Investment Rating - The report maintains an "Accumulate" rating for the environmental protection industry [1] Core Views - The report highlights the strategic cooperation between Green Power and Asia United Infrastructure, which, if successful, will adopt a light asset model similar to that in Hong Kong, enhancing dividends and ROE [4][8] - The report emphasizes that the decline in capital expenditure in waste incineration will lead to improved free cash flow and increased dividends, while the heat supply and IDC collaborations will enhance ROE and valuation [11][15] - The water utility sector is expected to see stable growth and high dividends, with water price reforms reshaping growth and valuation [15][17] Summary by Sections Industry Trends - The environmental protection and public utility index rose by 2.75%, outperforming the broader market indices [46] - The report notes a 73% year-on-year increase in sales of new energy sanitation vehicles, with a penetration rate of 14.95% [26] Key Recommendations - The report recommends companies such as Conch Venture, Blue Sky Environment, Green Power, and Yongxing Shares for investment [4] - It suggests paying attention to companies like Lian Tai Environmental Protection and Wang Neng Environment for potential growth [4] Financial Performance - Green Power's free cash flow is projected to increase significantly, with a forecasted cash dividend of 4.18 billion yuan in 2024, representing a 100% year-on-year increase [12][8] - The report anticipates that the dividend potential for 2024 will reach 97% to 120% under stable conditions, with specific companies like Yongxing Shares and Wang Neng Environment showing potential dividends exceeding 150% [13][12] Sector Developments - The report discusses the trend of waste incineration and IDC collaborations as a new growth avenue, highlighting the advantages of clean and efficient waste-to-energy processes [14] - It notes that the water utility sector is experiencing a shift towards market-driven pricing, which is expected to enhance profitability and stability [17][15] Market Dynamics - The report indicates that the average price of biodiesel remains stable at 8,250 yuan per ton, with slight fluctuations in profitability [37] - In the lithium battery recycling sector, there is a slight improvement in profitability, with metal prices showing mixed trends [39]

Investment Rating - The report maintains an "Accumulate" rating for the construction materials industry [1] Core Views - The construction materials sector has shown a weekly increase of 2.41%, outperforming the CSI 300 and Wind All A indices, which increased by 1.95% and 3.56% respectively [3] - The report highlights the importance of focusing on companies transitioning towards technology, especially in the context of strategic infrastructure projects and the recovery of the real estate market [3] - The report suggests that the demand for cement is expected to stabilize in Q4 2025, with undervalued leading brands likely to experience valuation recovery [3][4] Summary by Sections 1. Industry Overview - The construction materials sector is currently experiencing a low demand environment, with the average cement shipment rate at 43.4% and a national cement price of 353.0 CNY/ton, down 3.8 CNY/ton from the previous week [3][20][21] - The report indicates that the cement market is facing downward price pressure due to high temperatures, heavy rainfall, and tight market liquidity [11][20] 2. Cement Market - The average cement price has decreased by 37.5 CNY/ton compared to the same period last year, with significant price drops in regions like the Yangtze River Delta and the Guangxi region [21][22] - The report emphasizes that the cement industry is likely to see a rebalancing of supply and demand, with a potential for profit margins to improve compared to last year [11][20] 3. Glass Fiber Market - The glass fiber sector is experiencing low profitability, with many second and third-tier companies at breakeven or loss [12] - The report notes that the demand for high-end products in wind power and thermoplastics is expected to grow, which may support profitability for leading companies [12] 4. Glass Market - The glass industry is currently in a weak balance state, with inventory levels high and seasonal demand expected to decline [13] - The report suggests that leading companies in the float glass sector may benefit from resource advantages and the clearing of excess capacity [14] 5. Renovation Materials - The report highlights the positive impact of government policies aimed at boosting domestic demand, which is expected to enhance consumer confidence and drive sales in the renovation materials sector [15] - It recommends focusing on leading companies that are well-positioned to benefit from these policies, such as North New Building Materials and Arrow Home [15]

Group 1 - The report indicates that the U.S. Treasury yields have decreased, with the 2-year yield down approximately 15 basis points and the 10-year yield down about 7-8 basis points, suggesting a continued downward trend in the yield curve [1][41] - The report highlights a strong rebound in domestic equity markets, with various sectors, including photovoltaic, showing support despite fluctuations in bank stocks [1][42] - The "dual low strategy" in convertible bonds has shown remarkable continuous growth with minimal drawdowns, outperforming traditional equity and pure debt strategies in terms of volatility [1][43] Group 2 - The report emphasizes a preference for medium to low-priced, high-rated convertible bonds with a remaining maturity of 1-3 years, which are expected to provide stable cash flows and have a strong willingness to convert [1][43] - The top ten convertible bonds with the highest potential for price premium recovery include Jin Dan Convertible Bond, He Xing Convertible Bond, and others, indicating specific investment opportunities [1][43][46] - The report notes that the convertible bond market has seen an overall increase of 2.08%, with most sectors experiencing gains, particularly in communications and defense industries [1][15]

Investment Rating - The report maintains a positive outlook on the automotive sector, emphasizing the potential for growth driven by innovation and market dynamics [3][51]. Core Insights - The automotive sector is expected to benefit from three main themes: dividends, smart technology, and robotics, with a recommendation to increase exposure to dividend-focused stocks in the second half of 2025 [3][60]. - The report highlights the significant market response to the launch of Xiaomi's YU7 SUV, which achieved over 240,000 orders within 18 hours, indicating a shift in consumer perception and competitive dynamics in the automotive market [3][51]. - The report projects a total retail sales volume of 23.69 million units for 2025, representing a year-on-year increase of 4.1% [52][60]. Summary by Sections Weekly Review - In the third week of June, the total number of compulsory insurance for passenger vehicles reached 548,000 units, reflecting a week-on-week increase of 21.6% and a month-on-month increase of 40.0% [51]. - The report notes that the automotive parts sector outperformed other segments, with a weekly increase of 4.6% [2][15]. Market Performance - The automotive sector ranked 19th in A-shares and 18th in Hong Kong stocks for the week, with the automotive parts sector showing the best performance [7][12]. - The report indicates that the overall valuation of the global automotive sector remained stable, with A-shares maintaining a consistent valuation [33][46]. Sales Forecast - The report anticipates a strong demand for passenger vehicles driven by updated scrappage policies, projecting a total of 2.369 million units sold in 2025, with a significant contribution from new energy vehicles [52][53]. - The penetration rate for new energy vehicles is expected to reach 60.6% by 2025, with sales projected at 1.435 million units [56][60]. Technological Advancements - The report predicts that L3 autonomous driving technology will see increased adoption among mainstream automakers, with a projected penetration rate of 27% by 2025 [55][56]. - The report emphasizes the importance of technological innovation as a key driver for the automotive sector's healthy development [3][60].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company is experiencing strong growth in its sanitary napkin segment, particularly during the "618" shopping festival, and is expected to see positive performance from new cotton soft towel products [7] - The consumer segment showed a revenue of 1.34 billion yuan in Q1 2025, with a year-on-year growth of 28.8%, driven by key products like sanitary napkins and adult apparel [7] - The medical segment reported a revenue of 1.25 billion yuan in Q1 2025, with a year-on-year growth of 46.3%, supported by high-value products and successful channel expansion [7] Financial Forecasts - Total revenue is projected to grow from 8,185 million yuan in 2023 to 14,630 million yuan in 2027, reflecting a compound annual growth rate (CAGR) of approximately 14.7% [1][8] - Net profit attributable to the parent company is expected to increase from 580.4 million yuan in 2023 to 1,333.2 million yuan in 2027, with a CAGR of about 19.4% [1][8] - The earnings per share (EPS) is forecasted to rise from 1.00 yuan in 2023 to 2.29 yuan in 2027, indicating a strong growth trajectory [1][8] Market Data - The closing price of the company's stock is 39.88 yuan, with a market capitalization of approximately 23.22 billion yuan [5] - The price-to-earnings (P/E) ratio is projected to decrease from 40.01 in 2023 to 17.42 in 2027, suggesting an improving valuation over time [1][8]

Macro Strategy - The current market is entering a risk-off phase, with a potential shift towards growth sectors as seen in previous cycles in early 2024 and late 2025 [1][6][7] - Initial performance is led by TMT sectors, followed by rotation into upstream resources and finance, with a short-term rebound in consumer and manufacturing sectors [1][6] - The macroeconomic fundamentals have not fundamentally changed compared to late 2024 and early 2025, suggesting a continuation of previous funding-driven sector rotations [1][7] - Defensive strategies are recommended, focusing on stable sectors such as banks, utilities, and leading home appliance companies, with A50 and CSI 300 indices as core holdings [1][7] Industry Insights - The report highlights the successful registration of 600,000 pieces of 8-inch silicon carbide substrate capacity by Jing Sheng Machinery (300316), which is expected to benefit from the industrialization of 8-inch substrates [3][10] - The bankruptcy of Wolfspeed due to $6.5 billion in debt has significantly enhanced the competitiveness of domestic suppliers, with prices for 6-inch SiC substrates dropping from $1,500 to below $400 [3][10] - Jing Sheng Machinery's production capacity will reach 900,000 pieces, with 650,000 pieces being 8-inch substrates, allowing the company to capitalize on the trend towards 8-inch SiC substrates, which can reduce costs by 35% [3][10] - The company maintains a profit forecast of 2 billion, 2.2 billion, and 2.7 billion yuan for 2025-2027, corresponding to PE ratios of 17, 16, and 13 times, respectively, and maintains a "buy" rating [5][11] Fixed Income Insights - Yongxi Convertible Bond (118057.SH) is set to begin online subscription on June 26, 2025, with a total issuance scale of 1.165 billion yuan, aimed at advanced packaging technology R&D and working capital [2][8] - The bond has a maturity of 6 years with a credit rating of A+/A+, and the expected listing price is between 120.30 and 134.02 yuan, with a subscription rate of 0.0049% [2][8]

Investment Rating - The report maintains an "Overweight" rating for the gas industry [1] Core Insights - The easing of Middle East tensions has led to a decline in European gas prices, while high temperatures have driven up US gas prices, with domestic prices remaining stable [4][9] - The supply-demand dynamics indicate a slight increase in US gas supply and demand, with total supply rising by 0.2% week-on-week to 1,125 billion cubic feet per day, and total demand increasing by 6.3% to 1,047 billion cubic feet per day [16][24] - The report highlights the ongoing price adjustments in the domestic market, with a gradual implementation of pricing reforms across various cities [40] Price Tracking - As of June 27, 2025, US HH gas prices increased by 4.1% week-on-week, while European TTF prices decreased by 17.8% [9][14] - The domestic LNG ex-factory price was reported at 4,416 CNY per ton, with a slight week-on-week increase of 0.2% [14][29] Supply and Demand Analysis - The report notes that the average total supply of natural gas in the US has increased by 4.0% year-on-year, while total demand has grown by 1.6% year-on-year [16][24] - European gas consumption for the first quarter of 2025 was 160 billion cubic meters, reflecting an 8.9% year-on-year increase [19] Pricing Mechanism Progress - The report indicates that 64% of cities have implemented residential pricing adjustments, with an average increase of 0.21 CNY per cubic meter [40] Important Events - The US gas import tariff has been reduced from 140% to 25%, enhancing the economic viability of US gas imports [47][49] - The European Parliament has agreed to provide greater flexibility regarding gas storage targets, allowing for a deviation of 10% from the 90% storage goal [52] Investment Recommendations - The report recommends focusing on companies that can optimize costs and benefit from pricing reforms, highlighting New Energy, China Gas, and Kunlun Energy as key investment opportunities [53][54] - It also suggests monitoring companies with quality long-term contracts and flexible scheduling capabilities, such as Jiufeng Energy and New Energy [54]

Group 1: Economic Indicators - The weekly ECI supply index is at 50.12%, down 0.03 percentage points from last week, while the demand index is at 49.94%, up 0.01 percentage points[6] - The monthly ECI supply index for June is 50.16%, down 0.07 percentage points from May, and the demand index is at 49.93%, unchanged from May[7] - The ECI investment index is at 49.97%, unchanged from May, while the consumption index is at 49.75%, also unchanged from May[7] Group 2: Domestic Demand and Consumption - Passenger car retail sales have improved, with a year-on-year growth rate of 24% as of June 22, up from 20% earlier in the month[7] - Real estate sales area in 30 major cities recorded a year-on-year decline of 17.8% as of June 28, worsening from a decline of 3.3% in May[7] - The average wholesale price of pork is 20.23 yuan/kg, down 0.07 yuan/kg from the previous week[37] Group 3: External Demand and Trade - Port cargo throughput growth is at 0.8% year-on-year as of June 22, down from 4.4% in May, indicating a reduction in export disturbances due to tariffs[7] - The SCFI index for container shipping rates is at 1861.51 points, down 8.08 points from the previous week[32] Group 4: Monetary Policy and Liquidity - The ELI index is at -1.04%, down 0.02 percentage points from last week, indicating a slight decrease in liquidity[11] - The central bank's net monetary injection for the week is 106.72 billion yuan, following a reverse repurchase operation of 202.75 billion yuan[41]

Investment Rating - The report maintains an "Overweight" rating for the retail industry [1] Core Insights - The introduction of the new heated non-combustible (HNB) products, Glo Hilo and Glo Hilo Plus, by British American Tobacco (BAT) in Japan is expected to drive growth in the HNB market, which is projected to reach a retail value of $389 billion by 2024 [4][11] - The Hilo product has received positive feedback during its trial phase, indicating a potential for rapid sales growth as it enters the broader Japanese market [10] - The global tobacco industry is nearing a trillion-dollar valuation, with new tobacco products expected to capture a larger market share as companies pivot towards harm reduction strategies [11] Industry Trends - The HNB market is anticipated to grow significantly, with BAT and other major tobacco companies increasing their focus on HNB products to facilitate a transition to smoke-free alternatives [11] - The market share for HNB products is currently dominated by Philip Morris International (71%), followed by British American Tobacco (16%) and Japan Tobacco (6%) [11] - The report suggests monitoring companies linked to BAT's HNB products, such as Smoore International, and other key players in the new tobacco product space [11] Market Performance - The report notes that the retail index increased by 4.56% during the week of June 23 to June 27, 2025, while the overall market indices also showed positive performance [12][14] - Year-to-date performance for the retail index stands at a 9.49% increase, indicating a favorable market environment for the retail sector [12][16] Company Valuation - The report includes a valuation table for various companies within the industry, highlighting their market capitalization, earnings projections, and investment ratings [18] - Notable companies such as Proya (P/E of 21), Betaini (P/E of 37), and Marubi (P/E of 48) are recommended for investment, indicating strong growth potential [18]

Core Insights - The report emphasizes a focus on the technology sector for investment opportunities, particularly in growth stocks, as the market index has shown upward momentum [2][6]. - The report outlines a selection of ten key stocks, highlighting their respective industries, market capitalizations, earnings per share (EPS) forecasts, and price-to-earnings (PE) ratios for 2026 and 2027 [2][68]. Group 1: Key Stock Recommendations - **Neway Valve (603699.SH)**: A leading global industrial valve manufacturer, benefiting from a surge in LNG and marine engineering sectors, with expected overseas order growth of over 50% year-on-year in the first half of 2025 [11][12]. - **Yongxing Environmental (601033.SH)**: The sole operator of waste incineration in Guangzhou, with a projected capacity utilization rate of 79% and a commitment to high dividends, expecting a 174% increase in free cash flow in 2024 [17][18]. - **Aerospace Electronics (600879.SH)**: Focused on aerospace electronics and unmanned systems, with anticipated high growth driven by the commercial space industry and demand for satellite communication technologies [26][27]. - **Miaokelando (600882.SH)**: Positioned for long-term growth in the dairy sector, with a focus on product innovation and cost management, expecting significant revenue growth in the upcoming quarters [31][32]. - **Laopu Gold (6181.HK)**: A high-end gold jewelry brand with strong revenue growth, projected to achieve 8.51 billion yuan in revenue in 2024, benefiting from the expanding market for traditional gold products [36][38]. - **Jingzhida (688627.SH)**: Engaged in the semiconductor testing equipment sector, with significant market potential and expected strong performance due to key customer orders [42][43]. - **Shensanda A (000032.SZ)**: Positioned to benefit from the increasing demand for AI infrastructure and applications, with a strong foothold in public data services [47][48]. - **Sanqi Interactive (002555.SZ)**: Anticipating strong performance from new game releases, particularly the upcoming "Douluo Dalu: Hunting Soul World," with high player interest [53][56]. - **CATL (300750.SZ)**: Expected to maintain strong profit growth, with projected net profits of 66.1 billion yuan in 2025, driven by increasing demand for electric vehicle batteries [59][60]. - **Borui Pharmaceutical (688166.SH)**: Forecasted to achieve net profits of 2.6 billion yuan in 2025, with significant potential in the Amylin pipeline, which has attracted substantial investment interest [63][64]. Group 2: Financial Data Overview - The report provides detailed financial forecasts for the ten key stocks, including projected revenues and net profits for 2025 to 2027, highlighting the growth potential across various sectors [68]. - For instance, Neway Valve is expected to generate 74.53 billion yuan in revenue in 2025, with a net profit of 14.49 billion yuan, reflecting strong operational performance [68]. - CATL's projected revenue for 2025 is 472.43 billion yuan, with a net profit forecast of 66.13 billion yuan, indicating robust growth in the electric vehicle battery market [68].