Investment Rating - The investment rating for the company is "Accumulate-A" [2] Core Views - The semiconductor display industry is experiencing an upturn, leading to a significant increase in the company's net profit for the first half of 2024, with an expected year-on-year growth of 185% to 213% [1][4] - The company is focusing on high-end mid-size products by investing in the 8.6 generation AMOLED production line, which is expected to start mass production by the end of 2026 [2][4] - The company is also entering the flexible dimming new sector with the establishment of Ruisi Technology, which will produce flexible dimming films and electronic devices [2][4] Summary by Relevant Sections Financial Performance - The company anticipates a net profit of 1.116 billion to 1.316 billion yuan for Q2 2024, representing a year-on-year increase of 128.50% to 169.44% and a quarter-on-quarter increase of 13.46% to 33.78% [1] - For the first half of 2024, the expected net profit is between 2 billion to 2.3 billion yuan, indicating a year-on-year growth of 185% to 213% [1] Market Trends - The demand for large-size LCD panels is expected to increase due to major sporting events and e-commerce promotions, with a notable price increase in TV products observed in March and April 2024 [1] - The penetration rate of AMOLED products is on the rise, with the company maintaining growth in flexible AMOLED shipments [2] Investment Projects - The company announced the investment in the 8.6 generation AMOLED production line to cater to high-end mid-size product demands, particularly in the IT and automotive sectors [2][4] - The flexible dimming technology developed by Ruisi Technology aims to address challenges in automotive applications, enhancing the company's competitive edge in the flexible product market [2][4] Revenue and Profit Forecast - Revenue projections for 2024 to 2026 have been adjusted to 203.378 billion, 227.336 billion, and 247.410 billion yuan, with growth rates of 16.5%, 11.8%, and 8.8% respectively [4] - The net profit forecast for the same period has been revised to 51.31 billion, 90.86 billion, and 110.97 billion yuan, with growth rates of 101.4%, 77.1%, and 22.1% respectively [4]

Summary of Conference Call Industry Overview - The conference call focused on the telecommunications industry, featuring insights from the chief analyst Zhang Wencheng from the research institute [1]. Core Insights and Arguments - The strategy team presented their viewpoints on the telecommunications sector, indicating a comprehensive analysis of current trends and challenges within the industry [1]. Additional Important Content - The call emphasized the importance of understanding the evolving landscape of telecommunications, including technological advancements and regulatory impacts that could influence market dynamics [1].

Investment Rating - The report maintains an investment rating of "Leading the Market" for the industry, indicating an expected investment return exceeding 10% over the next six months compared to the CSI 300 Index [1]. Core Insights - The report highlights the competitive landscape of the summer gaming market in China, with major platforms like Douyin and Kuaishou launching promotional activities to boost game conversion and user engagement [1]. - IAA mini-games are identified as a new growth hotspot in the industry, with Douyin's mini-game user base growing over 150% in 2023, and IAA mini-games accounting for 80% of the mini-game market [1]. - The overall market size for mini-games is projected to reach between 600-650 billion yuan, with significant growth in user engagement metrics such as monthly active users and advertising revenue [1]. Summary by Sections Industry Performance - The report notes that the summer gaming market is highly competitive, with several major titles launching, including domestic AAA console games and new mobile games [1]. - IAA mini-games differ from IAP model games by primarily generating revenue through advertising, reflecting a shift in monetization strategies within the industry [1]. User Growth and Engagement - Douyin's mini-games are expected to drive user growth, with projections indicating that the overall commercial volume of IAA mini-games will exceed 10 billion yuan in 2024 [1]. - The user demographics for mini-games show a balanced gender ratio among young users, with male users having a wider variety of game choices compared to female users [1]. Investment Recommendations - The report suggests that increased gaming-related activities across platforms are likely to enhance the development of a diverse gaming ecosystem, recommending attention to companies such as NetEase, Tencent, and Kuaishou [1].

Investment Rating - The report maintains an investment rating of "Leading the Market" for the industry, indicating an expected investment return exceeding 10% compared to the CSI 300 index over the next six months [1]. Core Viewpoints - The issuance of the seventh batch of domestic game licenses on July 22, 2024, with 105 games approved, reflects a stable and positive policy environment. Major companies like Tencent and miHoYo have new games approved, signaling a robust pipeline for the summer gaming market [1]. - The upcoming ChinaJoy event from July 26 to July 29 is expected to further boost the gaming industry's momentum, showcasing new releases and innovations in gaming technology [1]. - The report emphasizes the continuous release of high-quality games during the summer, which is anticipated to sustain market enthusiasm and growth [1]. Summary by Sections Investment Highlights - The report highlights the stable issuance of game licenses, with 105 domestic games approved in July, including new titles from Tencent and Kingsoft. This trend is expected to continue positively [1]. - The ChinaJoy event is set to gather over 600 well-known companies from 31 countries, showcasing the latest games and technologies, which is likely to enhance industry visibility and engagement [1]. Market Performance - The report notes that the gaming market is heating up with the release of several high-quality games, indicating a positive outlook for the industry in the coming months [1]. - The report suggests that the combination of stable policy support and major industry events will catalyze further growth in the gaming sector [1].

Investment Rating - The report maintains a "Buy-B" rating for the company [2] Core Views - The company is expected to achieve a net profit attributable to shareholders of 1.47-1.62 billion yuan in H1 2024, representing a year-on-year growth of 45%-60% [12] - The company anticipates a stable performance in the domestic market, with overseas contributions expected to drive growth [12] - The company is focusing on expanding its overseas business while solidifying its domestic base, leveraging its production facilities in Germany and Best Formulations [12] Financial Data and Valuation - The company forecasts a net profit of 0.84-0.99 billion yuan for Q2 2024, a year-on-year increase of 16.6%-37.7% [12] - Revenue projections for 2024-2026 have been slightly adjusted, with expected revenues of 43.42 billion yuan, 50.50 billion yuan, and 57.17 billion yuan, reflecting year-on-year growth rates of 21.2%, 16.3%, and 13.2% respectively [12][15] - The net profit forecast for the same period is adjusted to 3.98 billion yuan, 4.99 billion yuan, and 5.95 billion yuan, with year-on-year growth rates of 41.5%, 25.4%, and 19.2% respectively [12][15] Revenue Analysis - The company expects steady growth in the Chinese market driven by major clients and retail business, while the Americas region is anticipated to see an end to inventory destocking [12] - The company is optimistic about revenue growth due to continuous positive orders and the release of new production capacity from the BF factory [12] Profit Analysis - The company’s internal net profit margin may slightly decline due to a high base, but improvements are expected in the BF segment [12] - The company aims to maintain its internal net profit margin through ongoing supply chain management optimization [12] Long-term Outlook - The company is positioned to benefit from downstream scale growth, increased outsourcing ratios, and rising concentration among leading players in the industry [12] - The company has a strong product pipeline and sufficient regulatory approvals, with robust R&D capabilities and customer loyalty expected to enhance its market influence [12]

Investment Rating - The report maintains an investment rating of "Leading the Market" with a target of exceeding the Shanghai and Shenzhen 300 Index by more than 10% over the next six months [2]. Core Viewpoints - The report highlights the significance of cybersecurity in light of a recent global IT failure affecting numerous Windows users, emphasizing the need for domestic applications and localization to accelerate development [1]. - It notes that the recent IT incident has underscored the vulnerabilities associated with over-reliance on a few technology companies, suggesting that this may create opportunities for domestic tech firms [1]. - The report also points out that the Chinese government's recent policy announcements stress the importance of technological security and AI regulation, which could catalyze the development of domestic technology industries [1]. Summary by Sections Investment Highlights - The report discusses a major IT failure on July 19, 2024, which caused widespread disruptions across various sectors globally, but asserts that the impact on China is minimal [1]. - It mentions that the incident has led to increased attention on cybersecurity and maintenance, with a focus on the issues arising from reliance on major software ecosystems [1]. Policy and Regulatory Environment - The report references a key policy document released by the Chinese government that emphasizes the development of a national security protection system and the importance of self-reliance in technology [1]. - It indicates that the government aims to strengthen the role of enterprises in technological innovation and establish mechanisms to nurture leading tech companies [1]. Investment Recommendations - The report suggests that the combination of event-driven catalysts and supportive policies may present opportunities in the supply side of ecological applications [1]. - It recommends focusing on companies such as Tencent, NetEase, Meituan, Bilibili, and others as potential investment opportunities in the context of the evolving landscape [1].

Revenue Trends - In June 2024, the national general public budget revenue decreased by 2.6% year-on-year, with a notable decline in tax revenue expanding by 2.4 percentage points to -8.5%[1] - Non-tax revenue significantly increased, contributing to a 3.9 percentage point rise compared to the previous month[1] - The overall fiscal revenue growth slowed down further in June, dropping 3 percentage points from May to -1.0%[1] Expenditure Insights - General public budget expenditure growth fell sharply by 5.6 percentage points in June to -3.0%, marking the lowest level since early 2022[1] - The main contributors to the negative growth in expenditure were health, education, and cultural sectors[1] - Government fund expenditure also saw a decline, with a year-on-year drop of 11.1% in June, continuing a trend of negative growth since the beginning of the year[1] Land and Property Market - Government fund income fell by 32.4% year-on-year in June, reaching a three-year low, with land transfer income decreasing by 35.3%[1] - The decline in land transfer income reflects a cautious attitude from developers despite recent policy relaxations aimed at boosting the real estate market[1] Debt and Financing - In June, local government debt financing increased significantly by 7.9 percentage points to 38.4%, although the pace of growth slowed compared to May[1] - The issuance of government bonds remained high, with an increase of 848.7 billion yuan year-on-year, but the growth rate has narrowed[1] Policy Implications - The report suggests that significant equipment upgrades and consumer product replacements are crucial for stimulating effective investment and domestic consumption[1] - There is a potential for expanding the general budget deficit in the second half of the year to further promote equipment upgrades and consumer product replacements[1]

Investment Rating - The report maintains a "Market Perform" rating for the food and beverage industry [1] Core Views - The food and beverage sector has seen a significant reduction in fund holdings, returning to levels close to Q2 2017. The market value of food and beverage stocks held by funds decreased to 10.86% of total fund investments, down 3.13 percentage points from Q1 2024, reflecting a 22% quarter-on-quarter decline and a 14% year-on-year decline [1][6][7] - The report highlights that the white liquor sector is undergoing a deep adjustment and slow recovery, influenced by weak consumer demand and cyclical factors. The overall fundamentals of listed companies in the food and beverage sector are weak, leading to reduced holdings [1][6][10] - The report suggests that the valuation of the food and beverage sector is at a historically low level, with the sector's PE ratio at 19.81x, indicating potential investment value [2][6] Summary by Sections Fund Holdings Analysis - The food and beverage industry has experienced a significant reduction in fund holdings, with the current level being the lowest since Q2 2017. The fund's heavy holdings in food and beverage stocks have decreased to 10.86%, down 3.13 percentage points from Q1 2024 [6][10] - The white liquor sector saw a substantial reduction in holdings, with a current fund holding ratio of 9.9%, down 2.63 percentage points from the previous quarter [10][22] - Non-white liquor holdings have also reached a historical low, with a fund holding ratio of 0.96%, reflecting a 0.50 percentage point decrease [11][22] Individual Stock Allocation Analysis - The top ten holdings in the food and beverage sector remain stable, with companies like Guizhou Moutai, Wuliangye, and Luzhou Laojiao consistently featured. The report notes that the positions of these companies have not changed significantly [19][20] - There are few instances of increased allocations, with only a couple of stocks in the white liquor sector seeing slight increases, while most others have decreased [22][25] Hong Kong Stock Connect Allocation Analysis - The report indicates that foreign investment remains optimistic about the food sector, with the top ten holdings in the Hong Kong Stock Connect including companies like Yili and ChaCha Food [28][29] - The report notes a trend of increasing holdings in certain stocks like Three Squirrels and Xianle Health, while reducing positions in others like Dongpeng Beverage [28][29]

Group 1 - The report highlights the recent monetary policy adjustments by the People's Bank of China (PBOC), including a 10 basis points (BP) reduction in the 7-day reverse repo rate to 1.7%, and corresponding reductions in the 1-year and 5-year Loan Prime Rates (LPR) to 3.35% and 3.85% respectively, marking a significant shift in policy approach [1][1][1] - The adjustments aim to optimize the open market operation mechanism and enhance the transmission of monetary policy, reflecting the directives from the recent Third Plenary Session of the 20th Central Committee [1][1][1] - The report indicates that the PBOC is moving towards a more neutral counter-cyclical transmission mechanism, with a focus on steepening the yield curve while addressing the declining credit demand [1][1][1] Group 2 - The report notes that the PBOC's decision to maintain the Medium-term Lending Facility (MLF) rate unchanged while lowering the reverse repo and LPR rates is intended to strengthen the policy rate's attributes and reduce market expectations for unilateral long-term rate cuts [1][1][1] - The introduction of a framework allowing MLF participants to apply for a reduction in collateral requirements aims to increase the supply of long-term government bonds, which is expected to support the steepening of the yield curve [1][1][1] - The report suggests that the current monetary easing measures are more of a passive response to the slowing growth in Q2 rather than a proactive stimulus for high investment growth, indicating a shift in the PBOC's strategy [1][1][1]

风险提示：数据统计口径有所误差，历史经验未来不一定适用，政策超预期变化 3 / 11 图 4: 2024Q2 主板超配比有所下降 主板 -- 创业板 -- 科创板 -- 北交所 30% 20% 10% 0% -10% -20% -30% 旗 下 网 企 医药、电新仓位均有所下降。(1)仓位角度,医药行业和电新行业均处于持仓高位。具体来 看： 首先，医药和电力设备行业均为公募基金持仓商位行业，持仓排名分别位于全行业第２高、 第 3 高。其次，医药行业 2024Q2 仓位为 11.2%，持仓水平处于历史中性位置；电力设备行业仓 位为 10.1%,持仓水平处历史高位。(2)持仓变化趋势角度,医药行业仓位继续回落,电新行业 也继续回落。具体来看:医药行业在 4个季度维持加仓趋势后至 2024Q1 触底大幅回落,仓位下 降 3.4pcts，减仓幅度行业 TOP4; 电力设备行业反弹回落, 当前下降了 0.8pcts。(3)超配比变 化角度,医药和电新行业处于行业超配高位。医药行业当前超配比为 4.62%，为全行业第 3 高, 电力设备行业当前超配比为 4.63%,为全行业第 2 高;趋势上,医药行业超配比下降幅度 0. ...