Investment Rating - The report maintains a "Recommended" rating for the telecommunications and electronics industry, considering the sustained high prosperity of the telecommunications sector driven by AI, 5.5G, and satellite communications [18]. Core Insights - The telecommunications sector index rose by 0.39% during the week of December 23-27, 2024, with the highest increase in the telecommunications network equipment and devices sub-sector at 2.93% [11][43]. - The report highlights that the top three stocks with the highest gains in the telecommunications sector were DingTong Technology (34.19%), ZhaoLong Interconnect (32.73%), and BoChuang Technology (28.84%) [13][28]. - The top three cloud service providers in China, Alibaba Cloud, Huawei Cloud, and Tencent Cloud, collectively hold a 70% market share, with Huawei Cloud achieving a 19% market share and 13% growth in Q3 2024 [14][15][31]. Summary by Sections Market Overview - The Shanghai Composite Index increased by 0.95%, while the Shenzhen Component Index rose by 0.13%, and the ChiNext Index experienced a decline of 0.22% during the same week [11]. - The telecommunications sector showed a mixed performance with 30.71% of stocks rising, 62.99% declining, and 6.30% remaining flat [13]. Sub-sector Performance - The telecommunications network equipment and devices sub-sector had the highest weekly increase of 2.93%, while other telecommunications equipment saw the largest decline of 7.07% [43]. - The report indicates a general trend of correction across various sub-sectors within telecommunications [18]. Key News and Developments - Huawei Cloud has made significant advancements in AI development, covering over 30 industries and 400 business scenarios, and has upgraded its Pangu model to meet high-frequency business needs [15]. - The report notes that the Chinese Ministry of Industry and Information Technology aims to build over 4.5 million 5G base stations by 2025, emphasizing the push for high-quality development in the information and communication industry [42][55]. Recommended Stocks - The report suggests focusing on companies within the computing power industry and satellite internet, including Zhongji Xuchuang, Xinyi Sheng, Yuanjie Technology, and Haige Communication [20].

Group 1 - The report indicates that on December 27, major ETFs such as the Shanghai 50 ETF and CSI 300 ETF experienced varying changes in trading volume, with the Shanghai 50 ETF seeing a decrease of 0.55 billion yuan to 16.85 billion yuan, while the CSI 300 ETF increased by 5.73 billion yuan to 44.29 billion yuan [1][5]. - The overall market on December 27 showed a slight fluctuation, with the Shanghai Composite Index rising by 0.06% to 3,400.14 points, while the Shenzhen Component Index fell by 0.13% to 10,659.98 points [29][31]. - The report highlights that the total market turnover reached 14,336.72 billion yuan, an increase of 1,613.90 billion yuan compared to the previous trading day, with 3,607 stocks rising and 1,743 stocks falling [29][31]. Group 2 - The report notes that the net inflow of southbound funds on December 27 was 8.493 billion Hong Kong dollars, with the Shanghai Stock Connect seeing a net inflow of 3.918 billion Hong Kong dollars and the Shenzhen Stock Connect seeing a net inflow of 4.575 billion Hong Kong dollars [38]. - The performance of major global indices on December 26 showed mixed results, with the Dow Jones Industrial Average rising by 0.07% to 43,325.80 points, while the S&P 500 and Nasdaq Composite experienced slight declines [6][8].

Investment Rating - The report maintains a recommendation for investment in the quantum technology sector [6]. Core Insights - Quantum technology is rapidly developing, with significant potential to overcome the limitations of classical technologies, particularly in quantum communication, quantum computing, and quantum precision measurement [4][16]. - The global quantum computing industry is projected to grow from $4.7 billion in 2023 to $811.7 billion by 2035, indicating a robust growth trajectory [34]. - Quantum communication is the fastest area of practical application, with a well-formed industrial chain and significant contributions from major telecommunications companies [20][22]. Summary by Sections 1. Quantum Technology Development and Policy Drivers - Quantum technology encompasses quantum communication, quantum computing, and quantum precision measurement, which can significantly enhance information security, computational speed, and measurement accuracy [4][16]. - The global quantum communication and security market is expected to reach $56.08 billion by 2035, driven by advancements in quantum key distribution (QKD) and post-quantum cryptography (PQC) [22][21]. 2. Domestic Companies Actively Positioning for Growth - Guoyi Quantum focuses on advanced measurement technologies and provides high-quality products and services in quantum precision measurement [42]. - Benyuan Quantum is dedicated to building a self-controlled quantum computing ecosystem, developing quantum chips and software, and promoting industry applications [49]. - Geer Software is advancing in the field of post-quantum cryptography, offering integrated security solutions that combine quantum and classical cryptographic techniques [52]. - Jida Zhengyuan is engaged in the design and implementation of anti-quantum cryptography, contributing to the development of secure digital identity solutions [59]. 3. Quantum Communication - Quantum communication utilizes quantum bits for secure information exchange, with applications such as quantum key distribution and quantum teleportation [19][20]. - The industry chain for quantum communication is well-established, with upstream components including chips and detectors, and downstream applications spanning various industries [20]. 4. Quantum Computing - Quantum computing leverages quantum bits to perform complex calculations at unprecedented speeds, with significant implications for fields like cryptography and drug discovery [23][31]. - The industry is expected to see rapid growth, with specialized quantum computers anticipated to achieve performance breakthroughs by 2027 [34][31]. 5. Quantum Precision Measurement - Quantum precision measurement techniques are set to revolutionize fields such as navigation and medical diagnostics, with applications in quantum gyroscopes and atomic gravity sensors [36][38]. - The market for quantum precision measurement is projected to grow steadily, with a focus on technological innovation and standardization [40][41].

Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for its stock performance [14]. Core Viewpoints - The company specializes in precision welding equipment and is actively expanding into semiconductor packaging and new energy sectors, aiming to provide intelligent equipment solutions for the semiconductor packaging and testing fields [6][20]. - The recovery in consumer electronics is expected to drive continued growth in the precision welding equipment business, with smartphone shipments projected to reach 1.17 billion units in 2024, a 4% year-on-year increase [42]. - The new energy market is anticipated to grow, with electric vehicle sales expected to reach 18 million units by 2025, benefiting the company as it capitalizes on this trend [10][22]. - The semiconductor packaging sector presents a new growth opportunity, with the Chinese packaging and testing market projected to reach 324.84 billion yuan by 2026, positioning the company as a leader in domestic alternatives [23]. - The company has demonstrated stable revenue and net profit growth, with a 15.13% year-on-year increase in revenue to 683 million yuan in Q1-Q3 2024, and a 4.33% increase in net profit to 163 million yuan [24][52]. Summary by Sections Business Overview - The company is a professional supplier of intelligent equipment and complete solutions, focusing on precision electronic assembly and semiconductor packaging [20][21]. - It has developed key technologies in motion control, software systems, visual algorithms, and precision modules, resulting in a diverse product portfolio [20]. Financial Performance - Revenue for 2024 is projected to be 997.23 million yuan, with a year-on-year growth of 25.82%, and net profit expected to reach 253.6 million yuan, reflecting a 32.78% increase [12][52]. - The company has maintained a good control over its operating expenses, with a sales/management/R&D/financial expense ratio of 7.88%/4.38%/13.34%/-0.11% in Q1-Q3 2024 [24][47]. Profit Forecast and Investment Recommendations - The company is expected to achieve revenues of 997 million yuan, 1.22 billion yuan, and 1.44 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 254 million yuan, 313 million yuan, and 376 million yuan [52]. - The report anticipates an EPS of 1.02 yuan, 1.26 yuan, and 1.51 yuan for the same years, with PE ratios of 25, 20, and 17 times respectively [52].

Investment Rating - The report maintains a "Buy" rating for the insulin industry, indicating a positive outlook for stock performance relative to the benchmark index [151]. Core Insights - The diabetes patient population is large and continues to grow, providing a substantial market opportunity for diabetes medications. In 2021, there were approximately 1.41 billion diabetes patients in China, and the global diabetes medication market is projected to reach $184.4 billion by 2029, with a compound annual growth rate (CAGR) exceeding 10% [31][82]. - Insulin is considered the ultimate medication for diabetes treatment, with a long development history and significant market potential. The insulin market in China is expected to recover, with projections of reaching 22.3 billion yuan in 2024 [14][39]. - The penetration rate of insulin usage in China is relatively low at around 7%, compared to over 20% in the United States, indicating significant room for growth in the domestic market [26][39]. Summary by Sections Section 1: Diabetes Patient Population - The number of diabetes patients is on the rise, with global adult diabetes patients reaching 537 million in 2021, projected to increase to 783 million by 2045. In China, the number of adult diabetes patients is expected to grow from 141 million to 174 million by 2045 [59][31]. Section 2: Insulin as the Ultimate Medication - Insulin is crucial for diabetes management, especially for type 1 diabetes patients and many long-term type 2 diabetes patients. The development of insulin has evolved significantly, leading to various formulations that better meet patient needs [23][24]. Section 3: Market Growth and Procurement - The insulin market in China is expanding, with the market size expected to recover to 22.3 billion yuan in 2024 after a decline in 2022 due to centralized procurement policies. The centralized procurement has accelerated the replacement of imported insulin with domestic products, particularly third-generation insulin [39][32]. Section 4: International Expansion - Chinese insulin companies are increasingly focusing on international markets, particularly in Europe and the United States. Companies like Gan Li Pharmaceutical and Tonghua Dongbao are actively registering their products in these regions, which could become significant growth areas [39][98]. Section 5: Key Companies - Gan Li Pharmaceutical is a leading player in the third-generation insulin market, with a strong focus on international expansion. The company has shown significant revenue growth, recovering from the impacts of centralized procurement [112][114]. - Tonghua Dongbao has also demonstrated stable growth and is focusing on innovative research and development to enhance its market position [130][131].

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------|-------------------|-------|-----------------------------------------------|-------|--------|-------|-------|-------|-------| | 公司简称 | 市值 \n（亿元） | | 2023 2024E 2025E 2026E 2023 2024E 2025E 2026E | | EPS PE | | | | | | 天准科技 | 91.65 | 1.12 | 1.25 | 1.62 | 2.05 | 33.56 | 38.53 | 29.60 | 23.49 | | 凌云光 | 110.40 | 0.35 | 0.38 | 0.54 | 0.73 | 76.34 | 60.73 | 42.51 | 31.49 | | 海康威视 | 2833 | 1.51 | 1.55 | 1.79 | 2.07 | 22.96 | 19.87 | 17.16 | ...

Investment Rating - The report maintains a positive investment recommendation for the automotive and automotive parts industry, highlighting the potential for growth driven by advancements in intelligent driving technology and electric vehicles [3][19]. Core Insights - The automotive industry is experiencing significant advancements in intelligent driving technology, with companies like Tesla leading the way. Domestic manufacturers are following suit, accumulating data and computational power to enhance their algorithms [1][2]. - The penetration of intelligent driving features into mass-market vehicles is expected to increase, with projections indicating that by 2025, a significant portion of models from leading manufacturers will incorporate advanced driving systems [1][2]. - The report emphasizes that technological innovation and differentiation are crucial for creating consumer value, which is essential for competitiveness in the market [2]. Summary by Sections Industry Overview - The report discusses the evolution of the new energy vehicle market in China, noting that early models struggled to create consumer value. The entry of Tesla in 2014 marked a turning point, leading to a rapid increase in the popularity of new energy vehicles in the private market [2]. Technological Advancements - The report highlights the ongoing improvements in end-to-end technology and the acceleration of intelligent driving features in mass-market vehicles. Companies like BYD are expected to lead the charge in making advanced driving systems more accessible [1][4]. Market Trends - The report notes that the intelligent driving market is set to enter a period of widespread adoption, with a focus on the collaboration between electric and intelligent technologies as a key driver for global expansion [5][18]. Investment Opportunities - The report suggests monitoring the trends of intelligent driving implementation, the progress of leading manufacturers, and the potential investment opportunities arising from policy support and pilot projects [5][18].

Industry Investment Rating - The report does not explicitly mention an industry investment rating [1] Core Views - The report emphasizes the importance of technological innovation in driving the development of new productive forces and building a modern industrial system [3] - It highlights the need for breakthroughs in key core technologies and the integration of technological and industrial innovation [4] - The report underscores the role of digital and green technologies in upgrading traditional industries [3] - It also stresses the importance of expanding domestic demand and improving investment efficiency, with a focus on boosting consumption [10] Industry Analysis Automotive Industry - The automotive industry plays a crucial role in the national economy and is a key driver of consumption [13] - In 2024, the wholesale sales of passenger vehicles increased by 6% year-on-year, aligning closely with GDP growth projections [14] - The "old-for-new" policy has registered over 5.2 million vehicles by December 2024, indicating both support and overdraft effects [35] - The industry is expected to see continued policy support, with significant implications for sales, performance, and secondary market performance [83] Autonomous Driving and Smart Vehicles - Autonomous driving is identified as a critical force in the industry's future, with significant advancements in both technology and policy [56] - The report discusses the evolution of autonomous driving technologies, including the shift towards end-to-end models and the role of modular approaches [110][114] - Major players like Tesla, Xiaopeng, and Huawei are leading the way in autonomous driving technologies, with significant investments in computing power and data collection [129] - The report also highlights the potential for autonomous driving to reduce the number of vehicles needed, with implications for the industry's structure [81] Robotaxi and Commercial Vehicles - Robotaxi is gaining traction with technological advancements and policy support, though profitability remains a challenge in the short term [137][173] - The "Golden Triangle" model, involving technology companies, OEMs, and ride-hailing platforms, is becoming the mainstream approach for Robotaxi commercialization [144][164] - Commercial vehicles, particularly in closed or semi-closed environments like mines and ports, are expected to achieve commercialization earlier than passenger vehicles [180][204] - The integration of vehicle-road-cloud technologies is seen as a key driver for the future of commercial autonomous vehicles [188] Policy and Market Trends - The report outlines a series of policies aimed at promoting the development of intelligent connected vehicles, including the "Vehicle-Road-Cloud Integration" pilot program [225][228] - These policies are expected to accelerate the deployment of smart infrastructure and the adoption of autonomous driving technologies [222] - The report also discusses the potential for cost reductions in Robotaxi operations through technological advancements and policy optimizations [201] Conclusion - The automotive industry is at a critical juncture, with significant opportunities in autonomous driving, smart vehicles, and commercial applications [49][83] - Policy support and technological innovation are expected to drive the industry forward, with a focus on both domestic consumption and global competitiveness [10][225]

Investment Rating - The report gives a "Hold" rating to Qiangrui Technology (301128) with a neutral target price of 60 RMB and an upside target price of 70 RMB [7][14][115] Core Views - Qiangrui Technology benefits from the recovery of the consumer electronics market and the AI-driven smartphone replacement cycle, particularly through its integration into the Apple supply chain via clients like Luxshare Precision, Foxconn, and Jabil Green Point [2][14] - The company has entered the new energy vehicle (NEV) sector, supplying major automakers such as BYD, Seres, and others, and is expected to benefit from the increasing market share of its core clients in the NEV market [2][30] - The company has expanded into the liquid cooling sector through acquisitions and is actively developing new clients, which is expected to provide significant earnings elasticity and valuation upside [2][15] Mobile Terminal Business - Qiangrui Technology's mobile terminal business is driven by the steady recovery of smartphone sales and the frequent release of new models, which require updates to fixtures and equipment [2][14] - The company has established relationships with major smartphone manufacturers, including Huawei, OPPO, and vivo, and is well-positioned to benefit from the AI-driven smartphone replacement cycle [14][40] - The company's fixtures and equipment demand is expected to grow due to the rapid iteration of smartphone models and the need for frequent updates [14][22] New Energy Vehicle Business - Qiangrui Technology entered the NEV market in 2022 and has secured partnerships with major players like BYD and Seres, which are expected to drive growth as NEV sales and market penetration increase [2][30] - BYD, the company's core client, is the global leader in NEV sales, with a market share expected to reach 25% by 2024, while Seres is also gaining market share, expected to reach 2.5% by 2024 [30][47] - The company's NEV-related products are expected to enter a rapid growth phase as the NEV market expands [30] Liquid Cooling Business - The company has entered the liquid cooling market through acquisitions and is actively expanding its client base, including Huawei, ZTE, and potential North American clients [2][15] - With the increasing power density of data centers, liquid cooling is expected to become the mainstream solution, and Qiangrui Technology is well-positioned to benefit from this trend [15][68] - The company plans to expand its liquid cooling production capacity, which is expected to provide significant earnings elasticity and valuation upside [15][95] Financial Projections - The report forecasts Qiangrui Technology's revenue to grow by 60.2% in 2024, 51.3% in 2025, and 24.6% in 2026, with net profit expected to reach 110 million RMB in 2024, 172 million RMB in 2025, and 223 million RMB in 2026 [8][82] - The company's EPS is projected to be 1.48 RMB in 2024, 2.32 RMB in 2025, and 3.01 RMB in 2026, with a P/E ratio of 37x in 2024, 24x in 2025, and 18x in 2026 [8][115] Industry Trends - The global smartphone market is recovering, with AI-driven features expected to accelerate the replacement cycle, benefiting Qiangrui Technology's mobile terminal business [21][22] - The NEV market is experiencing rapid growth, with global penetration expected to increase, driving demand for Qiangrui Technology's NEV-related products [45][47] - The liquid cooling market is expected to grow significantly due to increasing data center power density, providing opportunities for Qiangrui Technology's new business segment [68][70]

Investment Rating - The report maintains a "Recommended" rating for the telecommunications and electronics industry, indicating a positive outlook for the sector [2][23]. Core Insights - The telecommunications industry is experiencing sustained high growth driven by advancements in AI, 5.5G, and satellite communications [23]. - The report highlights significant developments in the AI sector, particularly the launch of the Doubao visual understanding model, which offers a cost-effective solution for image processing [5][24]. - The overall market sentiment is positive, with the telecommunications sector index rising by 4.27% during the reporting week [29]. Summary by Sections Market Overview - The telecommunications sector index increased by 4.27% in the week of December 16-20, 2024, with the highest gains seen in the communication network equipment and devices sub-sector, which rose by 7.02% [8][13][23]. - Individual stocks within the telecommunications sector showed varied performance, with the highest gainers being Ruisi Kanda (61.09%), Bochuang Technology (50.11%), and Ruijie Networks (46.14%) [33]. Key Developments - The report notes that the global enterprise WLAN market grew by 5.8% quarter-on-quarter in Q3 2024, indicating a recovery in market dynamics after previous fluctuations [16][34]. - The European Space Agency signed a contract worth €10.55 billion for the Iris2 satellite communication project, aiming to deploy 290 satellites by 2030 [20][36]. - The Chinese intelligent computing service market saw a remarkable year-on-year growth of 79.6% in the first half of 2024, reaching a market size of 14.61 billion yuan [22][59]. Investment Focus - Recommended investment directions include the computing power industry chain and satellite internet, with specific companies highlighted for potential investment: - Computing Power: Zhongji Xuchuang, Xinyi Sheng, Yuanjie Technology, Huadian Co., and Industrial Fulian - Satellite Communication: Haige Communication, Fujida, China Telecom, and Fudan Microelectronics [24].