Investment Rating - The report recommends focusing on four listed companies in the medical IT sector: Winning Health Technology Group, B-Soft, Sichuan Jiuyuan Yinhai Software, and Goodwill E-Health Info [2][23]. Core Insights - The medical IT sector is experiencing a surge in demand due to recent policy announcements aimed at enhancing healthcare efficiency and resource sharing [5][23]. - Bid amounts for November showed fluctuations, with Winning Health Technology Group and B-Soft both securing bids of RMB 0.10 billion, while Sichuan Jiuyuan Yinhai Software and Goodwill E-Health Info secured RMB 71.28 million and RMB 47.80 million respectively [3][20]. - Cumulative bid amounts from January to November 2024 for the four companies were RMB 1.11 billion, RMB 0.81 billion, RMB 0.81 billion, and RMB 0.31 billion, reflecting year-on-year growth rates of -21%, 28%, 62%, and -18% respectively [3][20]. Summary by Sections Section 1: Bid Data Analysis - In November, Winning Health Technology Group and B-Soft both had bid amounts of RMB 0.10 billion, with year-on-year growth rates of -51% and 123% respectively [3][20]. - For the cumulative period from January to November 2024, the bid amounts for Winning Health Technology Group, B-Soft, Sichuan Jiuyuan Yinhai Software, and Goodwill E-Health Info were RMB 1.11 billion, RMB 0.81 billion, RMB 0.81 billion, and RMB 0.31 billion, with respective year-on-year growth rates of -21%, 28%, 62%, and -18% [3][20]. Section 2: Policy Developments - The National Health Commission has initiated a pilot program for wholly foreign-owned hospitals in select cities, aiming to enhance domestic healthcare services and attract international medical resources [4][21]. - Guidelines for mutual recognition of test results among medical institutions have been issued, with a target for all secondary and above public hospitals to achieve cross-institutional sharing by the end of 2025 [5][22]. Section 3: Investment Recommendations - The report emphasizes the importance of IT in the medical sector, suggesting that the recent policy developments will accelerate the demand for medical IT solutions [5][23]. - Investors are advised to pay attention to the four listed companies mentioned, as they are well-positioned to benefit from the ongoing changes in the healthcare landscape [2][23].

Investment Rating - The report does not explicitly state an investment rating for the industry, but it highlights significant support for innovative drugs and a thriving pharmaceutical innovation environment, suggesting a positive outlook for investment opportunities in the sector. Core Insights - The 2024 National Reimbursement Drug List added 91 new drugs, enhancing patient access and reducing costs by over 50 billion RMB in 2025 [2][3][13]. - The focus of the adjustment is on new drugs, with 90 out of 91 added drugs launched within the last five years, indicating a strong emphasis on innovation [3][14]. - The success rate for negotiations of innovative drugs exceeded 90%, reflecting a favorable environment for pharmaceutical companies [3][14]. - Domestic enterprises accounted for 65 out of the 91 new drugs, showcasing the growth of local innovation in the pharmaceutical sector [3][14]. Summary by Sections Industry News - On November 27, 2024, the National Healthcare Security Administration released the updated drug list, which now includes 3159 drugs, improving coverage for cancer, chronic diseases, and rare diseases [2][3][12][13]. Drug Innovation Support - The adjustment supports drug innovation, with a record number of 38 innovative drugs included in the new list, marking a significant increase in domestic pharmaceutical innovation [3][4][14]. - The time for innovative drugs to be included in the reimbursement list has decreased from approximately five years to just over one year, enhancing the market entry for new drugs [4][15]. Financial Impact - The National Healthcare Security Fund has paid over 350 billion RMB for negotiated drugs, significantly boosting sales in the pharmaceutical sector [4][15]. - The report indicates that the payment for negotiated drugs in the first ten months of 2024 was about 92 billion RMB, which is 21 times higher than in 2019 [4][15]. Regulatory Improvements - The negotiation and pricing processes have become more standardized, with a success rate of 76% for the 117 drugs that participated in this year's negotiations [7][8]. - New measures have been implemented to ensure that the drug list adjustments meet clinical needs and improve patient access to necessary medications [8].

Investment Rating - The report maintains a positive outlook on the real estate industry, suggesting that recent policy easing and improved industry structure will highlight the value of quality companies [4][44]. Core Insights - In November 2024, the top 100 real estate companies experienced a month-on-month sales decline of 16.5% and a year-on-year decline of 6.9%, with total sales amounting to RMB 363.37 billion [3][49]. - For the period from January to November 2024, the top 100 companies achieved sales of RMB 3.43 trillion, representing a year-on-year decrease of 30.7%, although the decline has narrowed compared to previous months [2][48]. - Nearly 50% of the top 100 companies reported positive year-on-year sales growth in November 2024, with Greentown China leading with sales of RMB 31.8 billion [3][51]. Summary by Sections 1. November 2024 Sales Performance - The top 100 companies' sales for November 2024 were RMB 363.37 billion, down 16.5% month-on-month and 6.9% year-on-year [3][49]. - The equity sales for the same month were RMB 287.51 billion, reflecting a month-on-month decline of 16.2% and a year-on-year decline of 3.0% [3][49]. 2. Year-to-Date Sales Performance - From January to November 2024, the top 100 companies' sales reached RMB 3.43 trillion, down 30.7% year-on-year, with a narrowed decline of 2.0 percentage points from October [2][48]. - The top 50 companies recorded sales of RMB 2.97 trillion, also down 30.0% year-on-year, with a similar narrowing of the decline [2][48]. 3. Company Performance Insights - Among the top 50 companies, 20 achieved positive year-on-year growth in November 2024, with Sino-Ocean Group showing the highest growth at 103.4% [4][52]. - The report highlights specific companies to watch, including Vanke A, Poly Developments, and China Merchants Shekou in the development category, and China Resources Land and Longfor Group in the commercial residential category [4][44].

Investment Rating - The report suggests a positive outlook for the data circulation security governance industry, indicating potential investment opportunities in related companies [2][8]. Core Insights - The National Data Bureau has released a draft plan to enhance data circulation security governance, aiming to establish a clear and collaborative governance system by the end of 2027, which will support a thriving data market [2][12]. - Data circulation security governance is identified as a key component of national data infrastructure, emphasizing the importance of securing data throughout its lifecycle [3][13]. - The plan clarifies responsibilities for data providers and users, ensuring legal data sources and proper usage, particularly in public data sharing [4][14]. - The report highlights the encouragement for enterprises to maximize data value while ensuring security, promoting data openness and the use of data masking for sensitive information [4][14]. - The integration of national network identity authentication is proposed to enhance personal information protection, facilitating secure data flow [5][15]. - The report anticipates growth in the data security service industry, benefiting core data security firms through advancements in research, technology, and service development [8][15]. Summary by Sections - **Investment Opportunities**: The report recommends focusing on companies involved in data elements, network identity authentication, and data security, listing specific firms such as INESA Intelligent Tech, Newland Digital Technology, and Venustech Group as potential investment targets [8][16]. - **Data Governance Framework**: The governance framework aims to ensure efficient data flow and enhance governance effectiveness, which is crucial for the development of a robust data market [2][12]. - **Security Measures**: The emphasis on security measures includes audits of algorithms and models, ensuring that high-value data is secure and traceable throughout its lifecycle [3][13].

Group 1 - The core conclusion indicates that the decline in Hong Kong stocks in November was primarily due to Trump's election victory, which suppressed liquidity and risk appetite, while domestic fundamentals require time to improve [2][5] - The Hong Kong stock market exhibited a leading trend compared to the A-share market, with a rebound starting on August 5 and a subsequent correction beginning on October 8 [4][24] - Currently, Hong Kong stocks are in a high cost-performance range, with potential for significant upward movement as domestic policies may drive improvements in fundamentals [6][32] Group 2 - In November, global stock indices showed mixed performance, with Hong Kong stocks continuing to adjust, while the A-share market saw slight gains [3][18] - The leading sectors in the Hong Kong market for November were healthcare (1.0%), finance (0.8%), and telecommunications services (0.5%), while the worst-performing sectors included consumer staples (-5.1%), real estate (-4.5%), and utilities (-3.5%) [3][18] - The adjustment in the Hong Kong market was more pronounced than in the A-share market, with a cumulative decline of 7.5% from November 6 to November 29, compared to a slight drop of 1.8% in the A-share market during the same period [24][20] Group 3 - The tightening liquidity in the Hong Kong market was influenced by the strengthening of the US dollar and rising US Treasury yields following Trump's election, leading to increased pressure on the market [27][20] - Trump's policies have constrained risk appetite, with the risk premium for the Hang Seng Index rising from 7.35% on November 6 to 8.29% by November 29, indicating increased required returns for investors [28][20] - Current valuations of Hong Kong stocks are low, with the Hang Seng Index's PE ratio at 8.8 times and PB ratio at 0.91 times, both significantly below historical averages [30][33] Group 4 - The recent policy measures in China may signal a bottoming out of domestic policies, with early signs of improvement in macroeconomic data, such as a rise in manufacturing PMI and significant growth in exports and retail sales [32][34][36] - The market is expected to benefit from ongoing fiscal and monetary policy support, which could gradually restore fundamentals and provide support for Hong Kong stocks [32][6]

Investment Rating - The report maintains a positive outlook on the rare earths industry, indicating a recovery in prices and a favorable supply-demand balance [3]. Core Insights - Rare earth prices have bottomed out and are expected to rise steadily due to recovery in demand and production cost support [3]. - Supply constraints are tightening as domestic production growth slows and overseas output declines, with the implementation of the Rare Earth Management Regulations further enhancing supply control [3][19]. - Demand for rare earths is projected to grow, particularly in new energy vehicles, wind power, and robotics, with high-performance rare earth permanent magnet materials expected to see an annual growth rate of 17.2% [3]. - Inventory levels are decreasing in downstream sectors, while production costs, particularly for praseodymium and neodymium, are providing strong price support [3][77]. - Investment recommendations focus on leading rare earth companies and magnetic material producers, highlighting the strong resource barriers and stable market shares of domestic leaders [3]. Price Analysis - Rare earth prices have shown signs of recovery, with specific price trends indicating a rebound from previous lows [6][8]. Supply Analysis - The total control indicators for rare earth mining and separation in 2024 show a growth rate of 5.9% and 4.2% respectively, which is a significant slowdown compared to 2023 [14]. - The implementation of the Rare Earth Management Regulations is expected to improve the supply-demand balance by reducing non-compliant supply [19]. - Overseas production from major companies has not shown significant growth in the first three quarters of 2024, indicating a controlled supply environment [29]. Demand Analysis - The demand for rare earths is expected to rise in emerging sectors such as electric vehicles, wind energy, and robotics, with significant growth anticipated in the production of industrial and humanoid robots [3][43]. - The cumulative production of new energy vehicles in China is on the rise, further driving demand for rare earth materials [43]. Inventory and Cost Analysis - Downstream inventory levels have decreased year-on-year, indicating a recovery in demand [70]. - The cost of praseodymium and neodymium is providing a solid bottom support for prices, reflecting the high concentration and regulatory control in the rare earth industry [77]. Company Focus - The report highlights key players in the rare earth sector, recommending attention to Northern Rare Earth and China Rare Earth, which have strong resource advantages and stable market positions [3][84][88]. - The magnetic material producer, Kinglong Permanent Magnet, is noted for its stable growth in production and capacity expansion plans [91].

Equity – Asia Research 成交额再创新高——北交所研究月报 Turnover Hits New High - Beijing Stock Exchange Monthly Report 吴信坤Xinkun Wu xk.wu@htisec.com 周林泓Amber Zhou amber.lh.zhou@htisec.com 3 Dec 2024 本研究报告由海通国际分销，海通国际是由海通国际研究有限公司，海通证券印度私人有限公司，海通国际株式会社和海通国际证券集团其他各成员单位的证券 研究团队所组成的全球品牌，海通国际证券集团各成员分别在其许可的司法管辖区内从事证券活动。关于海通国际的分析师证明，重要披露声明和免责声明，请 参阅附录。(Please see appendix for English translation of the disclaimer) 核心结论：成交额再创新高 | --- | --- | --- | --- | |-------|----------------------------------|----------------------------------- ...

Investment Rating - The report indicates a positive outlook for industrial metals due to the recovery of domestic manufacturing, suggesting potential investment opportunities in this sector [2]. Core Insights - The recovery in domestic manufacturing is expected to boost the demand for industrial metals, with specific attention to companies like Zijin Mining, Luoyang Molybdenum, and China Aluminum [2]. - Energy metals are seeing renewed interest in resource acquisitions, particularly lithium, as evidenced by Tianhua New Energy's bidding for a lithium mine in Jiangxi [2]. - The report expresses optimism for gold and silver prices, anticipating a potential increase due to adjusted interest rate expectations [2]. - The prices of rare earth elements and other minor metals have shown slight increases, indicating a stable market [2]. Summary by Sections Industrial Metals - The report notes a slight increase in the manufacturing PMI to 50.3%, indicating a modest expansion in manufacturing activity. LME copper prices rose by 0.5% to $9015 per ton, while aluminum prices fell by 1.2% to $2599 per ton. Zinc prices increased by 4.6% to $3109 per ton [2][4][30]. - The domestic electrolytic copper inventory continues to decline, and supply tightness persists due to ongoing maintenance at smelting plants [2]. Energy Metals - The report highlights a 0.1% decrease in battery-grade lithium carbonate prices, while the acquisition of lithium resources is gaining traction, as seen with Tianhua New Energy's recent activities [2][47]. Precious Metals - Gold and silver prices have decreased, with London spot gold at $2651.05 per ounce and silver at $30.70 per ounce, reflecting a weekly decline of 1.6% and 1.8% respectively. The report suggests that the market has adequately adjusted to interest rate expectations, with potential for price increases [2][66]. Rare Earths and Minor Metals - The price of praseodymium-neodymium oxide increased by 0.9%, indicating a stable demand for rare earth elements. The report recommends monitoring companies involved in this sector [2][82].

Investment Rating - The report assigns an "Outperform" rating to the company with a target price of RMB 19.23, equivalent to HKD 20.57 at the current exchange rate [4][23] Core Investment Thesis - The company is a leading online retailer specializing in home furnishing products, ranking first in China's B2C overseas e-commerce market for home furnishing by GMV in 2023 and fifth globally [2][21] - The company achieved revenue of RMB 8.68 billion in 2023, a 22.29% YoY increase, with net profit attributable to shareholders reaching RMB 532 million, up 142.87% YoY [2][21] Competitive Advantages Supply Chain and Brand Portfolio - The company has a robust supply chain management system with 629 patents, 150 patent applications, and 172 software copyrights as of October 2024 [3][22] - It partners with 575 manufacturers and owns popular brands like ALLEWIE and IRONCK, with 11 brands exceeding RMB 100 million GMV in 2023 [3][22] - Six product categories ranked first on Amazon USA by GMV in 2023, with a return rate below 3.5% on all third-party platforms, among the lowest in the industry [3][22] Operational Excellence - The company ranks fifth globally in the B2C e-commerce market for home furnishing by GMV in 2023, with a 0.2% market share in the global B2C e-commerce market and 0.04% in the global home furnishing industry [8] - Revenue from Amazon, Walmart, and Wayfair platforms accounted for 53.8%, 9.8%, and 10.0% of total revenue in 2023, respectively [8] Logistics Solutions - The company operates 27 overseas warehouses with a total area exceeding 5.5 million square feet as of April 30, 2024 [9] - It completed over 610 million logistics solution orders in 2023, with a 95% on-time delivery rate for large and medium-sized products within 24 hours [9] - Its logistics subsidiary, Shenzhen Xiyou Smart Warehouse, ranks fourth in China's B2C export e-commerce logistics solutions by revenue in 2023, with a 1.2% market share [9] Financial Performance and Projections Historical Performance - In 2023, the company achieved a gross margin of 34.48% and a net profit margin of 5.99%, with sales, management, and financial expense ratios of 21.08%, 3.31%, and 0.71%, respectively [10] - Revenue grew by 22.3% YoY to RMB 8.68 billion in 2023, with net profit attributable to shareholders increasing by 142.9% YoY to RMB 532 million [6][10] Future Projections - Revenue is expected to grow at a CAGR of 16.0%, 14.9%, and 12.7% from 2024 to 2026, reaching RMB 10.07 billion, RMB 11.58 billion, and RMB 13.05 billion, respectively [6][10] - Net profit is projected to be RMB 532 million, RMB 652 million, and RMB 724 million for 2024-2026, with growth rates of 0%, 22.5%, and 11.1%, respectively [4][6] - The gross margin is expected to remain stable at around 33.5% from 2024 to 2026 [6][10] Business Segment Analysis Home Furnishing Products - Revenue from home furnishing products is projected to grow at 19.9%, 16.6%, and 13.4% from 2024 to 2026, with a stable gross margin of 40.64% [10][14] Other Product Categories - Revenue from other categories, including power tools and consumer electronics, is expected to decline by 9.82%, 6.56%, and 4.61% from 2024 to 2026, with gross margins ranging from 31.56% to 32.16% [11][14] Logistics Solutions - Revenue from logistics solutions is projected to grow at 30.0%, 25.0%, and 20.0% from 2024 to 2026, with gross margins of 14.0%, 14.5%, and 14.5%, respectively [11][14] Valuation and Peer Comparison - The current closing price implies a PE of 9.1x and 7.4x for 2024 and 2025, respectively [4][23] - The target price of RMB 19.23 is based on a 15x PE valuation for 2024, compared to an average PE of 14.9x for peers like Leggett & Platt and Zuoan Technology [4][14][23]

Investment Rating - The report maintains a positive outlook on the charging pole sector, particularly in the overseas expansion of charging infrastructure [5][17]. Core Insights - The charging pole market in the USA and Europe is experiencing significant growth, with the USA adding 37,000 public charging poles in the first 11 months of 2024, a 23.3% year-on-year increase [2][5]. - The charging utilization rates are improving, especially for DC fast chargers, with utilization rates in the USA rising from 12.9% to 17.1% from July 2023 to June 2024 [3][14]. - The European market also shows growth, with 163,000 public charging poles added in the first three quarters of 2024, a 12.2% year-on-year increase [4][15]. - The report highlights a significant gap in charging resources in the USA and Europe, indicating a strong potential for future growth in the sector [5][16]. Summary by Sections USA Charging Infrastructure - As of November 30, 2024, the USA had a total of 205,000 public charging poles, with 20,000 being private [2][13]. - The number of DC fast chargers added in 2024 reached 12,000, marking a 30.8% year-on-year increase [2][13]. - The charging utilization rates for L2 and DC fast chargers have shown regional disparities, with New Jersey and Nevada achieving utilization rates of 27% [3][14]. European Charging Infrastructure - The EU's total public charging pole count reached 795,000 by Q3 2024, with 676,000 being AC and 120,000 DC [4][15]. - In Q3 2024, the EU added 27,000 new public charging poles, although this represented a 41.9% year-on-year decrease [4][15]. - The growth in DC charging poles in Europe is notable, with a 43.7% year-on-year increase in the first three quarters of 2024 [4][15]. Market Potential and Investment Opportunities - The report emphasizes the high growth potential of the charging pole sector, driven by increasing electric vehicle adoption and infrastructure development [5][16]. - Companies with a focus on overseas expansion and high DC charging share are recommended for investment, including Autel Intelligent Technology and Shenzhen Sinexcel Electric [5][17].