Group 1: Tungsten Industry - Tungsten is a strategic metal with high melting point and hardness, widely used in key sectors such as aerospace and electronics. China dominates global tungsten resources, with 2024 production expected to reach 67,000 tons and reserves at 2.4 million tons, both ranking first globally [15][16][17] - The supply of tungsten is tightening due to reduced mining quotas and environmental regulations, with a 6.5% decrease in the 2025 mining quota compared to the previous year. This is expected to support tungsten prices, which have already increased over 210% year-to-date [16][17] - The demand for tungsten is driven by hard alloys, military alloys, and photovoltaic tungsten wires, with hard alloys accounting for about 60% of tungsten consumption. The consumption of hard alloys in 2024 is projected to reach 41,400 tons, reflecting steady growth [30][39] Group 2: Molybdenum Industry - Molybdenum is primarily used in the steel industry to enhance strength and corrosion resistance. China holds 39% of global molybdenum reserves, with 2024 production expected to be 260,000 tons, a 6% increase from 2023 [40][43][49] - The supply of molybdenum is expected to remain stable, but the demand is increasing due to high-strength alloys and new applications in renewable energy and aerospace. The domestic molybdenum production from January to November 2025 is reported at 293,400 tons, an 8.66% increase year-on-year [47][49] - Molybdenum prices are supported by high demand in steel and other industries, with the average price of molybdenum iron in the first half of 2025 at 228,800 yuan per ton, reflecting a slight increase [54][55] Group 3: Germanium Industry - Germanium is classified as a strategic mineral, with its supply structure being concentrated and sensitive to price fluctuations. Global germanium production in 2023 was 138 tons, with China producing 94 tons [55][60] - The demand for germanium is expanding in high-growth sectors such as military infrared, low-orbit satellites, and telecommunications, with the price of germanium ingots averaging 15,625 yuan per kilogram in the first half of 2025, a 61.92% increase year-on-year [66][70] - The supply of germanium is tightening due to export controls and environmental policies, with expectations of a gradual increase in prices as demand continues to grow [70] Group 4: Zirconium Industry - Zirconium is widely used in various industries, including electronics, ceramics, and nuclear energy. The demand for zirconium products is driven by traditional sectors and emerging high-end applications [71][80] - The traditional ceramic sector remains the largest consumer of zirconium, with expectations of stabilization due to macroeconomic policies. The construction and real estate sectors are anticipated to support demand for zirconium products [80] - Emerging applications in renewable energy, artificial gemstones, and biomedical ceramics are expected to drive significant growth in zirconium demand, with projections indicating a compound annual growth rate of 133% for solid-state batteries from 2024 to 2030 [81][82]

Market Performance - The Shanghai Composite Index closed at 3940.95, up by 0.53% with an increase of 20.97 points [2] - The Shenzhen Component Index closed at 13486.42, up by 0.88% with an increase of 117.43 points [2] - The CSI 300 Index closed at 4634.06, up by 0.29% with an increase of 13.32 points [2] - The ChiNext Index closed at 3229.58, up by 0.77% with an increase of 24.57 points [2] - The STAR 50 Index closed at 1352.13, up by 0.90% with an increase of 12.11 points [2] - The Beijing Stock Exchange 50 Index closed at 1445.55, up by 0.39% with an increase of 5.61 points [2] Sector Rankings - The top five sectors by growth include Defense and Military Industry (2.88%), Electronics (2.12%), Building Materials (1.72%), Light Industry Manufacturing (1.69%), and Machinery Equipment (1.49%) [3] - The sectors with the largest declines include Agriculture, Forestry, Animal Husbandry, and Fishery (-0.85%), Coal (-0.70%), Food and Beverage (-0.36%), Banking (-0.30%), and Media (0.01%) [3] Market Outlook - The market showed a collective rise with the three major indices increasing, indicating a positive trend with the Shanghai Composite Index achieving six consecutive days of gains [4] - The trading volume in the Shanghai and Shenzhen markets was 1.88 trillion, a decrease of 196 billion from the previous trading day [5] - The report highlights a structural transformation at the bottom of the economic cycle, with manufacturing showing resilience and new industries emerging as bright spots [5] - It is suggested to focus on sectors such as dividends, TMT (Technology, Media, and Telecommunications), and consumer goods for potential investment opportunities [5]

Group 1 - The report gives the company an "Accumulate" rating for the first time [2][55] - The company is a national high-value medical device distributor, established in 2010, focusing on direct sales and distribution of medical devices, and providing centralized operation services for medical consumables (SPD) [5][11] - The SPD management model for medical devices has significant growth potential, with a current penetration rate of approximately 15.29% in public hospitals, indicating a vast market opportunity [5][47] Group 2 - The company has maintained stable revenue and net profit growth from 2020 to 2024, with revenue increasing from 8.542 billion to 17.923 billion yuan, and net profit rising from 160 million to 228 million yuan [24][26] - The medical device market in China is expanding steadily, with the market size growing from 370 billion yuan in 2016 to 1,032.8 billion yuan in 2023, reflecting a compound annual growth rate (CAGR) of 15.79% [31][39] - The high-value medical consumables market in China has also shown steady growth, with a market size increase from 72.4 billion yuan in 2016 to 156.1 billion yuan in 2023, achieving a CAGR of 11.60% [39][40] Group 3 - The company leverages innovation to address industry challenges, focusing on technology, service, and management model improvements to enhance operational efficiency [48][49] - The company has developed a comprehensive SPD management system that integrates logistics information technology to optimize the management of medical consumables within hospitals [52] - The company aims to create a "national integrated medical device distribution hub," enhancing collaboration with major manufacturers and hospitals to streamline operations and improve service efficiency [53][54] Group 4 - The investment forecast estimates earnings per share of 0.66 yuan and 0.76 yuan for 2025 and 2026, respectively, with corresponding valuations of 48 times and 42 times [55][56] - The company is positioned to benefit from the ongoing trends of industry consolidation and increased efficiency in medical device distribution [44][45]

Market Performance - The three major indices closed slightly higher, with the Shanghai Composite Index at 3919.98, up 0.07% [2] - The Shenzhen Component Index closed at 13368.99, up 0.27%, while the ChiNext Index rose by 0.41% to 3205.01 [2] - The total trading volume in the Shanghai and Shenzhen markets reached 1.9 trillion, an increase of 37.9 billion from the previous trading day [6] Sector Rankings - The top five performing sectors included Electric Power Equipment (up 1.12%), Building Materials (up 0.88%), and Electronics (up 0.58%) [3] - The sectors with the largest declines were Social Services (down 2.07%), Beauty and Personal Care (down 1.65%), and Defense and Military Industry (down 1.42%) [3] - Notable concept indices that performed well included Lithography Machines and Fluorochemical Concepts, while sectors like Terahertz and Military Information Technology saw declines [4][3] Future Outlook - The market experienced fluctuations, with indices initially rising before retreating, indicating potential volatility in the near term [4] - The report highlights the importance of monitoring volume changes, suggesting that a stable increase in volume could support a continued upward trend [6] - The upcoming information vacuum period due to year-end meetings and economic data releases may impact market sentiment [6] Economic Indicators - As of December 22, 2025, the total trading volume of A-shares exceeded 405 trillion, marking the first time in history that annual trading volume surpassed 400 trillion [5] - The average turnover rate for the year approached 1.74%, potentially reaching the highest level since 2016 [5] - The report emphasizes the resilience of the industrial chain and supply chain, as highlighted by the recent meeting of central enterprise leaders [5]

Market Overview - The three major indices in the A-share market opened higher and closed positively, with the ChiNext Index rising over 2% [1][2] - The Shanghai Composite Index closed at 3917.36, up 0.69%, while the Shenzhen Component Index closed at 13332.73, up 1.47% [1] - The trading volume in the Shanghai and Shenzhen markets reached 1.86 trillion, an increase of 136 billion compared to the previous trading day [4] Sector Performance - The top-performing sectors included Communication, which rose by 4.28%, and Comprehensive, which increased by 2.63% [1] - Conversely, sectors such as Media and Banking experienced declines, with drops of 0.61% and 0.52% respectively [1] - Notable concept indices that performed well included Hainan Free Trade Zone and Commercial Aerospace, while sectors like Hair Medical and Family Doctors lagged behind [2] Policy Impact - The People's Bank of China announced a one-time credit repair policy that will remove certain overdue credit information from the financial credit information database for eligible individuals [3] - The Loan Market Quote Rate (LPR) remained unchanged for the seventh consecutive month, with the one-year LPR at 3.00% and the five-year LPR at 3.50% [3] Future Outlook - The market is expected to maintain a loose liquidity environment until the first quarter of the following year, influenced by the Federal Reserve's interest rate decisions and domestic economic policies [4] - The report suggests that the recent market pullback provides a good opportunity for investors to position themselves ahead of the upcoming spring market [4] - Recommended sectors for investment include dividends, TMT (Technology, Media, and Telecommunications), and consumer sectors [4]

Weekly New Stock Performance - Four new stocks were listed from December 15 to December 19, with an average first-day price increase of 342.82%[2] - All four new stocks had first-day gains exceeding 100%, including Yuxun Co. (346.57%), Yuanchuang Co. (171.64%), Muxi Co. (692.95%), and Angrui Micro (160.11%)[2][5] - No new stocks experienced a first-day decline during this period[2] Weekly New Stock Issuance Trends - The total amount raised from new stock issuances last week was 77.82 billion yuan, an increase of 65.15 billion yuan compared to the previous week[4] - The number of new stocks listed last week was four, compared to one the week before[5] Monthly New Stock Overview - From December 1 to December 19, a total of eight new stocks were listed, raising 216.64 billion yuan with a first-day price increase average of 319.27%[11] - The first-day price increase range for these stocks was between 146.63% and 692.95%[11] Upcoming New Stock Listings - Three new stocks are scheduled to be listed this week, including one on the main board and two on the ChiNext board[18] - The expected fundraising amounts for the upcoming listings are 3.24 billion yuan for Hengtong Light, 15.55 billion yuan for Shaanxi Tourism, and 7.28 billion yuan for Xinguangyi[23]

Investment Ratings - Banking: Overweight (Maintain) [1] - Securities: Market Weight (Maintain) [1] - Insurance: Overweight (Maintain) [1] Core Insights - The financial sector indices showed varied performance, with banking down by 0.93%, securities up by 3.47%, and insurance up by 15.61% as of December 18, 2025 [11] - The report highlights a trend of increasing social financing, with a notable contribution from corporate bonds, while loan demand remains weak, particularly in the residential sector [45] - Regulatory changes in the insurance sector aim to encourage long-term investments and enhance the competitive advantage of leading insurance companies [3] Summary by Sections Market Review - As of December 18, 2025, the banking, securities, and insurance indices experienced declines of -0.93%, increases of +3.47%, and +15.61% respectively, with the Shanghai Composite Index showing a slight increase of +0.14% [11] - Among the sub-sectors, Xiamen Bank (+5.49%), Zhongyin Securities (+12.39%), and China Ping An (+16.99%) performed the best [11] Recent Market Indicators - The report notes that the social financing growth trend continued in November, with a marginal decrease in the contribution from government bonds [45] - New RMB loans decreased by 1,900 million yuan year-on-year in November, indicating weak loan demand, particularly in the residential sector [45] Industry News - The China Securities Regulatory Commission emphasized differentiated development paths for the securities industry, encouraging leading firms to enhance resource integration through mergers and acquisitions [2] - The insurance regulatory authority issued guidelines to lower risk factors for investments in A-shares and export credit insurance, promoting long-term holding and investment in technology sectors [3] Investment Recommendations - For banking, the report suggests focusing on regional banks with strong performance, such as Chengdu Bank, Ningbo Bank, and others [46] - In the insurance sector, companies like China Pacific Insurance and China Life are highlighted for their potential [4] - The securities sector recommends firms like Zhongyin Securities and Huatai Securities, which are expected to benefit from the regulatory changes [4]

2025 年 12 月 19 日 分析师：陈伟光 S0340520060001 电话：0769-22119430 邮箱： chenweiguang@dgzq.com.cn 周 报 超配（维持） 通信行业双周报（2025/12/5-2025/12/18） 行 业 光模块市场规模持续增长 分析师：罗炜斌 S0340521020001 电话：0769-22110619 邮箱：luoweibin@dgzq.com.cn SAC 执业证书编号： S0340524070002 电话：0769-22119302 邮箱： chenzhanqian@dgzq.com.cn 资料来源：东莞证券研究所，iFind 相关报告 通信行业 投资要点： 本报告的风险等级为中高风险。 本报告的信息均来自已公开信息，关于信息的准确性与完整性，建议投资者谨慎判断，据此入市，风险自担。 请务必阅读末页声明。 SAC 执业证书编号： 通信行业指数近两周涨跌幅：申万通信板块近2周（12/5-12/18）累计上 涨5.92%，跑赢沪深300指数5.79个百分点，涨幅在31个申万一级行业中 位列第2位；申万通信板块12月累计上涨8.49%，跑赢沪深300 ...

Market Overview - The market experienced a rebound this week, with the Shanghai Composite Index slightly rising by 0.03%, while the Shenzhen Component Index and ChiNext Index both fell by 0.89% and 2.26% respectively. The market initially declined due to weak domestic economic data and expectations of interest rate hikes by the Bank of Japan, but later stabilized and briefly surpassed 3900 points before retreating [1][3][14]. Economic Data Analysis - Economic data for November showed a general slowdown, indicating weak internal growth momentum. The industrial value added for November grew by 4.8% year-on-year, down 0.9 percentage points from the previous value. Fixed asset investment from January to November decreased by 2.6% year-on-year, with manufacturing investment growing by only 1.9% [10][11]. - Retail sales for November increased by only 1.3% year-on-year, a decline of 1.6 percentage points from the previous value, primarily affected by weak commodity retail performance [10][11]. Financial Indicators - The total social financing in November was 2.49 trillion yuan, an increase of 160 billion yuan year-on-year, but new RMB loans amounted to only 390 billion yuan, a decrease of 190 billion yuan year-on-year, marking the fifth consecutive month of decline [11][12]. - The M2 money supply grew by 8% year-on-year, while the M1 money supply increased by 4.9%, indicating a decrease in the liquidity of funds and weak demand for real financing [12]. Policy Outlook - The report anticipates that expanding domestic demand and promoting consumption will be key focuses of future policies, especially in light of the ongoing economic transition and external uncertainties. The necessity and possibility of "timely strengthening" monetary policy have increased, with expectations for further easing measures such as reserve requirement ratio cuts and interest rate reductions [10][12][14]. Investment Recommendations - The report suggests focusing on sectors such as finance, non-ferrous metals, food and beverage, machinery, and TMT (Technology, Media, and Telecommunications) for potential investment opportunities [15].

Investment Ratings - Banking: Overweight (Maintain) [1] - Securities: Market Weight (Maintain) [1] - Insurance: Overweight (Maintain) [1] Core Insights - The financial indices for banks, securities, and insurance showed varied performance, with banks declining by 0.93%, securities increasing by 3.47%, and insurance rising by 15.61% as of December 18, 2025 [9] - The report highlights a trend of increasing social financing, with corporate bonds contributing significantly, while demand for loans from both residents and enterprises remains weak [43] - Regulatory changes in the insurance sector aim to encourage long-term investments and improve the competitive landscape for leading insurance companies [47] Summary by Sections Market Review - As of December 18, 2025, the banking index decreased by 0.93%, while the securities and insurance indices increased by 3.47% and 15.61%, respectively [9] - Xiamen Bank, Zhongyin Securities, and China Ping An were noted for their strong performance, with increases of 5.49%, 12.39%, and 16.99% [9] Valuation Situation - The banking sector's price-to-book (PB) ratio stands at 0.77, with state-owned banks at 0.83, joint-stock banks at 0.62, city commercial banks at 0.73, and rural commercial banks at 0.65 [20] - The securities sector's PB ratio is at 1.48, indicating potential for valuation recovery [22] Recent Market Indicators - The one-year Medium-term Lending Facility (MLF) rate is 2.0%, with the one-year and five-year Loan Prime Rates (LPR) at 3.0% and 3.50%, respectively [27] - The average daily trading volume in A-shares was 17,440.20 billion, reflecting a decrease of 9.91% [33] Industry News - The Ministry of Industry and Information Technology and the People's Bank of China issued a notice to support green finance for green factory construction [38] - The China Securities Regulatory Commission emphasized differentiated development paths for securities firms, encouraging mergers and resource integration for leading firms [45] Company Announcements - China Life reported total premiums exceeding 700 billion as of November 30, 2025 [41] - New China Life announced a 16% year-on-year increase in original premium income as of November 30, 2025 [41] Weekly Insights - The banking sector is advised to focus on regional banks with strong performance and stable earnings, such as Ningbo Bank and Chengdu Bank [44] - The securities sector should consider firms with restructuring potential and strong operational capabilities, including Zheshang Securities and CITIC Securities [46] - The insurance sector is encouraged to invest in companies with strong growth in new business value, such as China Pacific Insurance and Ping An [47]