Investment Rating - The report maintains an "Overweight" rating for the communication industry [4]. Core Insights - The report highlights the establishment of a standard system for the sensor and IoT industry in Shaanxi, which is expected to benefit the industry chain [13]. - The successful launch of a satellite internet technology test satellite from the Hainan commercial space launch site is anticipated to accelerate the development of satellite internet [14]. - The 2024 China 5G Development Conference emphasized the deepening application and technological upgrades of 5G, which will enhance its integration into various sectors of the economy [15]. Summary by Sections 1. Core Insights and Investment Recommendations - The report emphasizes the construction of a standard system for the sensor and IoT industry in Shaanxi, which includes 341 standards across 23 subcategories [13]. - The launch of the Long March 12 rocket from Hainan signifies a major step in the commercial space industry, enabling high-density satellite launches [14]. - The 2024 China 5G Development Conference indicates a shift towards deeper applications and technological upgrades in 5G, with a focus on innovation and integration with AI and other technologies [15]. 2. Market Review - During the week of December 9-13, the A-share Shenwan Communication Index rose by 1.91%, outperforming the CSI 300 Index by 2.92 percentage points [19]. - The communication services sector saw a significant increase of 5.22%, while the communication equipment sector had a modest rise of 0.34% [21]. - The communication application value-added services sector led with an 11.82% increase, while other communication equipment sectors experienced declines [24]. 3. Industry News - The Shaanxi provincial government has issued guidelines to standardize the sensor and IoT industry, aiming for a complete standard system by the end of 2027 [31]. - The successful operation of the Hainan commercial space launch site is expected to expedite the establishment of satellite internet networks [32]. - The 2024 China 5G Development Conference highlighted the government's commitment to advancing 5G technology and its applications across various industries [32]. 4. Company Dynamics - China Mobile has launched an initiative to promote integrated sensing technology and industry applications, collaborating with various partners [35]. - Haige Communications has developed a low-altitude flight management service platform, enhancing efficiency in flight operations [35]. 5. Company Announcements - Tianyi Co. has been shortlisted for a major procurement project by China Telecom [39]. - Pingzhi Information has been announced as a candidate for a significant project with China Unicom, valued at approximately 89.05 million yuan [39].

商贸零售 行业研究/行业周报 证 券 研 究 报 告 行 业 研 究 行 业 周 报 政策定调大力提振消费，关注零售企业价值重估和黄 金珠宝底部反转 ——行业周报（20241209-1213） ◼ 周度核心观点 政策明确大力提振消费，关注零售企业价值重估和黄金珠宝底部反 转。12 月 9 日，政治局会议指出，扩内需摆在第一位，首次强调"全 方位扩大国内需求"，意味着扩内需及促消费是明年经济工作的核心任 务之一。12 月 12 日，中央经济工作会议也指出，明年要保持经济稳 定增长，保持物价总体稳定。一方面，线下零售变革正在进行中，龙 头企业回归零售本质，重视商品和服务，改革成效初显；零售企业资 产重估价值凸显，关注业绩边际改善带来的补涨机会。另一方面，黄 金珠宝行业 24 年 Q2 以来受金价快速上涨扰动，终端销售及加盟商多 处于观望情绪，部分公司销售及业绩受到影响；近期金价有所调整， 销售或有回补，当前主要上市公司估值仍具有较强安全边际，且分红 能力较强，持续关注销售拐点显现。 ◼ 本周行情回顾 本周中信商贸零售指数上涨 6.75%，跑赢沪深 300 指数 7.76 个百分 点。本周，商贸零售板块在 30 个 ...

Investment Rating - The report maintains an "Overweight" rating for the automotive industry [11][12]. Core Views - The report highlights that the retail sales of passenger cars from December 1 to 8, 2024, reached 502,000 units, representing a year-on-year increase of 32% and a month-on-month increase of 11%. The domestic automotive consumption demand is expected to grow steadily under supportive policies [11][12]. - The report notes that the inventory levels of automotive dealers have decreased compared to September 2024, with a comprehensive inventory coefficient of approximately 1.10 in October 2024 [11]. - The report emphasizes the competitive landscape in the new energy vehicle sector, with a market share of approximately 45.6% in November 2024 [12]. Summary by Sections 1. Market Review - The automotive sector rose by 0.66% from December 9 to 13, 2024, outperforming the overall A-share market, ranking 12th among all primary industries [13][18]. 2. Industry Data Tracking 2.1 Monthly Automotive Sales - In November 2024, total automotive sales were approximately 3.316 million units, with a month-on-month increase of 8.6% and a year-on-year increase of 11.7% [27]. - Passenger car sales in November 2024 were about 3.001 million units, with a month-on-month increase of 9% and a year-on-year increase of 15.2% [32]. - Commercial vehicle sales were approximately 315,000 units, with a month-on-month increase of 5.6% but a year-on-year decrease of 13.9% [32]. 2.2 Weekly Automotive Sales - From December 1 to 8, 2024, retail sales of passenger cars reached 502,000 units, a year-on-year increase of 32% and a month-on-month increase of 11% [42]. - The wholesale of passenger cars during the same period was 565,000 units, with a year-on-year increase of 55% and a month-on-month increase of 6% [42]. 2.3 Automotive Sales Outlook - The narrow passenger car retail market is expected to reach approximately 2.4 million units in November 2024, with a year-on-year increase of 15.4% and a month-on-month increase of 6.1% [43]. 2.4 Raw Material Price Tracking - As of December 6, 2024, the price of battery-grade lithium carbonate was approximately 76,900 yuan per ton, a decrease of 2% from November 29, 2024 [44][47]. - The price of copper was approximately 74,600 yuan per ton, an increase of 1% from November 29, 2024 [47]. 3. Industry Dynamics - The report mentions that Zeekr announced the production of its 400,000th vehicle, and Xiaomi's new SUV, the YU7, is expected to launch in mid-2025 [54]. - SAIC Volkswagen plans to launch 18 new models by 2030, with 15 specifically developed for the Chinese market [54]. 4. New Vehicle Launches - SAIC General's Envision Plus was launched on December 10, 2024, and Dongfeng's Nano 01 was launched on December 12, 2024 [55]. 5. Company Announcements - Wuxi Zhenhua plans to reduce its shareholding by up to 1% through public trading and up to 2% through block trading [57]. - Longhua Group received a development notification from a well-known flying car company for a project expected to generate approximately 91 million yuan in total sales over five years [57].

Investment Rating - The report maintains an "Accumulate" rating for the media industry [4][15]. Core Insights - Outdoor advertising in China has shown steady growth in the first ten months of 2024, with elevator LCD and poster advertising increasing by 21.9% and 16.5% year-on-year, respectively [12]. - ByteDance and Peking University have established a joint laboratory for the Doubao large model, which is expected to benefit the related industry chain as domestic large models continue to develop [12]. - The Chinese gaming market is projected to reach a record revenue of 325.783 billion yuan in 2024, with a year-on-year growth of 7.53%. The overseas revenue from self-developed games is expected to be 18.557 billion USD, marking a 13.39% increase [14]. Summary by Sections 1. Core Insights and Investment Recommendations - The report highlights the robust growth in outdoor advertising and the establishment of a joint laboratory by ByteDance and Peking University, indicating potential benefits for the industry chain [12][14]. - Investment recommendations include focusing on IP cultural economy, film and television, advertising, and gaming sectors, with specific companies suggested for each area [15]. 2. Market Review 2.1. Sector Performance - The A-share media index rose by 4.11% from December 9 to December 13, outperforming the CSI 300 index by 5.11 percentage points [19]. - Among the sub-sectors, digital media saw the highest increase at 9.78%, while the education sector declined by 1.77% [19][21]. 2.2. Stock Performance - The top-performing stocks included Yue Media (+46.49%) and Tianyu Digital Science (+37.54%), while the worst performers included Liujin Technology (-14.89%) and Yidian Tianxia (-11.39%) [28]. 3. Industry News - Recent tax policies have been announced for cultural enterprises transitioning to businesses, providing tax exemptions until December 31, 2027 [31]. - Tencent's mobile games "Honor of Kings" and "Teamfight Tactics" ranked first and third in the November download charts, respectively [31]. 4. Company Dynamics - Chuangyuan Co. stated it currently has no collaboration with Douyin [34]. - Light Media announced that the animated film "Nezha: The Devil Child Is Coming" will be released on the first day of the Lunar New Year in 2025 [34]. 5. Company Announcements - Key announcements include the election of a vice chairman at CITIC Publishing and the issuance of short-term financing bonds by Huashu Media [37].

Group 1: Economic Outlook - The 2024 Central Economic Work Conference highlighted increased external pressures and internal challenges for the economy, shifting the view to "facing numerous difficulties and challenges" in economic operations[4] - The conference emphasized the importance of balancing effective markets with proactive government roles, aiming for a well-regulated economic order[4] - The 2025 economic goals include maintaining stable growth, ensuring employment and price stability, and promoting synchronized growth of residents' income and the economy[4] Group 2: Fiscal and Monetary Policy - In 2025, a more proactive fiscal policy will be implemented, with expectations of increasing the fiscal deficit ratio, which may exceed 4%[4] - The issuance of special long-term bonds is anticipated to surpass the levels of 2024, with a clear roadmap for local government debt management[4] - The monetary policy for 2025 is expected to shift to a moderately loose stance, focusing on interest rate cuts and innovative financial tools to stabilize the financial market[4] Group 3: Focus Areas and Reforms - The focus for 2025 will be on domestic demand and livelihood improvements, with initiatives to stimulate consumption and expand domestic demand through various economic sectors[6] - Key reforms in state-owned enterprises, fiscal systems, and capital market financing are expected to take effect, driving new productive forces in technology and innovation[6] - The report suggests that the bond market will be guided by the outcomes of the Central Economic Work Conference, with a downward trend in risk-free interest rates anticipated[6]

Group 1: Economic Goals and Strategies - The 2025 economic goals can be summarized as "six stabilities": stabilizing expectations, the economy, employment, prices, the real estate market, and the stock market[4] - The guiding principle of "five coordinations" emphasizes balancing the relationship between effective markets and proactive government, total supply and demand, fostering new momentum while updating old momentum, optimizing increments while revitalizing stock, and enhancing quality while expanding total volume[4] - The "five targeted" strategies address key economic issues, including insufficient demand, deep-rooted development constraints, industrial transformation bottlenecks, business concerns, and risks in key areas[4] Group 2: Macro Policy Directions - The meeting emphasized the need for more proactive fiscal policies and moderately loose monetary policies, with a focus on timely and effective implementation[4] - A key aspect of the fiscal policy is to "increase the fiscal deficit ratio" and prioritize "two heavy" projects and "two new" policies[4] - The monetary policy will include timely adjustments to reserve requirements and interest rates, maintaining liquidity, and ensuring financial market stability[4] Group 3: Key Tasks and Investment Recommendations - Nine key tasks for 2025 include expanding domestic demand, developing new productivity, economic system reform, high-level opening up, risk prevention, urban-rural integration, regional strategies, comprehensive green transformation, and improving livelihoods[5] - Investment strategies should focus on grasping policy direction and timing, ensuring that actions are taken promptly and effectively[6] - Risks from external environmental uncertainties should be closely monitored as they may impact investment outcomes[6]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4]. Core Views - The company has shown steady revenue growth and improved profitability, with a significant increase in both revenue and net profit in the first half of 2024 [3][24]. - The company is a leading player in the powder metallurgy industry, focusing on three main technology platforms: Powder Pressing and Sintering (P&S), Soft Magnetic Composite (SMC), and Metal Injection Molding (MIM) [13][30]. - The MIM segment is expected to continue contributing positively, particularly with the growth of the foldable smartphone market [3][24]. - The company has made strategic investments, including acquiring a stake in a company specializing in titanium alloys, which is expected to enhance its MIM business [45][49]. Summary by Sections 1. Company Overview - The company is a leading manufacturer in the powder metallurgy sector, recognized for its P&S, SMC, and MIM technologies [13][30]. - It serves various industries, including automotive, consumer electronics, and renewable energy, with a focus on high-performance materials [13][30]. 2. Financial Performance - In the first half of 2024, the company reported revenue of 2.353 billion yuan, a year-on-year increase of 33.50%, and a net profit of 190 million yuan, up 431.53% [3][24]. - The automotive parts segment accounted for 75.72% of P&S revenue, while SMC revenue showed signs of recovery after a decline [3][24][26]. 3. MIM Business Growth - The global MIM market is projected to grow from 25.7 billion yuan in 2022 to 50.2 billion yuan by 2029, with a CAGR of approximately 10.7% [3][24]. - The company has established production lines for foldable smartphone components, anticipating a 30% CAGR in foldable smartphone shipments from 2024 to 2028 [3][24]. 4. SMC and P&S Business Development - The SMC market is expected to grow from 4.321 billion yuan in 2022 to 6.068 billion yuan by 2028, with a CAGR of about 5.82% [3][24]. - The company has successfully expanded its SMC production capacity to 70,000 tons per year and is actively developing new high-performance materials [3][24]. 5. Strategic Investments - The company acquired a 10% stake in Shenzhen Xiaoxiang Electric, enhancing its capabilities in electric motor technology [45][48]. - It also invested in a new materials company focused on titanium alloys, which is expected to support its MIM business development [49].

Investment Rating - The report maintains an "Accumulate" rating for the electric power equipment industry [7]. Core Viewpoints - The wind power installation demand remains robust, with significant increases in domestic wind turbine bidding volumes. In the first three quarters of 2024, domestic wind power installations reached 39.12 GW, a year-on-year increase of 16.8% [4][15]. - The profitability of the wind power sector is under pressure, with the operating income of the SW Wind Equipment sector in Q3 2024 at 50.707 billion yuan, a year-on-year increase of 0.62%, but the net profit attributable to shareholders decreased by 34.87% [4][17]. - The industry is experiencing high inventory levels, with inventory reaching 75.436 billion yuan, a year-on-year increase of 11.82% [4][29]. Summary by Sections 1. Demand Review - Wind power installation demand is stable, with a total of 39.12 GW added in the first three quarters of 2024, including 36.65 GW from onshore and 2.47 GW from offshore sources [4][15]. - The bidding volume for wind turbines in the domestic market increased significantly, reaching 119.1 GW, a year-on-year growth of 93.0% [4][15]. 2. Overview - The overall profitability of wind power companies is under pressure, with operating income and net profit for the SW Wind Equipment sector in the first three quarters of 2024 at 120.317 billion yuan and 4.891 billion yuan, respectively, reflecting declines of 8.28% and 35.34% year-on-year [17]. - In Q3 2024, the SW Wind Equipment sector's operating income was 50.707 billion yuan, with a net profit of 1.319 billion yuan, showing a significant decline in profitability [4][17]. 3. Improvement in Complete Machine Segment - The profitability of complete machine manufacturers is showing signs of improvement, with Goldwind's gross margin at 16.43%, an increase of 2.21 percentage points year-on-year [4][37]. - The report highlights that companies like Goldwind, Mingyang Smart Energy, Sany Heavy Energy, and Unida are expected to benefit from improving profitability trends [5]. 4. Investment Recommendations - The report suggests focusing on three main lines: companies benefiting from domestic offshore and overseas market demand, those with improving profitability in the wind turbine manufacturing sector, and those in the component segment that may see a recovery in profitability due to supply-demand dynamics [5].

Investment Rating - The industry investment rating is maintained as "Overweight" [2][13]. Core Insights - The report highlights the acceleration of monetization in overseas AI applications, reinforcing the commercial closed-loop logic of AI. Recent performance of AI application companies in the US stock market has been strong, with notable companies like SOUNDHOUND AI and PALANTIR showing significant stock price increases of 71.56% and 71.45% respectively, alongside substantial revenue and profit growth [2][3]. - The report attributes the rapid commercialization of AI applications to factors such as decreasing computing costs, increased user acceptance, and maturing monetization models. The cost of AI training has decreased significantly, with the price of NVIDIA A800 training cards dropping to 2 yuan per hour, which is expected to lower operational costs for AI application companies and enhance operational efficiency [2][3]. - User engagement with leading global AI applications has increased, with ChatGPT, Doubao, and Nova achieving monthly active users of 287.25 million, 59.98 million, and 49.63 million respectively, indicating a solid foundation for commercial advancement [2][3]. Summary by Relevant Sections Overseas and Domestic AI Application Company Analysis - The report provides a detailed analysis of various AI application companies, categorizing them by sector, such as AI+ Office, AI+ Education, AI+ Industrial/CRM/ERP, AI+ Medical, AI+ Search, AI+ Design, AI+ E-commerce, AI+ Finance, AI+ Data Processing, and AI+ Special Industries. Each category lists relevant companies and their market performance [3][8]. Market Performance Data - The report includes specific market performance data for various AI companies, indicating their market capitalization and year-to-date stock price changes. For example, ORACLE has a market cap of $51.61 billion with an 84.04% increase, while SOUNDHOUND AI has seen a staggering 608.02% increase in stock price [8]. Domestic AI Application Growth Potential - The report emphasizes the strong growth momentum of domestic AI applications, with increasing penetration rates expected. It notes that domestic AI applications are well-positioned for rapid growth, supported by user engagement metrics and market expansion strategies [2][3].

Investment Rating - The industry investment rating is "Maintain Overweight" [8] Core Viewpoints - The upstream sector is expected to benefit from OPEC+ extending production cuts, with international oil prices likely to remain at relatively high levels, favoring upstream oil and gas companies [5][31] - The oil service sector shows a mixed outlook, with a week-on-week increase in active drilling rigs in North America, but a significant year-on-year decrease [32] - The midstream refining sector is experiencing a recovery in performance, with significant improvements in price differentials for key products like ethylene and PX [37] - The polyester terminal sector shows potential for performance recovery due to inventory reduction and improved price differentials [43] Market Performance - The CITIC Oil and Petrochemical sector rose approximately 1.99% during the week of December 2-6, 2024, lagging behind the Shanghai Composite Index, which increased by about 2.33% [4][18] - Key stocks that led the gains included Unification Holdings (+20.04%), Heshun Petroleum (+13.58%), and Huibo Technology (+9.19%) [20][21] Upstream Oil and Gas Sector - International oil prices saw a decline, with Brent crude settling at approximately $71.12 per barrel, down about 2.50% week-on-week [22][24] - The EIA projects U.S. crude oil production to reach 13.2 million barrels per day in 2024, maintaining growth [31] Oil Service Sector - The number of active drilling rigs in North America increased by 7 week-on-week, although it decreased by 37 year-on-year [32] - Global drilling platform activity has improved, benefiting oil service companies [32] Midstream Refining Sector - Domestic refined oil prices showed slight fluctuations, with gasoline prices in Shandong rising by approximately 148 RMB per ton [37] - The price differential for gasoline in Singapore increased by about $1.1 per barrel, indicating a stronger performance in refining [37] Polyester Terminal Sector - The POY price differential is approximately 1045 RMB per ton, with overall inventory reduction observed [43] - The performance recovery potential for long filament enterprises is significant due to inventory depletion [43] Investment Recommendations - Four main investment themes are suggested: 1. Focus on energy central enterprises like China National Petroleum and China National Offshore Oil Corporation [6] 2. Attention to oil service companies such as CNOOC Services and Haiyou Engineering [6] 3. Investment in long filament companies like Xinfengming and Tongkun [6] 4. Monitoring refining companies like Satellite Chemical and Hengli Petrochemical [6]