Investment Rating - The industry rating is "Outperform the Market" [7] Core Insights - The report emphasizes the integration of cultural tourism and IP as a new consumption logic, particularly during the summer peak season, and highlights the "Su Chao" theme's impact on the Jiangsu region [2][22] - The report suggests that the demand for trendy toys is resilient due to supportive consumption policies and a shift in consumer psychology, with a notable performance from leading brands like Pop Mart [23] - The jewelry sector is expected to maintain stable consumption levels due to rising gold prices, with a recommendation to focus on brands with high terminal store efficiency and expansion potential [4][70] - The personal care industry is experiencing rapid growth driven by product differentiation and emotional value, with a focus on brands that excel in innovation and channel operations [41] - The medical beauty sector is preparing for a new product launch cycle in Q3, with significant developments in injectable products expected to drive demand [5][36] Summary by Sections 1. Duty-Free and Scenic Areas - The report tracks duty-free shopping data, noting a decrease in Hainan's duty-free shopping decline, and suggests focusing on city duty-free store openings and inbound tourism consumption [13][14] - Scenic area data indicates a slight increase in travel during the Dragon Boat Festival, with a recommendation to focus on key tourist regions during the summer peak [15][22] 2. Trendy Toys - The report highlights the long-term growth potential of the trendy toy sector, driven by emotional consumption and a shift towards product-driven strategies [23] 3. Hotels - Hotel performance data shows a significant increase in RevPAR, ADR, and OCC during the Dragon Boat Festival, with a focus on the growth of supply in lower-tier markets [24][25] 4. Education - The report notes a slight decrease in the number of high school graduates, indicating sustained competition in the education sector, and recommends focusing on vocational training and personalized education [31][34] 5. Medical Beauty and Cosmetics - The medical beauty sector is expected to see strong performance due to new product launches, while the cosmetics sector is benefiting from changing consumer habits and product innovation [35][40] 6. Jewelry - The jewelry sector is experiencing a rebound in sales due to high gold prices, with recommendations to focus on brands with strong store performance and expansion capabilities [65][70] 7. Personal Care - The personal care industry is undergoing innovation and emotional branding, with a focus on brands that can leverage social media and product differentiation [41][42] 8. Human Resources - The employment situation remains stable, with a slight decrease in urban unemployment rates, and the report suggests focusing on flexible employment leaders [46][48] 9. Sports and Events - The report highlights the rising popularity of the "Su Chao" theme, suggesting it as a driver for tourism and sports-related consumption in Jiangsu [53] 10. Dining - The dining sector shows signs of recovery, with an increase in consumer spending during the Dragon Boat Festival, and a positive outlook for the tea beverage industry [54][61]

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 [7][17]. Core Insights - The report highlights that Estun KUKA will officially launch its second-generation humanoid robot product, CODROID 02, on June 11. This new model will feature enhanced flexibility and adaptability in complex scenarios compared to its predecessor [4][6]. - The humanoid robot market in China is projected to reach nearly 38 billion yuan by 2030, with a compound annual growth rate (CAGR) exceeding 61% from 2024 to 2030. Sales of humanoid robots are expected to grow from approximately 4,000 units to 271,200 units during this period [6]. Summary by Sections Estun KUKA's Product Launch - Estun KUKA is set to release the CODROID 02 humanoid robot, which will have full joint movement capabilities and improved performance in complex environments [4][6]. Tashan Technology's Innovations - Tashan Technology has developed the first domestic simulation model based on real capacitive tactile sensors, which will facilitate the integration of tactile information in robotic applications, thereby reducing data collection costs and enhancing robot interaction capabilities [5]. Market Outlook - The report emphasizes the potential for humanoid robots to take over repetitive physical labor, benefiting society as a whole. The CEO of NVIDIA has stated that the era of robots has arrived, and humanoid robots are expected to become as ubiquitous as cars [6].

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 [15]. Core Insights - The completion of the Baoyin High-speed Railway in Inner Mongolia is expected to open by the end of the year, which is a significant part of the national high-speed railway network [4][6]. - The Luo-Ruo Railway's Milan to Luobupo section has entered the track-laying phase, which will facilitate the development of potassium salt resources in the region [5]. - The "14th Five-Year" plan aims for the railway operating mileage to reach 165,000 kilometers by 2025, with a long-term goal of 200,000 kilometers by 2035, creating vast market opportunities for the rail transit equipment industry [6]. Summary by Sections Industry Development - The Baoyin High-speed Railway spans 519 kilometers, with the Inner Mongolia section covering 402 kilometers and designed for a speed of 250 km/h [4]. - The Luo-Ruo Railway, with a total length of 297.73 kilometers and a design speed of 120 km/h, will connect key regions and support resource development [5]. Market Opportunities - The ambitious railway network expansion plan indicates that approximately 35,000 kilometers of railway, including 20,000 kilometers of high-speed rail, need to be constructed from 2026 to 2035, averaging 3,500 kilometers of new railway lines annually [6]. - This expansion is expected to create significant market space for rail transit equipment manufacturers [6]. Recommended Companies - China CNR Corporation: A leading global supplier of rail transit equipment, maintaining a strong industry position [6]. - China Railway Signal & Communication Corp: A top provider of rail transit control systems [6]. - Times Electric: A leading supplier of traction and conversion systems, consistently leading the domestic market [6]. - Sifang Automation: A key supplier in the field of high-speed rail comprehensive monitoring [6]. - Shenzhou High-speed Railway: A leading enterprise in intelligent operation and maintenance equipment for rail transit [6]. - Huizhou Technology: Provides integrated solutions for rail transit operation and maintenance [6].

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 [14]. Core Insights - The successful handover of the last process system of the Zhangzhou Nuclear Power Unit 2 marks a significant milestone, laying a solid foundation for subsequent fuel loading, grid connection, and commercial operation [4]. - The U.S. Department of Energy has approved the preliminary safety design report for Westinghouse's eVinci micro-reactor, making Westinghouse the first developer to receive such approval, which is crucial for the demonstration of the eVinci design [5]. - Nuclear power is recognized as a key player in promoting green energy transition due to its clean, safe, and efficient characteristics, with annual utilization hours exceeding 7000 hours, the highest among all power sources [6]. Company Summaries - **Jia Dian Co., Ltd.**: The main helium fan is the only power device in the primary loop of the fourth-generation high-temperature gas-cooled reactor, and its subsidiary has leading products in the nuclear power business [6]. - **Guoguang Electric**: The company's filter and cladding systems are critical components of the ITER project [6]. - **Lanshi Heavy Industry**: Covers upstream nuclear fuel systems, midstream nuclear power plant equipment, and downstream spent fuel processing [6]. - **Kexin Electromechanical**: Has manufactured high-temperature gas-cooled reactor products and achieved import substitution for new fuel transport containers [6]. - **Hailu Heavy Industry**: Services include third and fourth-generation reactors as well as thermonuclear fusion reactors (ITER) [6]. - **Jiangsu Shentong**: Secured over 90% of orders for nuclear-grade butterfly valves and nuclear-grade ball valves for new nuclear power projects in China [6]. - **Xianheng International**: The company's products are applied in the operation and maintenance of nuclear energy and nuclear power [6].

Trade Performance - In May, exports increased by 4.8% year-on-year, a decrease of 3.3 percentage points from April's growth rate[2] - The trade surplus for May expanded to $103.22 billion due to a deeper decline in imports[2] - Imports fell by 3.4% year-on-year, with a significant drop in crude oil imports by 22.1%[4] U.S.-China Trade Relations - Despite a temporary suspension of tariff increases, China's exports to the U.S. fell sharply by 34.5%, a decline of 13.5 percentage points from April[3] - The primary method for China's continued export activity is through offshore collaborative supply chains, particularly with ASEAN countries[3] - Exports to the EU and the UK improved, rising by 3.8% and 13.1% respectively[3] Sector Analysis - Mid-range consumer goods continued to decline due to previous production slowdowns, contributing negatively to export growth[4] - The semiconductor and electronics sectors showed resilience, with a contribution to exports increasing by 0.6 percentage points[4] - The automotive sector experienced a resurgence in exports, with a contribution increase of 0.7 percentage points[4] Future Outlook - The second quarter is expected to maintain high export growth rates, but uncertainties loom for the second half of the year[5] - The U.S. government's new tax legislation indicates a continued intent to shift advanced supply chains back to the U.S.[5] - Risks include potential global trade policy uncertainties that could lead to lower-than-expected export growth[5]

Inflation Data - April CPI year-on-year decline remained at -0.1% for the third consecutive month, while core CPI slightly increased by 0.1 percentage points to 0.6%[2] - May food CPI decreased by 0.2% month-on-month, with a year-on-year decline deepening to -0.4%[3] - Core CPI rose 0.1 percentage points to 0.6% in May, driven by stable growth in service prices[4] PPI Trends - May PPI year-on-year decline deepened by 0.6 percentage points to -3.3%, marking the lowest level since August 2023[2] - PPI was significantly affected by falling prices in the coal and oil sectors, with oil and gas extraction prices dropping 5.6% month-on-month[4] - The coal and metallurgy industry prices also fell, influenced by seasonal demand and adverse weather conditions affecting construction projects[4] Consumer Behavior - Service CPI increased by 0.2 percentage points to 0.5% in May, supported by rising accommodation and travel prices during the May Day holiday[4] - Durable goods consumption is showing diminishing returns from fiscal subsidies, with transportation tools' prices narrowing their year-on-year decline to -3.4%[4] - The real estate market remains in a bottoming phase, with rental prices stable at -0.1% year-on-year and a slight month-on-month decline of 0.1%[4] Economic Outlook - The overall inflation data suggests a weak domestic consumption and investment demand, with limited potential for growth in the near term[5] - The necessity for larger-scale consumer subsidies has decreased, but export pressures are expected to rise post the 90-day tariff relief period[5] - A prediction of a potential 10 basis points rate cut in June remains, aimed at stabilizing the real estate market[5]

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - Amidst minor fluctuations in the domestic macro - economy and uncertainties in external trade, local governments are actively constructing a full - scale industrial chain system. Based on the construction progress of this system, different investment strategies for local government urban investment platforms and industrial investment platform bonds are proposed [1][2]. - For industrial bonds, attention can be paid to 2 - 3 - year industrial bonds with good liquidity and 1 - year - or - less industrial bonds in specific industries. For long - term bonds, appropriate duration extension can be considered for certain industries. The issuance of inter - bank science and technology innovation bonds by private enterprises has a significant demonstration effect [3][66]. - In the financial bond market, most financial product yields declined this week, and credit spreads mostly widened. For Tier 2 and perpetual bonds, different investment suggestions are given according to different maturities and credit ratings [4][71]. 3. Summary by Relevant Catalogs 3.1 From Another Perspective on Local Economy 3.1.1 Local Governments Actively Build a Full - Scale Industrial Chain System to Stimulate Innovation and Long - Term Development - Local governments are constructing a full - scale industrial chain system including national key laboratories, R & D incubators, etc., aiming to promote local economic development and move local industrial chains towards the high - end of the global value chain [10]. - In May 2025, China's economic indicators showed positive trends. The manufacturing PMI improved, and the decline in manufacturing exports slowed down. The service industry PMI also increased, but the comprehensive PMI output index was affected by the manufacturing industry [11][12]. - China's foreign trade negotiations with the US, Europe, and South Asian countries have made new progress, which is conducive to stabilizing the external trade environment and ensuring the stability of the import and export industrial chain [16][17]. 3.1.2 Investment Suggestions - **First Type**: Regions that have basically completed the full - scale industrial chain system construction. Their local governments have strong economic strength and anti - risk ability. Long - duration bonds issued by local urban investment platforms, industrial investment platforms, and state - owned enterprises can be mainly considered, such as Shanghai, Suzhou, Guangzhou, and Shenzhen [2][39]. - **Second Type**: Regions with "national/ provincial advanced manufacturing industrial clusters" and "international logistics hub centers/ commodity resource allocation hubs", which are currently building other chain links. Medium - to - long - term bonds can be appropriately considered, such as Foshan, Guangdong [2][39]. - **Third Type**: Regions that have completed the layout of one or two chain links due to special resource endowments. Their economic strength needs further observation, and short - duration bonds can be appropriately considered, such as Huaihua High - tech Zone [2][43]. 3.2 Weekly Views on Industrial and Financial Bonds 3.2.1 Industrial Bonds - Pay attention to 2 - 3 - year industrial bonds with good liquidity in industries such as industrial investment, public utilities, transportation, state - owned real estate, and cultural tourism. For 1 - year - or - less industrial bonds, focus on industries like local refineries and steel [66]. - For long - term bonds, appropriate duration extension can be considered for coal, transportation, public utilities, and industrial investment bonds. Private enterprises such as Luxshare Precision, Muyuan Foods, Geely Holding, and Shandong Hongqiao have announced the issuance of inter - bank science and technology innovation bonds, with a significant demonstration effect [3][67]. - In the steel industry, pay attention to bonds of Shandong Iron and Steel and HBIS Group within two years. Steel enterprises need to control production rhythm and implement production - limiting policies [67]. 3.2.2 Financial Bonds - This week, most financial product yields declined, and credit spreads mostly widened. The credit spreads of Tier 2 and perpetual bonds and securities firms' short - term financing narrowed, while the credit spread of non - perpetual sub - bonds of insurance companies widened the most [4][71]. - For Tier 2 and perpetual bonds, currently, the valuation of 2 - 3Y AAA - and AA+ Tier 2 and perpetual bonds is at a historical percentile of 12% - 16% in the past year, with reduced cost - effectiveness. Different investment suggestions are given according to different maturities and credit ratings [71]. 3.3 Primary Market Tracking The report provides charts on the issuance, net financing, subscription, and registration of credit bonds, financial bonds, urban investment bonds, and industrial bonds this week, but specific numerical analyses are not elaborated in the text [78][80][82]. 3.4 Secondary Market Observation 3.4.1 Volume of Secondary Transactions The report presents charts on the trading volume and number of credit bonds, urban investment bonds, and industrial bonds in the secondary market, but specific numerical analyses are not elaborated in the text [92][95]. 3.4.2 Price of Secondary Transactions No relevant content provided.

Investment Rating - The industry rating is "Outperform the Market" [6][67] Core Views - The report highlights that the downward trend in cement and glass prices continues, while urban renewal initiatives are actively promoted. The Ministry of Housing and Urban-Rural Development reported that 5,679 old urban residential areas were newly started for renovation from January to April, with over 50% opening rates in six regions [2][11] - Central government financial support for urban renewal is expected to exceed 20 billion yuan, with various local governments implementing measures to stimulate real estate market demand [2][11] - Short-term factors include the emphasis on stabilizing the real estate market amid growth pressures and the gradual alleviation of risks associated with major real estate companies, which is beneficial for the building materials sector [2][11] - Long-term factors suggest that the opening of the interest rate reduction channel in Europe and the US may provide more room for monetary and fiscal policies in China, with expectations for policies to stabilize real estate transactions and prices [2][11] Summary by Sections Recent High-Frequency Data - As of June 6, 2025, the average price of bulk P.O 42.5 cement in China is 372.6 yuan/ton, down 0.6% week-on-week and down 4.6% year-on-year [3][12] - The average factory price of glass (5.00mm) is 1,205.7 yuan/ton, down 2.0% week-on-week and down 27.3% year-on-year [3][20] Investment Recommendations - The report suggests focusing on three main lines for investment: 1. High-quality companies benefiting from stock renovation, such as Weixing New Materials, Beixin Building Materials, and Tubao [4] 2. Undervalued stocks with long-term alpha attributes, such as Sankeshu, Dongfang Yuhong, and Jianlang Hardware [4] 3. Leading cyclical building materials companies with bottoming fundamentals, such as Huaxin Cement, Conch Cement, China Jushi, and Qibin Group [4] Market Performance - The Shanghai Composite Index rose by 1.13%, and the Shenzhen Composite Index rose by 1.82%. The building materials index increased by 0.63% [3][55] - Sub-sectors showed varied performance, with fiberglass manufacturing up by 2.08% and cement manufacturing down by 0.97% [3][55]

Investment Rating - The industry rating is "Outperform the Market" [8][16] Core Viewpoints - The automotive sector is focusing on luxury vehicles and unmanned logistics, with a recommendation to pay attention to leading companies such as BYD, Geely, and Xiaomi for overall vehicle production, and to Seres and Li Auto for luxury vehicles [3][4] - The robotaxi segment has experienced significant adjustments, primarily influenced by trading factors rather than fundamental issues, with a focus on the upcoming operational effects of Tesla's robotaxi on June 12 [4][5] - The low-altitude economy is highlighted, particularly the unmanned aerial vehicle (UAV) sector, which is expected to shift from being part of unmanned logistics to an independent market leader if relevant policies are implemented in June [6] Summary by Sections Automotive Sector - The report emphasizes the ongoing pressure in the domestic market and the increasing competition, suggesting a focus on leading automotive companies and luxury vehicle manufacturers [4][3] - Key companies to watch include BYD, Geely, Xiaomi, Seres, and Li Auto [4] Robotaxi and Robotics - The report notes a significant adjustment in the robotaxi market, with a focus on the upcoming Tesla robotaxi operations and the potential for new market trends [4][5] - Recommendations include focusing on large-cap stocks related to Tesla and companies with strong industrial logic and future potential [5] Low-altitude Economy - The report suggests that the UAV sector is poised for growth, particularly if low-altitude policies are enacted, with a focus on companies like Zongheng and Green Energy Hui充 [6]

Group 1 - The S&P 500 index has returned above 6000 points for the first time since February, indicating a significant recovery in market risk appetite [8][9] - The overall performance of major global asset classes was mixed, with NYMEX platinum (+11.64%) showing the largest increase, while the Japanese yen against the RMB saw the largest decline (-1.05%) [30][41] - The U.S. non-farm payrolls for May increased by 139,000, slightly above the expected 130,000, while the unemployment rate remained at 4.2%, aligning with market expectations [8][9] Group 2 - The global equity markets exhibited varied performance, with the Korean Composite Stock Price Index rising by 4.24%, while the Nikkei 225 saw a decline of 0.59% [33][45] - In the U.S. equity market, the communication services sector experienced the highest gain at +2.96%, while the consumer discretionary sector faced the largest drop at -0.85% [40] - The major commodities market showed mixed results, with NYMEX platinum leading the gains, while CBOT corn recorded the largest decline at -0.34% [47][49] Group 3 - The report highlights the importance of upcoming economic data, particularly the June CPI data, which could influence interest rate expectations and further impact technology stocks [8][9] - The Federal Reserve's internal discussions reflect a cautious dovish tone, with officials indicating the possibility of rate cuts later in the year [9][10] - The report tracks significant economic indicators, including the ISM manufacturing PMI for May at 48.5, which is below both the previous value and market expectations [8][9]