Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology industry for 2025 [1] Core Views - The global innovative drug and device sector is sensitive to the interest rate environment, with the U.S. entering a rate-cutting cycle, which is expected to improve the financing environment for innovative drugs and devices, leading to increased orders in the CXO sector [2] - The pharmaceutical and biotechnology industry index has underperformed as of November 2024, with the A-share SW pharmaceutical and biotechnology industry index PE (TTM) at approximately 33 times, which is still below the average valuation over the past decade [2] - Key focus areas include: 1) Innovative drugs supported by strong national policies and improved payment mechanisms; 2) CXO sector benefiting from the elimination of negative impacts from the Biological Safety Act and increased demand during the rate-cutting cycle; 3) Transition from generic to innovative drugs; 4) Traditional Chinese medicine (TCM) with strong policy support; 5) Medical devices with ongoing equipment updates and innovations [2] Summary by Sections Market Overview - The pharmaceutical sector is poised for growth, with some high-performance and innovation-driven stocks showing significant gains [6] - From January to November 2024, the A-share SW pharmaceutical and biotechnology industry index fell by 9.29%, underperforming the CSI 300 index by 23.43 percentage points [7] - The chemical drug sector saw the highest increase at 2.93%, while the biological products sector experienced the largest decline at 22.31% [7] Valuation - As of November 2024, the A-share SW pharmaceutical and biotechnology industry index PE (TTM) is approximately 33 times, indicating potential for valuation recovery [13] Innovative Drugs - The Chinese government has implemented comprehensive support policies for innovative drug development, enhancing the commercial viability and research capabilities of domestic companies [20][23] - The 2024 National Medical Insurance Drug List has been officially implemented, adding 91 new drugs, with an average price reduction of 63%, expected to reduce patient costs by over 50 billion yuan in 2025 [23] - The number of license-out transactions for Chinese innovative drugs has reached a new high, with 111 transactions reported by December 9, 2024, totaling $46.644 billion, indicating global market recognition [28] Traditional Chinese Medicine (TCM) - Continuous favorable policies are being introduced to promote the high-quality development of the TCM industry, with significant R&D investments from leading companies [34][38] - In the first half of 2024, six new TCM drugs were approved, marking a historical high for the same period [41]

Investment Rating - The industry investment rating is maintained at "Overweight" [7][45]. Core Viewpoints - The report highlights that the OPEC+ has extended its voluntary production cuts until March 2025, which may impact the supply dynamics in the chemical industry [6]. - The basic chemical index outperformed the CSI 300 index by 1.39 percentage points over the past week, indicating a positive market trend for the sector [4][27]. Market Trends - The basic chemical index increased by 2.83% from December 2 to December 8, while the CSI 300 index rose by 1.44% [4][27]. - The top-performing sub-industries included viscose (10.08%), nitrogen fertilizer (8.47%), carbon black (5.81%), nylon (4.90%), and synthetic resin (4.77%) [4][27]. Chemical Price Trends - The top five products with the highest weekly price increases were hydrochloric acid (10.95%), R134a (9.09%), potassium chloride (7.14%), DMF (6.71%), and R32 (5.00%) [5][34]. - The products with the largest weekly price declines included SBS (-8.63%), niacinamide (-6.00%), octanol (-3.33%), diethanolamine (-3.24%), and concentrated nitric acid (-3.13%) [5][34]. Investment Recommendations - The report suggests focusing on the following sectors: 1. Refrigerants, with a recommendation to pay attention to Jinshi Resources, Juhua Co., Sanmei Co., and Yonghe Co. 2. Chemical fibers, with a focus on Huafeng Chemical, New Fengming, and Taihe New Materials. 3. Quality stocks such as Wanhua Chemical, Hualu Hengsheng, Luxi Chemical, and Baofeng Energy. 4. Tire sector, recommending SAILUN, Senqilin, and Linglong Tire. 5. Agricultural chemicals, with a focus on Yaji International, Salt Lake Co., Xingfa Group, Yuntianhua, and Yangnong Chemical. 6. Quality growth stocks like Blue Sky Technology, Shengquan Group, and Shandong Heda [7][45].

Export Performance - In November 2024, China's total goods trade value reached 3.75 trillion RMB, with exports at 2.22 trillion RMB, reflecting a growth of 5.8%[36] - Exports to developed countries showed a decline, particularly a significant drop in exports to the EU[42] - Major labor-intensive goods, except toys, experienced a decline, with automotive exports turning negative[44] Import Trends - Imports fell by 4.7% in November, totaling 1.53 trillion RMB, with a notable drop in most major import categories except for automobiles and crude oil[36] - The growth rate of mechanical and electrical imports turned negative, contributing to the overall decline in imports[48] Trade Surplus - The trade surplus in November reached 974.43 billion USD, marking the second-highest level of the year, compared to 957.19 billion USD in October and 690.65 billion USD in the same month last year[51] Economic Outlook - Despite the decline in exports, the overall export performance for the year remains strong, supported by a soft exchange rate and China's manufacturing advantages[55] - Domestic policies are expected to implement proactive macroeconomic measures to boost consumption and investment, aiming to expand domestic demand[57] Risks - Potential risks include worsening geopolitical events, changes in international financial conditions, and unexpected shifts in US-China policies[58]

Investment Rating - The report maintains an "Overweight" rating for the machinery industry [4]. Core Insights - The engineering machinery market is showing continuous improvement, with various players entering the humanoid robot sector, which is expected to accelerate industry development [5][6]. - Recent economic policies are anticipated to boost demand in the real estate sector and improve infrastructure investment, contributing to a sustained recovery in domestic engineering machinery demand [5]. - The semiconductor industry faces increasing restrictions from overseas, emphasizing the need for domestic self-sufficiency in the semiconductor supply chain [7][9]. Summary by Sections Market Review - The machinery sector rose by 3.95% in the week of December 2-6, 2024, ranking 12th among all primary industries [20][22]. - Specific segments showed varied performance: general equipment increased by 6.38%, while engineering machinery saw a modest rise of 0.27% [22]. Industry High-Frequency Data Tracking - In November 2024, the average working hours for major engineering machinery products were 96.7 hours, up 8.79% month-on-month, with a utilization rate of 68.6%, increasing by 5.46% [5]. - Excavator sales reached 17,590 units in November, a year-on-year increase of 17.9%, with domestic sales at 9,020 units, up 20.5% [5][31]. Automation Equipment - In October 2024, industrial robot production was 51,000 units, reflecting a year-on-year increase of 53.9% [41]. - The production of elevators and escalators was 113,000 units, down 2.6% year-on-year [41]. Semiconductor Equipment - Global semiconductor sales in October 2024 were $56.88 billion, a year-on-year increase of 22.1% [49]. - China's semiconductor sales reached $16.20 billion, up 17.1% year-on-year [49]. Investment Recommendations - Recommended companies in engineering machinery include SANY Heavy Industry, Zoomlion, and XCMG [10]. - In humanoid robotics, focus on high-tech segments with low domestic production rates, such as components and sensors [10].

Group 1: CPI Analysis - In November, the CPI increased by 0.2% year-on-year, with urban areas rising by 0.1% and rural areas by 0.2%[11] - Food prices rose by 1.0%, while non-food prices remained flat; consumer goods prices were stable, and service prices increased by 0.4%[11] - The core CPI, excluding food and energy, increased by 0.3%, indicating weak demand[14] Group 2: PPI Insights - The PPI decreased by 2.5% year-on-year, but the decline narrowed by 0.4 percentage points compared to the previous month[13] - Month-on-month, the PPI shifted from a decrease of 0.1% to an increase of 0.1%[25] - Key industries such as petroleum extraction and processing saw a reduction in price declines, while black metal smelting and coal mining experienced expanded declines[28] Group 3: Economic Implications - The stable inflation environment allows for more aggressive monetary and fiscal policies to support economic recovery[4] - The overall price stability is expected to create a favorable outlook for consumer goods prices in the near future[38] - Industrial product prices continue to show a shrinking trend, indicating ongoing economic challenges[38] Group 4: Risks - Potential risks include worsening geopolitical events, changes in international financial conditions, and unexpected shifts in Chinese monetary policy[5]

证 券 研 究 报 告 行 业 周 报 OpenAI 密集发布新品，AI 应用持续落 地 ————计算机行业周报（2024.12.02—2024.12.06） [Table_Rating] 增持（维持） [◼Table_Summary] 市场回顾 [行业Table_Industry] : 计算机 日期: shzqdatemark 2024年12月10日 [Table_Author] 分析师: 吴婷婷 Tel: 021-53686158 E-mail: wutingting@shzq.com SAC 编号: S0870523080001 过 去 一 周 （12.02-12.06） 上 证 综 指 上 涨 2.33%， 创 业 板 指 上 涨 1.94%，沪深300指数上涨1.44%，计算机（申万）指数上涨2.46%， 跑赢上证综指 0.13 个百分点，跑赢创业板指 0.52 个百分点，跑赢沪深 300 指数 1.02 个百分点，位列全行业第 16 名。 ◼ 周观点 OpenAI 宣布 12 天连开 12 场直播，将发布系列新品。OpenAI 首席执 行官 Sam Altman 宣布从 12 月 5 日开始为期 ...

Investment Rating - The industry investment rating is "Accumulate (Maintain)" [2] Core Viewpoints - The construction materials industry is driven by the development of resilient cities, which promotes the transformation of intelligent construction. The central government aims to establish replicable experiences in new urban infrastructure by 2027, with significant achievements expected by 2023. Key tasks include implementing smart municipal infrastructure and enhancing building management intelligence [2][3]. - Recent mergers and acquisitions in the construction materials sector indicate a trend towards consolidation. Notable transactions include Huaxin Cement's planned acquisition of Lafarge Africa for $838 million, which will expand its presence in the West African market, and Beixin Building Materials' acquisition of a controlling stake in Zhejiang Daqiao Paint [3]. Summary by Relevant Sections Industry Data Tracking - The national average price of cement was 544.03 RMB/ton, with a week-on-week increase of 0.2%. The cement output for the week ending December 6 was 3.4975 million tons, reflecting a 2.5% increase [4]. - The inventory of flat glass decreased to 48.229 million weight boxes, down 1.61% week-on-week, indicating a general reduction in stock across regions, particularly in Central and North China [4]. - The price of photovoltaic glass remained stable at 19.5 RMB/square meter, with an operating rate of 62.7% [5]. Investment Recommendations - The construction materials sector is currently at a low point, but there is potential for price recovery, particularly in cement. The report suggests focusing on resilient consumer building material leaders such as Weixing New Materials, Beixin Building Materials, and Tubao. Additionally, it recommends monitoring cement companies like Huaxin Cement and Conch Cement for price recovery opportunities [8].

Investment Rating - The industry investment rating is "Overweight" (maintained) [5][44]. Core Insights - The automotive sector has shown a strong performance with a weekly increase of 3.56%, ranking 8th among 31 first-level industries in the Shenwan classification. The best-performing sub-sector was automotive services, which rose by 6.46% [1][14]. - In November, retail sales of passenger vehicles reached 2.446 million units, a year-on-year increase of 18% and a month-on-month increase of 8%. Cumulative retail sales for the year reached 20.281 million units, up 5% year-on-year [2][21]. - The "trade-in" policy has significantly stimulated sales, with expectations for continued growth in December as manufacturers strive to meet annual targets [2][3]. Summary by Sections Market Review - The automotive sector's weekly performance was +3.56%, with the best-performing sub-sector being automotive services at +6.46%. The top five companies in terms of stock performance included JianShe Industrial (+61.11%) and YunNei Power (+54.72%) [1][14][18]. Industry Data Tracking - November passenger vehicle retail sales were 2.446 million units, up 18% year-on-year and 8% month-on-month. Cumulative wholesale for the year was 2.4119 million units, a 6% increase year-on-year [2][21]. - In the new energy segment, retail sales reached 1.277 million units in November, marking a 52% year-on-year increase [2][21]. Recent Industry/Key Company Dynamics - The China Automotive Association urged domestic companies to be cautious in sourcing American chips due to instability in supply [32]. - General Motors announced a restructuring of its China operations, incurring over $5 billion in costs and asset write-downs [33]. - Xiaomi's new SUV model YU7 is expected to launch in mid-2025, with anticipated sales of 360,000 units in early 2025 [3][39]. Investment Recommendations - Recommended stocks for passenger vehicles include BYD, Great Wall Motors, and Changan Automobile. For commercial vehicles, suggested stocks are China National Heavy Duty Truck Group, Yutong Bus, and Weichai Power [5][39].

Investment Rating - The report maintains an "Overweight" rating for the communication industry [11]. Core Insights - A recent statement from three associations in China indicates that American chip products are no longer considered safe and reliable, leading to a cautious approach towards purchasing American chips in related industries [4][24]. - The semiconductor decoupling from the U.S. is seen as inevitable, with increasing restrictions on Chinese companies over time, which raises uncertainties for China's semiconductor development [5][26]. - The domestic market for optical chips is projected to grow from approximately $1.974 billion in 2023 to an estimated $2.997 billion by 2026, highlighting the importance of domestic production capabilities [6][26]. - The demand for Ethernet bandwidth is expanding, with a significant increase in the need for switching chips as high-performance computing clusters grow [7][28]. Summary by Sections 1. Market Review - The communication sector index experienced a 1.61% change over the past week, ranking 15th among 30 primary industries [3][18]. - The internal structure of the communication sector showed a mixed performance, with declines in telecom operations, communication equipment, and engineering services indices [3][18]. 2. Industry Topic - The statement from the associations reflects a response to U.S. export restrictions, which have added over 140 Chinese companies to a trade restriction list, affecting various semiconductor products [4][25]. - The historical context of U.S. sanctions against Chinese semiconductor companies illustrates a progressive tightening of restrictions, leading to increased uncertainty in the industry [5][26]. 3. Industry News - LightCounting forecasts that the sales of optical devices for access networks will reach $2.9 billion by 2029, indicating a cyclical nature in the market [10][31]. - Google has launched its AI video generation model, Veo, which is expected to enhance content creation processes for enterprises [29][30]. 4. Investment Recommendations - The report suggests focusing on companies in the optical chip sector such as Yuanjie Technology, Guangxun Technology, and Shijia Photon, as well as switching chip companies like Shengke Communication and ZTE [9][28].

Investment Rating - The industry investment rating is maintained at "Overweight" [2][4] Core Viewpoints - The SW Electronics Index increased by 1.61% in the past week, outperforming the CSI 300 Index by 0.16 percentage points [2] - Global semiconductor equipment sales in Q3 2024 grew by 19% year-on-year, reaching $30.38 billion, marking the largest increase in 11 quarters [2] - The Chinese mainland market accounted for $12.93 billion in sales, a 17% increase year-on-year, maintaining its position as the largest semiconductor equipment market globally [2] - The Micro LED chip market is projected to reach $38.8 million in 2024, with potential growth to $48.9 million by 2028, driven by advancements in technology and applications in automotive displays and AR glasses [3] Summary by Sections Market Review - The SW Electronics Index outperformed the CSI 300 Index, with various sub-sectors showing positive growth, including Other Electronics II (3.47%), Consumer Electronics (3.25%), and Semiconductor (0.45%) [2] Semiconductor Equipment Sales - Q3 2024 global semiconductor equipment sales reached $30.38 billion, a 19% increase from the previous year, with significant contributions from the Chinese mainland, Taiwan, and South Korea [2] Micro LED Market Potential - The Micro LED chip market is expected to grow significantly, with advancements in technology and applications leading to a projected market value of $48.9 million by 2028 [3] Investment Recommendations - The report suggests focusing on undervalued semiconductor design stocks with real performance and low PE/PEG ratios, as well as companies in various segments such as AIOT SoC chips, analog chips, and semiconductor equipment materials [4]