1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - In February, the price continued to recover. The CPI reflected the accelerated repair of endogenous momentum, especially the service sub - item after excluding the base effect. The PPI recovered under the input of raw materials and the mapping of computing power. The market is concerned about whether the bond market will trade the "inflation market", but the report maintains the view that the bond market is in the repair logic [6][7] 3. Summary According to Relevant Catalogs CPI Analysis - In February, the CPI and core CPI readings reached the highest monthly values in nearly 3 years. The CPI was 1.3% year - on - year and 1.0% month - on - month, and the core CPI was 1.8% year - on - year and 0.7% month - on - month, both the highest since February 2023 [2] - The strong rise of CPI was due to the Spring Festival month - shifting factor. Even excluding this factor, the CPI month - on - month was still 0.35 pct stronger than last year. The average month - on - month growth rate of CPI from January to February this year was 0.6%, second only to 2024 in the past 5 years and significantly higher than last year's 0.25% [2] - In terms of sub - items, from January to February, the month - on - month growth rates of service CPI and food CPI were 0.45 pct and 0.55 pct higher than last year, higher than those of non - food (+0.25 pct) and consumer goods (+0.2 pct). In February, food and tobacco, transportation and communication, and education and entertainment made large contributions to the year - on - year change of CPI, almost contributing to all the 1.1 pct change in CPI year - on - year [3] PPI Analysis - In February, the PPI continued to recover year - on - year, but the month - on - month repair speed slowed down. The PPI was - 0.9% year - on - year, with the decline narrowing by 0.5 pct compared with last month, and 0.4% month - on - month, with the growth rate the same as last month [4] - The ex - factory prices of means of production and means of subsistence continued to recover year - on - year. In February, they were - 0.7% and - 1.6% year - on - year, up 0.6 pct and 0.1 pct respectively compared with last month; the month - on - month growth rates were 0.5% and 0 respectively, with the former remaining flat and the latter down 0.1 pct compared with last month [4] - Among sub - items, the ex - factory price of the mining industry accelerated its recovery, while that of durable consumer goods slowed down. In February, the year - on - year and month - on - month growth rates of the mining industry's ex - factory price were - 5.3% and 1.2% respectively, up 2.8 pct and 2.9 pct respectively compared with last month; for durable consumer goods, they were - 1.6% and 0.3% respectively, up 0.2 pct year - on - year and flat month - on - month compared with last month, with the repair speed slowing down [4] - In terms of sub - industries, the ex - factory prices of upstream non - ferrous and energy - chemical industries with input - type characteristics and the computer, communication and electronics industries related to computing power had relatively large month - on - month increases, including non - ferrous mining, oil and gas processing, non - ferrous smelting and rolling, chemical product manufacturing, and chemical fiber manufacturing [4] Market Expectation and Current Situation - The market - expected inflation path included the mapping of "anti - involution" in the new energy industry chain, the turnaround of the real estate chain driving the black industry chain, and the non - ferrous market driven by the prosperity of the technology industry. However, recently, the input - type inflation narrative of "war + oil and gas" has taken the lead [7] - Such input - type inflation has been experienced in 2021 and 2022, which brought contraction risks to the downstream. Looking back, it had little impact on the bond market trend for the whole year. The report maintains the view that the bond market is in the repair logic [7]

Investment Rating - The report maintains an "Overweight" rating for the industry [6] Core Insights - The pharmaceutical sector is experiencing volatility and differentiation, with structural opportunities arising from policy catalysts and performance windows. The Shanghai Composite Index fell by 1.07%, while the pharmaceutical sector dropped by 2.78%, ranking 17th among 31 sub-industries. Notably, the market showed a rebound after initial geopolitical concerns, driven by positive mentions of pharmaceuticals in the government work report [8][14] - The report emphasizes the importance of the upcoming Q1 earnings reports, which are expected to provide positive catalysts, particularly for companies like Ailis, which anticipates a 41% revenue increase and a 44% rise in net profit [8][14] - The government work report highlights the development of emerging industries, including biomedicine, and reiterates the focus on innovative drugs and medical devices. This marks the third consecutive year that "innovative drugs" have been included in the report, indicating a sustained commitment to this sector [8][14] Summary by Sections Market Dynamics - The pharmaceutical sector's performance is influenced by both policy changes and market conditions, with a notable decline in various sub-sectors such as medical services and traditional Chinese medicine [8][14] - The report indicates that the pharmaceutical sector's valuation is currently at 22.4 times PE based on 2026 earnings forecasts, which is a premium of 8.4% compared to the overall A-share market [23] Investment Recommendations - The report suggests focusing on three main investment lines: 1. Leading biotech and biopharma companies that are expected to benefit from improved payment environments and global competitiveness, such as Kangfang Biotech and BeiGene [8][14] 2. Upstream and CXO sectors supported by "patient capital," with companies like WuXi Biologics and Tigermed highlighted as potential beneficiaries [8][14] 3. Cutting-edge fields such as brain-computer interfaces and AI in healthcare, with specific companies recommended for investment [8][14] Company Performance - The report notes that companies in the innovative drug sector have shown strong performance, particularly those with ongoing product developments. Conversely, stocks that previously experienced significant gains are now facing corrections [29]

Investment Rating - The investment rating for BYD is "Buy" (maintained) [2] Core Views - The report emphasizes the launch of the second-generation blade battery and megawatt charging technology, highlighting the new vehicle cycle and overseas expansion [3] - BYD aims to build 20,000 charging stations by the end of the year, enhancing domestic demand through the introduction of new models equipped with the latest technology [6] - The report projects revenue growth for BYD, with expected revenues of 837.1 billion yuan in 2025, 965.4 billion yuan in 2026, and 1,080.7 billion yuan in 2027, reflecting growth rates of 8%, 15%, and 12% respectively [2][6] Financial Projections - Revenue (in million yuan) is forecasted as follows: - 2023: 602,315 - 2024: 777,102 - 2025: 837,086 - 2026: 965,414 - 2027: 1,080,692 [2] - Net profit (in million yuan) projections are: - 2023: 30,041 - 2024: 40,254 - 2025: 39,541 - 2026: 43,965 - 2027: 52,273 [2] - Earnings per share (in yuan) are expected to be: - 2023: 3.29 - 2024: 4.42 - 2025: 4.34 - 2026: 4.82 - 2027: 5.73 [2] Market Position and Strategy - BYD is launching several new models, including the 2026 models of the Yangwang U7 and U8, and the new Tengshi Z9GT EV, among others, to kick off the new vehicle cycle [6] - The company is focusing on overseas expansion, with plans for self-built shipping fleets and overseas factories, which are crucial for long-term growth [6] - The report draws parallels with Toyota's overseas expansion strategy, suggesting that BYD's international business could positively impact its stock price during periods of domestic sales pressure [6]

1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - The recent escalation of the US-Iran conflict has led the global capital market to enter a phase of geopolitical risk repricing. Different durations of military conflicts have different impacts on major asset classes. Short - term conflicts cause a pulse - like increase in volatility, medium - term regional wars lead to supply shortages and trend - like movements in safe - haven assets, and long - term confrontations have far - reaching impacts on the global economy. For A - shares, short - term impacts are mainly through risk - preference and sentiment, while in the medium and long term, A - shares are still mainly driven by their own logic [5][8] - Short - term, the escalation of the US - Iran conflict may cause short - term shocks to A - shares, with defensive sectors strengthening and high - elasticity sectors correcting. Medium - term, the core variable is whether the conflict affects the Strait of Hormuz, leading to structural differentiation. Long - term, external geopolitical disturbances will not change the trend of A - shares returning to the domestic economic fundamentals, but will strengthen the allocation consensus on long - term investment themes [8] 3. Summary by Relevant Catalogs Market Review - **Market Performance**: Last week, most major market indices declined, with the Shanghai Composite Index performing relatively well, down 0.93% week - on - week. Among major industry indices, the energy and public utility indices performed well, up 7.38% and 3.44% respectively, while the telecommunications service and information technology indices were weak, down 5.23% and 4.35% respectively. Among the 30 Shenwan primary industries, 6 industries rose, with the petroleum and petrochemical, coal, and public utility industries rising 8.06%, 3.79%, and 3.42% respectively. The media, non - ferrous metals, and computer industries fell 6.97%, 5.47%, and 5.29% respectively [9][16][18] - **Trading Heat**: The average daily trading volume of the Wind All - A Index last week was 26446.19 billion yuan (previous value was 24402.93 billion yuan), at a relatively high historical level (96.70% of the three - year historical quantile) [21] - **Valuation Tracking**: As of March 6, 2026, the valuation (PE_TTM) of the Wind All - A Index was 23.43, down 0.28 from last week, at the 98.90% quantile of the past 5 years. Among the 30 Shenwan primary industries, 6 industries' valuations (PE_TTM) recovered [25] Market Observation - **How Major Asset Classes May Evolve After Geopolitical Conflicts**: Short - term conflicts (within one month) lead to a pulse - like increase in major asset volatility, with "safe - haven trading" as the main theme. For example, after the 2019 attack on Saudi Aramco's facilities, the Brent crude oil price rose sharply but quickly returned to fundamental pricing. Safe - haven trading was mainly focused on the US dollar rather than gold. If the conflict turns into a regional war lasting more than two months, the supply gap in the crude oil market will be persistent, and safe - haven assets will show a trend - like performance. For example, during the 2011 Libyan civil war, the oil price rose significantly, and gold and US Treasury bond prices increased for more than half a year. When the conflict becomes a long - term confrontation lasting several years, it will have a profound impact on the global economy. For example, after the Russia - Ukraine conflict entered the long - term stage in the second half of 2022, it led to European energy - supply structure adjustments. For A - shares, short - term impacts are mainly through risk - preference and sentiment, while in the medium and long term, A - shares are mainly driven by their own logic [5][8] - **Investment Recommendations**: Short - term, the escalation of the US - Iran conflict may cause short - term shocks to A - shares, with defensive sectors strengthening and high - elasticity sectors correcting. Beneficial assets include crude oil and natural gas. Medium - term, the core variable is whether the conflict affects the Strait of Hormuz, leading to structural differentiation. Beneficial assets include shipping, public utilities, and military industries. Long - term, external geopolitical disturbances will not change the trend of A - shares returning to the domestic economic fundamentals, but will strengthen the allocation consensus on long - term investment themes such as domestic substitution, national security, and industrial upgrading [8]

Investment Rating - The investment rating for BYD is "Buy" (maintained) [2] Core Views - The report emphasizes the launch of the second-generation blade battery and megawatt fast charging technology, highlighting the new vehicle cycle and overseas expansion [3] - BYD aims to build 20,000 fast charging stations by the end of 2026, which is expected to stimulate domestic demand for new vehicles [6] - The report projects that BYD will achieve revenue of 837.1 billion yuan in 2025, with a year-on-year growth rate of 8%, and a net profit of 39.5 billion yuan, reflecting a slight decline of 2% [6] Financial Projections - Revenue (in million yuan) is forecasted as follows: - 2023: 602,315 - 2024: 777,102 - 2025: 837,086 - 2026: 965,414 - 2027: 1,080,692 [2] - Net profit (in million yuan) projections are: - 2023: 30,041 - 2024: 40,254 - 2025: 39,541 - 2026: 43,965 - 2027: 52,273 [2] - Earnings per share (in yuan) are expected to be: - 2023: 3.29 - 2024: 4.42 - 2025: 4.34 - 2026: 4.82 - 2027: 5.73 [2] Market Position and Strategy - BYD's new vehicle lineup includes models such as the 2026 Yangwang U7 and U8, and the new Tengshi Z9GT EV, which are set to launch in 2026 [6] - The company is accelerating its overseas expansion with the establishment of factories in Uzbekistan, Thailand, Hungary, Brazil, and Malaysia [6] - The report draws parallels with Toyota's overseas expansion strategy, suggesting that BYD's international growth could positively impact its stock price during periods of domestic sales pressure [6]

Investment Rating - The report maintains an "Overweight" rating for the real estate sector [1] Core Insights - The report highlights a rebound in sales data following the two sessions, indicating a potential recovery in the real estate market [1][7] - The government is focusing on policies to control supply, reduce inventory, and improve the quality of housing supply, which may positively impact the market [7][14] Summary by Sections 1. Weekly Market Review - The Shenwan Real Estate Index fell by 4.09%, while the CSI 300 Index decreased by 1.07%, indicating underperformance of the real estate sector compared to the broader market [4][12] 2. Industry Fundamentals - For the week of February 27 to March 5, 2026, the total number of new homes sold in 38 key cities was 18,605 units, a year-on-year decrease of 29.6% but a month-on-month increase of 161.4%. The total area sold was 2.357 million square meters, down 18.4% year-on-year but up 235.9% month-on-month [5][21] - The total number of second-hand homes sold in 16 key cities was 16,477 units, with a year-on-year decrease of 25.6% and a month-on-month increase of 145.7%. The total area sold was 1.605 million square meters, down 26.8% year-on-year but up 150% month-on-month [5][40] 3. Land Market Supply and Transactions - During the week, 1,277.8 million square meters of land were supplied, with an average price of 1,732 yuan per square meter. The total land transaction area was 2,147.9 million square meters, showing a year-on-year increase of 1,998.5% [6] 4. Financing Analysis - Real estate companies issued a total of 10.55 billion yuan in credit bonds during the week, reflecting a year-on-year decrease of 36.26% but a month-on-month increase of 1,821.68% [6]

Investment Rating - The industry rating is "Increase" with an expectation of a growth rate exceeding 10% relative to the benchmark index over the next 6 to 12 months [19]. Core Insights - The market has entered a consolidation phase, with the core observation variable being changes in risk appetite. The upcoming end of the Two Sessions may lead to a decrease in risk appetite, compounded by ongoing conflicts in the Middle East and rising oil prices [3][11]. - The Wind All A Index has seen a decline of 2.3% over the past week, with small-cap stocks represented by the CSI 1000 dropping 3.64% and mid-cap stocks by the CSI 500 falling 3.44% [3][9]. - The short-term market environment is characterized by a narrowing distance between the 20-day and 120-day moving averages, indicating a potential continuation of the downward trend [8][10]. Summary by Sections Market Overview - The Wind All A Index is currently in a consolidation phase, with a PE ratio at the 90th percentile, indicating a high valuation level, while the PB ratio is at the 50th percentile, suggesting a moderate valuation level [12][14]. - The market trend line is positioned around 6790 points, with a negative profit effect recently recorded at -0.1% [10][17]. Sector Allocation - The mid-term industry allocation model continues to recommend the technology sector, particularly focusing on commercial aerospace (satellite ETF 563230.SH) for rebound opportunities. The performance trend model highlights the importance of the computing-related industry chain (semiconductor equipment ETF 159516.SZ, communication ETF 515880.SH) and cyclical sectors (oil and gas ETF 159309.SZ, energy and chemicals ETF 159981.SH), as well as agriculture (agriculture ETF 562900.SH) [7][9][11]. - Additionally, a defensive strategy suggests short-term attention on bank ETFs [9][11]. Trading Strategy - The report suggests maintaining a 60% position in absolute return products based on the Wind All A Index, reflecting the current market conditions and valuation metrics [12][19]. - The market is expected to remain in a consolidation phase, with potential adjustments still in play, and a wait for trading volume to drop below 2 trillion is advised for a possible effective rebound [3][11].

Investment Rating - The report does not provide a specific investment rating for the industry [6] Core Insights - The European Commission released the draft of the "Industrial Acceleration Act," which mandates the use of locally produced clean energy equipment in public procurement and government subsidy projects to reduce reliance on imports and strengthen domestic manufacturing [15] - The report highlights the strategic importance of hydrogen and green alcohol in energy security, with significant government focus on their development [39] Lithium Battery Sector - The battery industry index decreased by 1.18%, underperforming the CSI 300 by 0.11 percentage points, with core stocks like Wanrun New Energy (+7.9%) and Penghui Energy (+7.2%) showing significant gains [13][14] - The report recommends focusing on companies such as CATL and Yiwei Lithium Energy, and suggests monitoring new technologies in solid-state batteries [8] Energy Storage Sector - In February, the energy storage market completed orders totaling 52.7GWh, with average prices for battery cells rising to 0.35 yuan/Wh [21][22] - Major procurement results from China Huadian Group for a 12GWh energy storage project included candidates like Electric Power Era and CRRC Zhuzhou Institute [23][24] Power Equipment Sector - Gansu plans to add two new UHV projects, with significant investments aimed at enhancing energy transmission capabilities [26][27] Photovoltaic Sector - The report notes a decrease in silicon material prices, with multi-crystalline silicon averaging 48 yuan/kg, and a significant drop in silicon wafer prices due to high inventory levels [28][29] - The introduction of new regulations marks a shift towards market-oriented development in the photovoltaic industry, emphasizing the importance of operational efficiency over mere construction [36][37] Wind Power Sector - Recent approvals for offshore wind projects in Jiangsu and Guangdong indicate a robust growth trajectory for the sector, with significant capacity planned for the coming years [39][40] - The report highlights the global expansion of offshore wind projects, with notable developments in the UK and Germany [41][42] Hydrogen and Green Alcohol Sector - The strategic emphasis on hydrogen and green alcohol has been elevated, with government reports indicating their critical role in energy security and the transition to a low-carbon economy [39]

1. Report Industry Investment Rating - The industry rating is "Overweight", expecting a gain of over 10% relative to the benchmark index in the next 6 - 12 months [28] 2. Core Viewpoints - The bond market has seen a recovery this year, but the ongoing Middle - East situation has shifted asset pricing from "pulse - style" risk - aversion to inflation concerns. "Input - type" or "supply - side" inflation doesn't necessarily lead to bond market adjustments, and inflation usually isn't the core contradiction in the bond market. The report maintains the judgment that the 10 - year bond will repair to 1.75% and the 30 - year bond to 2.15%, and the 30 - year bond may present more opportunities due to its chip structure [4][8][26] 3. Summary by Relevant Catalogs 3.1 War and PPI Inflation - Since the beginning of the year, the bond market has had a recovery, but the Middle - East situation has changed asset pricing. As of March 6, the Nanhua Commodity Index rose 14.1%, with precious metals, industrial products, and agricultural products up 22.6%, 12.8%, and 3.9% respectively. The PPI inflation in March may accelerate further, with the average of the Nanhua Industrial Products Index in March up 6.7% from February, higher than the 4.4% increase in January. The inflation in January was driven by technology optimism and strategic premiums in metals, while the inflation in March is due to the US - Iran war, with oil prices soaring and affecting downstream products [8][9] 3.2 Impact of Inflation on the Bond Market - The current commodity price rebound is an "input - type inflation" risk caused by geopolitical events and energy prices. Inflation affects interest rates through two mechanisms: influencing central bank monetary policy and affecting inflation expectations or risk preferences. Looking at historical data from three similar post - 2020 periods, central bank monetary policy remained stable, and there was no consistent conclusion on market interest rates. "Input - type" or "supply - side" inflation doesn't necessarily lead to bond market adjustments and usually isn't the core contradiction in the bond market [14][21] 3.3 Micro - behavior and Strategy of the Bond Market - In the first week of March, the borrowing of Special 6 reached 10 billion, and the bond market showed a multi - empty game. After the holiday, 25 Special 6 first covered short positions and then increased short positions, with the borrowing concentration rising to a record high of 41.7%. Some short - sellers forced funds to stop losses, but the current fund holding duration is about 2.4 years, and there has been little addition of duration. The bond market has decoupled from high - volatility assets and has become a low - volatility allocation asset. The report maintains the repair targets of 1.75% for the 10 - year bond and 2.15% for the 30 - year bond, and the 30 - year bond may have more opportunities [23][25][26]

Investment Rating - The report maintains an "Overweight" rating for the industry [2] Core Insights - The Alzheimer's Disease (AD) sector is transitioning from "symptom improvement" to "disease-modifying therapies (DMT)" in 2026, marking a critical growth phase with the approval of two major amyloid-beta (Aβ) antibody drugs and the emergence of new diagnostic technologies [4][11] - 2026 is expected to be a pivotal year for AD, with significant conferences serving as platforms for academic exchange and market negotiations, focusing on drug administration convenience, the rise of Chinese voices, and the reassessment of diagnostic value [15] - Key drug progress in 2026 includes regulatory decisions on AXS-05 and Leqembi, which could expand the AD treatment market significantly [17] - The AD detection field is set for large-scale clinical adoption, driven by blood tests, AI advancements, and new biomarkers, with a focus on early and precise diagnosis [19] Summary by Sections Industry Overview - The industry comprises 504 listed companies with a total market value of approximately 69,490.56 billion [2] Market Trends - The investment logic is shifting from solely "new drug development" to a comprehensive ecosystem of "early screening + precise treatment + full-course management" [4][11] Key Drug Developments - Major drug approvals and data releases are anticipated throughout 2026, including AXS-05 and Leqembi, which are crucial for market expansion [17][18] Diagnostic Innovations - The trend towards "blood-based" and "intelligent" diagnostics is accelerating, with significant advancements expected in blood biomarkers and AI integration in imaging [19][20] Investment Opportunities - The report highlights the increasing role of Chinese pharmaceutical companies in the global AD landscape, with notable collaborations and innovative drug developments [21][22] Clinical Trials and Research - The domestic clinical pipeline for AD is entering a phase of rapid development, with a focus on precision diagnostics and disease-modifying treatments [24]