Investment Rating - The report maintains an "Outperform" rating for the utility sector [3]. Core Viewpoints - The acceleration of solar thermal power construction, supported by scale enhancement and policy backing, is expected to secure returns [19]. - The National Development and Reform Commission and the National Energy Administration have issued guidelines to promote the large-scale development of solar thermal power, aiming for a total installed capacity of approximately 15 million kilowatts by 2030, with investment expected to reach around 170 billion yuan [19][20]. Summary by Sections 1. Weekly Overview - From December 22 to December 26, the Shanghai Composite Index rose by 1.88%, the ChiNext Index increased by 3.9%, the utility index gained 0.83%, and the environmental index rose by 1.92% [27]. - In the utility sector, the thermal power segment increased by 2.45%, while the hydropower segment decreased by 0.77% [29]. 2. Utility Sector Dynamics 2.1. Electricity Tracking - In November 2025, the average transaction price in Jiangsu's centralized bidding was 355.95 yuan/MWh, up 4.45% month-on-month but down 13.60% year-on-year [39]. - The total electricity generation in November 2025 was approximately 779.2 billion kWh, a year-on-year increase of 3.96% but a month-on-month decrease of 2.62% [42]. 2.2. Water Conditions - As of December 26, the water level at the Three Gorges Reservoir was 170.95 meters, which is normal compared to 167.82 meters in the same period last year [55]. 2.3. Coal Price and Inventory Tracking - The CCI index for thermal coal was reported at 693 yuan/ton as of December 24, 2025, a decrease of 39 yuan/ton from December 17 [59]. - The inventory of thermal coal at Qinhuangdao Port was 7.02 million tons as of December 25, 2025, down by 110,000 tons from December 18 [65]. 2.4. Natural Gas Price Tracking - The LNG ex-factory price index in China was reported at 3937 yuan/ton as of December 25, 2025, a decrease of 3.39% from December 17 [70]. 3. Configuration Suggestions - Short-term recommendations include focusing on environmentally friendly public utility sectors that cater to residential demand, such as heating services and waste-to-energy projects [14]. - Long-term suggestions emphasize the importance of stable performance and attractive dividend yields in the current low-interest-rate environment, particularly for quality hydropower companies [14].

Overview - The mechanical equipment sector has shown strong performance, with a 30.48% increase from January to November 2025, ranking sixth among 31 primary industry indices [20][21][22] - Multiple sub-sectors have outperformed the Shanghai Composite Index and CSI 300, with significant gains in electric motors, general equipment, and specialized equipment [20][22] General Sector - The PMI and new orders PMI for the general sector showed a trend of rising and then falling, indicating stable manufacturing demand, with inventory levels remaining reasonable [2][32] - The peak growth rate for finished product inventory PMI was 2.56%, suggesting a stable inventory situation [2][32] - Companies to watch include Inovance Technology, Okuma, Huari Precision, New Sharp, Naipu Mining Machinery, and Jereh [2][39] Engineering Machinery Sector - The engineering machinery industry is experiencing a recovery in domestic demand and high overseas demand, with a focus on electrification and technological transformation [3] - Key players like SANY Heavy Industry, XCMG, Zoomlion, and LiuGong are noted for their advantages in technology research and global channels [3] Rail Transit Equipment Sector - The growth rates for passenger and freight transport have exceeded the annual expectations set by the China National Railway Group, with significant investment in the railway sector [4] - From January to October 2025, passenger volume reached 3.95 billion, up 6.4% year-on-year, and freight volume was 4.37 billion tons, up 2.6% [4] - Companies to focus on include CRRC Corporation, China Railway Signal & Communication, and Siwei Control [4][39] Quantum Technology Sector - The national strategy increasingly emphasizes quantum technology, with expectations for continued investment and policy support [8] - The development of quantum technology is anticipated to drive demand for related hardware and software, benefiting core equipment manufacturers [8][39] Low-altitude Economy Sector - The low-altitude economy has been highlighted in government work reports, with local governments actively promoting development plans [9] - By 2025, local low-altitude economic industry funds are expected to exceed 100 billion, providing financial support for development [9][39] Export Chain Sector - The export chain is advised to focus on the U.S. market and emerging markets, with potential recovery in consumer spending if the U.S. continues to lower interest rates [10] - Companies to monitor include Jack Technology, Honghua Digital, Yindu Co., and Yizhiming [10][39]

Investment Rating - The report maintains an investment rating of "outperforming the market" for the coal industry, indicating a projected increase in stock prices relative to the benchmark index [2][14]. Core Insights - The National Development and Reform Commission emphasizes the optimization and upgrading of traditional industries, focusing on balancing supply and demand in sectors like steel and petrochemicals, while also addressing resource constraints in industries such as alumina and copper smelting [1]. - In November, the total electricity consumption reached 835.6 billion kWh, a year-on-year increase of 6.2%, while industrial power generation was 779.2 billion kWh, up 2.7% year-on-year. The report highlights a growing gap between electricity consumption and industrial power generation growth rates, suggesting a potential shift from a relatively loose supply situation to a more balanced or even tight one [1]. - Coal prices have been declining, with Qinhuangdao coal prices at 677 RMB/ton, down 34 RMB/ton year-on-year. The report anticipates limited further declines in coal prices due to seasonal demand recovery and supply constraints as the year-end approaches [1]. Summary by Sections Section: Supply and Demand Dynamics - The report notes that the average daily coal consumption in power plants across 25 provinces was 5.98 million tons, a decrease of 7.3% year-on-year, while average inventory levels increased by 1% [1]. - The report indicates that the supply from major coal-producing regions may gradually contract towards the end of the year, which could limit further price declines [1]. Section: Market Recommendations - The report suggests focusing on companies that are likely to benefit from stable dividends, such as China Coal Energy, China Shenhua Energy, Shaanxi Coal and Chemical Industry, and China Power Investment Corporation. It also highlights potential opportunities in companies like Lu'an Environmental Energy and Yanzhou Coal Mining Company, which may benefit from seasonal price increases [9]. - The report emphasizes the importance of monitoring economic recovery and macroeconomic policies that could influence actual demand release, as well as safety regulations affecting production levels in major coal-producing areas [1][9].

Investment Rating - The report maintains an "Outperform" rating for the beauty and personal care industry, indicating a positive outlook for growth opportunities in the sector [3]. Core Insights - The report emphasizes that innovation in ingredients, particularly new materials like PDRN (Polydeoxyribonucleotide) and ECM (Extracellular Matrix), is a significant driver for growth in the beauty and medical aesthetics industry. Companies that successfully integrate these new components into their product lines are expected to enhance their growth potential and market competitiveness [5][14]. Summary by Sections 1. PDRN: A New Ingredient Driving Growth - PDRN has been validated in overseas markets for over a decade and is recognized for its effectiveness in promoting tissue regeneration and anti-inflammatory properties. The introduction of PDRN products in the medical aesthetics sector has shown a compound annual growth rate (CAGR) of 30% from 2014 to 2024 for companies like PharmaResearch, which has established a strong market presence with its Rejuran product line [5][18][32]. - The domestic market for PDRN is expected to grow significantly, with a projected revenue of approximately 330 million RMB from Q4 2024 to Q3 2025, indicating robust demand for PDRN products in China [5][20]. - The report highlights that the increasing awareness and education around PDRN among consumers, coupled with regulatory clarity and rapid supply chain development, will further drive demand in the medical aesthetics sector [5][68]. 2. ECM: Potential in Regenerative Fields - ECM is gaining attention as a promising ingredient in both medical aesthetics and cosmetics, with applications in serious medical fields already established. The report notes that the market for ECM products is still developing, with several companies beginning to explore its potential in aesthetic applications [5][24][28]. - The report suggests that the introduction of ECM products could fill existing gaps in the market, particularly in the medical aesthetics sector, where consumer education and awareness are crucial for adoption [5][24]. 3. Investment Opportunities - The report recommends focusing on companies with established pipelines for new materials, particularly in the medical aesthetics sector, such as Lepu Medical and Marubi Biotechnology, which are expected to lead in the approval and commercialization of PDRN products [5][6]. - In the cosmetics sector, brands that are quick to adopt PDRN and other innovative ingredients are likely to gain a competitive edge, with several major brands already launching PDRN-infused products in 2025 [5][6].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [2][7]. Core Insights - The company focuses on smart electric sofas and has a stable ownership structure with significant employee incentives, leading to rapid growth in performance [6][20]. - The U.S. functional sofa market is steadily expanding, with the company increasing its market share due to strong supply chain capabilities and product innovation [6][44]. - The company's revenue is projected to grow significantly, with expected revenues of 33.24 billion, 41.67 billion, and 49.93 billion yuan for 2025, 2026, and 2027 respectively, reflecting growth rates of 30.44%, 25.35%, and 19.82% [7][8]. Summary by Sections Basic Information - The company, established in 2002, specializes in the research, production, and sales of smart electric sofas and beds, with a concentrated ownership structure where the actual controller holds 68.28% of shares [6][20]. - Revenue grew from 896 million yuan in 2017 to 2.548 billion yuan in 2024, with a CAGR of +16.11%, while net profit increased from 104 million yuan to 683 million yuan, achieving a CAGR of +30.87% [29][31]. Industry Analysis - The U.S. functional sofa market is projected to reach 13.75 billion USD by 2024, with a penetration rate of 42.8%, driven by high consumer spending and market education by leading brands [6][44][51]. - The competitive landscape is concentrated, with the top 10 companies holding a significant market share, and the company is expected to increase its market share to 4% by 2024 [6][44]. Company Highlights - The company is enhancing cost efficiency through vertical integration and global supply chain strategies, which allow it to offer high-quality products at competitive prices [6][14]. - A strong sales team focused on the U.S. market is aiding in customer expansion, with the number of "store-in-store" locations exceeding 500 in North America by early 2025 [6][14]. - The company is diversifying its customer base, reducing revenue concentration risk, with the top five customers accounting for 45.51% of total revenue in 2024 [6][14]. Profit Forecast - The company forecasts revenues of 33.24 billion, 41.67 billion, and 49.93 billion yuan for 2025, 2026, and 2027, with net profits of 9.05 billion, 11.07 billion, and 13.33 billion yuan respectively [7][8].

Investment Rating - The report maintains an "Outperform" rating for the non-bank financial sector, indicating a positive outlook compared to the broader market [2]. Core Insights - The report highlights the recent merger of China International Capital Corporation (CICC) with Dongxing Securities and China Securities, marking a significant step in industry consolidation. This merger is expected to enhance CICC's capabilities and position it as a leading investment bank [11][12]. - The report emphasizes the importance of the central economic work conference, which sets a positive tone for the market and suggests a focus on the effectiveness of future policies and the recovery of economic momentum [4][15]. - The insurance sector is undergoing regulatory changes aimed at improving asset-liability management, which is expected to enhance the industry's resilience and promote high-quality development [37][39]. Summary by Sections Securities Business Overview - CICC's merger with Dongxing and China Securities is a pivotal event, with the combined entity projected to have total assets of approximately 1,009.6 billion CNY and net assets of 174.7 billion CNY, ranking fourth in the industry [12][13]. - The merger is anticipated to create synergies between CICC's investment banking expertise and the extensive client networks of the other two firms, enhancing service offerings [12][14]. Insurance Business Overview - The new asset-liability management regulations are designed to unify existing standards and improve the overall regulatory framework for the insurance industry, focusing on governance, policy procedures, and risk management [38][39]. - The report notes that the new regulations will require insurance companies to enhance their management capabilities to align with the updated standards, thereby reducing mismatch risks and improving operational resilience [39]. Market Liquidity Tracking - Recent market data indicates fluctuations in major indices, with the non-bank financial index showing a weekly increase of 2.70%, reflecting a positive trend in the sector [16][21]. - The report also highlights a decrease in average daily trading volume in A-shares, which fell by 5.37% compared to the previous week, indicating potential market volatility [16][22].

行 业 研 究 / 建 筑 装 饰 / 证 券 研 究 报 告 建筑装饰行业周报 11 月固投累计降幅环比扩大，看好宽松 政策带动需求改善 2025 年 12 月 22 日 【投资要点】 【配置建议】 相关研究 《中央经济会议定调"双宽松"，增量政策 及重点工程有望推进》 2025.12.16 挖掘价值 投资成长 强于大市（维持） 东方财富证券研究所 证券分析师：王翩翩 证书编号：S1160524060001 证券分析师：郁晾 证书编号：S1160524100004 相对指数表现 -20% -10% 0% 10% 20% 30% 2024/12 2025/6 2025/12 建筑装饰 沪深300 《六部门联合发布促进消费方案，推荐机 器人转型企业》 2025.12.01 《美方就结束俄乌冲突提出 28 点新计划， 继续关注"一带一路"周边地区出海》 2025.11.24 《10 月固投延续下滑，适度宽松的货币政 策持续发力，看好战略工程推进》 2025.11.20 《沉潜与时近，古韵焕新声》 2025.11.16 板块行情回顾：上周建筑装饰（SW）指数下跌 0.1%，全部 A 股指数 上涨 0.03%，板块未 ...

建筑材料行业周报 11 月投资数据仍处筑底过程，关注政策 加码空间及重点工程需求释放 2025 年 12 月 22 日 【投资要点】 【配置建议】 挖掘价值 投资成长 强于大市（维持） 东方财富证券研究所 证券分析师：王翩翩 证书编号：S1160524060001 证券分析师：郁晾 证书编号：S1160524100004 相对指数表现 -10% -2% 6% 14% 22% 30% 2024/12 2025/6 2025/12 建筑材料 沪深300 相关研究 《中央经济会议定调积极，继续关注地产 链底部反弹机会》 2025.12.15 《万科债务有望逐渐出清，继续看好消费 建材白马价值回归》 2025.12.01 《地产链有望筑底企稳，关注板块弹性及 出海机会》 2025.11.24 《前十月基建投资同比-0.1%，稳增长背景 下看好战略重点工程推进》 2025.11.20 《克而瑞十月百强销售数据环比持稳，继 续看好消费建材白马价值回归》 2025.11.10 行 业 研 究 / 建 筑 材 料 / 证 券 研 究 报 告 市场行情回顾：上周建材板块上涨 0.92%，跑赢沪深 300 指数 1.2pct。 ...

Investment Rating - The report maintains a "Strongly Outperform" rating for the health supplement industry [3] Core Insights - The health supplement market in China is expected to grow significantly, with a retail scale projected to reach 260.2 billion yuan by 2024, reflecting a CAGR of 6.3% from 2019 to 2024 [6][16] - The industry is characterized by a dual driving force from both mature markets and emerging consumer trends, with a notable shift towards younger demographics and new consumption patterns [22][40] - The contract manufacturing segment is anticipated to see increased concentration, benefiting from stable demand growth and the influx of new brands [2][8] Summary by Sections 1. Continuous Expansion of Health Supplements - The health supplement market is expanding, with the global market expected to reach 191.5 billion USD by 2024 [16] - The penetration rate of health supplements in China is significantly lower than in developed countries, indicating substantial growth potential [21][20] 2. Consumer Changes Driving Channel Transformation and Product Iteration - The primary sales channels for health supplements have shifted from direct sales and pharmacies to e-commerce, with e-commerce accounting for 48.02% of sales in 2023 [46] - The rise of live-streaming e-commerce has significantly contributed to the growth of the health supplement industry, with a penetration rate projected to reach 34.3% by 2024 [6][46] 3. Increased Concentration in the Contract Manufacturing Segment - The contract manufacturing segment is expected to benefit from the growing demand for health supplements, with major players like Xianle Health and Baihe Co. projected to capture significant market shares [2][7] - Brand owners are actively adapting to new trends, focusing on product innovation and channel diversification to capture market opportunities [8][7] 4. Investment Recommendations - The report suggests focusing on leading contract manufacturers with strong R&D capabilities and those that are well-positioned to benefit from emerging consumer trends [8] - Specific companies recommended for investment include Xianle Health and Baihe Co. in the contract manufacturing space, and H&H International Holdings and Tongrentang in the brand segment [8]

Consumption - In October 2025, the total retail sales of consumer goods reached 46,291 billion yuan, with a year-on-year growth of 2.9%, down 0.1 percentage points from the previous value of 3%[12] - Sales of "two new" products and real estate-related consumption declined, with automotive sales down 6.6% and home appliances down 14.6% year-on-year[12] - Service consumption showed strong performance, driven by the Mid-Autumn Festival and National Day holidays, with food-related items growing by 8% year-on-year[13] Investment - Fixed asset investment continued to face pressure, with a year-on-year decline of 11.2% in October, worsening from a previous decline of 6.8%[22] - Real estate development investment fell by 23.2% year-on-year in October, while manufacturing and infrastructure investments also saw declines of 6.7% and 12.1%, respectively[22] - Excluding real estate, project investment showed a cumulative growth of 1.7%, indicating that real estate investment dragged down overall investment by approximately 3 percentage points[22] Trade - In October, exports fell sharply with a year-on-year decline of 1.1%, a drop of 9.4 percentage points from the previous value of 8.3%[37] - Exports to the U.S. improved slightly, with a year-on-year growth of -25.2%, while exports to the EU and Africa saw significant declines of 13.3% and 46.0%, respectively[38] - The electronics sector maintained high growth, with integrated circuits growing by 26.9% year-on-year, while labor-intensive products experienced significant declines[37] Industrial Performance - Industrial value-added growth slowed down, with the PMI index showing a downward trend, indicating a potential seasonal disturbance and tariff volatility[7] - The overall industrial profit growth rate slowed, with financial costs being a significant drag on performance[7] - Despite the slowdown, major industrial indices remained in the expansion zone, reflecting overall market optimism[7] Price Trends - The Consumer Price Index (CPI) turned positive in October, with core CPI continuing to rise, driven by strong food prices and holiday demand[7] - The Producer Price Index (PPI) showed a narrowing decline, with prices in the non-ferrous metals sector increasing significantly[7] - The real estate sector continued to face pressure, with a year-on-year decline in real estate development investment of 14.7% from January to October[7]