Investment Rating - The report maintains a "Buy" rating for the environmental protection industry [1] Core Insights - The report emphasizes the importance of Sustainable Aviation Fuel (SAF) as the only viable solution for aviation decarbonization, highlighting the scarcity and value of waste oil resources during the SAF expansion cycle [14][15] - The environmental protection sector is expected to experience significant growth driven by policy support and market dynamics, particularly in waste management and renewable energy [20][21] Industry Trends - The 2026 ecological and environmental work conference set the tone for the industry's upgrade, focusing on source governance and modern monitoring systems [10][11] - The SAF market is projected to see a substantial increase in demand, with the EU mandating a gradual increase in SAF blending ratios from 2% in 2025 to 70% by 2050 [15][16] - The report notes a significant increase in the sales of new energy sanitation vehicles, with a projected growth rate of 70.9% in 2025 [26] Company Recommendations - Key companies recommended for investment include: - Hanlan Environment - Longjing Environmental Protection - Green Power - Everbright Environment - Weiming Environmental Protection - Yuhua Investment - Jinfeng Energy [4] - Companies to watch include: - Dayu Water Saving - Lian Tai Environmental Protection - Wangneng Environment [4] Market Dynamics - The report highlights the increasing value of waste oil resources, driven by the rising demand for SAF and the expansion of production capacity [18] - The report indicates that the price of SAF is expected to rise significantly due to supply constraints, with potential profitability for SAF producers [15][18] Strategic Focus - The report outlines three main strategic focuses for 2026: 1. Value and growth resonance driven by marketization and efficiency improvements in waste management [20] 2. Quality growth through second curve development and AI empowerment in sanitation [22] 3. Carbon neutrality initiatives, emphasizing the importance of renewable resources and waste resource utilization [24]

1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints - The report analyzes the basic information of Shangtai Convertible Bond, including its issuance scale, bond - bottom valuation, conversion parity, and terms. It also conducts a fundamental analysis of the underlying stock, Shangtai Technology, highlighting its business transformation, revenue growth, and financial performance [3][16]. 3. Summary by Relevant Catalogs 3.1. Convertible Bond Basic Information - Shangtai Convertible Bond (127112.SZ) was available for online subscription on January 16, 2026, with a total issuance scale of 1.734 billion yuan. The net proceeds after deducting issuance fees will be used for a project with an annual production capacity of 200,000 tons of lithium - battery anode materials [3]. - The current bond - bottom valuation is 97.64 yuan, and the YTM is 1.86%. The bond has a 6 - year term, an AA +/AA+ credit rating, a face value of 100 yuan, and specific coupon rates from the first to the sixth year [3]. - The current conversion parity is 102.64 yuan, and the parity premium rate is - 2.58%. The conversion period is from July 22, 2026, to January 15, 2032, with an initial conversion price of 84.71 yuan per share [3]. - The convertible bond terms are standard. The total equity dilution rate is 7.28%, and the dilution rate for the tradable shares is 9.91%, indicating relatively low dilution pressure on the equity [3]. - The issuance price of Shangtai Convertible Bond is 100 yuan per bond. The original shareholders' priority subscription ratio is 71.71%, and the online winning rate is 0.0051678926% [3][15]. 3.2. Investment Subscription Suggestion - Shangtai Convertible Bond was issued at 100 yuan per bond on January 16, 2026. The original shareholders' priority subscription ratio was 71.71%, and the online public subscription accounted for 28.29% of the total issuance, with a winning rate of 0.0051678926% [3][15]. 3.3. Underlying Stock Fundamental Analysis 3.3.1. Financial Data Analysis - Shangtai Technology is a high - tech enterprise in the lithium - ion battery anode material industry. Since 2017, it has transformed from a graphite - processing service provider to an integrated R & D, production, and sales enterprise [16]. - From 2020 to 2024, the company's revenue had a compound growth rate of 66.41%, and the net profit attributable to the parent company had a compound growth rate of 53.11%. In 2024, the revenue was 5.229 billion yuan, a year - on - year increase of 19.10%, and the net profit attributable to the parent company was 838 million yuan, a year - on - year increase of 15.97% [3][17]. - The company's revenue mainly comes from the anode material business. From 2022 to 2024, the proportion of anode material sales revenue in the main business revenue was 90.51%, 89.61%, and 93.42% respectively, with an annual adjustment in product structure [22]. - From 2020 to 2024, the company's net sales margin and gross profit margin remained stable, the sales expense ratio decreased, the financial expense ratio increased, and the management expense ratio decreased [4]. 3.3.2. Company Highlights - Shangtai Technology is a leading enterprise in the lithium - ion battery anode material industry, with three production bases. It has a full - process, integrated production capacity and a high - quality customer system [31]. - The company has built a product matrix suitable for multiple application scenarios and fields, and its revenue compound growth rate in the past three years is better than the average level of comparable listed companies in the industry [31].

Market Overview - Developed and emerging markets continued to rise, with emerging markets leading at 2.2% and developed markets up 0.1% [1] - In the U.S. stock market, small-cap stocks represented by the Russell 2000 led gains with a 2.2% increase, while the Nasdaq fell by 0.7%, the S&P 500 decreased by 0.4%, and the Dow Jones dropped by 0.3% [1] - The S&P 500 constituents saw a 55% increase in stock prices, with notable gains from companies like Moderna, AMD, and Jabil [1] Inflation and Economic Indicators - U.S. inflation showed signs of cooling, with December CPI meeting market expectations; core CPI rose by 2.6% year-on-year, the lowest since March 2021, and 0.2% month-on-month, below the expected 0.3% [1] - The housing inflation pressure is significantly easing, with December housing inflation rising by 0.4% month-on-month and a year-on-year increase dropping from 3.3% to 3.2% [1] - The PPI for November rose to 3% year-on-year, driven by energy costs, indicating a rebound in wholesale inflation pressure, although core PPI remained stable [2] Corporate Earnings and Financial Sector - The earnings season for U.S. banks began cautiously, with JPMorgan Chase and BNY Mellon reporting results that met high market expectations, but investment banking revenues fell short [3] - JPMorgan's bond underwriting fees decreased by 2% year-on-year, significantly below the expected growth of 19% [3] - The financial sector faced pressure due to Trump's comments on credit card interest rates, leading to capital outflows from the sector [3] Future Outlook - Short-term outlook for U.S. stocks remains positive, but with potential volatility; significant companies representing 6% of S&P market capitalization will report earnings next week, particularly in healthcare, consumer staples, and industrials [4] - The focus is shifting to the Federal Reserve's leadership amid pressures on Chairman Powell, with expectations that he will not be removed from his position [4] - Upcoming GDP growth data for Q4 2025 is anticipated, with suggestions to avoid cyclical stocks in favor of defensive sectors like healthcare [4] Key Upcoming Events - Key economic data releases include U.S. Q4 GDP on January 20, core PCE price index on January 22, and various manufacturing PMIs on January 23 [5]

Investment Rating - The report assigns a "Buy" rating for IFBH, marking its first coverage of the company [1]. Core Insights - IFBH is a leader in the coconut water sector, demonstrating strong profitability and a commitment to a light-asset model that leverages Thai industry resources [8][14]. - The coconut water market in China is rapidly expanding, with a projected growth from USD 1.02 billion in 2019 to USD 10.93 billion by 2024, reflecting a CAGR of 60.8% [8][70]. - The company is actively enhancing its distribution partnerships and product offerings to drive growth, with a focus on both online and offline channels [8][51]. Summary by Sections 1. Company Overview - IFBH was founded in 2013 and has rapidly grown since entering the Chinese market in 2017, becoming a leading player in the coconut water industry [8][14]. - The company operates under a light-asset model, which allows it to maintain high asset turnover and profitability [8][42]. 2. Market Dynamics - The coconut water industry is characterized by its health benefits and growing consumer demand, with significant room for market penetration compared to the U.S. [8][51]. - The market is expected to continue expanding, with a forecasted CAGR of 19.4% from 2024 to 2029 [70]. 3. Growth Strategy - IFBH is focusing on product innovation and expanding its distribution network, including partnerships with major retailers like COFCO and Watsons [8][51]. - The company plans to enhance its market presence through both its flagship brand "if" and the new "Innococo" brand, targeting functional beverage segments [8][29]. 4. Financial Projections - Revenue projections for IFBH indicate growth from USD 187.55 million in 2025 to USD 331.16 million by 2027, with corresponding net profits expected to rise from USD 30.50 million to USD 54.79 million [1]. - The report anticipates a decrease in P/E ratios from 19.29x in 2025 to 10.74x in 2027, indicating improving valuation metrics [1].

Investment Rating - The report assigns a "Buy" rating for IFBH, marking its first coverage [1]. Core Insights - IFBH is a leader in the coconut water sector, demonstrating strong profitability and a commitment to a light-asset model that leverages Thai industry resources [8][14]. - The coconut water market in China is rapidly expanding, with a projected growth from USD 1.02 billion in 2019 to USD 10.93 billion by 2024, reflecting a CAGR of 60.8% [8][70]. - The company is actively enhancing its distribution partnerships and product offerings to drive growth, focusing on both innovation and channel expansion [8][51]. Summary by Sections 1. IFBH: Leader in Coconut Water with Strong Profitability - IFBH was founded in 2013 and has rapidly grown in the Chinese market since entering in 2017, supported by a concentrated ownership structure and an efficient management team [8][14]. - The company has adopted a light-asset model, which allows it to maintain high asset turnover and return on equity (ROE) levels [8][42]. - The dual-brand strategy, with flagship brand "if" and sub-brand "Innococo," has contributed to a diversified product matrix, primarily focusing on coconut water [26][29]. 2. Coconut Water: Continuous Expansion and Uncertain Market Structure - The coconut water category is characterized by its natural health benefits and is experiencing significant growth, with the market expected to reach USD 26.52 billion by 2029 [8][70]. - The penetration rate of coconut water in China is still low compared to the U.S., indicating substantial room for growth [8][51]. - The competitive landscape remains fluid, with opportunities for leading brands to educate the market and enhance product innovation [8][51]. 3. Strengthening Distribution Partnerships and Product Development - IFBH is focusing on expanding its distribution network, having signed partnerships with major players like COFCO and Watsons to enhance offline presence [8][51]. - The company is also innovating its product line, including the introduction of electrolyte water under the Innococo brand, to capture growth in the sports drink segment [8][51]. - The light-asset model allows IFBH to mitigate risks associated with raw material price fluctuations while maintaining operational efficiency [8][26]. 4. Profit Forecast and Investment Rating - The report forecasts IFBH's revenue to reach USD 1.88 billion in 2025, USD 2.57 billion in 2026, and USD 3.31 billion in 2027, with corresponding growth rates of 19.0%, 36.9%, and 29.0% [8][1]. - The projected net profit for the same years is USD 0.31 billion, USD 0.42 billion, and USD 0.55 billion, with growth rates of -8.4%, 39.1%, and 29.1% respectively [8][1].

Investment Rating - The report maintains an "Overweight" rating for the construction materials industry [1] Core Insights - The construction materials sector has shown a slight decline in social financing growth, prompting a focus on high-dividend stocks and sectors such as real estate and technology [3] - The cement market is experiencing price fluctuations, with a current average price of 347.7 yuan/ton, down 4.8 yuan from last week and down 56.2 yuan from the same period in 2025 [10][11] - The report highlights potential investment opportunities in companies benefiting from high dividends, export-oriented industries, and home renovation sectors [3] Summary by Sections 1. Cement Market Overview - The national average cement price is 347.7 yuan/ton, reflecting a decrease of 4.8 yuan from the previous week and a decrease of 56.2 yuan year-on-year [10][11] - The average cement inventory ratio is 58.9%, down 1.4 percentage points from last week but up 1.4 percentage points from the same period in 2025 [16][20] - The average daily cement shipment rate is 39.2%, down 5.0 percentage points from last week but up 7.0 percentage points year-on-year [16][20] 2. Glass Market Overview - The average price of float glass is 1138.3 yuan/ton, an increase of 16.3 yuan from last week but a decrease of 246.1 yuan from 2025 [41][42] - The inventory of float glass in 13 provinces is 4,986 million weight boxes, a decrease of 209 million from last week but an increase of 1,071 million from the same period in 2025 [46][49] 3. Fiberglass Market Overview - The effective production capacity for fiberglass is projected to reach 759.2 million tons in 2026, a year-on-year increase of 6.9% [4] - The demand for fiberglass is expected to maintain steady growth, driven by wind power and new applications, despite a potential slowdown in overall growth [4] 4. Investment Recommendations - Recommended companies include China National Building Material, Huaxin Cement, and others that are expected to benefit from industry recovery and structural improvements [4][3] - The report suggests focusing on companies with strong dividend yields and those involved in technology and home renovation sectors [3]

Investment Rating - Maintain "Overweight" rating for the construction materials industry [1] Core Insights - The construction materials sector has shown a slight decline in performance, with the sector index down by 0.67% compared to the Shanghai and Shenzhen 300 index, which decreased by 0.57% [3] - The report highlights the importance of focusing on high-dividend stocks and sectors such as home decoration and technology, as well as the potential for recovery in the real estate chain [3] Summary by Sections 1. Bulk Construction Materials Fundamentals and High-Frequency Data - **Cement**: The national average price for high-standard cement is 347.7 yuan/ton, down by 4.8 yuan/ton from last week and down by 56.2 yuan/ton from the same period in 2025. The average cement inventory ratio is 58.9%, down by 1.4 percentage points from last week but up by 1.4 percentage points from 2025 [9][10][16] - **Glass**: The average price for float glass is 1138.3 yuan/ton, an increase of 16.3 yuan/ton from last week but a decrease of 246.1 yuan/ton from 2025. The inventory of float glass stands at 4,986 million weight boxes, down by 209 million from last week but up by 1,071 million from 2025 [41][46] - **Fiberglass**: The market for fiberglass remains stable, with no significant price changes reported. The mainstream transaction price for 2400tex alkali-free winding direct yarn is between 3250-3700 yuan/ton [3][4] 2. Industry Dynamics Tracking - The report indicates that the cement industry is undergoing supply-side adjustments, with a focus on eliminating outdated capacity. The effective capacity for fiberglass is expected to reach 759.2 million tons in 2026, a year-on-year increase of 6.9% [4][9] - The report emphasizes the potential for recovery in the real estate sector, with companies like Arrow Home, Sanhe Tree, and Op Lighting being highlighted for their strategic positioning [3][4] 3. Weekly Market Review and Sector Valuation - The construction materials sector has shown a mixed performance, with some companies demonstrating resilience in their earnings despite overall market challenges. The report suggests that the sector's valuation is at historical lows, indicating potential for recovery [3][4] - Recommendations include focusing on companies with strong dividend commitments and those positioned to benefit from technological advancements and market recovery [3][4]

Investment Rating - The report maintains an "Accumulate" rating for the gas industry [1] Core Viewpoints - The report highlights that heating demand and escalating US-Iran tensions have led to a significant increase in overseas gas prices, with US HH prices rising by 10.2% and European TTF prices soaring by 32.4% as of January 16, 2026 [5][10] - The report emphasizes the importance of the commercial aerospace sector in enhancing the value and market share of specialty gases, particularly for companies like Jiufeng Energy [5] Price Tracking - As of January 16, 2026, the week-on-week changes in gas prices are as follows: US HH +10.2%, European TTF +32.4%, East Asia JKM +16.6%, China LNG ex-factory +0.9%, and China LNG CIF +10.1%, with prices reaching 0.8, 3.3, 2.8, 2.6, and 2.6 yuan per cubic meter respectively [10][11] Supply and Demand Analysis - The report notes that the US gas price has increased due to heightened tensions in the Middle East, with a week-on-week decrease in storage levels of 710 billion cubic feet, bringing total storage to 31,850 billion cubic feet, a year-on-year increase of 2.2% [16] - European gas prices have surged due to significantly lower temperatures compared to previous years, with a reported consumption increase of 4.1% year-on-year for the first nine months of 2025, totaling 313.8 billion cubic meters [17] Domestic Market Overview - The report indicates that domestic gas prices have increased by 0.9% week-on-week, with a total apparent consumption of 392 billion cubic meters in China for the first eleven months of 2025, reflecting a year-on-year increase of 1.5% [21][26] - The domestic LNG import price averaged 3,384 yuan per ton in November 2025, showing a year-on-year decrease of 18.3% [26] Pricing Mechanism Progress - The report states that 67% of cities have implemented residential pricing adjustments, with an average increase of 0.22 yuan per cubic meter, indicating ongoing efforts to optimize costs for city gas companies [36] Investment Recommendations - The report recommends focusing on companies that can optimize costs and benefit from the ongoing pricing adjustments, highlighting New Hope Energy, China Resources Gas, and Kunlun Energy as key investment opportunities [5] - It also suggests monitoring companies with quality long-term contracts and flexible operations, such as Jiufeng Energy and New Hope Holdings, for their potential in the commercial aerospace sector [5]

Economic Outlook - The overall economic data has exceeded expectations, leading to a significant adjustment in the market's interest rate cut expectations, with traders now anticipating the first cut in June 2026 and a total of less than 2 cuts for the entire year[1] - The Federal Reserve's interest rate cut expectations have decreased from nearly 90% at the end of December to below 40% for April, reflecting a hawkish stance from Fed officials[1] - The anticipated total interest rate cut for 2026 is projected to be between 75-100 basis points, with potential consecutive cuts from June to September[1] Market Performance - The U.S. stock market experienced volatility, with the Dow Jones, S&P 500, and Nasdaq indices declining by 0.29%, 0.38%, and 0.66% respectively during the week of January 12-16, 2026[2] - Silver led the commodity market with a weekly increase of 12.86%, while copper fell by 1.35% due to profit-taking and changes in supply-demand expectations[2] - The market has seen a rotation of funds from large tech stocks to cyclical and small-cap stocks, with the Dow outperforming the S&P 500 and Nasdaq[2] Political Developments - Trump's shift in preference for Kevin Warsh as the next Fed Chair has increased due to Warsh's strong background and connections, which may reduce the risk of Powell remaining on the board[1] - The market is closely watching the IEEPA tariff case ruling expected on January 20, 2026, with a 63% chance of a ruling within the month[1] - If the Supreme Court rules against Trump regarding the IEEPA tariffs, it could lead to increased fiscal pressure, as Trump has already collected $133.5 billion in tariffs[1] Risks - Potential risks include an unexpected ruling in the tariff case, excessive interest rate cuts leading to inflation rebound, and prolonged high interest rates causing liquidity crises in the financial system[1]

Investment Rating - The report maintains an "Accumulate" rating for the power equipment industry [1] Core Insights - The solid-state battery industry is accelerating its industrialization, and the potential for space photovoltaic technology is promising [1] - The energy storage sector is expected to see significant growth, with a projected increase of over 60% in 2026 due to rising demand and government support [3][6] - The report highlights the strong performance of various segments within the power equipment industry, including electric vehicles, lithium batteries, and photovoltaic technologies [3] Industry Trends - The electric equipment sector saw a 0.79% increase, outperforming the market, with lithium batteries rising by 1.5% and new energy vehicles by 1.29% [3] - The report notes that the global energy storage system shipments are expected to reach 498 GWh in 2025, a year-on-year increase of 99% [3] - The report emphasizes the importance of government investment in energy storage and new energy sectors, with significant projects underway in regions like Jiangxi [3] Company Performance - Companies like Keda and Zhenyu Technology are expected to see substantial profit growth, with Keda projecting a net profit increase of 52.21%-67.43% for 2025 [3] - The report mentions that major companies are entering strategic partnerships and expanding their production capacities, such as Ganfeng Lithium and CATL [3][4] - The report also highlights the expected losses for companies like Junda and Longi Green Energy, indicating challenges in the current market environment [3][4] Investment Strategy - The report suggests a strong outlook for energy storage, lithium batteries, and solid-state technologies, recommending investments in leading companies such as CATL, Sunpower, and Sanyuan Electric [3][4] - It emphasizes the potential for growth in the humanoid robotics sector, with Tesla leading the market and significant opportunities for component manufacturers [6] - The report advises investors to focus on companies with strong technological advantages and overseas market channels, particularly in the AIDC sector [6]