Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical industry [7] Core Insights - The report highlights that the Chinese innovative drug sector is poised to capitalize on the patent cliff faced by multinational corporations (MNCs), with a potential market space exceeding $240 billion due to the expiration of patents on 31 major drugs by 2037 [5][18] - It emphasizes that China has the largest number of innovative drug pipelines globally, particularly in cell therapy, ADCs, and bispecific antibodies, which positions it as a key player in the global market [5][32] - The report suggests that the ongoing trend of licensing out Chinese innovations to MNCs could lead to significant profit opportunities, estimating a net profit of approximately $8.2 billion from authorized projects between 2020 and 2025, translating to a potential market capitalization increase of $81.7 billion [5][46][47] Summary by Sections Market Review - The report notes that the CITIC Pharmaceutical Index rose by 1.2% during the week of June 3-6, 2025, outperforming the CSI 300 Index by 0.3 percentage points [4][48] - The pharmaceutical sector has shown a year-to-date increase of 8.3%, surpassing the CSI 300 Index by 9.9 percentage points [4][48] MNC Patent Cliff - The report identifies that 27 drugs with projected sales exceeding $4 billion in 2024 will face patent expiration by 2037, leading to a potential loss of approximately $244.3 billion for MNCs [18][19] - Specific drugs mentioned include Merck's Keytruda and Pfizer's Eliquis, which are expected to face significant sales declines post-patent expiration [19][20] Supply and Demand Dynamics - China leads globally in the number of innovative drug pipelines, particularly in cell therapy and ADCs, with 58% of these drugs currently in clinical phase I trials [32][33] - The report indicates that Chinese companies are involved in 716 research tracks, ranking first in development progress [32][33] Transaction Trends - The report highlights a significant increase in global pharmaceutical transactions, with the number of deals rising from 358 in 2015 to 743 in 2024, and total transaction value increasing from $56.9 billion to $187.4 billion [36][39] - Chinese companies accounted for 30% of global transaction value in 2024, with a total of $57.1 billion in deals [39][40] Investment Recommendations - The report suggests focusing on companies with strong overseas clinical progress and those with potential for significant licensing deals, including Innovent Biologics, Eddingpharm, and others [5][6] - It also recommends monitoring companies that have received approval for commercialization, such as BeiGene and Kingsoft Biopharma [5][6]

Investment Rating - The industry rating is "Outperform the Market" [4] Core Views - The report highlights that pig prices have dropped below 14 yuan per kilogram, with a current average price of 13.97 yuan per kilogram as of June 8, reflecting a week-on-week decrease of 0.51 yuan per kilogram [13][34] - The report indicates a significant increase in pig slaughtering post-Duanwu Festival, with daily average slaughtering volume dropping to 145,800 heads, a week-on-week decrease of 2.21% [16][34] - The average weight of pigs being sold has decreased to 129.17 kg, with a slight week-on-week decline of 0.01 kg [23][34] - The report anticipates increased supply pressure in the short term, with a projected rise in daily average slaughtering rates for June [34] - In the medium term, the report suggests that high-quality pig companies may achieve unexpected profits through increased sales and reduced costs, despite a downward trend in the pig cycle expected by 2025 [34] Summary by Sections Pig Farming - The report notes accelerated pig slaughtering and a drop in prices, with the average price falling to 13.91 yuan per kilogram [13][34] - Post-holiday consumption has declined, leading to reduced slaughtering volumes [16][34] - The average weight of pigs sold has decreased, indicating a weakening sentiment among farmers regarding weight gain [23][34] - The report suggests monitoring the industry's weight reduction situation as inventory levels begin to decrease [34] Poultry Sector - The white chicken market has seen a price adjustment, with the average price at 7.32 yuan per kilogram, down 0.05 yuan week-on-week [36][40] - The report highlights the impact of ongoing avian influenza outbreaks on supply, with potential benefits for domestic chicken prices due to import interruptions from Brazil and the U.S. [40] - The egg-laying chicken sector is experiencing high prices for chicks, with the average price at 4.10 yuan per chick, remaining stable week-on-week [40] Seed Industry & Agricultural Products - The report discusses the strengthening of seed industry regulations, which aims to ensure the safety of agricultural production [50] - It notes that soybean meal prices are under pressure, with a current price of 2,940 yuan per ton, reflecting a week-on-week decrease of 16 yuan [51] - The report emphasizes the importance of the soybean import situation, particularly in light of U.S.-China trade relations, which could affect future pricing [51]

Investment Rating - The report maintains an "Outperform" rating for the industry [6] Core Insights - The lithium battery sector is highlighted by the recent research achievements of CATL, which published findings on lithium metal batteries in the journal Nature, indicating advancements in battery technology [10] - The photovoltaic sector is experiencing a decline in domestic module production, with expectations of production falling below 45GW in June, driven by weak terminal demand [18] - The offshore wind sector is poised for performance realization in Q2 2025, with significant project progress in China and the UK [26] - The energy storage sector has seen a historic low in the average price of 2-hour storage systems, with the National Energy Administration initiating trials for new power systems [32] - The power equipment sector is advancing with the establishment of the first flexible direct current converter station in Guangzhou, indicating accelerated construction of major energy projects [40] Summary by Sections 1. Lithium Battery and Electric Vehicle Sector - CATL's lithium metal battery research has achieved a cycle life of 483 cycles, doubling that of previous products, with energy density potential exceeding 500Wh/kg [10] - Solid-state battery equipment was showcased at the 2025 European Battery Exhibition, indicating a shift towards advanced battery technologies [11] 2. Photovoltaic Sector - Domestic module production is expected to decline, with a focus on the upcoming SNEC exhibition for new product releases [18] - The supply chain for silicon wafers, battery cells, and auxiliary materials is adjusting downward due to reduced production [19] - The price dynamics of photovoltaic components are mixed, with some prices decreasing due to weak demand [20] 3. Wind Power Sector - Significant progress in offshore wind projects in China, with major installations expected to contribute to Q2 2025 performance [26] - The UK is set to launch its seventh round of Contracts for Difference (CfD) for offshore wind, with over 8.5GW of projects qualifying [27] 4. Energy Storage Sector - The total scale of energy storage bidding reached 6.57GW/20.2GWh in May, with the average price of 2-hour storage systems dropping to 0.55 yuan/Wh [32] - The National Energy Administration's new power system trials are expected to accelerate the development of virtual power plants and collaborative energy solutions [34] 5. Power Equipment Sector - The establishment of Guangzhou's first flexible direct current converter station marks a significant step in the construction of the "藏粤直流" project [40] - The results of the first joint procurement of 10kV transformers in North China were announced, with a total bid amount of 262 million yuan [41] 6. Industrial Control and Robotics Sector - ABB's acquisition of Bel Products signifies strategic expansion in the electrical enclosure market [49] - The domestic company SimiTech secured a 36 million yuan order for RV reducers, indicating growth in high-end component manufacturing [50] 7. Hydrogen Energy Sector - China's hydrogen energy development is transitioning into a new phase, with the Sichuan province releasing a long-term development plan [55] - Jiangsu Yancheng has proposed an orderly development of green fuels, with 12 new hydrogen companies established in May 2025 [56]

Group 1 - The report emphasizes the establishment of a thematic investment database aimed at identifying high-potential opportunities and warning against market peaks, focusing on quantitative screening of four patterns and monitoring trading heat indicators [3][10]. - In the TMT sector, various themes have shown promising patterns, with 1 bottoming pattern in the power equipment industry, 15 breakout patterns primarily in the computer sector, 20 main rising patterns including 6 in telecommunications, 4 in electronics, and 3 in non-ferrous metals, and 2 acceleration patterns in telecommunications and electronics [12][10]. Group 2 - The trading heat for the humanoid robot theme has decreased to 60%, with the leading stock Changsheng Bearing's closing price being 12.1% below its 60-day moving average (MA60). Conversely, the Deepseek theme's trading heat has increased to 62%, with the leading stock Daily Interaction's closing price being 5% below its MA60 [4][16].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% against the market benchmark within the next six months [20]. Core Insights - The company has announced a strategic partnership with Tencent Video to launch new products based on popular domestic animation IPs, enhancing product value through a combination of strong IP and functionality [3][4]. - The collaboration aims to tap into the growing demand for domestic cultural products among the youth, with a significant portion of the target demographic expressing interest in purchasing products that incorporate national elements [5]. - The company is expected to see steady growth in net profit, with projections of CNY 1.55 billion, CNY 1.74 billion, and CNY 1.96 billion for the years 2025, 2026, and 2027 respectively, reflecting growth rates of 11.3%, 11.9%, and 12.8% [6]. Company Strategy - The company is focusing on an IP-driven strategy, having previously collaborated with various domestic and international IPs, and aims to leverage this partnership to enhance its product offerings across multiple categories [5]. - The retail segment, particularly through its brand "Jiumu Zawush", is expected to see an increase in the proportion of IP-related products, with membership surpassing 10 million [5]. - The company is actively engaging with new consumer trends, particularly in the context of the back-to-school season, which is anticipated to drive sales of its new IP-based products [5]. Financial Projections - Revenue forecasts for the company are set at CNY 26.69 billion, CNY 29.82 billion, and CNY 33.21 billion for the years 2025, 2026, and 2027, with growth rates of 10%, 12%, and 11% respectively [7]. - The projected earnings per share (EPS) for the same period are CNY 1.69, CNY 1.89, and CNY 2.13, indicating a positive trend in profitability [7].

Investment Rating - The industry rating is "Outperform the Market" [5][79]. Core Viewpoints - The report maintains a bullish outlook on the military industry, emphasizing strong demand recovery expected by 2025, driven by multiple catalysts including the "14th Five-Year Plan" and "Centenary Goals of the Army" [4][45]. - The military sector is expected to see significant growth in both domestic and foreign demand, with a strong recommendation for investment in three main lines: domestic trade, foreign trade, and self-sufficiency [4][46]. Summary by Sections 1. Market Review - The military index (801740) increased by 0.41% from June 3 to June 6, while the CSI 300 index rose by 0.88%, resulting in an underperformance of -0.47 percentage points [11][16]. - Since the beginning of 2025, the military index has risen by 2.31%, outperforming the CSI 300 index, which has decreased by 1.55%, leading to a relative outperformance of 3.85 percentage points [18]. 2. Key Investment Opportunities - Domestic Trade: - Land Equipment: Companies such as Tianqin Equipment, Bai'ao Intelligent, and Gaode Infrared are highlighted [4][46]. - Components & Aerospace: Companies like Huojue Electronics and Chengdu Huamei are recommended [4][46]. - Information Technology Upgrade: Companies such as Xinjinggang and Sichuan Aerospace are noted [4][46]. - Foreign Trade: Companies like Guangdong Hongda and Aerospace Rainbow are suggested [9][46]. - Self-Sufficiency: - Commercial Engines: Companies like Hangyu Technology and Tunan Co. are mentioned [10][46]. - Commercial Aircraft: Companies such as Xiling Power and Aerospace Huanyu are included [10][46]. - Nuclear Fusion: Companies like Guoguang Electric and Lianchuang Optoelectronics are noted [10][46]. 3. Funding and Valuation - Passive fund inflows into military ETFs increased, with a net inflow of 1.518 billion yuan during the week, indicating a positive trend in funding [29][35]. - As of June 6, the military sector's price-to-earnings ratio (TTM) stands at 65.49, with a percentile rank of 89.8%, suggesting high investment value at this time [4][46].

行 华福证券 基础化工 2025 年 06 月 08 日 业 研 究 基础化工 新材料周报：美国将对华 301 关税豁免期延长 3 个月，巴斯夫出售涂料业务 投资要点： 行 业 定 期 报 告 本周行情回顾。本周，Wind 新材料指数收报 3629.26 点，环比上涨 1.98%。 其中，涨幅前五的有润阳科技(15.45%)、奥克股份(14.84%)、浙江众成(10.86%)、 联瑞新材(10.51%)、博迁新材(8.45%)；跌幅前五的有飞凯材料(-7.47%)、长鸿 高科(-6.05%)、瑞联新材(-5%)、彤程新材(-3.38%)、合盛硅业(-3.21%)。六个子 行业中，申万三级行业半导体材料指数收报 5968.97 点，环比下跌 0.92%；申 万三级行业显示器件材料指数收报 1042.43 点，环比上涨 0.26%；中信三级行 业有机硅材料指数收报 5685.35 点，环比下跌 1.88%；中信三级行业碳纤维指 数收报 1169.32 点，环比下跌 0.7%；中信三级行业锂电指数收报 1692.24 点， 环比上涨 1.33%；Wind 概念可降解塑料指数收报 1879.28 点，环比上涨 2.0 ...

Group 1 - The report highlights a significant potential market for vitiligo treatments in China, estimating the market could exceed 20 billion yuan, driven by over 22 million patients suffering from the condition [3][48][49] - The current treatment landscape for vitiligo is limited, with existing therapies having various shortcomings, and there is an urgent need for effective, targeted medications [20][15][14] - The report identifies two key companies, Kangzheng Pharmaceutical and Tianen Pharmaceutical, as leaders in the development of innovative treatments for vitiligo, with promising clinical data expected soon [3][28][44] Group 2 - Kangzheng Pharmaceutical's ruxolitinib cream has shown strong clinical efficacy, with a 24-week F-VASI75 response rate of 50% in real-world studies, indicating its potential for significant market impact [36][31][32] - Tianen Pharmaceutical's CKBA ointment is in phase II clinical trials, with data expected in Q3 2025, showcasing a novel mechanism that effectively inhibits immune responses associated with vitiligo [44][47] - The report emphasizes the low competition in the domestic vitiligo drug development space, suggesting a favorable environment for new entrants to capture market share [27][48]

Investment Rating - The report maintains an "Outperform" rating for the industry [6] Core Insights - The National Energy Administration has initiated the first batch of pilot projects for the construction of a new power system, focusing on seven key directions to enhance the integration and consumption capacity of renewable energy [3][19][20] - Zhejiang Province has released a demand-side management plan for summer peak electricity demand in 2025, aiming to reduce peak load by over 1GW through various measures including time-of-use pricing and encouraging user-side energy storage participation [4][27][28] Summary by Sections Market Review - From June 3 to June 6, the gas and water sectors increased by 1.15% and 0.64% respectively, while the environmental and power sectors decreased by 0.07% and 0.60%, with the Shanghai and Shenzhen 300 Index rising by 0.88% during the same period [12][10] Industry Perspectives - The pilot projects for the new power system will explore new technologies and models, addressing bottlenecks in renewable energy development and enhancing the reliability of power supply [3][19][20] - The pilot focuses on seven areas: grid-structured technology, system-friendly renewable power plants, smart microgrids, collaboration between computing power and electricity, virtual power plants, large-scale high-proportion renewable energy delivery, and new-generation coal power [19][20][24] Investment Recommendations - The report recommends specific companies within various sectors: - For thermal power: Jiangsu Guoxin is recommended, while Sheneng Co. and Zhejiang Energy Power are given cautious recommendations [4] - For nuclear power: China National Nuclear Power and China General Nuclear Power are cautiously recommended [4] - For hydropower: Changjiang Power is recommended, with cautious recommendations for Huaneng Hydropower and Qianyuan Power [4] - For green energy: Attention is suggested for Three Gorges Energy and Jiangsu New Energy, with cautious recommendations for Longyuan Power and Zhejiang New Energy [4] - For environmental protection: Yongxing Co., Huaguang Huaneng, and Xuedilong are recommended, with cautious recommendations for United Water and attention for Fuzhi Environmental Protection and Dayu Water Saving [4]

Investment Rating - The report maintains an "Outperform" rating for the industry [5] Core Insights - The report highlights the expected acceleration in the new tobacco sector for British American Tobacco in the second half of 2025, driven by strong performance in oral tobacco products and the phased launch of new products [2][6] - The 618 shopping festival is anticipated to boost domestic brands in personal care and outdoor sports, with significant growth potential for companies like Morning Glory and others leveraging IP strategies [2][6] Summary by Sections Home Furnishing - The home furnishing sector is expected to gradually recover as consumer confidence improves, with many companies currently valued at historical lows. Key players to watch include custom furniture leaders like Oppein and Sophia [6][10] Paper and Packaging - As of June 6, 2025, prices for various paper products remain stable, with white cardboard prices increasing slightly. The report suggests a cautious outlook due to overall weak terminal demand [6][54] - The paper industry saw a 1.6% year-on-year decline in revenue from January to April 2025, but fixed asset investment increased by 7.6% during the same period [66][68] Light Industry Consumption - The report notes that domestic brands in personal care are rapidly expanding their market presence, particularly through platforms like Douyin. Companies such as Dekang and Baiya are highlighted for their growth potential [6][8] Export Chain - The report indicates a robust outlook for export-oriented companies, with shipping costs rising due to increased demand for goods from China. Companies like Zhongxin and Zhejiang Nature are recommended for investment [6][8] New Tobacco - British American Tobacco's new tobacco segment is projected to see significant growth in the latter half of 2025, with a full-year growth expectation of mid-single digits, driven by strong performance in oral tobacco and the introduction of new products [6][8] Textile and Apparel - The textile and apparel sector has shown resilience, with notable sales increases during the 618 shopping festival. Brands like Anta and Li Ning are recommended for their strong performance [6][10]