Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - Last week, the credit bond market adjusted significantly, with the ChinaBond New Composite Index falling 0.22% for the week. Short - term and medium - to - long - term pure bond funds declined by 0.04% and 0.12% respectively. The CSI AAA Sci - tech Innovation Bond Index and the SSE Benchmark Market - making Corporate Bond Index dropped 0.30% and 0.34% respectively [8]. 3. Summary by Related Catalogs 3.1 Funds Flow - As of September 26, 2025, bond - type ETFs had a net inflow of 117.5 billion yuan in the past week. Interest - rate, credit, and convertible - bond ETFs had net outflows of 1.444 billion yuan, net inflows of 119.269 billion yuan, and net outflows of 325 million yuan respectively. Among credit - type ETFs, short - term financing, corporate bonds, and urban investment bonds had net outflows of 574 million yuan, 22 million yuan, and 70 million yuan respectively. Market - making credit - bond ETFs had a net outflow of 1.425 billion yuan, while sci - tech innovation bonds had a net inflow of 121.36 billion yuan. - As of September 26, 2025, the cumulative net inflows of interest - rate, credit, and convertible - bond ETFs for the year were 62.338 billion yuan, 420.901 billion yuan, and 26.697 billion yuan respectively, totaling 509.936 billion yuan [4]. 3.2 Net Value Performance - Throughout the week, the net values of interest - rate and credit - bond ETF products adjusted to varying degrees. The 30 - year Treasury Bond ETF performed weakly, falling 0.50% for the week as of September 26, 2025. Among other products, the benchmark Treasury Bond ETF and the Policy - Financial Bond ETF declined by about 0.2%. The Treasury - Policy Financial Bond ETF, the 0 - 4 Local Government Bond ETF, and the Short - term Financing ETF performed well. The Convertible Bond ETF and the SSE Convertible Bond ETF rose 0.88% and 0.89% respectively last week [5]. 3.3 Performance of Credit - Bond ETFs and Sci - tech Innovation Bond ETFs - As of September 26, 2025, the median unit net values of credit - bond ETFs and sci - tech innovation bond ETFs were 1.0047 and 0.9931 respectively, falling 0.28% and 0.29% for the week. Among credit - bond ETFs, the SSE Corporate Bond ETF and the Credit - Bond ETF Fund both declined 0.34%, performing weakly, while the Credit - Bond ETF Tianhong and the Credit - Bond ETF Dacheng performed better. Among sci - tech innovation bond ETFs, the Sci - tech Innovation Bond ETF Southern fell 0.32%, and the Sci - tech Innovation Bond ETF E Fund and the Sci - tech Innovation Bond ETF Invesco performed relatively well. - As of September 26, 2025, the median discount rate of credit - bond ETFs was 41BP, and that of sci - tech innovation bond ETFs was 9BP [6]. 3.4 Credit - Type ETF Duration Tracking - As of September 26, 2025, the holding durations of the Short - term Financing ETF, the Corporate Bond ETF, and the Urban Investment Bond ETF were 0.31 years, 2.06 years, and 2.22 years respectively. Among market - making credit - bond ETFs, the median holding durations of products tracking the Shanghai Market - making Corporate Bond and Shenzhen Market - making Corporate Bond were 4.15 years and 2.99 years respectively. Among sci - tech innovation bond ETFs, the median holding durations of products tracking the AAA Sci - tech Innovation Bond, the Shanghai AAA Sci - tech Innovation Bond, and the Shenzhen AAA Sci - tech Innovation Bond were 3.26 years, 3.53 years, and 2.97 years respectively [9].

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company has shown steady progress in its barcode module and semiconductor optics businesses, with expectations for recovery in the microscope business in the second half of the year [5][9] - The company’s revenue for H1 2025 was 441 million yuan, representing a year-on-year increase of 3.0%, while the net profit attributable to shareholders was 108 million yuan, up 8.8% year-on-year [6] - The optical components business generated 265 million yuan in revenue for H1 2025, accounting for 60.1% of total revenue, with a year-on-year growth of 4.4% [7] Summary by Sections Financial Performance - For H1 2025, the company reported a revenue of 441 million yuan, with a gross margin of 40.3% and a net margin of 24.6% [6] - The company’s revenue projections for 2023A to 2027E show a growth trajectory, with expected revenues of 1,763 million yuan by 2027, reflecting a compound annual growth rate [4][11] Business Segments - The barcode scanning and machine vision segments are experiencing steady growth, with the company maintaining its position as the global leader in optical component shipments [8] - The automotive LiDAR segment is expected to see accelerated growth in shipments, contributing significantly to profits in the second half of the year [8] - The medical optics segment is also projected to maintain high growth, with increasing penetration rates and collaborations with leading companies [8] - The semiconductor optics business is anticipated to gradually realize revenue from multiple key projects in the second half of the year [8] Market Position - The company has achieved a market share increase in high-end microscopes, with over 40% of its microscope shipments being high-end products [9] - The company’s barcode scanning business has transitioned from Tier 2 to Tier 1 status, indicating a significant improvement in its market position [8] Investment Recommendations - Based on the mid-year performance, the company’s profit forecasts for 2025-2027 have been adjusted to 270 million, 348 million, and 457 million yuan respectively, with corresponding P/E ratios of 45, 35, and 27 [9][11]

1. Report Industry Investment Rating - No relevant information provided in the content 2. Core Viewpoints of the Report - Although there is short - term adjustment pressure, A - shares have strong long - term support, and the current point still has a high probability of winning. The short - term adjustment in the technology and financial sectors is normal, and there is potential for medium - and long - term growth. The financial brokerage sector has strategic allocation value and potential rebound space as long as policies remain favorable and capital market reforms continue [5]. - Due to the rising risk - aversion sentiment before the National Day holiday, the high - level technology sector may continue to decline last week. However, in the long - term, it is recommended to "hold stocks during the holiday" and focus on four types of allocation directions [6]. 3. Summary by Relevant Catalogs Market Review - **Market Performance**: Most major market indices rose last week, with the Science and Technology Innovation 50 having the largest increase of 6.47%. In the large - scale industry, the Information Technology Index and the Materials Index performed relatively well, with weekly changes of 1.71% and 0.80% respectively, while the Daily Consumption Index and the Healthcare Index performed weakly, with weekly changes of - 2.39% and - 2.11% respectively. Among the 30 Shenwan primary industries, 7 industries rose. The industries with larger increases were Power Equipment, Non - Ferrous Metals, and Electronics, rising 3.86%, 3.52%, and 3.51% respectively; the industries with larger declines were Social Services, Commerce and Retail, and Light Industry Manufacturing, falling 5.92%, 4.32%, and 2.71% respectively [7][8][15][17] - **Trading Volume**: The average daily trading volume of Wind All - A last week was 2313.193 billion yuan (the previous value was 2517.846 billion yuan), which was at an extremely high historical level (94.70% of the three - year historical quantile) [20] - **Valuation Tracking**: As of September 26, 2025, the valuation (PE_TTM) of Wind All - A was 22.12, an increase of 0.02 from the previous week, and it was at the 89.90% quantile of the historical level (in the past 5 years). Among the 30 Shenwan primary industries, the valuations (PE_TTM) of 7 industries were repaired [24] Market Observation - **How to View the Recent Decline in the Technology and Financial Sectors**: Last week, the market style continued to show differentiation. In the technology sector, there was a shift from high - performing to low - performing stocks, and the cyclical assets were generally weak. Although there was short - term adjustment pressure, A - shares had strong long - term support. From the capital side, there was potential for new funds to enter the market, the pressure of industrial capital withdrawal eased, and the willingness to finance and go long was stable. From the news side, large - scale capital investment and positive IPO news provided momentum for the technology sector. The adjustment of the financial brokerage sector was likely a process of long - term funds gradually deploying at low prices, and it had strategic allocation value [5] - **How to View the Recent Upturn in the A - share Technology Sector**: Investment advice was to "hold stocks during the holiday" and focus on four types of allocation directions: the main line of technological innovation, the "anti - involution" theme, the sectors benefiting from the easing of Sino - US relations, and the brokerage sector [6] Global Economic Calendar - Domestic economic data to be released this week include China's official comprehensive PMI and China's Caixin Manufacturing PMI. Overseas economic data include changes in the number of US ADP employees, the Atlanta Fed's GDPNow economic growth forecast, the US U6 unemployment rate (%), seasonally adjusted changes in non - farm payrolls, the US unemployment rate (%), and the US Markit Composite PMI [26]

A-Share Market - The A-share market is experiencing a divergence, with growth styles outperforming. The ChiNext Index and the CSI 100 Index increased by 1.96% and 1.75% respectively, while the CSI 1000, CSI 2000, and the Northbound 50 Index saw declines, with the Northbound 50 dropping by 3.11% [2][7] - The semiconductor industry chain is performing well, particularly in equipment and wafer foundry sectors, leading to a 3.67% increase in the electronics sector. The long-term growth outlook for technology hardware remains positive due to demand driven by AI [5][7] - The average daily trading volume for the week was 2.31 trillion, reflecting a week-on-week decline of 8.13% [2][7] Hong Kong Market - The Hong Kong market is generally weak, with major indices recording declines. The Hang Seng Index fell by 1.57% and the Hang Seng Tech Index decreased by 1.58%. The materials sector was the only standout, increasing by 2.53%, while healthcare, consumer staples, and real estate sectors saw significant declines [9][10] - The market's performance is under pressure from weak economic data from the mainland and the digestion of Federal Reserve interest rate cut expectations. The healthcare sector is notably impacted by potential high tariffs on Chinese pharmaceuticals from the US [9][10] - Future market trends in Hong Kong will be influenced by developments in AI and technology sectors, with Alibaba's CEO announcing a three-year plan to invest 380 billion in AI infrastructure, which is expected to significantly enhance cloud computing capabilities by 2032 [10]

Investment Rating - The report maintains an "Increase" rating for the coal industry [5]. Core Viewpoints - The coal price is expected to show a clear upward trend due to structural supply issues and seasonal demand increases, particularly in the context of the "anti-involution" policy promoting production discipline [7][8]. - The report highlights the potential for investment opportunities in the coal sector, especially as prices stabilize and begin to rise in response to seasonal demand and supply constraints [7][8]. Summary by Sections 1. Core Viewpoints and Operational Tracking - The report emphasizes the importance of production discipline and the impact of government policies on coal supply, which are expected to tighten supply further [7]. - The "Golden September and Silver October" period is anticipated to support non-electric coal demand, with winter stockpiling expected to boost thermal coal demand [7][8]. 2. Coal Price Tracking - As of September 26, 2025, the price of Shanxi-produced thermal coal at the port is 707 RMB/ton, reflecting a week-on-week decrease of 2 RMB/ton [8]. - The report notes that the price of coking coal at the port has increased by 80 RMB/ton, indicating a strong demand in the steel sector [8]. 3. Coal Inventory Tracking - The average daily production of thermal coal from 462 sample mines is 5.651 million tons, showing a week-on-week increase of 0.53% [8]. - The report indicates that coal inventories at northern ports are at a phase of low levels, which may lead to further price increases if not replenished effectively [7][8]. 4. Downstream Performance of the Coal Industry - The average daily iron water output from 247 steel enterprises is 2.4236 million tons, which is a week-on-week increase of 0.56% [8]. - The report highlights the correlation between coal prices and downstream demand from the steel industry, which is expected to remain strong [8]. 5. Recent Performance of the Coal Sector and Individual Stocks - The report suggests focusing on high-elasticity stocks such as Yanzhou Coal, Shanxi Coal International, and Jin控煤业, which are expected to benefit from the anticipated price increases [7][8].

Group 1: Market Overview - The macroeconomic environment remains supportive with expectations of further easing from the Federal Reserve, which has already lowered rates by 25 basis points in September, with projections for additional cuts by the end of the year [2] - A-shares are experiencing a high level of trading activity, with average daily turnover exceeding 2.45 trillion yuan in September, up from 2.31 trillion yuan in August, indicating strong market liquidity [2] - The technology sector continues to show strength, with the Wande Technology Index accounting for 40.8% of total A-share trading volume, reflecting ongoing liquidity inflows into this sector [2] Group 2: Sector Analysis - The technology sector is characterized by a clear differentiation between high and low performers, with previous leaders like optical modules and communication equipment seeing lower gains in September, while semiconductor materials and energy storage stocks have shown significant recovery [2][3] - Cyclical and dividend-paying stocks remain weak due to poor economic data, with various sectors underperforming compared to technology [3] - The current risk premium for A-shares is low, with the risk premium for the CSI 300 index at 5.19%, close to historical lows, suggesting limited downside potential [3] Group 3: Investment Strategy - The report recommends focusing on technology stocks with a strong price-performance ratio, particularly those that have lagged behind in previous rallies, to enhance potential returns [5] - There is an emphasis on upstream materials related to energy storage and semiconductor industries, such as lithium and cobalt, which are expected to benefit from ongoing demand growth in electric vehicles and semiconductor manufacturing [5] - The October stock selection includes a diverse range of sectors, highlighting companies in innovative pharmaceuticals, electronics, automotive, and communications, indicating a strategic approach to capitalize on sectoral strengths [10][11]

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].