Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The overall performance of A-shares in the third quarterly report continued to recover, with overall revenue and net profit attributable to the parent increasing year-on-year, and ROE showing an upward trend. There were significant structural differentiations among different industries and indexes [6]. - The overall risk appetite in the capital market decreased last week, which may lead to short - term shrinking and volatile market conditions. Attention should be paid to industries with high profit quality and large valuation safety margins in the third quarterly report [7]. - The current investment mainlines of A - shares may focus on strategic mid - upstream industries under "anti - involution" and the spread of technology application ends, and short - term attention should be paid to the structural rebound brought by consumption - promoting policies [9]. Summary According to Relevant Catalogs Market Review - Most of the major market indexes rose last week, with the Shanghai Composite Index having the largest increase of 1.08%. Among the large - scale industries, the energy index and the industrial index performed relatively well, with weekly changes of 4.56% and 2.42% respectively; the healthcare index and the optional consumption index performed weakly, with weekly changes of - 2.34% and - 1.13% respectively [10][14]. - Among the 30 Shenwan primary industries, 18 industries rose. The industries with relatively large increases were power equipment, coal, and petroleum and petrochemicals, with increases of 4.98%, 4.52%, and 4.47% respectively; the industries with relatively large decreases were beauty care, computer, and pharmaceutical biology, with decreases of 3.10%, 2.54%, and 2.40% respectively [17]. - The average daily trading volume of Wind All - A last week was 2.01235 trillion yuan (the previous value was 2.325335 trillion yuan), which was at a relatively high historical level (89.50% of the three - year historical quantile) [20]. - As of November 7, 2025, the valuation (PE_TTM) of Wind All - A was 22.20, an increase of 0.19 from the previous week, and it was at the 90.80% quantile of the recent five - year history. Among the 30 Shenwan primary industries, 12 industries' valuations (PE_TTM) showed signs of recovery [25]. Market Observation Impact of the Third Quarterly Report on Market Trends - After the disclosure of the A - share third quarterly report, the overall performance continued to recover. The overall revenue of all A - shares increased by 1.16% year - on - year, and the net profit attributable to the parent increased by 5.34% year - on - year. The ROE of all A - shares stopped falling and rebounded, and the profitability improved marginally. Among the major A - share indexes, the large - cap indexes recovered faster, and the ChiNext Index showed strong growth momentum. There were significant structural differentiations in the performance of different industries [6]. - From the perspective of the capital side, the overall risk appetite decreased last week. ETF and other long - term funds changed from net inflows to net outflows, the willingness of northbound funds and major industrial shareholders to leave the market in the short term increased, but margin trading funds continued to increase. The decrease in overall risk appetite in the capital side may lead to short - term shrinking and volatile market conditions, and the possibility of in - market funds clustering together increases [7]. Investment Recommendations - Combining the profit performance in the third quarter and policy signals, the current investment mainlines of A - shares may further focus on strategic mid - upstream industries under "anti - involution" and the spread of technology application ends, and short - term attention should be paid to the structural rebound brought by consumption - promoting policies [9]. - Mainline 1: Strengthen the "AI application and terminal" direction in the technology sector, and focus on sub - sectors such as robots, consumer electronics, Hang Seng Technology, and innovative drugs [9]. - Mainline 2: "Anti - involution" + "rare - earth - like" of key industries. These mid - upstream high - prosperity sectors are still underestimated by the market and may form a strong mainline [9]. - Mainline 3: Pay attention to the phased allocation opportunities of securities firms. Benefiting from the recovery of market popularity and policy support, securities firms may see double improvements in fundamentals and expectations [9].

Investment Rating - The report maintains a "Buy" rating for several key companies in the pharmaceutical and biotechnology sector, including WuXi AppTec, Sangamo Therapeutics, and Tigermed [2][8]. Core Insights - The report highlights a positive outlook for the pharmaceutical sector, anticipating a recovery in demand and profitability for innovative drug companies, particularly in the CRO/CDMO and life sciences upstream segments [7][14]. - The recent national medical insurance negotiations have concluded, with a focus on supporting innovative drug chains, and the new drug list is set to be implemented on January 1, 2026 [14][56]. - The report emphasizes the importance of monitoring developments in innovative therapies for breast cancer, particularly the advancements in KAT6 inhibitors and PI3K/mTOR inhibitors [15][20]. Summary by Sections Company Performance - Key companies recommended for investment include WuXi AppTec, WuXi Biologics, and Tigermed, all showing strong growth potential [2][8]. - The report notes that the pharmaceutical sector's overall market capitalization is approximately 731.50 billion, with a circulating market value of around 661.54 billion [5]. Market Trends - The report indicates that the pharmaceutical sector has experienced a decline of 2.40% recently, while the broader market (CSI 300) increased by 0.82%, suggesting a challenging environment for the sector [7][14]. - The report anticipates a gradual recovery in revenue and profit growth for the pharmaceutical sector, with a focus on innovative drugs and medical devices [14][56]. Regulatory Developments - The recent national medical insurance negotiations involved 120 companies, with 127 drugs participating in the basic medical insurance drug list negotiations [14][56]. - The introduction of a dual directory review model is expected to further support the innovative drug chain [14][56]. Innovation Focus - The report highlights the ongoing clinical trials for Celcuity's Gedatolisib and the advancements in KAT6 inhibitors by domestic companies, indicating a strong focus on innovative cancer therapies [15][20]. - The report suggests that companies like Kangchen Pharmaceutical are making significant strides in the KAT6 inhibitor space, positioning themselves competitively in the international market [53].

Investment Rating - The report maintains an "Overweight" rating for the industry [5]. Core Viewpoints - The "Aerospace Power" strategy is steadily advancing, and there are promising investment opportunities in the commercial aerospace sector [8][20]. - The number of commercial aerospace companies in China has exceeded 600, with a total of 25 launch sites, indicating a significant acceleration in the commercial aerospace industry [9][20]. Summary by Relevant Sections Industry Overview - The total market capitalization of the industry is approximately 28,978.52 billion yuan, with a circulating market value of 25,088.15 billion yuan [3]. - The defense and military industry index has a PE (TTM) of 70.4 times, with various sub-sectors showing different valuations [44]. Key Developments - The "14th Five-Year Plan" has successfully launched major aerospace projects, including manned spaceflight and deep space exploration, laying a solid foundation for becoming a space power [20]. - The Long March 7 modified rocket successfully launched the Remote Sensing Satellite 46, marking a significant achievement in satellite deployment [32]. Investment Opportunities - Suggested focus areas include missile and military electronics, with specific companies highlighted such as Zhenhua Technology and Hongyuan Electronics [16][20]. - In the commercial aerospace sector, companies like Aerospace Intelligence and Aerospace Electronics are recommended for investment [20]. Market Performance - The defense and military industry index experienced a decline of 0.47% recently, while the overall market indices showed positive growth [37]. - The report indicates a significant drop in financing buy-in amounts, suggesting a cautious market sentiment [47].

1. Report Industry Investment Rating - No relevant content provided 2. Core Views of the Report - This week, US tech stocks tumbled after earnings, and the domestic tech sector showed a "sell - the - news" situation. Micro - cap and dividend stocks led the gains again. The divergence in funds for tech stocks is significant, and the relay funds for the tech sector are still lacking. It is recommended to allocate assets in a balanced way and choose sectors weakly related to tech and relatively under - performing previously for hedging [5][6][8] 3. Summary According to the Table of Contents 3.1 Asset Price Performance 3.1.1 Performance of Major Asset Classes - This week (from November 3rd to November 7th, 2025), overseas stock markets declined, while A - shares and H - shares performed well. Global non - ferrous metal prices dropped. US Treasuries were relatively strong, and the yields of Chinese, Japanese, and German government bonds all increased. Commodity prices were divided, with precious metal prices falling and natural gas and soybean prices rising. The US dollar index declined, but the RMB and the Hong Kong dollar still depreciated against the US dollar. In the domestic stock market, the Shanghai Composite Index rose 1.1%, the ChiNext Index rose 0.6%, and the STAR 50 Index rose 0.01% [12][13][15] 3.1.2 A - share Market - **Index Performance**: Most broad - based indices rose this week. The Wind Micro - cap Stock Index (3.4%) and the Wind Dividend Index (2.2%) led the gains, while the CSI 500 underperformed with a 0.04% decline. After the National Day holiday, market volatility increased significantly, and the STAR Market, ChiNext, and micro - cap and dividend stocks often acted as two ends of a seesaw [17][19] - **Trading Volume**: The average daily trading volume of most broad - based indices decreased, and the trading volume of most indices returned to the level of mid - to early August. Only the micro - cap stock index continued to see an increase in trading volume [22][23] - **Industry Performance**: The top five sectors in terms of gains were petroleum and petrochemicals (4.3%), power equipment (4.3%), steel (4.2%), basic chemicals (4.1%), and coal (3.55%). The sectors with the largest declines were communication and electronics. Cyclical industries performed well this week, while the tech sector fell again after rising last week [26] 3.1.3 Sino - US Tech Stocks - US tech stocks tumbled after earnings, with the Nasdaq Composite Index falling 3.04% for the whole week. In contrast, domestic tech stocks were relatively resilient, and the STAR 50 Index deviated from US tech stocks in the second half of the week, rising 0.01% for the whole week [28] 3.1.4 Tech Sector Internals - Since October, only a limited number of tech sectors have outperformed the Wind All - A Index. Specifically, controllable nuclear fusion, solid - state batteries, and storage have achieved relatively high excess returns. This week, the tech sector maintained a volatile pattern, with internal rotation mainly around storage, semiconductors, and optical modules. The trading volume of the tech sector reached highs on Monday and Thursday and declined marginally on Tuesday, Wednesday, and Friday [32][37][38] 3.2 Fund Behavior Tracking 3.2.1 Leveraged Funds - **Trading Volume Proportion**: The proportion of margin trading and short - selling trading volume in A - share trading volume declined from 11.9% to 10.9%, indicating a decrease in leveraged trading activity. As of Thursday this week, the margin trading balance in A - shares was approximately 2.50 trillion yuan, a slight increase, and the proportion of the margin trading balance to the A - share free - float market capitalization was approximately 2.55%, a decrease from last Friday [46] - **Inflow Scale and ETF Flow**: Except for the ChiNext and the CSI 500, the major broad - based index components had net margin purchases, but the scale was not large. Most major index ETFs had net outflows [54] - **Large - Cap Stocks**: This week, stocks with a market capitalization of over 500 billion yuan added leverage, while stocks with a market capitalization between 100 billion and 500 billion yuan had positive net margin purchases, but the amplitude decreased. Among stocks with a market capitalization of over 500 billion yuan, the variance of margin trading was large, with most stocks having net margin sales. Cambricon, Hygon Information, and Industrial and Commercial Bank of China contributed the majority of net margin purchases, while stocks represented by Zhongji Innolight and SMIC had net margin sales [56] - **Industry - Level Leverage**: The top five sectors with the largest proportion of net margin purchases to trading volume were beauty care, real estate, power equipment, steel, and basic chemicals. The banking, non - banking finance, communication, home appliances, and building materials sectors reduced leverage. Leveraged funds gradually shifted to non - popular sectors. After the National Day, the basic chemicals and pharmaceutical biology sectors have added leverage for five consecutive weeks [61] - **Popular Stocks**: Most popular stocks in the power equipment and electronics sectors added leverage, but the amplitude in the electronics sector was smaller. The average proportion of leveraged funds in the top 35 popular stocks decreased to 0.19% this week [63] 3.2.2 Quantitative Funds - **Excess Returns**: The excess returns of quantitative index - enhanced funds rebounded. In the last week of October, the excess returns of the CSI 500 and CSI 1000 quantitative index - enhanced funds were - 0.9% and - 1.0% respectively. This week, the excess returns of the CSI 500 and CSI 1000 quantitative index - enhanced funds were 0.1% and - 0.5% respectively, showing an improvement compared to last week [72] - **Futures Basis**: This week, the basis discounts of the CSI 500 and CSI 1000 stock index futures widened and remained at a relatively high level for three consecutive weeks. The number of contracts for the "current month", "next month", and "current quarter" of the CSI 500 and CSI 1000 stock index futures changed little, but the number of "next quarter" contracts increased significantly [80] 3.2.3 Main Funds - **Overall Outflow**: This week, the main funds of the CSI 300, ChiNext, and STAR Market had a net outflow, but the scale was smaller than last week. The outflow of the CSI 300 and ChiNext was relatively large on Tuesday and Friday [82] - **Industry - Level Flow**: The main funds flowed out of the computer, electronics, and pharmaceutical sectors the most, with the computer sector having continuous large - scale net outflows for five days. The main funds flowed into the chemical sector the most, with continuous net inflows from Wednesday to Friday [91] 3.2.4 Northbound Funds - **Trading Amount and Proportion**: This week, the total trading amount of northbound funds decreased, with the average daily trading amount dropping from 272.9 billion yuan to 243.5 billion yuan. The proportion of northbound funds in A - share trading increased from 11.7% to 12.1% [93] - **Performance of Heavy - Positioned Stocks**: The heavy - positioned stocks of northbound funds performed well [96]

Investment Rating - The investment rating for the company is "Buy" (maintained) [3][12] Core Views - The company has shown strong profit performance, with a significant increase in net profit driven by tax incentives and effective cost control measures [6][7] - The company is expanding its educational services, leveraging AI and innovative course offerings to enhance its market position [7] - The financial outlook remains positive, with projected revenue growth and stable profit margins, supported by a solid foundation in textbook publishing and educational materials [7][8] Financial Performance Summary - For the first three quarters of 2025, the company reported a revenue of 6.62 billion yuan, a decrease of 1.2% year-on-year, while net profit increased by 46.9% to 747 million yuan [6][7] - The revenue for Q3 2025 was 2.05 billion yuan, down 5.7% year-on-year, but net profit rose by 39.0% to 215 million yuan [6][7] - The company expects revenues of 10.35 billion yuan in 2025, with a year-on-year growth of 4.96%, and net profit of 1.37 billion yuan, reflecting a growth of 32.68% [7][8] Business Development Summary - The company has a solid foundation in educational publishing, with a focus on high-quality content and innovative distribution methods [7] - The launch of the "Cloud Store" mini-program enhances the purchasing experience for educational materials [7] - The company is actively developing new educational formats, including AI-driven platforms and specialized research courses, which have been implemented in over 500 schools [7]

Group 1: A-Share Market - The A-share market experienced an overall increase this week, with the Shanghai Composite Index rising by 1.08%, while the North China 50 index fell by 3.79%, indicating significant market differentiation [6] - The market style showed a clear shift towards value and cyclical sectors, driven primarily by traditional energy and materials industries, with substantial profit improvements in the steel sector during Q3 providing solid performance support [6][7] - Future expectations for the A-share market suggest a continuation of structural trends supported by policy and liquidity, with a focus on "developing new productive forces" as outlined in the 14th Five-Year Plan, emphasizing anti-involution and technology [7] Group 2: Hong Kong Market - The Hong Kong market also saw an overall increase, with the Hang Seng Index rising by 1.29%, while the Hang Seng Technology Index fell by 1.20%, reflecting significant internal differentiation [8] - The performance of the Hong Kong market was influenced by two main factors: increased correlation with the A-share market and strong earnings in energy and financial sectors benefiting from "dual carbon" policy expectations [8] - Looking ahead, the Hong Kong market is expected to navigate between "Chinese fundamentals" and "overseas liquidity," with energy and financial sectors likely to remain stabilizers, while technology stocks may face pressure from overseas market trends [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company's performance in Q3 2025 met expectations, with a revenue increase of 3% and a net profit increase of 20% [7] - The outlook for overseas sales is optimistic, particularly with the sponsorship of the World Cup in 2026, which is expected to drive double-digit growth [11] - The company is focusing on enhancing its market share through high-end product launches and improving its pricing strategy in the domestic market [9] Summary by Sections Financial Performance - Q3 2025 revenue reached 53,616 million, a year-over-year growth of 17%, while net profit attributable to the parent company was 2,096 million, reflecting a 25% increase [5] - For the first three quarters of 2025, revenue grew by 5% and net profit increased by 24% [7] Sales Breakdown - Domestic sales showed a better performance with a revenue increase of 3%, while overseas sales also grew by 3% [8] - The average selling price in the domestic market improved due to the focus on miniled products and a low base effect [8] Future Projections - Revenue projections for 2024, 2025, and 2026 are 58,530 million, 61,462 million, and 65,325 million respectively, with expected growth rates of 9%, 5%, and 6% [5] - Net profit forecasts for the same years are 2,246 million, 2,472 million, and 2,791 million, with growth rates of 7%, 10%, and 13% [5] Market Strategy - The company is expected to benefit from increased overseas sales driven by its sponsorship of the World Cup and the introduction of new high-end products [11] - The focus on laser and commercial display products is anticipated to contribute significantly to revenue growth [10]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company's Q3 performance met expectations, with 2C (consumer) exports exceeding expectations. Q3 revenue was 112.4 billion (up 10%), and net profit attributable to shareholders was 11.9 billion (up 9%) [6][10] - The company is expected to maintain growth in Q4 despite high base effects from the previous year, with a focus on improving supply chain and sales efficiency [10] Financial Performance Summary - Q3 revenue reached 112.4 billion (up 10%), with net profit attributable to shareholders at 11.9 billion (up 9%) and non-recurring net profit at 10.9 billion (up 7%). The profit growth rate was lower than revenue growth due to losses from three acquisition businesses amounting to 3 billion [6] - For the first three quarters, total revenue was 364.7 billion (up 14%), with net profit attributable to shareholders at 37.9 billion (up 20%) [6] - The company expects to see a steady performance in Q4, with internal sales growth projected to be stable despite a decline in national subsidies [7][10] Segment Performance Summary - 2C Smart Home: Q3 revenue growth was 10%, with domestic sales up 5% and exports up 15%. The company is focusing on cost reduction and efficiency improvements [7][8] - 2B Business: Q3 revenue growth was in double digits, with exports outpacing domestic sales. The company aims to double its building business revenue to 10 billion USD by 2030 [9] - Robotics: KUKA benefited from expanded industry and domestic orders, maintaining a growth rate of 10% in Q3 [9] Earnings Forecast and Valuation - The company’s earnings forecast for 2025-2027 has been adjusted, with net profit attributable to shareholders projected at 44.9 billion, 49.4 billion, and 53.9 billion respectively, reflecting growth rates of 16%, 10%, and 9% [10][11] - The company maintains a strong balance sheet, with other current liabilities and contract liabilities increasing by 11.9 billion compared to the same period last year [10]

Investment Rating - The report does not provide a specific investment rating for the public REITs industry [1]. Core Insights - The REITs index experienced a decline of 0.40% this week, while the Shanghai and Shenzhen 300 index rose by 0.82% [19]. - The total market capitalization of the industry is approximately 217.1 billion yuan, with a circulating market value of about 110.9 billion yuan [1]. - The trading volume for the week was 25.9 billion yuan, reflecting a decrease of 6.3% compared to the previous week [7]. - The report highlights the correlation of REITs with various indices, showing a correlation of 0.16 with ten-year government bonds and 0.37 with the Shanghai and Shenzhen 300 index [21]. Summary by Sections Market Overview - The report notes significant events in the market, including the listing of the CITIC Construction Shenyang International Software Park REIT on November 6, which had a trading volume of 77.57 million yuan and a turnover rate of 23.74% [10][11]. - Other notable events include the holding of meetings by various REITs to discuss performance and future strategies [10]. Trading Performance - The report indicates that 32 REITs saw price increases, 2 remained stable, and 43 experienced declines, with an overall decrease of 0.40% in the REITs market [23]. - The largest gain was recorded by Huaxia Jinmao Commercial REIT, which increased by 4.42%, while the largest decline was by GF Chengdu Gaotou REIT, which fell by 9.44% [23]. Investment Recommendations - The report suggests that the overall economic stability remains unchanged, and REITs are expected to have strong allocation attributes in the long term. Investors are encouraged to pay attention to sector rotation and expansion opportunities [7].

Investment Rating - The report maintains an "Accumulate" rating for Gree Electric Appliances [3] Core Views - The company's performance is expected to face short-term pressure, with a projected decline in revenue and net profit for 2025, followed by a slight recovery in 2026 and 2027 [9][10] - The company has introduced a competitively priced air conditioner to regain market share, indicating a potential improvement in market fundamentals [9] - The current valuation is at 7X, with a projected dividend yield of 5-7%, suggesting a favorable investment opportunity [9] Financial Summary - Revenue for 2023 is projected at 205,018 million, with a year-over-year growth rate of 8%. However, revenue is expected to decline by 7% in 2024 and 2025, before recovering slightly in subsequent years [3] - Net profit for 2023 is estimated at 29,017 million, with an 18% growth rate, but is expected to decrease by 7% in 2025 [3] - Earnings per share (EPS) is projected to be 5.18 in 2023, decreasing to 5.36 in 2025, before gradually increasing again [3] - The company's return on equity (ROE) is expected to decline from 25% in 2023 to 18% by 2027 [3] Market Performance - In Q3, the company reported a revenue of 40 billion, down 15% year-over-year, and a net profit of 7.05 billion, down 10% [5] - The overall sales volume has slowed, with a decline in both domestic and international sales, particularly in exports [6] - The company's contract liabilities and other current liabilities have shown a stable increase of 2-3% year-over-year, indicating a steady financial position despite declining sales [7]