Investment Rating - The industry investment rating is "Positive" as it is expected to outperform the market benchmark index by more than 5% in the next six months [18]. Core Viewpoints - The concept of "Zero Carbon Parks" has been introduced, which aligns with the dual carbon goals and is expected to stimulate demand across various segments of the industry [1]. - The transition to zero carbon in existing industrial parks will enhance the supply capacity of renewable energy and improve energy efficiency, leading to increased installations of distributed commercial photovoltaic and energy storage systems [2]. - Hydrogen energy is identified as a key component in achieving the zero carbon goals, facilitating decarbonization across multiple scenarios within the parks, including transportation and energy storage [3]. - The implementation of the "Zero Carbon Park" initiative is expected to drive significant demand for distributed commercial photovoltaic, energy storage, and hydrogen applications [4]. Summary by Sections Zero Carbon Parks - The establishment of zero carbon parks is a critical pathway for achieving China's dual carbon strategy, with over 2,700 industrial parks contributing significantly to energy consumption and CO2 emissions [1]. - The shift towards zero carbon models is supported by local government policies, with nearly 30 provincial regions already planning low-carbon or near-zero carbon parks [1]. User-side Energy Storage - The transition to zero carbon will lead to a substantial increase in the installation of distributed commercial photovoltaic systems, with a reported 62.4 GW of new capacity added in the first three quarters of 2024, representing an 83% year-on-year increase [2]. - New energy storage capacity is projected to reach 109.8 GWh in 2024, a 136% increase year-on-year, with commercial energy storage accounting for 6.7% of this growth [2]. Hydrogen Energy Applications - Hydrogen energy is expected to play a vital role in the decarbonization of parks, enabling the integration of various energy systems and alleviating pressure on the power grid during peak demand [3]. - The promotion of hydrogen applications within zero carbon parks is anticipated to accelerate the commercialization of hydrogen technologies and reduce costs across the industry [3]. Investment Recommendations - The report suggests focusing on demonstration projects related to distributed commercial photovoltaic, energy storage, and hydrogen applications, as well as monitoring bidding situations for traditional and new projects [4]. - Beneficiary companies identified include Tongwei Co., Ltd., Contemporary Amperex Technology Co., Ltd., and Sungrow Power Supply Co., Ltd. [4].

Core Viewpoints - The market adjustment is nearing its end, with a new value center projected between 3200-3300 points. The recent adjustment around 3140 is consistent with previous low points, remaining within a larger oscillation range. The extreme downside potential for the market in 2025 is estimated at 10%, roughly around 3000 points, indicating limited downward momentum and space for the market. The current adjustments are primarily due to short-term uncertainties, particularly regarding exchange rates and the bond market, but positive policy signals are expected to reduce market panic, leading to a probable recovery phase [4][5]. - A spring market rally is anticipated, as historically, A-shares have seen a rally in spring except for 2022. The first quarter is characterized by strong policy expectations, with various policies gradually being implemented, fostering a positive market outlook. The core influencing factor for the market in 2025 remains policy, which is expected to continue driving the market upward despite potential fluctuations. The performance verification period will occur in March and April, making gradual market recovery a likely event [4][5]. Investment Strategy - The report suggests actively positioning in large technology and large consumer sectors. The current market adjustment presents a favorable opportunity for long-term investment rather than a time for panic. Key areas of focus in the large technology sector include humanoid robots, AI applications, and low-altitude developments. In the large consumer sector, attention should be directed towards policy-driven areas such as home appliances, consumer electronics, cultural tourism, medical beauty, and food and beverage. Additionally, some cyclical industries that are clearing out at the end of their cycles, such as photovoltaics, wind energy, chemicals, and non-ferrous metals, are also recommended for consideration [5].

Investment Rating - The report maintains a "Strong Buy" rating for China Merchants Bank [5][11]. Core Views - The bank's revenue decline has narrowed, with a year-on-year revenue change of -0.5% and a net profit increase of +1.2% for 2024, indicating a recovery in profitability [2][11]. - The asset quality remains stable, with a non-performing loan ratio of 0.95% at year-end, and the bank is expected to benefit from improving credit costs and a supportive economic environment [2][3][11]. Summary by Sections Financial Performance - In 2024, China Merchants Bank achieved a revenue of 337.54 billion and a net profit of 148.39 billion, with respective year-on-year changes of -0.5% and +1.2% [1][12]. - The return on equity (ROE) was reported at 15.1%, down 1.7 percentage points year-on-year [1]. Revenue Composition - Net interest income decreased by 1.6% year-on-year, but the decline rate improved by 1.5 percentage points compared to previous quarters [2]. - Other non-interest income increased by 1.5% year-on-year, driven by improved market conditions and a recovery in wealth management fees [2][3]. Asset and Liability Management - Total assets grew by 10.2% year-on-year, with loans increasing by 5.8% and deposits rising by 11.5% [3][12]. - The bank's deposit growth outpaced loan growth, reflecting strong customer relationships and service capabilities [3]. Future Outlook - The bank is expected to see a gradual recovery in retail lending and a stabilization of its wealth management business, supported by favorable policies and market conditions [4][11]. - Projections indicate net profit growth of 3.4% and 5.8% for 2025 and 2026, respectively, with a corresponding book value per share (BVPS) of 48.82 and 55.33 yuan [11][12].

Investment Rating - The industry investment rating is "Positive" for the automotive sector, indicating an expectation of performance that exceeds the market benchmark by more than 5% over the next six months [24]. Core Insights - The automotive market in China is expected to continue growing in 2025, supported by the expanded vehicle trade-in policies and subsidies for replacing old vehicles with new energy vehicles or fuel-efficient cars [2][3]. - The penetration rate of new energy vehicles (NEVs) is increasing, with NEVs accounting for 40.9% of total new car sales in 2024, a rise of 9.3 percentage points from 2023 [2]. - The export share of Chinese automobiles is expanding, with total exports reaching 5.859 million units in 2024, a year-on-year increase of 19.3% [3]. Summary by Sections Market Performance - In 2024, the total production and sales of automobiles reached 31.282 million and 31.436 million units, respectively, representing year-on-year growth of 3.7% and 4.5% [1]. - The domestic sales of passenger vehicles totaled 22.608 million units, with a year-on-year increase of 3.1% [1]. Policy Impact - The introduction of trade-in policies in April and July 2024 is expected to boost demand, with strong sales performance noted in December 2024, where sales reached 2.694 million units, up 13.6% year-on-year [1][2]. New Energy Vehicles - In 2024, plug-in hybrid vehicle sales surged by 83.3% to 5.141 million units, while pure electric vehicle sales increased by 15.5% to 7.719 million units [2]. - The market is witnessing a shift towards hybrid models due to their advantages in cost, range, and consumer acceptance [2]. Export Trends - The export of traditional fuel vehicles grew by 23.5% to 4.574 million units, while new energy vehicle exports reached 1.284 million units, a 6.7% increase [3]. - The export of pure electric vehicles declined by 10.4% to 987,000 units, while plug-in hybrid exports soared by 193.7% to 297,000 units [3]. Investment Recommendations - The report suggests focusing on the smart vehicle segment, as the penetration of new energy vehicles accelerates, with leading companies establishing competitive advantages in data and technology [10]. - Specific companies recommended for investment include Seres, Jianghuai Automobile, and BAIC BluePark, which are benefiting from advancements in smart vehicle technology [10].

Group 1: Advanced Packaging Industry - CoWoS is a 2.5D advanced packaging technology developed by TSMC, integrating multiple chips on a single silicon interposer [1][2] - The advantages of CoWoS include high integration, speed, reliability, and cost-effectiveness, while challenges include manufacturing complexity and thermal management [1][2] - The advanced packaging market in China is expected to exceed 110 billion yuan by 2025, with a compound annual growth rate of 26.5% [2] - Major players in the CoWoS demand include NVIDIA, which accounts for over 50% of TSMC's CoWoS capacity [2] - Domestic companies involved in advanced packaging include Changjiang Electronics, Tongfu Microelectronics, and Huada Technology, each with unique technologies [2][3] - CoWoS-L is anticipated to become the primary packaging type, combining advantages of CoWoS-S and InFO technologies [3] Group 2: Light Industry Manufacturing - The light industry manufacturing sector experienced a decline of 1.4% in 2024, underperforming compared to the CSI 300 index [7] - Home furnishing sales faced significant pressure due to real estate completion data, but are expected to recover with government subsidies [8] - The textile manufacturing sector showed a 30% increase, while the apparel and home textile sectors struggled [7][8] - The home furnishing sector is projected to stabilize in 2025, supported by government subsidies and improved real estate policies [8] - Export demand is expected to remain strong, particularly for companies with low exposure to tariff impacts [10] Group 3: Computer Industry - The computer sector's performance has been stable, with a rebound observed in the second half of the year [21] - Investment opportunities are identified in the fields of domestic innovation (信创) and AI applications, which are expected to drive growth [22][23] - The sector is characterized by high volatility and potential for rapid valuation increases, influenced by policy and technology [22] - Key investment targets include companies involved in the domestic innovation ecosystem and those with AI application capabilities [23] Group 4: Transportation and Infrastructure - Anhui Expressway plans to acquire two high-quality toll roads for 4.77 billion yuan, which are expected to enhance profitability [16][17] - The acquired assets have significant revenue-generating potential, with remaining toll collection periods of 15 and 18 years [16][17] - The acquisition is seen as reasonable, with expected net profits of 225 million yuan for 2024, leading to an increase in overall company profitability [18][19]

Investment Rating - The industry investment rating is "Positive" for 2025, indicating an expectation of better performance compared to the market benchmark [10]. Core Viewpoints - The report highlights that government bonds are the main support for the increase in social financing (社融) in December, with a year-on-year increase of 0.92 trillion yuan, leading to a total of 2.86 trillion yuan in new social financing [2][3]. - The report notes a continued improvement in the residential sector, driven by reduced early repayment pressure and a recovery in real estate sales, while corporate financing demand remains weak [2][3]. - The outlook for 2025 suggests that with more proactive fiscal policies and moderately loose monetary policies, government bonds are expected to maintain high growth, supporting social financing growth [2][3]. Summary by Sections Social Financing - In December, new social financing reached 2.86 trillion yuan, with a year-on-year increase of 0.92 trillion yuan, and the stock of social financing grew by 8% year-on-year, showing a slight improvement of 0.2 percentage points month-on-month [3][20]. - Government bonds accounted for 62% of the new social financing, with 1.76 trillion yuan issued in December, primarily for replacing hidden debts [3][10]. - The total social financing for the year was 32.26 trillion yuan, a decrease of 3.32 trillion yuan year-on-year [3]. Credit - New RMB loans in December amounted to 990 billion yuan, a year-on-year decrease of 180 billion yuan, with a year-on-year growth rate of 7.6%, showing a slight decline of 0.1 percentage points month-on-month [4][10]. - The residential sector saw a recovery in medium to long-term loans, with new household loans of 350 billion yuan, an increase of 127.9 billion yuan year-on-year, supported by a decrease in early repayments and improved real estate sales [4][10]. - Corporate loans decreased significantly, with new corporate loans of 490 billion yuan, a year-on-year decrease of 4.016 trillion yuan, indicating weak demand for corporate leverage [4][10]. Deposits - M1 growth continued to recover, with a year-on-year decrease of 1.4% in December, but improved by 2.3 percentage points month-on-month [11][22]. - M2 growth was 7.3% year-on-year, reflecting an increase in government spending and a shift of government deposits towards residents and enterprises [11][22]. - The report anticipates that the new M1 statistical criteria will result in higher growth rates under the new methodology starting January 2025 [11][22]. Investment Recommendations - The report suggests that the main logic for bank investments in 2025 will come from long-term and passive funds enhancing the value of bank allocations, particularly in high-dividend stocks [11]. - It also indicates that improvements in the fundamental outlook will drive valuation recovery, recommending a focus on cyclical stocks with performance release potential, especially strong regional banks [11].

Key Points - The U.S. non-farm employment increased by 256,000 in December, exceeding expectations of 160,000, while the unemployment rate remained at 4.1% [2][3] - The labor market shows signs of tightness with a demand-to-supply ratio of 100.58% in November, indicating a rebound similar to pre-pandemic levels [3][4] - The manufacturing sector continues to decline, with a loss of 13,000 jobs in December, while non-durable goods saw a slight increase of 3,000 jobs [4][8] - The healthcare and government sectors are supporting non-farm employment, with these sectors accounting for 26% of total non-farm jobs [4][8] - The average weekly earnings growth is declining, with a year-on-year increase of 3.5% for weekly wages and 3.8% for hourly wages, still above inflation [7][8] - The Federal Reserve's policy path is expected to be more hawkish than indicated in the dot plot, with a projected upper limit for the 10-year U.S. Treasury yield at 4.75% to 5% [3][8] - The A-share and Hong Kong markets showed positive performance, with the Shanghai Composite Index rising by 2.54% and the Shenzhen Component Index increasing by 3.77% [5] - The real estate sector is showing signs of stabilization, with the top 100 real estate companies' sales decline narrowing to -30.3% year-on-year in December [17][18] - The coal industry is experiencing a decline in coking coal prices, with a decrease of 6.14% in the China coking coal price index [23][24] - The communication industry is expanding, with significant progress in high-speed optical module production and overseas capacity development [26][27]

Investment Rating - The industry investment rating is "Positive" [1][20]. Core Viewpoints - The China Securities Regulatory Commission (CSRC) has outlined five key work directions for 2024 to optimize the capital market environment, including the introduction of new policies and maintaining market stability [2]. - In 2025, the CSRC aims to enhance the capital market's role in economic recovery and development, focusing on regulatory effectiveness and investor protection [3]. - The continuous improvement of the capital market environment is expected to benefit the securities industry, leading to performance enhancement and valuation increases [4]. Summary by Sections Regulatory Developments - The CSRC has implemented multiple favorable policies for the capital market in 2024, including the introduction of the new "National Nine Articles" and a comprehensive policy system [2]. - The focus for 2025 includes stabilizing market trends, accelerating reforms, and enhancing the quality of listed companies [3]. Market Outlook - The securities industry is anticipated to benefit from a more favorable capital market environment, which will enhance business operations and attract long-term investment [4]. - The expected acceleration of mergers and acquisitions in the securities industry may lead to increased market concentration and recognition of the investment value of leading firms [4]. Industry Statistics - The industry comprises 82 listed companies with a total market capitalization of approximately 67,232.23 billion [6]. - The average price-to-earnings ratio for the industry stands at 14.12 [6].

Investment Rating - The report maintains a "Positive" investment rating for the food and beverage industry [1]. Core Insights - The announcement by Wuliangye to suspend supply signals a clear price support strategy, with expectations for increased sales activity as the Spring Festival approaches. Major liquor brands are likely to enhance their investments in channels and consumers, potentially gaining market share through brand and scale advantages [2][10]. - The demand for liquor is expected to improve with the recovery of the macro economy, with a focus on leading companies that can sustain market share growth. Recommendations include companies like Kweichow Moutai [3][11]. - The report highlights a recovery in demand for business banquets and weddings, predicting a strong performance in the banquet market during the Spring Festival, particularly in the price range of 100-300 [2][10]. Market Performance - Last week, various sub-sectors within the food and beverage industry experienced declines, with the following weekly changes: soft drinks -2.33%, dairy -2.35%, other foods -3.47%, yellow wine (Yangtze) -4.25%, meat products -4.75%, liquor III -4.79%, beer -4.86%, other alcoholic beverages -4.87%, and seasoning and fermentation products -6.08% [3][12]. - Among liquor companies, the top three performers were Yingjia Gongjiu at +3.91%, while the bottom five included Hainan Yedao at -8.27% and Shunxin Agriculture at -9.73% [3][12]. Industry Overview - The food and beverage industry comprises 126 companies, with a total market value of 46,122.06 billion and a circulating market value of 44,619.44 billion. The average industry price-to-earnings ratio stands at 20.67 [5].

Investment Rating - The report maintains a "Strongly Recommend" rating for Haid Group (002311 SZ) [4][6] Core Views - Haid Group's feed business continues to gain market share both domestically and internationally, with overseas sales opening new growth opportunities [2] - The company is expected to achieve simultaneous growth in domestic and international feed businesses in 2025 [3] - The company's core cost advantage will continue to support its main feed business and further increase market share [4] - The overseas market is expected to replicate domestic success and contribute new growth increments [4] - The company's aquaculture business has shown improved professional capabilities, with low-risk and light-asset operations keeping risks under control [4] Financial Performance - For 2024, the company expects net profit attributable to shareholders of 4 25-4 8 billion yuan, a year-on-year increase of 55 04%-75 10% [2] - The company achieved feed sales of 26 5 million tons in 2024, a 9% year-on-year increase, including 2 1 million tons for internal breeding consumption [2] - In the first half of 2024, the company achieved overseas feed sales of over 1 million tons, a 30% year-on-year increase [3] - The company's 2024-2026 net profit attributable to shareholders is forecasted to be 4 501, 5 101, and 5 822 billion yuan, respectively, with EPS of 2 71, 3 07, and 3 50 yuan [4] - The company's PE ratio for 2024-2026 is expected to be 18, 16, and 14 times, respectively [4] Business Outlook - Domestic feed business is expected to benefit from steady growth in pig inventory and slaughter volume, as well as recovery in aquatic product seedling volume in 2025 [3] - Overseas feed business is expected to continue expanding production capacity and market development in 2025, replicating domestic advantages [3] - The company's pig breeding business has optimized costs significantly in 2024, with a low-risk operating model expected to show relative advantages during the 2025 pig price downturn [3] - The company's high-margin aquatic feed business is expected to bottom out and rebound, with overall feed business expected to achieve both volume and profit growth [4] Market Position - Haid Group's feed sales grew against the trend in 2024, with market share further increasing [2] - The company has achieved production and sales in key aquaculture regions across the country [7]