Investment Rating - The industry investment rating is "Increase" (maintained) [4] Core Viewpoints - The successful IPO of Beijing Haibo Sichuang Technology Co., Ltd. indicates further recognition of energy storage system integrators in the capital market, and the industry is expected to develop steadily [4][10] - In 2023, Haibo Sichuang's revenue was approximately 6.98 billion yuan, with a net profit of about 560 million yuan [4][10] Data Tracking - **Downstream Demand**: In August 2024, China's new energy vehicle sales reached 1.1 million units, with a month-on-month growth of +11% and a year-on-year growth of +30% [12] - **Energy Storage Demand**: In August 2024, China's new energy storage added power capacity was approximately 1.9 GW, a year-on-year increase of +80%, with an energy scale of about 4.7 GWh, a year-on-year increase of +108% [14] - **Battery Production**: In September 2024, China's lithium battery production was 120.1 GWh, a year-on-year increase of +40% and a month-on-month increase of +8% [16] - **Material Production**: In September 2024, China's ternary cathode production was 57,000 tons (year-on-year +3%, month-on-month -7%), LFP cathode materials were 251,000 tons (year-on-year +97%, month-on-month +19%), and anode production was 171,000 tons (year-on-year +11%, month-on-month +12%) [18][19] - **Separator Production**: In September 2024, China's separator production was 1.93 billion square meters (year-on-year +43%, month-on-month +8%) [21] - **Electrolyte Production**: In September 2024, China's electrolyte production was 142,000 tons (year-on-year +33%, month-on-month +15%) [23] - **Price Trends**: As of October 18, 2024, the prices in the industry chain are as follows: battery-grade lithium carbonate at 74,000 yuan/ton, LFP (power type) at 33,000 yuan/ton, and 523 square ternary cells at 0.42 yuan/Wh [25] Investment Recommendations - The report suggests focusing on three main lines for investment opportunities in the lithium battery sector: 1) Leading companies in various segments: CATL, Yiwei Lithium Energy, Defang Nano, Hunan Youneng, Rongbai Technology, and others [4] 2) New technologies and materials: Xinde New Materials, Tiannai Technology, Heimao Co., Ltd. [4] 3) Solid-state battery-related companies: Guansheng Co., Ltd., Jinlongyu [4]

Investment Rating - The report maintains an "Accumulate" rating for the electric power equipment industry [6]. Core Viewpoints - The wind power sector is experiencing significant catalysts, including the 2024 Beijing International Wind Energy Conference where 11 major wind turbine manufacturers unveiled new products [2][15]. - The report highlights a notable increase in wind power installations, with 33.61 million kilowatts added in the first eight months of 2024, representing a 16.2% year-on-year growth [19]. - The average bidding price for wind turbine projects has been reported, with the highest bid at 2,176 RMB/kW and the lowest at 1,820 RMB/kW [25]. Summary by Sections 1. Wind Power Sector Market Review - The electric power equipment sector saw a weekly increase of 4.37%, ranking 12th among 31 industries [3][13]. - The wind power equipment sub-sector had the smallest increase of 0.93% during the same period [3][13]. - The top five gainers in the wind power equipment sector included companies like Shuangyi Technology and New Strong Union, with gains ranging from 3.11% to 8.62% [13]. 2. Wind Power Industry Chain Tracking 2.1 Wind Power Installation Data - In the first eight months of 2024, China added 33.61 million kilowatts of wind power capacity, a 16.2% increase compared to the same period in 2023 [19]. - The monthly addition in August 2024 was reported at 3.70 GW [19]. 2.2 Wind Turbine Bidding Data - A total of 14 projects initiated wind turbine bidding, with a combined capacity of 2,294.25 MW [24]. - The bidding for offshore wind projects included a significant project by Huaneng Cangnan with a capacity of 308 MW [24]. 2.3 Upstream Raw Material Price Tracking - The average price of medium-thick plates was reported at 3,804.60 RMB/ton, showing a decrease of 1.81% week-on-week [3]. - Prices for various raw materials, including ductile iron and epoxy resin, showed mixed trends, with some decreasing and others increasing slightly [3]. 3. Investment Recommendations - The report suggests focusing on growth-oriented companies benefiting from offshore wind demand, such as Dongfang Cable and Haili Wind Power [4]. - Companies with strong overseas market capabilities, like Dajin Heavy Industry and Taisheng Wind Power, are also highlighted as potential investment opportunities [4]. - The report identifies main engine manufacturers like Goldwind Technology and Mingyang Smart Energy as having recovering profitability [4].

Investment Rating - The report maintains an "Accumulate" rating for the building materials industry [2][8]. Core Viewpoints - The report highlights a coordinated effort by multiple government departments to stabilize the market, including the cancellation of various housing purchase restrictions and the reduction of loan rates [6][7]. - The implementation of monetary compensation for urban village and dilapidated housing renovations is expected to release more housing demand and improve market activity [7][8]. - The report anticipates that the effects of the supportive policies will become evident in the fourth quarter, potentially leading to improved real estate sales data [7][8]. Summary by Sections 1. Core Viewpoints and Investment Recommendations - A "combination punch" of policies is being implemented to stabilize the market, including four cancellations and four reductions in housing-related costs [6]. - The report notes a decrease in the year-on-year decline in new construction, sales area, and investment in the real estate sector from January to September 2024 [6]. 2. Market Review 2.1. Sector Performance - The A-share building materials index rose by 2.85% during the week of October 14-18, 2024, outperforming the CSI 300 index by 1.87 percentage points [9]. - Year-to-date, the building materials index has decreased by 6.56%, underperforming the CSI 300 index by 20.96 percentage points [10]. 2.2. Stock Performance - The top-performing stocks for the week included Huali Co. (+61.06%) and Sichuan Jinding (+61.02%) [13][14]. - Year-to-date, Huali Co. and Qinglong Pipeline have shown significant gains of 65.61% and 63.43%, respectively [15]. 3. Industry Dynamics - The report indicates that the price of cement has increased, driven by stable supply and recovering demand [17]. - The glass fiber market is experiencing stable prices, with some adjustments based on regional demand [16][18]. 4. Company Dynamics - Tower Group has closed a less competitive production line to optimize its operations and is focusing on maintaining its market share while maximizing profits [19]. - The company plans to invest 200-400 million yuan annually in technological upgrades and environmental projects [19].

Investment Rating - The report maintains an "Overweight" rating for the automotive industry [2][28]. Core Insights - The automotive market is expected to see stable growth in consumer demand due to supportive policies, with retail sales of passenger vehicles reaching 823,000 units in the first half of October 2024, marking a year-on-year increase of 20% and a month-on-month increase of 17% [28]. - The report highlights a significant increase in the number of discounted models, particularly in the new energy vehicle segment, with 195 models seeing price reductions in 2024, surpassing the total for 2023 [28]. - The report suggests focusing on companies that lead in smart technology and are well-positioned in the vehicle replacement cycle, such as XPeng Motors, BYD, Xiaomi Group, and Leap Motor [28]. Market Review - In the week from October 14 to October 18, 2024, the automotive sector rose by 1.15%, ranking 17th among all primary industries [29]. - Commercial vehicles saw the highest increase at 6.75%, while passenger vehicles experienced the largest decline at 0.83% [29][32]. Industry Data Tracking Monthly Sales - In August 2024, total automotive sales were approximately 2.453 million units, with a month-on-month increase of 8.5% but a year-on-year decrease of 5% [38]. - Passenger vehicle sales in August 2024 were about 2.181 million units, reflecting a month-on-month increase of 9.4% and a year-on-year decrease of 4% [38]. Weekly Sales - For the first half of October 2024, retail sales of passenger vehicles reached 823,000 units, with a year-on-year growth of 20% [41]. Price Tracking - As of October 18, 2024, the price of battery-grade lithium carbonate was approximately 73,700 yuan per ton, down 4% from October 11, 2024 [43]. Industry Dynamics - Recent collaborations include Hesai Technology's exclusive partnership with Leap Motor for next-generation vehicle platforms, with the first model expected to be produced in 2025 [47]. - The report notes the launch of new models such as the Ford Lingrui and Nissan's Qichen VX6 during the week of October 14 to October 18, 2024 [48]. Company Dynamics - Companies like Yuanfeng Automotive and Fuyao Glass reported significant year-on-year profit increases for Q3 2024, with Fuyao's net profit rising by approximately 53.54% [49].

Investment Rating - The industry investment rating is "Increase" [6] Core Viewpoints - The policy catalysis is intensive, and the development of national data platforms is accelerating [3] - The plan aims to establish over 100 trusted data spaces by 2028, enhancing data resource utilization and circulation efficiency [3] - The commercial model for data elements is taking shape, with public data operation authorizations already granted to some entities [3] Summary by Sections Event Overview - The National Data Bureau has solicited public opinions on the "Trusted Data Space Development Action Plan (2024-2028)" [2] - The establishment of the National Data Group Alliance aims to enhance cooperation among data enterprises across provinces and accelerate the development of the data element industry [2] Policy Developments - Multiple data element policy documents are set to be released, focusing on data property rights, circulation, revenue distribution, and safety governance [3] - The action plan emphasizes establishing a comprehensive data property rights system and specific rules for data management [3] Investment Recommendations - Companies likely to benefit from national data platform construction include ShenSanda and YiHuaLu [4] - Companies expected to benefit from public data operation authorizations include YunSaiZhiLian, GuoXinHealth, and Shanghai Steel Union [4]

Investment Rating - The industry investment rating is maintained as "Overweight" [6] Core Viewpoints - International oil prices have recently declined, with Brent crude settling at approximately $73.06 per barrel, down 7.57% week-on-week, and WTI crude at about $69.22 per barrel, down 8.4% week-on-week [11][15] - Despite the decline, the EIA forecasts that U.S. crude oil production will continue to grow over the next two years, reaching 13.2 million barrels per day in 2024 and nearly 13.5 million barrels per day in 2025, which is expected to support high international oil prices [15] - The oil service sector has seen a week-on-week increase in active drilling rigs in North America, although the year-on-year comparison shows a significant decline [16] - The refining sector is experiencing improved margins, with Singapore diesel and gasoline price spreads increasing by approximately $2 and $5 per barrel, respectively, while the ethylene and naphtha spread increased by about $40 per ton [18] - Polyester terminal prices indicate a recovery potential, with the POY price spread expanding to approximately 1437 RMB per ton, suggesting a favorable outlook for long filament enterprises [22] Summary by Sections Market Performance - The CITIC oil and petrochemical sector declined by approximately 1.61% during the week of October 14-18, 2024, while the Shanghai Composite Index rose by about 1.36%, indicating a lag of 2.97 percentage points [2][9] - Leading stocks included Baoli International and Guangju Energy, while stocks like Intercontinental Oil and He Shun Petroleum saw significant declines [2][10] Upstream Sector - International oil prices have decreased, but the EIA's short-term outlook suggests that prices will remain relatively high, benefiting upstream oil and gas companies [3][15] - The number of global drilling rigs increased in Q3, which is favorable for oil service companies [16] Midstream Refining Sector - Domestic refined oil prices have slightly decreased, with Shandong gasoline and diesel prices dropping by approximately 315 RMB and 10 RMB per ton, respectively [18] - The refining companies are expected to see significant performance recovery due to improved price spreads [18] Polyester Terminal Sector - The polyester market shows signs of recovery, with increased price spreads and inventory levels indicating potential for long filament companies [22][26] Investment Recommendations - The report suggests four main investment themes: 1. Focus on energy central enterprises like China National Petroleum and China National Offshore Oil for their efforts in oil and gas exploration and green transformation [4][31] 2. Attention to oil service companies such as CNOOC Services and Haiyou Engineering due to rising global upstream capital expenditures [4][31] 3. Investment in long filament companies like Xin Fengming and Tongkun Co. as industry supply-demand dynamics improve [4][31] 4. Monitoring refining companies like Satellite Chemical and Hengli Petrochemical for new capacity planning and material project layouts [4][31]

Investment Rating - The report maintains an "Overweight" rating for the non-ferrous metals industry [4][11]. Core Views - The global interest rate cut cycle has begun, with expectations for the Federal Reserve to lower rates by 25 basis points in November and December. Amid escalating conflicts in the Middle East and the Korean Peninsula, gold prices have reached new historical highs, surpassing $2,700 per ounce. The demand for gold as a safe-haven asset remains strong, and it is expected that gold prices will maintain high levels in the long term [4][11][21]. Summary by Sections 1. Core Views and Investment Recommendations - The report highlights the ongoing global interest rate cuts and the expected rate reductions by various central banks, including the Federal Reserve, which is anticipated to lower rates by 25 basis points in both November and December. The geopolitical tensions have reinforced gold's status as a safe-haven asset, leading to a new record high in gold prices [4][11]. 2. Weekly Sector Performance Review - As of October 18, 2024, the non-ferrous metals index has seen a week-on-week increase of 1.85%, ranking 15th among 31 sectors. Year-to-date, the index has risen by 8.64% [15]. 3. Price and Inventory Performance 3.1 Precious Metals - As of October 18, 2024, COMEX gold closed at $2,736.4 per ounce, up 2.33% from the previous week. COMEX silver closed at $33.925 per ounce, up 6.90%. The gold-silver ratio is at 80.66, down 4.28% [20][24]. 3.2 Industrial Metals - The report notes fluctuations in industrial metal prices, with LME copper, aluminum, lead, zinc, tin, and nickel prices showing varying changes. For instance, LME copper decreased by 1.81% to $9,625.5 per ton, while SHFE copper decreased by 0.31% to ¥76,980 per ton. Inventory changes indicate a decrease in LME copper stocks by 13,350 tons and an increase in SHFE stocks by 11,940 tons [25][27]. 3.3 Energy Metals - Lithium carbonate prices have slightly decreased by 3.66%, while cobalt prices have increased by 0.85%. The prices for nickel sulfate and other related materials have shown minor fluctuations [29][30]. 4. Important News of the Week - The report emphasizes the ongoing geopolitical tensions and their impact on market dynamics, particularly in the context of precious metals and their safe-haven appeal [4][11]. 5. Important Company Announcements - The report lists several companies as potential investment targets, including those in the precious metals sector such as Zhongjin Gold and Shandong Gold, as well as industrial metal companies like Zijin Mining and China Aluminum [11][14].

Investment Rating - The report maintains an "Overweight" rating for the precious metals sector [4][11]. Core Insights - The U.S. September CPI exceeded expectations, leading to a slight decrease in the probability of interest rate cuts in November and December. However, gold prices remain volatile at high levels, with a positive long-term outlook as the rate cut cycle progresses [4][11]. - Industrial metals require attention to policy-driven demand and economic performance. The report highlights a mixed performance in copper and aluminum production rates, with a recommendation to focus on investment opportunities due to rising prices and seasonal demand [4][12]. - The report emphasizes the ongoing geopolitical uncertainties that bolster gold's status as a safe-haven asset, predicting sustained high gold prices amid the Fed's rate cut cycle [4][11]. Summary by Sections 1. Core Views and Investment Recommendations - The report indicates that the U.S. September CPI rose by 2.4%, slightly above the expected 2.3%, affecting market expectations for Fed rate cuts [4][11]. - The anticipated probability for a 25 basis point cut in November decreased from 97.44% to 89.45%, while the December cut probability increased from 80.19% to 84.36% [4][11]. - The report suggests continuous monitoring of U.S. inflation data and monetary policy direction [4][11]. 2. Weekly Sector Performance Review - The non-ferrous metals index experienced a decline of 6.24% for the week ending October 11, 2024, ranking 21st among 31 sectors [14]. - Sub-sector performance included declines in aluminum (-5.01%), lead and zinc (-5.36%), and copper (-6.04%) [14][16]. 3. Price and Inventory Performance 3.1 Precious Metals - As of October 11, 2024, COMEX gold closed at $2674.2 per ounce, up 0.04% week-on-week, while silver closed at $31.735 per ounce, down 2.19% [20][23]. - The gold-silver ratio increased to 84.27, reflecting a 2.28% rise [20][23]. - The report notes a decrease in non-commercial net long positions in gold by 7.25% [20][23]. 3.2 Industrial Metals - LME copper and aluminum prices fell by 1.59% and 1.01%, respectively, while SHFE copper and aluminum prices decreased by 2.04% and increased by 1.78% [23][25]. - The report highlights the importance of monitoring traditional demand peaks and inventory changes during the "golden September and silver October" period [23][24]. 4. Key Companies to Watch - Recommended companies in the precious metals sector include Zhongjin Gold, Shandong Gold, and Chifeng Jilong Gold Mining [12][13]. - In the industrial metals sector, notable companies include Zijin Mining, Luoyang Molybdenum, and China Aluminum [12][13]. - For small metals and new materials, companies such as Hunan Gold, Huayu Mining, and Yunnan Germanium are highlighted [12][13].

Economic Growth - In Q3 2024, China's real GDP growth rate was 4.6%, down from 5.3% in Q2 and 4.7% in Q1[10] - Nominal GDP growth remained stable at 4.0% in Q3, consistent with Q2[10] - The GDP deflator narrowed its decline to -0.6% in Q3, compared to -1.1% in Q2[10] Income and Consumption - Per capita disposable income grew by 4.9% in the first three quarters, outpacing the real GDP growth rate[12] - Retail sales in September showed a year-on-year increase of 3.2%, rebounding from 2.1% in August[14] - The unemployment rate decreased to 5.1% in September from 5.3% in August[14] Investment Trends - Fixed asset investment growth ended a declining trend, with a 3.4% year-on-year increase in the first nine months[23] - Infrastructure investment rose to 9.3% in September, up from 6.7% in May[23] - Real estate development investment saw a cumulative decline of 10.1% in the first nine months[23] Industrial Performance - Industrial value-added growth rebounded to 5.4% year-on-year in September, with high-tech industries growing over 10%[26] - The manufacturing sector showed varied performance, with pharmaceutical manufacturing accelerating to 11.0%[26] - The service sector's production index increased by 5.1% year-on-year in September, although IT services saw a slight decline[26] Policy Implications - The "Two New" policy aimed at large-scale equipment updates and consumer goods replacement is beginning to show effects, with a target of 25% growth in investment by 2027[6] - Risks include potential changes in counter-cyclical adjustment policies and delays in real estate policy impacts[37]

Investment Rating - The report maintains an "Overweight" rating for the automotive industry [2]. Core Insights - In September 2024, the production and sales of new energy vehicles (NEVs) reached 1.307 million and 1.287 million units, respectively, marking year-on-year increases of 48.8% and 42.3% [2]. - For the first nine months of 2024, NEV production and sales totaled 8.316 million and 8.320 million units, reflecting year-on-year growth of 31.7% and 32.5% [2]. - NEV exports in September 2024 were 111,000 units, showing a month-on-month increase of 0.9% and a year-on-year increase of 15.6% [2]. - The automotive market is experiencing a mild recovery, driven by enhanced national subsidies and the "Golden September" effect, with total automotive production and sales in September reaching 2.796 million and 2.809 million units, respectively [2]. - The report highlights a significant increase in the number of models experiencing price reductions, with 195 models seeing price cuts in 2024, surpassing the total of 150 models in 2023 [2]. - The average sales price of vehicles decreased to 174,000 yuan in September, down from the annual average of 182,000 yuan, primarily due to an increase in the sales proportion of entry-level electric vehicles [2]. Summary by Sections Production and Sales - NEV production and sales in September 2024 were 1.307 million and 1.287 million units, with year-on-year growth of 48.8% and 42.3% [2]. - Total automotive production and sales in September reached 2.796 million and 2.809 million units, with month-on-month increases of 12.2% and 14.5% [2]. Market Trends - The automotive market is gradually recovering, particularly in the retail sector, supported by new product launches and government incentives [2]. - The price war in the automotive sector has slowed down, contributing to a mild market recovery [2]. Investment Recommendations - The report suggests focusing on vehicle manufacturers that lead in intelligence and technology cycles, such as XPeng Motors, BYD, Xiaomi Group, and Leap Motor [2]. - It also recommends looking at the electric and intelligent component sectors, favoring companies like Huguang Co., Wuxi Zhenhua, Bojun Technology, Kebo Da, and Baolong Technology [2].