1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - In 2025, fiscal policy exerted force in advance, supporting macro - economic stability and local debt resolution. The report focuses on the characteristics of local government bonds from the beginning of the year to the end of the third quarter [9] 3. Summary According to Relevant Catalogs 3.1 Local Debt Primary Issuance Characteristics - **Feature 1: The theoretical early - batch quota for 2026 reaches 3.12 trillion yuan** - The early - batch quota for local government bonds may be normally issued at the end of the year, but formal issuance may occur after the new year. Based on 60% of the previous year's new quota, the theoretical scale of the early - batch quota for 2026 is 3.12 trillion yuan [10] - **Feature 2: Issuance and net financing scale reach a record high for the same period** - As of the third quarter of 2025, the local debt issuance scale reached 853.32 billion yuan, a year - on - year increase of 184.56 billion yuan. The net financing scale reached 615.18 billion yuan, an increase of 216.33 billion yuan compared to the same period in 2024. The issuance of new general bonds was small and stable, while new special bonds were mainly issued in the first and third quarters [11][18] - **Feature 3: Issuance structure: The proportion of new special bonds has rebounded, and the proportion of refinancing special bonds has declined** - As of the third quarter of 2025, new special bonds and refinancing special bonds accounted for 43% and 33% respectively. The proportion of refinancing general bonds was 16%, and the proportion of new general bonds was 8% [22] - **Feature 4: The issuance rhythm of special bonds is advanced, and the issuance accelerated significantly in the third quarter** - As of September 2025, the cumulative issuance of new special bonds reached 367.72 billion yuan, the highest in history [24] - **Feature 5: Special new special bonds were issued beyond expectations, and the 2 - trillion - yuan implicit debt replacement is nearing completion** - As of the third quarter of 2025, special new special bonds exceeded 1.2 trillion yuan, mainly for local debt resolution and local arrears clearance. The refinancing special bonds for replacing implicit debt reached 198.62 billion yuan [26] - **Feature 6: The issuance of land reserve special bonds is regionally concentrated, and there is still a gap between the actual issuance and the announced scale** - As of the third quarter of 2025, 10 provinces issued land reserve special bonds, with a total scale of 34.69 billion yuan. As of October 14, 2025, the announced land acquisition scale was 62.44 billion yuan [32] - **Feature 7: The proportion of the issuance scale of special bonds in "self - reviewed and self - issued" provinces has increased** - From 2020 - 2024, the proportion of the issuance scale of special bonds in the pilot areas was about 54%, and it rose to 64% as of the third quarter of 2025, possibly due to faster approval [37] - **Feature 8: The issuance term has been extended** - As of the third quarter of 2025, the average issuance term of local government bonds was 14.60 years, an increase of 1.37 years compared to 2024. The proportion of local government bonds with a term of over 15 years increased in both scale and quantity [39][43] - **Feature 9: The issuance interest rate and spread rebounded in the third quarter** - As of the third quarter of 2025, the average issuance interest rate of local government bonds was 1.94%, and the average issuance spread was 14.22 basis points, a rebound of 5.74 basis points compared to 2024. The spread rose significantly from August to September [47] - **Feature 10: The spreads in various regions widened overall in the third quarter, and the differentiation was still obvious** - In the third quarter of 2025, the spreads in various regions widened, but the credit differentiation pattern between regions was still obvious, generally following the rule that "the stronger the fiscal strength, the lower the spread" [53] - **Feature 11: The spread of special refinancing bonds is higher than that of ordinary refinancing bonds** - The spread of special refinancing bonds is higher, mainly because the issuance term of special refinancing bonds is generally longer. Nationally, the spreads of special refinancing bonds and special new special bonds are 17.19BP and 17.75BP respectively, higher than those of ordinary refinancing bonds and ordinary new special bonds [55] 3.2 Local Debt Secondary Transaction Characteristics - **Feature 12: The trading volume increased, the trading price rose, and the turnover rate decreased** - As of the third quarter of 2025, the trading volume of local government bonds was 16.08 trillion yuan, an increase compared to the same period in 2024. The turnover rate was 3.53%, a year - on - year decrease of 0.17 percentage points, mainly due to the significant decline in the turnover rate of general bonds [59] 3.3 Local Debt Institutional Behavior Characteristics - **Feature 13: The market is still mainly in a buying state, but the buying volume and net buying amount have both decreased** - As of the third quarter, the market was still mainly in a buying state, but the buying volume and net buying amount decreased. Insurance was the largest buyer, and institutions such as large - scale banks, joint - stock banks, city commercial banks, and securities firms were net sellers [4]

Group 1: Dairy Industry Insights - The report indicates that despite short-term support for milk prices due to holiday consumption, the trend of capacity reduction in dairy companies continues, and the peak of milk prices is expected to be reached soon [3] - The report highlights a significant decline in beef exports from the US to mainland China, which fell by 46% year-on-year in the first seven months of 2025, creating favorable conditions for price increases [3] - The recovery in culling cow prices is anticipated to directly improve the performance of dairy companies, with a long-term trend of narrowing losses in culling cows expected to persist [3] Group 2: Cobalt Market Analysis - The report discusses the recent quota distribution for cobalt from the Democratic Republic of Congo, with a total quota of 96,600 tons, which is significantly lower than last year's export volume, indicating a potential supply shortage [23][26] - Current inventory levels are critical, with an estimated four months of inventory in the supply chain, which could lead to increased prices as demand rises [26] - The report suggests focusing on companies less affected by Congolese policies, such as Huayou Cobalt and Luoyang Molybdenum, which are expected to benefit from the recent quota announcements [27] Group 3: Automotive Sector Overview - The report covers Futec Technology as a leading supplier of high-voltage power systems for electric vehicles, with a strong customer base including major automotive brands [20][21] - The company is expected to see significant revenue growth, with projected revenues of 2.996 billion, 3.608 billion, and 4.272 billion yuan from 2025 to 2027 [22] - The automotive power supply industry is characterized by trends towards higher voltage, integration, and diversification of functions, positioning Futec Technology favorably for future growth [21] Group 4: Construction and Steel Industry - Honglu Steel Structure reported a year-on-year increase in new orders, with a total of 22.267 billion yuan in new contracts signed in the first three quarters of 2025, indicating a positive outlook for Q4 production [10] - The report emphasizes the potential for improved profit margins due to rising steel prices, which could enhance the company's net profit per ton significantly [10] - The company has invested in advanced welding technology, which is expected to improve production efficiency and reduce costs [10]

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage in the automotive and automotive parts industry [7]. Core Insights - The company is a leading third-party supplier of high-voltage power systems for electric vehicles, continuously expanding its customer base both domestically and internationally [1][3]. - The company has established a strong foundation with major clients, including well-known automotive manufacturers, and is expected to see significant revenue growth driven by the increasing demand for electric vehicles [1][3][5]. - The report forecasts that the company's revenue will reach approximately 2.996 billion, 3.608 billion, and 4.272 billion yuan in 2025, 2026, and 2027, respectively, with corresponding net profits of 159 million, 204 million, and 254 million yuan [5][6]. Summary by Sections 1. Deepening the High-Voltage Power System for New Energy Vehicles - The company has transitioned from grid charging products to high-voltage power systems for electric vehicles, establishing a robust product development system [15]. - The main business has shown steady growth, with high-voltage power systems accounting for over 90% of revenue [18][20]. - The company has a stable shareholding structure and experienced management team, which supports its operational effectiveness [27]. 2. Competitive Landscape and Future Trends in the Onboard Power Supply Industry - The industry is witnessing a shift towards high-voltage, integrated, and multifunctional power supply systems, which are essential for enhancing charging efficiency and reducing costs [2][42]. - The company is well-positioned to capitalize on these trends, with a focus on integrating core components and utilizing new materials [42][46]. 3. Advantages in the Onboard Power Supply Industry - The company is recognized as a leading third-party supplier in the domestic market, with a diverse client base and a rich project pipeline [3][51]. - The report highlights the company's competitive advantages over overseas suppliers in technology, experience, and cost [3][51]. 4. Breakthroughs in Non-Onboard High-Voltage Power Systems - The company has achieved significant advancements in high-power AC/DC and DC/DC liquid cooling modules, expanding its application scenarios [4]. 5. Profit Forecast and Investment Rating - The company is expected to achieve substantial revenue growth, driven by its leadership in the onboard power supply market and the contribution from non-onboard power systems [5][6].

Investment Rating - Industry Rating: Outperform the Market (maintained rating) [7] Core Viewpoints - The recent quota policy from the Democratic Republic of the Congo (DRC) has set a total quota of 96,600 tons, with a base quota remaining unchanged at 87,000 tons. Major companies receiving quotas include Luoyang Molybdenum (36% share), Glencore (22% share), and Eurasian Resources (12% share) [2][3] - The quota distribution aligns with expectations, although the local DRC company EGC received a quota despite minimal past exports, likely due to local policy support. The introduction of a 10% royalty fee on cobalt sales will significantly increase local revenue [3][4] Summary by Sections Quota Distribution - The quota distribution is based on historical export volumes from January 1, 2022, to December 31, 2024. The current quota aligns with expectations, with the DRC's local company EGC receiving a quota despite limited past exports [3] - The total quota of 96,600 tons represents a 56% decrease compared to last year's exports of nearly 220,000 tons, indicating a tightening supply-demand balance [4] Market Outlook - The current inventory situation is critical, with an estimated four months of inventory across the supply chain. This could lead to increased supply tension if any segment of the chain holds excess stock [4] - As of October 13, prices for cobalt sulfate, lithium cobalt oxide, and battery-grade cobalt have increased by 40%, 38%, and 29% respectively from September 22 to October 13, indicating strong downstream demand [4] Investment Recommendations - Short-term expectations include continued inventory depletion and potential price increases due to low inventory levels. The long-term logic suggests a direct supply-demand balance or even a shortage, leading to an upward adjustment in cobalt prices [5] - Companies not significantly affected by DRC policies, such as Huayou Cobalt and Likin Resources, as well as Luoyang Molybdenum, which has now clarified its quota status, are recommended for investment [5]

Group 1 - The report highlights a slight adjustment in the A-share market post-National Day, with the ChiNext index dropping by 3.86% [2] - The central bank's net withdrawal of funds amounted to 426.3 billion yuan after the holiday, indicating a return to liquidity in the market [2] - The report anticipates a more proactive fiscal policy and moderately loose monetary policy in the fourth quarter to address potential geopolitical risks and economic targets [2] Group 2 - The convertible bond market is experiencing a TACO trading phenomenon again, with a significant decrease in the scale of convertible bonds held by insurance institutions [4][32] - The report suggests maintaining a neutral to low position in convertible bonds in the short term while focusing on low-priced bonds with favorable terms [4][32] - The domestic micro-enterprise performance recovery is gaining consensus, with a focus on sectors like AI, semiconductors, and military electronics for potential growth [4][32] Group 3 - The public REITs market in China has undergone several phases, with the current stage focusing on normalizing issuance and addressing structural differentiation [6][34] - The cash flow discounting method is the primary valuation method for public REITs, with differences in valuation based on the type of underlying assets [6][36] - The report emphasizes the importance of macroeconomic conditions, regulatory changes, and liquidity in influencing the performance of public REITs [6][36] Group 4 - The report on Wuling Motors indicates a steady revenue growth of 2.0% year-on-year, with a significant increase in net profit by 306.2% [19][37] - The company has improved its gross margin to 12.0%, reflecting enhanced product value and cost control [19][39] - Wuling Motors is strategically focusing on new energy and intelligent vehicle layouts, with its joint venture brand showing a 9% increase in sales [19][40]

Investment Rating - Industry rating is maintained at "Outperform the Market" [5] Core Viewpoints - The short-term rebound in raw milk prices does not change the ongoing destocking trend, but a price turning point is anticipated [1] - After significant destocking, beef cattle prices are gradually recovering, with September average prices reaching 25.99 CNY/kg, up 10.7% from the beginning of the year [2] - The rise in beef cattle prices is positively impacting the prices of cull cows, which in September averaged 19.33 CNY/kg, up 19.2% year-to-date [3] Summary by Sections 1) Raw Milk Price Analysis - Despite a short-term price rebound due to holiday stocking and school milk demand, overall prices remain below cost levels, leading to continued industry losses and destocking [1] - The September cow inventory decreased by 0.18% month-on-month, with a cumulative reduction of approximately 8% [1] 2) Beef Cattle Price Analysis - The average price of beef cattle in September was 25.99 CNY/kg, reflecting a 10.7% increase since the start of the year and a 15.6% increase from previous lows [2] - The average price of calves rose to 32.42 CNY/kg, marking a 39% increase from the lowest point in 2024 [2] 3) Impact of Beef Prices on Dairy Companies - The increase in beef cattle prices has led to a rise in cull cow prices, which is expected to improve the financial performance of dairy companies [3] - The trend of narrowing losses from cull cows is likely to continue for an extended period due to the long replenishment cycle in the beef industry [3] 4) Investment Recommendations - The core logic of the sector remains unchanged, with expectations for a price turning point and attractive valuations [4] - Recommended stocks include: Yuran Dairy, China Shengmu, Aoyuan Group, Modern Dairy, and Tianrun Dairy for dairy; and China Shengmu, Guangming Meat, and Fucheng Co. for beef [4]

Investment Rating - The investment rating for the company is "Buy" with a target price set for the next six months [6][14]. Core Insights - The company achieved a record high revenue of 41.97 billion yuan in Q3 2025, marking a 27.5% increase quarter-on-quarter and a 27.2% increase year-on-year. However, net profit for the same quarter was 3.17 billion yuan, reflecting a 16.4% year-on-year decline [1][2]. - The HNB (Heated Not Burned) business saw a significant increase in shipment volumes, contributing to the overall revenue growth. The company is also expanding its self-owned brand business and enhancing localized marketing efforts [2][5]. - The medical aerosol business has made a breakthrough with the submission of an ANDA application for Breo® Ellipta®, which, if approved, could provide a 180-day market exclusivity in the U.S. This product is expected to generate significant sales in the future [4][5]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported revenues of 102.10 billion yuan, a year-on-year increase of 21.8%. Adjusted net profit was 11.82 billion yuan, a slight increase of 0.1% year-on-year [1]. - In Q3 2025, the company achieved revenues of 41.97 billion yuan, with an adjusted net profit of 4.44 billion yuan, reflecting a 4.0% year-on-year increase [1][2]. Business Growth - The company’s HNB and electronic vaporization businesses both experienced growth, with strategic clients successfully launching new products in major global markets [2]. - The GloHilo product line is being introduced in Italy, Poland, and Serbia, aiming to reach 50 million adult consumers of smoke-free products by 2030 [3]. Future Outlook - The company is expected to see significant contributions from the HNB business starting in 2026, with adjusted net profit forecasts for 2025-2027 revised to 13.92 billion, 20.23 billion, and 27.59 billion yuan respectively [5].

1. Report Industry Investment Rating No information provided regarding the industry investment rating in the given content. 2. Core Viewpoints of the Report - The market or still favors TACO trading, but the volatility of equity asset prices may be weaker than that during the April 2025 tariff 1.0 period [6]. - In the short - term, with relatively weak equity elasticity, it's recommended to maintain a moderately low position and focus on low - price convertible bonds with clause resonance, especially export - chain convertible bonds affected by tariff policies [7]. - In the medium - term, the upward repair of domestic micro - enterprise performance is becoming a consensus, and the high - price equity - biased strategy may still be structurally dominant, with high attention on the rotation strategy of small - cap growth convertible bonds in technology self - controllable directions [7]. 3. Summary According to Relevant Catalogs 3.1 April 2025 Market Phases and Performance - **Tariff Upgrade Pre - period (April 2 - 7)**: A - shares and convertible bonds declined. The Shanghai Composite Index dropped 7.34% on April 7, and the Wind Convertible Bond Underlying Stock Weighted Index fell over 12%. High - price convertible bonds led the decline, and the equity - biased convertible bond strategy underperformed the market [1]. - **Tariff Counter - measure Initiation (April 8 - 11)**: A - shares and convertible bonds rebounded. The CSI Convertible Bond Index rebounded 2.45%, and high - price convertible bonds rose 5.38% [1]. - **Trade Friction Continuation (April 12 - 20)**: Market risk - aversion sentiment was high, and financial real - estate and dividend industries performed relatively well. Convertible bonds fluctuated narrowly [2]. - **Trade Friction Easing (April 21 onwards)**: Advanced manufacturing and technology sectors drove the market up, while the financial real - estate sector corrected [2]. 3.2 April 2025 Convertible Bond Market Performance by Industry - **High External - demand Exposure Industries**: Industries such as power equipment, machinery, and electronics had deep declines during the tariff upgrade pre - period and weak rebounds later. For example, electronics and home appliance industry convertible bonds' underlying stocks fell over 15% initially and only rebounded about 5% later [3]. - **Balanced Internal and External - demand Exposure Industries**: Industries like national defense and military, computer, and environmental protection had high declines initially but strong rebounds later [3]. - **Domestic - demand - led Industries**: Industries such as agriculture, forestry, animal husbandry, and fishery, food and beverage, and transportation had low initial declines and led the rebounds [3]. 3.3 April 2025 Performance of Key Export - chain Convertible Bonds - **Good Initial and Rebound Performance**: Convertible bonds in chemical pesticides (Limin Convertible Bond, Suli Convertible Bond), textile and apparel (Shengtai Convertible Bond), and medical equipment (Yirui Convertible Bond, Kangyi Convertible Bond) had low initial declines and good rebounds [4]. - **High Initial Decline but Strong Rebound**: Convertible bonds in semiconductors (Huaya Convertible Bond, Weil Convertible Bond), military (Ruichuang Convertible Bond, Hangxin Convertible Bond), and agriculture, forestry, animal husbandry, and fishery (Zhongchong Convertible Bond 2) had high initial declines but strong rebounds [4]. - **Deep Initial Decline and Weak Rebound**: Convertible bonds in consumer electronics, cleaning home appliances, medical outsourcing, and tires had deep initial declines and weak rebounds [4]. 3.4 Current Situation of the Convertible Bond Market - **Investor Behavior**: Since the end of August, investors have tended to "take profits". By the end of September, the scale of Shanghai - listed convertible bonds decreased naturally by 7.1% compared to the end of July. Insurance institutions were the main force in reducing holdings, with a 33% reduction, and other major holders also reduced their holdings [6]. - **Valuation**: Thanks to the reverse increase of public funds, convertible bond valuations are still at a relatively high historical level, and valuation indicators have slightly repaired upwards since late September [6].

Investment Rating - The industry investment rating is maintained at "Outperform" [1] Core Viewpoints - The lithium battery equipment sector is experiencing a recovery phase, with significant growth expected in the coming years due to the lithium battery expansion cycle and solid-state battery innovation [3][10] - Global lithium battery shipments are projected to grow significantly, with total shipments expected to reach 1,766 GWh by 2025 and 5,154 GWh by 2030, indicating a robust long-term growth potential [9][35] - The capital expenditure for leading domestic lithium battery manufacturers has shown a positive trend, with a notable increase in spending expected in 2024 and 2025 [14][17] Summary by Sections Lithium Battery Equipment Sector - The global lithium battery equipment market is expected to reach 497 billion CNY in 2025, 810 billion CNY in 2026, and 832 billion CNY in 2027, with a compound annual growth rate (CAGR) of 29% from 2025 to 2027 [3][13] - The solid-state battery innovation cycle is anticipated to accelerate, with significant investments exceeding 10 billion CNY in domestic solid-state battery capacity planned [3][9] - The production processes for solid-state batteries are evolving, with new equipment and technologies being developed to enhance production efficiency [3][9] Market Dynamics - The global lithium battery shipment volume is expected to grow from 209 GWh in 2020 to 1,766 GWh in 2025, reflecting a CAGR of 53% [9][35] - The domestic leading lithium battery manufacturers are expected to see their capital expenditures increase, with a total of 167 billion CNY in capital expenditure recorded in Q4 2024, marking a 4% year-on-year growth [14][17] - The penetration of solid-state battery technology is projected to create a new market segment, with potential revenue contributions of 54 billion CNY in 2026 and 515 billion CNY by 2030 [3][9] Competitive Landscape - The report highlights various development paths for lithium battery equipment companies, including cross-industry expansion, platform development, and product line diversification [3][9] - Companies such as Delong Laser, Xinyuren, and Qiaocheng Ultrasonic are recommended for their potential in the solid-state battery sector, while others like Xian Dao Intelligent and Liyuan Heng are noted for their platform development strategies [3][9]

Group 1: Domestic Policy Developments - The total cross-regional population flow during the National Day and Mid-Autumn Festival reached approximately 2.432 billion, marking a historical high for the same period, with an average of 304 million daily, a year-on-year increase of 6.2% [10][11] - Premier Li Qiang attended the 80th anniversary celebration of the Workers' Party of Korea in Pyongyang, indicating a strengthening of diplomatic ties [13][14] - Vice Premier He Lifeng met with executives from multinational companies, emphasizing the continuous expansion of high-level opening-up and welcoming foreign investment in China [16][17] Group 2: Economic Indicators and Market Analysis - The A-share market saw a slight adjustment post-National Day, with the ChiNext Index dropping by 3.86%, while the Wande Micro Index rose by 0.66% in the first two trading days after the holiday [25] - The manufacturing PMI for September was reported at 49.8%, indicating a slight rebound but still below the expansion threshold, reflecting ongoing economic challenges [27][28] - The central bank conducted a net withdrawal of 426.3 billion yuan in the open market post-holiday, indicating a tightening of liquidity [47] Group 3: International Trade and Policy Outlook - The WTO raised its global trade growth forecast for 2025 from 0.9% to 2.4%, driven by strong demand for AI-related products and increased trade among emerging economies [18][19] - The report highlighted that AI-related goods contributed nearly half of the overall trade growth in the first half of the year, with a 20% increase in trade value [19][23] - The anticipated economic policies suggest a focus on maintaining stability and flexibility in fiscal and monetary measures to address potential geopolitical risks and uncertainties [5][6]