Investment Rating - The report maintains an "Outperform" rating for the home appliance industry [2]. Core Insights - The proportion of public fund holdings in the home appliance industry has increased for seven consecutive quarters, with significant increases in white goods leaders, robotic vacuum cleaners, and appliance components, while major black goods stocks have been reduced. The domestic sales are expected to improve due to the implementation of the old-for-new policy, and external sales are anticipated to benefit from interest rate cuts in the US and contributions from emerging markets. The report suggests continued focus on leading white goods stocks, real estate-related recovery opportunities, and stocks with a second growth curve [2][20]. Summary by Sections 1. Fund Holdings in the Home Appliance Industry - As of Q3 2024, the total market value of public fund holdings in the home appliance sector reached 138.207 billion, a 31.0% increase from Q2 2024, accounting for 4.38% of the total A-share market value, which is 2.15 percentage points higher than the benchmark [8][11]. - The SW home appliance industry index rose by 16.85% in Q3 2024, achieving a relative return of 0.78% compared to the CSI 300 index [8][11]. 2. Individual Stock Performance - Major stocks such as Midea Group and Gree Electric have seen significant increases in holdings. In the white goods sector, Haier Smart Home, Midea Group, and Gree Electric continued to receive notable increases, while Haier and Hisense Home Appliances faced reductions. In the black goods sector, Hisense Vision was continuously reduced, while TCL Electronics and Zhaochi shares also saw reductions. In the kitchen and bathroom appliance sector, major stocks in bathroom appliances were generally increased, while kitchen appliance stocks like Boss and Vatti experienced reductions [20][26]. 3. Stock Changes in the Northbound Trading - The report indicates that the Northbound trading saw more reductions than increases, with some kitchen and bathroom appliance stocks experiencing increases. The core white goods stocks generally faced reductions, while some black goods stocks like Sichuan Changhong saw increases [25][26].

Core Viewpoints - The A-share market showed a rebound with the Shanghai Composite Index rising by 0.67% to 3,346.01 points, the Shenzhen Component Index increasing by 1.9%, and the ChiNext Index up by 3% on Tuesday [1][7] - The total trading volume in the A-share market reached 1.56 trillion RMB, with nearly 4,500 stocks rising [1][7] - In the Shenwan industry sector, non-ferrous metals and electronics led the gains, while construction decoration and coal industries faced declines [1][7] - The Hong Kong Hang Seng Index rose by 0.44%, and the Hang Seng Technology Index increased by 1.23% [1][7] - In the overseas markets, the Dow Jones fell by 0.28%, while the S&P 500 rose by 0.40% and the Nasdaq increased by 1.04% [1][7] Important News - The Chairman of the China Securities Regulatory Commission, Wu Qing, emphasized the need for reforms to promote development and stability in the capital market, aiming to enhance the coordination of investment and financing [2][8] - The focus will be on creating a multi-tiered market system to support technological innovation and long-term investments, while also strengthening regulatory measures and investor protection [2][8] Economic Data Insights - In October, the total retail sales of consumer goods in China reached 453.96 billion RMB, showing a year-on-year growth of 4.8%, which is an increase of 1.6 percentage points compared to September [3][13] - The industrial production maintained resilience, with the manufacturing sector showing signs of improvement, although real estate remains under pressure [9][12] - The investment in infrastructure and manufacturing is expected to drive economic growth, with a target growth rate of 5% for the year [9][12] Consumer Market Trends - The "Double 11" shopping festival saw a strong performance, with total sales reaching 1,441.8 billion RMB, a year-on-year increase of 26.6% [17][20] - The beauty and personal care sector experienced significant growth, with skincare sales reaching 71.5 billion RMB, up 22.85% year-on-year [17][20] - Domestic brands like Proya and Han Shu performed well during the sales event, indicating a positive trend in consumer preferences for local products [17][20] Investment Recommendations - Focus on sectors such as food and beverage, social services, and cosmetics, which are expected to benefit from recent government policies aimed at boosting consumer spending [16][25] - The food and beverage sector is highlighted for its resilience, with recommendations to pay attention to leading brands in snacks, liquor, and dairy products [16][25] - The beauty industry is also recommended for investment, particularly companies that demonstrate strong product development and marketing capabilities [16][25]

Economic Performance - In October, the industrial added value year-on-year growth rate fell by 0.1 percentage points to 5.3%, while month-on-month it increased by 0.41%[12] - Fixed asset investment cumulative year-on-year growth remained at 3.4%, with real estate investment down by 10.3% and infrastructure investment up by 9.35%[28] - Social retail sales increased from 3.2% to 4.8% year-on-year, exceeding market expectations[47] Real Estate Sector - Real estate investment growth fell by 0.2 percentage points to -10.3%, with new housing starts down by 22.6% year-on-year[29] - Property sales showed signs of recovery, with sales area down by 15.8% year-on-year, and sales value down by 20.9%[30] - The decline in funding sources for real estate companies continued to narrow, with a decrease of 19.2%[35] Manufacturing and Infrastructure - Manufacturing investment cumulative year-on-year growth rose by 0.1 percentage points to 9.3%, supported by export growth and equipment upgrades[42] - Infrastructure investment cumulative year-on-year growth increased by 0.09 percentage points to 9.35%, aided by the issuance of long-term special bonds[37] - The manufacturing sector showed a mixed performance, with automotive manufacturing up by 6.2% year-on-year, while other sectors faced declines[19] Consumer Confidence and Spending - Consumer confidence remains low despite a significant increase in retail sales, with online retail showing a rebound due to promotional events[47] - The Double Eleven shopping festival and trade-in policies significantly boosted consumer spending, particularly in home appliances and furniture[50] - Essential consumption categories like food and beverages saw a decline, while discretionary spending categories like cosmetics experienced substantial growth[53]

Investment Rating - The industry investment rating is "Outperform the Market" (maintained) [2][4]. Core Insights - The overall GMV for the "Double 11" shopping festival in 2024 reached 1,441.8 billion yuan, a year-on-year increase of 26.6%. This is a significant acceleration compared to the 2.08% growth in 2023 [2]. - The beauty and personal care sector saw rapid sales growth, with skincare sales reaching 71.5 billion yuan, up 22.85% year-on-year, and cosmetics sales at 23.7 billion yuan, up 16.18% year-on-year [2]. - Domestic beauty brands performed well, with Proya ranking first in Tmall's beauty brand sales during "Double 11," showing growth rates of over 10% on Tmall, 60% on Douyin, and 30% on JD [2]. Summary by Sections Overall Market Performance - The total sales for the "Double 11" event in 2024 was 1,441.8 billion yuan, with a breakdown showing e-commerce sales at 1,109.3 billion yuan (up 20.1%), live-streaming sales at 33.25 billion yuan (up 54.6%), and instant retail sales at 28.1 billion yuan (up 19.1%) [2]. - The sales growth was attributed to factors such as the "old-for-new" subsidy policy, an extended shopping period, and increased consumer behavior of "grouping" purchases due to platform incentives [2]. Beauty Industry Insights - The online GMV for beauty products is expected to exceed 120 billion yuan, with Tmall, Douyin, and JD accounting for 50.1%, 26.7%, and 11.7% of the sales, respectively [2]. - Proya and other domestic brands are gaining significant market share, with Proya leading in multiple sales rankings across platforms [2]. Investment Recommendations - The report suggests a positive outlook for the cosmetics demand recovery, with "Double 11" sales data exceeding expectations. It recommends focusing on leading cosmetic companies with strong product capabilities and multi-channel strategies [2].

Investment Rating - The industry investment rating is "Outperform" [2][36]. Core Insights - The report highlights a recovery in India's diamond export data, with both cultivated and natural diamond exports showing positive year-on-year growth in October 2024 [2][32]. - The report indicates that the penetration rate for cultivated diamonds in India has decreased on the export side but increased on the import side [22]. - The natural diamond price index has continued to decline, reflecting insufficient recovery in market demand [29]. Summary by Sections 1. Cultivated Diamond Data Tracking - In October 2024, India's cultivated diamond rough imports amounted to $0.64 billion, a year-on-year decline of 27.79%, which is a further increase in the decline compared to September [20]. - The cultivated diamond export value reached $1.38 billion, showing a year-on-year increase of 1.27%, marking a shift from negative to positive [20]. - The penetration rate for cultivated diamond exports was 8.96%, down by 0.80 percentage points year-on-year, while the import penetration rate was 8.82%, up by 0.77 percentage points year-on-year [22]. 2. Natural Diamond Data Tracking - India's natural diamond rough imports in October 2024 were $6.66 billion, reflecting a year-on-year decline of 35.35%, which is a further increase in the decline compared to September [27]. - The natural diamond export value was $14.04 billion, with a year-on-year increase of 11.32%, indicating a recovery from negative growth [27]. - The international polished diamond price index fell to 96.01 points by the end of October, down 1.00 percentage point from September [29]. 3. Investment Recommendations - The report suggests that India's rough diamond import and polished diamond export data are crucial indicators for assessing downstream market conditions [32]. - Short-term trends show that both cultivated and natural diamond exports have turned positive year-on-year, indicating improved demand conditions in October [32]. - In the medium to long term, the report anticipates a gradual recovery in diamond consumption demand, driven by macroeconomic recovery and changing consumer preferences [32].

Core Insights - The heavy holding ratio of the consumer sector has slightly decreased, while the overweight ratio has rebounded. In Q3 2024, the heavy holding ratio of the consumer sector fell by 0.19 percentage points to 8.15%, remaining at a historical low, below the historical average of 11.88% [2][11][13] - The heavy holding market value ratio of the consumer sector has increased, with the ratio at 20.03% (up 0.25 percentage points), and the overweight ratio has risen to 7.17% (up 0.98 percentage points) [2][13] Industry Holdings - The heavy holding ratio of the home appliance sector has increased, while other consumer sectors have decreased. In Q3 2024, the heavy holding ratios for food and beverage (4.98%), home appliances (1.93%), and agriculture, forestry, animal husbandry, and fishery (0.53%) remain the top three in the consumer sector. The food and beverage sector's heavy holding ratio decreased by 0.03 percentage points, while the home appliance sector increased by 0.11 percentage points [18][24] Individual Stock Holdings - In the top 20 stocks by heavy holding ratio, five positions belong to the consumer sector, with a notable presence of food and beverage stocks. In Q3 2024, the top 20 stocks by heavy holding ratio included five consumer sector stocks, with four in food and beverage and one in home appliances. The heavy holding ratios for these stocks have increased, particularly for high-end liquor brands [2][44] Investment Recommendations - The consumer sector continues to experience a weak recovery, but recent government policies are expected to enhance consumer capacity, benefiting cyclical consumer industries. Key areas to focus on include food and beverage, home appliances, and sectors benefiting from service consumption policies [2][4][24]

Investment Rating - The report maintains an "Outperform" rating for the computer industry [5]. Core Insights - The report emphasizes the accelerated implementation of AI large models, highlighting the ongoing updates and innovations in AI technology that enhance product applications across various scenarios such as AI agents, office automation, and marketing [2][35]. - It suggests focusing on the innovation and product strength of AI applications, which are expected to increase demand for AI computing power and drive the need for AI terminals like AIPC and embodied intelligence [2][35]. - The report recommends aligning investment strategies with policy guidance and demand traction, particularly in digitalization, intelligence, and trusted innovation sectors [36]. Industry Dynamics - Recent international dialogues on AI between Chinese President Xi Jinping and U.S. President Joe Biden indicate a constructive approach to AI governance [3]. - Baidu's recent launch of the Wenxin iRAG and no-code tool "Miao Da" showcases significant advancements in AI capabilities, with daily usage increasing from 50 million to over 1.5 billion [3][40]. - The launch of iFlytek's multimodal interaction model and Huawei's global embodied intelligence innovation center further illustrates the rapid development in AI applications [3][41][42]. Market Performance - The computer industry saw a decline of 3.41% last week, slightly underperforming the broader market index, which fell by 3.29% [2][46]. - The average daily trading volume for the computer industry increased by 4.87% compared to the previous week, reaching approximately 2.77 billion [4][56]. - The current price-to-earnings (P/E) ratio for the computer industry stands at 48.61, above the historical average of 47.78 since 2016, indicating a higher valuation compared to historical norms [4][55]. Stock Performance - Out of 355 stocks in the computer sector, 239 experienced declines, representing 67.32% of the total, indicating a challenging week for the majority of stocks [4][62]. - The report highlights the need to monitor individual stock performances and market trends closely, especially in light of the recent fluctuations [4][62].

Core Insights - The A-share market continues to show weakness, with the Shanghai Composite Index down 0.21% to 3,323.85 points, the Shenzhen Component Index down 1.91%, and the ChiNext Index down 2.35% [2][5] - The total trading volume in the A-share market reached 1.76 trillion RMB, with nearly 4,000 stocks declining [2][5] - In terms of industry performance, coal and construction decoration sectors showed the highest gains, while computer and media sectors experienced the largest declines [2][5] - The Hong Kong Hang Seng Index rose by 0.77%, and the Hang Seng Technology Index increased by 0.32% [2][5] - Internationally, the US stock indices showed mixed results, with the Dow Jones down 0.13%, the S&P 500 up 0.39%, and the Nasdaq up 0.60% [2][5] Market Review - The report highlights the recent announcement from Beijing and Shanghai to cancel the standards for ordinary and non-ordinary housing, effective December 1, which will impact the value-added tax on personal housing sales and the deed tax for personal home purchases [2][5] Industry Analysis - In the food and beverage sector, the heavy holding ratio has slightly decreased, reaching a five-year low, with a total market value of 350.65 billion RMB, an increase of 64.24 billion RMB from the previous period [6] - The heavy holding ratio for the food and beverage industry is currently at 4.98%, which is below the five-year average of 7.46%, indicating potential for growth [6] - The white liquor segment has seen a slight recovery in heavy holding ratios, while the mass consumer goods segment remains stable [6] - The report identifies that the top three heavy holdings in the food and beverage sector are Kweichow Moutai, Wuliangye, and Shanxi Fenjiu, with significant fluctuations in their holding ratios [6] Investment Recommendations - Despite the overall weak recovery in consumption, recent policy measures aimed at economic stimulus are expected to positively impact the food and beverage industry [9] - Recommendations include focusing on high-end and mid-range white liquor companies, as well as beer companies benefiting from declining raw material prices and structural upgrades [9]

Investment Rating - The report maintains an "Outperform" rating for the communication industry, indicating an expected relative increase of over 10% compared to the broader market in the next six months [3][76]. Core Insights - The report emphasizes the importance of focusing on investment opportunities in 6G construction, low-altitude economy, and satellite internet industries. The recent 2024 Global 6G Development Conference in Shanghai is expected to enhance China's 6G technology standards and accelerate the development of the 6G application ecosystem [36][37]. - The establishment of a low-altitude economy innovation consortium led by major state-owned enterprises aims to break industry barriers and optimize the industrial chain structure, promoting technological innovation and breakthroughs [36][44]. - The report suggests monitoring key enterprises in the low-altitude economy and those with technological and equipment innovations, as well as the satellite internet sector, which is expected to grow alongside 6G and low-altitude economy developments [36][37]. Summary by Sections Industry Dynamics - **6G Developments**: China Telecom is conducting key technology validations for 6G distributed network architecture. The 2024 Global 6G Development Conference was held, focusing on critical technologies and standards [42][43]. - **Low-altitude Economy**: The 2024 Low-altitude Equipment Industry Innovation Development Conference took place, highlighting technological advancements and innovations in low-altitude equipment. A consortium of eight state-owned enterprises was formed to enhance collaboration in this sector [43][44][45]. - **Satellite Internet**: The establishment of a national satellite navigation product quality inspection center in Hubei and the successful launch of a marine salinity detection satellite are significant developments. China Satcom introduced a satellite internet rental product during the 2024 Zhuhai Airshow [46][47]. Market Performance - The communication industry index fell by 2.12%, outperforming the broader market index decline of 3.29%. The industry ranked 6th among 31 sectors [48][52]. - The average daily trading volume for the communication sector increased by 12.54% to 928.93 billion yuan, with a total trading volume of 4644.63 billion yuan over the week [2][59]. Valuation - The current price-to-earnings (P/E) ratio for the communication industry is 20.04, significantly below the historical average of 34.08 since 2016, indicating potential undervaluation [2][57].

Investment Rating - The industry investment rating is "Outperform the Market" [6] Core Viewpoints - The AI industry continues to show increasing prosperity, highlighted by Baidu's launch of the "Xiao Du AI Glasses," which is claimed to be the world's first native AI glasses equipped with a Chinese large model. This product is expected to drive innovation in hardware, although challenges remain in balancing performance, user experience, and manufacturing costs [2][17] - The advertising market has seen a year-on-year increase of 2.3% from January to September 2024, with elevator LCD and posters experiencing rapid growth. The elevator media sector is noted for its advantages in reaching mainstream audiences and maintaining high engagement with low interference, making it a focal area for advertising value [2][17] - The gaming sector is poised for growth with the announcement of the mobile game "Monster Hunter: Journey" by Tencent and CAPCOM, which is expected to bring new momentum to the gaming market [2][17] Summary by Sections 1. Core Viewpoints and Investment Recommendations - The report emphasizes the dual focus on gaming and film industries, with generative AI driving industry transformation. It suggests monitoring leading companies with strong game reserves and development capabilities, as well as video platforms excelling in short content production [3][18][19][20] 2. Media Industry Weekly Market Review - The media industry (Shenwan) rose by 1.07%, outperforming the CSI 300 index, which fell by 3.29%. The media sector's performance exceeded the CSI 300 index by 4.36 percentage points [23][25] - The media industry’s valuation has rebounded to 26.57X, slightly above the six-year average of 26.52X, indicating a positive trend in market sentiment [31] 3. Media Industry Weekly Performance Review - In the gaming sector, Tencent's "Honor of Kings" remains the top title, with significant representation from Tencent and NetEase in the market [45] - The box office for the week showed a year-on-year increase of 4.91%, with the top film "Winning Ticket" accounting for 22% of the total box office [56][58] 4. Industry News and Company Announcements - Baidu's launch of the Xiao Du AI Glasses marks a significant development in AI hardware [63] - The CTR reported a 2.3% year-on-year increase in advertising spending from January to September 2024, with notable growth in specific advertising channels [63]