Market Trends - The overall market showed positive performance with the Shanghai Composite Index closing at 3,285.87, up by 0.54% [1] - The Shenzhen Component Index increased by 0.85%, while the ChiNext Index rose by 0.30% [1] Agricultural Sector - The agricultural sector is entering the Q3 performance realization period, with the pig farming sector experiencing a decline in prices [2] - As of October 18, the average price of external three yuan pigs in Sichuan, Guangdong, and Henan was 17.84, 18.45, and 17.37 yuan/kg, reflecting a week-on-week decrease of 3.52%, 2.89%, and 2.53% respectively [2] - The average pork price increased slightly to 25.08 yuan/kg, up by 0.24% week-on-week [2] - The profitability for self-breeding pigs was 346.01 yuan/head, while for purchased piglets it was 27.79 yuan/head [2] - The report suggests that the pig farming sector's adjustment phase may be nearing its end, recommending investments in companies like Wen's Foodstuffs, Tangrenshen, and Dongrui [2] Electronic Industry - TSMC's Q3 2024 performance exceeded expectations, driven by strong AI demand, with revenue reaching 759.69 billion NTD, a 39% year-on-year increase [4][5] - The semiconductor sector saw significant growth, with the semiconductor index rising by 10.07% [4] - The report highlights the ongoing strong demand for AI technologies, indicating a positive outlook for the semiconductor market [7] New Energy Systems - Solid-state batteries are identified as a key development direction for high-capacity secondary batteries, with significant advancements in performance and cost expected [10][11] - The report notes that solid-state batteries have clear application scenarios in high-end long-range vehicles and e-VTOLs, with production expected to ramp up significantly by 2026 [10][11] - Major companies like CATL and Qingtao Energy are leading the development of solid-state battery technologies [11][12] Chemical Raw Materials - BASF has postponed the resumption of production for vitamins A and E, which is expected to support prices in the market [9][10] - The report indicates that the domestic demand for vitamin E is anticipated to improve, with exports increasing by 31.35% year-on-year from January to August 2024 [10] - The market regulatory authority is actively supporting the development of the synthetic biology industry, which is projected to reach nearly 2 trillion yuan by 2033 [10] Company Insights - Haida Group reported a revenue of 84.861 billion yuan for the first three quarters of 2024, with a net profit increase of 60.95% year-on-year [15] - The company’s feed business has gained market share despite a slight decline in overall revenue due to lower feed prices [15] - The report suggests a positive outlook for Haida Group's profitability, projecting net profits of 43.77 billion yuan for 2024 [15][16] Investment Recommendations - The report recommends focusing on companies with strong global strategies and brand performance, particularly in the pet food sector [14] - It suggests monitoring the performance of companies like Zhongchong Co. and the ongoing adjustments in their self-owned brands [14] - The solid-state battery sector is highlighted for potential investment opportunities, particularly in companies leading technological advancements [12]

Investment Rating - The report maintains an "Accumulate-A" rating for the company [1] Core Views - The company has completed adjustments to its proprietary brands and is poised for further growth, particularly in overseas markets [3] - The company reported a revenue of 1.232 billion yuan in Q3 2024, representing a year-on-year increase of 23.55%, and a net profit attributable to shareholders of 140 million yuan, up 73.18% year-on-year [2] - The company is focusing on expanding its proprietary brands and enhancing profitability through a global market strategy [4] Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 3.189 billion yuan, a year-on-year increase of 17.56%, and a net profit of 242 million yuan, up 42.17% year-on-year [3] - The company’s gross margin is projected to improve from 26.3% in 2023 to 27.2% in 2024, with net profit margins also expected to rise [5][8] - The earnings per share (EPS) for 2024 is estimated at 1.02 yuan, with projections of 1.26 yuan and 1.51 yuan for 2025 and 2026 respectively [4][5] Business Strategy and Outlook - The company is actively expanding its global supply chain and customer base, with a focus on its proprietary brands, including "Wang Pi" and "Zeal" [3][4] - The company has made strategic investments in the pet industry through multiple funds, with a notable return from its investment in Shandong Shuai Ke [3] - The report highlights the importance of the company's ongoing brand expansion and the anticipated positive impact on domestic profitability [3][4]

Investment Rating - The report maintains a "Buy-A" rating for the company Hai Da Group (002311.SZ) [1][2] Core Views - The overall fundamentals of the company continue to show a recovery trend, with a slight decline in revenue but a significant increase in net profit [1][2] - The company's market share in the feed business has further improved, despite a decrease in overall industry production [2] - The domestic pig farming business has shown a recovery in fundamentals, with rising prices and improved profitability [2] Financial Performance Summary - For the first three quarters of 2024, the company achieved operating revenue of 848.61 billion yuan, a year-on-year decrease of 2.38%, while net profit attributable to shareholders was 36.24 billion yuan, a year-on-year increase of 60.95% [1] - The earnings per share (EPS) for the first three quarters was 2.18 yuan, with a return on equity (ROE) of 17.28%, up by 5.26 percentage points year-on-year [1] - The company expects net profit attributable to shareholders to reach 43.77 billion yuan in 2024, with corresponding EPS of 2.63 yuan [2][3] Market and Industry Analysis - The total production of industrial feed in the country decreased by 4.3% year-on-year, while the average prices of various feed types also saw declines [2] - The company’s feed sales growth rate remains above the industry average, indicating a gain in market share [2] - The average price of domestic pigs rose significantly in Q3, leading to improved profitability for pig farming operations [2] Future Projections - The company forecasts operating revenue to grow to 135.43 billion yuan in 2024, with a year-on-year growth rate of 16.6% [3] - Expected net profit for 2025 and 2026 is projected at 5.39 billion yuan and 6.33 billion yuan, respectively, with corresponding EPS of 3.24 yuan and 3.80 yuan [3][4]

Investment Rating - The report maintains an investment rating of "Outperform the Market" for the electronics industry [1][3]. Core Insights - The report highlights that TSMC's Q3 2024 performance exceeded expectations, driven by strong AI demand, while ASML's latest results indicate a slowdown in global manufacturing capacity growth. Despite this, the outlook for AI development remains optimistic in the short to medium term, positioning AI as a key investment theme [3][37]. - The report suggests focusing on domestic substitutes for equipment, materials, and components, as well as high-performance chips driven by AI technology and hardware upgrade opportunities stemming from the AI application boom [3]. Summary by Sections Market Overview - The overall market saw an increase during the week of October 14-18, 2024, with the Shanghai Composite Index rising by 1.36%, Shenzhen Component Index by 2.95%, ChiNext Index by 4.49%, and the Sci-Tech Innovation 50 Index by 8.87%. The Shenwan Electronics Index increased by 9.65%, while the Wind Semiconductor Index rose by 10.07%. In contrast, the Philadelphia Semiconductor Index fell by 2.39%, and the Taiwan Semiconductor Index increased by 3.12% [1][7][10]. Sector Performance - Among the sub-sectors, "Other Electronics" led with a weekly increase of 13.66%, followed by Semiconductors at 12.07% and Digital Chip Design at 11.84%. The top five stocks by increase were Guangzhi Technology (+148.86%), Jingwei Huikai (+105.35%), Jieban Technology (+81.63%), Kaiwang Technology (+65.48%), and Hualing Co. (+63.00%). Conversely, the top five stocks by decrease were Guanghua Technology (-7.26%), *ST Meixun (-6.55%), Lian Technology (-6.12%), Lier Technology (-5.56%), and Transsion Holdings (-5.50%) [1][15]. Company News - ASML reported Q3 2024 net sales of €7.5 billion, with a gross margin of 50.8% and net profit of €2.1 billion. New orders totaled €2.6 billion, with €1.4 billion from EUV lithography machines. The management indicated that while AI continues to show strong growth potential, recovery in other segments will take longer than expected, leading to cautious customer sentiment. ASML expects Q4 2024 revenue between €8.8 billion and €9.2 billion, with a gross margin of 49% to 50% [1][36]. - TSMC's Q3 2024 revenue reached NT$759.69 billion, a year-on-year increase of 39.0% and a quarter-on-quarter increase of 12.8%. Net profit was NT$325.26 billion, up 54.2% year-on-year and 31.2% quarter-on-quarter, with a gross margin of 57.8% and a net margin of 42.8%. Advanced technologies (7nm and above) accounted for 69% of wafer revenue, with 3nm shipments at 20%, 5nm at 32%, and 7nm at 17%. The company anticipates Q4 revenue between $26.1 billion and $26.9 billion, with a gross margin of 57.0% to 59.0% [1][37].

Investment Rating - The report indicates a positive outlook on the new stock market, with a focus on recent IPOs and their performance [1][10]. Core Insights - The new stock market has seen increased activity, with a significant rise in the first-day gains and opening valuations of new stocks in October compared to September [1][10]. - The report highlights that 26 new stocks listed in the past six months recorded positive gains, representing 81.25% of the total, a notable increase from 31.25% previously [10]. - The report emphasizes the performance of specific sectors, including the STAR Market and the ChiNext, where new listings have shown substantial first-day gains [1][17]. Summary by Sections 1. New Stock Market Activity - In October, the first-day gains and opening valuations of new stocks on the ChiNext increased compared to September [1][10]. - The STAR Market had no new listings last week, but stocks like Longtu Guangzhao and Dameng Data saw weekly gains exceeding 10% [11][12]. - The ChiNext saw the listing of Shangda Shares and Top Cloud Agriculture, both achieving first-day gains of 800% and high opening valuations of 146.63 and 90.90 times, respectively [17][18]. - The main board had no new listings last week, but stocks like Zhongxin Shares and Ananda recorded weekly gains over 3% [21][23]. 2. Key New Stocks - The report lists key new stocks that have been recently issued or are awaiting listing, highlighting their core products and market potential [26][30]. - Notable companies include Kema Technology (ceramic heaters), Longtu Guangzhao (semiconductor masks), and Dameng Data (database software) [30][32]. 3. Valuation Trends - The report notes that the first-day TTM-PE (Trailing Twelve Months Price to Earnings) for the STAR Market in October was 19.87 times, up from 18.55 times in September [13][23]. - The ChiNext's first-day TTM-PE in October was 15.44 times, an increase from 13.95 times in September, indicating a rising trend in valuations [19][23]. - The main board's first-day TTM-PE was 14.70 times in September, up from 10.02 times in August, reflecting a similar upward trend [23][24]. 4. Market Comparisons - The Wind Near-term New Stock Index showed a slight increase in valuation compared to the ChiNext, indicating a competitive market environment [25].

Industry Overview - Solid-state batteries are considered the future direction for high-capacity secondary batteries, with semi-solid-state batteries already being deployed in vehicles. The demand for solid-state batteries is clear in high-end long-range vehicles and e-VTOL applications [1] - Solid-state batteries theoretically offer higher energy density, better thermal stability, and longer cycle life compared to traditional lithium-ion batteries. Semi-solid-state batteries reached a deployment volume of 2.2GWh in the first half of 2024, indicating initial market penetration [1] - Major companies like CATL, GAC Aion, and others are actively promoting the industrialization of solid-state batteries, with mass production expected by 2027 [1] Technology and Material Systems - Solid-state batteries are categorized into polymer, oxide, and sulfide systems. By 2030, the cost of solid-state batteries is expected to decrease by 29%, potentially becoming cheaper than current liquid batteries [1] - Oxide-based electrolytes offer good overall performance but have lower conductivity, while sulfide-based electrolytes are theoretically the best but face challenges in thermal stability and production complexity [1] - Polymer electrolytes are the most mature technology, with advantages in flexibility and cost, but they suffer from low ionic conductivity at room temperature and limited thermal stability [1] Market Applications - Solid-state batteries are expected to be first adopted in high-end long-range vehicles and e-VTOLs due to their high energy density. Semi-solid-state batteries have already been deployed in several vehicle models, including the Zhiji L6 and GAC Aion's models [1][18] - The e-VTOL sector, which requires higher energy density, power, and safety, is a key application area for solid-state batteries. Companies like CATL and Lifeng Battery are actively developing batteries for this market [19][23] Industry Leaders and Their Progress - **CATL**: Leading in polymer and sulfide-based solid-state battery development, with a 10Ah verification platform established. The company aims to achieve a 7-8 out of 9 maturity level by 2027, enabling small-scale production [2][54] - **Qingtao Energy**: Focused on oxide and sulfide-based solid-state batteries, with plans to achieve mass production by 2027. The company has partnered with SAIC to develop solid-state batteries for vehicles, with a peak charging power of 400kW [58][59] - **Weilan New Energy**: Delivered 360Wh/kg semi-solid-state batteries to NIO in 2023 and has a planned production capacity exceeding 100GWh. The company is also developing next-generation solid-state batteries with higher energy density [60] Cost and Future Projections - The cost of solid-state batteries is expected to drop below that of current liquid batteries by 2030, with a projected cost reduction of 29%. Current solid-state battery costs are around 0.54 yuan/Wh, but this is expected to decrease to 0.39 yuan/Wh by 2030 [50][51] - The global solid-state battery market is projected to reach 614.1GWh by 2030, with a penetration rate of around 10% in the overall lithium battery market. The market size is expected to exceed 250 billion yuan, primarily driven by semi-solid-state batteries [25]

Investment Rating - The report maintains a "Leading the Market-B" rating for the new materials sector [2]. Core Insights - BASF has postponed the resumption of production for vitamins A and E, which is expected to support prices due to a tightening supply situation. Domestic demand for vitamin E is anticipated to improve, with exports increasing by 31.35% year-on-year from January to August 2024 [2]. - The synthetic biology industry is projected to reach nearly 2 trillion yuan by 2033, with a CAGR of 16.6% from 2023 to 2033. The report suggests focusing on platform-type leading companies in the synthetic biology sector [4]. Summary by Sections 1. Secondary Market Performance - The new materials sector index increased by 5.39%, outperforming the ChiNext index by 0.91%. The synthetic biology index decreased by 0.88%, while electronic chemicals rose by 3.65% [2][11]. 2. Industry Chain Data Tracking 2.1 Amino Acids - Prices for valine (12,600 yuan/ton), arginine (30,000 yuan/ton), and methionine (20,150 yuan/ton) remained stable, while tryptophan decreased by 1.80% to 54,500 yuan/ton [1]. 2.2 Degradable Plastics - Prices for PLA (18800 yuan/ton) and PBS (20,500 yuan/ton) showed a decrease of 2.38% [1]. 2.5 Vitamins - Vitamin A price decreased by 27.91% to 155,000 yuan/ton, while vitamin E decreased by 5.66% to 125,000 yuan/ton [1]. 2.3 Industrial Gases - Prices for UPSSS grade hydrofluoric acid remained stable at 11,000 yuan/ton [1]. 3. Industry News - The State Administration for Market Regulation is conducting research to support the development of the synthetic biology industry, indicating future targeted measures to promote healthy growth [3][4].

Market Trends - The report highlights the recent performance of major indices, with the Shanghai Composite Index closing at 3,268.11, up 0.20%, and the Shenzhen Component Index at 10,470.91, up 1.09% [1] - The report notes that the capital market is supported by two monetary policy tools, indicating a stronger-than-expected commitment to support the market [8] Non-Bank Financial Sector - The report discusses the Financial Street Forum, emphasizing the need for a "long money, long investment" policy framework to enhance the capital market [3][4] - It outlines the importance of promoting long-term capital into the market and improving the quality of listed companies through better governance and transparency [5][6] - The report mentions the introduction of two innovative financial tools: SFISF and stock repurchase loans, aimed at enhancing market liquidity [7][8] New Stock Market Activity - The report indicates an increase in new stock market activity, with 26 new stocks recording positive gains, representing 81.25% of the total [2] - It highlights significant first-day gains for new stocks on the ChiNext board, with some stocks seeing increases of up to 800% [2] - The report suggests that the high valuations of newly listed stocks may compress the secondary market space [2] Coal Industry Insights - The report provides insights into the coal supply and demand dynamics, noting a slight increase in coal supply in September, with a total production of 4.14 billion tons, up 4.40% year-on-year [9][10] - It highlights the ongoing pressure on downstream demand, particularly in the manufacturing sector, with fixed asset investment growing by 3.4% year-on-year [9] - The report discusses the pricing trends in the coal market, indicating a mixed performance with some prices showing a decline [10][11] Transportation Equipment Sector - The report notes a significant increase in railway passenger traffic, with 33.3 billion passengers transported from January to September, a 13.5% increase year-on-year [12] - It highlights the record high freight volume in Q3 2024, with 10.04 billion tons of goods transported, reflecting a 3.8% year-on-year growth [12] - The report suggests that the demand for railway equipment, particularly for high-speed trains, is expected to remain strong due to ongoing infrastructure investments [13]

Investment Rating - The investment rating for the company is AA- for its convertible bond, with a bond balance of 637 million yuan, accounting for 87.26% of the total issuance [2]. Core Insights - The company, 运机集团 (001288.SZ), is a leading manufacturer of long belt conveyors in China, holding approximately 70% market share in the segment of conveyors with a length of 1 kilometer or more. The latest total market capitalization is 4.509 billion yuan, with a year-on-year increase in net profit attributable to shareholders of 23.98% [1]. - The company has seen a historical high in its order backlog, with 60% of these orders coming from overseas markets. The "Belt and Road" initiative has significantly boosted overseas orders, particularly in industries such as ports, mining, and metallurgy [1]. - A strategic partnership with Huawei was established in July 2024, aiming to leverage AI solutions in the mining and port sectors, which is expected to drive rapid growth for the company [1]. Summary by Sections Company Overview - 运机集团 is recognized as the leading manufacturer of long belt conveyors in China, with a significant competitive edge in terms of product specifications and pricing compared to international competitors like Thyssenkrupp [1]. Financial Performance - The company is projected to experience substantial growth in net profit, with expected year-on-year increases of 83.4%, 48.8%, and 41.2% for the years 2024 to 2026 [3]. Convertible Bond Analysis - The 运机 convertible bond is characterized as a high-priced, low-premium bond, making it particularly attractive to high-risk tolerant investors during the protection period [3]. - The reasonable valuation for the 运机 convertible bond is estimated to be between 176 and 187 yuan, assuming the stock price remains unchanged and not considering forced redemption [4].

Investment Rating - The non-bank financial industry is rated as "Leading the Market" with an expected increase exceeding the benchmark index by over 10% [7]. Core Insights - The report emphasizes the importance of optimizing the institutional environment for long-term investment, focusing on enhancing the quality of listed companies and protecting the rights of minority shareholders [4][6]. - It highlights the launch of innovative financial tools, such as SFISF and stock repurchase loans, aimed at improving market liquidity and supporting capital market stability [2][3]. - The report advocates for the cultivation of "patient capital" to support the development of new productive forces, particularly in strategic emerging industries [4][6]. Summary by Sections Long-term Investment Policy Framework - The report discusses the need to promote long-term capital entry into the market and improve the policy framework supporting "long money, long investment" [1][4]. - It calls for enhancing the governance and transparency of listed companies, increasing dividends and buybacks, and ensuring market value management responsibilities are met [1][4]. Financial Support for Innovation - The report outlines the necessity of a robust financial support system for technological innovation, aiming to create a conducive financial market ecosystem [1][4]. - It emphasizes the importance of nurturing "patient capital" that aligns with the characteristics of new productive forces, which often require long-term investment [4][6]. Market Liquidity Improvement - The initiation of SFISF and stock repurchase loans is expected to significantly enhance market liquidity, with the first phase of SFISF already seeing applications exceeding 200 billion yuan [2][3]. - The report notes that the People's Bank of China has reduced the reserve requirement ratio, which is anticipated to further improve liquidity conditions in the capital market [4].