Investment Rating - The report maintains a positive outlook on strong domestic automotive brands, emphasizing the importance of complete vehicles, intelligent driving, and robotics for the year [6][7]. Core Insights - The report highlights a significant increase in domestic vehicle registrations, with a total of 519,000 units registered in the week of September 15-21, surpassing the 400,000 weekly threshold, representing a year-on-year increase of 6.3% and a month-on-month increase of 13.3% [6][24]. - The report notes that the penetration rate of new energy vehicles reached 57.42%, with weekly registrations of 298,000 units, reflecting a year-on-year increase of 16.3% and a month-on-month increase of 11.2% [6][29]. - The report anticipates that the overall automotive market will see a rebound in orders, with September's third week showing an upward trend in orders, reaching historical highs [6][41]. Summary by Sections Core Insights - The report emphasizes a sustained positive outlook on strong domestic automotive brands, with a focus on complete vehicles, intelligent driving, and robotics as key investment areas for the year [6][7]. - It highlights that the total vehicle registrations for the week of September 15-21 were 519,000, exceeding the 400,000 threshold, with a year-on-year increase of 6.3% and a month-on-month increase of 13.3% [6][24]. - The report also notes that the new energy vehicle registration volume reached 298,000 units, with a penetration rate of 57.42%, indicating a year-on-year increase of 16.3% and a month-on-month increase of 11.2% [6][29]. Market Tracking - The automotive sector ranked third in weekly performance with a 3% increase, while the overall market showed a positive trend with several stocks performing well, particularly in the T-chain and robotics sectors [11][15][18]. - The report indicates that the automotive sector's valuation percentile is at 51%, placing it in the historical mid-range [11][15]. Industry Prosperity - The report tracks the overall industry sentiment, noting that the third week of September saw a significant increase in orders due to the launch of popular models [41]. - It also highlights the ongoing trend of domestic brands capturing market share from joint ventures, with domestic brands' market share increasing from 36% in January 2021 to 64% by December 2024 [37].

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company has shown continuous revenue growth, primarily driven by its engineering simulation software, with a projected revenue increase from 320 million yuan in 2023 to 915 million yuan by 2027, reflecting a compound annual growth rate (CAGR) of approximately 39% [4][6] - The company is actively expanding its product line and enhancing its capabilities in the field of physical AI, marking a significant transition from traditional simulation tools to intelligent decision-making engineering platforms [6][4] - The company is pursuing strategic acquisitions to deepen its market presence and leverage synergies, with a notable acquisition plan for Likong Technology [6][4] Summary by Relevant Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 57.35 million yuan, a year-on-year increase of 10.82%, with losses narrowing compared to the previous year [6] - The projected revenues for 2025, 2026, and 2027 are 552 million yuan, 767 million yuan, and 915 million yuan respectively, with corresponding net profits of 75 million yuan, 126 million yuan, and 155 million yuan [4][6] Product Development - The company has been focusing on product research and development, successfully launching new versions of core products and enhancing their stability and performance [6] - The integration of AI with traditional simulation technologies is a key focus, with the company launching a physical AI design platform in the first half of 2025 [6] Strategic Initiatives - The company is engaging in strategic partnerships and acquisitions to enhance its market position, including a significant acquisition of Likong Technology and collaborations with local government entities to advance low-altitude economy technologies [6][4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The report indicates that the company is at a turning point for profit margin improvement, with expectations for continued growth in sales and profitability across various product lines [12] - The company’s revenue and profit performance in the first half of 2025 met expectations, with a forecast for ongoing improvements in profit margins [5][13] Financial Summary - Total shares outstanding: 259.11 million [2] - Market price: 200.22 CNY [2] - Market capitalization: 51,878.28 million CNY [2] - Revenue projections for 2023A to 2027E show significant growth, with 2025E revenue expected to reach 18,382 million CNY, reflecting a year-over-year growth rate of 54% [4] - Net profit for 2023A is projected at 2,051 million CNY, with a decline expected in 2024A and 2025E, followed by recovery in subsequent years [4] Product Performance - The company’s revenue from robotic vacuum cleaners in Q2 2025 was 35 billion CNY, showing a 50% year-over-year increase, driven by domestic subsidies and market penetration in new regions [7] - The washing machine segment saw a remarkable revenue increase of 700% in Q2 2025 compared to Q1 2025, indicating strong market demand and successful product launches [9] - The company anticipates a reduction in losses for its washer-dryer integrated machines in the second half of 2025 as promotional efforts taper off [10] Profitability Analysis - The net profit margin for Q2 2025 was 9.2%, showing a year-over-year decline but an improvement from the previous quarter [11] - The report highlights that the company is expected to achieve profitability in the washing machine segment moving forward, with both domestic and international sales contributing positively [11]

Investment Rating - The industry investment rating is maintained at "Overweight" [3][13][17]. Core Insights - The report highlights that the expectation of interest rate cuts has materialized, leading to a slight decline in metal prices. The macroeconomic environment appears favorable, with signs of recovery in the manufacturing sector [7][13][47]. - The industrial metal prices have shown a general decline, with specific weekly changes noted for LME and SHFE metals [5][27]. - The report emphasizes that the basic metals sector is experiencing a seasonal recovery, particularly in aluminum and copper, despite some pressures on prices and demand [11][48]. Summary by Sections Market Overview - The A-share market has declined, with the non-ferrous metal sector underperforming compared to the Shanghai Composite Index, which fell by 1.30% [20][24]. - The non-ferrous metal index closed at 6522.39 points, down 4.02% week-on-week, lagging behind the Shanghai Composite Index by 2.71 percentage points [6][20]. Macroeconomic Factors - China's industrial value-added growth slowed to 5.2% year-on-year in August, down from 5.7% previously, with non-ferrous metal smelting and rolling showing a growth of 9.1% [8][37]. - The U.S. Federal Reserve cut interest rates by 25 basis points to a target range of 4.00%-4.25%, marking the first rate cut of 2025, aimed at addressing weak employment and inflation pressures [7][41]. - The Eurozone's ZEW economic sentiment index rose to 26.10 in September, indicating improved economic outlook [9][45]. - The global manufacturing PMI returned to expansion territory in August, rising to 50.9, the largest increase since June 2024 [10][47]. Basic Metals Analysis - **Aluminum**: The electrolytic aluminum industry maintained production capacity at 44.085 million tons, with a weekly production of 845,500 tons. The current aluminum price is 20,840 CNY/ton, with a slight decrease of 1.00% [11][50]. - **Alumina**: The market remains oversupplied, with spot prices continuing to decline. The current alumina price is 3,033 CNY/ton, down 1.30% [13][14]. - **Copper**: Supply remains stable, but demand is weak, leading to global inventory accumulation. Domestic electrolytic copper production is 238,000 tons, with a slight year-on-year increase [15][16]. - **Zinc**: Processing fees have risen, but domestic inventories continue to accumulate, with a weekly production of 129,600 tons [16][17]. Investment Recommendations - The report maintains an "Overweight" rating for the industry, suggesting that the seasonal recovery in basic metals, particularly in copper and aluminum, is expected to strengthen prices despite current fluctuations [13][17][48].

Investment Rating - The industry investment rating is "Overweight (Maintain)" [2] Core Viewpoints - The report emphasizes investment opportunities arising from the acceleration of China's consumer supply chain going overseas, particularly in the packaging sector, which is crucial for the consumer supply chain [4] - The report highlights the performance of key companies in the light industry and textile sectors, recommending a focus on companies with strong growth potential and market positioning [8] Summary by Relevant Sections Key Company Status - The report lists several companies with their respective stock prices and earnings per share (EPS) forecasts, indicating a "Buy" rating for companies like Baiya Co., Sun Paper, and Morning Light Co. [2] Market Trends - The light industry index decreased by 0.58% from September 15 to September 19, 2025, ranking 18th among 28 industries, while the textile and apparel index decreased by 0.26%, ranking 15th [12] - Specific sub-sectors within the light industry showed varied performance, with home goods increasing by 0.84% and packaging printing decreasing by 2.3% [12] Industry Data Tracking - The report tracks key industry data, noting that the sales volume of commercial housing in 30 major cities increased by 25.4% year-on-year during the week of September 14 to September 20, 2025 [32] - The furniture manufacturing sector saw a year-on-year increase of 22% in retail sales from January to August 2025 [65] Recommendations - The report suggests focusing on companies like Crystal International and Huayi Group, which are expected to improve their market share and profitability due to structural optimization and scale effects [8] - It also recommends attention to the home furnishing sector, particularly companies like Xilinmen and Gujia Home, which are positioned to benefit from ongoing demand for soft furnishings [8]

Investment Rating - The report maintains an "Accumulate" rating for the company [2] Core Views - The company achieved positive profitability in the first half of 2025, driven by AI-enabled enhancements that increased the average transaction value of its cloud products [3] - Despite a 15.9% year-on-year decline in revenue due to the ongoing downturn in the real estate sector, the company managed to turn around its net profit to 13.75 million yuan in 25H1, with adjusted net profit reaching 33.12 million yuan [3] - The company is focusing on cost control and operational efficiency, which has led to a significant reduction in expenses across sales, management, and R&D [3] Financial Performance Summary - Revenue for 2023 is projected at 1.657 billion yuan, with a decline expected in the following years: 1.435 billion yuan in 2024, 1.318 billion yuan in 2025, 1.271 billion yuan in 2026, and 1.266 billion yuan in 2027 [2] - The company forecasts a return to profitability with net profits of 18 million yuan in 2025, 30 million yuan in 2026, and 44 million yuan in 2027 [2] - The average transaction price for the company's cloud product, Yunke, increased by 2.4% year-on-year to 37,700 yuan per unit in 25H1, reflecting resilience amid overall revenue decline [3] Business Outlook - The company plans to focus on core products and key clients in the domestic market to enhance profitability, while also increasing investments in AI products and expanding into overseas markets [3] - The strategy includes optimizing resource allocation and enhancing operational efficiency through the application of AI tools across various functions [3]

Report Information - Report Title: Credit Business Weekly: What's the Impact of the Fed's Interest Rate Cut on A-Shares? - Report Date: September 22, 2025 - Research Institute: Zhongtai Securities Research Institute - Analysts: Xu Chi, Zhang Wenyu [1] 1. Report Industry Investment Rating - No information provided in the report. 2. Report's Core View - The short - term A - share market is in a volatile adjustment phase, but the medium - term trend remains upward. The Fourth Plenary Session in October may clarify the strategic position of technological innovation and new - quality productivity, strengthening the market's fundamental repair expectations. The easing of Sino - US relations can repair market risk appetite, and the Fed's interest rate cut may boost the stock market in the medium term [6]. - The current market volatility is a short - term adjustment, and investors can take advantage of the adjustment to make structural allocations in the directions of technological innovation, domestic demand and the "anti - involution" theme, and sectors benefiting from the easing of Sino - US relations [8]. 3. Summary by Relevant Catalogs Market Observation Impact of Sino - US Easing and Fed's Interest Rate Cut on A - Shares' Medium - Term Trend - Last week, the A - share market was volatile. The Fed's interest rate cut and the weak performance of the brokerage sector were the main influencing factors. The brokerage index fell 3.55% last week and has retraced 9.63% from its August 25 high [6]. - Despite short - term volatility, the medium - term trend of the A - share market remains positive. The upcoming Fourth Plenary Session in October may bring policy support, and the easing of Sino - US relations can improve market sentiment. The Fed's interest rate cut may have a positive impact on the stock market in the medium term [6]. View on the Recent Uptrend of A - Share Technology Sector - Last week, the capital situation remained loose. There was a "high - to - low" rotation of funds. The two - margin balance continued to grow, and the net reduction of shareholder holdings decreased, alleviating market supply pressure [7]. Investment Advice - Investors can make structural allocations during the market adjustment: focus on the technology innovation main line such as consumer electronics, robots, and games; pay attention to domestic demand and "anti - involution" themes including high - growth industries in the Growth Enterprise Market and sectors benefiting from infrastructure and manufacturing repair; consider sectors benefiting from the easing of Sino - US relations like Hang Seng Tech Index constituents, leading innovative drug companies, and the brokerage sector [8]. Market Review Market Performance - Most major market indices rose last week, with the ChiNext 50 having the largest increase of 2.84%. Among major industries, the optional consumption and information technology indices performed well, while the financial and daily consumption indices performed poorly. Among the 30 Shenwan primary industries, 13 industries rose, with coal, power equipment, and electronics having larger increases, and banking, non - ferrous metals, and non - bank finance having larger declines [9][17][19]. Trading Heat - The average daily trading volume of the Wind All - A Index last week was 25178.46 billion yuan, up from the previous value of 23264.15 billion yuan, at a very high historical level (96.70% of the three - year historical quantile) [22]. Valuation Tracking - As of September 19, 2025, the PE_TTM of the Wind All - A Index was 22.10, down 0.15 from last week, at the 89.70% quantile of the past five - year history. Thirteen out of 30 Shenwan primary industries saw valuation (PE_TTM) repairs [27]. Weekly Global Economic Calendar - Domestic economic data: On September 22, the People's Bank of China will release the 1 - year Loan Prime Rate (LPR). - Overseas economic data: On September 23, the US Markit Composite PMI will be released; on September 24, Fed Chairman Jerome Powell will speak and the US M2 money supply data will be released; on September 26, Fed Vice Chairman for Supervision Michael Barr will speak and the Atlanta Fed will release its GDPNow economic growth forecast [29].

Investment Rating - The report maintains a "Buy" rating for key companies in the industry, including Ningde Times, Shenghong Co., and DeYe Co. [5][6][7] Core Insights - The report highlights the initiation of the Cangyue DC project, which is expected to enhance the capacity of offshore wind installations during the 14th Five-Year Plan [6][26] - The lithium battery sector is anticipated to enter a supply-demand inflection point in 2025, leading to a 2-3 year upward cycle for the industry [7][11] - The energy storage sector is experiencing significant growth, with a surge in overseas contracts and supportive policies from various regions [22][23][25] Summary by Sections Lithium Battery Sector - Key companies like Ningde Times and Fulin Precision have secured substantial prepayments for high-pressure cathode material supply [13] - The first generation of semi-solid batteries from Honeycomb Energy is nearing mass production, with a planned annual capacity of 2.3GWh [14] - Full solid-state batteries from Funeng Technology are set for delivery by the end of the year, supporting humanoid robots with 8-12 hours of endurance [15] - The lithium battery industry is expected to see performance and valuation improvements over the next two years, making it a favorable mid-term investment sector [7] Energy Storage Sector - The release of the "136 Document" in Heilongjiang encourages independent energy storage, with a pricing mechanism set at 0.374 yuan/kWh for existing capacity [22] - In the first nine months of 2025, Chinese companies signed contracts for 208.09GWh of energy storage projects, with significant activity in the Middle East [23] - The Guangdong "136 Document" promotes energy storage leasing and sets a pricing range of 0.2 to 0.453 yuan/kWh for new projects [25] Power Equipment Sector - The Cangyue DC project, a major clean energy transmission initiative, has commenced construction, expected to transmit over 43 billion kWh of clean energy annually [26] - The Henan Yunan 1000kV substation expansion project has been approved, adding 3 million kVA of capacity [27] Photovoltaic Sector - The report notes a slight increase in silicon material prices, with multi-crystalline silicon averaging 51 yuan/kg [28] - The price of silicon wafers has also risen, with the average price for 210N wafers at 1.70 yuan/piece [29] - The report anticipates stable prices for photovoltaic components, driven by upstream cost pressures and a recovery in demand [31][32] Wind Power Sector - The report emphasizes the orderly progress of offshore wind projects in China, with several key projects already under construction [7] - It suggests focusing on leading companies benefiting from domestic and international offshore wind demand [7]

Investment Rating - The report maintains an "Overweight" rating for the construction materials industry [2]. Core Insights - The construction materials sector is expected to benefit from price increases in cement and electronic fabrics, with significant opportunities in the African cement market [1][5]. - The report highlights a shift from "demand expansion" to "price elasticity" in the industry, driven by scarcity and high barriers to entry [5]. - The report emphasizes the importance of focusing on high-quality companies within the sector, particularly those with strong brand recognition and operational leverage [5]. Summary by Sections Industry Overview - The total market capitalization of the construction materials industry is 874.92 billion yuan, with a circulating market value of 823.62 billion yuan [2]. - Key companies in the sector include Beixin Building Materials, Conch Cement, and China Jushi, all rated as "Buy" [4]. Market Trends - National cement production from January to August 2025 was 1.105 billion tons, a decrease of 4.8% year-on-year, with August production at 148 million tons, down 6.2% year-on-year [5]. - The report notes a price increase in cement in various regions, with Yunnan province planning to raise prices by 100 yuan/ton and Shaanxi province by 70 yuan/ton [5]. Company Recommendations - The report recommends focusing on companies like China National Materials and Huaxin Cement, which are expected to perform well due to their overseas growth and undervaluation [5]. - It also suggests monitoring the waterproofing industry, which is showing signs of recovery in demand and profitability [5]. Price Movements - The national cement market price increased by 0.5% week-on-week, with price hikes observed in regions such as Jiangxi, Guangxi, and Sichuan [33]. - The average cement shipment rate across key regions was approximately 48%, with a slight increase of 2 percentage points [33].

1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - This week, the trend of strong stocks and weak bonds continued, with increased differentiation in the stock market. The trading volume of the stock market increased overall, with the ChiNext and STAR 50 leading the gains, while micro - cap stocks continued to decline with reduced volume. The technology sector remained the main theme, and the leading sectors were either previously strong or previously stagnant, possibly due to the phased game of existing funds. New marginal pricing forces have joined the market, and the preference of existing funds has changed [5]. - Leveraged funds continue to contribute incremental strength, with their industry distribution becoming more "even" and popular stocks experiencing "de - crowding". Quant funds are no longer the marginal pricing force driving the rise of micro - cap stocks. Domestic funds are shifting from popular to unpopular sectors, while foreign funds are showing an obvious inflow trend. Bank wealth management is accelerating the market through "fixed - income +" products. The investment preferences of insurance and foreign funds are changing [5][6][8]. 3. Summary According to the Table of Contents Asset Price Performance 3.1.1. Major Asset Classes - Global stock markets in most countries rose to varying degrees this week, with the US NASDAQ leading the gains. Commodity prices were differentiated, with precious metals rising and non - ferrous metals and crude oil falling. The US dollar index remained basically unchanged, while the exchange rates of the RMB, Hong Kong dollar, and New Taiwan dollar continued to strengthen. Bonds were relatively weak, with the yields of Chinese, US, and Japanese government bonds rising to varying degrees. Chinese assets performed strongly, with the Hang Seng Index rising 0.6% this week, and the RMB and Hong Kong dollar exchange rates strengthening since the end of July and early August respectively [14]. 3.1.2. A - share Market - The ChiNext (2.3%) led the gains among broad - based indices, followed by the STAR 50 (1.8%) and the Shenzhen Component Index (1.1%). The micro - cap stocks led the decline. The trading volume of micro - cap stocks decreased, and their trading volume has dropped by 31% from the August high. Medium - cap stocks continued to outperform large - cap and small - cap stocks, as indicated by the decline in the CSI 300/CSI 1000 ratio and the continuous increase in the CSI 500/CSI 1000 ratio [16][20][25]. - The top five sectors in terms of gains were automobiles (3.6%), electronics (3.4%), power equipment (3.3%), household appliances (2.3%), and machinery (2.2%). Except for electronics and power equipment, the leading sectors were previously stagnant [28]. Capital Behavior Tracking 3.2.1. Index Trends and Capital Preferences - Recently, the ChiNext, STAR 50, and CSI 300 have continued to reach new highs, while previously it was micro - cap stocks and dividend (bank) stocks. The change in index trends indicates that the investment preferences and dominant capital have changed [35]. 3.2.2. Leveraged Funds - The proportion of margin trading volume in A - share trading volume continued to rise this week, reaching a new high since 2023. Leveraged funds are flowing into industries that were previously net - sold or had low net - buying volumes in margin trading, and where the proportion of margin trading balances to market capitalization is low, such as transportation, food and beverage, banks, household appliances, and petroleum and petrochemicals. Popular stocks have shown "de - crowding", with the proportion of leveraged funds in popular stocks dropping from a high of 5.75% at the end of August to 1.86%. The net margin buying of the ChiNext and STAR 50 has significantly decreased, while that of the CSI 1000 and SSE 50 has increased significantly [37][41][44]. 3.2.3. Quant Funds - Since late August, the excess return of quant index - enhanced funds has significantly decreased, turning from positive to negative, which is almost simultaneous with the peak and decline of micro - cap stocks. The basis of CSI 500 and CSI 1000 stock index futures has widened, indicating an increase in the hedging and risk - aversion needs of quant funds [50][51][56]. 3.2.4. Main Funds - The main funds of the CSI 300 have had continuous net outflows for five days. In the past week, main funds have almost withdrawn from all industries, with significant outflows from sectors such as computers, electronics, power equipment, non - bank finance, and non - ferrous metals, and inflows into sectors such as real estate, textile and apparel, and steel on the last two trading days [59][64]. 3.2.5. North - bound Funds - The total trading volume of north - bound funds increased significantly on Thursday and Friday this week, accounting for a new high of 13.9% of A - share trading volume on Friday. After the increase in north - bound trading volume on Thursday, the SSE 50 Connect rebounded, and the average increase of heavy - position stocks of north - bound funds on Friday was higher than the weekly median [66][70]. 3.2.6. Wealth Management Fund Transfer - From January to August this year, the new non - bank deposits reached approximately 6.4 trillion yuan, with about 3 trillion yuan added in July and August. The proportion of non - bank deposits in M2 has increased, in contrast to the decline in the proportion of storage - type institutions [75]. 3.2.7. Hong Kong Stock Market - Since August, the net buying and trading volume of south - bound funds flowing into the Hong Kong stock market have increased. In the past two weeks, the total trading volume of south - bound funds and their proportion in the Hong Kong stock market turnover have rebounded. The net buying volume of south - bound funds has decreased slightly compared to last week but remains at a relatively high level. South - bound funds mainly flow into sectors such as commerce and retail, non - bank finance, and pharmaceutical biology. In the past week, the communication sector has changed from net outflows to net inflows [84][85].