Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to benefit significantly from the acceleration of solid-state battery industrialization, as it continues to deliver core equipment for solid-state batteries [7] - The company has successfully delivered multiple sets of core equipment for solid-state batteries to a leading global battery manufacturer, establishing itself as a leader in the industry [7] - The solid-state battery equipment market is anticipated to see a rise in both demand and pricing, particularly for key processes such as dry electrode equipment and stacking machines [7] - The government and application sectors are increasingly supporting the solid-state battery industry, with significant investments and trials being conducted by major automotive manufacturers [7] - Profit forecasts for the company indicate a rebound in net profit from 286.1 million in 2024 to 2.228 billion by 2027, with corresponding dynamic P/E ratios decreasing from 123.33 to 15.84 [1][7] Financial Summary - Total revenue is projected to decline from 11.855 billion in 2024 to 13.2 billion in 2025, before increasing to 20.1 billion by 2027 [1] - The company's net profit is expected to recover significantly, with a forecast of 1.057 billion in 2025 and 2.228 billion in 2027 [1] - The earnings per share (EPS) is projected to rise from 0.18 in 2024 to 1.42 in 2027 [1] - The company's total assets are expected to grow from 38.827 billion in 2025 to 52.585 billion in 2027, indicating a strong financial position [8]

1. Report Industry Investment Rating There is no information provided regarding the industry investment rating in the report. 2. Core Views - The Xizhen Convertible Bond (111022.SH) began online subscription on June 18, 2025, with a total issuance scale of 520 million yuan. After deducting issuance fees, the net raised funds will be used for the Langfang Zhenhua Quanjing Shen Automobile Parts Project [4]. - The current bond floor valuation is 95.23 yuan, with a YTM of 2.81%. The convertible bond has a 6 - year term, and its pure - bond value offers good protection [4]. - The current conversion parity is 100.3 yuan, with a parity premium rate of - 0.31%. The conversion period is from December 24, 2025, to June 17, 2031 [4]. - The bond terms are standard, and the total equity dilution rate is 6.11%, with a relatively small dilution pressure on the equity [4]. - It is estimated that the listing price of the Xizhen Convertible Bond on the first day will be between 123.58 and 137.42 yuan, and the subscription success rate is expected to be 0.0018%. It is recommended to subscribe actively [4]. - Wuxi Zhenhua's main business includes stamping parts, sub - assembly processing, mold, and selective precision electroplating processing. The company has a complete technical system and stable cooperation with many well - known customers [4]. - Since 2019, the company's revenue and net profit attributable to the parent have been growing steadily, with a compound growth rate of 10.23% and 27.23% respectively from 2019 - 2024 [4]. - The company's main business income accounts for a high proportion of total revenue, and the business is stable. The sales net profit margin and gross profit margin fluctuate, while the sales expense ratio remains low [4]. 3. Summary by Directory 3.1. Convertible Bond Basic Information - The Xizhen Convertible Bond's issuance and subscription schedule is from June 16 to June 22, 2025, including steps such as prospectus publication, online roadshows, priority subscription for original shareholders, and online subscription [11]. - The basic terms of the convertible bond include a 6 - year term, a face value of 100 yuan, a coupon rate ranging from 0.20% to 2.30% from the first to the sixth year, and a redemption price of 113% of the face value at maturity. The conversion price is 31.98 yuan, and the conversion period is from December 24, 2025, to June 17, 2031 [12]. - The raised funds will be used for the Langfang Zhenhua Quanjing Shen Automobile Parts Project (420 million yuan) and working capital replenishment (100 million yuan) [13]. - The bond's pure - bond value is 117.80 yuan, with a pure - bond premium rate of - 15.11% and a YTM of 2.81%. The conversion parity is 101.78 yuan, with a parity premium rate of - 1.75% [13][14]. 3.2. Investment Subscription Recommendations - Based on comparable targets and empirical results, considering the good bond floor protection, rating, and scale attractiveness of the Xizhen Convertible Bond, it is estimated that the first - day listing conversion premium rate will be around 30%, and the listing price will be between 123.58 and 137.42 yuan [16][17]. - It is estimated that the original shareholders' priority subscription ratio will be 70.89%, and the online subscription success rate will be 0.0018% [18]. 3.3. Underlying Stock Fundamental Analysis 3.3.1. Financial Data Analysis - Wuxi Zhenhua's main business consists of stamping parts, sub - assembly processing, mold, and selective precision electroplating processing. The company has a complete technical system and stable cooperation with many customers [19]. - From 2019 to 2024, the company's revenue and net profit attributable to the parent have grown steadily, with a compound growth rate of 10.23% and 27.23% respectively. In 2024, the net profit attributable to the parent was 378 million yuan, a year - on - year increase of 36.30% [21]. - The main business income accounts for a high proportion of total revenue, and the business is stable. The sales net profit margin and gross profit margin fluctuate, while the sales expense ratio remains low, and the financial expense ratio is slightly higher than the industry average [24]. 3.3.2. Company Highlights - Wuxi Zhenhua has a complete stamping and welding technology system, covering the entire process from pre - process design analysis and stamping mold research and development to post - stamping and welding technology, forming a unique competitive advantage [32]. - The company has established long - term stable cooperation relationships with many well - known domestic and foreign vehicle manufacturers [32]. - In 2023, the company added the selective precision electroplating processing business through the acquisition of Wuxi Kaixiang, becoming a new profit growth point [33].

Macro Strategy - The Federal Reserve did not lower interest rates in June and removed the judgment of higher unemployment and inflation from its statement, indicating a more stagflationary economic outlook [1][11] - The Fed revised down its GDP growth forecast for the US to 1.4% for Q4 2025 and raised the unemployment rate forecast to 4.5%, while also increasing the PCE inflation forecast to 3.0% [1][11] - The dot plot distribution has become more hawkish, with a significant number of officials expecting no rate cuts this year, reflecting concerns over inflation risks [1][11] Industry Analysis - The bus industry showed a year-on-year increase in production and exports in May, with Yutong Bus expected to achieve a net profit of 46.3 billion yuan in 2025, growing at 12% annually [6][16] - Jinlong Automobile is projected to have a significant profit rebound, with net profits expected to reach 4.4 billion yuan in 2025, reflecting a 182% increase [6][16] Recommended Stocks - Liyuanheng is positioned to benefit from the recovery in the lithium battery equipment industry, with a projected net profit of 0.6 billion yuan in 2025, and a corresponding PE ratio of 96 [7][17] - Zhenyu Technology is expected to see a net profit of 4.1 billion yuan in 2025, with a growth rate of 63%, supported by its advancements in precision manufacturing and robotics [8][19] - Xiaogoods City has completed the招商 of its jewelry sector and plans to establish a Hong Kong subsidiary to enhance its cross-border payment ecosystem, with projected net profits of 42.3 billion yuan in 2025 [9][21]

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [7][16]. Core Viewpoints - The lithium battery equipment industry is expected to recover, with solid-state batteries creating growth opportunities [7]. - The company is positioned to benefit from the domestic lithium battery production expansion, as major manufacturers restart capacity [8]. - The company is accelerating its overseas expansion, with multiple equipment deliveries to clients in North America, Asia, and Europe [9]. - The company has seen a significant increase in high-margin consumer lithium battery equipment orders, which is expected to improve its operational performance [10]. - The company is advancing its solid-state battery initiatives, having successfully bid for its first complete line of sulfide solid-state battery equipment [11]. - The company reported a turnaround to profitability in Q1 2025, with cost reduction and efficiency measures showing initial results [12][14]. Financial Projections - The company is projected to achieve a net profit of 0.6 billion, 1.3 billion, and 1.6 billion yuan for the years 2025 to 2027, respectively, with corresponding P/E ratios of 96, 43, and 33 [16]. - Revenue forecasts indicate a total revenue of 2.48 billion yuan in 2024, with a significant recovery expected in subsequent years [18]. - The gross margin is anticipated to improve significantly, with consumer lithium battery equipment expected to have a gross margin of approximately 26% in 2024 [10].

Market Outlook and ETF Strategy - Current market expectations are weak, with the Shanghai Composite Index experiencing a narrow fluctuation after a rebound, primarily due to ongoing US-China tensions, escalating geopolitical uncertainties, and a lack of new narratives to catalyze market movements [2] - The strategy suggests a return to a broad technology focus while avoiding sectors with low earnings visibility, especially as companies prepare to disclose mid-year earnings forecasts [2] - The report highlights a historical low win rate for dividend stocks in June, suggesting a potential pullback risk after dividend distributions [2] Industry Trends and ETF Recommendations - Short-term opportunities are expected to revolve around specific segments within the technology growth sector, emphasizing the importance of timing in capitalizing on market rotations [3] - Recommendations include focusing on the AI industry chain, both upstream and downstream, with specific attention to: 1. Upstream AI infrastructure, including high demand for AI computing power and semiconductor sectors, suggesting an increase in allocation to 5G communication and semiconductor ETFs [3] 2. Downstream consumer electronics, where valuations are at historical lows, and the gaming sector is expected to benefit from stable licensing and AI technology integration [3] 3. The defense sector, particularly aerospace, is highlighted due to potential growth opportunities amid geopolitical tensions [3] ETF Strategy Composition - The report lists a selection of ETFs recommended for investment, including: - E Fund CSI Innovation and Entrepreneurship 50 ETF with a scale of 81.5 billion [4] - Harvest CSI Semiconductor Materials and Equipment Theme ETF with a scale of 22.7 billion [4] - Harvest CSI 5G Communication Theme ETF with a scale of 67.4 billion [4] - Other ETFs focusing on AI, consumer electronics, and military sectors are also included in the strategy [4]

1. Report Industry Investment Rating There is no mention of the industry investment rating in the provided content. 2. Core Viewpoints of the Report - The Huachen Convertible Bond (113695.SH) will start online subscription on June 20, 2025, with a total issuance scale of 460 million yuan. After deducting issuance fees, the net raised funds will be used for the construction project of the new - energy power equipment intelligent manufacturing industrial base (Phase I), the construction project of the new - energy power equipment digital factory, and supplementing working capital [3]. - The current bond floor valuation is 84.22 yuan, and the YTM is 2.97%. The bond floor protection is average. The current conversion parity is 100.4 yuan, and the parity premium rate is - 0.42%. The convertible bond terms are mediocre, and there is a certain dilution pressure on the equity [3]. - It is expected that the listing price of the Huachen Convertible Bond on the first day will be between 118.84 and 132.40 yuan, and the subscription success rate is expected to be 0.0016%. It is recommended to actively subscribe [3]. - Since 2019, the company's revenue has been growing steadily, with a compound growth rate of 24.34% from 2019 - 2023. The net profit attributable to the parent has also been fluctuating, with a compound growth rate of 15.25% from 2019 - 2023. The company's sales net profit margin and gross profit margin have remained stable [3]. 3. Summary According to the Directory 3.1. Convertible Bond Basic Information - The Huachen Convertible Bond has a total issuance scale of 460 million yuan, a bond term from June 20, 2025, to June 19, 2031, and a credit rating of A +/A +. The initial conversion price is 23.53 yuan per share, and the conversion period is from December 26, 2025, to June 19, 2031 [3][9]. - The bond floor valuation is 84.22 yuan, and the YTM is 2.97%. The conversion parity is 100.42 yuan, and the parity premium rate is - 0.42%. The convertible bond terms are mediocre, and the total equity dilution rate is 10.63% [3][12][13]. 3.2. Investment Subscription Suggestions - By referring to comparable targets and empirical results, considering the average bond floor protection, rating, and scale attractiveness of the Huachen Convertible Bond, it is expected that the conversion premium rate on the first - day of listing will be around 25%, and the corresponding listing price will be between 118.84 and 132.40 yuan [3][14][15]. - It is expected that the priority subscription ratio of original shareholders will be 72.49%, and the online subscription success rate will be 0.0016% [16][17]. 3.3. Fundamental Analysis of the Underlying Stock 3.3.1. Financial Data Analysis - Since 2019, the company's revenue has been growing steadily, with a compound growth rate of 24.34% from 2019 - 2023. In 2023, the company achieved an operating income of 1.51 billion yuan, a year - on - year increase of 47.40%. The net profit attributable to the parent has also been fluctuating, with a compound growth rate of 15.25% from 2019 - 2023. In 2023, it achieved a net profit attributable to the parent of 121 million yuan, a year - on - year increase of 33.11% [3][19]. - Jiangsu Huachen's operating income mainly comes from dry - type transformers, and the product structure is adjusted annually. From 2021 - 2023, the proportion of dry - type transformer business revenue in the main business revenue was 57.77%, 53.26%, and 39.12% respectively [3][20][22]. - From 2019 - 2023, the company's sales net profit margin and gross profit margin remained stable, the sales expense rate first decreased and then increased, and the financial expense rate and management expense rate fluctuated [3][23]. 3.3.2. Company Highlights - The company is a national high - tech enterprise and a national specialized and sophisticated "little giant" enterprise. It has won many honors and has established a perfect R & D system and quality control system [27]. - The company has mastered multiple core technologies, has good technical reserves, and provides technical support and experience for the implementation of the fundraising projects [28].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Viewpoints - The company has a strong growth trajectory in precision manufacturing, particularly in the fields of electric motor cores and lithium battery structural components, with a significant increase in revenue and profit margins expected [8][14]. - The entry into the humanoid robot sector is seen as a strategic move, with high technical barriers and substantial profit potential [8][14]. - The company is expected to benefit from automation improvements and cost reductions, leading to a recovery in profit margins [8][14]. Summary by Sections 1. Company Overview - The company has been deeply involved in the precision mold industry for over 20 years, expanding into electric motor cores and lithium battery structural components, achieving rapid growth [14]. - Established in 1994, the company has evolved from manufacturing steel needles to becoming a leader in precision stamping molds and structural components [14]. 2. Financial Performance - The company’s revenue grew from 1.193 billion to 7.129 billion yuan from 2020 to 2024, with a CAGR of 42.96% [23]. - The net profit increased from 130 million to 254 million yuan during the same period, reflecting a CAGR of 14.42% [23]. - The company’s gross margin for lithium battery structural components is projected to rise to over 12% by 2025 [8][23]. 3. Precision Molding Business - The precision stamping mold technology is critical for downstream component performance, and the company is recognized as a domestic leader in this field [33][40]. - The company’s molds are used in various industries, including automotive and industrial control, with a focus on high efficiency and precision [33][40]. 4. Lithium Battery Structural Components - The company has established strong partnerships with major clients like CATL, leading to a rapid increase in market share [8][14]. - Revenue from lithium battery structural components is expected to grow by over 35% starting in 2025, driven by increased demand from second and third-tier battery clients [8][14]. 5. Humanoid Robot Sector - The company is entering the humanoid robot market, focusing on the production of precision components such as lead screws, which are essential for robot functionality [8][14]. - The lead screw market is characterized by high technical barriers, and the company is well-positioned to capture significant market share due to its existing precision manufacturing capabilities [8][14]. 6. Profit Forecast - The company’s projected net profits for 2025, 2026, and 2027 are 413 million, 575 million, and 785 million yuan respectively, with year-on-year growth rates of 62.67%, 39.21%, and 36.52% [1][8].

Monetary Policy Insights - The FOMC meeting on June 19, 2025, maintained the policy interest rate at [4.25, 4.5]% and removed the judgment regarding higher unemployment and inflation risks[1] - The dot plot indicates a more hawkish distribution, with 7 members expecting no rate cuts this year, compared to 4 in March[1] - The median projection for the federal funds rate for 2025 remains unchanged, despite higher inflation and unemployment forecasts[1] Economic Forecast Adjustments - The GDP growth forecast for Q4 2025 was revised down from 1.7% to 1.4%, while the unemployment rate was adjusted up from 4.4% to 4.5%[1] - PCE inflation expectations for Q4 2025 increased from 2.7% to 3.0%, and core PCE inflation from 2.8% to 3.1%[1] - The economic outlook suggests a more stagflationary environment, with increased uncertainty around growth and inflation[1] Future Rate Cut Expectations - The market has adjusted the probability of a rate cut in September 2025 to 70.7%, with an expected cumulative cut of 1.9 times (47.5 basis points) by the end of the year[1] - The expectation is that the total number of rate cuts this year may not exceed 2, primarily due to concerns over inflation risks[1] - The potential for a new Federal Reserve chair in November may influence future monetary policy expectations[1] Risk Factors - Risks include the potential for significant delays in the implementation of Trump's policies and the possibility of a liquidity crisis if high interest rates are maintained for too long[1] - The pace of inflation decline may not meet expectations, adding to economic uncertainty[1]

Macro Strategy - The report indicates that exports are expected to show a trend of high in the first half and low in the second half of the year, with a warning about the risk of negative export growth in the fourth quarter due to high base effects [1][9][10] Fixed Income - Anker Convertible Bond is projected to have a listing price between 127.29 and 141.30 RMB, with a subscription rate of 0.0036%. The bond has a solid debt protection and is rated AA+/AA+ [2][12] - Electric Chemical Convertible Bond is expected to list between 131.46 and 145.94 RMB, with a subscription rate of 0.0022%. The bond also has good debt protection and is rated AA/AA [2][14] Industry Analysis - The non-bank financial sector is currently undervalued, providing a safety margin. The insurance industry is expected to benefit from economic recovery and rising interest rates, with a focus on health and pension insurance [3][15][16] - The defense and military industry is highlighted for the CJ-1000A engine, which is crucial for the C919 aircraft, showcasing significant technological advancements and potential market growth in the commercial aviation sector [4][17][19] - The computer industry is experiencing a surge in demand for consumer-grade 3D printers, with a reported 40% year-on-year increase in production. This sector is expected to grow rapidly due to the rise of creative industries and lower user barriers [6][20][21] Recommended Stocks - The report recommends Kuaijishan (601579) for its growth potential, projecting net profits of 2.3 billion, 2.8 billion, and 3.3 billion RMB for 2025-2027, with corresponding PE ratios of 44, 36, and 31 [7][22]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company has completed the leasing of the jewelry sector in the global digital trade center, which is expected to contribute approximately 1.4 billion yuan in selection fee revenue [7] - The company plans to establish a wholly-owned subsidiary in Hong Kong to diversify its payment services, enhancing its cross-border financial service capabilities [7] - The company is actively applying for a stablecoin license in Hong Kong, aiming to provide efficient and low-cost cross-border payment solutions [7] - The controlling shareholder has increased its stake in the company, reflecting confidence in its future development [7] - The profit forecast for the company shows a significant increase in net profit from 4.23 billion yuan in 2025 to 6.83 billion yuan in 2027, with corresponding P/E ratios decreasing from 26 to 16 [7] Financial Projections - Total revenue is projected to grow from 15.74 billion yuan in 2024 to 33.23 billion yuan in 2027, with a compound annual growth rate (CAGR) of 21.68% [7] - The net profit attributable to the parent company is expected to rise from 3.07 billion yuan in 2024 to 6.83 billion yuan in 2027, reflecting a CAGR of 19.46% [7] - The latest diluted EPS is forecasted to increase from 0.56 yuan in 2024 to 1.24 yuan in 2027 [7]