Investment Rating - First coverage with a "Buy" rating [4] - Expected net profit for 2024-2026: 338 million, 446 million, and 587 million RMB respectively [4] - EPS for 2024-2026: 1.27, 1.68, and 2.21 RMB respectively [4] - PE ratios for 2024-2026: 60.96x, 46.14x, and 35.08x respectively [4] Core Views - Jiangfeng Electronics is a leading enterprise in high-purity metal sputtering targets, with a strong technological moat [4] - The company has established a good reputation in both domestic and international markets, supplying major international manufacturers [4] - The company is advancing equipment and production line localization, achieving self-control in production equipment and domestic production lines [4] - The sputtering target market is expected to grow steadily, with the global market size reaching 258 billion USD in 2023, and a CAGR of 12.25% from 2017 to 2023 [4] - High-purity metal sputtering targets are expected to reach a market size of 57.05 billion USD by 2028, with a CAGR of 7.6% from 2023 to 2030 [4] Business Performance and Growth - In H1 2024, the company achieved revenue of 1.627 billion RMB, a YoY increase of 35.91%, and net profit of 161 million RMB, a YoY increase of 5.32% [4] - The semiconductor precision components business achieved revenue of 570 million RMB in 2023, a YoY increase of 58.55% [4] - The company is actively expanding production, with multiple production bases progressing smoothly, including the Wuhan base and Ningbo Jiangfeng projects [4] - The company is making progress in third-generation semiconductor materials, with products like high-end copper-clad ceramic substrates and silicon carbide epitaxial wafers gaining market recognition [4] Industry and Market Analysis - The global sputtering target market is expected to reach 258 billion USD in 2023, with a CAGR of 12.25% from 2017 to 2023 [4] - High-purity metal sputtering targets are expected to reach a market size of 57.05 billion USD by 2028, with a CAGR of 7.6% from 2023 to 2030 [4] - The domestic sputtering target market is growing rapidly, with a CAGR of 12.9% from 2018 to 2022, and is expected to reach 43.1 billion RMB in 2023 [4] - The semiconductor sputtering target market in China is expected to grow at a CAGR of 10-15% from 2021 to 2026, reaching 3.7 billion RMB by 2025 [4] Competitive Landscape - The global high-performance sputtering target market is dominated by a few key players, including Honeywell, JX Nippon Mining & Metals, and TOSOH [4] - Domestic companies like Jiangfeng Electronics, A-share, and Longhua Technology are accelerating the substitution of international manufacturers [4] - Jiangfeng Electronics has successfully entered the supply chains of major international manufacturers, ensuring the security of key raw materials in critical industries [4] Future Outlook - The company is expected to benefit from the recovery of the semiconductor cycle and the acceleration of domestic substitution [4] - With the expansion of production capacity and the introduction of new products, the company's market share and competitive position are expected to improve [4] - The company's semiconductor precision components and third-generation semiconductor businesses are expected to contribute significantly to future growth [4]

Investment Rating - The report maintains an "Increase" rating for the construction materials industry [2]. Core Insights - The Ministry of Finance and other departments have optimized real estate tax policies, reducing the deed tax rate for the purchase of the only and second homes not exceeding 140 square meters to 1% [15][16]. - The support for urban village renovation policies has expanded to nearly 300 cities, which is expected to release urbanization development potential [16][17]. - From January to October 2024, the year-on-year decline in real estate sales area continues to narrow, indicating a potential stabilization in the real estate market [16][19]. - The report suggests focusing on leading companies in the real estate chain, such as Beixin Building Materials, Jianlang Hardware, Weixing New Materials, and Dongfang Yuhong, as well as monitoring projects like the墨脱 Hydropower Station and the Gan-Yue Canal [20]. Summary by Sections 1. Key Insights and Investment Recommendations - The report highlights the reduction of deed tax rates for homes and the expansion of urban village renovation policies, which are expected to stabilize market expectations and accelerate the recovery of the real estate market [15][16][19]. 2. Market Review 2.1. Sector Performance - The A-share construction materials index fell by 5.24% from November 11 to November 15, 2024, underperforming the CSI 300 index by 1.94 percentage points [21]. - Year-to-date, the construction materials index has decreased by 1.99%, lagging behind the CSI 300 index by 17.66 percentage points [22]. 2.2. Stock Performance - The top-performing stocks this week include Gu Di Technology (+14.77%) and Zhongqi New Materials (+11.11%), while the worst performers include Huali Shares (-14.44%) and Ju Li Culture (-12.77%) [30]. 3. Industry Dynamics - The report notes a weak price trend in the domestic alkali-free yarn market, with prices declining slightly [35]. - Cement prices have shown mixed trends, with some regions experiencing price increases due to supply constraints [39]. - The floating glass market is stabilizing, with prices remaining steady amid fluctuating demand [42]. 4. Company Dynamics - The report mentions that companies are actively upgrading old production capacities to improve efficiency and reduce costs [43]. - A significant investment of 2.3 billion yuan is planned for the construction of an electronic-grade glass fiber production line, expected to be completed by the end of 2025 [44]. 5. Company Announcements - Huajian Group signed a daily operation contract worth 56.9537 million yuan for a new medical center design project [46].

EIA 下调明年需求预期，油价偏弱震荡 ——石油化工行业周报（20241111-20241115） 证 券 研 究 报 告 行 业 研 究 行 业 周 报 ◼ 市场行情回顾 市场表现 本周（20241111-20241115）中信石油石化板块下滑约 1.40%，上证综 合指数下滑约 3.52%，同上证综合指数相比，石油石化板块领先约 2.12 个百分点。子板块方面，石油石化子板块涨跌互现，其中油品销售及 仓储、工程服务、油田服务等子板块跌幅居前。 本周（20241111-20241115）石油石化板块领涨个股包括洲际油气、东 方盛虹、三联虹普、博汇股份、洪田股份等；领跌个股包括国际实业、 华锦股份、宝莫股份、惠博普、石化油服等。其中民营大炼化公司周 度涨跌幅如下：东方盛虹（+17.45%）、荣盛石化（+0%）、恒逸石化（- 0.91%）、恒力石化（-2.35%）、桐昆股份（-4.93%）、新凤鸣（-5.55%） 等。 ◼ 核心观点 上游板块方面，上周国际油价有所下滑。从周度数据以及 EIA 短期展 望数据来看，尽管未来两年美国原油产量维持增长，但是国际油价重 心仍有望维持在相对高位，持续利好上游油气公司。油服 ...

Investment Rating - The industry investment rating is "Overweight" [4] Core Insights - NVIDIA is in talks to participate in the financing round of Elon Musk's AI startup xAI, which has recently built 100,000 NVIDIA H100 GPUs in 122 days with the help of Supermicro [4][28] - Google has launched the Google Vids application, which integrates the Gemini large model to assist users in creating slides, writing video scripts, and generating storyboards [4][29] - Amazon is negotiating a multi-billion dollar investment in AI startup Anthropic, with conditions requiring the use of Amazon's self-developed chips for training AI models [4][30] Summary by Sections 1. Market Review (20241104-20241108) - Major global indices showed varied performance, with the Dow Jones up by 4.61%, NASDAQ by 5.74%, and the Shanghai Composite by 5.5% [13][14] 2. Global AI Industry Highlights 2.1 Key Company Earnings Disclosure Dates - Notable companies such as Netflix, Microsoft, and Amazon are set to disclose their earnings between October 16 and October 24, 2024 [22] 2.2 Other Major Events - NVIDIA's CEO Jensen Huang is expected to deliver a keynote speech at CES on January 6, 2025, where new RTX 50 series graphics cards may be announced [25] 3. Core Insights and Investment Recommendations 3.1 Core Insights - The AI industry is experiencing high demand, with data center infrastructure continuing to grow and AI applications being commercialized steadily [31] 3.2 Investment Recommendations - It is recommended to focus on companies such as Amazon (AMZN), Meta (META), Google (GOOGL), and Microsoft (MSFT) due to the favorable outlook for the large model industry chain [31]

Investment Rating - The industry investment rating is maintained as "Overweight" [7] Core Viewpoints - Local government debt management is being enhanced with a decision to replace hidden debts, allowing for an increase of 10 trillion yuan in local debt resources over the next five years [4][15] - The excavator market is showing positive trends, with October 2024 sales reaching 16,791 units, a year-on-year increase of 15.1%. Domestic sales are recovering due to a new replacement cycle and supportive real estate policies [4][15] - Export sales of excavators have returned to positive growth since August 2024, with year-on-year increases of 6.95%, 2.51%, and 9.46% in August, September, and October respectively [4][15] Summary by Sections 1. Weekly Core Viewpoints and Investment Recommendations - Local government debt management is being enhanced, with 800 billion yuan allocated annually for five years to replace hidden debts, totaling 4 trillion yuan [15] - The excavator market is recovering, with October sales showing a 15.1% increase year-on-year [15] - Recommended companies to focus on include SANY Heavy Industry, XCMG, Zoomlion, Liugong, and Hengli Hydraulic [5][17] 2. Market Performance Review - From November 11 to November 15, the CSI 300 index fell by 3.29%, while the A-share machinery equipment index dropped by 4.66%, ranking 21st among 31 sub-industries [4][17] - Among sub-industries, specialized equipment performed better with a decline of 3.74%, while general equipment saw a larger drop of 5.51% [22] 3. Key Industry News (November 11-15, 2024) - SANY delivered 72 SKT130H mining trucks and 6 SY1350H excavators to Mingyang Group [27] - Zoomlion's concrete machinery contributed to the successful topping of the outer dome structure of the San'ao Nuclear Power Project [27][28] 4. Key Company Announcements (November 11-15, 2024) - Yonggui Electric signed contracts totaling approximately 32.85 million yuan for equipment sales [31] - Zhonghe Technology announced an investment of 32.5 million yuan in Yufei Technology, acquiring a 24.53% stake [31]

Investment Rating - The industry investment rating is maintained as "Overweight" [5]. Core Insights - The report highlights the initiation of the tower cylinder bidding for the Qizhou Seven offshore wind farm project by China Three Gorges Corporation, with a planned installation capacity of 1GW and a requirement for the supply of 500MW by May 30, 2025 [5]. - The report emphasizes the acceleration of offshore wind projects in Guangdong Province, with several key projects listed as priority construction projects, each with a scale of 1GW [5]. - The report suggests focusing on three main lines of investment: companies benefiting from increased offshore wind demand, companies actively expanding overseas, and those with strong order acquisition capabilities [5]. Summary by Sections Market Dynamics - The report notes that the domestic offshore wind market is experiencing a surge in bidding activities, with significant projects being initiated and planned for completion by 2025 [5]. - It mentions the competitive allocation of 2.4GW of offshore wind capacity in Fujian Province, indicating a robust market environment [5]. Investment Recommendations - The report recommends attention to companies such as Dongfang Cable, Tiens Wind Power, and Qifan Cable, which are expected to benefit from the rising demand in offshore wind energy [5].

Investment Rating - The report maintains an "Accumulate" rating for the electric power equipment industry [6]. Core Viewpoints - The report highlights the initiation of the Qingzhou Qihai offshore wind farm project, with a planned capacity of 1GW and a current tender for 500MW [4]. - The domestic offshore wind market is experiencing rapid development, with Fujian Province announcing a competitive allocation of 2.4GW for offshore wind projects [4]. - The report notes a decline in the wind power equipment sub-sector, which fell by 6.53% this week, underperforming compared to other electric power equipment sub-sectors [19][21]. Market Performance Review - The electric power equipment sector saw a decline of 1.85% in the week from November 11 to November 15, 2024, ranking 6th among 31 primary industries [19]. - Year-to-date, the electric power equipment sector has increased by 4.98%, ranking 14th among the same industries [19]. - The wind power equipment sub-sector has decreased by 4.84% year-to-date, indicating a lag behind other sub-sectors [21]. Wind Power Installation Data - In the first nine months of 2024, China added 39.12GW of wind power capacity, representing a year-on-year increase of 16.85% [36]. - In September 2024 alone, the country added 5.51GW of new wind power capacity [36]. Wind Power Approval Data - From January to October 2024, a total of 80.04GW of wind power projects were approved in China, including 64.44GW of onshore projects and 14.68GW of offshore projects [48]. Wind Power Equipment Tender Data - This week, 21 wind power projects initiated turbine procurement, totaling 28.19GW, including the Dalian Huayuan Kou I and II offshore wind projects [51]. - A total of 15 wind power projects were opened for bidding this week, with a total capacity of 3976.7MW [56]. Upstream Raw Material Price Data - The average price of medium-thick plates this week was 3706.80 yuan/ton, a decrease of 0.58% from the previous week [62]. - The average price of scrap steel was 2190.00 yuan/ton, an increase of 1.11% from the previous week [62]. Investment Recommendations - The report suggests focusing on growth-oriented companies benefiting from offshore wind demand, such as Dongfang Cable, Tiensun Wind Power, and Qifan Cable [4]. - Companies with strong overseas market expansion capabilities, such as Dajin Heavy Industry, Tiensun Wind Power, and Zhenjiang Co., are also recommended [4]. - Wind turbine manufacturers with recovering profitability, including Goldwind Technology, Mingyang Smart Energy, Sany Heavy Energy, and Yunda Co., are highlighted as potential investment opportunities [4].

Investment Rating - The report maintains an "Overweight" rating for the electronic industry [4]. Core Insights - Huawei's Mate 70 series is expected to launch in November, potentially featuring the native Harmony operating system, which may benefit the related supply chain [12]. - The semiconductor industry is likely to benefit from the acceleration of domestic substitution due to export restrictions on TSMC's advanced chips [14]. - Passive components from leading manufacturers like Murata and TDK are expected to see price increases of approximately 10% to 20% due to rising demand from the smartphone and PC markets [15]. - Advanced packaging technologies, such as Hybrid Bonding, are gaining importance in the computing era, with the HBM5 20hi generation expected to adopt this technology [15]. Summary by Sections 1. Core Insights and Investment Recommendations - Huawei's Mate 70 series is anticipated to solidify Huawei's position in the high-end smartphone market and accelerate the commercial use of Harmony OS, benefiting the supply chain [12]. - The semiconductor industry is expected to see growth due to domestic substitution driven by export restrictions on advanced chips [14]. - The passive components sector is likely to benefit from price increases driven by demand recovery in smartphones and PCs [15]. - Advanced packaging technologies are becoming increasingly significant, with the HBM5 generation expected to utilize Hybrid Bonding [15]. 2. Market Review - During the week of November 11-15, the A-share Shenwan Electronics Index fell by 4.15%, underperforming the CSI 300 Index by 0.85 percentage points [23]. - The performance of various electronic sub-sectors included: Consumer Electronics (-2.01%), Components (-4.17%), and Semiconductors (-4.34%) [25]. 3. Industry News - Leading passive component manufacturers are expected to raise prices by 10% to 20% due to increased demand [34]. - TSMC faces export restrictions on 7nm AI chips, which may accelerate the domestic semiconductor industry's growth [35]. - Guangdong Province is increasing investment in organic semiconductor materials and core semiconductor equipment [35]. 4. Company Dynamics - Fenghua Advanced Technology is focusing on low-altitude economy sectors, including drones and smart bases, to enhance its competitive edge [40]. - Jiemai Technology is exploring opportunities in the electronic information industry supply chain, particularly in packaging materials and semiconductor materials [40]. - Maijie Technology's acquisition plans are pending approval from the Shenzhen Stock Exchange [41].

Investment Rating - The industry investment rating is "Increase" [6] Core Viewpoints - In October 2024, the year-on-year growth of social retail sales was 4.8%, with a month-on-month increase of 1.6 percentage points, driven by policies promoting consumption upgrades and the impact of the National Day holiday and early "Double Eleven" promotions [4] - Online consumption showed rapid growth, accounting for 27.8% of total retail sales, while offline retail improved steadily [4] - The sales of optional consumer goods, particularly cosmetics and apparel, saw significant increases, with cosmetics growing by 40.1% and apparel by 8.0% year-on-year in October [4] Summary by Sections Retail Sales Performance - Social retail sales totaled 45,396 billion yuan in October, with a year-on-year growth of 4.8%, surpassing the consensus expectation of 3.93% [4] - Excluding automobiles, retail sales reached 40,944 billion yuan, growing by 4.9% [4] Online vs Offline Sales - Online retail sales of physical goods reached 12,609 billion yuan, representing 27.8% of total retail sales [4] - Year-to-date online retail sales were 123,632 billion yuan, with a growth rate of 8.8% [4] Consumer Goods Performance - Essential goods like grain and food saw a year-on-year increase of 10.1% [4] - Optional consumer goods, particularly driven by the "Double Eleven" promotions, showed strong growth, with cosmetics and home appliances leading the way [4] Investment Recommendations - Focus on companies benefiting from sports events and social trends in the sportswear sector: Anta Sports, Li Ning, Xtep International, and 361 Degrees [5] - Highlight textile manufacturing leaders with improved inventory and quick response capabilities: Shenzhou International, Bailing Oriental, Huali Group, and Xin'ao Co [5] - Emphasize gold and jewelry leaders driven by self-indulgence and value retention: Laoputong, Zhou Dafu, and Lao Fengxiang [5] - Target the cosmetics sector benefiting from the "beauty economy" and the rise of domestic brands: Proya, Shangmei, and Juzhibio [5]

Investment Rating - The industry investment rating is maintained as "Increase" [6] Core Viewpoints - The Chinese cultural and creative product market is rapidly developing, with a market size reaching 16.38 billion USD in 2023, reflecting a year-on-year growth of 13.09%, which is higher than the global average growth rate [4] - The market share of Chinese cultural and creative products in the global market has increased from 10.67% in 2020 to 11.56% in 2023, indicating China's growing importance in the global cultural and creative product market [4] - Cultural and creative products are enhancing cultural exchange and dissemination, attracting tourists and promoting cultural heritage, thus driving cultural tourism consumption [4] - The prices of cultural and creative products are significantly higher than ordinary products, with examples showing price increases from a few yuan to 28 yuan for co-branded items [4] - Intellectual Property (IP) is becoming the core competitive advantage, driving fan engagement and cross-industry interactions, thus enhancing the value and monetization of IP [4] Summary by Sections - **Market Development**: The Chinese cultural and creative product market is experiencing strong growth, with a market size of 16.38 billion USD in 2023 and a growth rate of 13.09% [4] - **Cultural Impact**: Cultural and creative products are facilitating cultural exchange and tourism, creating a positive cycle in the cultural economy [4] - **Pricing Trends**: The pricing of cultural and creative products is notably higher than standard products, reflecting their unique value [4] - **IP Significance**: IP is identified as a key driver of growth and interaction across various industries, enhancing the overall ecosystem [4] - **Investment Recommendations**: Focus on companies with strong IP resources such as Aofei Entertainment, and those with excellent IP development capabilities like Guangbo Technology and Huali Technology [5]