- Model Name: RPV (Renewed Correlation of Price and Volume); Model Construction Idea: The RPV factor integrates intraday and overnight information by dividing price and volume into four quadrants, effectively identifying the reversal and momentum effects of price-volume correlation factors through the monthly IC mean; Model Construction Process: The RPV factor is constructed by combining the best representatives of intraday and overnight price-volume correlations, incorporating "trading volume" information in the form of correlation, and completing information integration; Model Evaluation: The RPV factor is novel and effective[1][6][7] - Model Name: SRV (Smart Relative Volume); Model Construction Idea: The SRV factor splits intraday price changes into morning and afternoon changes, calculates the "smart" indicator by minute, and uses the correlation coefficient between the afternoon "smart" turnover rate and afternoon price changes; Model Construction Process: The SRV factor combines the more effective intraday price-volume correlation factor and the overnight price-volume correlation factor, where the turnover rate is replaced by the turnover rate of the last half-hour of the previous day, which has a higher proportion of informed trading; Model Evaluation: The SRV factor performs better than the RPV factor[1][6][7] Model Backtest Results - RPV Model, Annualized Return: 14.69%, Annualized Volatility: 7.75%, IR: 1.90, Monthly Win Rate: 72.79%, Maximum Drawdown: 10.63%[1][7][10] - SRV Model, Annualized Return: 17.48%, Annualized Volatility: 6.50%, IR: 2.69, Monthly Win Rate: 75.74%, Maximum Drawdown: 3.74%[1][7][10] Factor Construction and Evaluation - Factor Name: RPV; Factor Construction Idea: The RPV factor integrates intraday and overnight information by dividing price and volume into four quadrants, effectively identifying the reversal and momentum effects of price-volume correlation factors through the monthly IC mean; Factor Construction Process: The RPV factor is constructed by combining the best representatives of intraday and overnight price-volume correlations, incorporating "trading volume" information in the form of correlation, and completing information integration; Factor Evaluation: The RPV factor is novel and effective[1][6][7] - Factor Name: SRV; Factor Construction Idea: The SRV factor splits intraday price changes into morning and afternoon changes, calculates the "smart" indicator by minute, and uses the correlation coefficient between the afternoon "smart" turnover rate and afternoon price changes; Factor Construction Process: The SRV factor combines the more effective intraday price-volume correlation factor and the overnight price-volume correlation factor, where the turnover rate is replaced by the turnover rate of the last half-hour of the previous day, which has a higher proportion of informed trading; Factor Evaluation: The SRV factor performs better than the RPV factor[1][6][7] Factor Backtest Results - RPV Factor, Annualized Return: 14.69%, Annualized Volatility: 7.75%, IR: 1.90, Monthly Win Rate: 72.79%, Maximum Drawdown: 10.63%[1][7][10] - SRV Factor, Annualized Return: 17.48%, Annualized Volatility: 6.50%, IR: 2.69, Monthly Win Rate: 75.74%, Maximum Drawdown: 3.74%[1][7][10]

Investment Rating - The report maintains an "Accumulate" rating for the specialized equipment industry [1] Core Insights - The lithium battery equipment companies have fully accounted for impairment losses, and both domestic and international expansions are expected to significantly boost performance [1] - The solid-state battery industrialization process is accelerating, which is likely to benefit leading equipment manufacturers [1] Industry Trends - Domestic lithium battery manufacturers are returning to an expansion cycle, while overseas players are ramping up high-quality orders. For instance, CATL's Hong Kong IPO raised HKD 35.3 billion, with approximately 90% allocated to the construction of a factory in Hungary, which has a planned total capacity of 72 GWh [1] - The lithium battery equipment industry has accounted for a total impairment provision of CNY 5.7 billion for 2023-2024, indicating that the risk has been sufficiently mitigated [1] - The solid-state battery is becoming a mainstream technology, with companies like BYD planning to start mass production by 2027. Leading equipment manufacturers like Xianlead are uniquely positioned to provide complete solid-state battery production lines [1] Investment Recommendations - The report recommends focusing on leading lithium battery equipment companies such as Xianlead and Hangke Technology, as well as laser welding leader Lianying Laser and platform-based battery equipment manufacturer Liyuanheng [1]

Quantitative Factors and Construction 1. Factor Name: Valuation Deviation (EPD) Factor - **Construction Idea**: The EPD factor is constructed by combining the mean-reversion strategy commonly used in the CTA domain with the valuation repair logic based on fundamentals. It leverages the mean-reversion characteristics of the PE valuation metric[7][2] - **Construction Process**: 1. Identify the mean-reversion property of the PE ratio as the core valuation metric 2. Construct the EPD factor to capture valuation deviations based on this mean-reversion logic[7][2] - **Evaluation**: The factor effectively captures valuation deviations and demonstrates strong performance in backtesting[7] 2. Factor Name: Slow Deviation (EPDS) Factor - **Construction Idea**: The EPDS factor is derived from the EPD factor by removing the probability of changes in individual stock valuation logic, which is proxied by the stock's information ratio[7][2] - **Construction Process**: 1. Start with the EPD factor 2. Use the information ratio of individual stocks to filter out those with altered valuation logic 3. Construct the EPDS factor to focus on slow valuation deviations[7][2] - **Evaluation**: The factor further refines the valuation deviation logic and improves performance metrics compared to the EPD factor[7] 3. Factor Name: Valuation Anomaly (EPA) Factor - **Construction Idea**: The EPA factor is constructed by further refining the EPDS factor. It removes the influence of beta, growth, and value styles to isolate the "valuation anomaly" logic[7][2] - **Construction Process**: 1. Start with the EPDS factor 2. Remove the impact of beta, growth, and value styles 3. Construct the EPA factor to focus solely on valuation anomalies[7][2] - **Evaluation**: The EPA factor demonstrates the highest performance among the three factors, with strong backtesting results and robustness[7] --- Factor Backtesting Results 1. Valuation Deviation (EPD) Factor - Annualized Return: 17.52%[2][8][12] - Annualized Volatility: 10.00%[2][8][12] - IR: 1.75[2][8][12] - Monthly Win Rate: 70.65%[2][8][12] - Maximum Drawdown: 8.93%[2][8][12] 2. Slow Deviation (EPDS) Factor - Annualized Return: 16.25%[2][8][12] - Annualized Volatility: 5.72%[2][8][12] - IR: 2.84[2][8][12] - Monthly Win Rate: 78.80%[2][8][12] - Maximum Drawdown: 3.10%[2][8][12] 3. Valuation Anomaly (EPA) Factor - Annualized Return: 17.23%[2][8][12] - Annualized Volatility: 5.11%[2][8][12] - IR: 3.37[2][8][12] - Monthly Win Rate: 80.98%[2][8][12] - Maximum Drawdown: 3.12%[2][8][12] --- Additional Insights - In May 2025, the EPA factor's 5-group long portfolio achieved a return of 3.88%, while the short portfolio returned 3.27%, resulting in a long-short spread of 0.61%[2][15] - The EPA factor's monthly RankIC mean during the backtesting period (2010/01–2022/05) was 0.061, with a RankICIR of 4.75[2][7] - The EPA factor's 5-group long-short portfolio achieved an annualized return of 18.29%, an IR of 3.76, a win rate of 86.99%, and a maximum drawdown of 1.53% during the backtesting period[7]

Group 1: Macro Strategy Insights - The report indicates that exchange rates and non-tariff barriers may become more critical tools in trade conflicts, potentially replacing tariffs as the primary means of trade engagement [1][9][10] - Domestic foreign trade enterprises believe that due to fundamental conflicts, the Sino-US trade negotiations may experience significant ups and downs, necessitating ongoing risk management for exports to the US [1][9] - If tariffs fail to achieve their intended competitive goals, the US government may resort to non-tariff barriers and currency manipulation, drawing parallels to historical trade competition phases [1][9] Group 2: Currency and Economic Indicators - The report suggests that the RMB exchange rate may gradually decline to the range of 7.17-7.18, with expectations of a dual-directional fluctuation between 7.15 and 7.22 [11][12] - The ECI index indicates a slight recovery in supply and demand, but the manufacturing PMI remains in a contraction zone, reflecting weak overall economic momentum [13] - The report highlights that the US trade deficit has narrowed significantly, with April imports showing a historic decline of 19.8%, indicating a slowdown in the "import rush" effect driven by tariff policies [16][17] Group 3: Fixed Income and Structured Financing - The report notes that the valuation of city investment ABS is less correlated with duration compared to credit bonds, suggesting that shorter-duration ABS may offer better risk-return profiles [3][4] - The weighted average coupon rate of city investment ABS is approximately 3.25%, which is lower than the overall market for credit bonds, indicating a favorable financing environment for structured products [18] - The report emphasizes the importance of the quality of underlying assets and the issuing entity's qualifications in determining the valuation of city investment ABS [4][18] Group 4: Company-Specific Insights - Pinduoduo's Q1 2025 performance fell short of expectations, leading to a downward adjustment in profit forecasts for 2025-2027, reflecting a strategic focus on ecosystem investment for sustainable growth [6] - Gilead Sciences' ASC40 acne treatment achieved all primary and secondary endpoints in Phase III trials, demonstrating superior efficacy compared to FDA-approved alternatives [7] - The report on SOTON Robotics indicates a significant drop in revenue for Q1 2025, but an increase in gross margin, suggesting potential for recovery through new product launches and market expansion [8]

Group 1 - The report maintains a cautiously optimistic view on the Hong Kong stock market, highlighting external risks and the need for new momentum for upward movement [1][2] - The report emphasizes the importance of AI technology and consumer sectors, suggesting a defensive allocation in high-dividend stocks due to ongoing overseas risks [2][3] - The report lists a selection of "golden stocks" with detailed financial metrics, including Tencent Holdings, Alibaba, Kuaishou, and others, indicating their potential for growth and investment value [3][72] Group 2 - Tencent Holdings is recognized for its strong competitive advantages across multiple business areas, particularly in gaming and advertising, with expectations for EPS growth driven by high-margin business expansion [11][12] - Alibaba is noted for its leadership in AI and cloud computing, with anticipated revenue growth from its cloud services and improved profitability from its core business segments [19][20] - Kuaishou is expected to benefit from its AI capabilities and content consumption trends, with projections for significant revenue growth in the coming years [24][25] - Xiaomi is highlighted for its innovative automotive business and strong performance in the smartphone market, with expectations for continued growth in high-end products [30][31] - China Petroleum & Chemical Corporation (Sinopec) is expected to see improved performance due to lower international oil prices and a high dividend payout ratio, making it attractive for income-focused investors [43][44] - Jiufang Zhitu Holdings is positioned for growth in the online investment sector, leveraging technology to enhance its product offerings and market share [51][52] - Anta Sports is recognized for its strong brand performance and strategic acquisitions, which are expected to enhance its competitive position in the market [56][57] - New Energy is anticipated to benefit from privatization efforts and improved profit structures, with a significant valuation upside [60][61] - Innovent Biologics is projected to achieve substantial revenue growth driven by its expanding product pipeline and effective cost management [66][67]

Investment Rating - The report maintains a "Buy" rating for Pinduoduo (PDD) [7] Core Views - The company's Q1 2025 performance fell short of expectations, with revenue of RMB 95.67 billion, a year-on-year increase of 10%, but below the Bloomberg consensus estimate of RMB 101.6 billion. Non-GAAP net profit was RMB 16.92 billion, down 45% year-on-year, also below the expected RMB 27.88 billion [12][16] - Pinduoduo is focusing on high-quality platform ecology and supply chain capability construction, despite a slowdown in short-term revenue growth. The company is implementing measures such as "reduction, support, and governance" across various operational aspects to promote sustainable development [13][16] - The company has initiated a RMB 100 billion support program to enhance investments on both the merchant and consumer sides, aiming to stimulate demand and support small and medium-sized businesses [16] Summary by Sections Revenue Growth and Ecosystem Development - In Q1 2025, Pinduoduo's advertising revenue reached RMB 48.72 billion, up 15% year-on-year, exceeding market expectations. However, commission revenue was RMB 46.95 billion, up 6% year-on-year, falling short of expectations [12][13] - The company emphasizes high-quality development and continues to expand its "new quality supply" to benefit consumers and create a win-win ecosystem for users, merchants, and the platform [13][16] Profitability Challenges - The gross margin for Q1 2025 was 57.2%, a decrease of 5.1 percentage points year-on-year, indicating short-term profitability challenges. The sales expense ratio increased to 34.9%, reflecting higher costs associated with ecosystem investments and promotional activities [18][21] - The report notes that the company faces pressure on the expense side, with sales, management, and R&D expense ratios showing varying trends [21][22] Earnings Forecast and Investment Rating - Due to increased investments in ecosystem development, the report adjusts the Non-GAAP net profit forecasts for 2025-2027 to RMB 98.55 billion, RMB 130.32 billion, and RMB 153.98 billion, respectively. The corresponding PE ratios are projected to be 10.2, 7.7, and 6.5 [24][28] - The report maintains a "Buy" rating, reflecting confidence in the company's long-term growth potential despite short-term profit sacrifices [24]

Investment Rating - The report maintains a "Buy" rating for Pinduoduo (PDD) [7][24] Core Views - The company's Q1 2025 performance fell short of expectations, with revenue of RMB 95.67 billion, a year-on-year increase of 10%, but below the Bloomberg consensus estimate of RMB 101.6 billion. Non-GAAP net profit was RMB 16.92 billion, down 45% year-on-year, also below the expected RMB 27.88 billion [12][16] - Pinduoduo is focusing on high-quality platform ecology and supply chain capability construction, emphasizing sustainable development through various measures such as "reduction, support, and governance" [13][16] - The company is implementing a RMB 100 billion support initiative to bolster both merchant and consumer sides, aiming to stimulate demand and assist small and medium-sized businesses [16][24] Summary by Sections Revenue Growth and Ecosystem Development - In Q1 2025, Pinduoduo's advertising revenue reached RMB 48.72 billion, up 15% year-on-year, exceeding market expectations, while commission revenue was RMB 46.95 billion, up 6% year-on-year, but below expectations [12][13] - The company continues to promote its high-quality development strategy and platform ecosystem, leveraging digital advantages to expand "new quality supply" and create a win-win ecosystem for users, merchants, and the platform [13][16] Gross Margin and Profitability Challenges - The gross margin for Q1 2025 was 57.2%, a decrease of 5.1 percentage points year-on-year, indicating short-term profitability challenges [18][21] - The report notes an increase in expenses, with sales expense ratio rising to 34.9%, up 7.9 percentage points year-on-year, while management and R&D expense ratios remained relatively stable [21][24] Earnings Forecast and Investment Rating - Due to increased investments in ecosystem development, the report adjusts the Non-GAAP net profit forecasts for 2025-2027 to RMB 98.55 billion, RMB 130.32 billion, and RMB 153.98 billion, respectively, with corresponding PE ratios of 10.2, 7.7, and 6.5 [24][28]

Group 1: Capital Market News - The China Securities Regulatory Commission (CSRC) released revised "Major Asset Restructuring Management Measures" on June 4, 2025, aimed at deepening M&A market reforms and stimulating market vitality[1] - Key modifications include establishing a phased payment mechanism for restructuring shares, extending the registration validity period to 48 months, and introducing a simplified review process[1] - Since the implementation of the "Six M&A Rules," the market scale and activity have significantly increased, with over 1,400 asset restructuring disclosures, including more than 160 major restructurings, and completed major restructuring transactions exceeding 200 billion yuan, which is 11.6 times last year's figures[1] Group 2: Industry News - By 2027, a unified horizontal ecological compensation mechanism for the Yangtze and Yellow Rivers will be established, with a focus on cross-regional compensation mechanisms for key rivers[12] - The plan aims to enhance ecological environment quality and service functions by 2035, covering major river systems and their tributaries, with a focus on improving national ecological security[15] Group 3: Market Performance - As of June 4, 2025, the North Exchange A-share index had 266 constituent stocks with an average market capitalization of 3.025 billion yuan, and the trading volume reached 24.56 billion yuan, up 9.81% from the previous trading day[16] - The North Exchange 50 index rose by 1.10%, while the Shanghai Composite Index increased by 0.42%, indicating a positive market trend[16] Group 4: Stock Performance - Among individual stocks, KQ Co., Ltd. led with a 17.57% increase, followed by KunGong Technology at 9.28% and Henghe Co., Ltd. at 8.63%[17] - Conversely, CaiSai Laser and Youji Co., Ltd. experienced declines of 8.79% and 5.83%, respectively[17]

Group 1: Regulatory Changes - The China Securities Regulatory Commission (CSRC) released revised "Major Asset Restructuring Management Measures" to deepen M&A market reforms, effective from June 4, 2025[6] - Key modifications include a phased payment mechanism for restructuring shares, extending the registration validity period to 48 months, and introducing a simplified review process[7] - The new rules aim to enhance market vitality, with over 1,400 disclosed asset restructurings since the introduction of the "M&A Six Articles," including more than 160 major restructurings[7] Group 2: Market Performance - As of June 4, 2025, the North Exchange A-share segment consists of 266 companies with an average market capitalization of 3.025 billion[13] - The North Exchange 50 Index rose by 1.10%, while the Shanghai Composite Index increased by 0.42%[13] - The trading volume for the North Exchange reached 24.56 billion, a 9.81% increase from the previous trading day[13] Group 3: Industry Developments - The Ministry of Finance and other departments aim to establish a unified horizontal ecological compensation mechanism for the Yangtze and Yellow Rivers by 2027, with comprehensive coverage by 2035[10] - The initiative includes developing compensation mechanisms for various ecological elements and enhancing ecological environment quality[12] Group 4: Risk Factors - Potential risks include individual stock earnings falling short of expectations, intensified industry competition, increased trade frictions, and regulatory changes not meeting expectations[22]

Investment Rating - The industry investment rating is "Overweight" indicating an expected outperformance of the industry index relative to the benchmark by more than 5% in the next six months [81]. Core Insights - Data is the key driver for the rapid breakthroughs and practical applications of embodied intelligence technology, similar to the path of autonomous vehicles. High-quality datasets are essential for training and deploying intelligent agents to effectively complete complex tasks [3][17]. - There is a current scarcity of high-quality and diverse datasets for embodied intelligence, which is crucial for the training of robots. The need for standardized and validated datasets is a pressing requirement in the industry [3][17]. - The report emphasizes the importance of both real and simulated data for training embodied intelligence models, highlighting their complementary roles in the data collection process [22][24]. Summary by Sections 1. Basic Concepts of Embodied Intelligence Datasets - Embodied intelligence datasets are categorized into real data and simulated data, with real data collected through physical interactions and simulated data generated in virtual environments [22][24]. 2. Current Status of Domestic and International Real Datasets - Various high-quality embodied intelligence datasets have been released, such as AgiBot World and Open X-Embodiment, showcasing a wide range of tasks and skills [30][31]. 3. Current Status of Domestic and International Simulated Datasets - The report discusses the technological pathways for scene generation and simulation in creating simulated datasets, emphasizing the importance of both methods in training [50][51]. 4. Related Companies - Key companies to watch in the embodied intelligence data sector include Junsheng Electronics, Haitian Ruisheng, Suochen Technology, and Huaru Technology, which are involved in data collection and simulation [76].