Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 12.00 per share, based on a 25x PE for 2024 [4][12]. Core Insights - The company reported a revenue of RMB 1.93 billion in 2023, representing a year-on-year growth of 320.8%, recovering to 73.8% of the same period in 2019. However, the net loss attributable to shareholders was RMB 110 million, a decline of 130.2% year-on-year [3][10]. - For Q1 2024, the company achieved a revenue of RMB 560 million, up 138.7% year-on-year, with a net profit attributable to shareholders of RMB 250 million, reflecting a growth of 317.3% year-on-year [3][10]. Financial Performance Summary - In 2023, the company experienced a significant increase in operating cash flow, reaching RMB 1.42 billion, up 327.4% year-on-year. The diluted EPS for 2023 was -RMB 0.04 [3][10]. - The period expense ratio decreased by 76.6 percentage points in 2023, indicating improved operational efficiency. The sales expense ratio decreased to 4.6%, while the general and administrative expense ratio dropped to 7.6% [3][11]. - The company plans to continue developing new projects, with the Guangdong 'Eternal Love' project opening in February 2024 and the Three Gorges 'Eternal Love' project expected to open in summer 2024 [12]

Investment Rating - The report initiates coverage with an OUTPERFORM rating for the company, projecting a target price of RMB 21.6 based on a 24x PE for 2024 [14]. Core Insights - The company is a global leader in clean energy operations, maintaining its position as the world's largest wind power operator since 2015. As of the end of 2023, it had a controlled installed capacity of 35.59 million kilowatts, with wind, thermal, and solar power capacities at 27.75 million, 1.88 million, and 5.96 million kilowatts respectively [11][12]. - In 2023, the company generated 76.2 billion kilowatt-hours, representing a year-on-year increase of 7.92%. However, its revenue decreased by 5.6% to RMB 37.64 billion, while net profit attributable to shareholders rose by 22.3% to RMB 6.25 billion [11][12]. - The company has a rich project reserve and is expected to accelerate self-built installations, with plans to start 10GW of new energy projects in 2024 [12][13]. Summary by Sections Financial Performance - The company reported a revenue of RMB 37.64 billion in 2023, down 5.6% year-on-year, while net profit was RMB 6.25 billion, up 22.3% [11][12]. - Impairment provisions for 2023 were approximately RMB 2.1 billion, including RMB 1.2 billion for fixed assets and RMB 640 million for intangible assets [11][12]. Project Development - From 2021 to 2023, the company acquired 59.5GW of new development indicators, ensuring ample project reserves [12]. - The company received RMB 6.42 billion in national subsidies in 2023, which is expected to support its new energy installation targets [12]. Business Integration - The company is undergoing asset restructuring to integrate wind power assets and thermal power businesses, with over 20GW of wind power assets planned for injection [13]. - The thermal power assets are estimated to contribute a net profit of approximately RMB 180 million in 2023, indicating stable operations [13]. Earnings Forecast - The projected EPS for 2024, 2025, and 2026 is RMB 0.90, RMB 1.03, and RMB 1.19 respectively, with an expected average PE of 14 times for comparable companies [14].

Group 1: Natural Gas Market Updates - As of May 6, 2024, China's LNG import price is $10.81 per million British thermal units, up 8.44% from the previous week[43] - The market price for LNG in China is 4,270.30 yuan per million British thermal units, reflecting a 2.01% increase from the prior week[43] - The increase in LNG market price is influenced by rising auction prices for raw gas at Northwest liquid plants, although demand has weakened due to the May Day holiday[43] Group 2: Electricity Market Updates - Guangdong, Hubei, and Shanghai's electricity purchase prices are 0.517, 0.450, and 0.479 yuan per kWh respectively, with month-on-month changes of +0.6%, -1.3%, and -8.6%[53] - The peak-valley price difference in Guangdong's Pearl River Delta is the highest in the country at 1.3610 yuan per kWh[53] - New time-of-use pricing policies are being implemented in Hubei, Jiangxi, and Qinghai provinces starting in May 2024[53] Group 3: Renewable Energy Market Updates - In Q1 2024, China's newly installed photovoltaic capacity reached 45.74 GW, a year-on-year increase of 35.9%[38] - Wind power installations in China for the first three months of 2024 totaled 15.5 GW, nearly a 49% increase year-on-year[38] - The U.S. EPA has launched a "Solar for All" initiative aimed at installing solar systems in low-income and disadvantaged communities[38] Group 4: Storage and Lithium Battery Market Updates - The average price for two-hour storage systems increased by 21.7% in April 2024[56] - The total scale of storage in April reached 5.05 GW/15.9 GWh, up from 3.91 GW/10.64 GWh in March[56] - The average price for battery-grade lithium carbonate remains stable at 120,500 yuan per ton, while lithium hydroxide is at 100,400 yuan per ton[56]

Investment Rating - The report does not explicitly state an investment rating for the real estate industry [30]. Core Insights - New home sales in 30 major cities reached 1.91 million square meters in week 18 of 2024, reflecting a slight week-on-week decrease of 0.26% but a year-on-year increase of 9% [30]. - Tier-1 cities sold 580,000 square meters, down 6% week-on-week but up 24% year-on-year. Tier-2 cities sold 940,000 square meters, up 1% week-on-week and 10% year-on-year. Tier-3 cities sold 380,000 square meters, up 5% week-on-week but down 8% year-on-year [30]. - During the Labor Day holiday (May 1-5, 2024), new home transactions in 30 cities totaled 301,200 square meters, a 60.72% decrease year-on-year [33]. Summary by Sections New Home Transactions - In week 18 of 2024, new home sales in 30 major cities were 1.91 million square meters, with a 9% increase year-on-year [30]. - From May 1-2, 2024, new home transactions totaled 180,000 square meters, a 65% decrease from the previous month but a 50% increase year-on-year [30]. Secondary Housing Transactions - Secondary housing transactions in 18 cities amounted to 1.45 million square meters in week 18 of 2024, a 26% decrease week-on-week but an 87% increase year-on-year [31]. - From May 1-2, 2024, secondary housing transactions totaled 20,000 square meters, a 97% decrease from the previous month but a 109% increase year-on-year [31]. Land Supply and Sales - In week 18 of 2024, 100 cities offered 16.83 million square meters of land, with 12.51 million square meters sold, resulting in a supply-to-demand ratio of 1.35 [32]. - Year-to-date, land supply in these cities was 267.68 million square meters, down 15% year-on-year, with sales volume at 240.87 million square meters, a 13.3% decrease year-on-year [32]. Labor Day Holiday Data - During the Labor Day holiday, new home transactions in 30 cities were 301,200 square meters, a 60.72% decrease year-on-year, with tier-1 cities accounting for 102,300 square meters, down 52.50% year-on-year [33].

Investment Rating - The machinery equipment sector has a cumulative excess return of +0.29 percentage points for the week ending May 5, 2024, ranking 14th among all sectors, while year-to-date, the sector's cumulative excess return is -8.87% [6][40]. Core Insights - The April PMI stands at 50.4%, indicating two consecutive months in the expansion zone, with production and new orders indices at 52.9% and 51.1%, respectively, reflecting ongoing recovery in manufacturing [40][41]. - A solid-state battery and energy storage system project by First New Energy has been signed in Guangdong with a total investment of RMB 2 billion, aiming for an annual output value exceeding RMB 1.44 billion and a tax contribution of RMB 72 million [40][41]. - Zoomlion has released a new distributed drive electro-hydraulic control technology that reduces energy loss and noise, increasing cycle life by over 40% [41]. - The humanoid robot platform "Tiāngōng" has been unveiled, featuring high computational power and precision sensors, suitable for intelligent applications and research [41]. - Air Liquide reported a net profit growth of 11.6% year-on-year in 2023, with slight fluctuations in industrial gas prices [41]. Summary by Sections Sector Performance - In the 19th week of 2024, the machinery equipment sector outperformed the Shanghai Composite Index with a weekly excess return of +0.29 percentage points, ranking 14th among all sectors [6][40]. Macro Data - The PMI for April is 50.4%, indicating continued recovery in manufacturing, with production and new orders indices at 52.9% and 51.1%, respectively [40][41]. Lithium Battery Equipment - First New Energy's project in Guangdong involves a total investment of RMB 2 billion, targeting an annual output value of over RMB 1.44 billion and a tax contribution of RMB 72 million [40][41]. Construction Machinery - Zoomlion's new technology reduces energy loss and noise, with a cycle life increase of over 40% [41]. Humanoid Robots - The "Tiāngōng" platform features high computational power and precision sensors, making it ideal for intelligent applications and research [41]. Industrial Gas - Air Liquide's net profit grew by 11.6% year-on-year in 2023, with slight fluctuations in industrial gas prices [41]. Recommended Targets - Suggested companies to watch include Hangzhou Oxygen Plant Group, Yantai Jereh Oilfield, and Sany Heavy Industry among others [41].

Investment Rating - The report maintains an "Outperform" rating for Beijing-Shanghai High Speed Railway [3][15]. Core Views - In 2023, the company recorded a revenue of Rmb40.683 billion, a significant increase of 110.40% year-on-year, and a net profit of Rmb11.546 billion, marking a turnaround from losses in 2022. In Q1 2024, revenue reached Rmb10.106 billion, up 13.06% year-on-year, with a net profit of Rmb2.963 billion, an increase of 33.11% [6][7][15]. - The company is expected to benefit from the marketization of ticket prices and the continuous improvement of the high-speed rail network, which will contribute to revenue growth. The forecasted EPS for 2024-2026 is Rmb0.27, Rmb0.29, and Rmb0.30 respectively, with a target price of Rmb5.87 based on a 22x PE ratio for 2024E [7][15]. Financial Performance Summary - In 2023, the company achieved a gross margin of 45.8%, which is expected to improve to 47.6% in 2024 and stabilize at 48.2% in the following years. The net profit margin for 2023 was 28.4% [6][14]. - The company plans to distribute 50% of its profits as dividends over the next three years, provided there are no significant investment plans or cash expenditures [7][14]. - The report highlights a significant increase in passenger volume, with the company transporting 53.25 million passengers in 2023, a growth of 209.1% year-on-year, outperforming the industry average [7][15]. Revenue and Profit Forecast - The projected revenue for 2024 is Rmb44.886 billion, with a growth rate of 10.33%, followed by Rmb48.665 billion in 2025 and Rmb50.984 billion in 2026 [10][14]. - The net profit forecast for 2024 is Rmb13.099 billion, with expected growth rates of 13% in 2024, 8% in 2025, and 4% in 2026 [10][14].

Investment Rating - The report does not explicitly state an investment rating for the computer industry but suggests potential targets for May, indicating a positive outlook for specific companies [9]. Core Insights - The CITIC Computer Index decreased by 3.03% from 4793 to 4648 points as of April 30, 2024, while the Shanghai Composite Index increased by 2.09% [9]. - Beijing's "Computational Power Infrastructure Construction Plan (2024-2027)" emphasizes the importance of domestic computational power and aims to enhance the development of foundational AI models in China [9]. - SenseTime's SenseNova 5.0 model has been upgraded to match the performance of GPT-4 Turbo, showcasing significant advancements in AI capabilities [9]. - Institutional holdings in the computer industry fell to 3.0% in Q1 2024, indicating a more diversified investment landscape with a focus on AI, cloud computing, and software services [9]. Summary by Relevant Sections Industry Overview - The report highlights a significant drop in the CITIC Computer Index, contrasting with gains in other major indices, indicating a challenging environment for the computer sector [9]. - The focus on domestic computational power through Beijing's new plan is expected to drive growth in the AI sector, particularly in foundational models [9]. Company Highlights - **SenseTime**: The release of SenseNova 5.0 positions the company as a leader in AI, with capabilities that are competitive on a global scale [9]. - **Digital China, Inspur Information, Hangzhou Hikvision, Kingsoft Office Software, Xgd Inc, Thinker Automatic Equipment, Jiangsu Hoperun Software, and SenseTime** are identified as potential investment targets for May, reflecting optimism in their growth prospects [9]. Market Trends - The report notes a decrease in institutional holdings, suggesting a shift towards a more diversified investment strategy within the computer industry, particularly in AI and cloud computing sectors [9].

Investment Rating - The report assigns an "Outperform" rating to several companies in the petroleum and petrochemical sector, including China National Offshore Oil Corporation (CNOOC), PetroChina, Sinopec, Hengli Petrochemical, and others [2][3][4][5][6][7][8]. Core Viewpoints - Since 2024, the spreads of chemicals such as butadiene, pure benzene, and MTBE have continued to widen, indicating potential investment opportunities [14]. - The propylene-naphtha spread is currently at $136/ton, which is at the 2.70th percentile since January 2020, suggesting a 66.76% potential expansion space from the median of $227/ton [14]. - The ethylene-naphtha spread is at $191/ton, at the 20.60th percentile since January 2020, with a 20.60% potential expansion space from the median of $231/ton [14]. - The emphasis on "clearing inventory" in political meetings is expected to improve downstream demand, while recent maintenance in chemical plants has affected supply, creating investment opportunities in related sub-sectors [14]. Summary by Company CNOOC - CNOOC reported a net profit of 39.719 billion yuan in Q1 2024, a year-on-year increase of 23.7%, with stable oil and gas production growth targets set for 2024-2026 [3]. - The company maintains a dividend payout ratio of no less than 40% from 2022 to 2024, with an expected annual dividend of at least 0.70 HKD per share [3]. PetroChina - PetroChina achieved a record net profit of 161.144 billion yuan in 2023 despite a 17% decline in oil prices [4]. - The company distributed a cash dividend of 0.44 yuan per share in 2023, with a payout ratio of 50% [4]. CNOOC Services - CNOOC Services anticipates global upstream exploration and development capital expenditures exceeding $60 billion in 2024, a year-on-year increase of 5.7% [5]. - The company reported a revenue of 10.148 billion yuan in Q1 2024, a 20% increase year-on-year, with a net profit of 636 million yuan, up 57.3% [5]. Satellite Petrochemical - Satellite Petrochemical has seen significant profit improvements since 2023, driven by its low-cost and low-emission processes [6]. - The company has several projects under construction that will provide future growth momentum [6]. Hengli Petrochemical - Hengli Petrochemical reported a net profit of 6.905 billion yuan in 2023, a year-on-year increase of 197.83% [7]. - The company is accelerating its new materials layout with several projects expected to start production in the first half of 2024 [7]. Tongkun Co. - Tongkun Co. has expanded its polyester production capacity, with a focus on improving upstream refining layout [8]. - The company has a production capacity of 10.2 million tons of PTA and plans to initiate an integrated refining project in Indonesia [8]. Xin'ao Co. - Xin'ao Co. is actively expanding its natural gas business, with a processing capacity of 7.5 million tons per year at its Zhoushan receiving station [10]. - The company is expected to increase its processing capacity to over 10 million tons per year by 2025 [10].

Investment Rating - The report assigns an "Outperform" rating to several companies in the petroleum and petrochemical sector, including China National Offshore Oil Corporation (CNOOC), PetroChina, Sinopec, Hengli Petrochemical, and others [2][3][4][5][6][7][8]. Core Viewpoints - Since 2024, the spreads of chemicals such as butadiene, pure benzene, and MTBE have continued to widen, indicating potential investment opportunities [14]. - The propylene-naphtha spread is currently at $136/ton, which is at the 2.70th percentile since January 2020, suggesting a 66.76% potential expansion space from the median of $227/ton [14]. - The ethylene-naphtha spread is at $191/ton, at the 20.60th percentile since January 2020, with a 20.60% potential expansion space from the median of $231/ton [14]. - The emphasis on "clearing inventory" in political meetings is expected to improve downstream demand, while recent maintenance in chemical plants has affected supply, creating investment opportunities in related sub-sectors [14]. Summary by Company CNOOC - CNOOC reported a net profit of 39.719 billion yuan in Q1 2024, a year-on-year increase of 23.7%, with stable oil and gas production growth targets set for 2024-2026 [3]. - The company maintains a dividend payout ratio of no less than 40% from 2022 to 2024, with an expected annual dividend of at least 0.70 HKD per share [3]. PetroChina - Despite a 17% year-on-year decline in oil prices, PetroChina achieved a record net profit of 161.144 billion yuan in 2023 [4]. - The company paid a cash dividend of 0.44 yuan per share in 2023, with a dividend payout ratio of 50% [4]. CNOOC Engineering - CNOOC Engineering anticipates global upstream exploration and development capital expenditures to exceed $60 billion in 2024, a year-on-year increase of 5.7% [5]. - The company reported a revenue of 10.148 billion yuan in Q1 2024, a 20% increase year-on-year, with a net profit of 636 million yuan, up 57.3% [5]. Satellite Petrochemical - Satellite Petrochemical has seen significant profit improvements since 2023, driven by its low-cost and low-emission processes [6]. - The company has several projects under construction that will provide future growth momentum [6]. Hengli Petrochemical - Hengli Petrochemical reported a net profit of 6.905 billion yuan in 2023, a year-on-year increase of 197.83%, and a net profit of 2.139 billion yuan in Q1 2024, up 109.80% [7]. - The company is accelerating its new materials layout with several projects expected to start production in 2024 [7]. Tongkun Co. - Tongkun Co. has seen profit recovery in 2023 due to improved downstream demand, with steady capacity expansion in polyester production [8]. - The company has a significant stake in Zhejiang Petrochemical and plans to initiate an integrated refining project in Indonesia [8]. Xin'ao Co. - Xin'ao Co. is actively expanding its natural gas business, with a current processing capacity of 7.5 million tons per year, expected to exceed 10 million tons by 2025 [10].

Investment Rating - The report maintains an **OUTPERFORM** rating for Baoshan Iron & Steel (600019 CH) with a target price of Rmb8.54, compared to the current price of Rmb6.86 [3] Core Views - The company's performance growth in 2023 was in line with expectations, with revenue of Rmb344.5 billion (-6.33% YoY) and net profit attributable to the parent company of Rmb11.944 billion (-1.99% YoY) [4] - In Q4 2023, revenue was Rmb89.484 billion (+5.08% QoQ, -0.05% YoY), and net profit was Rmb3.594 billion (-5.37% QoQ, +31.99% YoY) [4] - In Q1 2024, revenue was Rmb80.814 billion (-9.69% QoQ, +2.81% YoY), and net profit was Rmb1.926 billion (-46.41% QoQ, +4.39% YoY) [4] Financial Performance - The company achieved steel sales of 51.9 million tons in 2023, a 4.3% YoY increase, with a gross profit per ton of steel of Rmb206 (+2.34% YoY) [12] - In Q1 2024, the company achieved cost reductions of Rmb2.24 billion, supporting its outperformance in the industry [12] - The company plans to distribute cash dividends of Rmb0.20 per share for the second half of 2023, with a total expected dividend of Rmb6.781 billion, accounting for 56.77% of the net profit attributable to the parent company [13] Strategic Goals for 2024 - The company aims to achieve "No. 1 in business performance in China" with specific targets including "1+1+N" product sales of 30 million tons, export sales ratio of over 10%, and cost reductions of over Rmb3 billion [14] - The company plans to produce 49.06 million tons of iron, 51.5 million tons of steel, and 52.22 million tons of commodity billets in 2024, with a total operating income of Rmb330.2 billion and operating costs of Rmb303.4 billion [14] Earnings Forecast and Valuation - The report forecasts EPS for 2024-2026 to be Rmb0.61, Rmb0.66, and Rmb0.70 respectively, with a 14x PE valuation for 2024, corresponding to a reasonable value of Rmb8.54 [15] - The company's revenue is expected to grow by 4% in 2024, 2% in 2025, and 2% in 2026, with net profit growth of 12%, 9%, and 6% respectively [4]