1. Report Industry Investment Rating No industry investment rating information is provided in the report. 2. Core View of the Report The report provides a weekly data tracking of secondary capital bonds from July 28, 2025, to August 1, 2025, covering primary market issuance and stock, secondary market trading, and valuation deviation of individual bonds [1]. 3. Summary by Relevant Catalogs 3.1 Primary Market Issuance and Stock - One new secondary capital bond was issued in the inter - bank and exchange markets this week, with an issuance scale of 2 billion yuan, a maturity of 10 years, the issuer being a local state - owned enterprise in Shanxi Province with a AAA rating [1]. - As of August 1, 2025, the stock balance of secondary capital bonds reached 476.1635 billion yuan, an increase of 2 billion yuan from the end of last week [1]. 3.2 Secondary Market Trading - The weekly trading volume of secondary capital bonds this week totaled approximately 263.9 billion yuan, a decrease of 24.2 billion yuan from last week. The top three bonds in trading volume were 25 Agricultural Bank of China Secondary Capital Bond 02B(BC) (16.111 billion yuan), 25 Industrial and Commercial Bank of China Secondary Capital Bond 01BC (15.717 billion yuan), and 25 Bank of China Secondary Capital Bond 01BC (14.209 billion yuan) [2]. - By the region of the issuer, the top three in trading volume were Beijing, Shanghai, and Guangdong, with approximately 212.2 billion yuan, 20.4 billion yuan, and 10.1 billion yuan respectively [2]. - As of August 1, the changes in the yields to maturity of 5Y, 7Y, and 10Y secondary capital bonds with ratings of AAA -, AA +, and AA compared to last week were all negative [2]. 3.3 Valuation Deviation of Top 30 Individual Bonds - The overall valuation deviation of the weekly average trading price of secondary capital bonds this week was not large, with the proportion and amplitude of discount trading greater than those of premium trading [3]. - Among the discount bonds, the top three in discount rate were 21 Jiutai Rural Commercial Bank Secondary ( - 21.5130%), 25 Chouzhou Commercial Bank Secondary Capital Bond 01 ( - 0.7069%), and 25 Beibu Gulf Bank Secondary Capital Bond 01 ( - 0.5666%) [3]. - Among the premium bonds, the top four in premium rate were 24 Lin'an Rural Commercial Bank Secondary Capital Bond 01 (0.7546%), 24 Shangyu Rural Commercial Bank Secondary Capital Bond 01 (0.5037%), 24 Fudian Bank Secondary Capital Bond 01 (0.4851%), and 22 Weihai Commercial Bank Secondary Capital Bond 01 (0.3267%) [3].

Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core View of the Report The report presents a weekly data tracking of green bonds from July 28, 2025, to August 1, 2025, including primary market issuance, secondary market trading, and valuation deviation of the top 30 individual bonds. 3. Summary by Relevant Catalogs Primary Market Issuance - 13 new green bonds were issued in the inter - bank and exchange markets, with a total issuance scale of about 6.6 billion yuan, a decrease of 29.399 billion yuan from the previous week [1]. - The issuance term is mostly 2 years; the issuer's nature includes state - owned enterprises, Sino - foreign joint - ventures, central enterprise subsidiaries, local state - owned enterprises, and large private enterprises [1]. - The issuer's credit ratings are mostly AAA and AA+; the issuers are located in Beijing, Sichuan, Guangdong, Henan, Hubei, and Yunnan [1]. - The types of issued bonds include ultra - short - term financing bills, science and technology innovation bonds, ABNs of the National Association of Financial Market Institutional Investors, enterprise ABS, private placement corporate bonds, general corporate bonds, and PPNs [1]. Secondary Market Trading - The weekly trading volume of green bonds totaled 47 billion yuan, a decrease of 14 billion yuan from the previous week [2]. - By bond type, the top three in trading volume are non - financial corporate credit bonds (24 billion yuan), financial institution bonds (17 billion yuan), and interest - rate bonds (4.5 billion yuan) [2]. - By issuance term, green bonds with a term of less than 3 years had the highest trading volume, accounting for about 80.44%, indicating sustained market popularity [2]. - By issuer's industry, the top three in trading volume are finance (24.6 billion yuan), public utilities (11.2 billion yuan), and transportation equipment (1.6 billion yuan) [2]. - By issuer's region, the top three in trading volume are Beijing (19.8 billion yuan), Hubei (4.6 billion yuan), and Guangdong (3.9 billion yuan) [2]. Valuation Deviation of the Top 30 Individual Bonds - The overall deviation of the weekly average trading price valuation of green bonds was not significant, with the discount trading amplitude and proportion greater than the premium trading [3]. - Among the discount bonds, the top three in discount rate are G19 Huangshi (-1.1264%), 21 Fengcheng Green Bond 01 (-0.4837%), and 21 Linchuan Green Bond 02 (-0.3514%), and the other discount rates are within -0.35%. The main industries of the issuers are finance, public utilities, and real estate, and the regions are mostly Beijing, Shandong, and Guangdong [3]. - Among the premium bonds, the top four in premium rate are 23 Bank of Communications Green Bond 01 (0.8747%), 24 China Construction Bank Green Bond 01BC (0.7771%), 23 Postal Savings Bank Green Financial Bond 01 (0.5612%), and 25 Chery Auto Finance Green Bond 02 (0.5437%), and the other premium rates are within 0.52%. The main industries of the issuers are finance, comprehensive, and public utilities, and the regions are mostly Shanghai, Beijing, Tianjin, and Guangdong [3].

Employment Data - In July 2025, the U.S. added 73,000 non-farm jobs, significantly below the expected 104,000, marking a deviation of 1 standard deviation[3] - The previous month's job figure was revised down from 147,000 to 14,000, with a total downward revision of 258,000 jobs over the past two months, the largest since June 2020[3] - The unemployment rate rose to 4.248%, higher than the expected 4.2% and the previous 4.117%, the highest level since November 2021[3] Sector Analysis - The education and healthcare sectors have become the largest contributors to U.S. non-farm employment, with healthcare jobs up 13% compared to December 2019[3] - In July, the education and healthcare sector added 79,000 jobs according to non-farm data, while the ADP data showed a decrease of 38,000 jobs, indicating a divergence between the two reporting methods[3] - Other sectors, such as federal government and temporary assistance services, continue to see job losses, highlighting a weak employment growth in various industries[3] Data Revision Insights - The significant downward revision of previous non-farm data is attributed to a recalibration of seasonal adjustment factors by the BLS, rather than political motivations[3] - The feedback rates for May's non-farm data were 93.5% and 94.4%, yet the second revision still showed a decrease of 125,000 jobs, indicating potential issues in data collection and reporting[3] Market Implications - Short-term data fluctuations may increase asset price volatility, necessitating a focus on mid-term narratives such as the ongoing accommodative monetary policy and the challenges facing the U.S. dollar's credibility[2] - Risks include unexpected policy shifts from the Trump administration, excessive rate cuts by the Federal Reserve leading to inflationary pressures, and prolonged high interest rates causing liquidity crises in the financial system[2]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The strategic partnership with China Resources Sanjiu is expected to open up sales potential and share R&D costs for the product BGM0504 [8] - The collaboration allows the company to leverage Sanjiu's leading OTC channel capabilities, enhancing sales without transferring product ownership [8] - The company has a rich pipeline of innovative drugs and complex generics, with several products expected to enter clinical trials soon [8] - The forecasted net profit for 2025-2027 is projected at 2.6 billion, 3.0 billion, and 4.3 billion respectively, with corresponding P/E ratios of 160, 139, and 97 [8] Financial Summary - Total revenue is expected to grow from 1,283 million in 2024 to 1,762 million in 2027, with a CAGR of 15.11% from 2026 to 2027 [9] - The net profit is projected to recover from a decline in 2024 to 433.39 million by 2027, reflecting a growth rate of 43.06% [1][9] - The latest diluted EPS is forecasted to increase from 0.45 in 2024 to 1.03 in 2027 [1][9] - The company’s asset-liability ratio is expected to decrease from 50.50% in 2024 to 46.56% in 2027, indicating improved financial stability [9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4] Core Views - The company is expected to benefit from the impact of the U.S. tariffs on copper products, leading to a profit growth that may exceed expectations [1][3] - The demand for copper pipes in the U.S. is projected to grow, with a significant recovery in profitability anticipated for 2025 [3][10] - The tariff policy has resulted in a redistribution of profits, providing the company with a competitive advantage in negotiations due to its status as a local copper processing enterprise in the U.S. [3][10] Financial Forecasts - Total revenue is forecasted to reach RMB 75.749 billion in 2023, growing to RMB 137.957 billion by 2027, with a compound annual growth rate (CAGR) of 13.49% [1][11] - The net profit attributable to the parent company is expected to decline to RMB 703.30 million in 2024 but rebound to RMB 3.938 billion by 2027, reflecting a significant growth trajectory [1][11] - The earnings per share (EPS) is projected to increase from RMB 0.35 in 2024 to RMB 1.97 in 2027, indicating strong profitability growth [1][11] Tariff Impact and Market Dynamics - The U.S. tariffs on copper products are expected to enhance the company's profit margins, with an estimated profit of RMB 14,000 per ton after tax deductions [3][10] - The company's U.S. factory is anticipated to expand its production capacity significantly, with projections of reaching 90,000 tons by the second half of 2025 [10][11] - The anticipated increase in production and sales volume is expected to improve the company's capacity utilization and overall profitability [3][10]

Quantitative Models and Construction Methods 1. Model Name: "Day and Night Convergence" New Momentum Factor - **Model Construction Idea**: The model improves traditional momentum factors by incorporating the price-volume relationship during intraday and overnight trading sessions, leveraging the distinct characteristics of these two periods to enhance signal strength and stability [7][6] - **Model Construction Process**: 1. The trading period is divided into intraday and overnight sessions [7] 2. Price-volume relationships are separately analyzed for each session to identify unique patterns and characteristics [7] 3. The insights from these analyses are combined to construct a new momentum factor, referred to as the "Day and Night Convergence" factor [7] - **Model Evaluation**: The model demonstrates significant improvement in stability and performance compared to traditional momentum factors, effectively addressing the instability issues observed in the A-share market [6][7] --- Model Backtesting Results 1. "Day and Night Convergence" New Momentum Factor - **Annualized Return**: 18.08% [14] - **Annualized Volatility**: 8.75% [14] - **Information Ratio (IR)**: 2.07 [14] - **Monthly Win Rate**: 77.54% [14] - **Maximum Drawdown**: 9.07% [14]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue for H1 2025 reached 36.587 billion yuan, a year-on-year increase of 5.02%, driven by stable growth in power generation [9] - The company plans to invest approximately 26.6 billion yuan in the construction of the Gezhouba shipping capacity expansion project to enhance power generation efficiency [3] - The company aims to achieve a power generation target of 300 billion kilowatt-hours in 2025, with projected net profits of 35.028 billion yuan, 36.715 billion yuan, and 37.087 billion yuan for 2025, 2026, and 2027 respectively [10] Financial Performance Summary - Total revenue forecast for 2023A is 78.144 billion yuan, with a year-on-year growth of 13.48% [1] - The net profit attributable to shareholders for 2023A is projected at 27.245 billion yuan, reflecting a year-on-year increase of 14.83% [1] - The latest diluted EPS for 2023A is estimated at 1.11 yuan per share, with a P/E ratio of 25.14 [1] Operational Highlights - The company reported a total power generation of approximately 1266.56 billion kilowatt-hours in H1 2025, a 5.01% increase year-on-year [9] - The water inflow for the Wudongde reservoir was approximately 39.964 billion cubic meters, an increase of 9.01% compared to the same period last year [9] - The company is expected to benefit from a decrease in the ten-year government bond yield, which has fallen to 1.7% as of July 31, 2025 [10]

- The RPV factor (Renewed Correlation of Price and Volume) integrates intraday and overnight information by dividing price-volume into four quadrants. It leverages monthly IC averages to identify reversal and momentum effects. The factor incorporates "volume" information in correlation form, optimizing intraday and overnight price-volume relationships to create a robust selection factor[6][1][7] - The SRV factor (Smart Renewed Volume) splits intraday price movements into morning and afternoon segments, calculating minute-level "smart" indicators. It identifies the 20% of afternoon minutes with the highest "smart" indicator values as informed trading periods. The factor uses turnover rates during these periods and replaces overnight turnover rates with the last 30-minute turnover rate of the previous day, combining the best-performing intraday and overnight price-volume correlation factors[6][1][7] - The RPV factor achieved an annualized return of 14.44%, annualized volatility of 7.71%, IR of 1.87, monthly win rate of 72.46%, and maximum drawdown of 10.63% during the backtest period from January 2014 to July 2025[7][10] - The SRV factor achieved an annualized return of 17.15%, annualized volatility of 6.49%, IR of 2.64, monthly win rate of 74.64%, and maximum drawdown of 3.74% during the backtest period from January 2014 to July 2025[7][10] - In July 2025, the RPV factor's 10-group long portfolio returned 5.18%, the short portfolio returned 5.58%, and the long-short portfolio returned -0.39%[10] - In July 2025, the SRV factor's 10-group long portfolio returned 5.66%, the short portfolio returned 5.81%, and the long-short portfolio returned -0.15%[10]

Investment Rating - The report maintains a "Buy" rating for both A and H shares of Sinopec [1] Core Views - The company's performance in the first half of 2025 is expected to be under pressure, with a projected net profit decline of 39.5% to 43.7% year-on-year, primarily due to falling international oil prices and intense market competition [7] - Future benefits are anticipated from the reform of fuel consumption tax and the reduction of internal competition in refined oil products [7] - The report highlights the company's commitment to shareholder returns, projecting a dividend payout ratio of 73% for 2025, resulting in a dividend yield of 5.0% for A shares and 5.8% for H shares after tax [7] Financial Forecasts - Total revenue for 2025 is estimated at 2,959,498 million RMB, a decrease of 3.74% year-on-year [1] - The net profit attributable to shareholders is projected to be 50,172 million RMB for 2025, a slight decrease of 0.28% year-on-year [1] - Earnings per share (EPS) is expected to remain at 0.41 RMB for 2025, with a projected increase to 0.60 RMB by 2027 [1] - The report adjusts profit forecasts for 2025-2027, estimating net profits of 502 billion RMB, 604 billion RMB, and 723 billion RMB respectively [7] Operational Data - In H1 2025, the company expects to produce 263 million barrels of oil equivalent, with natural gas contributing to production growth [7] - Oil processing volume is projected to decline by 5.3% year-on-year to 120 million tons in H1 2025 [7] - Domestic refined oil sales are expected to decrease by 3.4% year-on-year, totaling 87 million tons in H1 2025 [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a decline in net profit for the first half of 2025, primarily due to increased expenses and impairment losses, despite revenue growth driven by operational services and product sales [7] - The company has initiated a stock incentive plan aimed at achieving significant growth in net profit from 2025 to 2027, reflecting confidence in future performance [7] - The company plans to expand its product offerings in the chemical sector, particularly in flotation agents and sodium sulfide, to capitalize on market demand [7] Financial Summary - The company expects total revenue to grow from 808.41 million RMB in 2023 to 1,724.02 million RMB by 2027, with a compound annual growth rate (CAGR) of approximately 16.86% [1] - The forecasted net profit for 2025 is adjusted to 163.15 million RMB, a decrease of 9.74% compared to the previous year, with a projected P/E ratio of 25.36 [1][7] - The company anticipates a significant increase in revenue and net profit over the next few years, with a target of 30% revenue growth in 2025 [7]