Investment Rating - The report maintains a rating of "Buy" for the utility sector [1]. Core Insights - The report emphasizes the potential for value reassessment of photovoltaic (PV) assets, particularly through the integration of green electricity direct connection and physical asset tokenization [2]. - It highlights the government's push for green electricity direct connection, mandating that self-generated renewable energy should account for at least 60% of total available generation [5]. - The report identifies key investment opportunities across various segments of the utility sector, including thermal, hydro, nuclear, and green energy [2]. Summary by Sections 1. Electricity Consumption - In the first four months of 2025, total electricity consumption reached 3.16 trillion kWh, reflecting a year-on-year increase of 3.1%, with notable growth in the primary industry at 10.0% [14][15]. 2. Power Generation - Cumulative power generation for the same period was 2.98 trillion kWh, showing a slight year-on-year increase of 0.1%. The generation from thermal, hydro, nuclear, wind, and solar sources varied, with solar power seeing a significant increase of 19.5% [25][26]. 3. Electricity Prices - The average electricity purchase price in May 2025 was 394 RMB/MWh, down 3% year-on-year but up 0.4% month-on-month [42]. 4. Thermal Power - The price of thermal coal at Qinhuangdao port was 609 RMB/ton as of June 6, 2025, reflecting a year-on-year decrease of 30.2% [47]. - The cumulative installed capacity of thermal power reached 1.46 billion kW, with a year-on-year increase of 4.1% [49]. 5. Hydropower - The water level at the Three Gorges Reservoir was 153 meters, consistent with previous years, indicating stable hydrological conditions [55]. - The cumulative installed capacity of hydropower was 440 million kW, with a year-on-year increase of 3.0% [57]. 6. Nuclear Power - In 2024, 11 new nuclear units were approved, indicating a steady growth trajectory for the nuclear sector [26]. 7. Green Energy - The report highlights the collaboration between GCL-Poly and Ant Group on a 200 million RMB photovoltaic RWA project, marking a significant step in the digital financing of green assets [5].

Investment Rating - Maintain "Buy" rating for the environmental protection industry [1] Core Insights - The acceleration of unmanned sanitation bidding indicates rapid industry development and technological iteration [8] - Decrease in capital expenditure in waste incineration leads to increased dividends, while improvements in heating and IDC enhance ROE and valuation [9] - Water utility operations show steady growth and high dividends, with water price reforms reshaping growth and valuation [12] Summary by Sections Industry Trends - Unmanned sanitation bidding is accelerating, with a procurement project for 100 small autonomous cleaning vehicles announced, budgeted at 28.6 million yuan [8] - The waste incineration sector is seeing a decline in capital expenditure, leading to improved free cash flow and increased dividends [9] - The water utility sector is experiencing stable growth, with a projected revenue of 655 billion yuan in 2024, and a net profit of 112 billion yuan, reflecting a 27% increase [12] Key Recommendations - Recommended companies include: Huanlan Environment, Green Power, Yongxing Co., and others for their strong dividend performance and growth potential [4] - Focus on companies like Yuehai Investment and Xingrong Environment for their robust cash flow and dividend commitments [12] Equipment and Technology - The penetration rate of new energy sanitation vehicles increased by 6.14 percentage points to 14.55% in the first four months of 2025, with sales of 3,570 units, a 73% year-on-year increase [21][22] - The market for bio-diesel remains challenging, with prices stable and profits under pressure due to rising raw material costs [36] Financial Performance - Companies like Junxin Co. and Green Power are expected to increase their cash dividends significantly in 2024, with Junxin's cash dividend projected at 507 million yuan, a 37% increase [9] - The water utility sector is set to benefit from recent price reforms, with Guangzhou implementing significant price increases for residential water [13][14]

Investment Rating - Maintain "Buy" rating for the environmental protection industry [1] Core Insights - The acceleration of unmanned sanitation bidding indicates rapid industry development and technological iteration [8] - Decrease in capital expenditure in waste incineration leads to improved dividends, while heating and IDC collaborations enhance ROE and valuation [9] - Water utility operations show steady growth and high dividends, with water price reforms reshaping growth and valuation [12] Summary by Sections Industry Trends - Unmanned sanitation bidding is accelerating, with significant projects announced, such as the procurement of 100 autonomous cleaning vehicles with a budget of 28.6 million yuan [8] - The waste incineration sector is experiencing a decline in capital expenditure, leading to improved free cash flow and increased dividends. For instance, Junxin Co. plans to distribute 507 million yuan in cash dividends in 2024, a 37% increase year-on-year [9] - Water utility sector performance remains robust, with a projected revenue of 655 billion yuan in 2024, despite a 2% decline, and a 27% increase in net profit [12] Key Recommendations - Recommended stocks include Hanlan Environment, Green Power, Yongxing Co., and others, focusing on companies with strong dividend policies and growth potential [4] - The report highlights the importance of water price reforms, with Guangzhou implementing significant price increases, which are expected to drive profitability [13][14] Equipment and Technology - The penetration rate of new energy sanitation vehicles increased by 6.14 percentage points to 14.55% in the first four months of 2025, with sales of new energy sanitation vehicles rising by 73% [21][22] - The report notes the profitability challenges in biodiesel production, with current prices leading to negative margins [36] Market Performance - The environmental protection and public utilities index rose by 0.81% from June 2 to June 6, 2025, underperforming compared to the broader market indices [44] - Top-performing stocks in the environmental sector included Jingyuan Environmental and Juguang Technology, with significant price increases [46]

Investment Rating - The report maintains an "Accumulate" rating for the gas industry [1] Core Viewpoints - The report highlights that facility maintenance and high temperatures have driven up gas prices in Europe and the US, while domestic gas prices remain stable [6][11] - It anticipates a gradual recovery in demand, with a focus on cost optimization for gas companies and the continued adjustment of pricing mechanisms [50] Price Tracking - As of June 6, 2025, gas prices have changed week-on-week as follows: US HH +1.8%, European TTF +8.5%, East Asia JKM +2.4%, China LNG ex-factory +0.1%, and China LNG CIF +4% [11][13] - The average total supply of natural gas in the US decreased by 0.5% week-on-week to 1,124 billion cubic feet per day, while total demand fell by 1.5% to 962 billion cubic feet per day [16] Supply and Demand Analysis - The report notes that the average natural gas consumption in China decreased by 1.3% year-on-year to 1,393 billion cubic feet in the first four months of 2025, attributed to a warmer winter in 2024 [24][30] - In Europe, natural gas consumption for January-February 2025 was 115.5 billion cubic meters, up 11% year-on-year [17] Pricing Progress - Nationwide, 63% of cities have implemented residential pricing adjustments, with an average increase of 0.21 yuan per cubic meter [37] - The report indicates that there is still a 10% room for price adjustment in city gas companies [37] Important Events - The US gas import tariff has been reduced from 140% to 25%, enhancing the economic viability of US gas imports [44][46] - The European Commission has voted to introduce more flexible natural gas storage filling targets to avoid supply shortages and price spikes [49] Investment Recommendations - The report recommends focusing on companies that can optimize costs and benefit from the ongoing pricing adjustments, such as New Energy, China Gas, and Kunlun Energy [50][51] - It also suggests monitoring companies with quality long-term contracts and flexible scheduling capabilities, like Jiufeng Energy and New Energy [51]

Investment Rating - Maintain "Buy" rating for the utility sector, focusing on green electricity direct connection and photovoltaic asset value reassessment [1][2] Core Insights - The report emphasizes the potential for value reassessment of photovoltaic assets, particularly through innovative financing models like RWA (Real World Asset) [2][5] - The National Development and Reform Commission and the National Energy Administration are promoting green electricity direct connection, aiming for a self-consumption rate of at least 60% for new energy projects [5] - The report highlights various investment opportunities across different segments of the utility sector, including thermal, hydro, nuclear, and green energy [2] Summary by Sections 1. Market Review - The SW utility index decreased by 0.13% during the week of June 2-6, 2025, with notable performances in gas and photovoltaic sectors [10] - Top gainers included ST Jinhong (+17.3%) and Zhongtai Shares (+15.0%), while top losers included Guangdong Electric A (-8.8%) and Jiangsu New Energy (-6.5%) [10][13] 2. Power Sector Tracking 2.1 Electricity Consumption - Total electricity consumption from January to April 2025 reached 3.16 trillion kWh, a year-on-year increase of 3.1% [14] - Growth rates improved across all sectors, with the primary industry seeing a 10.0% increase [14] 2.2 Power Generation - Cumulative power generation for the same period was 2.98 trillion kWh, reflecting a slight year-on-year increase of 0.1% [25] - Notable growth in nuclear (+12.7%) and photovoltaic (+19.5%) generation, while thermal generation decreased by 4.1% [25] 2.3 Electricity Prices - The average grid purchase price in May 2025 was 394 RMB/MWh, down 3% year-on-year but up 0.4% month-on-month [42] 2.4 Thermal Power - As of June 6, 2025, the price of thermal coal at Qinhuangdao port was 609 RMB/ton, a significant year-on-year decrease of 30.2% [47] - The cumulative installed capacity of thermal power reached 1.46 billion kW, with a year-on-year increase of 4.1% [49] 2.5 Hydropower - The Three Gorges Reservoir's water level was normal at 153 meters, with inflow and outflow rates showing mixed trends [55] - Cumulative installed capacity for hydropower reached 440 million kW, with a slight year-on-year increase of 3.0% [57] 2.6 Nuclear Power - The approval of 11 new nuclear units in 2024 indicates a robust growth trajectory for the sector [2] 2.7 Green Energy - The report highlights the potential for green energy growth, with significant increases in installed capacity for wind (+18.5%) and photovoltaic (+74.6%) from January to April 2025 [2][5]

Group 1: Macro Strategy Insights - The historical review of global trade indicates that exchange rates and non-tariff barriers may become more critical tools in trade confrontations, potentially replacing tariffs [1][7] - Domestic foreign trade enterprises anticipate that the US-China trade negotiations will be fraught with challenges, necessitating ongoing risk management regarding exports to the US [1][7] - If tariffs fail to achieve their intended competitive objectives, the US government may resort to non-tariff barriers and currency manipulation, drawing parallels to past trade conflicts with Japan and Germany [1][7] Group 2: Currency Exchange Rate Analysis - The short-term outlook suggests that the RMB central parity may gradually decline to the range of 7.17-7.18, with expectations of dual-directional fluctuations in the USD/CNY exchange rate [2][9] - The market is forming a consistent appreciation expectation for the RMB, driven by a weakening US dollar index and increasing demand for RMB-denominated financial assets [9][10] - Risks of "panic settlement" may arise if export enterprises respond to a strengthening RMB and a declining dollar index, potentially leading to concentrated demand for currency exchange [9][10] Group 3: Fixed Income Market Insights - The current market for urban investment ABS is characterized by a predominance of enterprise ABS products, with a weighted average coupon rate of approximately 3.25%, which is lower than the overall market for urban investment bonds [15][16] - The urban investment ABS market shows a significant mid-to-long-term characteristic, aligning with the cash flow characteristics of underlying assets such as infrastructure projects [15][16] - The distribution of urban investment ABS by underlying asset type indicates that fee income rights and debt rights ABS dominate the market, with a focus on stable cash flows from public utility fees [15][16] Group 4: Trade Policy and Economic Indicators - The recent US trade data shows a significant decline in imports, indicating a potential slowdown in the "import rush" effect driven by tariff policies [13][14] - The US consumer confidence index has improved, suggesting a resilient economic outlook, while inflation indicators remain stable, reflecting cautious monetary policy from the Federal Reserve [13][14] - The ongoing legal challenges to Trump's tariff policies highlight the uncertainty in global trade dynamics, with potential implications for future trade negotiations and tariff implementations [13][14]

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology industry [1] Core Insights - Chinese innovative drugs performed beyond expectations at the ASCO conference, highlighting companies such as Innovent Biologics and Kelun-Biotech as key players [1][2] - The report suggests a ranking of favorable sub-industries: Innovative Drugs > CXO > Traditional Chinese Medicine > Medical Devices > Pharmacies > Pharmaceutical Commerce [2][11] - The report emphasizes the growth potential in the innovative drug sector, with specific stock recommendations including Innovent Biologics, Zai Lab, BeiGene, Kelun-Biotech, and others [2][11] Summary by Sections Industry Performance - The A-share pharmaceutical index has increased by 1.1% this week and 7.8% year-to-date, outperforming the CSI 300 by 0.3% and 9.4% respectively [10] - The Hong Kong biotechnology index has shown a significant increase of 47.8% year-to-date, outperforming the Hang Seng Technology Index by 29.5% [10] Innovative Drug Developments - The ASCO conference showcased 73 oral presentations from China, marking a historical high, with 184 ADC pipeline studies, 89 of which were from China [5][16] - Notable advancements include the FDA IND approval for the first circular RNA drug HM2002 and the NDA submission for the first oral PROTAC estrogen receptor degrader [2][5] Stock Recommendations - Growth-oriented stock picks focus on innovative drugs, including Innovent Biologics, Zai Lab, and others [2][11] - For undervalued stocks, the report suggests looking into traditional Chinese medicine companies such as Zhaoke Ophthalmology and Tianshili [11] - High dividend yield stocks are recommended from the traditional Chinese medicine sector, including Jiangzhong Pharmaceutical and Yunnan Baiyao [11] Market Trends - The report notes a strong performance in the A-share market, particularly in the innovative drug sector, despite some adjustments in individual stocks [10][11] - The report highlights the increasing trend of business development (BD) transactions in the innovative drug sector, with a total of 94 license-out deals completed in 2024, amounting to $51.9 billion, a 26% increase year-on-year [17]

2025 年 06 月 08 日 证券分析师 曾朵红 执业证书：S0600516080001 021-60199793 zengdh@dwzq.com.cn 证券分析师 阮巧燕 海外算力催化利好 AIDC，欧洲电动车再超 预期 增持（维持） [Table_Tag] [Table_Summary] 投资要点 证券研究报告·行业跟踪周报·电力设备 电力设备行业跟踪周报 2025-06-02 《关税缓和需求小幅向上，固态新技 术如火如荼》 2025-06-02 东吴证券研究所 1 / 43 执业证书：S0600517120002 021-60199793 ruanqy@dwzq.com.cn 研究助理 许钧赫 执业证书：S0600123070121 xujunhe@dwzq.com.cn 行业走势 -14% -10% -6% -2% 2% 6% 10% 14% 18% 22% 26% 2024-6-11 2024-10-9 2025-2-6 2025-6-6 电力设备 沪深300 相关研究 《马斯克回归 Optimus 量产在即，汽 车反"内卷式"竞争》 ◼ 电气设备 6714 上涨 1.38%，表现强于大盘。本周 ...

Investment Rating - The report assigns a "Buy" rating for Longxin General [1] Core Views - Longxin General is positioned as a leader in the motorcycle industry, transitioning from an OEM to three major self-owned brands, focusing on the motorcycle and general machinery sectors [7][13] - The company has experienced steady revenue growth, with a significant profit turnaround starting in 2022, driven by its core motorcycle business [21][22] - The strategic transformation initiated in 2021 has allowed the company to focus on its main business, shedding non-core operations and enhancing operational efficiency [32][42] Summary by Sections Company Overview - Longxin General, founded in 1993, has evolved from an engine OEM to a prominent motorcycle manufacturer with a diverse product matrix, including the high-end brand VOGE and the electric motorcycle brand BICOSE [13][15] - The company has established a strong manufacturing capability through partnerships with global brands like BMW, enhancing its competitive edge [14] Company Transformation - The strategic pivot in 2021 marked a significant shift towards focusing on motorcycles and general machinery, aiming to strengthen its core business [32][41] - The successful completion of a share restructuring in December 2024 has positioned the company under new control, potentially enhancing synergies within the motorcycle sector [48] Brand Development - The launch of the VOGE brand in 2018 has allowed Longxin to penetrate the high-displacement motorcycle market, with a robust product lineup and competitive pricing [7][20] - The company has expanded its sales network significantly, with 990 domestic and 1,165 overseas sales points by the end of 2024 [7] Growth Outlook - The motorcycle market presents substantial growth potential, with the domestic high-displacement penetration rate expected to increase significantly [7][20] - Longxin's product matrix is set to benefit from the introduction of new models, with expectations for continued upward momentum in brand performance [7][20] Financial Forecast - Revenue projections for Longxin General indicate a growth trajectory, with expected revenues of 20.88 billion, 24.02 billion, and 26.42 billion yuan for 2025, 2026, and 2027 respectively [1] - Corresponding net profits are forecasted to reach 1.87 billion, 2.29 billion, and 2.57 billion yuan for the same years, reflecting a strong growth outlook [1]

证券研究报告·行业跟踪周报·建筑材料 建筑材料行业跟踪周报 家庭消费仍有潜力，期待服务消费刺激 2025 年 06 月 08 日 增持（维持） [Table_Tag] [Table_Summary] 投资要点 证券分析师 黄诗涛 执业证书：S0600521120004 huangshitao@dwzq.com.cn 证券分析师 房大磊 执业证书：S0600522100001 fangdl@dwzq.com.cn 证券分析师 石峰源 执业证书：S0600521120001 shify@dwzq.com.cn 行业走势 -20% -16% -12% -8% -4% 0% 4% 8% 12% 16% 2024/6/11 2024/10/9 2025/2/6 2025/6/6 建筑材料 沪深300 相关研究 《建筑业 PMI 底部区间波动，推荐消 费建材》 2025-06-03 《继续推荐消费建材》 2025-05-25 东吴证券研究所 1 / 20 请务必阅读正文之后的免责声明部分 ◼ 本周（2025.6.3–2025.6.6，下同）：本周建筑材料板块（SW）涨跌幅 0.63%， 同期沪深 300、万得全 A 指数 ...