Investment Rating - The report assigns an "Accumulate-A" rating for the company, marking its first coverage [8]. Core Views - The company has a strong foundation in temperature, pressure, and oxygen sensors, with significant growth potential in force sensors for robotics applications [1]. - The company has successfully expanded its customer base, leading to increased product sales and steady revenue growth, with a projected revenue CAGR of around 20% from 2020 to 2024 [35]. - The pressure sensor segment is expected to surpass temperature and thermal resistors as the company's primary revenue source by 2024 [23]. Summary by Sections Company Overview - The company specializes in the research, production, and sales of thermal resistors, temperature sensors, oxygen sensors, and pressure sensors, with a comprehensive product range and advanced R&D capabilities [16][6]. - The company has established a strong market position with a diverse customer base, including major domestic and international companies [16]. Market Performance - The company’s revenue is projected to reach 1.17 billion yuan in 2025, with a growth rate of 24.5%, and net profit is expected to be 112 million yuan, reflecting a growth rate of 36.1% [8][10]. - The gross margin has remained stable around 30% from 2021 to 2023, with slight fluctuations due to production capacity and new factory amortization [39][38]. Product Segments - The thermal resistor and temperature sensor markets are expected to grow steadily, with the global NTC market projected to reach 5.1 billion yuan by 2030 [44]. - The pressure sensor market is anticipated to grow significantly, with the global market for medium and low-pressure sealed pressure sensors expected to reach 589 million USD by 2032 [5]. - The oxygen sensor market is also expanding, with a projected market size of 7.417 billion USD by 2032, driven by applications in automotive and medical sectors [7]. Financial Projections - The company’s earnings per share (EPS) are projected to be 1.14, 1.45, and 1.83 yuan for 2025, 2026, and 2027, respectively, with corresponding price-to-earnings (P/E) ratios of 75.7X, 59.6X, and 47.3X [8][10]. - The company is expected to maintain a stable gross margin across its product lines, with pressure sensors, thermal resistors, and oxygen sensors projected to have gross margins of 31.61%, 33.15%, and 25.74% in 2024 [39].

Core Viewpoints - The report highlights the trend of domestic companies expanding overseas due to the easing of trade tensions between China and the US, with a focus on the advantages of the domestic industrial supply chain and engineering workforce [6] - The year 2025 is identified as a pivotal year for the mass production of humanoid robots, presenting significant opportunities for domestic supply chains [6][7] - The report emphasizes the expected growth in the photovoltaic industry, with projections for increased installed capacity and rising prices across the supply chain [7][11] Industry Commentary: Machinery - The machinery industry is experiencing a shift as leading companies accelerate their overseas expansion in response to new US tariff policies [6] - Key companies to watch include Giant Star Technology, Changrun Co., and Honghua Digital Science, which are positioned to benefit from this trend [6] - The report also notes the potential for growth in the humanoid robot sector, with significant contracts awarded for production services [6] Industry Commentary: Electric Equipment and New Energy - The report discusses the recent launch of a new humanoid robot by Yushun Technology, which is expected to drive demand in both commercial and industrial sectors [7] - The photovoltaic industry is projected to see an increase in installed capacity, with estimates for 2025 revised upwards to 270-300 GW in China [7] - The report tracks price movements in the photovoltaic supply chain, noting significant increases in polysilicon and silicon wafer prices, indicating a bullish outlook for the sector [8][11] Investment Recommendations - The report recommends focusing on companies involved in humanoid robotics and the photovoltaic supply chain, including Jack Co., Hengli Hydraulic, and Zhejiang Rongtai [6][11] - It suggests that investors pay attention to the automation of logistics and textile equipment, highlighting companies like Hangcha Group and Jack Co. for their innovative approaches [6] - The report also identifies key players in the photovoltaic sector, such as Aiko and Longi Green Energy, as potential investment opportunities [11]

Investment Rating - The report maintains an "Outperform" rating for the machinery sector, indicating expected performance above the market average [1]. Core Insights - The report highlights the trend of companies expanding overseas and identifies 2025 as the year of mass production for humanoid robots, presenting hardware investment opportunities [1][3]. - The easing of trade tensions between China and the US is expected to support the growth of domestic companies in overseas markets, particularly in the tool market where relocation to the US is challenging due to cost and efficiency advantages [3]. - Key companies to watch include Giant Technology, Changrun Co., Honghua Digital Science, and others, which are positioned to benefit from these trends [3][4]. Summary by Sections Recommended Stocks - The report lists preferred stocks with ratings: - Jack Co. (603337.SH) - Buy-A - Hengli Hydraulic (601100.SH) - Buy-A - Zhejiang Rongtai (603119.SH) - Accumulate-A - Qiaocheng Ultrasonic (688392.SH) - Buy-A - Honghua Digital Science (688789.SH) - Buy-A - Tianzhun Technology (688003.SH) - Buy-A - Jiechang Drive (603583.SH) - Accumulate-A [2][10]. Industry Key Data Tracking - Forklifts: In June 2025, 137,570 units were sold, a 23.1% increase year-on-year. For the first half of 2025, sales totaled 739,334 units, up 11.7% [13]. - Excavators: June 2025 sales reached 18,804 units, a 13.3% increase. Total sales for the first half were 120,520 units, up 16.8% [14]. - Automotive Cranes: June sales were 1,649 units, down 5.28%. Total sales for the first half were 10,752 units, down 8.4% [17]. - Tower Cranes: June sales were 437 units, down 44.8%. Total sales for the first half were 2,771 units, down 38% [21]. - Loaders: June sales were 12,014 units, up 11.3%. Total sales for the first half were 64,769 units, up 13.6% [22]. - Metal Cutting Machine Tools: June production was 70,500 units, up 12.7%. Total production for the first half was 403,000 units, up 13.5% [24]. - Industrial Robots: June production was 74,764 units, up 37.9%. Total production for the first half was 379,000 units, up 35.6% [28].

Investment Rating - The report maintains an investment rating of "Synchronize with the market - A" for the electric equipment and new energy industry [1] Core Viewpoints - The report highlights the continuous upward trend in prices within the photovoltaic industry chain, driven by supply-side improvements and increasing demand [1][4] - The global photovoltaic installation forecast for 2025 has been adjusted upwards to 570-630 GW, with China's forecast also increased to 270-300 GW [4] - The report emphasizes the importance of technological advancements in humanoid robots and their potential impact on the market [3] Summary by Sections Investment Highlights - The report lists preferred stocks with ratings, including: - Aishuo Co., Ltd. (600732.SH) - Buy-B - Longi Green Energy (601012.SH) - Buy-B - Daqian Energy (688303.SH) - Buy-B - Fulete (601865.SH) - Buy-A - Hengdian East Magnet (002056.SZ) - Buy-A - Sunshine Power (300274.SZ) - Buy-A - Canadian Solar (688472.SH) - Buy-A - Deyang Co., Ltd. (605117.SH) - Buy-A - Langxin Group (300682.SZ) - Buy-B - Quartz Co., Ltd. (603688.SH) - Buy-A [2] Market Performance - The report notes that as of June 2025, the cumulative installed capacity of solar power in China reached 110 million kW, representing a year-on-year growth of 54.2% [4] - The average price of polysilicon has increased by 13.5% to 42.0 CNY/kg, while the average price of silicon wafers has also seen significant increases [5][6] Price Tracking - The report provides detailed price tracking for various components in the photovoltaic supply chain, indicating a general upward trend in prices for polysilicon, silicon wafers, battery cells, and modules [5][6][7][8] Investment Recommendations - The report recommends focusing on companies with new technology directions, supply-side improvements, overseas layouts, and domestic substitution strategies, including Aishuo Co., Ltd., Longi Green Energy, Daqian Energy, and others [9]

Group 1: Market Overview - The domestic market indices showed slight increases, with the Shanghai Composite Index closing at 3,597.94, up 0.12% [4] - The Shenzhen Component Index closed at 11,217.58, up 0.44%, while the ChiNext Index rose by 0.96% to 2,362.60 [4] Group 2: Industry Insights - Direct Air Capture (DAC) - The DAC technology is gaining traction as a significant carbon removal method, with advantages such as smaller scale, modular construction, and flexible site selection [6][7] - The global DAC market is projected to exceed $1.7 billion by 2030, with the U.S. demand expected to surpass 100 million tons by 2050 [6] - The U.S. Department of Energy plans to support DAC facilities with up to $1.8 billion in funding, alongside tax credits of up to $180 per ton of CO₂ captured [6] - The average cost of DAC carbon removal has decreased by 54% from 2023, reaching $316 per ton in 2024 [6][7] - Solid adsorbents are identified as the core of DAC technology, with 65% of DAC companies using or developing solid adsorbents [7][9] Group 3: Company Analysis - Zhejiang Rongtai - Zhejiang Rongtai has shown steady growth in its main business, with a focus on expanding its robotics segment through strategic acquisitions [17][19] - The company reported revenue growth from 522 million yuan in 2021 to 1.135 billion yuan in 2024, with a compound annual growth rate of 29.6% [19] - The acquisition of a 15% stake in Jinli Transmission is expected to enhance its robotics product matrix and strengthen its market position [19] Group 4: Industry Insights - Biopharmaceuticals - The combination of PD-(L)1 monoclonal antibodies with ADCs is anticipated to become a standard first-line treatment for various tumors, enhancing overall response rates and overcoming resistance [14][16] - Clinical trials indicate that PD-(L)1+ADC combinations show promising results in non-small cell lung cancer (NSCLC) and triple-negative breast cancer (TNBC) [16][18] - The PD-L1 ADC HLX43 has demonstrated significant anti-tumor efficacy in late-stage NSCLC, with a notable overall response rate [16][18] Group 5: Retail Sector Insights - Chow Tai Fook - Chow Tai Fook reported a 1.9% decline in retail value for FY26Q1, with a 3.3% drop in mainland China, while Hong Kong and overseas markets saw a 7.8% increase [10][11] - The company has optimized its retail network, closing 311 stores in mainland China, while maintaining a strong performance in high-margin gold products [10][11]

Investment Rating - The report maintains an investment rating of "Leading the Market" for the Direct Air Capture (DAC) industry, indicating an expected growth rate exceeding 10% compared to the benchmark index [3][9]. Core Insights - The DAC technology offers significant advantages in carbon removal by capturing CO₂ directly from the atmosphere, with the captured CO₂ being permanently transformed, stored, or utilized. Compared to traditional carbon capture methods, DAC is more flexible and easier to deploy due to its smaller scale and modular construction [2][3]. - The DAC market is projected to exceed USD 1.7 billion by 2030, with a compound annual growth rate (CAGR) of 60.9% from USD 62 million in 2023 [3][4]. - The average global DAC carbon removal cost has decreased by 54% from 2023, reaching USD 316 per ton in 2024, which is lower than previously estimated costs [4][5]. Summary by Sections Market Performance - The DAC industry is supported by significant government backing in Europe and the U.S., with the U.S. Department of Energy announcing up to USD 1.8 billion in funding for DAC facilities in 2024 [3][4]. - Major companies like Microsoft and TikTok have signed contracts for carbon removal, indicating strong demand for DAC services [3]. Technology and Cost - Solid adsorption materials are identified as the core component of DAC technology, with a market size projected to reach approximately USD 500 million by 2030 [5]. - The report highlights that 65% of DAC companies are using or developing solid adsorbents, which are more energy-efficient compared to liquid methods [5]. Investment Recommendations - The report suggests focusing on leading domestic companies in the solid adsorption materials sector, particularly Blue Sky Technology, which has established strategic partnerships and is scaling up production [5].

Investment Rating - The report maintains an investment rating of "Synchronize with the market" for the textile and apparel industry [1] Core Insights - The textile and apparel industry has shown a mixed performance in recent months, with notable developments in the jewelry sector, particularly for Chow Tai Fook, which reported a narrowing decline in same-store sales [3][19] - The retail value for Chow Tai Fook in FY26Q1 decreased by 1.9% year-on-year, with a 3.3% decline in mainland China, while the Hong Kong, Macau, and overseas markets saw a 7.8% increase [19] - The performance of gold products in mainland China has been strong, contributing positively to sales gross margins, with retail value for high-margin priced gold products increasing by 20.8% year-on-year [20] Summary by Sections 1. Recent Observations - Chow Tai Fook's same-store sales decline has continued to narrow, with a reported 3.3% decrease in mainland China and a 2.2% growth in the Hong Kong and Macau markets [3][5][19] 2. Market Performance - The textile and apparel sector saw a 1.45% increase this week, lagging behind the broader market performance [10][23] - The SW textile manufacturing sub-sector rose by 2.34%, while the apparel and home textile sectors increased by 1.37% [10][24] 3. Company Performance - Chow Tai Fook closed 311 stores in mainland China during FY26Q1, with a total of 5,963 stores remaining in the region [6][22] - The average selling price of gold jewelry in mainland China increased from 6,100 HKD to 6,900 HKD, while the average price for embedded products rose from 8,500 HKD to 9,600 HKD [21] 4. Industry Data Tracking - In the first half of 2025, China's textile and apparel exports saw a slight increase of 1.8%, while furniture exports decreased by 7% [51] - The retail sales of gold and silver jewelry grew by 6.1% year-on-year in June 2025, indicating stable demand in the market [59] 5. Industry News - LVMH reported a 4% decline in total revenue for the first half of 2025, but noted a significant improvement in demand in mainland China [70][71] - Moncler Group's revenue remained stable, with a slight increase of 1% year-on-year, reflecting resilience in the luxury market [73]

Investment Rating - The report assigns an "Accumulate-A" rating for the company, marking its first coverage [1][8]. Core Views - The company's main business is experiencing steady growth, particularly in the transmission sector, which is strategically positioned for future opportunities [1][8]. - The acquisition of a 15% stake in Jinli Transmission expands the company's robotics business footprint, enhancing its product matrix [2][8]. - The company has a robust customer base, including major international automotive manufacturers, which supports its strong cash flow and profitability [4][5][8]. Summary by Relevant Sections Company Overview - The company specializes in high-temperature insulation mica products, primarily for the new energy vehicle sector, with a revenue growth from 522 million to 1.135 billion from 2021 to 2024, reflecting a compound annual growth rate (CAGR) of 29.6% [4][8]. - The net profit increased from 104 million to 230 million during the same period, with a CAGR of 30.2% [4][8]. Financial Performance - As of March 31, 2025, the company reported a gross margin of approximately 35% and a net margin of around 20% [4][8]. - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 0.87, 1.15, and 1.52 respectively, with corresponding price-to-earnings (P/E) ratios of 62.8, 47.7, and 36.0 [8][11]. Market Position and Strategy - The company is well-positioned to leverage its relationships with leading automotive manufacturers to expand its robotics business through strategic acquisitions [4][8]. - The acquisition of a 51% stake in Dizi Precision and the 15% stake in Jinli Transmission are part of the company's strategy to enhance its capabilities in micro transmission components [6][8]. Future Outlook - The company anticipates significant revenue growth, with projected revenues reaching 2.719 billion by 2027, representing a year-on-year growth of 30.8% [11][15]. - The company is expected to benefit from the ongoing industrialization of robotics, positioning it for long-term growth [8].

Investment Rating - The report maintains an investment rating of "Leading the Market-B" for the biopharmaceutical industry [1][9]. Core Insights - PD-(L)1 monoclonal antibodies combined with ADCs are expected to become first-line standard therapies for various tumors, with PD-(L)1 monoclonal antibodies being foundational in tumor immunotherapy [3][4]. - The combination of PD-(L)1 monoclonal antibodies and ADCs shows promise in overcoming resistance and improving overall response rates (ORR) in clinical settings [3][4]. - Keytruda combined with Nectin-4 ADC Padcev has already received FDA approval for first-line treatment of la/mUC, indicating the potential for similar combinations in other cancers [3][4]. Summary by Sections Market Performance - The biopharmaceutical industry has shown significant market performance over the past year, with innovative drug developments leading the way [1]. Drug Evaluation - PD-(L)1 monoclonal antibodies are crucial in activating T cells for anti-tumor effects, and their combination with ADCs is expected to enhance ORR and provide new options for immune-resistant cases [3][4]. - Clinical trials indicate that PD-1/L1 monoclonal antibodies combined with TROP2 ADCs show superior progression-free survival (PFS) compared to traditional chemotherapy in non-small cell lung cancer (NSCLC) and triple-negative breast cancer (TNBC) [4][5]. Clinical Trial Results - In a clinical trial for first-line treatment of non-squamous, driver-gene-negative NSCLC, the combination of TROP2 ADC and PD-L1 monoclonal antibody showed an ORR of 59.3% and a median PFS of 15.0 months, outperforming chemotherapy [4]. - For TNBC, the combination of Keytruda and Trodelvy achieved a median PFS of 11.2 months, indicating a significant improvement over standard chemotherapy [4]. Future Outlook - The report highlights the potential of PD-1/L1 monoclonal antibodies combined with HER2 ADCs in treating HER2-positive gastric cancer, showing promising results in clinical trials [5]. - The PD-L1 ADC HLX43 demonstrated significant anti-tumor efficacy in late-stage NSCLC, with an ORR of 38.5% and a median PFS of 5.4 months [5].

Report Industry Investment Rating No information is provided in the content regarding the report's industry investment rating. Core Views of the Report - Interest rate swap curve inversions are mainly caused by economic fundamentals and capital price/liquidity factors, and in most cases, they can predict central bank reserve requirement ratio cuts and interest rate cuts, especially when reflecting market expectations of economic downturn and policy easing [2][67][68]. - The end of interest rate swap inversions usually means changes in the driving factors, which can be due to improved economic fundamentals, alleviated capital tightness, or implemented monetary policies. However, the monetary easing cycle may not stop immediately after the inversion ends [5][69]. - Interest rate swap inversions are not a necessary condition for monetary easing, which may be related to the central bank's control over inter - bank repo rates and the steeper yield curve after de - leveraging [6][70]. - When an interest rate swap curve inversion occurs, especially accompanied by weak economic fundamentals, it is a strong signal of future monetary policy easing. Investors and policymakers can use this signal to make decisions [7]. Summary by Directory I. Interest Rate Swap Curve Historical Inversion Situation Review - **2011 Inversion**: Occurred in August. On August 19, 5Y - 1Y/2Y - 1Y spreads turned negative. The deepest negative spreads of 5Y - 1Y and 2Y - 1Y were - 55.63bp and - 34.93bp respectively on September 6, 2011. High inflation in 2011 led to a tight monetary policy at first, but with inflation and economic growth down in Q3, long - term bond and IRS rates dropped rapidly under the expectation of monetary easing. The central bank cut the reserve requirement ratio in November [14][16]. - **2012 Inversion**: Had two rounds. The first was from the beginning of 2012 to mid - May, caused by capital rate fluctuations and easing expectations. The second was from July 11 to October 12, caused by reserve requirement ratio cut expectations due to weakening fundamentals. The end of the second inversion was related to the improvement of economic fundamentals [25][26][30]. - **2013 Inversion**: Concentrated in June. Due to tightened capital caused by factors like decreased foreign exchange inflows and the central bank's tight policy stance, it reached the extreme on June 20. The inversion ended after the central bank provided liquidity support on June 25 [36][38][39]. - **2015 Inversion**: Initially occurred at the end of 2014 and concentrated from late January to the end of March. It was caused by capital fluctuations and tightness during the New Year period and the stock market's "bull market". The inversion ended as capital prices dropped rapidly [43][44][51]. II. Whether the Interest Rate Swap Curve Can Predict Interest Rate Cuts - **2011**: The inversion predicted the central bank's reserve requirement ratio cut and interest rate cut, and foreshadowed a monetary easing cycle [54]. - **2012**: The first inversion accurately predicted reserve requirement ratio cuts, and the second predicted interest rate cuts [55]. - **2013**: The inversion did not predict reserve requirement ratio cuts or interest rate cuts due to the "cash crunch" [56]. - **2015**: The inversion predicted subsequent reserve requirement ratio cuts and interest rate cuts. The end of the inversion did not mean the end of monetary easing [57][59]. III. Summary - **Reasons and Characteristics of Interest Rate Swap Curve Inversion**: Mainly caused by economic fundamentals (such as economic slowdown and inflation decline) and capital price/liquidity factors (such as capital tightness) [67]. - **Prediction Effect of Interest Rate Swap Curve on Reserve Requirement Ratio Cuts and Interest Rate Cuts**: In most cases, it can predict reserve requirement ratio cuts and interest rate cuts, especially when reflecting economic downturn and policy easing expectations. It may lead the monetary easing cycle [68]. - **Meaning of the End of Interest Rate Swap Inversion**: It usually means changes in the driving factors, including improved economic fundamentals, alleviated capital tightness, or implemented monetary policies [69]. - **Interest Rate Swap Inversion Is Not a Necessary Condition for Monetary Easing**: This may be related to the central bank's control over inter - bank repo rates and the steeper yield curve after de - leveraging [70]. - **How to Use the Swap Inversion Signal**: When an inversion occurs, especially with weak economic fundamentals, it signals future monetary policy easing. Investors and policymakers can use it as a reference [71].