Investment Rating - The report recommends a positive investment outlook for leading battery manufacturers and structural components, highlighting companies such as CATL, BYD, and EVE Energy as stable profit leaders [2][3]. Core Insights - The electric vehicle industry experienced a high level of activity in Q2 2025, with global electric vehicle sales reaching 5.25 million units, representing a year-on-year increase of 29% and a quarter-on-quarter increase of 23% [2][7]. - The overall revenue for the electric vehicle sector in Q2 2025 was 931.7 billion yuan, with a net profit of 44.4 billion yuan, reflecting a year-on-year increase of 1% and a quarter-on-quarter increase of 9% [2][16]. - The battery segment accounted for 42% of the total profit, while the vehicle segment contributed 33%, indicating a shift in profitability towards battery manufacturers [2][25]. Summary by Sections PART 1: Terminal Demand - Domestic electric vehicle demand showed steady growth, with Q2 2025 sales in China increasing by 35% year-on-year [5][7]. - Global energy storage battery production reached 135.5 GWh in Q2 2025, marking a year-on-year increase of 60% [11]. PART 2: Electric Vehicle Sector - The overall profit in the electric vehicle sector continued to improve in Q2 2025, with a notable increase in revenue and net profit across various segments [12][16]. - The revenue growth rate for the electric vehicle sector in Q2 2025 was 10% year-on-year, while the net profit growth was 1% [16]. PART 3: Upstream and Midstream Profitability - The profitability of the midstream battery segment improved significantly, with the battery segment's profit share increasing to 42% [25]. - The report highlights a notable increase in profits for key components such as ternary cathodes and copper foil, with year-on-year profit growth rates of 127% and 117%, respectively [29][36]. PART 4: Investment Recommendations - The report suggests focusing on leading companies with stable profitability in the battery and structural component sectors, including CATL, BYD, and others [2][3]. - It also emphasizes the potential for recovery in lithium carbonate prices, recommending companies with quality resources such as Ganfeng Lithium and others [2][3].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near term [1]. Core Insights - The company is a leading ICT solutions provider in the Asia-Pacific region, focusing on digital transformation through cloud computing and AI technologies [8][13]. - The Southeast Asian market is experiencing rapid growth, with projected revenue growth of approximately 74% in 2024, contributing to a significant portion of the company's overall revenue [32]. - The company has established strong partnerships with major tech firms, enhancing its market position and service offerings [18][19]. Summary by Sections 1. Company Overview - The company was founded in 1991 and listed on the Hong Kong Stock Exchange in 2002, serving as a key channel for ICT products in Southeast Asia [8][13]. - It operates across nine countries in the region, with a network of 87 branches and partnerships with over 50,000 channel institutions [15]. 2. Business Growth - Revenue from the Southeast Asian market is expected to increase significantly, with a forecasted growth rate of 34.41% in 2024 [32]. - The company has seen steady revenue growth from 2020 to 2024, with total revenues projected to reach HKD 102.31 billion in 2025, reflecting a year-on-year growth of 14.85% [61]. 3. Cloud Computing and AI Expansion - The company has been actively expanding its cloud computing and AI services since establishing its cloud division in 2013, collaborating with major cloud providers [37]. - AI-related revenue is projected to reach HKD 3.78 billion in 2024, marking a 42% increase year-on-year [54]. 4. Financial Projections - The company anticipates total revenues of HKD 1,023.11 billion, HKD 1,170.77 billion, and HKD 1,334.02 billion for the years 2025, 2026, and 2027, respectively [61]. - The expected net profit for the same period is projected to be HKD 1.3 billion, HKD 1.5 billion, and HKD 1.8 billion, with corresponding growth rates of 20%, 22%, and 15% [60].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is at an operational turning point, with new products set to ramp up production, leading to expected profit elasticity [9] - The company achieved a significant increase in shipments, with Q2 2025 shipments reaching 27.3 GWh, a 30% increase year-on-year [9] - The company is expected to see substantial revenue growth, with projected total revenue of RMB 66.175 billion in 2025, representing a 36.12% year-on-year increase [1] Financial Projections - Total revenue projections for the company are as follows: - 2023: RMB 48.784 billion - 2024: RMB 48.615 billion - 2025: RMB 66.175 billion - 2026: RMB 92.893 billion - 2027: RMB 116.653 billion [1] - Net profit attributable to the parent company is projected to be: - 2023: RMB 4.050 billion - 2024: RMB 4.076 billion - 2025: RMB 4.717 billion - 2026: RMB 7.500 billion - 2027: RMB 10.502 billion [1] - The earnings per share (EPS) forecast is as follows: - 2023: RMB 1.98 - 2024: RMB 1.99 - 2025: RMB 2.31 - 2026: RMB 3.67 - 2027: RMB 5.13 [1] Market Position and Product Development - The company is focusing on differentiated products, with a strong order book for large cylindrical and lithium iron phosphate batteries, expecting to reach a production capacity of 300 GWh by 2027 [9] - The company has officially launched its solid-state battery production facility in Chengdu, with the first product achieving an energy density of 300 Wh/kg [9] - The company anticipates significant contributions from its energy storage business, projecting a profit contribution of RMB 7 billion [9]

Macro Strategy - The domestic economy is expected to face slight pressure in the second half of the year, but the annual growth target of 5% remains achievable, supported by policy measures such as a 500 billion yuan financial tool and consumer incentives [21][22] - Key risks include the potential decline in exports, pressure on consumption growth, and a slowdown in real estate investment, which may have a greater impact on the economy in the latter half of the year [21][22] Fixed Income - The report discusses why domestic commercial banks are unlikely to reduce their balance sheets, citing factors such as the need to support the economy during a slowdown, the current accommodative monetary policy, and the role of state-owned banks in financing key sectors [2][24] - The report emphasizes that the probability of a sector-wide balance sheet reduction is low, although some smaller banks may face pressure to do so [2][24] Industry Analysis - The report on FuChuang Precision (688409) maintains profit forecasts for 2025-2027 at 320 million, 480 million, and 650 million yuan, respectively, with a "buy" rating due to long-term growth potential despite short-term pressures [4] - LiBert (605167) experienced revenue pressure in the first half of the year, with a focus on expanding into new industries, leading to a revised profit forecast of 232 million and 264 million yuan for 2025-2026 [5] - JianLang Hardware (002791) is adjusting profit forecasts to 175 million, 272 million, and 328 million yuan for 2025-2027, maintaining a "buy" rating based on expected recovery and operational adjustments [6] - HuaFeng Measurement and Control (688200) maintains profit forecasts of 460 million, 540 million, and 600 million yuan for 2025-2027, with a "buy" rating due to strong demand in the high-end testing market [7] - FuBo Group (03738.HK) is positioned well in the AI-driven content industry, with profit forecasts of 230 million, 310 million, and 390 million HKD for 2025-2027, maintaining a "buy" rating [8] - YiXin Group (02858.HK) is expected to achieve net profits of 1.126 billion, 1.398 billion, and 1.701 billion yuan for 2025-2027, with a "buy" rating based on competitive advantages in automotive finance [9] - ZhongKe International (688981) is highlighted as a leading player in the semiconductor industry, with a focus on advanced process technology [9] - The report on Tianqi Lithium (002466) adjusts profit forecasts to 450 million, 860 million, and 1.44 billion yuan for 2025-2027, maintaining a "buy" rating based on resource advantages [16] - The report on Jidong Cement (000401) indicates a significant reduction in losses and improved profitability, with revised profit forecasts of 270 million and 590 million yuan for 2025-2026 [11][14]

Investment Rating - The investment rating for BYD is "Buy" (maintained) [1] Core Views - In August 2025, BYD's sales reached 374,000 units, showing a month-on-month increase, with a focus on high-end products and exports [8] - The company is expected to achieve annual sales of over 5 million units, with a year-on-year growth of over 17%, including 900,000 to 1 million units in exports, representing a 128% increase [8] - The report anticipates a continuous increase in the share of pure electric vehicles and ongoing efforts in high-end product development and international expansion [8] - BYD's battery installations in August increased by 23%, with significant growth in external battery supply, projecting a total installation of 290-300 GWh for the year, a 50% year-on-year increase [8] - The forecast for net profit attributable to shareholders for 2025-2027 is 45 billion, 59 billion, and 71 billion yuan respectively, with corresponding P/E ratios of 22, 17, and 14 times [8] Financial Projections - Total revenue is projected to reach 777.1 billion yuan in 2024, 924.5 billion yuan in 2025, and 1,047.7 billion yuan in 2026, with year-on-year growth rates of 29.02%, 18.97%, and 13.33% respectively [1][9] - The net profit attributable to shareholders is expected to grow from 40.3 billion yuan in 2024 to 71 billion yuan in 2027, with growth rates of 34% in 2024 and 11.83% in 2025 [1][9] - The earnings per share (EPS) is forecasted to be 4.42 yuan in 2024, increasing to 7.79 yuan by 2027 [1][9]

Quantitative Factors and Construction Methods 1. Factor Name: Valuation Deviation (EPD) Factor - **Construction Idea**: Combines the mean-reversion strategy commonly used in CTA with the valuation repair logic of fundamentals, leveraging the mean-reversion characteristics of the PE valuation metric[7][2] - **Construction Process**: - Utilize the mean-reversion property of the PE ratio to construct the EPD factor[7] - The factor captures valuation deviations based on historical PE levels[7] - **Evaluation**: Reflects the valuation deviation of stocks, providing a basis for mean-reversion strategies[7] 2. Factor Name: Slow Deviation (EPDS) Factor - **Construction Idea**: Removes the impact of changes in individual stock valuation logic by using the EPD factor to exclude stocks with altered valuation logic, represented by the stock's information ratio[7][2] - **Construction Process**: - Use the EPD factor as a base - Exclude stocks with high probabilities of valuation logic changes, as proxied by their information ratios[7] - **Evaluation**: Focuses on stocks with stable valuation logic, enhancing the robustness of the factor[7] 3. Factor Name: Valuation Anomaly (EPA) Factor - **Construction Idea**: Further removes the influence of beta, growth, and value styles from the EPDS factor to isolate the "valuation anomaly" logic[7][2] - **Construction Process**: - Start with the EPDS factor - Adjust for beta, growth, and value style influences to refine the factor[7] - **Evaluation**: Provides a purer measure of valuation anomalies, making it more effective for stock selection[7] --- Factor Backtesting Results 1. Valuation Deviation (EPD) Factor - Annualized Return: 17.47%[2][8][12] - Annualized Volatility: 9.94%[2][8][12] - IR: 1.76[2][8][12] - Monthly Win Rate: 70.59%[2][8][12] - Maximum Drawdown: 8.93%[2][8][12] 2. Slow Deviation (EPDS) Factor - Annualized Return: 16.12%[2][8][12] - Annualized Volatility: 5.74%[2][8][12] - IR: 2.81[2][8][12] - Monthly Win Rate: 78.61%[2][8][12] - Maximum Drawdown: 3.10%[2][8][12] 3. Valuation Anomaly (EPA) Factor - Annualized Return: 17.29%[2][8][12] - Annualized Volatility: 5.14%[2][8][12] - IR: 3.37[2][8][12] - Monthly Win Rate: 80.75%[2][8][12] - Maximum Drawdown: 3.12%[2][8][12]

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company is experiencing short-term pressure on performance but is expected to achieve long-term growth due to its leading position in the components sector and platform-based layout [1] - The company's revenue for H1 2025 was 1.724 billion yuan, a year-on-year increase of 14.4%, while the net profit attributable to shareholders was 12.28 million yuan, a year-on-year decrease of 89.9% [7] - The company has made significant improvements in cash flow and order fulfillment capabilities, with contract liabilities increasing by 207.4% year-on-year [7] Financial Forecasts - Revenue projections for 2023A to 2027E are as follows: 2,066 million yuan (2023A), 3,040 million yuan (2024A), 4,189 million yuan (2025E), 5,515 million yuan (2026E), and 7,002 million yuan (2027E) [1] - Net profit attributable to shareholders is forecasted to be 168.69 million yuan (2023A), 202.65 million yuan (2024A), 321.14 million yuan (2025E), 475.02 million yuan (2026E), and 650.93 million yuan (2027E) [1] - The company’s P/E ratios are projected to be 126.16 (2023A), 105.02 (2024A), 66.27 (2025E), 44.80 (2026E), and 32.69 (2027E) [1] Operational Highlights - The company has deepened its penetration with major clients, with the top five clients accounting for over 75% of revenue in H1 2025 [7] - The company has achieved significant breakthroughs in the mass production of precision components, including various gas distribution plates and metal heating plates [7] - The establishment of overseas bases and the acquisition of Compart have enhanced the company's global competitiveness [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is experiencing significant pressure on profitability, with a notable decline in domestic market revenue, while the overseas market expansion shows promising results [7] - The company reported a total revenue of 2.755 billion yuan in the first half of 2025, a year-on-year decrease of 14.18%, and a net profit attributable to shareholders of -30 million yuan, compared to a profit of 5 million yuan in the same period last year [7] - The company is focusing on integrating and expanding new product categories while enhancing product capabilities, aiming to improve service capabilities and iterate sales and product models during the industry downturn [7] Financial Performance Summary - Total revenue forecast for 2023A is 7.802 billion yuan, with a projected decline to 6.118 billion yuan in 2025E, followed by a recovery to 6.646 billion yuan in 2026E and 7.235 billion yuan in 2027E [1] - Net profit attributable to shareholders is expected to drop from 324.01 million yuan in 2023A to 175.23 million yuan in 2025E, before increasing to 272.03 million yuan in 2026E and 327.97 million yuan in 2027E [1] - The latest diluted EPS is projected to be 0.50 yuan per share in 2025E, with a P/E ratio of 44.79 [1] Market and Operational Insights - The company’s overseas revenue reached 477 million yuan in the first half of 2025, marking a year-on-year increase of 30.75%, indicating a growing share of overseas sales [7] - The gross margin for the first half of 2025 was 30.37%, slightly down by 0.9 percentage points year-on-year, with the company managing expenses effectively despite revenue pressures [7] - The company’s asset-liability ratio was 38.74% at the end of the first half of 2025, showing a downward trend compared to the beginning of the year [7]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company reported a revenue of 1.44 billion yuan for the first half of 2025, a year-on-year decrease of 19.8%, with a net profit attributable to shareholders of 122 million yuan, down 6.5% year-on-year [7] - The company is actively exploring new industries and clients, which may form a second growth curve, particularly in marine oil and gas, nuclear power engineering, mining, and water treatment sectors [7] - The company has made significant progress in the nuclear power engineering field, winning a contract worth 267 million yuan for a project with China General Nuclear Power Group [7] Financial Summary - Total revenue forecast for 2023 is 3.24 billion yuan, with a projected decline to 2.79 billion yuan in 2025, followed by a recovery to 3.47 billion yuan in 2027 [1][8] - The net profit attributable to shareholders is expected to be 231.9 million yuan in 2025, with a growth forecast to 320.83 million yuan by 2027 [1][8] - The company’s earnings per share (EPS) is projected to be 0.52 yuan in 2025, increasing to 0.71 yuan by 2027 [1][8] - The company’s comprehensive gross margin improved to 18.1% in the first half of 2025, up 1.7 percentage points year-on-year, driven by a higher proportion of high-margin industrial module revenue [7]

Quantitative Factors and Construction - **Factor Name**: Renewed Correlation of Price and Volume (RPV) **Construction Idea**: The RPV factor integrates intraday and overnight price-volume correlation information, leveraging the reversal and momentum effects of price-volume relationships. It incorporates "volume" information into correlation metrics to enhance factor effectiveness [6][1][7] **Construction Process**: 1. Identify the best representatives for intraday and overnight price-volume correlations: CCOIV (intraday) and COV (overnight) [6] 2. Enhance reversal effects using turnover rate sequences for intraday price-volume correlation [6] 3. Strengthen overnight momentum effects by incorporating "yesterday's volume" into overnight price-volume relationships [6] 4. Combine intraday and overnight correlation information into a unified factor, RPV, to serve a single objective [6] **Evaluation**: The RPV factor is described as "novel and effective," capable of capturing both reversal and momentum effects in price-volume relationships [1][6] - **Factor Name**: Smart Renewed Correlation of Price and Volume (SRV) **Construction Idea**: The SRV factor refines intraday price-volume correlation by splitting daily price movements into morning and afternoon segments, and incorporates "smart" turnover metrics to identify informed trading periods. It combines improved intraday and overnight correlation metrics for enhanced performance [1][6][7] **Construction Process**: 1. Split daily price movements into morning and afternoon segments [1][6] 2. Calculate "smart" metrics for afternoon trading, identifying the top 20% (24 minutes) of informed trading periods [1][6] 3. Use "smart turnover rate" and afternoon price movements to compute intraday correlation [1][6] 4. Replace turnover rate with the last 30-minute turnover rate of the previous day for overnight correlation [1][6] 5. Combine the refined intraday and overnight correlation metrics into the SRV factor [1][6] **Evaluation**: The SRV factor is considered superior to RPV, with better performance metrics and lower drawdowns [1][6] Factor Backtesting Results - **RPV Factor**: - Annualized Return: 14.17% [7][10] - Annualized Volatility: 7.73% [7][10] - IR: 1.83 [7][10] - Monthly Win Rate: 71.94% [7][10] - Maximum Drawdown: 10.63% [7][10] - **SRV Factor**: - Annualized Return: 16.89% [7][10] - Annualized Volatility: 6.51% [7][10] - IR: 2.59 [7][10] - Monthly Win Rate: 74.10% [7][10] - Maximum Drawdown: 3.87% [7][10] August Performance Results - **RPV Factor**: - Long Portfolio Return: 7.29% [10][11] - Short Portfolio Return: 8.88% [10][11] - Long-Short Portfolio Return: -1.59% [10][11] - **SRV Factor**: - Long Portfolio Return: 7.55% [10][11] - Short Portfolio Return: 8.78% [10][11] - Long-Short Portfolio Return: -1.23% [10][11]