Investment Rating - The report maintains an "Outperform" rating for the light industry manufacturing sector, indicating a positive outlook compared to the broader market [4]. Core Insights - Recent price increases in cultural paper and white cardboard suggest a recovery in profitability for the industry, with a focus on the high demand for IP-derived consumer products in the light industry manufacturing sector [1][2]. - The furniture manufacturing industry has shown a slight revenue increase of 1.6% year-on-year from January to October, with a notable recovery in October sales figures [1][3]. - The report highlights the potential benefits for companies focused on domestic sales and strong distributor networks, particularly in the customized furniture segment [1]. Summary by Sections 1. Industry Performance - The light industry manufacturing sector outperformed the market with a 5.35% increase in the index from November 25 to November 29, 2024, compared to a 1.32% increase in the CSI 300 index [17]. - The entertainment products index rose by 21.7%, while the home goods index increased by 5.76% during the same period [17]. 2. Furniture Industry - From January to October, the furniture manufacturing sector achieved a cumulative revenue growth of 1.6%, with October retail sales showing a year-on-year increase of 7.4% [40][41]. - The report notes a recovery in the real estate market, which is expected to positively impact furniture demand [1][33]. 3. Paper and Packaging - As of November 29, 2024, prices for various paper products have increased, with double glue paper at 5200 CNY/ton (+87.5 CNY), copper plate paper at 5420 CNY/ton (+80 CNY), and white cardboard at 4190 CNY/ton (+30 CNY) [2][49]. - The report suggests focusing on companies that integrate the forestry, pulp, and paper sectors, as well as those with diverse paper product offerings [2]. 4. Consumer Products - The light industry entertainment products index increased by 22%, with retail sales of sports and entertainment products rising by 26.7% year-on-year in October [3]. - Companies in the cultural and creative sectors, such as Morning Glory, are expected to benefit from a recovering domestic consumption environment [3]. 5. Export Dynamics - The report discusses potential tariff increases on products from Mexico, Canada, and China, which may impact export dynamics for light industry companies [3][7]. - Companies that have established overseas production capacities are better positioned to meet export demands [3].

Investment Rating - The report maintains a "Follow the Market" rating for the steel industry, indicating a stable outlook relative to the broader market [3]. Core Insights - The steel market is experiencing a mixed performance with a strong yet volatile black series market, influenced by macroeconomic policy expectations and seasonal storage patterns [2][14]. - Steel production and consumption are both declining, with daily molten iron output dropping to 2.339 million tons, and total steel production for the week at 8.615 million tons, down 0.9% week-on-week and 6.45% year-on-year [2][14]. - The report highlights a decrease in steel inventory to 1,173.5 thousand tons, reflecting a 1.35% week-on-week and 10.35% year-on-year decline, indicating a cautious production approach by steel mills [2][14]. Summary by Sections 1. Investment Strategy - The report suggests that the steel sector is entering a phase of strong expectations versus weak realities, with significant declines and low institutional holdings [15]. - Five main investment lines are recommended: high dividend stocks like Baosteel and Hualing Steel, companies with high barriers and overseas expansion like CITIC Special Steel, cost-advantaged firms like Fangda Special Steel, resource-rich companies like Hebei Steel Resources, and leaders in high-temperature alloys benefiting from domestic aircraft projects like Fushun Special Steel [15]. 2. Weekly Review 2.1 Industry Performance - The steel industry outperformed the CSI 300 index, rising 1.43% compared to the index's 1.32% increase [18]. - The steel industry's PE (TTM) is at 27.10 times, while the PB (LF) is at 0.95 times, indicating a mid-level valuation among industries [18]. 2.2 Stock Performance - Notable gainers in the steel sector include Guangda Special Materials (up 8.77%), Xianglou New Materials (up 7.63%), and Wujin Stainless Steel (up 7.49%) [21]. - Decliners include Chongqing Steel (down 2.61%) and Baotou Steel (down 1.03%) [21]. 2.3 Commodity Prices - The report provides insights into the price trends of key steel products, including rebar, hot-rolled steel, coking coal, and iron ore, reflecting the current market dynamics [33][41]. 3. Recent Events 3.1 Macroeconomic Dynamics - Recent macroeconomic indicators show a mixed outlook, with the U.S. national debt reaching a record high and China's central bank implementing monetary policy adjustments [48]. - The report notes significant developments in the steel industry, including production statistics and policy initiatives aimed at enhancing the sector's performance [52]. 3.2 Industry Dynamics - The report highlights production data from major steel companies, indicating a slight decrease in daily crude steel and pig iron production, while steel material production has shown a slight increase [52].

Economic Data - In the first ten months of 2023, China's industrial enterprises achieved a total profit of 58,680.4 billion yuan, a year-on-year decrease of 4.3%[1] - In October 2023, the profit of the equipment manufacturing industry increased by 4.5% year-on-year, marking a turnaround from negative growth[1] - The manufacturing PMI for November 2023 is at 50.3%, up by 0.2 percentage points from the previous month, indicating expansion in the manufacturing sector[1] Market Trends - The non-manufacturing PMI for November 2023 shows service and construction indices at 50.1% and 49.7%, respectively, indicating a mixed recovery in these sectors[1] - The U.S. Treasury Secretary nominee, Scott Bentsen, supports tariffs and aims to balance economic growth with Trump's political agenda, increasing market expectations for strong tariff policies[2] - The divergence in monetary policy between central banks, with Japan raising interest rates twice this year, contrasts with the expected rate cuts in Europe due to faster-than-expected economic slowdown[2] Risks - Potential geopolitical risks, economic data falling short of expectations, and significant fluctuations in overseas markets pose threats to the economic outlook[3]

Investment Rating - The report maintains an "Outperform" rating for the utility sector [4]. Core Insights - The report highlights the successful grid connection of the Zhangzhou Nuclear Power Unit 1, marking a significant milestone in the construction of third-generation nuclear power units in China, with a total of nearly 4GW expected to be commissioned in 2024 [19][20]. - The establishment of the CCUS (Carbon Capture, Utilization, and Storage) Innovation Alliance by central enterprises is expected to accelerate the marketization and commercialization of CCUS technologies, which are crucial for achieving carbon neutrality goals [24][25]. - The waste incineration power generation industry is transitioning towards higher standards and efficiency improvements, focusing on enhancing energy conversion rates and reducing carbon emissions through advanced technologies [30][31]. Summary by Sections Market Review - From November 25 to November 29, the environmental protection sector rose by 2.40%, while the electricity sector fell by 0.58%, against a backdrop of a 1.32% increase in the CSI 300 index [11]. Industry Perspectives - **Zhangzhou Nuclear Power Unit 1 Commissioning**: The unit's successful connection to the grid is a key development in the batch construction of the "Hualong One" nuclear technology, with expectations for three additional units to be commissioned in 2024 [19][20]. - **CCUS Innovation Alliance Launch**: The alliance aims to enhance collaboration among major carbon-emitting industries to promote the large-scale application of CCUS technologies [24][25]. - **Waste Incineration Upgrades**: The industry is focusing on improving energy efficiency and reducing carbon emissions, with a shift towards high-parameter steam and waste heat utilization technologies [30][31]. Investment Recommendations - The report suggests focusing on various sectors within utilities, including nuclear power, where China National Nuclear Corporation is recommended, and waste management companies like Yongxing Co., Sanfeng Environment, and Huanlan Environment [2][3].

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical sector [4]. Core Insights - The report emphasizes the significant growth potential of commercial health insurance as a major increment for the industry, alongside a focus on innovation and recovery [3][4]. - The National Medical Insurance Administration has announced the addition of 91 new drugs to the national medical insurance drug list, with a clear direction to encourage genuine innovation [2][22]. - The pharmaceutical sector has shown resilience, with the CITIC Pharmaceutical Index rising by 3.0% in the week of November 25-29, 2024, outperforming the CSI 300 Index by 1.7 percentage points [25][41]. Summary by Sections 1. Investment Strategy and Recommended Stocks - The report suggests gradually increasing allocations to the pharmaceutical sector, anticipating excess returns post semi-annual reports [14]. - Key investment themes include innovation, recovery, and supportive policies, with a focus on innovative biopharma and medical devices [14][3]. 2. National Medical Insurance Drug List Adjustment - The adjustment resulted in the addition of 91 drugs, including 38 innovative drugs that are globally new, marking a record high in both proportion and absolute numbers [2][24]. - The success rate for negotiations of innovative drugs exceeded 90%, significantly higher than the overall success rate [2][24]. 3. Weekly Market Review and Hotspot Tracking - The CITIC Pharmaceutical Index has underperformed the CSI 300 Index by 21.8% year-to-date, ranking 29th among CITIC industry classifications [25]. - The report highlights the top-performing stocks for the week, including HuLuWa (+49.6%) and DaDongFang (+31.8%) [41][25]. 4. Valuation and Market Dynamics - As of November 29, 2024, the overall valuation of the pharmaceutical sector stands at 27.84, with a relative valuation premium of 28.89% compared to the broader market [31]. - The report notes a decrease in trading volume for the pharmaceutical sector, with total trading volume of 3,809.8 billion yuan for the week, down 12.8% from the previous trading period [38].

Investment Rating - The industry rating is "Strongly outperform the market" [3][67]. Core Viewpoints - The industry is experiencing a downward trend in its economic climate, with titanium dioxide prices under pressure. As of November 29, the average price for titanium dioxide in November was 14,448 RMB/ton, a decrease of 349 RMB/ton compared to October, primarily due to a continued oversupply and a decline in demand [12][20]. - The average price of titanium ore has also decreased, with the average price for Panzhihua titanium concentrate (TiO2≥46%) at 2,057 RMB/ton, down 100 RMB/ton or 4.6% from October [14]. - The production of titanium dioxide in November was 275,000 tons, a year-on-year decrease of 8.8% and a month-on-month decrease of 5.2% [30]. - Exports of titanium dioxide showed a significant increase in October, with a volume of 154,000 tons, up 29.8% year-on-year, driven by demand from developing countries [40][42]. Summary by Sections 1. Titanium Dioxide and Raw Material Price Review - The industry is facing downward pressure, with titanium dioxide prices declining due to oversupply and reduced demand [12]. - The average price of titanium ore has decreased, while the price of concentrated sulfuric acid has slightly increased [14][16]. - The price differential for titanium dioxide has continued to decline, indicating further pressure on margins [20]. 2. Production Situation of Titanium Dioxide Enterprises - The production volume of titanium dioxide in November was 275,000 tons, with a decrease in both year-on-year and month-on-month comparisons [30]. - The operating rate of enterprises was 63.58%, down from 67.51% at the end of October [30]. - Inventory levels remain high, with a slight decrease to 310,000 tons [36]. 3. Import and Export Situation - Exports of titanium dioxide in October increased significantly, with developing countries like India and Brazil contributing to the demand [40][42]. - The cumulative export volume from January to October was 1,594,000 tons, reflecting a 16% year-on-year increase [42]. 4. Downstream Demand Tracking - The demand for titanium dioxide is closely linked to the real estate market, which is expected to stabilize, potentially boosting demand for coatings [50]. - Other sectors such as plastics, paper, and automotive are also showing stable growth trends [52]. 5. Titanium Dioxide Sector and Key Company Trends - The China Titanium Dioxide Index was 1,674 points as of November 28, reflecting a 1.3% decrease from the previous month [58]. - Key companies in the sector include Longbai Group, which has a significant production capacity and is expanding its upstream resources [63]. 6. Investment Recommendations - The report suggests focusing on Longbai Group, which has a leading position in titanium dioxide production and is expanding its resource base to ensure raw material security [63].

Investment Rating - The report maintains an "Outperform" rating for the non-ferrous metals industry [2]. Core Views - The report highlights macroeconomic disturbances increasing volatility, with supply-demand tightness supporting alumina prices [2]. - Precious metals are expected to experience price fluctuations in the short term due to concerns over inflation and geopolitical tensions, while maintaining long-term investment value [17]. - Industrial metals, particularly copper, are projected to have strong price support due to a tight supply-demand balance, with expectations of rising prices driven by monetary easing and strong demand from the new energy sector [19][22]. - The lithium market is anticipated to remain oversupplied in 2024, with price adjustments needed for supply-demand rebalancing [23]. Summary by Sections 1. Investment Strategy - Precious Metals: Weakness in US bonds and the dollar led to a pullback in gold prices, with geopolitical tensions affecting market sentiment [16]. - Industrial Metals: Supply constraints and macroeconomic policies are expected to support prices, particularly for copper and aluminum [18][22]. - New Energy Metals: Lithium prices are expected to decline, while the demand for lithium remains strong in the electric vehicle sector [23]. - Other Minor Metals: Prices are stable with demand-driven procurement [26]. 2. Weekly Market Review - The non-ferrous metals index fell by 0.61%, underperforming the CSI 300 index [30]. - Notable stock performances included Oriental Zirconium (+14.62%) and Zhongyuan New Materials (-17.03%) [34]. 3. Major Events - Macroeconomic indicators show increasing expectations for inflation, with improvements in China's manufacturing PMI [42]. - The report notes significant developments in the copper and aluminum sectors, including new projects and production adjustments [46]. 4. Price and Inventory Trends - Industrial metals are generally stable, with copper continuing to deplete inventories [19]. - Precious metals have seen price adjustments due to macroeconomic pressures, while minor metals are experiencing price fluctuations based on demand [26]. 5. Valuation - As of November 29, the non-ferrous metals industry has a PE ratio of 19.34, indicating relatively low valuations in the copper and aluminum sectors [36].

Industry Investment Rating - The report maintains a "Stronger than the Market" rating for the basic chemical industry [4] Core Views - The global tire industry has vast potential, and domestic tire companies are rapidly developing, with key players like Sailun Tire, Sentury Tire, General Tire, and Linglong Tire being highlighted [1] - The consumer electronics sector is expected to recover, benefiting upstream material companies, particularly those in the panel industry chain such as Dongcai Technology, Sike, Lightechem, and Ruilian New Materials [2] - Industries with strong resilience and those experiencing inventory depletion leading to a bottom reversal are worth attention, including phosphorus chemicals, fluorine chemicals, and polyester filament [3] - As the economy improves and demand recovers, leading companies with scale and cost advantages, such as Wanhua Chemical, Hualu Hengsheng, and Baofeng Energy, are expected to benefit significantly [6] - Supply disruptions in the vitamin market, particularly for vitamins A and E, are creating investment opportunities, with companies like Zhejiang Medicine and NHU being recommended [6] Market Performance - The chemical sector outperformed the broader market, with the CITIC Basic Chemical Index rising 1.89% and the Shenwan Chemical Index increasing 1.49% [1] - Top-performing sub-sectors included nylon (6.01%), coatings and pigments (5.06%), and other plastic products (4.95%), while underperformers included potash fertilizer (-1.71%) and titanium dioxide (-1.68%) [1] Key Industry Developments - The construction of the world's largest blue ammonia plant in Qatar, with an investment of 8.8 billion RMB, is set to produce 1.2 million tons of ammonia annually and capture 1.5 million tons of CO2, expected to start operations in Q2 2026 [1] - Wanhua Chemical completed the environmental protection acceptance for its 150,000-ton modified functional plastics project, with 94,000 tons of production capacity already operational, including modified PP, PC, and PA [1] Investment Themes - **Tire Industry**: Domestic companies are gaining competitiveness globally, with growth potential in key players like Sailun Tire and Linglong Tire [1] - **Consumer Electronics Recovery**: Upstream material companies in the panel industry chain are poised to benefit from the recovery in consumer electronics demand [2] - **Resilient and Rebounding Industries**: Phosphorus and fluorine chemicals, along with polyester filament, are highlighted for their strong market positions and recovery potential [3] - **Economic Recovery and Leading Companies**: Large-scale chemical companies with cost advantages are expected to benefit from the economic recovery and rising demand [6] - **Vitamin Supply Disruptions**: Supply constraints in vitamins A and E are creating investment opportunities in companies like Zhejiang Medicine and NHU [6]

华福证券 行业研 国防军工 军工本周观点：继续进攻 投资要点： 本周核心观点： 本周，国防军工指数上涨 1.99% ，同期沪深 300 指数上涨 1.32%，相对超 额 0.68pct，连续两周回调后本周迎来反弹，我们仍旧维系前期观点，军工 板块投资逻辑将从主题热度转为基本面驱动阶段，后续静待行业需求传导 落地。 细分主题领域，我们发现，市场已连续多周呈现出以反转效应及主题效应 为上涨动力的趋势。本周 11 月 30 日，长征十二号运载火箭在海南商业航 天发射场点火起飞，随后，火箭顺利将卫星互联网技术试验卫星、技术试 验卫星 03 星送入预定轨道，我国首个商业航天发射场首次发射任务告捷， 商业航天板块已超前反应，在本周跑出相对超额收益；2024 年即将进入尾 声，考虑到航天发射计划具有较强计划性，看好后续年内发射预期带来的 催化行情。 资金层面，本周融资买入额相较上周有所降低，表明短期杠杆类资金对军 工行业偏好热度略有下降；各军工 ETF 基金规模及份额相较上周均有所提 升，被动资金呈现小幅净流出情况但流出规模逐渐减小，表明被动资金对 军工板块信心稳固，考虑到军工行业 2024Q4-2025 的强需求恢复预期 ...

Investment Rating - The industry is rated as "Outperform the Market" [3] Core Insights - The report highlights a projected 20% year-on-year growth in global semiconductor sales for 2024, driven by strong demand for AI data centers and rising prices across memory products [2][35] - The establishment of a new polyimide film project by Ruihua Tai, with an investment of approximately 653 million yuan, aims to promote the import substitution of functional polyimide film materials [2][31] - The semiconductor materials sector is experiencing accelerated domestic production, with significant expansion in downstream wafer fabrication plants, indicating a favorable environment for leading companies to maximize industry benefits [2] Summary by Sections Overall Market Review - The Wind New Materials Index closed at 3694.63 points, up 0.85% week-on-week. The semiconductor materials index rose 2.31% to 6755.22 points, while the carbon fiber index fell 6.62% to 1282.99 points [10][26] Key Company Weekly Review - Top gainers included Huangma Technology (up 18.06%), Bayi Space (up 18%), and Jianghua Micro (up 16.95%). Conversely, major losers included Ruifeng High Materials (down 12.56%) and Aoke Shares (down 11.83%) [26][28] Recent Industry Hotspots - Japan's Sumitomo Chemical announced the transfer of its caprolactam production technology to HighChem Co., Ltd., which will enhance global licensing of this technology [31] - The successful continuous preparation of coal-based POE in China marks a significant advancement in domestic production capabilities [32][34]