Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is building a comprehensive semiconductor ecosystem through its IDM platform, with AI computing driving opportunities in high-end optical chips [3] - The company has achieved significant technological breakthroughs, including a continuous power breakthrough of 132W for high-power single-tube chips and mass production of 50W products [3] - The company is benefiting from the explosion of AI computing power and supply chain restructuring, with high-end optical communication chips entering a phase of capacity release and technological iteration [4] - The company is expanding its business boundaries from laser chips to high-growth sectors such as automotive radar, optical computing, and new energy [3][4] Financial Summary - Total revenue is projected to decline from 290.21 million in 2023 to 272.64 million in 2024, followed by a significant increase to 477.12 million in 2025, 682.28 million in 2026, and 921.08 million in 2027 [1] - The net profit attributable to the parent company is expected to improve from a loss of 91.95 million in 2023 to a profit of 36.80 million in 2025, 72.82 million in 2026, and 150.41 million in 2027 [1] - The earnings per share (EPS) is forecasted to turn positive in 2025, reaching 0.21 yuan per share, and increasing to 0.85 yuan per share by 2027 [1] - The price-to-earnings (P/E) ratio is projected to decrease significantly from -283.74 in 2023 to 173.45 in 2027, indicating improving profitability [1]

Group 1 - The report identifies 2026 as a pivotal year for intelligent driving, marking the transition to a commercial model for B-end autonomous vehicles, with a potential explosion in C-end adoption expected by 2028 [3][45] - Three core drivers for L4 RoboX investment opportunities are highlighted: technological advancements, cost reductions, and operational improvements, particularly in first-tier cities [3][6] - The report proposes a new valuation framework for L4 RoboX, emphasizing the revenue-generating capacity of intelligent vehicles based on their ownership and capability levels [3][6] Group 2 - The past decade of intelligent driving is characterized as a 0-1 introduction phase, with significant hardware and software iterations leading to major capability upgrades [4][11] - The report outlines three distinct phases of intelligent driving development from 2015 to 2025, detailing the evolution from initial high valuations to a focus on performance and software opportunities [4][21] - The transition from hardware-centric to software-centric investment strategies is emphasized, with a shift towards AI-driven pricing models for intelligent vehicles [4][32] Group 3 - Key catalysts for 2026 include significant model iterations from major players like Tesla and Xiaopeng, as well as the acceleration of RoboX deployments by various companies [7][45] - The report suggests a focus on B-end software companies over C-end hardware companies for investment, highlighting specific stocks in both H-shares and A-shares markets [7][45] - The RoboX commercial model is expected to rely on a combination of technological breakthroughs, cost management, and effective operational strategies, including regulatory support [65][66] Group 4 - The report outlines the expected market dynamics for intelligent driving from 2026 to 2030, predicting a shift towards a new pricing system that values results over processes [47][48] - The intelligent vehicle market is anticipated to undergo significant transformations, with RoboX expected to redefine the automotive landscape and create new revenue streams [47][61] - The report emphasizes the importance of hardware sales as a precursor to software monetization in the intelligent vehicle sector, advocating for a focus on user value creation [51][53]

Report Summary 1. Industry Investment Rating No industry investment rating is provided in the report. 2. Core View The report tracks the weekly data of secondary capital bonds from December 8, 2025, to December 12, 2025, including the issuance in the primary market, trading in the secondary market, and the valuation deviation of the top 30 individual bonds. 3. Summary by Directory Primary Market Issuance - Four secondary capital bonds were newly issued in the inter - bank and exchange markets, with a total issuance scale of 36 billion yuan. The issuance term was 10 years. The issuers included other enterprises, large private enterprises, and central enterprise subsidiaries, with credit ratings of AA +, AA -, AA, and AAA, located in Jiangsu, Zhejiang, and Guangdong provinces [1]. Secondary Market Trading - The weekly trading volume of secondary capital bonds totaled approximately 329.2 billion yuan, an increase of 134.3 billion yuan from the previous week. The top three most - traded bonds were 25 CCB Secondary Capital Bond 03BC (66.381 billion yuan), 25 BOC Secondary Capital Bond 01BC (16.157 billion yuan), and 25 Huishang Bank Secondary Capital Bond 01 (12.305 billion yuan) [2]. - By the issuer's region, the top three in trading volume were Beijing, Anhui, and Shanghai, with approximately 271.9 billion yuan, 12.4 billion yuan, and 11 billion yuan respectively [2]. - As of December 12, the changes in the yields to maturity of 5Y, 7Y, and 10Y secondary capital bonds with ratings of AAA -, AA +, and AA compared to the previous week were as follows: for 5Y bonds, - 0.40BP, - 1.63BP, - 1.63BP; for 7Y bonds, - 5.55BP, - 4.38BP, - 4.38BP; for 10Y bonds, - 3.91BP, - 2.99BP, - 2.99BP [2][11]. Valuation Deviation of the Top 30 Individual Bonds - The overall valuation deviation of the weekly trading average price of secondary capital bonds was not significant. The proportion of discount transactions was greater than that of premium transactions, and the discount amplitude was larger. - Among the discount - traded bonds, the top three in terms of discount rate were 23 EXIM Bank Secondary Capital Bond 02B (- 0.5669%), 24 Hankou Bank Secondary Capital Bond 01 (- 0.3695%), and 22 ICBC Secondary 01 (- 0.3295%), with most other discount rates within - 0.33%. The implied ratings of ChinaBond were mainly AAA -, AA +, and AA -, and the bonds were mostly from Beijing, Shanghai, and Jilin [3]. - Among the premium - traded bonds, the top three in terms of premium rate were 21 Great Wall Huaxi Bank Secondary 02 (0.4779%), 22 Great Wall Huaxi Secondary Capital Bond 01 (0.4722%), and 25 China Resources Bank Secondary Capital Bond 02 (0.2109%), with most other premium rates within 0.21%. The implied ratings of ChinaBond were mainly AAA -, AA, and AA +, and the bonds were mostly from Beijing, Zhejiang, and Sichuan [3].

Group 1 - The core view of the report indicates that Hong Kong stocks outperformed global investor expectations in 2025, with the Hang Seng Index rising by 30%, the Hang Seng Tech Index by 26.7%, and the Hang Seng China Enterprises Index by 26.2%, surpassing major global markets such as the S&P 500, DAX, and Nikkei 225 [1][8][11] - The report anticipates that Hong Kong stocks will continue to rise in 2026 due to several factors, including expected interest rate cuts by the Federal Reserve, a temporary easing of Sino-US relations, and synchronized monetary and fiscal policies in China [1][16][21] - The report emphasizes that the main investment themes for 2026 will be technology and cyclical sectors, with a focus on innovative pharmaceuticals, suggesting a barbell strategy for portfolio allocation to mitigate potential risks from overseas macroeconomic and political uncertainties [1][3][16] Group 2 - The report highlights that the first half of 2026 is expected to present more trading opportunities, driven by domestic and international factors, including a favorable policy environment in China and anticipated interest rate cuts by the Federal Reserve [2][16] - It is noted that the cyclical sectors are likely to benefit from domestic policies aimed at reducing internal competition and improving global demand, with a focus on commodities and real estate stocks in Hong Kong [3][16] - The report also points out the potential for continued inflows of southbound capital into Hong Kong stocks, driven by a "wealth effect" as market performance improves [1][11][16]

Core Views - The building materials sector slightly underperformed the overall A-share market in 2025, with a return of 19.62% compared to a -4.85% excess return relative to the Wind All A Index [2][10] - The macro outlook suggests that total policies are expected to strengthen, with physical demand support likely to increase, as emphasized in the December Politburo meeting [2][15][20] - The glass fiber industry is anticipated to see a resonance between traditional and emerging fields, with demand growth expected to remain stable despite a potential slowdown [2][23][45] 2025 Market Review - The building materials sector's performance can be segmented into several phases, with notable periods of underperformance and outperformance against the A-share market [10][12] - The glass fiber sub-sector showed significant excess returns driven by high demand in wind power and thermoplastics [10][12] - The cement sub-sector experienced a boost due to improved domestic demand expectations and effective supply-side discipline [10][12] Macro Outlook - Fixed asset investment in China saw a year-on-year decline of 1.7% from January to October 2025, with infrastructure and real estate investments dropping by 0.1% and 14.7%, respectively [15][19] - The Politburo's focus on expanding domestic demand and optimizing supply is expected to lead to a moderate increase in total policies [15][20] - The anticipated fiscal spending for 2026 is projected to reach 41.62 trillion yuan, a 2.1% increase year-on-year, with a focus on effective investment [20][21] Glass Fiber Industry - The supply shock in the glass fiber industry is gradually being digested, with new capacity expected to be limited in the medium term [23][39] - The effective production capacity for glass fiber is projected to reach 759.2 million tons for roving and 107.7 million tons for electronic fabrics in 2026, representing year-on-year increases of 6.9% and 7.3%, respectively [23][40] - Demand for glass fiber is expected to remain stable, supported by wind power and thermoplastics, despite potential declines in growth rates [45][46] Cement Industry - The cement industry is expected to maintain self-discipline in supply, with a focus on eliminating outdated capacity, which will support profitability [3][20] - The exit of 10,952 million tons of outdated capacity is projected, which will enhance the utilization rate of clinker capacity [3][20] - The profitability of the cement sector is expected to improve in 2026, particularly in regions with significant infrastructure projects [3][20] Glass Industry - The glass industry is experiencing accelerated supply clearance, which is expected to provide price elasticity in 2026 [2][3] - The current state of losses in the industry is likely to drive the closure of high-cost production lines, leading to a potential rebound in prices in the first half of 2026 [2][3] - Long-term policies aimed at curbing disorderly competition are expected to stabilize industry profitability and enhance the competitive advantage of leading companies [2][3]

Group 1 - The report indicates that in 2025, China's natural gas consumption is expected to increase slightly to 4,302 billion cubic meters, a year-on-year growth of 2.4%, influenced by factors such as a warm winter and tariff policies [3][20][21] - Domestic self-sufficiency in natural gas is projected to rise by 3 percentage points to 60% in 2025, with production increasing by 6.5% to 2,171 billion cubic meters, while imports are expected to decline by 6.3% to 1,444 billion cubic meters [3][23][24] - The report highlights that LNG supply is shifting towards a more relaxed state, which is anticipated to lower domestic gas costs and enhance the economic viability of natural gas [4][29] Group 2 - The economic viability of natural gas is expected to improve significantly, with a potential demand increase of 1.7 times by 2030, driven by the clean energy value of natural gas [5][47] - The report notes a trend of cost reduction and the implementation of pricing mechanisms, which are expected to restore profitability in the industry [6][12] - The structural impact of connection services is diminishing, with derivative businesses in gas sales expected to grow rapidly, becoming a new growth point for city gas companies [10][31] Group 3 - The report recommends focusing on companies with quality long-term contracts and cost advantages, such as Jiufeng Energy and Xin'ao Shares, which are expected to benefit from the release of overseas gas sources [11][12] - It is suggested to pay attention to companies like New Natural Gas and Blue Flame Holdings, which possess gas production capabilities amid increasing uncertainties in U.S. gas imports [12][11] - The report emphasizes the importance of energy self-sufficiency in light of rising uncertainties regarding U.S. gas imports, highlighting the need for companies to enhance their production capabilities [12][11]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is focusing on three major product categories: Chinese-flavored snacks, healthy high-protein snacks, and healthy sweet snacks, aiming to build a world-class brand [8] - The company is transitioning from a channel-driven model to a product-driven model, enhancing its competitive edge through supply chain management, smart manufacturing, innovation, and brand building [8] - The company has successfully launched major products like "Da Mo Wang" konjac and quail eggs, which have gained significant market recognition and sales [8] - The company is optimizing its distribution channels and focusing on high-quality growth, with a projected net profit growth of 25% for 2025 [8] Financial Projections - Total revenue is projected to grow from 4,115 million RMB in 2023 to 8,165 million RMB by 2027, with a compound annual growth rate (CAGR) of approximately 15.81% [1] - Net profit attributable to the parent company is expected to increase from 505.77 million RMB in 2023 to 1,223.36 million RMB in 2027, reflecting a CAGR of 21.67% [1] - The earnings per share (EPS) is forecasted to rise from 1.85 RMB in 2023 to 4.49 RMB in 2027 [1]

Group 1: Commercial Vehicles - The core conclusion for heavy trucks indicates that exports will surpass domestic sales in 2026, with a focus on leading exporters [2] - In 2025, the total wholesale volume for heavy trucks is expected to reach 1.143 million units, a year-on-year increase of 26.7%, with domestic sales at 814,000 units (+35.2%) and exports at 332,000 units (+14.3%) [11][12] - The penetration rate of electric heavy trucks is projected to rise to 30%-35% in 2026, with natural gas trucks also expected to gain market share [2][11] Group 2: Buses - The bus sector is expected to see stronger external demand than internal demand in 2026, with a projected growth of 3% for domestic sales and 30% for exports [3][22] - The key players in the bus industry, such as Yutong and King Long, are anticipated to benefit from the recovery in both domestic and overseas markets [3][22] - The overall profitability of the bus sector is expected to improve, driven by the recovery in demand and the performance of leading companies [23][39] Group 3: Motorcycles - The motorcycle industry is projected to achieve a total sales volume of 19.38 million units in 2026, a year-on-year increase of 14%, with large-displacement motorcycles expected to grow by 31% [4][29] - Exports of large-displacement motorcycles are expected to reach 830,000 units in 2026, reflecting a 50% increase compared to the previous year [4][29] - Leading motorcycle manufacturers, such as Chunfeng and Longxin, are expected to benefit from the continued growth in exports and large-displacement motorcycle sales [4][30]

Group 1: AI Applications - The report is optimistic about AI applications in cloud services and entertainment sectors, predicting significant productivity releases in 2026. Key areas of focus include programming, search, and office productivity, with a notable increase in token consumption across these fields [3][17][21] - Major obstacles to the large-scale deployment of AI agents include reliability issues, severe product homogeneity, and unresolved cost problems. The report emphasizes that the reliability of AI agents is crucial, especially in high-stakes environments like customer service [22][23][24] - The competition among major cloud service providers is expected to intensify, with cloud vendors being the most certain beneficiaries of the AI market growth. Vertical agents focusing on specific industries are likely to establish more viable business models compared to general-purpose agents [30][25] Group 2: Gaming Industry - The gaming industry is entering a cycle of gameplay innovation, with a long-term potential for female-oriented gaming segments. The report highlights the transition from simple romance simulations to more complex narratives incorporating elements like strategy and science fiction [4][62] - The report notes that the gaming market is stabilizing, with a slight decline in revenue year-on-year but a recovery in the quarter-on-quarter performance due to new game launches and the sustained operation of mature products [58][62] - AI is expected to enhance gaming experiences by introducing new interaction forms and personalizing gameplay based on player preferences, which could significantly improve player engagement and satisfaction [46][44] Group 3: Hong Kong Internet Sector - The report indicates that Hong Kong's leading internet companies are currently undervalued, with adjusted profit valuation multiples ranging from 15 to 20 times for major players. E-commerce platforms like JD and Pinduoduo are valued around 10 times, while social and content platforms like Tencent and Bilibili are valued around 20 times [5][30] - The report recommends several companies in the Hong Kong internet sector, including Tencent Holdings, Xiaomi Group, and Meituan-W, citing their potential for growth driven by AI-driven advertising and stable gaming revenues [5][30]

Economic Outlook - The US economy is expected to gradually move towards expansion in 2026, with economic growth potentially higher than in 2025, characterized by a front-loaded low and a back-loaded high throughout the year [5][15]. - The first quarter of 2026 may represent a relative low point due to the prolonged government shutdown in October 2025, but subsequent recovery is anticipated driven by fiscal and monetary policy support [15][37]. - Consumer spending is projected to steadily recover, supported by the gradual realization of benefits from the "Big Beautiful Act" (OBBBA), which will reduce tax burdens and increase disposable income [15][20]. Market Performance - The US stock market is expected to see further gains in 2026, primarily driven by earnings growth, with an overall EPS increase of over 12% anticipated [5][43]. - The technology sector is expected to continue its dominance in the first half of 2026, while a shift towards cyclical sectors is anticipated in the latter half as economic recovery progresses [49][50]. Sector Analysis - Small-cap stocks are expected to show greater elasticity in 2026, supported by lower borrowing costs and pent-up demand as the economy enters the early stages of recovery [5][49]. - The technology sector is projected to maintain its leading position in the first half of the year, with significant contributions from earnings, while the second half may present risks due to potential stagnation in capital expenditures [49][50]. - Cyclical sectors such as industrials, real estate, consumer discretionary, and financials are expected to benefit from the economic recovery, particularly as real estate begins to thaw and new home sales show signs of improvement [5][49][57].