Market Overview - In July, the overall A-share market experienced an increase, with the CSI 300 index rising by 3.54%, the CSI 1000 by 4.80%, the CSI 500 by 5.26%, and the ChiNext by 8.14% [16][17] - The top three performing sectors in July were steel, pharmaceuticals, and telecommunications, while the banking sector saw a decline [16] Multi-Strategy Stock Selection - The multi-strategy stock selection strategy achieved an absolute return of 6.04% in July, with a relative excess return of 1.64% compared to the CSI All Share Index [30] - The strategy's weight allocation for August shows the highest allocation to growth stocks at approximately 31.03%, while the lowest allocation is to value stocks at about 15.62% [21][22] - The strategy includes four sub-strategies: value stock strategy, growth stock strategy, quality stock strategy, and liquidation stock strategy, which are adjusted based on risk parity and momentum optimization [21][30] Extreme Style High BETA Stock Selection - The extreme style high BETA stock selection strategy recorded an absolute return of 3.05% in July, with a relative excess return of -1.23% compared to the CSI All Share Index [5][19] - The weight allocation for August indicates the highest allocation to large-cap value stocks at approximately 66.86%, while the smallest allocation is to small-cap value stocks at about 33.14% [53][54] "Dividend +" Preferred Stock Strategy - The "Dividend +" preferred stock strategy achieved an absolute return of 3.70% in July, with a relative excess return of -0.60% compared to the CSI All Share Index [6][19] - The strategy's portfolio consists of 30 selected stocks, with an average market capitalization of 1,095.78 million, primarily concentrated in the power and public utilities, machinery, and transportation sectors [6] Moving Average Trend Strategy - The moving average trend strategy recorded an absolute return of 5.07% in July, with a relative excess return of 0.71% compared to the CSI All Share Index [7][19] - The strategy's portfolio includes 30 stocks, mainly distributed across the non-ferrous metals, telecommunications, and steel industries [7] Sentiment Price-Volume Strategy - The sentiment price-volume strategy's top 50 combination achieved an absolute return of 7.68% in July, with a relative excess return of 3.21% compared to the CSI All Share Index [8][19] - The strategy's portfolio consists of 50 selected stocks, primarily in the electronics, machinery, and automotive sectors [8] Sci-Tech Innovation Board Strategy - The Sci-Tech Innovation Board strategy achieved an absolute return of 14.11% in July, with a relative excess return of 9.27% compared to the ChiNext 50 Index [8][19] - The strategy's portfolio includes 30 selected stocks, with nearly 40% concentrated in the pharmaceutical industry [8]

行 业 研 究 华福证券 汽车 2025 年 08 月 03 日 低空行业周报（7 月第 5 周）：深圳发布低空基 础设施高质量建设方案，行业静待催化 投资要点： 本周行情回顾 行 业 定 期 报 本周（7 月 28-8 月 1 日）Wind 低空经济指数下跌 0.11%，概念板 块排名 114/330，整体跑赢大盘（上证指数本周下跌 0.57%）。与其他 科技条线主题板块相比，跑赢人形机器人指数 2.05pct，跑输 AI 算力指 数 0.59pct。 本周上证指数在前半周创本年新高后，后半周有所回调，低空经 济指数本周整体走势与大盘相仿。标的走势相对分化，莱斯信息等基 础设施建设相关的标的本周走势相对较好；此外我们此前建议关注的 新标的腾亚精工本周上涨 19%，属于在低空赛道中充分走出超额收益 的标的。本周深圳市发布《深圳市低空基础设施高质量建设方案（2024 —2026 年）》，后续其他地区也有望逐步推进基础设施相关的方案文 件，低空经济产业落地正逐步推进。 华福证券 证 券 研 究 报 告 整体而言，当前位置合适+下半年以来催化不断+中美新博弈方向， 低空是具备反弹要素的。1）开年以来除了年初一小波行 ...

Investment Rating - The industry rating is "Outperform the Market" [8] Core Insights - The establishment of China Changan Automobile Group on July 29, 2025, with a registered capital of 20 billion yuan and total assets of 308.7 billion yuan, marks a significant step in optimizing state-owned capital layout and enhancing the competitiveness of China's automotive industry [3][14] - The launch of the Li Auto i8, a mid-large pure electric SUV priced between 321,800 to 369,800 yuan, features a range of 720 km and a fast charging capability of 500 km in just 10 minutes [4][15] - The launch of the Leidao L90, a large pure electric SUV priced between 265,800 to 299,800 yuan, is based on NIO's NT3.0 platform and supports a 900V high-voltage architecture [4][17] Market Performance - From July 28 to August 1, 2025, the automotive sector declined by 2.4%, underperforming the CSI 300 index, which fell by 1.8% [20] - Year-to-date, the automotive sector has increased by 9.8%, ranking 15th among 31 sectors [20] Sales Data - From July 1 to 27, 2025, retail sales of passenger vehicles reached 1.445 million units, a year-on-year increase of 9%, but a month-on-month decrease of 19% [6][38] - New energy passenger vehicle retail sales during the same period were 789,000 units, up 15% year-on-year but down 17% month-on-month [6][39] Key New Vehicles - The Li Auto i8 and Leidao L90 are highlighted as significant new electric vehicle launches, with the i8 focusing on family usability and the L90 offering advanced features and spaciousness [15][17][81]

Investment Rating - The report maintains an "Outperform" rating for the industry [7] Core Insights - The domestic CD7 CAR-T therapy is expected to achieve breakthroughs, with a focus on Anke Biopharma [5][17] - The market for innovative drugs continues to show strong performance, with significant trading volume and interest in new drug developments [5][41] Market Review - The CITIC Pharmaceutical Index rose by 2.7% during the week of July 28 to August 1, 2025, outperforming the CSI 300 Index by 4.5 percentage points, ranking second among CITIC's primary industry classifications [4][41] - Year-to-date, the CITIC Pharmaceutical and Biotech Index has increased by 22.8%, surpassing the CSI 300 Index by 19.7 percentage points [4][41] - The top five performing stocks for the week included Nanjing New Drug (up 78%), Lide Man (up 46.4%), Chenxin Pharmaceutical (up 40.9%), Qizheng Tibetan Medicine (up 40%), and Guangshengtang (up 36.4%) [4][56] Focus on CD7 CAR-T Therapy - Relapsed/refractory T-ALL/LBL has a poor prognosis, with a median survival of only 6 months and limited treatment options available [5][17][18] - Anke Biopharma's PA3-17 is leading in domestic clinical trials for CD7 CAR-T therapy, currently in Phase II, showing an overall response rate (ORR) of 84.6% and a complete response (CR) rate of 76.9% in Phase I trials [5][27][26] - The potential for PA3-17 to become the first approved product targeting T-cell malignancies in China is significant, with opportunities for expanding indications [5][26][33] Investment Recommendations - The report suggests focusing on a combination of innovative drugs, particularly those with commercial capabilities and rich pipelines, as well as medical devices that are expected to see a turnaround in fundamentals [5][41] - Recommended stocks for August include Heng Rui Pharmaceutical, Kangfang Biopharma, Kanghong Pharmaceutical, and others [5][12]

Core Insights - The report highlights the positive performance of the pharmaceutical index, with five out of six sub-industries recording positive returns this week [2] - The approval of the traditional Chinese medicine "Loquat Lung Clearing Granules," developed by Xiamen University and Shenwei Pharmaceutical, marks a significant achievement in the modernization of traditional medicine, showcasing the integration of ancient wisdom with modern technology [3][8] - The Chinese traditional medicine industry is entering a new phase of high-quality development, supported by government policies and technological innovations, with the market size expected to exceed 480 billion yuan by 2024 [9][10] Industry Performance Review - The pharmaceutical sector, particularly the chemical pharmaceuticals and traditional Chinese medicine sub-industries, showed strong performance with increases of 5.01% and 3.12% respectively [14] - The valuation levels for the chemical pharmaceuticals and biological products were the highest at 92.95 times and 74.63 times respectively, while traditional Chinese medicine had a valuation of 34.05 times [14] Industry Trends and Developments - The report discusses the implementation of the "Strong Foundation Project" by the National Development and Reform Commission, aimed at enhancing grassroots healthcare services and promoting the integration of traditional Chinese medicine into the healthcare system [21] - The introduction of policies in Henan Province to include suitable traditional Chinese medicine techniques in medical insurance coverage is expected to alleviate the economic burden on patients and promote the use of traditional medicine in chronic disease treatment [26][30]

Investment Rating - The report maintains an "Outperform" rating for the industry [8] Core Insights - The introduction of the "flow tax" is expected to improve the competitive landscape and profitability of sectors such as clean appliances, pet food, and kitchen small appliances [12][14] - The newly announced childcare subsidy policy will provide 3,600 yuan per year for each newborn until the age of three, which is anticipated to lower family birth costs and stimulate demand in the maternal and infant sectors [15][18] - The report highlights that the domestic demand is expected to recover due to policy support, with specific recommendations for major appliance companies benefiting from trade-in programs [19] Summary by Sections Investment Opportunities - The "flow tax" regulation limits tax deductions for advertising expenses to 15% of annual revenue, which may lead to a more sustainable competitive environment in e-commerce [12][14] - The childcare subsidy program is projected to create a market of approximately 100 billion yuan annually, benefiting maternal and infant products [15][18] Weekly Market Insights - The home appliance sector experienced a decline of 2.3% this week, with specific segments like white goods and kitchen appliances seeing drops of 2.6% and 3.2% respectively [24] - The textile and apparel sector also faced a decline of 2.14%, with cotton prices showing a decrease of 1.86% [26] Investment Recommendations - Major appliance companies such as Midea Group, Haier Smart Home, and Gree Electric are recommended due to expected benefits from trade-in policies [19] - The pet industry is highlighted as a resilient sector, with companies like Guibao Pet and Zhongchong Co. suggested for investment [19] - Small appliances and branded apparel are expected to see a recovery in demand, with recommendations for leading brands like Supor and Anta Sports [19] Global Expansion Themes - The report emphasizes the long-term theme of overseas expansion, recommending leading clean appliance brands like Roborock and Ecovacs for their global market potential [20] - The report also notes that Chinese manufacturers maintain a competitive edge in global markets, particularly in major appliances and tools [20]

Investment Rating - The coal industry is rated as "stronger than the market" [7] Core Views - The coal prices have shown a continuous upward trend due to increased daily consumption and reduced inventory as the peak season approaches [5] - The global coal shipment volume to China reached 5.524 million tons, an increase of 1.096 million tons, while the coal arrival volume was 6.376 million tons, up by 1.31 million tons year-on-year [5] - The coal supply elasticity is limited due to strict capacity control under carbon neutrality policies and increasing mining difficulties, leading to a potential new normal of underproduction [5] Summary by Sections 1. Weekly Market Review - The coal index dropped by 4.67%, underperforming the Shanghai and Shenzhen 300 index by 2.92 percentage points [15] - Year-to-date, the coal index has decreased by 10.35%, while the Shanghai and Shenzhen 300 index has increased by 3.05% [15] 2. Thermal Coal 2.1 Key Indicators Overview - As of August 1, the Qinhuangdao 5500K thermal coal price was 663 CNY/ton, up by 1.5% week-on-week [3][30] - The average daily output of 462 sample mines was 5.474 million tons, down by 3.32% week-on-week [42] 2.2 Annual Long-term Price - The long-term price for Qinhuangdao thermal coal (Q5500) was 668 CNY/ton, a month-on-month increase of 0.3% [28] 2.3 Spot Prices - The domestic price for Qinhuangdao 5500K thermal coal increased by 10 CNY/ton week-on-week [30] - The price for Inner Mongolia's 5500K coal rose by 25.5 CNY/ton, while Shanxi's price increased by 32 CNY/ton [30] 2.4 Supply and Demand 2.4.1 Supply - The operating rate of coal mines in Shanxi, Shaanxi, and Inner Mongolia was 80.2%, down by 1.3 percentage points week-on-week [40] - The average daily output of thermal coal from 462 sample mines decreased by 3.32% week-on-week [42] 2.4.2 Demand - The daily consumption of the six major power plants increased slightly to 87.7 million tons, up by 0.63% week-on-week [46] - The inventory of these power plants decreased to 1,394.3 million tons, down by 0.26% week-on-week [46] 2.4.3 Inventory Management - The total inventory index for thermal coal was 192 points, down by 1.8% week-on-week [56] - The inventory at Qinhuangdao port dropped significantly to 535 million tons, down by 8.23% week-on-week [66] 3. Coking Coal 3.1 Key Indicators Overview - The price for coking coal at Jing Tang port remained stable at 1,680 CNY/ton [80] - The average daily output of coking coal from 523 sample mines was 77.7 million tons [80] 3.2 Spot Prices - The price for Shanxi's coking coal increased by 30 CNY/ton week-on-week, while prices in Henan and Anhui remained unchanged [81]

Investment Rating - The report maintains a "stronger than market" rating for the public utility sector [8]. Core Views - The adjustment of capacity electricity prices in Guangdong and Gansu provinces is expected to enhance the profitability stability of thermal power and promote its transition to flexible adjustment power sources, reinforcing its role in the new power system [3][20]. - The energy supply and demand are relatively relaxed in the first half of 2025, with a rapid acceleration in green transformation, as renewable energy continues to dominate new installations [4][25]. Summary by Sections 1. Investment Recommendations - The report recommends Jiangsu Guoxin in the thermal power sector, cautiously recommends Sheneng Co. and Zhejiang Energy Power, and suggests attention to Funiu Co. and Huadian International. In the nuclear power sector, it cautiously recommends China Nuclear Power and China General Nuclear Power. For the green energy sector, it suggests attention to Three Gorges Energy and Jiangsu New Energy, with cautious recommendations for Longyuan Power, Zhejiang New Energy, and Zhonglv Electric. In the hydropower sector, it recommends Changjiang Power and cautiously recommends Huaneng Hydropower and Qianyuan Power, while suggesting attention to Guotou Power, Chuan Investment Energy, and Zhejiang Fu Holdings [4]. 2. Industry Dynamics - On July 29, the Guangdong Provincial Development and Reform Commission announced an increase in capacity electricity prices for coal and gas power units, with coal power capacity price adjusted to 165 yuan per kilowatt per year (including tax) starting January 1, 2026. The gas power price will be adjusted based on unit type starting August 1, 2025 [3][39]. - In Gansu, the initial standard for coal power capacity price is set at 330 yuan per kilowatt per year for two years, with a coverage ratio increase from 30% to 100% [20][21]. 3. Renewable Energy Developments - In the first half of 2025, renewable energy accounted for nearly 60% of the total installed capacity in China, with new installations reaching 268 million kilowatts, a year-on-year increase of 99.3% [4][25]. - Renewable energy generation reached 1,799.3 billion kilowatt-hours, accounting for 39.7% of total generation, with wind and solar power generation increasing by 27.4% year-on-year [26][31].

Group 1 - The report maintains a strong market rating for the utility sector, highlighting the dual focus on traditional and renewable energy sources as a key investment strategy for 2025 [1][2] - In the first half of 2025, electricity consumption growth was weaker than the same period last year, with a total of 4.84 trillion kWh consumed, reflecting a year-on-year increase of 3.7% [3][11] - The report forecasts that by 2030, the share of wind and solar energy will exceed 30%, while coal power will drop below 40%, indicating a shift towards a more balanced energy market [3][57] Group 2 - The hydropower sector is expected to see accelerated growth in pumped storage capacity, reaching approximately 66 million kW by the end of 2025, driven by increasing demand for flexible power resources [3][28] - The thermal power sector is experiencing a reduction in revenue but an increase in profitability, with coal prices declining, which is expected to enhance the earnings potential of coal power companies [3][61] - Nuclear power development remains robust, with 10 new units approved in 2025, contributing to a total of 56 units under construction or approved, ensuring long-term growth in this segment [3][61] Group 3 - The renewable energy sector is transitioning from subsidy dependence to market-driven dynamics, with policies promoting direct market access for wind and solar projects [3][61] - Investment recommendations include focusing on companies that can adapt to the new energy structure, with specific mentions of companies in hydropower, thermal power, nuclear power, and renewable energy sectors [3][61] - The report emphasizes the importance of system flexibility to accommodate the increasing share of renewable energy, predicting a gradual increase in the proportion of flexible adjustment resources [3][66]

Group 1 - The report suggests that a reversal strategy may be a new choice in the current market environment, where overall profit growth is slowing and high-growth industries are contracting. The decline in dividend asset returns indicates that reversal strategies could present excess opportunities during periods of dividend stagnation [3][10]. - The reversal strategy is based on a model that tracks changes in industry profit expectations. A reversal signal is triggered when the profit expectation rises significantly from its low point, specifically by 25% or 70% [25][23]. - Historical data shows that when industry profit expectations rise by 25%, there is a 72% success rate over four months, with an average outperformance of 5% against the All A index. When the rise is 70%, the success rate increases to 80%, with an average outperformance of 7.8% over the same period [25][24]. Group 2 - The report highlights that the overall profit growth for the All A index has been declining from 2021 to 2024, with high-growth industries shrinking. However, there is an expectation that profit growth may reverse in 2025-2026 [6][10]. - The report identifies key industries such as non-bank financials, construction materials, electronics, steel, and telecommunications that have shown significant profit expectation increases since the beginning of the year [3][6]. - The analysis indicates that during periods of dividend stagnation, reversal strategies tend to outperform, particularly in weak economic conditions where high dividend assets are underperforming [15][16].