212 million RMB [5]. - The growth in revenue is attributed to the recovery of the international dry bulk market in the second half of the year and the addition of 18 new vessels through purchase and leasing, which expanded the fleet size and boosted business volume [5]. - The dry bulk shipping industry is entering a new upward cycle, with the global order book representing only 11.43% of the active fleet, indicating a historically low supply. This, combined with structural demand increases, positions the company favorably for future performance [5]. Financial Summary - Revenue projections for 2024 to 2028 are as follows: 3.659 billion RMB (2024), 4.443 billion RMB (2025), 4.816 billion RMB (2026), 5.502 billion RMB (2027), and 6.695 billion RMB (2028), with growth rates of 114.5%, 21.4%, 8.4%, 14.2%, and 21.7% respectively [2]. - EBITDA is projected to grow from 1.056 billion RMB in 2024 to 2.760 billion RMB in 2028, reflecting a strong upward trend [2]. - The net profit attributable to shareholders is expected to increase significantly from 549 million RMB in 2024 to 1.923 billion RMB in 2028, with notable growth rates of 196.7% in 2024 and 59.3% in 2028 [2]. - The company’s earnings per share (EPS) is projected to rise from 0.60 RMB in 2024 to 2.07 RMB in 2028, indicating strong profitability growth [2].

Investment Rating - The industry rating is "Buy" as of March 22, 2026, consistent with the previous rating [4]. Core Insights - The report highlights that net settlement remains at a high level, with cross-border capital inflow significantly supplementing M2 and base currency [12]. - In February, the arbitrage trading return rate declined rapidly, with the US dollar and RMB showing a strong dual performance. The US dollar index rose by 0.54%, influenced by reduced interest rate expectations and increased demand for safe-haven assets due to geopolitical tensions [13]. - The report indicates that the net cross-border capital inflow in February remained high, with a surplus of 247.3 billion yuan in bank customer foreign exchange payments, a year-on-year increase of 39.1 billion yuan [14]. - The willingness to settle in RMB has significantly increased, with net settlement in February reaching 383.3 billion yuan, a year-on-year increase of 431.1 billion yuan [34]. Summary by Sections Section 1: Current Observation - The report discusses the February data on bank settlement and foreign exchange payments, noting that net settlement remains high and cross-border inflows are providing significant support to M2 and base currency [12]. Section 2: Arbitrage Trading Returns - The arbitrage trading return rate has decreased, with the RMB appreciating against the US dollar by 1.34% in February, driven by strong export performance and overall increased willingness to settle [13][14]. Section 3: SDR Major Economies Tracking - The report includes tracking of major economies, noting a slight seasonal increase in unemployment rates in China and the US, and a marginal appreciation of the Japanese yen against the offshore RMB [8]. Section 4: Historical Data - Historical data on bank foreign exchange payments and settlements is provided, showing trends in surplus and deficits across various categories, including goods and services [17][35].