Investment Rating - The industry investment rating is "Leading the Market," indicating an expected performance that exceeds the relevant market index by over 10% in the next 6-12 months [5]. Core Insights - The recent approval of 112 domestic online games by the National Press and Publication Administration, including 58 mobile games and 46 mobile-casual puzzle games, signals a new product cycle for various companies in the industry [2]. - The overall game market is experiencing steady growth, with the market size reaching 29.083 billion yuan in October 2024, reflecting a year-on-year increase of 14.4% [2]. - The growth in the game market is primarily driven by new game releases, with significant revenue contributions from various game genres, including MOBA, shooting, strategy, and card games [2]. Summary by Sections Game Approval and Market Dynamics - In November, multiple companies received game approvals, contributing to a diverse product lineup that supports market growth [2]. - A total of 1184 domestic and 97 imported online games have been approved in 2024, compared to 1075 domestic games approved in the entire year of 2023 [2]. Market Performance and Trends - The mobile game segment is showing stable growth, with the revenue from top genres increasing, indicating a diversification trend away from traditional role-playing games [2]. - Monthly active users for WeChat mini-games exceeded 570 million in Q3 2024, with significant fluctuations observed during holiday periods [2]. Company Performance - Tencent's gaming revenue reached 51.8 billion yuan in Q3 2024, marking a year-on-year increase of 12.6%, driven by strong performances from established titles like "Honor of Kings" and "Peacekeeper Elite" [2]. - Net income from NetEase's gaming and related services was 20.9 billion yuan, with a quarter-on-quarter increase of 4.0% [2]. - Bilibili's gaming revenue surged by 84% year-on-year to 1.82 billion yuan, showcasing the potential for long-term operational games [2]. Investment Recommendations - The report suggests maintaining a focus on leading companies such as Tencent, NetEase, Bilibili, and others, as their strong performance is expected to enhance industry sentiment [2].

下 下 = | --- | --- | |----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------| | 2024 年 11 月 22 日 \n重视特朗普关税主张的中长期影响 \n华金宏观·双循环周报（第 83 期） | 宏观类●证券研究报告 \n定期报告 \n分析师 秦泰 SAC 执业证书编号： S0910523080002 | | 投资要点 | 报告联系人 qintai@huajinsc.cn 周欣然 | | 11 月 22 日，商务部联合外交部、工信部、人民银行、海关总署相关司局负责人， | zhouxinran@huajinsc.cn | | 联合召开政策吹风会，凸显出对未来一段时间促外贸稳增长问题的重视，这与美国 | | | 候任总统特朗普较为激进的关税主张直接相关。商务部指出"最终关税是由 ...

Investment Rating - The investment rating for the company is "Buy" (initial coverage) with a stock price of 34.49 yuan as of November 21, 2024 [2]. Core Views - The company's automotive electronics business is stable, and its digital energy business is opening a second growth curve. The company has been deeply engaged in the automotive aftermarket since its establishment in 2004, focusing on technological innovation to create a comprehensive product matrix for automotive diagnostics and related software services. This positions the company well to benefit from the increasing electronic and intelligent features in vehicles [9][10]. Summary by Sections Automotive Electronics Business - The company has achieved revenue of 1.18 billion yuan, 1.56 billion yuan, 2.22 billion yuan, 2.13 billion yuan, and 2.65 billion yuan from 2019 to 2023, with year-on-year growth rates of 32.59%, 32.37%, 42.41%, -4.07%, and 24.15% respectively. The gross profit margins for these years were 62.58%, 64.22%, 58.30%, 58.87%, and 59.95%, indicating a stable upward trend [9]. Digital Energy Business - The company began strategic layout in overseas new energy charging business in 2021. It has developed a comprehensive product matrix covering intelligent charging network solutions and energy management solutions. The company has signed contracts with several large enterprises in North America and Europe, indicating strong market expansion [10][13]. Financial Forecast - The company is projected to achieve revenues of 3.96 billion yuan, 5.06 billion yuan, and 6.53 billion yuan from 2024 to 2026, with corresponding net profits of 583 million yuan, 766 million yuan, and 893 million yuan. The price-to-earnings ratios are expected to be 26.7, 20.4, and 17.5 respectively [14][19]. Market Positioning - The company has completed its global customer and production capacity layout in the digital energy sector, which is expected to contribute significantly to its growth in the coming years. The market for electric vehicle charging infrastructure is projected to grow substantially, with the U.S. needing 28 million charging ports by 2030 [13][14]. Comparison with Peers - The company's price-to-earnings ratio is lower than that of comparable companies in the charging pile sector, suggesting a favorable valuation relative to its peers. This, combined with the stable development of its traditional business and the opening of a second growth curve in digital energy, supports the "Buy" recommendation [20].

Investment Rating - The investment rating for the company is "Buy," indicating an expected relative increase of over 15% in the next 6-12 months compared to the relevant market index [60]. Core Viewpoints - The company, Boyuan Co., Ltd. (301617.SZ), specializes in the research, production, and sales of fine chemicals, including organic iodides, inorganic iodides, precious metal catalysts, luminescent materials, and hexamethyldisilazane. The company has shown significant revenue growth from 524 million CNY in 2021 to 1.025 billion CNY in 2023, with a year-on-year growth rate of 28.39% in 2023 [16][17]. - The company has a strong market position, with a 72.32% market share in organic iodide trimethyl iodide and 35.02% in inorganic iodides as of 2021. The company is also involved in resource recycling, which helps reduce dependence on imported raw materials [47][54]. - The company plans to extend its product line downstream through its IPO fundraising projects, which include the production of iodine-containing contrast agent intermediates and high-end organic iodine materials [48][49]. Summary by Sections Basic Financial Status - The company achieved revenues of 524 million CNY, 798 million CNY, and 1.025 billion CNY in 2021, 2022, and 2023, respectively, with year-on-year growth rates of 38.20%, 52.27%, and 28.39%. The net profit attributable to the parent company was 103 million CNY, 176 million CNY, and 182 million CNY for the same years, with growth rates of 61.30%, 70.70%, and 3.28% [17][7]. Industry Situation - The fine chemical industry is a significant development direction in the chemical sector, with China's fine chemical industry output expected to exceed 11 trillion CNY by 2027. The company operates in a sector where the market for inorganic iodides is projected to grow at a compound annual growth rate of 8.80% from 2021 to 2028 [28][37]. Company Highlights - The company's core technical team has over 30 years of experience in the fine chemical field, with significant ownership by the founders, holding 79.77% of the shares. The company is one of the few in China to achieve resource recycling for iodine and precious metals, establishing strong partnerships with major pharmaceutical companies [46][47]. Fundraising Project Investment - The company plans to invest in two main projects through its IPO, including the production of 1,000 tons of contrast agent intermediates and 5,000 tons of phenol derivatives, with expected annual revenues of approximately 32 million CNY from the contrast agent project [49][52]. Peer Comparison - In 2023, the company reported revenues of 1.025 billion CNY, with a net profit of 182 million CNY. Compared to peers, the company’s revenue is below the average of 1.799 billion CNY, but its gross margin of 27.89% is in the mid-high range among competitors [54][55].

Investment Rating - The industry investment rating is "Leading the Market" (maintained) [2][7]. Core Viewpoints - The report highlights the acceleration of offshore wind power projects, with significant bidding activities taking place, indicating a robust growth trajectory for the sector. The total installed capacity of offshore wind power in China is expected to exceed 45GW this year, with projections reaching 200GW by 2030, showcasing vast development potential [2][2]. - The report emphasizes the importance of recent government policies and funding support in promoting deep-sea offshore wind power development, which is anticipated to contribute significantly to capacity additions in the coming years [2][2]. Summary by Relevant Sections Industry Performance - From January to September 2024, the newly installed offshore wind power capacity in China reached 2.47GW, representing a year-on-year increase of 72.73%. Cumulatively, the installed capacity reached 39.10GW, up 22.61% year-on-year [2][2]. Key Projects and Developments - The report mentions the commencement of bidding for several key offshore wind projects, including the Qingzhou Seven Seas project with a planned capacity of 1000MW and the Fujian province's competitive allocation of 2.4GW of offshore wind projects [2][2]. - The report also notes that the deep-sea offshore wind power projects are expected to enhance their economic viability, with costs projected to decrease significantly by 2050 [2][2]. Investment Opportunities - The report suggests that the current opening of the offshore wind construction window presents a favorable investment environment, with high growth rates and technological barriers in the sector. It recommends focusing on companies involved in offshore wind power, such as Dongfang Cable and Qifan Cable, as potential investment opportunities [2][2].

Investment Rating - The industry investment rating is "Leading the Market (Maintain)" [2] Core Viewpoints - The report highlights that nearly 70% of Fortune 500 companies are currently using Microsoft 365 Copilot, indicating a significant adoption of AI tools in enterprise settings [2] - The introduction of AI capabilities in various applications is expected to enhance user engagement and expand user bases, with a focus on both PC and mobile platforms [2] - The report suggests that the integration of AI in business processes is transforming user experiences and driving revenue growth, as evidenced by a 17% year-on-year increase in revenue for a major office software provider [2] Summary by Relevant Sections Investment Highlights - Microsoft showcased updates to its cloud and AI services at the Ignite conference, allowing companies to choose from 1,800 large language models [2] - The report notes that AI applications are being commercialized across various sectors, with significant growth in user engagement metrics [2] Market Performance - The report indicates a year-on-year revenue increase of 17% for a leading office software provider, with active user numbers also showing growth [2] - The deployment of AI across different platforms is expected to facilitate user base expansion and improve interaction capabilities [2] Analyst Recommendations - The report recommends focusing on companies involved in AI-related applications and hardware, such as BlueFocus, Tom Cat, and others, as they are likely to benefit from the growing adoption of AI technologies [2]

Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for the stock over the next 6-12 months [2][6][17]. Core Insights - The company achieved a record high revenue of 517 million yuan in Q3 2024, representing a year-on-year increase of 86.59% and a quarter-on-quarter increase of 6.32% [2][6]. - The growth in revenue is attributed to robust demand in the automotive electronics sector, improved conditions in the consumer electronics market, and a recovery in demand from clients in the industrial automation and digital power sectors [2][6]. - The company reported a net loss attributable to shareholders of 142 million yuan in Q3 2024, with a gross margin of 32.06%, down 4.39 percentage points year-on-year [2][6]. - The company has over 2,100 product models available for sale, with the expected unit value of mass-produced products exceeding 800 yuan by the end of 2024 [2][6]. Financial Performance and Forecast - Revenue projections for 2024-2026 are 1.881 billion yuan, 2.589 billion yuan, and 3.137 billion yuan, with growth rates of 43.5%, 37.6%, and 21.2% respectively [6][10]. - The net profit attributable to shareholders is forecasted to be -290 million yuan in 2024, 27 million yuan in 2025, and 127 million yuan in 2026, with growth rates of 4.9%, 109.3%, and 374.4% respectively [6][10]. - The gross margin is expected to improve from 33.2% in 2024 to 39.6% in 2026 [7][10]. Business Segments - **Sensors**: Revenue from sensor products is projected to be 182 million yuan in 2024, with a growth rate of 10% [10][11]. - **Signal Chain**: Revenue from signal chain products is expected to reach 970 million yuan in 2024, with a growth rate of 37.5% [11][12]. - **Power Management**: Revenue from power management products is forecasted to be 717 million yuan in 2024, with a growth rate of 67.5% [12][13]. Competitive Positioning - The company is recognized as one of the early mass producers of digital isolation chips in China, with a comprehensive range of isolation devices and core technologies across five major fields [17][19]. - The report compares the company with peers such as Shengbang Co., Sirepu, and Aiwei Electronics, highlighting its competitive advantages in product diversity and technological capabilities [17][19].

Industry Investment Rating - The investment rating for the consumer electronics industry is "Synchronized with the Market" (Maintained) [2] Core Views - Pico 4 Ultra's BOM cost for the 12+256G version is approximately $430.64, with domestic supply chain accounting for about 60% of the value [2] - The core hardware costs (SOC, screen, optics, camera, RAM/ROM) account for 73.22% of the total BOM cost, totaling $330 [2] - Qualcomm, as the supplier for SOC, WiFi chips, audio chips, and power management chips, accounts for 29.23% of the total value, with a significant increase in value compared to Pico 4 due to the high cost of the XR2 Gen 2 chip [2] - Domestic suppliers account for 60.08% of the total value, while overseas suppliers account for 39.92%, with US suppliers contributing 36.59% [2] - VR sales are expected to return to growth in 2024, with Pico 4 Ultra contributing to a slight quarter-on-quarter increase in the Chinese VR market [2] - Global VR sales in Q3 2024 were 1.18 million units, a 5% year-on-year decline, primarily due to declines in Sony PS VR2 and Quest 2 sales [2] - Meta's sales remained stable at 850,000 units in Q3 2024, while Apple's Vision Pro sales were 60,000 units, showing a gradual decline [2] - China's VR sales in Q3 2024 were 100,000 units, stable year-on-year, with a slight quarter-on-quarter increase due to the launch of Pico 4 Ultra [2] - Global VR sales are expected to reach 7.74 million units in 2024, a 3% increase from 2023, with Meta expected to sell 6 million units, Apple Vision Pro adjusted to 400,000 units, and Sony expected to sell 500,000 units through promotional activities [2] Key Components and Costs - The motherboard, including XR2, RAM, ROM, power management chips, Bluetooth chips, WiFi chips, Codec, RF chips, and PCB, costs $173.7 [7] - The sensor module, including cameras, IMU, electronic compass, distance sensor, and PCB, costs $53.4 [7] - The optical module, including pancake optics, Fast-LCD screens, and pupil distance adjustment modules, costs $138 [7] - The headset shell/structure, including plastic shell, foam, and internal precision structures, costs $9 [7] - The cooling module, including cooling fans and heat sinks, costs $3.5 [7] - The controllers, including two controllers and four AA batteries, cost $30.04 [7] - The acoustic module, including two speakers and a microphone, costs $10 [7] - The battery, including the rechargeable battery and power cable, costs $7 [7] - Accessories, including charging cables, cost $3 [7] - Packaging, including the box and manual, costs $3 [7] - The total BOM cost is $430.64, with ODM/OEM costs adding $20, bringing the total hardware cost to $450.64 [7] Supply Chain and Market Dynamics - Key players in the XR supply chain include Qualcomm, JDI, Goertek, Micron, and domestic suppliers, with domestic suppliers contributing 60.08% of the total value [2][7] - The VR market is expected to stabilize and grow slightly in 2024, driven by new product launches such as Pico 4 Ultra and Quest 3S [2] - Meta's Quest 3 is expected to be the main driver of sales in 2024, with Apple's Vision Pro and Sony's PS VR2 also contributing to the market dynamics [2]

Revenue and Expenditure Trends - In October, general public budget revenue reached 2.19 trillion, with a year-on-year increase of 5.5%, marking a 3.0 percentage point rise[2] - Tax revenue, particularly from value-added tax and consumption tax, significantly improved, contributing 3.8 and 2.4 percentage points to the revenue growth respectively[2] - General public budget expenditure rose by 10.4% year-on-year, an increase of 5.2 percentage points, continuing to outpace revenue growth for the second consecutive month[2] Government Fund Budget Insights - Government fund budget revenue saw a year-on-year decline of 10.0%, with land transfer revenue dropping by 10.5%, although the decline rate improved by 8.3 percentage points[2] - Government fund budget expenditure surged by 47.9%, a 13.7 percentage point increase, reaching the highest level since April 2022[2] - The acceleration in expenditure is outpacing infrastructure investment, indicating a shift towards debt replacement strategies[2] Debt Management and Infrastructure Investment - By the end of October, 98% of new local government special bonds had been issued, highlighting a focus on resolving local government debt risks[2] - The newly approved 6 trillion in debt replacement is expected to be issued rapidly, with 2 trillion planned for November and December[2] - The net increase in infrastructure investment will depend on the quality of debt replacement and the ability to meet project profitability requirements[2] Economic Policy Outlook - The focus for 2025 will be on improving domestic demand through both consumption and investment, emphasizing sustainable debt and exchange rate management[2] - Risks include potential lower-than-expected fiscal spending, which could hinder the recovery of consumer spending[2]

Investment Rating - The industry investment rating is "in line with the market" [2][17]. Core Viewpoints - The demand for smart wearable devices is increasing, and the rise of generative AI models is pushing AI audio glasses into a broader market. In the short term, the user profile for AR glasses is unclear, while smart audio glasses are positioned to replace headphones, enhancing user experience through AI [3]. - Looktech has introduced innovative designs for AI smart glasses, featuring lightweight materials and advanced functionalities such as a 13-megapixel camera and AI assistant Memo, which offers various services including real-time translation and health management [2][7]. - Baidu's AI glasses, weighing 45 grams, boast a 56-hour battery life and advanced voice interaction capabilities, integrating with Baidu's map services for enhanced user experience [2][12]. - Rokid Glasses, in collaboration with Alibaba, are designed to provide a stylish and functional experience, featuring a dual-camera system and high brightness display [2][13]. Summary by Relevant Sections Market Overview - The report highlights the growing recognition of brands in the eyewear market, with Bolon, Helen Keller, and Ray-Ban being the top three brands. Bolon has the highest brand recognition, exceeding 60% [3]. Product Innovations - Looktech's AI smart glasses weigh only 37 grams and include features such as a 2K video recording capability and a personal AI assistant [2][7]. - Baidu's AI glasses are equipped with a 16-megapixel camera and offer a range of AI functionalities, including real-time Q&A and scene-based music recommendations [2][12]. Investment Opportunities - The report suggests focusing on companies involved in the supply chain for these products, including optical manufacturers and assembly firms, such as GoerTek and O-film [3].