1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The bond market has been in a volatile and weakening pattern this week (7/7 - 7/11), with the stock - bond "seesaw" effect being the main trigger for market adjustments, along with tightened regulatory expectations and a convergent capital market in the second half of the week [1][6]. - In the past two weeks, the bond market has been in a volatile pattern. Although the market remains in a long - term mindset, the "fear of high prices" has not been alleviated. The trading logic mainly revolves around the capital market and the stock market, and the market is waiting for new signals [2][15]. - Looking ahead, factors such as the stock - bond linkage effect, the stability of capital interest rates, next week's economic and financial data, the July Politburo meeting, and the supply - demand game in the bond market are worthy of attention. In the third quarter, the bond market is still in a favorable environment, with long - term interest rates expected to fluctuate narrowly around 1.65%, and there is no need to overly worry about credit risks [3][28][29]. 3. Summary by Relevant Catalogs 3.1 Bond Market Volatility and Weakening - This week, the bond market was under pressure. The stock - bond "seesaw" was the main adjustment logic, and regulatory expectations and capital convergence also suppressed the market. From Monday to Friday, bond yields showed different changes, with short - term adjustments being more significant, and the yield curve flattened slightly. Most yields of certificates of deposit (CDs) also increased [1][6]. 3.2 Capital Interest Rates - This week, the capital market was first loose and then tight, with capital interest rates rising moderately. After the cross - quarter period, the capital interest rate center entered a downward channel, and DR001 still ran below the policy interest rate. The average weekly values of DR001, R001, DR007, and R007 changed compared to the previous week, and the capital stratification remained at a low level, although overnight capital stratification increased in the second half of the week [8][10]. 3.3 Profit - Taking or Re - Layout Opportunity - In the past two weeks, the bond market has shown different trends. Last week, it was volatile and relatively strong, while this week it was volatile and weak due to the shift of the capital market to a neutral state and the rise of the stock market, leading to some short - term profit - taking [15]. - There are several characteristics: 1) When the capital interest rate "stepped down", the market did not follow. Except for the 50 - year Treasury bond, other long - term bond yields were mostly in a sideways state, and the spreads between 10 - year and 30 - year Treasury bonds and DR007 reached relatively high levels since the second quarter [16]. 2) The volatility of credit - type assets was greater than that of interest - rate bonds. Last week, different assets compressed spreads, but this week they entered an adjustment phase, with Tier 2 and perpetual bonds having a greater adjustment amplitude [21]. 3) Behind the "V" - shaped trend of credit - type assets, the trading desks mainly composed of funds shifted from increasing allocations to taking profits. Last week, funds bought credit and Tier 2 and perpetual bonds, but this week, their buying power weakened, and they started to reduce holdings in the second half of the week [22]. - The bond market's volatile pattern is due to the balance of long and short forces. The fundamental structural repair supports the bond market, while the monetary policy is in a dynamic balance between "moderate" and "loose". Although there are expectations for overall easing policies in the second half of the year, the probability of short - term implementation is relatively low [26]. 3.4 Factors to Watch in the Future - Stock - bond linkage effect: If the stock market is supported by factors such as tariff game mitigation, policy strengthening, or fundamental improvement, it will affect the bond market through changes in institutional liability and allocation power, increasing market volatility [3][28]. - Capital interest rates: Whether capital interest rates can remain at a low level needs to be observed. Next week, there will be more "variables" in the capital market, and how the central bank responds to various factors will be an important determinant of the stability of capital interest rates [3][28]. - Economic and financial data and the July Politburo meeting: Next week's economic and financial data and the July Politburo meeting may release incremental signals, which are important windows for macro - policy adjustment [29]. - Supply - demand game in the bond market: In the third quarter, there may be a surge in government bond supply, which may disrupt the bond market, but considering the current coordination between monetary and fiscal policies, there may be no need for excessive concern. The allocation situation of configuration desks such as bank self - operations and insurance companies also needs attention [3][28][29]. 3.5 Next Week's Focus - Next week, a series of economic and financial data from China, Germany, the EU, the US, the UK, and Japan will be released, including import and export amounts, social financing scale, GDP, CPI, and PPI, which are worthy of attention [31].

Group 1: Davis Double-Click Strategy - The Davis Double-Click strategy involves buying stocks with growth potential at lower price-to-earnings (PE) ratios, waiting for growth to manifest, and then selling as the PE increases, achieving a multiplier effect on returns [1][7][10] - The strategy achieved an annualized return of 26.45% during the backtest period from 2010 to 2017, exceeding the benchmark by 21.08% [9] - Year-to-date, the strategy has delivered an absolute return of 20.07%, outperforming the CSI 500 index by 14.81% [10] Group 2: Net Profit Discontinuity Strategy - The Net Profit Discontinuity strategy focuses on selecting stocks based on fundamental and technical resonance, where "net profit" refers to earnings surprises and "discontinuity" indicates a significant upward price gap on the first trading day after earnings announcements [2][12] - This strategy has achieved an annualized return of 29.48% since 2010, with an annualized excess return of 27.54% over the benchmark [16] - Year-to-date, the strategy has recorded an absolute return of 32.83%, exceeding the benchmark index by 27.56% [16] Group 3: Enhanced CSI 300 Portfolio - The Enhanced CSI 300 portfolio is constructed based on investor preferences, including GARP (Growth at a Reasonable Price), growth, and value investing styles, utilizing PBROE and PEG factors to identify undervalued stocks with strong profitability and growth potential [3][18] - The portfolio has shown stable excess returns in historical backtesting, with a year-to-date excess return of 15.20% relative to the CSI 300 index [20] - The strategy has delivered a weekly excess return of 0.51% and a monthly excess return of 0.58% [20]

Investment Rating - Industry rating is maintained at "Outperform the Market" [2] Core Insights - The report highlights the Sichuan provincial government's implementation plan to promote the controllable nuclear fusion industry, emphasizing significant engineering breakthroughs in magnetic confinement and inertial confinement fusion technologies [3] - Sichuan has established a comprehensive layout in the nuclear fusion field, covering both magnetic and inertial confinement routes, and is actively pursuing international collaborations to enhance its technological capabilities [4] - The report suggests focusing on companies within the nuclear fusion supply chain, including leading suppliers of high-temperature superconducting magnets and materials essential for fusion devices [5] Summary by Sections Government Support - The Sichuan provincial government has explicitly supported the controllable nuclear fusion industry, marking a significant policy shift compared to other regions [3] - The plan includes the construction of key facilities and the acceleration of technology transfer to foster innovation [3] Technological Developments - Sichuan has achieved notable breakthroughs in nuclear fusion technology, including reaching a temperature of 100 million degrees Celsius and significant advancements in fusion product metrics [9] - The establishment of the electromagnetic-driven fusion large scientific device aims to validate the feasibility of fusion ignition [4] Investment Opportunities - Recommended companies for investment include: - Lianchuang Optoelectronics, a leading supplier of high-temperature superconducting magnets - Yongding Co., a major supplier of high-temperature superconducting materials - Guoguang Electric, which provides essential components for controllable nuclear fusion devices [5]

Investment Rating - Industry Rating: Outperform the market (maintained rating) [1] Core Views - The report highlights that MP Materials will receive significant investment from the U.S. Department of Defense, which is expected to enhance the domestic production capacity of rare earth magnets and potentially raise the price ceiling for praseodymium and neodymium products [4][9] - Short-term impacts on the industry are expected to be limited due to the time required for MP Materials' expansion, with the new magnet manufacturing facility projected to be operational by 2028 [5] - The report indicates that the price floor set by the U.S. government for praseodymium and neodymium products is significantly higher than current domestic prices, suggesting a potential upward shift in domestic pricing [5] Summary by Sections Basic and Precious Metals - Copper prices have declined due to tariff disturbances and seasonal demand weakness, with domestic consumption showing a slight increase as prices fall [6][14] - Aluminum prices have also decreased, influenced by external market conditions and reduced demand from the aluminum rod and plate sectors [20][22] - Precious metals, particularly gold and silver, have seen price increases attributed to renewed safe-haven demand amid geopolitical tensions and economic data [7][26] Minor Metals - The report notes stability in antimony prices, with a prevailing bullish sentiment despite limited market transactions [8] - The rare earth sector is experiencing a fundamental recovery, with prices for light rare earths increasing due to the positive sentiment from MP Materials' investment [9][42] Market Predictions - The report anticipates that copper prices will stabilize in the near term, with a projected trading range of 77,500 to 79,000 CNY/ton [15] - Aluminum prices are expected to fluctuate within a range of 20,300 to 21,000 CNY/ton [21] - Gold and silver prices are predicted to continue their wide-ranging adjustments, with gold expected to trade between 750 to 800 CNY/gram [27]

Investment Rating - The industry rating is maintained as "Outperform the Market" [5] Core Insights - The construction sector has seen a significant increase in attention towards urban renewal, with undervalued large-cap stocks showing signs of stabilization. The sector's performance is driven by improved demand-side policy expectations and a shift away from excessive competition, benefiting both large and small-cap stocks. The report suggests focusing on high-growth segments such as urban renewal, coal chemical, nuclear power, and steel structures, while also considering the beta opportunities in large-cap stocks [1][13][14]. Summary by Sections Urban Renewal - Urban renewal is accelerating, with policies from the central government outlining goals and support measures. The focus includes the renovation of old residential areas, establishing safety management systems for buildings, and creating resilient and smart cities. The report identifies four key categories for investment: design and testing, construction and decoration, urban infrastructure renovation, and resilient/smart city initiatives, highlighting specific companies in each category [2][15][17]. Market Performance - The construction index rose by 2.77% in the week of July 7-11, outperforming the Shanghai and Shenzhen 300 index by 1.76 percentage points. Notable performers included Guosheng Technology (+42.98%), New City (+34.73%), and Beautiful Ecology (+34.46%) [4][21][26]. Investment Recommendations - The report emphasizes the cyclical opportunities arising from improved physical work volume in infrastructure. It suggests focusing on high-demand areas such as water conservancy, railways, and aviation, particularly in regions like Sichuan, Zhejiang, Anhui, and Jiangsu. Recommended companies include Sichuan Road and Bridge, Zhejiang Communications, and major state-owned enterprises like China Communications Construction and China Railway Construction [27][28]. Emerging Business Directions - The report highlights the growing demand for computing power driven by AI applications, recommending companies like Hainan Huatie for their transition into computing power leasing. It also notes the potential in cleanroom sectors due to the ongoing domestic replacement in the semiconductor industry, suggesting companies like Baicheng and Shenghui Integration [29][30]. Major Projects and Themes - The report identifies significant investment opportunities in major hydropower projects, deep-sea economy, and low-altitude economy, recommending companies involved in these sectors, such as China Power Construction and China Energy Engineering [32][30].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The real - estate market shows weak supply and demand, and more aggressive easing policies may be needed in the second half of the year. The strength of policy implementation will significantly affect the real - estate market and investment. Industrial production runs smoothly, and infrastructure construction starts strongly. There are fluctuations in consumption, investment, trade, and prices, and the issuance progress of interest - rate bonds is relatively fast. [1][2][3][4][5][6] 3. Summary by Related Catalogs 3.1 Demand - New home sales declined both month - on - month and year - on - year, with significant drops in first - and second - tier cities. The real - estate market's supply and demand are weak, and more aggressive easing policies are needed to release the demand for improved housing. If policy strength exceeds expectations, the decline in real - estate sales and investment may slow down; otherwise, the market may remain at a low level. Second - hand home sales also decreased month - on - month. Automobile consumption declined marginally, while the national migration scale index increased, and the subway passenger volume in first - tier cities decreased. [11][41] 3.2 Production - In the mid - and upstream sectors, the blast furnace operating rate in Tangshan decreased, while the PTA operating rate increased. In the downstream sectors, the operating rates of automobile all - steel and semi - steel tires improved, and the semi - steel tire operating rate remained at a seasonal high. The infrastructure construction start - up showed marginal improvement. [48] 3.3 Investment - The apparent consumption of rebar decreased, but its price increased. The price of cement decreased, and the cement shipment rate and inventory ratio also declined. [64] 3.4 Trade - In terms of exports, port container throughput decreased, and the overall container shipping price declined, with the European route rising and the US West and East routes falling. The BDI index increased. In terms of imports, the container shipping price continued to decline. [75] 3.5 Prices - Agricultural product prices showed a marginal improvement, with pork and vegetable prices rising and egg and fruit prices falling. International crude oil prices generally increased, while the price of gold slightly declined. [86][96] 3.6 Interest - rate Bond Tracking - Next week (July 14 - 18), the planned issuance of interest - rate bonds is 500.2 billion yuan, with a net financing of - 10.6 billion yuan. As of July 11, the cumulative issuance progress of replacement bonds exceeded 90%, and the issuance progress of new general bonds and new special bonds was 58.3% and 50.6% respectively. [106][109][112] 3.7 Policy Weekly Observation - The central bank increased its gold reserves for the 8th consecutive month in June. The State Council issued a notice to support stable employment. The Shanghai Composite Index broke through 3500 points. Trump announced a 50% tariff on copper starting from August 1. The Ministry of Finance adjusted the assessment of state - owned commercial insurance companies. Some cities adjusted housing - related policies, including housing provident fund policies and housing consumption supply optimization. [118][119][120][121][122][123]

Group 1 - The core viewpoint of the report indicates that Huaxia Fund's Huaxia China Resources Commercial REIT plans to initiate a second round of fundraising to acquire infrastructure projects, which include the Hangzhou Xiaoshan Mixc Project, Shenyang Changbai Mixc Project, and Zibo Mixc Project, effectively expanding the fund's coverage of consumer infrastructure across different cities [1][7] - The new acquisitions are expected to diversify the fund's asset portfolio, reduce risks, and enhance the growth potential while ensuring stable cash flow [1][7] Group 2 - In the market performance section, the report notes that during the week of July 7 to July 11, 2025, the CSI REITs total return index fell by 1.12%, with the total REITs index down by 1.68% [2][17] - The report highlights that the total REITs index underperformed compared to the CSI 300 index by 2.50 percentage points and the CSI All Bond index by 1.57 percentage points [2][17] - Individual REITs such as the Jiashi JD Warehouse Infrastructure REIT, CICC China Green Development Commercial REIT, and Southern SF Logistics REIT showed gains of 4.25%, 1.01%, and 0.79% respectively [2][17] Group 3 - The liquidity analysis reveals that the total trading volume of REITs decreased to 550 million yuan, a 17.4% decline from the previous week [3][39] - The report details that the trading volumes for property and operating rights REITs were 331 million yuan and 213 million yuan, reflecting decreases of 12.6% and 14.1% respectively [3][39] - Among various REIT categories, the traffic infrastructure REITs had the highest trading volume, accounting for 23.4% of the total [3][39] Group 4 - The report states that as of July 11, 2025, the total issuance scale of listed REITs reached 177.1 billion yuan, with 68 REITs issued [8][10] - It mentions that the issuance pace of C-REITs has slowed down in 2023 but is expected to accelerate in 2024, indicating a normalization in the issuance process [15][16] Group 5 - The valuation section provides insights into the bond yield and P/NAV ratios for various REITs, indicating that the Huaxia China Resources Commercial REIT has a bond yield of 2.95% and a P/NAV of 1.51, both in the 99th percentile historically [44] - The report includes a comparative analysis of different asset types, showing varying yields and historical percentiles for P/NAV across multiple REITs [44]

Quantitative Factors and Construction Methods Factor Name: BP - Construction Idea: Current net asset divided by current total market value[13] - Construction Process: $ BP = \frac{Current \ Net \ Asset}{Current \ Total \ Market \ Value} $[13] Factor Name: BP Three-Year Percentile - Construction Idea: Stock's current BP in the last three years percentile[13] - Construction Process: $ BP \ Three-Year \ Percentile = \frac{Current \ BP}{BP \ in \ Last \ Three \ Years} $[13] Factor Name: Quarterly EP - Construction Idea: Quarterly net profit divided by net asset[13] - Construction Process: $ Quarterly \ EP = \frac{Quarterly \ Net \ Profit}{Net \ Asset} $[13] Factor Name: Quarterly EP One-Year Percentile - Construction Idea: Stock's current quarterly EP in the last one year percentile[13] - Construction Process: $ Quarterly \ EP \ One-Year \ Percentile = \frac{Current \ Quarterly \ EP}{Quarterly \ EP \ in \ Last \ One \ Year} $[13] Factor Name: Quarterly SP - Construction Idea: Quarterly operating income divided by net asset[13] - Construction Process: $ Quarterly \ SP = \frac{Quarterly \ Operating \ Income}{Net \ Asset} $[13] Factor Name: Quarterly SP One-Year Percentile - Construction Idea: Stock's current quarterly SP in the last one year percentile[13] - Construction Process: $ Quarterly \ SP \ One-Year \ Percentile = \frac{Current \ Quarterly \ SP}{Quarterly \ SP \ in \ Last \ One \ Year} $[13] Factor Name: Quarterly Asset Turnover Rate - Construction Idea: Quarterly operating income divided by total asset[13] - Construction Process: $ Quarterly \ Asset \ Turnover \ Rate = \frac{Quarterly \ Operating \ Income}{Total \ Asset} $[13] Factor Name: Quarterly Gross Profit Margin - Construction Idea: Quarterly gross profit divided by quarterly sales income[13] - Construction Process: $ Quarterly \ Gross \ Profit \ Margin = \frac{Quarterly \ Gross \ Profit}{Quarterly \ Sales \ Income} $[13] Factor Name: Quarterly ROA - Construction Idea: Quarterly net profit divided by total asset[13] - Construction Process: $ Quarterly \ ROA = \frac{Quarterly \ Net \ Profit}{Total \ Asset} $[13] Factor Name: Quarterly ROE - Construction Idea: Quarterly net profit divided by net asset[13] - Construction Process: $ Quarterly \ ROE = \frac{Quarterly \ Net \ Profit}{Net \ Asset} $[13] Factor Name: Quarterly Net Profit Year-on-Year Growth - Construction Idea: Quarterly net profit year-on-year growth rate[13] - Construction Process: $ Quarterly \ Net \ Profit \ Year-on-Year \ Growth = \frac{Current \ Quarterly \ Net \ Profit - Last \ Year \ Quarterly \ Net \ Profit}{Last \ Year \ Quarterly \ Net \ Profit} $[13] Factor Name: Quarterly Revenue Year-on-Year Growth - Construction Idea: Quarterly revenue year-on-year growth rate[13] - Construction Process: $ Quarterly \ Revenue \ Year-on-Year \ Growth = \frac{Current \ Quarterly \ Revenue - Last \ Year \ Quarterly \ Revenue}{Last \ Year \ Quarterly \ Revenue} $[13] Factor Name: Quarterly ROE Year-on-Year Growth - Construction Idea: Quarterly ROE year-on-year growth rate[13] - Construction Process: $ Quarterly \ ROE \ Year-on-Year \ Growth = \frac{Current \ Quarterly \ ROE - Last \ Year \ Quarterly \ ROE}{Last \ Year \ Quarterly \ ROE} $[13] Factor Name: Standardized Unexpected Earnings - Construction Idea: Current quarterly net profit minus the average quarterly net profit growth rate of the past eight quarters divided by the standard deviation of the quarterly net profit growth rate of the past eight quarters[13] - Construction Process: $ Standardized \ Unexpected \ Earnings = \frac{Current \ Quarterly \ Net \ Profit - (Last \ Year \ Quarterly \ Net \ Profit + Average \ Quarterly \ Net \ Profit \ Growth \ Rate \ of \ Past \ Eight \ Quarters)}{Standard \ Deviation \ of \ Quarterly \ Net \ Profit \ Growth \ Rate \ of \ Past \ Eight \ Quarters} $[13] Factor Name: Standardized Unexpected Revenue - Construction Idea: Current quarterly revenue minus the average quarterly revenue growth rate of the past eight quarters divided by the standard deviation of the quarterly revenue growth rate of the past eight quarters[13] - Construction Process: $ Standardized \ Unexpected \ Revenue = \frac{Current \ Quarterly \ Revenue - (Last \ Year \ Quarterly \ Revenue + Average \ Quarterly \ Revenue \ Growth \ Rate \ of \ Past \ Eight \ Quarters)}{Standard \ Deviation \ of \ Quarterly \ Revenue \ Growth \ Rate \ of \ Past \ Eight \ Quarters} $[13] Factor Name: Dividend Yield - Construction Idea: Recent annual dividend divided by current market value[13] - Construction Process: $ Dividend \ Yield = \frac{Recent \ Annual \ Dividend}{Current \ Market \ Value} $[13] Factor Name: Performance Forecast Accuracy - Construction Idea: Single quarter performance forecast upper limit minus single quarter performance forecast lower limit divided by the average of the single quarter performance forecast upper limit and lower limit multiplied by -1[13] - Construction Process: $ Performance \ Forecast \ Accuracy = \frac{Single \ Quarter \ Performance \ Forecast \ Upper \ Limit - Single \ Quarter \ Performance \ Forecast \ Lower \ Limit}{(Single \ Quarter \ Performance \ Forecast \ Upper \ Limit + Single \ Quarter \ Performance \ Forecast \ Lower \ Limit)/2} \times (-1) $[13] Factor Name: Top Five Shareholders' Holding Ratio Sum - Construction Idea: Sum of the squares of the top five shareholders' holding ratios[13] - Construction Process: $ Top \ Five \ Shareholders' \ Holding \ Ratio \ Sum = \sum_{i=1}^{5} (Holding \ Ratio_i)^2 $[13] Factor Name: 90-Day Analyst Coverage - Construction Idea: Analyst coverage in the past 90 days[13] - Construction Process: $ 90-Day \ Analyst \ Coverage = \frac{Number \ of \ Analysts \ Covering \ the \ Stock \ in \ the \ Past \ 90 \ Days}{Total \ Number \ of \ Analysts} $[13] Factor Name: Consensus Expected Net Profit Compound Growth Rate - Construction Idea: Consensus expected net profit three-year compound growth rate[13] - Construction Process: $ Consensus \ Expected \ Net \ Profit \ Compound \ Growth \ Rate = \frac{Consensus \ Expected \ Net \ Profit \ in \ Three \ Years}{Current \ Net \ Profit} $[13] Factor Name: Consensus Expected EPS Change - Construction Idea: Consensus expected EPS divided by the average consensus expected EPS in the last 120 days[13] - Construction Process: $ Consensus \ Expected \ EPS \ Change = \frac{Consensus \ Expected \ EPS}{Average \ Consensus \ Expected \ EPS \ in \ the \ Last \ 120 \ Days} $[13] Factor Name: 90-Day Net Upward Revision Ratio - Construction Idea: Ratio of analysts who revised earnings forecasts upward minus the ratio of analysts who revised earnings forecasts downward in the past 90 days[13] - Construction Process: $ 90-Day \ Net \ Upward \ Revision \ Ratio = \frac{Number \ of \ Analysts \ Revising \ Upward}{Total \ Number \ of \ Analysts} - \frac{Number \ of \ Analysts \ Revising \ Downward}{Total \ Number \ of \ Analysts} $[13] Factor Name: 90-Day Expected Adjustment Mean - Construction Idea: Average adjustment magnitude of analysts' earnings forecasts in the past 90 days[13] - Construction Process: $ 90-Day \ Expected \ Adjustment \ Mean = \frac{Sum \ of \ Analysts' \ Earnings \ Forecast \ Adjustments \ in \ the \ Past \ 90 \ Days}{Total \ Number \ of \ Analysts} $[13] Factor Name: Financial Report Exceeding Research Report Expectation Degree - Construction Idea: Degree to which the financial report exceeds the research report expectation within 5 days of the financial report release[13] - Construction Process: $ Financial \ Report \ Exceeding \ Research \ Report \ Expectation \ Degree = \frac{Financial \ Report \ Value - Research \ Report \ Expectation}{Research \ Report \ Expectation} $[13] Factor Name: Standardized Unexpected Earnings Based on Consensus Expectation - Construction Idea: Quarterly net profit minus quarterly consensus expected net profit divided by the consensus expected net profit dispersion[13] - Construction Process: $ Standardized \ Unexpected \ Earnings \ Based \ on \ Consensus \ Expectation = \frac{Quarterly \ Net \ Profit - Quarterly \ Consensus \ Expected \ Net \ Profit}{Consensus \ Expected \ Net \ Profit \ Dispersion} $[13] Factor Name: 1-Month Turnover Rate and Average Price Correlation - Construction Idea: Correlation coefficient between stock turnover rate and average price in the past 20 trading days[13] - Construction Process: $ 1-Month \ Turnover \ Rate \ and \ Average \ Price \ Correlation = \frac{Cov(Turnover \ Rate, \ Average \ Price)}{Std(Turnover \ Rate)

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 8.86 CNY, indicating an expected return of over 20% within the next six months [6]. Core Viewpoints - The company is focusing on the development trends of cryptocurrencies and stablecoins, emphasizing innovation and the integration of digital currency research into its operations [1]. - The company has a significant operational asset base from its investment projects, generating substantial traffic data assets, with projected revenue from four highway projects reaching 1.31 billion CNY in 2024 [1]. - The company is actively expanding into new business areas such as low-altitude economy and smart transportation, with digital information business revenue expected to grow from 317 million CNY in 2023 to 401 million CNY in 2024 [2]. - The company has signed new orders worth 1,030 billion CNY in 2024, reflecting an 8.01% year-on-year increase, with significant growth in municipal and energy sectors [3]. Financial Summary - The company's revenue for 2023 is projected at 74.19 billion CNY, with a growth rate of 13.66%, followed by a decline to 68.82 billion CNY in 2024 [5]. - The net profit attributable to the parent company is expected to be 2.94 billion CNY in 2023, with a slight decrease to 2.84 billion CNY in 2024, before rising to 3.10 billion CNY in 2025 [5]. - The company’s earnings per share (EPS) is forecasted to be 0.93 CNY in 2023, decreasing to 0.90 CNY in 2024, and then increasing to 0.98 CNY in 2025 [5]. - The company’s price-to-earnings (P/E) ratio is projected to be 6.75 in 2023, slightly increasing to 6.98 in 2024, and then decreasing to 6.41 in 2025 [5].

Group 1 - The core conclusion of the report indicates that the current consolidation in the consumer sector is a pause rather than an end, drawing parallels from the long transformation processes in the US and Japan [1][10]. - The report identifies a common trend in consumer behavior shifting from family-oriented consumption to individual-focused consumption, with a transition from optional consumption in urban lifestyles to personal spiritual consumption, often accompanied by a decline in GDP growth rates [2][4]. - It is noted that China is currently transitioning from high-speed growth to high-quality growth, with economic indicators resembling the later stages of Japan's third consumption society and the latter half of the US brand consumption phase [4][26]. Group 2 - For essential consumption, the investment strategy is based on a "bottom warehouse" thinking, focusing on undervalued quality growth stocks with high dividend yields, particularly in the food and beverage and textile sectors [5][40]. - The report emphasizes that the essential consumption sector is largely in a mature stage, characterized by stable low growth, and suggests that the investment approach should prioritize low valuation and high ROE [5][40]. - In the optional consumption sector, the report suggests that the configuration strategy should focus on operational improvement indicators from financial reports, aligning investments with macroeconomic data improvements [6][51]. Group 3 - The report highlights that the current consumer data may indicate a fundamental turning point, with macroeconomic data showing positive signals, particularly in the optional consumption sector [6][51]. - It is suggested that the configuration strategy for optional consumption should involve selecting companies with operational improvements based on financial reports and macroeconomic data trends [6][51]. - Specific sectors to focus on include motorcycles and home appliances, with an emphasis on identifying companies that show marginal improvements in ROE and profit growth [6][51].