1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints - 7 - month economic data was generally below expectations, showing a weak - recovery pattern of "stable production, under - expected consumption, and intensified investment differentiation", which confirmed the "weak demand + low inflation" fundamental for the bond market. The risk of a trend - based correction in the bond market was generally controllable. It was suggested to seize the adjustment window in the third quarter and gradually allocate bonds after the adjustment [1]. - Short - term concerns included changes in risk - preference assets such as equities and commodities, and the effect of policies like fiscal discounts on private - sector financing demand [1]. 3. Summary by Catalog 3.1 Demand - Real estate: The transaction area of commercial housing in 20 cities decreased both month - on - month and year - on - year, significantly lower than the seasonal level. The transaction area of second - hand housing in key cities showed differentiated performance. In Beijing and Shenzhen, it increased week - on - week, while in Shanghai, Guangzhou, Hangzhou, and Chengdu, it decreased [2][12]. - Consumption: Automobile consumption decreased week - on - week. The box office of movies decreased week - on - week but was stronger than the same period last year. The national migration scale index increased week - on - week, and the subway passenger volume in first - tier cities increased [2][38]. 3.2 Production - Mid - and upstream: The operating rates of rebar, PTA, and polyester filament decreased, while the operating rate of petroleum asphalt plants increased [3][47]. - Downstream: The operating rate of all - steel tires for automobiles increased, while that of semi - steel tires decreased, but the latter was still at a seasonal high [3][47]. 3.3 Investment - Rebar: Apparent consumption decreased, but the price increased week - on - week [4][64]. - Cement: The price decreased week - on - week, while the shipping rate and inventory ratio increased [4][64]. 3.4 Trade - Export: Port throughput increased, while the comprehensive CCFI index decreased. The BDI index increased week - on - week [5][75]. - Import: The comprehensive CICFI index decreased by 1.2% week - on - week [5][75]. 3.5 Prices - CPI: The agricultural product wholesale price 200 index increased by 0.7% week - on - week. Vegetable prices increased, while egg, pork, and fruit prices decreased [6][86]. - PPI: The Nanhua industrial product price index increased by 0.2% week - on - week. Brent crude oil and COMEX gold prices decreased, while LME copper prices increased. The commodity futures market was stable with differentiated performance among varieties [6][91]. 3.6 Interest - rate Bond Tracking - Next week (August 18 - 22, 2025), the planned issuance of interest - rate bonds was 765.2 billion yuan, with a net financing of 495.2 billion yuan [7][110]. - As of August 15, the cumulative issuance progress of replacement bonds this year exceeded 95%, that of new general bonds was 72.0%, and that of new special bonds was 64.5% [7][112][117]. 3.7 Policy Weekly Observation - The Q2 monetary policy report emphasized implementing and refining a moderately loose monetary policy, including maintaining sufficient liquidity, matching financing and money supply with economic growth targets, and promoting a reasonable recovery of prices [122][123]. - Multiple policies were introduced in the week, including fiscal subsidy policies for consumer loans, tax policies for express delivery services, and real - estate policies in some regions [123][124].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [6]. Core Insights - The company reported a revenue of approximately 10.437 billion HKD for the first half of 2025, a decrease of 0.6% year-on-year, while the net profit attributable to shareholders was about 758 million HKD, an increase of 2% [1]. - The company announced its first interim dividend of 0.05 HKD per share [1]. - The gas sales volume remained stable at 8.75 billion cubic meters, with retail gas volume increasing by 0.7% year-on-year [2]. - The renewable energy segment achieved a revenue of 762 million HKD, with a net profit of 172 million HKD, reflecting a growth of 5% [3]. - Capital expenditures decreased significantly to 1.4 billion HKD, down by 600 million HKD year-on-year [4]. Summary by Sections Financial Performance - For the first half of 2025, the company reported a revenue of approximately 10.437 billion HKD, a slight decrease of 0.6% year-on-year, and a net profit of about 758 million HKD, which is a 2% increase [1]. - The gas distribution segment generated revenue of 9.674 billion HKD, a decrease of 0.7% year-on-year, while the renewable energy segment's revenue was 762 million HKD, reflecting a 1.1% increase [2][3]. Gas Sales and Pricing - The total gas sales volume was 8.75 billion cubic meters, remaining flat year-on-year, with retail gas volume increasing by 0.7% [2]. - The gross margin improved to 0.57 HKD per cubic meter, up by 0.01 HKD year-on-year, despite a slight decrease in selling price [2]. Renewable Energy - The renewable energy segment's net profit was 172 million HKD, a 5% increase, primarily driven by the photovoltaic business, which saw an 11% increase in revenue [3]. - The photovoltaic capacity reached 2.6 GW, with a significant increase in electricity generation by 44% year-on-year [3]. Capital Expenditure - The company reported a notable decrease in capital expenditures to 1.4 billion HKD, down by 600 million HKD year-on-year, with reductions in both gas and renewable energy segments [4]. Future Guidance - The company updated its full-year guidance, projecting a gas sales volume of 17.3 billion cubic meters, a 1% increase year-on-year, and an increase in the number of users by 630,000 [5].

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - The economic data in July 2025 was generally below expectations, with the three major indicators declining in resonance, showing a weak recovery pattern of "stable industrial production, under - expected consumption, and intensified investment differentiation", indicating insufficient domestic effective demand [1][7] - The reasons for the under - expected economic data include seasonal factors, the weakening marginal effect of policy dividends, the failure of production - side repair to be effectively transmitted to the demand side, and the continued drag of the real estate sector on the economy [2][8] - For the bond market, the economic data in July confirmed the fundamental main line of "weak demand + low inflation", and the risk of a trend - based correction in the bond market was generally controllable. In the short term, attention should be paid to the changes in risk - preference assets such as equities and commodities, as well as the effect of policies like fiscal interest subsidies on private - sector financing demand [2][9] 3. Summary by Relevant Catalogs 3.1 7 - month Economic Data: Structural Pressures under Weak Recovery - In July, the year - on - year growth rate of industrial added value of large - scale industries was 5.7%, 1.1 percentage points lower than the previous month, and the cumulative growth from January to July was 6.3%. The year - on - year growth rate of social retail sales was 3.7%, and the cumulative year - on - year growth rate of fixed - asset investment was 1.6%. Among them, the cumulative year - on - year growth rate of real estate investment was - 12.0%, that of infrastructure investment (excluding electricity) was 3.2%, and that of manufacturing investment was 6.2% [3][7] - The reasons for the under - expected economic data are seasonal factors, the weakening marginal effect of policy dividends, the failure of production - side repair to be effectively transmitted to the demand side, and the continued drag of the real estate sector on the economy. The resilience of external demand in July exceeded expectations, but there was still uncertainty in external demand in the second half of the year [2][8][9] 3.2 Industrial Production Maintains Resilience, High - tech Chain Continues to Lead - In July, industrial production still had resilience. The year - on - year growth rate of added value of large - scale industries was 5.7%, 1.1 percentage points lower than the previous month, and the cumulative growth from January to July was 6.3%. The year - on - year growth rate of the service production index in July was 5.8%, slightly down 0.2 percentage points from the previous month [3][11] - In terms of industries, the year - on - year growth rates of the ferrous metal processing and transportation equipment industries in July increased significantly compared with the previous month, while those of the automobile, metal products, and food industries decreased. The added value of the equipment manufacturing industry increased by 8.4% year - on - year, and that of the high - tech manufacturing industry increased by 9.3% year - on - year, respectively 2.7 and 3.6 percentage points faster than the overall large - scale industrial added value [15] - In terms of specific products, the output growth rates of emerging products such as 3D printing equipment, industrial robots, and new energy vehicles were remarkable, with year - on - year growth rates of 24.2%, 24.0%, and 17.1% respectively [15] 3.3 Consumption Growth Slows, Policy Dividend Effect Weakens Marginally - In July, the growth rate of social retail sales slowed down. The total retail sales of social consumer goods were 387.8 billion yuan, with a year - on - year growth rate of 3.7%, 1.1 percentage points lower than the previous month, the lowest increase this year and lower than market expectations [17] - On one hand, the driving effect of subsidy policies weakened. The year - on - year growth rates of home appliances, automobiles, furniture, and cultural office supplies supported by policies declined significantly compared with the previous month, and the year - on - year growth rate of automobiles turned negative. On the other hand, the weak catering consumption reflected insufficient consumer confidence. The year - on - year growth rate of catering revenue above the quota increased slightly to 1.1%, still at a relatively low level this year [4][20] - Recently, the Ministry of Finance and other departments issued the "Implementation Plan for the Fiscal Interest Subsidy Policy for Personal Consumption Loans", with the central finance bearing 90%. The effect of this policy on credit scale and social retail sales growth remains to be observed [4][22] 3.4 Manufacturing Stabilizes, Infrastructure Supports, Real Estate Hits Bottom - From January to July, the year - on - year growth rate of fixed - asset investment was 1.6%, 1.2 percentage points lower than that from January to June. The investment structure showed a three - track operation pattern of "manufacturing stabilization, infrastructure support, and real estate drag" [23] - The cumulative year - on - year growth rate of manufacturing investment was 6.2%. The "Two New" work promoted the rapid growth of equipment purchase investment. From January to July, the year - on - year growth rate of investment in equipment, tools, and utensils was 15.2%, 13.6 percentage points higher than the overall investment. However, in the short term, corporate investment motivation might decline, and the demand for entity credit was still insufficient [25][26] - The cumulative year - on - year growth rate of infrastructure investment was 3.2%. The construction progress of major traditional infrastructure projects remained relatively fast, and the growth rate of infrastructure investment was expected to play a "ballast stone" role in the third quarter. However, the high - temperature and rainy weather in July affected outdoor construction and dragged down the growth rate of infrastructure investment [25][26] - The cumulative year - on - year growth rate of real estate investment was - 12.0%, continuing to be deeply adjusted. The decline in real estate sales area and sales volume widened. In the second half of the year, real estate relaxation policies still needed to be actively implemented, such as further relaxing purchase restrictions in core cities, lowering housing loan interest rates, reducing down - payment ratios, and increasing real estate acquisitions [26][27]

Investment Rating - Industry rating is maintained at "Outperform the Market" [5] Core Viewpoints - Infrastructure investment in July showed a high increase in railway and water electricity fuel investment, while overall infrastructure investment is experiencing marginal slowdown, particularly in the central and western regions [1][2] - Real estate development investment from January to July decreased by 12%, with a significant drop of 17.1% in July alone, indicating a continued weakness in the real estate sector [2] - The issuance of special bonds has accelerated, with a total of 27,775.89 billion yuan issued from January to July, representing a year-on-year increase of 56.5%, which is expected to support infrastructure investment growth in the second half of the year [1] - Cement demand is anticipated to gradually recover, with a focus on investment opportunities at relatively low points in the market, despite a 4.5% year-on-year decline in cement production from January to July [3] - The flat glass market is showing signs of improvement, with a slight increase in prices and a reduction in inventory levels, suggesting a potential recovery in demand [4] Summary by Sections Infrastructure Investment - In July, infrastructure investment growth was supported by a 21.5% year-on-year increase in water electricity fuel investment, while transportation and storage investment saw a 3.9% increase [2] - The report emphasizes the importance of focusing on major engineering projects and infrastructure investments in the central and western regions [1] Real Estate Sector - The real estate sector continues to show weakness, with significant declines in sales, new construction, and completion areas from January to July [2] - The report highlights the need for monitoring policy changes that could impact the real estate market [4] Cement and Glass Markets - Cement production decreased by 4.5% year-on-year, with a notable drop in July, but there are expectations for demand recovery as the market enters a peak season [3] - The flat glass market is experiencing a slight recovery, with improved trading conditions and reduced inventory levels [4]

Investment Rating - Industry Rating: Outperform the Market (maintained rating) [6] Core Viewpoints - The People's Bank of China officially launched the buyout reverse repurchase operation tool in October 2024, which includes 3M and 6M maturity products, using fixed quantity, interest rate bidding, and multiple price bidding methods [1][12] - The buyout reverse repurchase operation has raised market concerns regarding its volume, price, frequency, and duration, indicating its significant impact on liquidity management for banks [12][24] Summary by Sections Question 1: How is the buyout reverse repurchase quantitatively defined? - The central bank announces a fixed quantity, and banks report their volumes, with the central bank conducting "American-style bidding" based on interest rates. It is expected that the operation will be fully subscribed, primarily benefiting state-owned banks due to their stronger demand for funds compared to smaller banks [2][13][14] Question 2: How is the buyout reverse repurchase priced, and what is its relationship with interest rate cuts? - The buyout reverse repurchase uses interest rate bidding, where banks quote multiple prices. The pricing is expected to be lower than similar market rates, but it may sometimes exceed them due to various factors including policy rates and market conditions [3][15][18] Question 3: How often is the buyout reverse repurchase conducted each month? - There is no fixed frequency for the buyout reverse repurchase operations, which can occur multiple times within a month if necessary. The operations are expected to continue twice a month, especially during periods of tighter liquidity [4][19][20] Question 4: What impact does the buyout reverse repurchase operation have on bank liquidity? - The primary impact is on expectation management. If operations fall short of expectations, it may increase banks' precautionary funding needs, leading to higher rates for certificates of deposit and increased volatility in funding rates. Conversely, exceeding expectations can stabilize monthly funding rates [5][24][25]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [4]. Core Viewpoints - The company aims to stabilize sales amidst global consumption fatigue and complex U.S. trade policies by adjusting orders between production bases to maintain a competitive edge of "high quality, low cost, and short delivery time" [2]. - The company is focusing on cost reduction and efficiency improvement by solidifying basic management practices and enhancing control over subsidiaries through internal audits and information processes [2]. - The company is accelerating its information and intelligent construction, particularly through the Jiangshan Industrial Park smart factory project, which aims to create a highly efficient and intelligent manufacturing environment [2]. - The company is committed to maintaining a "fighting" spirit and a "practical" approach, focusing on core business areas and optimizing global production layouts for deeper integration of the industrial chain [2]. Financial Performance Summary - In Q2 2025, the company reported a revenue of 611 million, a decrease of 1.52% year-on-year, and a net profit attributable to shareholders of 82 million, down 2.23% year-on-year [1]. - For the first half of 2025, the company achieved a revenue of 1.171 billion, an increase of 0.19% year-on-year, while the net profit attributable to shareholders decreased by 14.46% to 142 million [1]. - The company plans to distribute a cash dividend of 0.25 yuan per share (including tax) based on a total share capital of 353,183,149 shares, excluding treasury shares [1]. Adjusted Profit Forecast - The profit forecast for 2025-2027 has been adjusted, with expected revenues of 2.8 billion, 3.0 billion, and 3.3 billion respectively, and net profits of 340 million, 380 million, and 420 million respectively [3]. - The corresponding price-to-earnings ratios are projected to be 10x, 9x, and 8x for the respective years [3].

1. Report Industry Investment Rating No relevant content provided 2. Core Viewpoints of the Report - The domestic economic tone is more positive, reducing the short - term urgency for policy intensification. The overseas environment shows positive changes but still requires caution, and domestic policies should enhance flexibility and predictability [1][6]. - Monetary policy maintains its stance, and liquidity will remain abundant. Central bank regulation will continue to be targeted, and the use of aggregate tools may be more cautious [3][15]. - The financial system's focus on serving the real economy is more prominent. Short - term capital fluctuations may have less signal significance, and the central bank is more focused on achieving multiple monetary policy goals [4][18]. 3. Summary According to Relevant Catalogs 3.1 Domestic Economy Steady with Progress, Overseas Environment with Prudent Optimism - **Domestic Economy**: The report's tone on the domestic economy is more positive. In H1 2025, the economy grew steadily with a GDP growth of 5.3%. The stock and bond markets' pricing of July economic data was limited. The positive tone may reduce the short - term need for policy intensification, and incremental policies need a longer observation period [6][13]. - **Overseas Environment**: The description of the overseas economic recovery process and tariff policies in the report has become less severe. The RMB exchange rate has certain resistance, and the impact of tariff games is gradually weakening. However, uncertainties such as Sino - US tariff games and the Fed's interest - rate cut path still exist, so vigilance cannot be relaxed [2][7]. 3.2 Policy Maintains Stance, Liquidity Abundance Re - confirmed - The moderately loose monetary policy emphasizes "implementation and refinement", indicating good implementation in H1 and more focus on policy effectiveness in H2. The central bank's regulation will continue to be targeted, and liquidity will remain abundant with interest rates likely to fluctuate within a narrow range. - The central bank pays attention to preventing financial risks, aiming to balance reducing bank liability costs and supporting the real economy. Aggregate tools may be used more cautiously, with more focus on improving frameworks and transmission mechanisms and reducing non - interest financing costs [3][15]. 3.3 Focus on Multiple Goals, Signal Significance of Short - term Capital Fluctuations May Weaken - The Q2 monetary policy report has four columns highlighting how finance supports the real economy, and structural monetary policy tools will continue to be the main means. - The central bank is more focused on achieving multiple monetary policy goals. Short - term capital fluctuations may be due to temporary supply - demand frictions, and the market should not over - interpret them [4][18].

Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company has achieved a double-digit growth in net profit excluding non-recurring items, with a 10.3% year-on-year increase in the first half of 2025 [1] - The business structure continues to optimize, with steady progress in connected communications and enhanced capabilities in computing networks [2] - The company is focused on shareholder returns, proposing a mid-term dividend of 0.1112 yuan per share, a 16% increase year-on-year [4] - The company is expected to maintain a good growth momentum, with projected net profits of 9.73 billion, 10.42 billion, and 11.01 billion yuan for 2025, 2026, and 2027 respectively [5] Summary by Sections Financial Performance - In the first half of 2025, the company reported operating revenue of 200.2 billion yuan, a 1.5% increase year-on-year, and a net profit attributable to shareholders of 6.35 billion yuan, up 5.1% [1] - The net profit excluding non-recurring items reached 5.58 billion yuan, reflecting a 10.3% growth [1] Business Segments - The connected communications segment generated revenue of 131.9 billion yuan in the first half of 2025, with a user base exceeding 1.2 billion [2] - The computing network segment's revenue reached 45.4 billion yuan, accounting for 26% of total revenue, with significant growth in cloud services and data centers [2] - International business revenue grew by 11% to 6.8 billion yuan, with strategic emerging industries contributing 86% to total revenue [2] Network Development - The company has made significant progress in network construction, with capital expenditures of 20.2 billion yuan, a 15% decrease year-on-year [3] - The data center's resource utilization rate exceeded 70%, and the company is advancing its computing infrastructure with a total capacity of 2,650 MW [3] Shareholder Returns - The company is committed to sharing development dividends with shareholders, proposing a mid-term dividend of 0.1112 yuan per share, which is a 16% increase from the previous year [4] Profit Forecast - The company is expected to maintain a strong growth trajectory, with net profit forecasts of 9.73 billion, 10.42 billion, and 11.01 billion yuan for 2025, 2026, and 2027 respectively [5]

Group 1 - The core conclusion indicates that the fund redemption pressure during the current and subsequent quarters leads to a "return smile curve" [1][10] - After experiencing redemption pressure, if a fund sees a decline of more than 5% and recovers within a month to reach a new high, it is expected that investors will significantly net subscribe in the following two quarters [1][15] - Data analysis shows that the redemption pressure from returning funds is not substantial; if the proportion of equity funds at historical highs increases from 26% to 50%, it could lead to approximately 30 billion yuan in redemption selling pressure during the quarter [3][22] Group 2 - The report notes that as more equity funds reach new highs, there is a tendency for investors to redeem old funds to purchase new ones, leading to a net redemption scenario for older funds [2][12] - The "every dip is a buying opportunity" mindset is reinforced when funds reach new highs after a pullback, encouraging further investment [2][16] - The analysis indicates that the redemption pressure is primarily concentrated in older funds with significant holdings in sectors like electronics, pharmaceuticals, and power equipment, but the impact remains minimal [3][23]

Investment Rating - The industry rating is "Outperform the Market" (maintained rating) [6] Core Viewpoints - The divergence between domestic power generation and industrial added value growth since 2025 is primarily due to a significant slowdown in electricity consumption growth in the secondary industry, particularly in the mid-to-lower reaches of the equipment manufacturing and downstream consumer goods sectors [2][40] - The current power generation growth slowdown is linked to reduced energy consumption and low operating rates in certain sub-sectors, while industrial added value continues to grow rapidly, supported by the relative high prosperity of large enterprises [2][3] - Historical comparisons indicate that the divergence between power generation and industrial added value growth has occurred multiple times in the past, with the need for capacity clearance and profit improvement to narrow the gap [3] Summary by Sections Section 1: Power Generation and Industrial Added Value Divergence - Since 2025, the cumulative year-on-year growth of domestic power generation is +0.8%, compared to +5.2% in the same period of 2024, indicating a significant decline in growth [27] - The divergence has been observed in four distinct periods over the past 20 years, with the most recent being influenced by external shocks such as financial crises and pandemics [28][30] Section 2: Factors Influencing Power Generation and Industrial Added Value - The slowdown in electricity consumption growth in the secondary industry is a major factor contributing to the divergence, with a year-on-year growth of only +2.4% in the first half of 2025 [36][55] - The contribution rate of electricity consumption growth from the secondary industry has significantly decreased, indicating its role as a drag on overall electricity consumption growth [36] Section 3: Coal Supply and Demand Dynamics - The domestic coal supply-demand balance has been relatively loose since 2025, with power coal prices rebounding due to supply reductions from safety and environmental checks, as well as increased demand from high temperatures [4][13] - The report anticipates that the target price for power coal at ports may reach 700-750 RMB/ton by the end of the year, depending on the effectiveness of policy measures [4] Section 4: Historical Context and Future Outlook - The report draws parallels between the current situation and the period from 2012 to 2016, suggesting that a similar recovery in industrial profits and capacity utilization may be necessary to improve the current divergence [3][52] - The report emphasizes the importance of monitoring the performance of various sub-sectors within the secondary industry, particularly those with low energy consumption and operating rates, as they significantly impact overall electricity demand [47][52]