Investment Rating - The report maintains a "Strong Outperform" rating for the real estate sector [5] Core Insights - The implementation of deed tax exemptions has significantly improved transaction data, with 364,000 households benefiting from tax reductions totaling 8.4 billion yuan, averaging 23,000 yuan per household. This policy is expected to stimulate housing demand [1] - In November, land acquisition by major real estate companies reached a new high for the year, with 30 companies acquiring land worth 90 billion yuan, marking a year-on-year increase of 181%. The average floor price in core cities rose by 67% compared to October [2] - The report anticipates a surge in property transactions in December due to year-end promotions by developers and a potential easing of policies from the Central Economic Work Conference [3] Sales Review (12.1-12.7) - A total of 23,980 units were sold across 34 monitored cities, reflecting a week-on-week decrease of 32.4%. Cumulatively, 868,000 units have been sold in 2024, down 23.6% year-on-year. First-tier cities saw a 26.6% decrease week-on-week [4][13] Land Supply (11.24-11.30) - The planned land supply across 100 cities was 3.742 million square meters, with a cumulative supply of 38.733 million square meters in 2024, down 30.6% year-on-year. The average floor price for land was 3,969 yuan per square meter, with a week-on-week decrease of 7.8% [4][36] Land Transactions (11.24-11.30) - The total area of residential land sold across 100 cities was 1.518 million square meters, with a cumulative total of 23.581 million square meters in 2024, down 19.5% year-on-year. The average transaction floor price was 4,695 yuan per square meter, reflecting a 28.1% decrease week-on-week [4][50]

Investment Rating - The report maintains a rating of "Outperform the Market" for the pharmaceutical and biotechnology sector [4]. Core Insights - The report highlights the significant unmet demand in the lipid-lowering drug sector, driven by a large patient population suffering from atherosclerotic cardiovascular disease (ASCVD), which is the leading cause of death in China, accounting for over 40% of mortality [2][19]. - The report emphasizes the need for innovative lipid-lowering therapies, particularly focusing on new targets such as PCSK9, Lp(a), APOC3, ANGPTL3, and CETP, as traditional treatments like statins have limitations [2][19]. - The report suggests that the domestic companies involved in the development of innovative lipid-lowering drugs, such as Heng Rui Medicine, Shiyao Group, and Kangfang Biotech, should be closely monitored for investment opportunities [2][19]. Summary by Sections 1. Market Review and Investment Strategy - The report notes that the CITIC Pharmaceutical Index rose by 1.5% in the week of December 2-6, 2024, outperforming the CSI 300 Index by 0.1 percentage points [1]. - It suggests that the pharmaceutical sector can gradually increase allocations, with expectations of excess returns following the semi-annual reports [11]. 2. Lipid-Lowering Drug Industry Focus - The report identifies a large patient population with ASCVD and highlights the low treatment rates in China, with only 30.1% of high-risk patients achieving long-term LDL-C targets [2][19]. - It discusses the innovative research and development of lipid-lowering drugs targeting PCSK9, Lp(a), APOC3, ANGPTL3, and CETP, indicating a robust pipeline of new therapies [2][19]. 3. Weekly Market Recap and Hotspot Tracking - The report provides a recap of the A-share pharmaceutical sector's performance, noting a rebound after a period of decline, influenced by government procurement policies favoring domestic brands [2][3]. - It anticipates significant capital inflows into pharmaceutical ETFs and actively managed funds, suggesting potential for excess returns in the near future [2][11]. 4. Recommended Investment Combinations - The report lists specific companies to watch, including WuXi AppTec, United Imaging Healthcare, and Kangfang Biotech, as part of its investment strategy [2][11].

Investment Rating - The report maintains a positive outlook on the steel industry, suggesting a focus on potential investment opportunities despite current market challenges [2][14]. Core Viewpoints - The steel market is experiencing a weak trend, with iron ore prices remaining firm while coking coal prices have significantly declined, leading to downward pressure on steel prices. The macroeconomic expectations regarding policy have cooled, and both supply and demand for steel continue to decrease, with daily molten iron output dropping to 2.326 million tons [2][15]. - The report highlights five main investment lines, including companies with strong dividend yields and valuation recovery potential, those with high technical or cost barriers, and firms benefiting from resource endowments [2][15]. Summary by Sections 1. Investment Strategy - The steel market is currently in a weak phase, with a decrease in both supply and demand. Daily molten iron production has decreased, and steel prices are under pressure due to falling coking coal prices [2][15]. 2. Weekly Review 2.1 Industry Performance - The steel industry outperformed the CSI 300 index, with a weekly increase of 5.61% compared to the index's 1.44% rise. The current PE (TTM) for the steel industry is 28.61, and the PB (LF) is 1.01, indicating a mid-range valuation among industries [18]. 2.2 Stock Performance - Notable stock performances include Zhongnan Co. with a 28.89% increase, and Maanshan Steel with a 19.57% increase. Conversely, Guangda Special Materials saw a decline of 5.56% [21]. 2.3 Commodity Prices - The report provides insights into various commodity prices, including rebar, hot-rolled steel, coking coal, and iron ore, reflecting the current market dynamics [37][41][42]. 3. Recent Events 3.1 Macroeconomic Dynamics - Recent macroeconomic data indicates a mixed outlook, with China's PMI showing signs of improvement while export controls on dual-use items to the U.S. have been tightened [49]. 3.2 Industry Dynamics - The report notes planned maintenance for 12 blast furnaces in December, affecting a capacity of approximately 62,000 tons per day, alongside the introduction of new policies aimed at reducing emissions in key industries [54].

Investment Rating - The report maintains an "Outperform" rating for the light industry sector, indicating a positive outlook compared to the broader market [3]. Core Insights - The report highlights a slight upward trend in paper prices, suggesting a recovery in profitability for paper companies, with a focus on companies like Sun Paper, Bohui Paper, and Shanying International [1][3]. - The report emphasizes the strong performance of cross-border e-commerce, particularly in the context of the U.S. "Black Friday" and "Cyber Monday" sales, which saw significant online spending growth [3][4]. - The home furnishing sector is expected to see continued upward trends due to government subsidies and improved retail sales, with key players including Oppein Home, Sophia, and Zhijia Home [2][4]. Summary by Sections 1. Weekly Market Performance - The light industry sector underperformed the market with a 1.23% increase compared to the 1.44% increase in the CSI 300 index during the week ending December 6, 2024 [15]. - The packaging and printing index rose by 5.04%, while the home goods index only increased by 0.13% [15]. 2. Home Furnishing - The home furnishing retail sector showed signs of recovery, with a 7.4% year-on-year increase in retail sales for October, while the building materials and home furnishing market saw a 2.71% decline [37][38]. - The report notes a cumulative year-on-year increase of 1.6% in the furniture manufacturing industry from January to October [39]. 3. Paper and Packaging - As of December 6, 2024, paper prices have seen increases: double glue paper at 5,362.5 CNY/ton (+162.5 CNY), copper plate paper at 5,470 CNY/ton (+50 CNY), and box board paper at 3,697 CNY/ton (+40.4 CNY) [49]. - The report suggests focusing on companies with integrated supply chains and diverse product offerings, such as Sun Paper and Nine Dragons Paper [2][4]. 4. Consumer Goods - The report indicates a positive outlook for essential consumer goods, with a recommendation to focus on companies like Morning Glory and Dekang Oral Care, which are expected to benefit from improved consumer spending [3][4]. 5. Export Chain - The report highlights the growth in U.S. online sales during the holiday season, with "Black Friday" sales reaching approximately 10.8 billion USD, a 10.2% increase year-on-year [3][4].

Investment Rating - The industry rating is "Outperform the Market" [3] Core Viewpoints - The automotive sector is experiencing strong sales driven by policy incentives, with a notable increase in vehicle sales and a rapid inventory reduction, indicating significant trading opportunities [3][2] - The report emphasizes the importance of focusing on leading automotive manufacturers and companies involved in robotics, as the market is expected to see continued growth in both segments [3][9] - The report anticipates a sustained "price war" in the automotive market, particularly with the introduction of new models and competitive pricing strategies [2] Summary by Sections Recent Market Performance - The automotive index rose by 3.6% this week, ranking 8th out of 31 sectors [1] - In November, retail sales of passenger cars reached 2.446 million units, a year-on-year increase of 18%, while wholesale sales were 2.943 million units, up 15% year-on-year [2] Industry Changes - The report highlights a call from four associations for domestic companies to be cautious in purchasing American chips [2] - Changan Automobile plans to raise no more than 6 billion yuan through a private placement to its controlling shareholder and subsidiaries [2] Investment Strategy - The report suggests selecting leading automotive companies and those involved in robotics, with a focus on companies like Geely, Seres, Li Auto, and BYD, which have strong fundamentals and bargaining power [3][6] - For automotive parts, the report recommends focusing on companies with robotics layouts, anticipating growth in the autonomous driving sector and the emergence of humanoid robots [3][9] Recommendations - Recommended automotive leaders include BYD and Seres in A-shares, and Geely, Zeekr, Li Auto, and Xiaomi in Hong Kong and US markets [6] - For automotive parts, companies like Sanhua Intelligent Control, Top Group, and Shiyun Circuit are highlighted as key investment opportunities [6]

Investment Rating - The industry investment rating is "Outperform the Market" [6] Core Viewpoints - The report highlights the timely construction of large-scale clusters and the catalytic activities of OpenAI, with a focus on the optical module sector [3] - Major overseas AI companies are disclosing plans for large-scale cluster constructions, indicating a growing demand for computing power [3] - The report suggests that the optical module manufacturers are expected to benefit significantly from the increasing demand for data center hardware as AI applications develop [3] Summary by Sections Market Performance - The Nasdaq Composite Index rose by 3.34% and the Philadelphia Semiconductor Index increased by 2.73% during the week [2] - Notable performances include a 23.19% increase in Marvell Technology's stock, driven by strong AI demand, and a 10.99% rise in Salesforce's stock due to better-than-expected earnings [2] Optical Module Sector - Stock prices of optical module manufacturers such as Zhongji Xuchuang and NewEase fell by 29.23% and 22.48% respectively, attributed to market concerns over U.S. tariff policies [4] - Current valuations for Zhongji Xuchuang, NewEase, and Tianfu Communication are considered relatively low, with PE ratios of 17, 19, and 27 respectively [4] - The report anticipates that the gradual implementation of large-scale clusters will enhance the growth rate of optical module demand, with OpenAI's recent activities potentially acting as a catalyst for the sector [4] Server ODM Outlook - Hon Hai's November revenue was 672.6 billion TWD, a year-on-year increase of 3.47% but a month-on-month decrease of 16.43% [5] - Wistron's November revenue reached 95.243 billion TWD, showing a year-on-year increase of 24.61% [5] - The report predicts a double-digit growth in AI server shipments in Q4, while general server shipments are expected to remain stable or see slight growth [5] Recommendations - The report recommends focusing on the optical module sector, specifically companies like Zhongji Xuchuang, NewEase, and Tianfu Communication, as well as copper connection and PCB manufacturers [9]

Investment Rating - The industry rating is "Outperform the Market" [3] Core Insights - The report highlights the call from four major associations in China for caution in procuring American chips due to new export controls imposed by the U.S. on the semiconductor industry, which could impact the stability of chip supplies [2][11] - The launch of the Geely Galaxy Starship 7 EMi is noted, with a price range of 103,800 to 136,800 CNY, aimed at competing with models like BYD Song Pro DMi [12][13] - The automotive sector has shown strong performance, with the automotive index increasing by 3.6% from December 2 to December 6, outperforming the CSI 300 index by 2.2 percentage points [14] Summary by Sections Weekly Topic - The report discusses the implications of U.S. export controls on semiconductor products and the resulting recommendations for Chinese automotive companies to be cautious in their procurement of American chips [2][11] Market Performance - From December 2 to December 6, the automotive sector rose by 3.6%, while the CSI 300 index increased by 1.4%, indicating a strong performance relative to the broader market [14] - Year-to-date, the automotive sector has increased by 18.5%, ranking 6th among 31 sectors [14] Key Industry Data - Retail sales of passenger vehicles in November reached 2.446 million units, a year-on-year increase of 18%, while new energy vehicle retail sales were 1.277 million units, up 52% year-on-year [36] - Wholesale sales for passenger vehicles in November totaled 2.943 million units, a 15% increase year-on-year, with new energy vehicle wholesale sales at 1.467 million units, up 53% year-on-year [36] Industry News - The report mentions the strategic integration of Zeekr and Lynk & Co into a new entity called Zeekr Technology Group, aiming to produce high-end luxury new energy vehicles [71] - General Motors China has responded to rumors of restructuring by emphasizing the importance of its Chinese operations and its commitment to reducing inventory and costs [71] New Vehicle Highlights - The report lists the Geely Galaxy Starship 7 EMi and Avita 11 as notable new vehicle launches, with respective price ranges of 103,800 to 136,800 CNY and 279,900 to 429,900 CNY [76]

Investment Rating - The report maintains a positive outlook on the chemical industry, suggesting that leading companies with scale and cost advantages will benefit significantly from demand recovery and price stabilization [4][5]. Core Insights - The chemical sector has shown resilience with the overall market indices rising, including a 2.33% increase in the Shanghai Composite Index and a 1.26% increase in the CITIC Basic Chemical Index [16][18]. - Key developments include Tosoh's plan to expand HDI production capacity by 50% and Xinjiang Xinlianxin's successful trial production of a 60,000-ton formaldehyde project, indicating growth in high-performance chemical materials [2][3]. - Investment themes highlight strong domestic competitiveness in the tire sector, potential recovery in consumer electronics, and opportunities in resilient cyclical industries like phosphate and fluorine chemicals [3][5]. Market Performance Overview - The chemical sector's performance this week saw notable gains in sub-industries such as viscose (7.38%) and chlor-alkali (6.14%), while phosphate and potassium fertilizers experienced declines [18][20]. - The top-performing stocks in the chemical sector included Qianjiang Biochemical (50%) and Guanghua Technology (30.18%), reflecting strong investor interest [20][24]. Sub-Industry Highlights - **Tires**: The domestic tire industry shows strong growth potential, with recommendations to focus on companies like Sailun Tire and Linglong Tire due to their competitive advantages [2]. - **Phosphate Chemicals**: The supply constraints due to environmental policies and increasing demand from the new energy sector are expected to tighten the supply-demand balance, making companies like Yuntianhua and Chuanheng Holdings attractive [3]. - **Fluorine Chemicals**: The reduction in production quotas for second-generation refrigerants is stabilizing profitability, with companies like Juhua and Jincheng Fluorine Material recommended for investment [3]. Key Announcements - Notable announcements include the suspension of trading for Guofeng New Materials due to asset acquisition plans and the investment progress of Lubao Chemical in titanium resources [25][27]. - The report also highlights the completion of a high-end personal care product project by Kesi Co., which has been delayed to December 2025 [28].

Investment Rating - The report maintains a "Strong Buy" rating for the coal industry, indicating a positive outlook compared to the broader market [3]. Core Viewpoints - The coal supply is expected to marginally decrease, leading to a stable coal price environment. Despite high inventory levels, coal prices are unlikely to fall below 800 RMB per ton due to decreasing coal mine operating rates and increasing power plant procurement [2][3]. - The report emphasizes the importance of resource endowment, high dividend ratios, and improved production and sales in identifying investment opportunities within the coal sector. It suggests focusing on companies with strong fundamentals and potential for increased dividends [2][3]. - The coal industry is positioned to benefit from ongoing energy transformation policies, with supply constraints expected to persist due to strict capacity controls and increasing mining difficulties [2][3]. Summary by Sections 1. Weekly Market Review - The coal index increased by 5.39% this week, outperforming the Shanghai and Shenzhen 300 index, which rose by 1.44%. Year-to-date, the coal index has risen by 8.62%, while the broader index has increased by 15.8% [14][16]. 2. Thermal Coal 2.1 Key Indicators Overview - As of December 6, 2024, the Qinhuangdao 5500K thermal coal price is 812 RMB per ton, down 6 RMB from the previous week (-0.7%). The operating rate of coal mines in Shanxi, Shaanxi, and Inner Mongolia is 83.9%, a decrease of 0.6 percentage points week-on-week [2][30]. - Methanol and urea operating rates are at 86.8% and 82.3%, respectively, indicating a mixed performance in the non-electric sector [2][30]. 2.2 Annual Long-term Contract Prices - The long-term contract price for Qinhuangdao thermal coal (Q5500) is 696 RMB per ton, reflecting a month-on-month decrease of 3 RMB (-0.4%) and a year-on-year decrease of 14 RMB (-2.0%) [31]. 2.3 Spot Prices - Domestic coal prices have seen slight declines, with the Inner Mongolia price at 674 RMB per ton and Shanxi price at 674 RMB per ton, both showing week-on-week decreases [35][36]. 3. Supply and Demand 3.1 Supply - The operating rates of coal mines in the Shanxi, Shaanxi, and Inner Mongolia regions have slightly decreased, with Inner Mongolia at 90.3% and Shanxi at 73.3% [52][55]. 3.2 Demand - The daily consumption of the six major power plants is 80.4 million tons, down 1.6 million tons week-on-week. However, their inventory has increased to 1,444.6 million tons, reflecting a 1.0% increase [55][56]. 3.3 Inventory Management - The inventory of coal production enterprises has slightly increased to 1,405.9 million tons, while Qinhuangdao coal inventory is at 687.0 million tons, showing a minor increase [72].

Investment Rating - The industry investment rating is "Outperform the Market" [3] Core Insights - The report highlights the expansion of nuclear energy cooperation between China and Kazakhstan, emphasizing the strategic importance of this collaboration in oil, gas, renewable energy, and nuclear sectors [2] - The commencement of construction for the Ningde Nuclear Power Unit 5 is noted, marking a significant milestone in the nuclear energy sector [2] - Nuclear power is recognized for its clean, safe, and efficient characteristics, making it a crucial player in the transition to green energy and addressing global climate change [2] Summary by Sections Nuclear Energy Cooperation - China and Kazakhstan are set to enhance their cooperation in the nuclear energy sector, with recent meetings leading to new agreements [2] - The focus will be on stabilizing oil and gas supply while deepening practical cooperation in renewable energy and nuclear power [2] Ningde Nuclear Power Unit 5 - The construction of Ningde Nuclear Power Unit 5 has officially begun, with the first concrete pour marking the start of a new engineering phase [2] - The project aims for high-quality execution through meticulous planning and collaboration with upstream partners [2] Investment Opportunities - Recommended companies include: 1. Jiadian Co., which leads in helium fan products for fourth-generation reactors [2] 2. Guoguang Electric, providing key components for the ITER project [2] 3. Lanshi Heavy Industry, covering the entire nuclear fuel system and related equipment [2] 4. Kexin Electromechanical, producing high-temperature gas-cooled reactor products [2] 5. Hailu Heavy Industry, servicing various reactor types including third and fourth generation [2] 6. Jiangsu Shentong, securing over 90% of orders for nuclear-grade valves in new projects [2] 7. Xianheng International, involved in the operation and maintenance of nuclear energy [2]