Investment Rating - The industry rating is "Outperform the Market" indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 to 12 months [52]. Core Insights - The semiconductor materials sector is accelerating domestic production, with rapid expansion in downstream wafer factories, highlighting the competitive advantages of leading companies [4]. - The report emphasizes the importance of the photoresist segment as a critical core area for self-sufficiency in China, with a positive outlook for Tongcheng New Materials in terms of import substitution [4]. - The demand for high-performance materials is expected to increase as domestic manufacturing upgrades continue, leading to rapid growth in the new materials industry [4]. - The report identifies key companies to watch, including Huate Gas, Anji Technology, and Dinglong Co., which are positioned to benefit from the ongoing industry upgrades and innovations [4]. Market Overview - The Wind New Materials Index closed at 3610.81 points, down 1.18% week-on-week [3][9]. - Among six sub-industries, the semiconductor materials index decreased by 0.3%, while the display device materials index increased by 1.09% [3][9]. - The lithium battery index rose by 2.23%, indicating a positive trend in that segment [3][9]. Recent Industry Highlights - SJ Semiconductor Corporation's IPO guidance has entered the acceptance phase, indicating progress in the capital market [4][27]. - Several Chinese automotive manufacturers are set to achieve 100% localization of chips by 2026, a significant increase from the current target of 25% [4][27]. - Mitsubishi Chemical announced the relocation of its PMMA factory in China to enhance its market share in the PMMA sector [4][28]. - Dingji Technology successfully launched a pilot production line for high-end POE materials, paving the way for future production capacity [4][31].

Investment Rating - The industry rating is "Outperform the Market" [5][63]. Core Viewpoints - The report indicates a dual weakness in domestic supply and demand, with major manufacturers maintaining price stability, leading to a stabilization in antimony prices [5][47]. - The report suggests focusing on companies like Hunan Gold and Huaxi Nonferrous Metals, which are positioned to benefit from the dual drivers of gold and antimony resources [5][56]. Summary by Sections 1. Upstream Antimony Ore - In May 2025, antimony ore imports were 2,322 tons, a decrease of 1,917 tons (-45%) month-on-month, but an increase of 159 tons (+7.3%) year-on-year. Cumulative imports from January to May were 16,092 tons, down 5,201 tons (-24%) year-on-year [3][11]. - The average import price for antimony ore in May was $8,205 per ton, up 39% month-on-month and 69% year-on-year [11]. 2. Midstream Antimony Ingots - Antimony ingot production in May was 6,356 tons, an increase of 4.2% month-on-month but a decrease of 2.2% year-on-year. Cumulative production from January to May was 32,000 tons, up 4% (+1,203 tons) year-on-year [20][23]. - There were no exports of antimony ingots in May, with cumulative exports from January to May totaling 247 tons, down 84% year-on-year [23]. 3. Midstream Antimony Oxide - Antimony oxide production in May was 7,850 tons, a month-on-month increase of 21.3% but a year-on-year decrease of 12.5%. Cumulative production from January to May was 35,000 tons, down 19% year-on-year [4][27]. - Exports in May were 159 tons, a decrease of 798 tons (-83%) month-on-month and 3,087 tons (-95%) year-on-year. Cumulative exports from January to May were 4,564 tons, down 9,504 tons (-68%) year-on-year [29]. 4. Downstream Demand - In May, the production of sodium antimonate was 2,475 tons, up 21% month-on-month but down 21% year-on-year. Cumulative production from January to May was 10,267 tons, down 45% year-on-year [34]. - The production of photovoltaic glass in May was 2.47 million tons, an increase of 7.9% month-on-month but a decrease of 3.2% year-on-year. Cumulative production from January to May was 10.42 million tons, down 9.2% year-on-year [42]. 5. Supply and Prices - As of June 19, 2025, the domestic price of antimony ingots was 202,500 yuan per ton, an increase of 47,000 yuan (+30%) year-on-year. International prices remained above $60,000 per ton [47][50]. - The report notes that some manufacturers are adopting price support strategies, with the price range for 1 antimony ingots maintained between 180,000-200,000 yuan per ton [50].

Investment Rating - The report maintains an "Outperform" rating for the consumer electronics sector [8] Core Insights - The electronic sector index increased by 1.26% during the week, outperforming the Shanghai Composite Index by 1.77 percentage points [2][13] - Semiconductor materials, printed circuit boards, and semiconductor equipment saw significant gains, rising by 7.97%, 6.42%, and 2.99% respectively [2][13] - Meta's collaboration with Oakley to launch AI smart glasses marks a significant expansion in wearable technology, following the success of Ray-Ban Meta smart glasses [4][29] - Honor's Magic V5 smartphone, featuring AI capabilities, aims to enhance user interaction and expand the AI ecosystem [5][92] Summary by Sections 1. Weekly Performance - The electronic sector index rose by 1.26%, outperforming the Shanghai Composite Index by 1.77 percentage points [2][13] - Semiconductor materials led the gains with a 7.97% increase, followed by printed circuit boards at 6.42% and semiconductor equipment at 2.99% [2][13] 2. Consumer Electronics Demand - Global smartphone shipments increased by 1.53% year-on-year in Q1 2025, totaling 305 million units [20] - Global PC shipments grew by 4.98% year-on-year in Q1 2025, reaching 63.2 million units [36] - AI smart glasses shipments surged by 215.79% year-on-year in Q1 2025, driven by strong sales of Ray-Ban Meta smart glasses [69] 3. Industry Dynamics - The PCB sector is experiencing growth, with companies like Shenghong Technology achieving a market value exceeding 100 billion yuan [83] - Meta plans to launch new AI smart glasses in collaboration with luxury brands, targeting active consumers [84][85] - Two semiconductor companies, Hengyun Chang and Shanghai Chao Silicon, have had their IPO applications accepted, indicating strong growth potential in the semiconductor sector [88][89]

Investment Rating - The report maintains an "Outperform" rating for the electronic industry, indicating a positive outlook compared to the broader market [7]. Core Insights - The ASIC market is experiencing strong demand, with Marvell projecting data center capital expenditures to reach $94 billion by 2028, a 25% increase from previous estimates [3]. - Custom computing, including XPU and its accessories, is the largest and fastest-growing segment, with an expected market size of approximately $40 billion and a compound annual growth rate (CAGR) of 47% [3]. - Major cloud providers are accelerating their ASIC chip development, with combined capital expenditures expected to exceed $320 billion by 2025, reflecting a 30% year-on-year growth [4]. - The demand for supporting components such as PCB, CCL, and optical modules is anticipated to see structural growth due to the ASIC chip demand [4]. Summary by Sections Industry Investment Rating - The electronic industry is rated as "Outperform" [7]. ASIC Market Demand - ASIC demand is robust, with Marvell forecasting a 25% increase in data center capital expenditures to $94 billion by 2028 [3]. - The custom computing segment, particularly XPU, is projected to grow at a CAGR of 47%, reaching a market size of $40 billion [3]. Cloud Providers' ASIC Development - Major cloud providers are rapidly advancing their ASIC projects, with significant capital expenditures expected to exceed $320 billion by 2025, marking a 30% increase year-on-year [4]. - Marvell is a key player in providing foundational computing support for major cloud companies [4]. Supporting Components Growth - The demand for components like PCB is expected to grow structurally due to the stringent requirements of ASIC chips [4]. - The global HDI PCB market is projected to exceed $14.34 billion by 2025, achieving an 8.7% year-on-year growth [4]. Investment Recommendations - The report suggests focusing on opportunities within the ASIC chip-related hardware supply chain, including companies like Shenghong Technology, Huitian Technology, and others [5].

Group 1: Investment Highlights - The report highlights a focus on accelerating pharmaceutical innovation, comprehensive layout of integrated circuits, facilitation of rare earth exports, upgrading of manufacturing technology, and boosting inbound consumption, while also paying attention to overseas education cooperation [2][11]. - The capital market shows significant differentiation, with banks and technology hardware leading the gains, while consumer and pharmaceutical sectors are under pressure [2][11]. Group 2: Sector Performance - In the A-share market, the top five performing sectors this week were banks (+3.13%), telecommunications services (+1.41%), hardware equipment (+1.00%), oil and petrochemicals (+0.32%), and semiconductors (+0.20%) [2][23]. - The sectors with the largest declines included household goods (-6.18%), textiles and apparel II (-5.08%), durable consumer goods (-4.84%), pharmaceutical biology (-4.39%), and consumer services (-3.76%) [2][23]. Group 3: Popular Concepts - The top ten gaining concepts this week included circuit boards (+6.62%), lithium battery anodes (+4.73%), oil and gas extraction (+4.49%), central enterprise banks (+4.05%), and digital currency (+3.90%) [3][26]. - The top ten declining concepts included gold and jewelry (-7.41%), medical beauty (-6.44%), pet economy (-6.37%), Xiaohongshu platform (-5.60%), and contract research organizations (CRO) (-5.60%) [3][26]. Group 4: Monthly Performance - For the month, the top ten gaining concepts were optical modules (CPO) (+17.29%), circuit boards (+13.80%), oil and gas extraction (+13.58%), rare earth permanent magnets (+13.55%), and lithium battery anodes (+11.75%) [3][27]. - The top ten declining concepts for the month included high share transfers (-8.78%), animal health selections (-6.34%), and aviation transport selections (-5.45%) [3][27]. Group 5: Policy Updates - The National Medical Products Administration is working on optimizing the clinical trial review and approval process for innovative drugs, aiming to complete reviews within 30 working days for eligible applications [12]. - The Ministry of Commerce is expediting the review of rare earth export license applications to maintain global supply chain stability [14]. - The government is promoting the high-quality development of the integrated circuit industry through various supportive policies [13].

Group 1 - The report highlights a divergence in the Federal Reserve's internal policy views, with an expectation of two rate cuts this year, although the number of officials not anticipating a cut has risen to seven [2][8][10] - The upcoming PCE data is crucial, with market expectations for core PCE to rise to 2.6% from the previous 2.5%, which could influence future rate cut timing [2][8][10] Group 2 - In the U.S. economic data, May industrial production decreased by 0.20%, below both the previous and expected values of 0.10% [3][9] - The initial jobless claims for the week ending June 14 were 245,000, aligning with expectations and lower than the previous 250,000 [3][9] - New housing starts in May were annualized at 1.256 million units, below the previous 1.392 million and the expected 1.357 million [3][9] Group 3 - Global major asset classes showed mixed performance, with CBOT soybean oil rising by 7.49%, while CBOT corn fell by 3.54% [26][42] - The Korean Composite Stock Price Index had the highest gain at 4.40%, while the Hang Seng Index saw the largest decline at 1.52% [29][35] Group 4 - The report notes that the U.S. labor market remains resilient, with multiple indicators suggesting the economy is close to maximum employment levels [10][17] - The report also indicates that the economic growth rate is estimated to be between 1.5% and 2% [10][17] Group 5 - The report tracks significant economic data updates, including a rebound in the Eurozone economic sentiment index and a decline in the UK consumer confidence index [52][62] - Japan's CPI showed a month-on-month decrease, indicating potential deflationary pressures [71][73]

Group 1 - The report emphasizes the establishment of a theme investment database aimed at identifying high-quality price-volume patterns and monitoring the peak rhythm of popular themes and the adjustment levels of leading stocks [2][9]. - The report highlights the quantitative screening of four types of patterns to identify high-odds thematic opportunities and the construction of trading heat indicators to grasp the peak rhythm of popular themes [2][9]. - In the current period, three thematic indices have shown breakthrough patterns in the transportation, computer, and defense industries, while one thematic index from the electronics industry has shown a main rising pattern [12]. Group 2 - The trading heat for the humanoid robot theme has decreased to 52%, with the closing price of Changsheng Bearing being 13.1% below the MA60 level [3][16]. - The trading heat for the Deepseek theme has also declined to 55%, with the closing price of Daily Interaction being 12.4% below the MA60 level [3][16].

Investment Rating - The industry rating is "Outperform the Market" indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 months [80]. Core Insights - Jianghuai Automobile and Huawei have deepened their strategic partnership, focusing on the integration of Huawei's intelligent automotive solutions into Jianghuai's vehicle platforms, enhancing AI applications across various operational scenarios [3][13]. - The first flagship luxury electric sedan, the Zun Jie S800, has commenced mass production, with significant pre-order success, indicating strong market demand [4][15]. - The automotive sector has experienced a decline of 2.6% from June 16 to June 20, 2025, underperforming the CSI 300 index by 2.1 percentage points, although it ranks 4th among 31 sectors year-to-date with a 5.1% increase [16][23]. Summary by Sections Strategic Cooperation - Jianghuai and Huawei signed a strategic cooperation agreement on June 17, 2025, to enhance the application of intelligent automotive solutions, including AI-driven features and clean energy initiatives [3][13]. - The Zun Jie S800 project, a result of this collaboration, has a dedicated team of over 5,000 and a newly built factory equipped with advanced automation technology [4][14]. Market Performance - The automotive sector's performance from June 16 to June 20, 2025, showed a decline of 2.6%, while the CSI 300 index fell by only 0.5%, highlighting the sector's underperformance [16]. - Year-to-date, the automotive sector has increased by 5.1%, ranking 4th among all sectors [16]. Sales Data - From June 1 to June 15, 2025, retail sales of passenger vehicles reached 706,000 units, a 20% increase year-on-year, while wholesale sales were 714,000 units, up 24% year-on-year [6][36]. - New energy vehicle retail sales during the same period were 402,000 units, reflecting a 38% year-on-year growth [6][36]. Production and Delivery Plans - The Zun Jie S800 is set for initial deliveries on June 26, 2025, with plans for mass production to reach 3,000 units per month by September and 4,000 units by year-end [4][15].

Investment Rating - The industry maintains a "stronger than the market" rating [7] Core Views - Precious Metals: The repeated changes in US tariff policies do not alter the long-term allocation value of gold. Recent economic data from the US shows a weakening trend, increasing market concerns about the economic outlook. This weak economic data will provide a basis for the Federal Reserve's future interest rate cuts. According to a survey by the World Gold Council, 76% of 73 global central banks expect to continue increasing their gold holdings over the next five years to diversify away from dollar assets, highlighting the central banks' willingness to purchase gold amid geopolitical factors and declining dollar credit. In the short term, potential risks and uncertainties from "reciprocal tariffs" support market risk aversion, leading to a price increase for gold, which is expected to show an overall pattern of easy rise and difficult fall. In the medium to long term, the core of gold trading remains risk aversion and stagflation trading under the uncertainty of global tariff policies and geopolitical factors, maintaining its long-term allocation value [3][12][13] - Industrial Metals: The supply-demand tightness remains unchanged, making it generally easy to rise and difficult to fall. For copper, the short-term expectation of Federal Reserve interest rate cuts continues, and the tight supply-demand pattern supports copper prices. In the medium to long term, as the Federal Reserve deepens interest rate cuts, it will boost investment and consumption, while opening up domestic monetary policy space. Additionally, the potential inflation rebound from the subsequent wide fiscal policies of the Trump administration will support the upward movement of copper price levels. Strong demand from the new energy sector will further widen the supply-demand gap, continuing to favor copper prices [4][14][15] - New Energy Metals: The extension of the cobalt export ban in the Democratic Republic of Congo may boost cobalt prices. The lithium market faces a dual weakness in supply and demand, with limited support from lithium salt plant repairs and production cuts. In the medium to long term, lithium mines are considered the most quality and elastic targets in the electric vehicle supply chain, suggesting strategic stock layout opportunities. Recommended stocks include Salt Lake Co., Cangge Mining, Yongxing Materials, and Zhongkuang Resources, with elastic attention to Jiangte Electric, Tianqi Lithium, and Ganfeng Lithium [4][19] - Other Minor Metals: The prices of rare earths remain stable. The tightening of spot supply and the slight reduction in the operating rate of separation plants due to cost and raw material supply issues have led to a relatively firm pricing environment. Demand is steadily increasing, with major magnetic material manufacturers continuing to procure, indicating that the demand remains, although the cautious purchasing attitude affects the overall order stability [5][20][23] Summary by Sections Precious Metals - The long-term allocation value of gold remains unchanged despite US tariff policy fluctuations [3][12][13] - Recommended stocks include Zhongjin Gold, Shandong Gold, and Chifeng Gold, with attention to Hunan Gold and Zhaojin Mining [3][12][13] Industrial Metals - The supply-demand tightness continues, supporting copper prices in the short term and medium to long term [4][14][15] - Recommended stocks include Luoyang Molybdenum, Tongling Nonferrous Metals, and West Mining [4][14][15] New Energy Metals - The cobalt export ban extension may lead to price increases [4][19] - Recommended stocks include Salt Lake Co., Cangge Mining, and Yongxing Materials [4][19] Other Minor Metals - Rare earth prices are stable, with demand increasing [5][20][23] - Recommended stocks include Hunan Gold, Huaxi Youshi, and Zhongjin Gold [5][20][23]

Group 1 - The report highlights the recent intensive disclosure period for convertible bond rating adjustments, indicating that if ratings are downgraded, selling pressure on individual bonds may increase. However, after the adjustment period, if the credit quality of bonds not downgraded shows improvement for 2025, it could support a rise in bond prices [2][11] - A convertible bond credit scoring model has been constructed to track changes in credit conditions for Q1 2025, allowing for the observation of marginal optimizations in financial indicators and credit quality across individual bonds and industries [2][12] - The credit scoring model includes six dimensions: scale level, operational capability, profitability, economic conditions, leverage level, and profitability, with scores reflecting the relative strength of fundamentals among sampled entities [3][12] Group 2 - The report identifies the top five industries with weakened credit conditions as coal, light manufacturing, automotive, transportation, and household appliances, while the top five industries with improved credit conditions are agriculture, non-bank financials, oil and petrochemicals, media, and computers [3][12] - Specific examples from the model show that the coal industry has weakened in terms of debt repayment ability, economic conditions, and leverage, while the agriculture sector has shown improvements in economic conditions, profitability, and debt repayment ability [3][12] - The report suggests a credit digging strategy based on the model's results, indicating that bonds priced between 100 to 120 yuan have shown varying credit score changes, with those priced below 100 yuan showing a decline, while those in the 100-105 yuan range have shown significant improvement [3][13] Group 3 - The overall economic stability in China is noted, with limited downside potential in the stock market, likely leading to a structural market fluctuation. The financial and public utility sectors are expected to attract incremental capital due to their stable profitability [4][34] - The report recommends focusing on specific sectors such as AI models and robotics, which are expected to drive the high-end manufacturing industry's growth, and suggests monitoring companies like Lingyi, Dongcai, and Wentai [4][34] - It also highlights that the new energy and automotive parts sectors are anticipated to see a recovery in economic conditions in the second half of the year, recommending attention to companies like Mingli, Huayou, Qilin, and Yiwei [4][34]