Macro Strategy - The current market is entering a risk-off phase, with a potential shift towards growth sectors as seen in previous cycles [1][14] - Initial performance is led by TMT sectors, followed by rotation to upstream resources and financials, and then a slight rebound in consumption and manufacturing sectors [1][14] - Defensive strategies are recommended, focusing on stable sectors such as banks, utilities, and leading home appliance companies [1][14] Fixed Income - The Youshi Convertible Bond is expected to list at a price between 120.30 and 134.02 CNY, with a subscription rate of 0.0049% [2][15] - The bond has a total issuance scale of 1.165 billion CNY, aimed at advanced packaging technology development and working capital [2][15] Industry Analysis - The computer industry is seeing a shift in regulatory perspectives towards stablecoins, indicating a significant change in the financial system's approach to cryptocurrencies [3][17] - The approval of Guotai Junan Securities (Hong Kong) to provide virtual asset trading services marks a transformation in the non-bank financial ecosystem, enhancing the competitive landscape for digital asset services [4][18] - Xiaomi's automotive strategy emphasizes user-driven innovation, leveraging its extensive user base to enhance product offerings and market positioning [5][20] Automotive Sector - Xiaomi's automotive business is positioned to expand across various price segments, focusing on high-performance models and a comprehensive ecosystem strategy [5][20] - The company plans to invest significantly in R&D, with an annual budget of at least 30 billion CNY allocated to automotive technology [5][20] Heavy Truck Industry - The heavy truck sector is expected to see a recovery in domestic sales, projected to reach 700,000 units, reflecting a year-on-year increase of 16% due to favorable policies [7][21] - Recommended stocks in this sector include China National Heavy Duty Truck Group and Weichai Power, which are expected to benefit from improved performance [7][21] Consumer Goods - Zhou Hei Ya is undergoing a transformation under new management, focusing on optimizing store models and enhancing product offerings, with a projected net profit growth of 54.44% from 2025 to 2027 [8][23] - The company is expanding its distribution channels and exploring international markets to drive growth [8][23]

Investment Rating - The report maintains an "Overweight" rating for the non-bank financial industry, indicating an expected outperformance of over 5% relative to the benchmark in the next 6 months [1][8]. Core Insights - Guotai Junan Securities (Hong Kong) has received approval from the Hong Kong Securities and Futures Commission to upgrade its license, allowing it to provide virtual asset trading services, marking a significant shift in the non-bank financial ecosystem [1]. - The approval positions Guotai Junan as the first Chinese broker to offer comprehensive services in virtual assets, including trading, custody, consulting, issuance, and derivatives, thus transforming its valuation logic [5]. - The report highlights the potential for high-value revenue streams from cryptocurrency and stablecoin trading commissions, which are significantly higher than traditional stock brokerage fees, and the advantages of participating in the issuance of stablecoins and tokenization of real-world assets [5]. - The approval is expected to accelerate competition among leading Chinese brokers, pushing them to adapt their business models towards building cross-border digital financial infrastructure [5]. - The report emphasizes the creation of a collaborative ecosystem around digital asset issuance, circulation, management, and application, which will reshape the entire non-bank financial industry [5]. Summary by Sections Company-Specific Insights - Guotai Junan's strategic upgrade to a digital asset service hub is expected to open new revenue channels and enhance its competitive position in the market [5]. - The company is set to benefit from the high commission rates associated with virtual asset transactions and the efficiency gains from stablecoin clearing [5]. Industry Trends - The approval of Guotai Junan's license is seen as a validation of the operational capabilities of major Chinese brokers in the virtual asset space, paving the way for others like CITIC Securities and CICC to follow suit [5]. - The focus of competition is shifting from low-margin, homogeneous services to developing core capabilities in cross-border digital finance [5]. Non-Bank Financial Ecosystem - The report discusses the emergence of a new balance in the non-bank financial ecosystem, where the compliance wave of virtual assets will activate and reshape the industry chain [5]. - Financial technology firms are expected to see increased demand for services related to blockchain infrastructure and compliance monitoring, while payment institutions will integrate with stablecoin clearing systems to enhance efficiency [5].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The total issuance scale of Yongxi Convertible Bonds is 1.165 billion yuan, and the net proceeds after deducting issuance fees will be used for the R & D and industrialization project of multi - dimensional heterogeneous advanced packaging technology and to supplement working capital and repay bank loans [4]. - The current bond floor valuation is 117.9 yuan, with a YTM of 2.82%. The conversion parity is 101.66 yuan, and the parity premium rate is - 1.63%. The bond terms are average, and the total share capital dilution rate is 9.11% [12][13][14]. - It is expected that the listing price of Yongxi Convertible Bonds on the first day will be between 120.30 and 134.02 yuan, and the subscription rate is expected to be 0.0049%. It is recommended to actively subscribe [4][16]. - Since 2019, the revenue of Yongxi Electronics has steadily increased, with a compound growth rate of 58.07% from 2019 - 2024. The sales net profit margin and gross profit margin have fluctuated, the financial expense ratio has increased, and the sales expense ratio and management expense ratio have decreased [4][19]. 3. Summary According to Relevant Catalogs 3.1. Convertible Bond Basic Information - The issuance and subscription schedule of Yongxi Convertible Bonds is from June 24, 2025 (T - 2) to July 2, 2025 (T + 4), including steps such as publishing prospectuses, online roadshows, priority allotment for original shareholders, and online subscriptions [10]. - The basic terms of Yongxi Convertible Bonds include a code of 118057.SH, a face value of 100 yuan, a term of 6 years, a rating of A +/A +, and specific coupon rates from the first to the sixth year. The conversion period is from January 2, 2026, to June 25, 2031, with an initial conversion price of 28.39 yuan per share [11]. - The proceeds from the issuance will be used for the R & D and industrialization project of multi - dimensional heterogeneous advanced packaging technology (900 million yuan) and to supplement working capital and repay bank loans (265 million yuan) [12]. - The bond - related indicators show a pure bond value of 117.90 yuan, a pure bond premium rate of - 15.18%, and a pure bond YTM of 2.82%. The equity - related indicators show a conversion parity of 101.66 yuan and a parity premium rate of - 1.63% [12] 3.2. Investment Subscription Suggestions - By referring to comparable convertible bonds in terms of parity, rating, and scale, and recent newly - listed convertible bonds, and using an empirical model, it is estimated that the conversion premium rate of Yongxi Convertible Bonds on the first - day of listing will be around 25%, and the corresponding listing price will be between 120.30 and 134.02 yuan [15][16]. - It is expected that the original shareholders' priority allotment ratio will be 65.87%, and the online subscription rate will be 0.0049% [17]. 3.3. Analysis of the Underlying Stock's Fundamental Aspects 3.3.1. Financial Data Analysis - Yongxi Electronics is mainly engaged in the development of integrated circuit packaging and testing solutions, and the packaging and testing of various integrated circuit chips. Since 2019, its revenue has steadily increased, with a compound growth rate of 58.07% from 2019 - 2024. In 2024, the revenue was 3.609 billion yuan, a year - on - year increase of 9.82%. The net profit attributable to the parent company has fluctuated, with a compound growth rate of - 210.86% from 2019 - 2024 [18][19]. - The company's revenue mainly comes from integrated circuit packaging and testing services, and the product structure changes annually. From 2022 - 2024, the revenue from this business accounted for 98.98%, 99.64%, and 97.96% of the main business revenue respectively [20]. - The sales net profit margin and gross profit margin of Yongxi Electronics have fluctuated. The financial expense ratio has increased, while the sales expense ratio and management expense ratio have decreased. The sales gross profit margin and net profit margin are significantly higher than the industry average [24]. - The company's sales expenses are relatively high, mainly composed of employee salaries, business entertainment expenses, and market development expenses. The sales expenses increased significantly in 2023 and 2024 [25]. 3.3.2. Company Highlights - Yongxi Electronics focuses on high - end advanced packaging and testing of integrated circuits. Its product structure is dominated by advanced packaging technologies, covering four major categories and involving cutting - edge technologies, with over 1,900 mass - produced varieties [31]. - The company has successfully entered the supply chains of well - known design companies at home and abroad, and has established a good reputation in emerging fields [31]. - The company continuously strengthens R & D investment, and its core team has experience in leading industry companies. It is actively expanding production capacity, and the second - phase project will significantly improve production and sales scale and service capabilities [31]. - The company has won honors such as the "Enterprise for Major Integrated Circuit Projects" at the national level and the "Large, Excellent, and Strong" Cultivated Enterprise in Ningbo, demonstrating its industry status [31].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company is entering a new phase of product launches, with significant growth potential in its probiotic and therapeutic drug segments. The report anticipates a robust increase in revenue and net profit over the next few years, driven by new product introductions and market expansion [5][6]. Summary by Sections Company Overview - The company, Minsheng Health, has a rich history dating back to 1926 and is known for its flagship product, 21 Jinweita, which was the first multivitamin OTC product in China. The company has shown steady growth with a CAGR of 13% in revenue and 18% in net profit from 2018 to 2024 [5][10][12]. Market and Industry Analysis - The OTC market in China is experiencing significant growth, with the market size increasing from 128.9 billion yuan in 2016 to 221.4 billion yuan in 2024, reflecting a CAGR of 7%, which is higher than the global average of 4% [5][37]. The vitamin and mineral segment is expected to maintain a growth rate of around 9% in the coming years, supported by an aging population and increasing health awareness among consumers [45][50]. Product Development and Growth Potential - The company is expanding its product matrix, with a focus on traditional vitamins and minerals, probiotics, and therapeutic drugs. The report highlights the expected launch of new products, including Minoxidil for hair loss and Varenicline for smoking cessation, which are projected to contribute significantly to revenue starting in 2025 [5][18][19]. Financial Projections - The report forecasts the company's total revenue to reach approximately 797.38 million yuan in 2025, with a year-on-year growth of 24.35%. Net profit is expected to be around 111.37 million yuan, reflecting a growth rate of 21.27% [1][5]. The company's P/E ratio is projected to decrease from 57.79 in 2023 to 44.44 in 2025, indicating an attractive valuation as growth accelerates [1]. Management and Governance - The company has a stable and experienced management team, with a clear ownership structure that supports strategic continuity. The major shareholder is Hangzhou Minsheng Pharmaceutical, ensuring strong control over the company's direction [18][20]. The introduction of an equity incentive plan in 2024 aims to enhance team motivation and align interests with long-term growth targets [22].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company, Zhou Hei Ya, is recognized as a leader in the domestic leisure cooked food industry, particularly in marinated duck products. The founder has returned to management, initiating a series of strategic reforms aimed at improving store efficiency and expanding distribution channels, which are expected to yield positive results [8][13]. - The company has experienced fluctuations in revenue and profit but is now positioned for a new growth cycle due to recent management changes and strategic adjustments [28][49]. Summary by Sections 1. Company Overview - Zhou Hei Ya has grown to become a leading player in the leisure cooked food sector, with a total of 3,031 retail stores by 2024. The company reported revenue of 2.451 billion yuan in 2024, with a compound annual growth rate (CAGR) of 6.57% from 2013 to 2024 [8][13]. - The market for leisure marinated products is relatively concentrated, with Zhou Hei Ya maintaining a strong market share [13]. 2. Business Strategy and Reforms - The company has shifted its focus from rapid expansion to enhancing store quality, resulting in a net closure of 785 stores in 2024, while simultaneously achieving a 12% increase in average store revenue [50]. - Zhou Hei Ya is actively restructuring its distribution channels, including partnerships with high-end membership stores and supermarkets, which are expected to drive significant revenue growth in the coming years [8][50]. 3. Financial Projections - The report forecasts net profits for 2025, 2026, and 2027 to be 151.67 million yuan, 188.10 million yuan, and 219.17 million yuan, respectively, with year-on-year growth rates of 54.44%, 24.02%, and 16.52% [1][8]. - The company's price-to-earnings (P/E) ratios for 2025 and 2026 are projected to be 31.23x and 25.18x, indicating a favorable valuation compared to peers [8][1]. 4. Market Position and Competitive Landscape - Zhou Hei Ya's product matrix is diverse, with a strong emphasis on classic flavors and new product development aimed at younger consumers. The company has also entered cross-industry collaborations to enhance brand visibility [50][43]. - The leisure marinated food market is expected to continue expanding, with a projected market size of 350 billion yuan by 2025, reflecting a CAGR of 6.19% from 2018 to 2024 [45].

Investment Rating - The report does not explicitly state an investment rating for the automotive industry or Xiaomi's automotive business Core Insights - Xiaomi's automotive success is fundamentally driven by its "Xiaomi Methodology," which has allowed it to disrupt the traditional automotive industry through a user-driven approach rather than a product-driven one [2] - The next 2-3 years for Xiaomi's automotive business will focus on a comprehensive product strategy, rapid technological follow-up, and maintaining a user-centric ecosystem [2] Summary by Sections Xiaomi Business Line Overview - Xiaomi's revenue is primarily derived from smartphones, IoT products, internet services, and innovative businesses like smart electric vehicles, with internet services contributing significantly to gross profit [8][11] Xiaomi Automotive Business Review and Outlook - Xiaomi's automotive journey began with a significant investment of 10 billion CNY, with the first model, SU7, expected to launch in March 2024 [36] - The SU7 has shown promising sales, surpassing the Model 3 in the 20-30 million CNY price segment, with an average monthly sales of 26,500 units in early 2025 [52] - The automotive business is expected to narrow losses and potentially achieve profitability by Q3 or Q4 of 2025 [40] Technology Analysis - The SU7 features advanced design elements aimed at reducing drag and enhancing performance, with a focus on aerodynamics and efficient energy use [67] - The vehicle's battery technology, including the new Kirin 2 battery, offers impressive specifications such as a peak voltage of 897V and a maximum discharge power of 1330kW, significantly enhancing performance and charging capabilities [78][79]

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1][10]. Core Insights - The company is expected to experience significant growth in its nuclear medicine sector, with the STC3141 sepsis product projected to become a major global drug. The report emphasizes the potential of new products in various therapeutic areas, including respiratory, critical care, and ophthalmology [3][9]. - The company has a diversified product portfolio and a robust pipeline, with a focus on innovative therapies and strategic acquisitions to enhance its market position [9][18]. Summary by Sections 1. Company Overview - The company operates in three main segments: nuclear medicine, pharmaceutical technology, and biotechnology, with a strong emphasis on innovation and market expansion through acquisitions [9][18]. 2. Nuclear Medicine Sector - The nuclear medicine segment is rapidly growing, with a focus on the core product Yttrium-90 (Y[90]) and a pipeline of 12 innovative products targeting various cancers. The company has established partnerships with leading international firms to enhance its research and development capabilities [9][35][37]. 3. Pharmaceutical Technology - The pharmaceutical technology segment is expected to see growth from new products in the respiratory and critical care fields, as well as in ophthalmology. The company is well-positioned to capitalize on the market opportunities presented by these new therapies [3][9]. 4. Financial Projections - The company forecasts revenue growth from 116.45 billion HKD in 2024 to 146.63 billion HKD by 2027, with net profit expected to rise from 24.68 billion HKD to 27.64 billion HKD in the same period. The projected P/E ratios indicate that the company is undervalued compared to its peers [1][10][24]. 5. Market Potential - The global nuclear medicine market is projected to grow significantly, with estimates suggesting a rise from 10.7 billion USD in 2023 to 22.8 billion USD by 2030. The Chinese market for radiopharmaceuticals is also expected to expand rapidly, driven by increasing demand and regulatory support [36][38].

Macro Strategy - The current market is entering a risk-off phase, with a potential shift back to growth sectors as seen in early 2024 and late 2025 [1][9] - Initial performance is led by TMT sectors, followed by rotation to upstream resources and finance, with a short-term rebound in consumption and manufacturing [1][9] - Defensive strategies are recommended, focusing on stable sectors such as banks, utilities, and leading home appliance companies [1][9] Fixed Income - The bond market is experiencing low volatility, with the 10-year government bond yield decreasing from 1.642% to 1.638% during the week [2][10] - Economic data, including retail sales and manufacturing indices, shows mixed results, impacting market expectations for monetary policy [2][10] - The issuance of government bonds and local special bonds has been robust, with significant amounts issued in recent months [2][10][11] Industry Analysis - The real estate sector has shown a decline in new home sales, with a year-on-year decrease of 18.5% in new home transaction area [20] - The second-hand housing market has seen a slight increase in transactions, with a year-on-year growth of 1.4% [20] - Land transaction volumes have decreased significantly, with a year-on-year drop of 31.8% in building area sold [20] Company Analysis - Xiamen Tungsten Co., Ltd. is projected to achieve net profits of 8.1 billion, 9.3 billion, and 11.2 billion yuan for 2025-2027, reflecting growth rates of 63%, 15%, and 20% respectively [7] - The company is positioned in the solid-state battery materials sector, specifically lithium sulfide, which is expected to enhance its competitive edge [7] - A target valuation of 35 times earnings is set for 2025, leading to a target market cap of 28.2 billion yuan and a target price of 67 yuan per share [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to see significant profit elasticity in the future, despite short-term disruptions in the humanoid robot production schedule due to changes in leadership at overseas giants [3] - The company has established a clear leading position in the market, with a projected contribution of 3.5 billion yuan in profit from a shipment estimate of 1 million units by 2028-2029 [3] - The Q2 performance exceeded market expectations, with revenue forecasted between 15.04 billion to 17.78 billion yuan, representing a year-on-year growth of 10% to 30% [9] Financial Forecasts - Total revenue is projected to grow from 24.558 billion yuan in 2023 to 56.366 billion yuan by 2027, with a compound annual growth rate (CAGR) of 45.17% [1] - Net profit attributable to shareholders is expected to increase from 2.921 billion yuan in 2023 to 6.470 billion yuan in 2027, with a CAGR of 39.98% [1] - The earnings per share (EPS) is forecasted to rise from 0.70 yuan in 2023 to 1.56 yuan in 2027 [1] Market Data - The closing price of the stock is 25.70 yuan, with a market capitalization of approximately 106.57 billion yuan [7] - The price-to-earnings (P/E) ratio is projected to decrease from 36.48 in 2023 to 16.47 in 2027 [1][10] Segment Performance - The traditional refrigeration segment is expected to see a revenue increase of 20% to 30% in Q2, driven by seasonal demand and recovery in overseas markets [9] - The automotive parts segment is projected to grow by 10% to 20% in Q2, with significant contributions from major domestic clients [9]

Group 1: Geopolitical Risks - The recent escalation of conflict between Israel and Iran has raised global geopolitical risks, with significant military actions observed since June 13, 2025[2][18] - If Iran blocks the Strait of Hormuz, it could trigger a broader regional conflict involving multiple countries, leading to increased market volatility[2][18] Group 2: US-China Relations - Despite a temporary easing of tariffs, uncertainties remain in US-China relations, particularly in technology and national security sectors, which could lead to further tariff increases[1][13] - The fluctuating tariff policies under Trump's administration create a perception of instability, impacting market confidence[1][13] Group 3: Market Dynamics - The transition from a risk-on to a risk-off phase is evident, with global equity assets showing signs of weakness since the tariff reversals began on April 7, 2025[3][19] - Market sentiment is shifting towards defensive assets like gold and the US dollar, while oil prices may rise due to geopolitical tensions[3][19] Group 4: Domestic Economic Indicators - Domestic consumption growth remains stable in Q2 2025, supported by holiday effects and fiscal data, but export growth faces a potential 10% tariff increase[4][23] - The overall economic outlook is characterized as "weakly stable," with market movements increasingly influenced by international events and capital flows[4][23] Group 5: Capital Flows and Market Behavior - Margin trading balances have stabilized around 1.8 trillion yuan, with institutional positions decreasing from 73.6% to 69.9%, indicating insufficient incremental capital[5][24] - Market trading behavior shows a trend towards structural rotation, with a notable shift from small-cap to large-cap stocks as market dynamics evolve[5][24]