Investment Rating - The report maintains a "Recommended" rating for the food and beverage industry [1][26]. Core Insights - The report highlights a marginal improvement in sentiment towards the liquor sector, suggesting that the most pessimistic phase for market sentiment may have passed, with limited impact from the current off-season for liquor consumption [5][6]. - The report notes a significant year-on-year increase in retail sales for tobacco and alcohol, with a 11.2% growth in May, attributed to the early release of consumption related to the Dragon Boat Festival [5][12]. - The report emphasizes the potential for policy changes to reverse macroeconomic expectations and enhance both valuation and performance in the food and beverage sector, which is currently undervalued [26]. Summary by Sections Industry Performance - Over the two weeks from June 9 to June 20, 2025, the food and beverage sector declined by 4.49%, underperforming the Shanghai Composite Index by 3.73 percentage points [3][18]. - Among sub-sectors, health products experienced the smallest decline at 2.15%, followed by meat products and dairy at 2.99% and 3.48% respectively [3][18]. Key Companies and Recommendations - The report recommends several key companies within the liquor sector, including Kweichow Moutai, Wuliangye, Luzhou Laojiao, Shanxi Fenjiu, and others [7][26]. - For the consumer goods sector, recommended companies include Bairun, Weidong, Yanjin, and Three Squirrels, among others [26][29]. Market Trends - The report notes that the "618" shopping festival saw a total e-commerce sales of 855.6 billion yuan, a 15.2% increase year-on-year, indicating strong consumer engagement [8][9]. - The report also highlights the performance of specific brands during the festival, with Kuaijishan achieving a 400% year-on-year increase in sales [9]. Valuation Metrics - As of June 20, 2025, the dynamic price-to-earnings ratio for the food and beverage sector stands at 20.33x, indicating a mid-range position among primary industries [22][26]. - The report provides detailed earnings per share (EPS) and price-to-earnings (PE) ratios for key companies, suggesting a favorable investment outlook for several stocks [29].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report The current bond market interest rate has limited downward momentum and is difficult to break through the previous lows. Further long - position opportunities may require a significant decline in certificate of deposit rates or an increase in expectations of interest rate cuts [7][24]. 3. Summary by Related Catalogs 3.1 Formation of Previous Interest Rate Lows - The low point at the beginning of the year was mainly driven by inter - bank deposit rate cuts, the formation of expectations for consecutive reserve requirement ratio and interest rate cuts, and the strengthening of institutional allocation power [7]. - The low point in April was caused by the introduction of reciprocal tariffs on April 2, which greatly exceeded market expectations, leading to a rapid decline in China's bond market interest rates. On April 7, the 10 - year Treasury bond interest rate dropped to 1.63%, close to the low point at the beginning of the year [7]. 3.2 Analysis of Whether Interest Rates Can Break Through Previous Lows - **Fundamentals**: The real - estate performance has a significant impact on the bond market. As of June 21, the commercial housing transaction area in first - tier cities in June was basically the same as last year. The economic fundamentals are running smoothly, with good export and consumption performance. Policy remains stable, and the economy has a bottom - line, but it is difficult to have outstanding performance in the short term, so it is expected to have little impact on the bond market [16]. - **Funding**: Since April, the funding situation has gradually eased, and the bond market interest rates have declined accordingly. Currently, the funding situation remains loose, with DR007 fluctuating between 1.5% - 1.6%. It is expected to run stably in the future, and it is difficult to break through the 1.4% policy rate OMO downward, so the interest rate has limited downward momentum [18]. - **Institutional Allocation Power**: At the end of the quarter, banks tend to sell bonds to realize floating profits to adjust profits. At the same time, the bond market level is relatively low, and the allocation value is not high, so institutional willingness to enter the market to allocate bonds is limited [7][24]. - **Interest Rate Cut Expectations**: From the perspective of bank asset comparison, the current bond market level implies an interest rate cut of about 10BP, and the pricing is relatively reasonable. On May 7, the central bank announced a reserve requirement ratio and interest rate cut, so the short - term expectation of an interest rate cut is not high [25]. 3.3 Summary The formation of the first two lows this year was mainly due to factors such as a significant increase in interest rate cut expectations, an increase in institutional allocation power, and tariff shocks. Currently, the bond market interest rate has limited downward momentum and is difficult to break through the previous lows. Further long - position opportunities may require a significant decline in certificate of deposit rates or an increase in expectations of interest rate cuts [24].

Investment Rating - The report maintains a "Buy" rating for the automotive sector [1] Core Views - The continuation of the "old-for-new" subsidy policy is expected to support automotive consumption, leading to a positive outlook for the automotive sector [7][17] - The completion of 2,500 5C supercharging stations by Li Auto indicates strong infrastructure development, surpassing Tesla's charging network in China [3][13] - The launch of the Li Auto i6, a pure electric SUV, is anticipated in September 2025, showcasing advancements in electric vehicle technology [4][14] Summary by Sections Recent Developments - Li Auto has completed its goal of building 2,500 5C supercharging stations, with the latest located at Shanghai Disneyland, featuring a design of three groups of dual-gun 5C charging piles [3][13] - The i6 model has been officially announced and is set to launch in September 2025, featuring a pure electric architecture and various powertrain options [4][14] - The "old-for-new" subsidy policy will continue, with central funding expected to be distributed in batches, totaling 3 trillion yuan for the year [5][15] Market Performance - The automotive sector underperformed compared to the Shanghai Composite Index, with a weekly decline of 2.6% from June 16 to June 20, 2025 [18] - The performance of individual stocks varied, with Li Auto experiencing a decline of 7.1% during the same period [18][23] Investment Recommendations - The report recommends several companies poised to benefit from the current market conditions, including Li Auto, BYD, and Great Wall Motors, among others [7][17] - It highlights the potential for high-end vehicle manufacturers to gain from the ongoing shift towards premium offerings in the automotive market [7][17]

Group 1: AIDC Industry Insights - The demand for computing power is rapidly increasing, with global AIDC installations expected to grow at a CAGR of 40.4% from 2023 to 2028 [3] - In China, the smart computing power scale is projected to reach a CAGR of 46.2% from 2023 to 2028, with domestic AI chip supply expected to increase to 30% by 2024 [4] - The domestic data center PUE management policies are driving technological upgrades in energy-intensive areas such as cooling and power systems [4] Group 2: Power Supply Systems - The shift towards modular data centers is expected to increase the penetration of high-pressure diesel generators, with domestic supply chains improving and driving price increases [5] - The power distribution systems are evolving towards prefabrication and intelligence, with domestic leaders poised to capture market share due to their extensive project experience [6] Group 3: Cooling Systems - Liquid cooling is becoming a significant trend, with the demand for liquid cooling solutions expected to rise as cabinet power consumption exceeds 20kW [9] - The adoption of high-efficiency energy-saving technologies, such as magnetic levitation compressors, is anticipated to increase rapidly in data centers [9] Group 4: Investment Recommendations - The report suggests focusing on companies in the power supply sector, such as Weichai Heavy Machinery, and in the power distribution sector, including Jinpan Technology and Igor [11] - In the cooling systems sector, companies like Invec and Shunling Environment are recommended due to the shift from air cooling to liquid cooling solutions [11] Group 5: Motorcycle Industry Performance - China's motorcycle exports reached 1.59 million units in May 2025, with a year-on-year growth of 24.8% [30] - The export growth rate for motorcycles over 250cc was particularly strong, with a year-on-year increase of 33.4% [30] Group 6: New Aluminum Era Company Insights - The company has established itself as a specialized manufacturer in battery box systems, with steady growth in revenue and profitability [34] - The company is expected to optimize its revenue structure and explore new growth points in the commercial vehicle sector [35] Group 7: Financial Market Developments - The 2025 Lujiazui Forum highlighted significant financial opening measures, including the establishment of a digital RMB international operation center [14] - The approval of the first two data center REITs in China is expected to create a new asset class and enhance capital flow in the technology sector [15]

Investment Rating - The report maintains a "Recommended" rating for the new materials industry [1]. Core Insights - The new materials sector is positioned as a crucial direction for the chemical industry, currently experiencing rapid growth in downstream demand. With policy support and technological breakthroughs, domestic new materials are expected to accelerate their long-term growth. The report emphasizes that "one generation of materials leads to one generation of industries," highlighting the foundational role of the new materials industry in supporting other sectors [4][14]. Summary by Sections 1. Electronic Information Sector - Focus on semiconductor materials, display materials, and 5G materials. Recent developments include Meta Platforms planning to launch a next-generation AI ASIC chip by Q4 2025, and Huawei applying for a quad-chiplet packaging design patent for its next AI chip [5][21][22]. 2. Aerospace Sector - Key areas of interest include PI films, precision ceramics, and carbon fibers. The report notes the participation of China's new generation stealth fighters at the Paris Air Show, showcasing advancements in military aviation technology [7][8]. 3. New Energy Sector - Emphasis on photovoltaic materials, lithium-ion batteries, proton exchange membranes, and hydrogen storage materials. The report anticipates a significant breakthrough in China's new energy revolution by 2030, driven by hydrogen energy development [9][10]. 4. Biotechnology Sector - Focus on synthetic biology and scientific services. The establishment of a new synthetic biology company by Haizheng Pharmaceutical marks a strategic move into the high-end synthetic biology industry [11][12]. 5. Energy Conservation and Environmental Protection Sector - Attention on adsorbent resins, membrane materials, and biodegradable plastics. The report highlights the development of hazardous waste disposal facilities in Zhejiang Province, indicating a comprehensive approach to waste management [13][14]. 6. Industry Rating and Investment Strategy - The new materials sector is expected to benefit from downstream application sectors, entering a favorable economic cycle. The report maintains a "Recommended" rating for the new materials industry [14].

Investment Rating - The report maintains a "Recommended" rating for the chemical industry [1] Core Views - The geopolitical tensions in the Middle East, particularly the conflict between Israel and Iran, are expected to drive demand for military materials and agricultural products, benefiting companies involved in metals like chromium and agricultural chemicals [4][5] - The supply side is facing potential disruptions due to the conflict affecting oil and gas supplies, which could impact various chemical products [4] - The report highlights the increasing importance of chromium salts, with a shift in demand from metallic chromium to chromium salts, indicating a potential for growth in this segment [5][6] - Phosphate rock supply-demand dynamics are expected to remain tight, with increasing demand from lithium iron phosphate batteries and other fine chemical applications [7] Summary by Sections Recent Trends - The chemical industry has shown varied performance, with basic chemicals down by 2.4% over the last month, while the broader market (CSI 300) is down by 1.3% [3] Price Movements - Key products like methanol and potassium chloride have seen significant price increases, with methanol up by 11.51% to 2785 RMB/ton and potassium chloride up by 2.88% to 3041 RMB/ton [12][13] Company-Specific Insights - Companies like Zhuhai Holdings are expected to benefit from the rising demand for chromium salts, with production capacity and pricing dynamics favoring this segment [6] - Batan Co. is expanding its phosphate rock production capacity, which is projected to enhance its market position amid rising prices for phosphates and sulfur [7] Investment Opportunities - The report identifies several investment opportunities in the chemical sector, including low-cost expansion strategies and companies with strong dividend yields, such as China Petroleum and China National Offshore Oil Corporation [9][10] - The focus on new materials and high-growth sectors, particularly in electronic chemicals and aerospace materials, is highlighted as a key area for potential investment [10] Market Outlook - The chemical industry is expected to enter a replenishment cycle due to anticipated fiscal policy support in China and the U.S., alongside supply constraints in Europe [34]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company is experiencing growth driven by its strategic product categories, with a stable and positive trend that shows certainty [4] - The cotton soft towel maintains its top position on e-commerce platforms, while the sanitary napkin category shows impressive growth [4] - The company's dual-track model of "medical + consumer" is expected to continue to drive volume growth, supported by a strong brand presence and consumer education [4][9] Summary by Relevant Sections Recent Performance - The brand "全棉时代" achieved a GMV growth of 33% year-on-year on Douyin from June 1 to June 15, while "奈丝公主" saw a GMV increase of 204% during the same period [4] - During the JD 618 sales event, categories such as sleepwear and disposable underwear saw double-digit growth, with "全棉时代" ranking 6th in the overall underwear category, achieving over 100% year-on-year growth [3] Product Development - The company launched its first natural cotton core sterilized sanitary napkin on June 16, enhancing safety through multiple protective measures [4] - The cotton soft towel remains the top seller on both Tmall and JD platforms, reinforcing its competitive advantage through a "medical-grade standard + all-cotton material" positioning [4] Financial Projections - Revenue projections for 2025-2027 are estimated at 115.08 billion, 130.80 billion, and 148.47 billion yuan respectively, with net profits expected to be 9.95 billion, 11.70 billion, and 13.51 billion yuan [9][10] - The company is expected to achieve a PE ratio of 24, 20, and 18 times for the years 2025, 2026, and 2027 respectively [9][10] Market Performance - As of June 20, 2025, the company's stock price is 40.87 yuan, with a market capitalization of approximately 23.8 billion yuan [5][10] - The company's performance over the last 12 months shows a significant increase of 57.6%, compared to a 9.8% increase in the CSI 300 index [5]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2]. Core Insights - The report addresses key issues including the company's historical development, governance, main business analysis, market potential for battery box products, and future growth prospects through new clients and business areas [7]. - The company has established itself as a specialized leader in the battery box business, showing steady growth in revenue and profit due to its focus on power battery system-related products [7][10]. - The company has a strong technical foundation and is deeply integrated with BYD, positioning itself well in a market projected to exceed 10 billion yuan, with continuous growth expected [7][36]. - Future revenue structure optimization is anticipated as the company expands into new fields and projects, including a planned acquisition of Honglian Electronics, which is expected to open new growth avenues [7][65]. Summary by Sections Company Overview - The company has focused on the battery box business since its inception, gradually forming a specialized leadership profile [12][13]. - The ownership structure is concentrated, with the actual controller holding approximately 40% of the shares [17][20]. - The management team possesses extensive industry experience, particularly in aluminum processing and battery box production [21][22]. Main Business and Technical Accumulation - The battery box market has reached a scale of over 10 billion yuan since 2021 and is expected to maintain steady growth [36][42]. - The company is positioned as a specialized leading manufacturer, showcasing strong business competitiveness and profitability [36][49]. - The company has established deep ties with BYD, significantly increasing its market share and securing high-end projects [36][61]. Future Outlook - The company is expected to optimize its revenue structure and expand into new areas, leveraging its major clients [65][66]. - The planned acquisition of Honglian Electronics is anticipated to enhance the company's growth potential [65][66]. - The company is actively pursuing new projects with existing clients and expanding its customer base, which is expected to further enhance its revenue structure [70].

Investment Rating - The industry investment rating is "Recommended (Maintain)" [1] Core Views - The report highlights the continuous increase in wind turbine prices and the extension of the ITC subsidy for energy storage in the United States, indicating a positive outlook for the power equipment industry [4][6] Summary by Sections Recent Trends - The power equipment sector has shown a performance of -3.8% over the last month, -11.0% over the last three months, and a positive 9.0% over the last year, compared to the CSI 300 index which has seen -1.3%, -3.2%, and 9.8% respectively [3] Key Events and Insights - In the photovoltaic sector, there is a notable cautious sentiment regarding terminal demand, with a focus on the trend of replacing precious metals and new technological catalysts. The SNEC photovoltaic exhibition held in Shanghai from June 11-13, 2025, is expected to drive inquiries for distributed orders, although actual transaction prices have not increased [4][5] - In the wind power sector, turbine prices have continued to rise, with the average bidding price for new turbine models increasing by 5% to 8% compared to previous bids. The report anticipates a recovery in profitability for main manufacturers starting in the second half of 2025 [4][5] - The energy storage segment is bolstered by favorable policy changes, such as the U.S. Senate's revision of the "Big and Beautiful" bill, extending the ITC phase-out date to 2034, which supports long-term economic viability [6][7] Company Recommendations - The report suggests focusing on companies involved in high-efficiency battery technologies and those benefiting from the rising demand in the wind and energy storage sectors, including names like New Strong Union, Weili Transmission, and Goldwind [4][5][6]

Investment Rating - The report maintains a "Recommended" rating for the motorcycle industry [1] Core Insights - The motorcycle export volume in May 2025 reached 1.59 million units, showing a year-on-year increase of 24.8% [9] - The export of motorcycles with displacement greater than 250cc saw a significant year-on-year growth of 33.4% [9] - Major export regions include Latin America (562,000 units), Africa (489,000 units), and Asia (371,000 units) [15] - The overall export growth rate for motorcycles has consistently exceeded 24% each month from January to May 2025 [17] Summary by Sections Recent Trends - The motorcycle industry has shown a strong performance relative to the Shanghai and Shenzhen 300 index, with a 12-month return of 23.2% compared to 9.8% for the index [4] Export Analysis - In May 2025, motorcycle exports to Africa and Latin America continued to maintain high growth rates, with Africa showing an impressive year-on-year increase of 82.6% [9][15] - The export of motorcycles with displacement less than or equal to 250cc totaled 1.51 million units, reflecting a year-on-year increase of 24.4% [9] Regional Performance - The top export destinations for Chinese motorcycles in May 2025 were Latin America, Africa, and Asia, with respective export volumes of 562,000, 489,000, and 371,000 units [15] - The year-on-year growth rates for exports to various regions were as follows: Latin America (3.0%), Africa (82.6%), Asia (20.3%), and Europe (18.9%) [9][15] Displacement Segmentation - The export of motorcycles with displacement less than or equal to 50cc increased by 8.8%, while those in the 50-100cc range surged by 136.9% [16] - The segment of motorcycles with displacement greater than 250cc has shown robust growth, particularly in the 500-800cc category, which grew by 97.8% [16]