Report Summary 1) Report Industry Investment Rating No relevant content provided. 2) Core Viewpoints of the Report - The scarcity of Xingye Convertible Bonds is becoming more prominent, and there is potential to trigger a forced redemption. The bonds are a high - quality target for low - risk preference funds [1][5]. - With policy support, improved asset quality, and continuous decline in interest rates, the PB of Industrial Bank still has room for improvement [5]. 3) Summary by Relevant Catalogs Information of Xingye Convertible Bonds - The Xingye Convertible Bonds (113052.SH) are rated AAA. As of June 9, 2025, the bond balance is 41.353 billion yuan, the remaining term is 2.55 years, the closing price is 122.62 yuan, the conversion premium rate is 14.63%, and the pure bond premium rate is 13.73% [1]. Information of the Underlying Stock (Industrial Bank) - The latest total market capitalization of Industrial Bank (601166.SH) is 494.4 billion yuan, with a PE TTM of 6.45x and a PB LF of 0.63x. It was established in 1988 and is a core enterprise under the Fujian Provincial Department of Finance, being one of the first batch of joint - stock banks in China, with financial licenses such as trust, financial leasing, funds, and asset management [3]. - The bank has a flexible mechanism, focusing on the "commercial bank + investment bank" layout and building a comprehensive financial service system of "equity, debt, and loans". Its on - and off - balance - sheet businesses are balanced, and its ROE has always been among the top in the joint - stock banks. From the end of 2020 to the end of 2024, its total assets increased from 7.89 trillion yuan to 10.51 trillion yuan, with a CAGR of 7.41% [4]. - In Q1 2025, affected by the narrowing of the net interest margin and fluctuations in non - interest income, the operating income was 55.7 billion yuan, a year - on - year decrease of 3.58%; the net profit attributable to the parent company was 23.8 billion yuan, a year - on - year decrease of 2.22%. The net interest margin in Q1 2025 was 1.80%, a decrease of 7 bps compared to 2024, but significantly better than the industry average (the overall net interest margin of commercial banks was 1.43% during the same period). At the end of Q1 2025, the non - performing loan rate was 1.08%, and the provision coverage ratio was 233%, with overall stable asset quality [4]. Valuation of Xingye Convertible Bonds - Based on the Shanxi Securities convertible bond valuation model, assuming the stock price remains unchanged and without considering forced redemption and downward revision, the reasonable valuation of Xingye Convertible Bonds is between 127 - 129 yuan [6].

Market Overview - The domestic market indices showed a decline, with the Shanghai Composite Index closing at 3,384.82, down 0.44%, and the Shenzhen Component Index at 10,162.18, down 0.86% [4] Non-Bank Financial Sector - The report highlights an increase in share buybacks among brokerages, with six firms having repurchased a total of 129 million shares for 1.31 billion yuan as of June 5. This reflects management's confidence in their company's value and aims to optimize capital structure [7] - The average price-to-book ratio for the securities industry is currently at 1.33x, which is at the 38.20% percentile since 2018, indicating a certain level of value in the sector [7] - The report suggests that the ongoing reforms in the capital market will clarify the development paths for the industry, with brokerages focusing on mergers and acquisitions to enhance capital quality [7] Chemical Raw Materials Sector - The new materials sector saw a slight increase, with the New Materials Index rising by 0.77%, although it underperformed compared to the ChiNext Index [8] - The report notes that the National Development and Reform Commission has issued guidelines to encourage the use of green electricity, which is expected to drive the wind power installation market [10] - The wind power sector is projected to see new installations of approximately 105-115 GW in 2025, with a significant portion coming from onshore wind [10] Agriculture Sector - The report indicates a decline in pig prices, with average prices in key provinces dropping by 3.15% to 3.46% as of June 6. The average pork price fell by 1.11% [11] - The report expresses optimism about the operational outlook for Haida Group, citing potential growth from its overseas feed business and a recovery in the feed industry due to lower raw material prices [11] - The report emphasizes that the current cycle in the pig farming industry may lead to a prolonged profitability period, contrary to market pessimism [11]

Investment Rating - The report maintains an investment rating of "Leading the Market - A" for the non-bank financial industry, indicating an expected performance that exceeds the benchmark index by more than 10% [4][31]. Core Insights - The report highlights an increase in "cancellation-style" share buybacks among brokerages, with six firms having repurchased a total of 129 million shares for a total amount of 1.31 billion yuan as of June 5. This reflects management's confidence in their company's value and aims to optimize capital structure and improve profitability metrics [4][10]. - The industry is noted to have a favorable valuation, with an average price-to-book ratio of 1.33x, which is at the 38.20% percentile since 2018, suggesting a good investment opportunity [4][10]. Summary by Sections 1. Investment Suggestions - The report emphasizes the increasing trend of share buybacks among brokerages, with a total of 1.29 million shares repurchased and 1.31 billion yuan spent. This is seen as a strategy to enhance capital efficiency and shareholder returns [10]. - The ongoing capital market reforms are expected to clarify the development paths for the industry, with a focus on mergers and acquisitions, technology finance, and green finance as key areas for business breakthroughs [10]. 2. Market Review - Major indices experienced varying degrees of increase, with the Shanghai Composite Index rising by 1.13%, the CSI 300 by 0.88%, and the ChiNext Index by 2.32%. The non-bank financial index rose by 1.99%, ranking 10th among 31 primary industries [11]. - The report notes a significant increase in trading volume, with a total of 4.84 trillion yuan traded in A-shares last week, reflecting a 10.51% week-on-week growth [11][19]. 3. Key Industry Data Tracking - As of June 6, the market had 3,117.89 billion shares pledged, accounting for 3.85% of total equity. The margin balance stood at 1.81 trillion yuan, showing a 0.42% increase [19][25]. - In May 2025, new fund issuance totaled 657.59 billion shares, with a notable decline in stock fund issuance by 42.06% [19][21]. - The report also highlights the bond market, with the 10-year government bond yield at 1.65%, up 4.70 basis points since the beginning of the year [19][23]. 4. Regulatory Policies and Industry Dynamics - The report discusses the increasing trend of share buybacks among brokerages, with specific details on the number of shares and amounts repurchased by various firms [27]. - It also mentions new measures from regulatory bodies aimed at supporting financing for small and micro enterprises, focusing on enhancing financing supply and reducing costs [27]. 5. Key Announcements from Listed Companies - Tianfeng Securities plans to raise up to 4 billion yuan through a private placement, with specific allocations for wealth management and debt repayment [27]. - Guolian Minsheng has appointed new executives, indicating ongoing corporate governance changes [27].

Investment Rating - The report maintains an investment rating of "Leading the Market - A" for the non-bank financial industry, indicating an expected performance that exceeds the benchmark index by more than 10% [4][31]. Core Insights - The report highlights an increase in "cancellation-style" share buybacks among brokerages, with six firms having repurchased a total of 129 million shares for 1.31 billion yuan as of June 5, 2025. This reflects management's confidence in their company's value and aims to optimize capital structure and improve profitability metrics [4][10]. - The industry is noted to have a favorable valuation, with an average price-to-book ratio of 1.33x, placing it in the 38.20 percentile since 2018, suggesting a good investment opportunity [4][10]. - The report emphasizes the ongoing capital market reforms and the expected implementation of detailed guidelines from the "Five Major Articles" of finance, which will clarify the development paths for the industry [4][10]. Summary by Sections Investment Suggestions - The report suggests focusing on the investment value of the sector, particularly as brokerages continue to enhance capital quality through mergers and acquisitions, and explore breakthroughs in technology and green finance [4][10]. Market Review - Major indices showed varying degrees of increase, with the Shanghai Composite Index rising by 1.13%, the CSI 300 by 0.88%, and the ChiNext Index by 2.32%. The total A-share trading volume reached 4.84 trillion yuan, with an average daily turnover of 1.21 trillion yuan, reflecting a week-on-week increase of 10.51% [5][11][19]. Key Industry Data Tracking 1. Market Performance and Scale: The report notes a significant increase in trading volumes and market indices, indicating a positive market sentiment [11][19]. 2. Credit Business: As of June 6, 2025, the market had 3,117.89 billion shares pledged, accounting for 3.85% of total equity, with a margin balance of 1.81 trillion yuan, reflecting a slight increase [19]. 3. Fund Issuance: In May 2025, new fund issuance totaled 657.59 billion shares, with a notable decline in stock fund issuance [19]. 4. Investment Banking: The report details an equity underwriting scale of 167.95 billion yuan in May 2025, with IPOs contributing 34.56 billion yuan [19]. 5. Bond Market: The report mentions a slight decline in the total price index of bonds since the beginning of the year, with a 10-year government bond yield of 1.65% [19]. Regulatory Policies and Industry Dynamics - The report discusses the increasing trend of share buybacks among brokerages and outlines new measures from regulatory bodies aimed at supporting financing for small and micro enterprises [27]. Key Announcements from Listed Companies - Tianfeng Securities plans to raise up to 4 billion yuan through a private placement, with specific allocations for wealth management and debt repayment [27].

Investment Rating - The report maintains a rating of "B" for the new materials sector, indicating a positive outlook for the industry [2]. Core Insights - The new materials sector has shown an upward trend, with the new materials index increasing by 0.77%, although it underperformed compared to the ChiNext index, which rose by 0.56% [2]. - The report highlights a strong performance in specific sub-sectors, including synthetic biology (up 2.69%), semiconductor materials (up 0.90%), electronic chemicals (up 2.54%), biodegradable plastics (up 2.39%), industrial gases (up 1.77%), and battery chemicals (up 2.35%) [2][18]. - The National Development and Reform Commission and the National Energy Administration have issued opinions supporting green development, which is expected to drive high demand for wind power installations, with projections of 105-115 GW of new wind power capacity in 2025 [5]. Summary by Relevant Sections 1. Market Performance - The new materials sector has experienced a positive market performance, with the new materials index increasing by 0.77% in the past week [2]. - The synthetic biology index has risen by 2.69%, while other sectors such as semiconductor materials and electronic chemicals have also shown gains [18]. 2. Price Tracking - Prices for various amino acids and biodegradable plastics have remained stable, with slight fluctuations noted in specific products [3]. - The report provides detailed price tracking for industrial gases and electronic chemicals, indicating stability in pricing for many products [3][13]. 3. Industry News - The report discusses the implications of government policies aimed at promoting green electricity usage, which is expected to enhance the profitability of wind power companies [5]. - The anticipated recovery in wind turbine prices in Q4 2024 is highlighted, suggesting a potential bottoming out of the wind power industry [5]. 4. Investment Recommendations - The report suggests focusing on companies such as "Times New Material" and "Meijiaxin Color" as potential investment opportunities within the new materials sector [5].

Investment Rating - The report maintains a "B" rating for the new materials sector, indicating a positive outlook for the industry [2]. Core Insights - The new materials sector has shown an upward trend, with the new materials index increasing by 0.77%, although it underperformed compared to the ChiNext index, which rose by 0.56% [2]. - The report highlights the strong performance of specific sub-sectors, including synthetic biology (up 2.69%), semiconductor materials (up 0.90%), electronic chemicals (up 2.54%), biodegradable plastics (up 2.39%), industrial gases (up 1.77%), and battery chemicals (up 2.35%) over the past five trading days [2][18]. - The National Development and Reform Commission and the National Energy Administration have issued opinions supporting green development, which is expected to drive high demand for wind power installations, with projections of 105-115 GW of new wind power capacity in 2025 [5]. Summary by Sections 1. Market Performance - The new materials sector has experienced a positive market performance, with the new materials index increasing by 0.77% [2]. - The synthetic biology index has risen by 2.69%, while other sectors such as semiconductor materials and electronic chemicals have also shown gains [18]. 2. Price Tracking - Prices for various amino acids and biodegradable plastics have remained stable, with notable prices including valine at 13,600 CNY/ton (up 1.12%) and PLA (injection grade) at 17,500 CNY/ton [3]. 3. Industry News - The report discusses the implications of government policies aimed at promoting green electricity usage, which is expected to enhance the profitability of wind power companies as they recover from previous price declines [5]. 4. Investment Recommendations - The report suggests focusing on companies such as "Times New Materials" and "Meiga Xincai" as potential investment opportunities within the new materials sector [5].

Investment Rating - The report provides a buy rating for Hai Da Group (002311.SZ) with an "A" rating, and a buy rating for Sheng Nong Development (002299.SZ) and Wen's Shares (300498.SZ) with a "B" rating. Other companies like Guai Bao Pet (301498.SZ) and Zhong Chong Shares (002891.SZ) are rated as "A" for increase, while Tang Ren Shen (002567.SZ), Shen Nong Group (605296.SH), Ju Xing Agricultural and Animal Husbandry (603477.SH), and New Hope (000876.SZ) are rated as "B" for increase [2]. Core Viewpoints - The agricultural sector has shown a slight increase, with the agricultural and forestry sector rising by 0.91% during the week of June 2 to June 8, 2025, outperforming the broader market [3][22]. - The report highlights the potential for Hai Da Group due to the expected recovery in the feed industry as upstream raw material prices stabilize and the breeding sector improves [4][5]. - The report emphasizes that the pig farming industry is entering a profit cycle, with expectations that the duration of profitability may exceed market pessimism, suggesting a potential for valuation recovery [5]. Summary by Sections Industry Performance - The agricultural sector's performance is ranked 20th among various sectors, with significant contributions from other planting industries, food and feed additives, aquaculture, and pig farming [3][22]. - The average price of pigs in key provinces has decreased, with prices in Sichuan, Guangdong, and Henan at 13.85, 15.24, and 13.95 yuan/kg respectively, reflecting a decline of 3.15%, 2.56%, and 3.46% week-on-week [4][31]. Pig Farming - The report notes that the self-breeding profit is 33.83 yuan per head, while the profit from purchasing piglets is negative at -120.80 yuan per head, indicating challenges in the current market [4][31]. - The pig-to-grain ratio is reported at 6.29, showing a decrease of 0.32% from the previous week [31]. Poultry Farming - The average price of white feather broilers is 7.32 yuan/kg, down 0.68% week-on-week, while the price of chicken eggs has decreased by 7.04% to 6.60 yuan/kg [43]. Feed Processing - In April 2025, the total industrial feed production reached 27.53 million tons, with a month-on-month increase of 4.2% and a year-on-year increase of 9.0% [51]. Aquaculture - The price of sea cucumbers remains stable at 90.00 yuan/kg, while shrimp prices have increased by 14.29% to 320.00 yuan/kg [60].

Group 1: Hubei Yihua (000422.SZ) - Hubei Yihua is a diversified large chemical enterprise with upstream resource advantages and production base layout [5][6] - The company operates in multiple sectors including coal chemical, chlor-alkali chemical, phosphate and fluorine chemical, and fine chemicals. In 2024, revenue from chemical fertilizers, PVC, chlor-alkali products, and other fine chemical products is projected to be 7.65 billion, 4.13 billion, 1.53 billion, and 1.81 billion CNY respectively, accounting for 45.1%, 24.4%, 9.0%, and 10.7% of total revenue [7] - The company ranks third in national fertilizer capacity, fifth in PVC capacity, and second globally in pentanediol capacity [7] - The acquisition of Xinfa Investment will increase the company's coal resource ownership and production capacity, adding 600,000 tons/year of urea, 300,000 tons/year of PVC, and 3 million tons/year of coal [7] - The company expects net profits of 940 million, 1.18 billion, and 1.24 billion CNY for 2025-2027, with corresponding PE ratios of 14.3, 11.3, and 10.8 times [7] Group 2: Shenghong Technology (300476.SZ) - Shenghong Technology is a leading high-end PCB manufacturer with advanced multilayer and HDI board technologies, having established a "soft and hard" product layout through acquisitions [8] - The company has long-term partnerships with major brands such as Nvidia, Tesla, AMD, and Microsoft, which enhances its competitive edge in the PCB market [8] - The PCB industry is expected to grow rapidly due to the explosion in computing power demand and the electrification and intelligence of automobiles, with a projected CAGR of 5.4% from 2024 to 2028, reaching over 90 billion USD by 2028 [8] - The company anticipates net profits of 4.65 billion, 6.58 billion, and 8.15 billion CNY for 2025-2027, with corresponding EPS of 5.39, 7.63, and 9.45 CNY, and PE ratios of 18.6, 13.1, and 10.6 times [8]

Investment Rating - The report assigns a "Buy-A" rating to the company, indicating a positive outlook for investment [6]. Core Views - The company is positioned as a leading player in the high-end PCB market, benefiting from the surge in AI computing demand, which is expected to drive significant growth opportunities [3][4]. - The company has established a "soft and hard" product layout through acquisitions, enhancing its competitive edge and market share [5][16]. - The PCB industry is projected to experience rapid growth driven by increased demand for high-value products, particularly in AI servers and automotive electronics [4][37]. Summary by Sections Company Market Performance - The company has shown strong market performance with a closing price of 100.20 yuan and a market capitalization of 856.92 billion yuan as of June 2025 [2]. Financial Data and Valuation - The company forecasts net profits of 46.50 billion yuan, 65.81 billion yuan, and 81.49 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 302.8%, 41.5%, and 23.8% [7]. - The projected earnings per share (EPS) for the same years are 5.39 yuan, 7.63 yuan, and 9.45 yuan, with corresponding price-to-earnings (P/E) ratios of 18.6, 13.1, and 10.6 [7]. Industry Growth Drivers - The demand for AI computing is expected to significantly increase the usage of PCBs in AI servers, with the global PCB industry projected to grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2028, reaching over 90 billion USD by 2028 [4][37]. - The automotive industry's shift towards electrification, intelligence, and lightweight design is anticipated to drive substantial growth in the value of automotive PCBs, with the market expected to grow from 9.195 billion USD in 2024 to 11.205 billion USD by 2029 [56]. Product and Customer Strategy - The company has successfully integrated its product offerings through strategic acquisitions, enhancing its portfolio to include both rigid and flexible PCBs, thereby meeting diverse customer needs [80]. - The company maintains long-term partnerships with major clients such as NVIDIA, Tesla, AMD, and Microsoft, which strengthens its market position and provides a competitive advantage [5][16]. Operational Efficiency - The company has improved its operational efficiency and production capacity, with a focus on high-end products such as multi-layer and HDI boards, which are expected to dominate its revenue streams [84].

Investment Rating - The report assigns a "Buy-A" rating to the company, indicating a positive outlook for investment [6]. Core Insights - The company is positioned as a leading player in the high-end PCB market, benefiting from the surge in AI computing demand and the rapid growth of the automotive electronics sector [3][4]. - The company has established a "soft and hard integration" product layout through acquisitions, enhancing its competitive edge and market share [5][16]. - The global PCB industry is expected to grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2028, driven by high-value product demand [4][68]. Summary by Sections Company Performance - The company has achieved significant revenue growth, with a projected net profit of 46.50 billion yuan in 2025, reflecting a year-on-year increase of 302.8% [5][7]. - The company reported a substantial increase in revenue and net profit in Q1 2025, with revenue reaching 43.12 billion yuan, up 80.31% year-on-year [28]. Industry Growth Drivers - The demand for AI servers is expected to drive a significant increase in PCB usage, with AI server shipments projected to grow substantially [37][38]. - The automotive industry's shift towards electrification, intelligence, and lightweight design is anticipated to enhance the value of automotive PCBs, with the market expected to grow from 9.195 billion USD in 2024 to 11.205 billion USD by 2029 [56][57]. Product and Market Strategy - The company has diversified its product offerings through strategic acquisitions, including the purchase of Pole Star Limited, which enhances its capabilities in flexible circuit boards [80]. - The company maintains long-term partnerships with major clients such as NVIDIA, Tesla, and AMD, which strengthens its market position and revenue potential [5][16]. Financial Projections - The company forecasts significant growth in revenue and net profit over the next few years, with net profit expected to reach 81.49 billion yuan by 2027 [5][7]. - The company's gross margin is projected to improve, reflecting a shift towards higher-value products in its portfolio [31].