Investment Rating - The report maintains an "Overweight" rating for the automotive industry [4][6]. Core Insights - The report highlights a robust growth in the automotive sector, with May 2025 new energy vehicle sales reaching approximately 1.307 million units, a year-on-year increase of about 36.9% [31][36]. - The overall automotive sales in May 2025 were approximately 2.686 million units, reflecting a month-on-month increase of 3.7% and a year-on-year increase of 11.2% [2][23]. - The report emphasizes the positive impact of government policies on consumer demand, predicting steady growth in domestic automotive consumption [16]. Summary by Sections Market Review - The automotive sector saw a 1.16% increase in the week from June 9 to June 13, 2025, outperforming the overall A-share market [17][20]. - Among sub-sectors, commercial vehicles experienced the highest growth at 8.87%, while passenger vehicles saw a slight decline of 0.21% [20]. Industry Data Tracking - In the first week of June 2025, retail sales of passenger vehicles were approximately 343,000 units, a year-on-year increase of 19% but a month-on-month decrease of 12% [38]. - The market share of new energy vehicles in May 2025 was about 48.7%, indicating a competitive pricing environment [36][31]. Industry Dynamics - The report notes significant collaborations among major automotive manufacturers, including partnerships between GAC Toyota and Xiaomi, as well as BYD's ongoing cooperation with Alibaba Cloud [45]. - The commitment from seven automotive manufacturers to limit payment terms to no more than 60 days is also highlighted [45]. Investment Recommendations - The report suggests focusing on leading companies in the smart and technology-driven vehicle sector, such as XPeng Motors, BYD, Xiaomi Group, and Leap Motor [4][16]. - For the parts sector, it recommends companies involved in electric and intelligent components, particularly those with export potential and new energy supply chains [4][16].

Investment Rating - The industry investment rating is "Increase" [6] Core Insights - The report highlights the launch of Broadcom's new switch, which is expected to further develop the computing power industry chain. The Tomahawk 6 series switch is claimed to be the "world's first 102.4Tbps switch," indicating ongoing innovation that will benefit the AI industry [1][17] - The AI edge sector is seeing continuous innovation, with a positive outlook on investment opportunities. TSMC's subsidiary VisEra is actively developing AR glasses and plans to advance emerging optical technologies in 2025, suggesting that performance in AR glasses will improve [1][18] - The wearable wristband market has shown a year-on-year growth of 13%, with a total shipment of 46.6 million units in Q1 2025. Innovations in products like AirPods, which may monitor heart rates using AI models, are expected to drive industry growth [2][19] - Despite the extension of the 301 tariff exemption period, there is a strong belief in the domestic supply chain's potential. The USTR has extended the exemption for products including chips and semiconductor parts until August 31, 2025, which is seen as supportive for the domestic replacement industry [2][20] Summary by Sections Computing Power Industry Chain - Broadcom's launch of the Tomahawk 6 switch is expected to benefit the industry, with a focus on companies such as Weicai Technology, Zhongfu Circuit, and others [4][21] AI Edge Sector - Continuous innovation in the AI edge sector is noted, with recommendations to focus on companies like Guoguang Electric and others [4][21] Consumer Electronics - The consumer electronics sector is benefiting from a 13% year-on-year increase in wearable shipments, with recommendations for companies like Dongmu Co. and others [4][21] Domestic Replacement - The report maintains a positive outlook on the domestic replacement industry despite tariff extensions, recommending companies like Jiangfeng Electronics and others [4][21] Market Review - The A-share Shenwan Electronics Index rose by 3.6%, outperforming the CSI 300 Index by 2.72 percentage points [22][25]

Investment Rating - The report maintains an "Overweight" rating for the automotive industry [4][6]. Core Insights - In May 2025, the national retail sales of passenger cars reached approximately 1.93 million units, representing a year-on-year increase of 13% and a month-on-month increase of 10% [2][16]. - The report highlights that under supportive policies, domestic automotive consumption demand is expected to grow steadily throughout the year [16]. - The market share of new energy vehicles in April 2025 was approximately 47.3%, with a notable decrease in price competition observed [16][37]. Summary by Sections Market Review - The automotive sector index rose by 0.17% from June 3 to June 6, 2025, ranking 25th among all primary industries [17][21]. - The motorcycle and other segments saw the highest increase at 3.58%, while commercial vehicles experienced the largest decline at 5.35% [21][22]. Industry Data Tracking - In April 2025, total automotive sales were approximately 2.59 million units, with a year-on-year increase of 9.8% [25][26]. - The report indicates that the wholesale of passenger cars in May 2025 was 2.329 million units, reflecting a year-on-year increase of 14% [39]. - The price of battery-grade lithium carbonate was approximately 60,200 CNY per ton as of June 6, 2025, showing a decrease of 1% from May 30, 2025 [41][43]. Industry Dynamics - The report notes significant strategic partnerships, such as Xiaopeng Motors' collaboration with Huawei for new vehicle HUD solutions [3][45]. - NIO plans to enter seven European markets between 2025 and 2026, launching five models [3][45]. Investment Recommendations - The report suggests focusing on leading intelligent vehicle manufacturers such as Xiaopeng Motors, BYD, Xiaomi Group, and Leap Motor in the vehicle segment [4][16]. - In the parts segment, it recommends investing in companies involved in electric and intelligent components, highlighting firms like Huguang Co., Wuxi Zhenhua, and Bojun Technology [4][16].

Investment Rating - The industry investment rating is maintained as "Increase" for the agricultural sector [6] Core Viewpoints - The agricultural sector outperformed the market by 0.03 percentage points during the week of June 3-6, 2025, with the index closing at 2,682.22, reflecting a weekly increase of 0.91% [1][15] - The pig farming sector is experiencing a downward trend in prices, with the average price of pigs at 14.05 yuan/kg, a week-on-week decrease of 2.43% and a year-on-year decrease of 23.89% [2] - The poultry sector is seeing stable chick prices but weak adjustments in meat chicken prices due to high inventory levels in downstream slaughtering [2] - In the agricultural products segment, wheat and soybean meal prices are weak, while japonica rice prices have increased [3] Summary by Sections 1. Market Review - The agricultural sector index rose by 0.91% and ranked 20th among 31 sectors [1][15] - The fishery sector showed the best performance with a 1.34% increase, followed by planting, feed, agricultural product processing, and breeding sectors [1][17] 2. Industry Key Data 2.1 Pig Farming - The average price of pigs is 14.05 yuan/kg, down 2.43% week-on-week and down 23.89% year-on-year [2] - Self-breeding profits are at 33.83 yuan/head, a decrease of 1.82 yuan/head week-on-week, while profits from purchased piglets are at -120.80 yuan/head, down 36.43% week-on-week [2] 2.2 Poultry - The average price of meat chicken chicks is 2.84 yuan/chick, down 1.05% week-on-week, and the price of white feather meat chickens is 7.32 yuan/kg, down 0.68% week-on-week [2] 2.3 Agricultural Products - The average price of wheat is 2,433.61 yuan/ton, down 0.82% week-on-week; japonica rice is at 2,876.00 yuan/ton, up 0.42% week-on-week; and soybean meal is at 2,940.00 yuan/ton, down 0.54% week-on-week [3] 3. Investment Recommendations - The report suggests focusing on the aquaculture feed industry due to the upcoming sales peak in summer and rising prices of certain fish species [4] - In pig farming, companies with strong cost control or clear cost reduction paths are recommended, including Muyuan Foods, Wens Foodstuff Group, and others [4] - For poultry, attention is drawn to integrated industry leaders like Shengnong Development and Lihua Stock for their stable expansion and cost advantages [4] - In the feed sector, companies like Haida Group and Hefeng Stock are highlighted for benefiting from the recovery in livestock inventory [4] - For agricultural products, companies like Suqian Agricultural Development and Beidahuang are recommended for their focus on food security [4]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its stock performance relative to the market benchmark [5]. Core Insights - DZD8586 has demonstrated an impressive Overall Response Rate (ORR) of 84.2% in patients with Chronic Lymphocytic Leukemia/Small Lymphocytic Lymphoma (CLL/SLL) at a 50mg dosage, with a 9-month Duration of Response (DOR) rate of 83.3% [2]. - The report highlights a trend of increasing ORR over time for DZD8586, with previous data showing ORR of 57.1% and 64.3% at earlier dates [3]. - DZD6008 has shown durable anti-tumor activity, with 83.3% of patients exhibiting tumor shrinkage in a study involving previously treated patients with EGFR-mutant Non-Small Cell Lung Cancer (NSCLC) [4]. Financial Projections - Revenue forecasts for the company are projected at 810 million, 1.47 billion, and 2.2 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 123.7%, 82.4%, and 49.9% [5][7]. - The net profit attributable to the parent company is expected to be -750 million, -417 million, and -23 million yuan for the same years, indicating ongoing losses as the company is in the early stages of product commercialization [5][7]. - The report utilizes a Free Cash Flow to Firm (FCFF) valuation model, considering the promising commercialization prospects of its products [5]. Market Position - The company is positioned in the innovative pharmaceutical sector, focusing on addressing clinical challenges related to drug resistance with its pipeline products DZD8586 and DZD6008 [5].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The new investment in the Jiaxing automotive parts production base aims to enhance production capacity for thermal management systems, air suspension systems, sealing systems, and transmission systems to meet market demand and strengthen product service capabilities, ultimately improving the company's competitiveness in the automotive supply chain [2] - The project is expected to generate an annual output value of approximately RMB 1.5 billion and tax revenue of about RMB 60 million within five years after reaching production [2] Summary by Sections Company Growth Logic - The company is focusing on its core transmission system business while expanding into new growth areas. The Thailand production base is set to commence operations in 2025, targeting Southeast Asia and European and American markets, which will enhance the company's international market share [3] - The company is also making strides in domestic markets by replacing imports in the transmission system product supply chain, having already partnered with major brands like SAIC-GM Wuling and Geely [3] New Business Areas - In 2025, the company plans to establish a commercial vehicle parts production base in Jinan, focusing on key clients such as Heavy Truck and FAW [4] - The company aims to develop lightweight air spring products for new energy vehicles and plans to mass-produce components like battery pipeline systems and motor pipeline systems, creating a product matrix that includes air suspension systems and thermal management systems [4] - The company has secured a significant order worth RMB 170 million from a well-known domestic automaker for battery-related products, covering the project period from 2025 to 2031 [4] - The company is also exploring non-automotive sectors, including partnerships with drone manufacturers and collaborations in the rail transit and robotics fields [4] Financial Projections - Revenue projections for 2025, 2026, and 2027 are estimated at RMB 1.135 billion, RMB 1.375 billion, and RMB 1.691 billion, representing year-on-year growth rates of approximately 19.7%, 21.1%, and 23.0% respectively [5] - Net profit attributable to the parent company is projected to be around RMB 191 million, RMB 233 million, and RMB 288 million for the same years, with growth rates of approximately 17.9%, 22.1%, and 23.8% respectively [5] - The price-to-earnings ratio (PE) for the years 2025, 2026, and 2027 is expected to be approximately 22.4x, 18.3x, and 14.8x respectively [5]

Investment Rating - The report maintains an "Increase" rating for the oil and petrochemical industry [5] Core Viewpoints - International oil prices have shown a downward trend recently, with Brent crude settling at approximately $63.90 per barrel, down about 1.30% week-on-week, and down approximately 15.80% since the beginning of the year [19][21] - The North American active rig count has decreased week-on-week, with a notable year-on-year decline of 37 rigs, indicating a potential future increase in global drilling platform activity [31] - The refining sector shows promising recovery potential, with significant increases in price differentials for various products, suggesting improved profitability for refining companies [35] Market Performance - The CITIC oil and petrochemical sector rose approximately 0.37% during the week of May 26 to May 30, outperforming the Shanghai Composite Index by about 0.39 percentage points [16] - Key stocks that led the gains include Hengtong Co., Hongtian Co., and Compton, while stocks like Guangju Energy and Dongfang Shenghong saw declines [17][18] Investment Recommendations - The report identifies four main investment themes: 1. Focus on major energy state-owned enterprises like China National Petroleum and China National Offshore Oil Corporation, which are pushing for oil and gas exploration and green transformation [53] 2. Increased global upstream capital expenditure benefiting oil service companies such as CNOOC Services and Offshore Engineering [53] 3. Accelerated development of coal chemical projects and natural gas resources in Xinjiang, with a focus on companies like Baofeng Energy and New Natural Gas [53] 4. Refining companies planning new capacities and accelerating new material projects, recommending companies like Satellite Chemical and Hengli Petrochemical [53]

Industrial Performance - In the first four months, industrial enterprises' cumulative revenue increased by 3.2% year-on-year, down from 3.4% in the previous period[2] - Cumulative profit for industrial enterprises rose by 1.4% year-on-year, up from 0.8% previously, with April's profit showing a 3.0% increase year-on-year[2] - Private industrial enterprises achieved a cumulative profit growth of 4.3%, recovering from a decline of 0.3% in the previous period[2] Price and Inventory Trends - The Producer Price Index (PPI) for April showed a year-on-year decline of 2.7%, continuing a downward trend for two consecutive months[3] - Cumulative inventory of finished products in industrial enterprises increased by 3.9% year-on-year, down from 4.2% previously, marking the first decline since November 2024[3] PMI Insights - The manufacturing PMI for May was reported at 49.5%, slightly up from 49.0% in April, with the production index exceeding the critical threshold[3] - The new orders index for manufacturing PMI in May was 49.8%, an increase from 49.2% in April, while the export orders index rose to 47.5% from 44.7%[3] Employment and Sector Performance - The employment index for manufacturing in May was 48.1%, up from 47.9% in April, indicating a slight improvement in employment conditions[4] - The construction PMI for May was 51.0%, down from 51.9% in April, while the services PMI remained stable at 50.2%[4] Economic Outlook - June 18 is identified as a critical observation point for economic and policy developments, following the release of key economic data and the Federal Reserve's meeting[5] - The report highlights risks including external uncertainties and potential delays in counter-cyclical policies[6]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Deposit rate decline helps ease banks' net interest margin in the short - term and may lead deposits to flow into the stock and bond markets in the long - term. The decline of deposit rates marks a new stage of China's interest rate liberalization. The bond market presents structural opportunities, and investors should grasp short - term liquidity dividends while being vigilant about the mid - term stock - bond seesaw effect [4][67]. 3. Summary According to Related Catalogs 3.1 Interest - rate Bonds 3.1.1 Liquidity Observation - From May 16 to May 23, 2025, the central bank conducted 17,925.00 billion yuan of reverse repurchase operations, with 5,630.00 billion yuan of reverse repurchases maturing, resulting in a net injection of 12,295.00 billion yuan. Most inter - bank and exchange - market fund prices rose, with some exceptions like DR001 and DR007 [16][21][23]. 3.1.2 Primary Market Issuance - From May 19 to May 25, 2025, the primary market of interest - rate bonds issued 9,683.22 billion yuan, with a total repayment of 4,202.43 billion yuan of matured bonds and a net financing of 5,480.79 billion yuan. The issuance of local government bonds increased compared to the previous period [28]. 3.1.3 Secondary Market Trading - From May 16 to May 23, 2025, most treasury bond yields declined, and the term spread widened. The 10 - year treasury bond yield rose by 4.15BP, while the 1 - year, 3 - year, 5 - year, and 7 - year yields declined. Most China Development Bank bond yields also declined, with the 10Y - 1Y term spread narrowing [34]. 3.2 Credit Bonds 3.2.1 Primary Market Issuance - From May 19 to May 25, 2025, the issuance scale of credit bonds increased. A total of 881 credit bonds were newly issued, with a total issuance scale of 12,482.16 billion yuan, a net financing of 1,296.54 billion yuan. Asset - backed securities had the largest proportion in terms of the number of issuances, and financial bonds had the highest proportion in terms of issuance amount. AAA - rated bonds accounted for 78.13% of the total issuance scale. The financial industry had the largest number of bond issuances [2][43][45]. 3.2.2 Secondary Market Trading - From May 16 to May 23, 2025, the maturity yields of credit bonds declined overall. Among them, the 5 - year AA - rated urban investment bonds had the largest decline of 8.84BP, and the 7 - year AAA - rated medium - and short - term notes had the largest decline of 6.83BP [2][53]. 3.2.3 Weekly Credit Default Event Review - From May 19 to May 25, 2025, the credit bonds of one enterprise defaulted [56]. 3.3 Weekly Observation of Major Asset Classes 3.3.1 Most European and American Stock Indices Declined - From May 16 to May 23, 2025, the three major US stock indices declined. European stock indices were divided, and most Asia - Pacific stock indices declined [3][57][58]. 3.3.2 US Treasury Yields Rose Overall - From May 16 to May 23, 2025, the yields of 1, 3, 5, 7, and 10 - year US Treasury bonds rose, and the 10Y - 1Y term spread widened [3][60]. 3.3.3 The US Dollar Index Weakened, and Non - US Currencies Strengthened - From May 16 to May 23, 2025, the US dollar index fell by 1.84%, and non - US currencies strengthened [3][62]. 3.3.4 Crude Oil Prices Declined, and Gold Prices Rose - From May 16 to May 23, 2025, gold prices rose, and crude oil prices declined [3][64]. 3.4 Investment Suggestions - Deposit rate decline helps ease banks' net interest margin in the short - term and may lead deposits to flow into the stock and bond markets in the long - term. Investors should grasp short - term liquidity dividends in the bond market, be vigilant about the mid - term stock - bond seesaw effect, and pay attention to the upward pressure on certificate of deposit rates [4][67].

Investment Rating - The report maintains an "Accumulate" rating for the petrochemical industry [5] Core Viewpoints - The international oil prices have seen a decline, with Brent crude settling at approximately $64.78 per barrel, down 1.16% week-over-week, and WTI crude at about $61.53 per barrel, down 1.85% week-over-week [18][20] - Despite a projected increase in U.S. crude oil production over the next two years, international oil prices are expected to remain stable at mid-high levels, benefiting upstream oil and gas companies [29] - The North American active rig count has decreased week-over-week, with a notable year-over-year decline, indicating potential growth in the oil service sector [30] - The refining sector shows signs of recovery, with significant price differentials for products like gasoline and ethylene, suggesting improved performance for refining companies [34] - Polyester market dynamics indicate a recovery potential for long filament enterprises, with an increase in POY price differentials and overall inventory levels rising [42] Summary by Sections Market Performance - The CITIC petrochemical sector declined by approximately 0.18% during the week of May 19-23, 2025, outperforming the Shanghai Composite Index by about 0.39 percentage points [15] - Key stocks that led the gains included Bohui Co., Huajin Co., and China National Offshore Oil Corporation, while stocks like Runbei Hangke and Meihua Shihua saw declines [16][17] Upstream Oil & Gas Sector - The report highlights that U.S. crude oil production is expected to reach 13.4 million barrels per day in 2025 and nearly 13.5 million barrels per day in 2026, indicating a robust supply outlook [31] - The report suggests monitoring companies like China National Petroleum and China National Offshore Oil for potential investment opportunities [29] Oil Service Sector - The report notes a decrease in the number of active drilling rigs in North America, with a year-over-year drop of 34 rigs, while global drilling platform numbers are expected to have room for growth [30] - Companies such as CNOOC Services and Haiyou Engineering are recommended for investment consideration [30] Midstream Refining Sector - Domestic refined oil prices have seen slight increases, with gasoline prices rising by approximately 19 RMB/ton and diesel prices by about 131 RMB/ton [34] - The report indicates a significant recovery potential for refining companies, particularly those actively planning new capacities [34] Terminal Polyester Sector - The report indicates that the POY price differential has increased by approximately 14 RMB/ton, suggesting a recovery potential for long filament companies [42] - Companies like Xinfengming and Tongkun Co. are highlighted as potential investment opportunities [42] Investment Recommendations - The report identifies four main investment themes within the petrochemical sector, including the focus on energy central enterprises, growth in upstream capital expenditures, accelerated resource development in Xinjiang, and new capacity planning by refining companies [54]