Investment Rating - The investment rating for the chemical raw materials industry is optimistic (maintained) [1] Core Insights - The fluorochemical index increased by 7.76% during the week of December 22-26, outperforming the Shanghai Composite Index by 5.88% [6][25] - The market for fluorinated refrigerants is expected to continue its upward trend, with stable prices for fluorite and a potential recovery in the market [4][19] - Jinshi Resources plans to acquire a 15.7147% stake in Noah Fluorochemical, entering the liquid cooling sector [10][19] Summary by Sections Fluorochemical Market Overview - The average market price for fluorite (97% wet powder) was 3,290 CNY/ton as of December 26, remaining stable compared to the previous week [19][33] - The average price for December was 3,300 CNY/ton, down 10.13% year-on-year, while the average price for 2025 is projected at 3,481 CNY/ton, a decrease of 1.80% from 2024 [19][33] Refrigerant Pricing Trends - As of December 26, refrigerant prices were as follows: R32 at 63,000 CNY/ton, R125 at 47,500 CNY/ton, R134a at 58,000 CNY/ton, R410a at 54,000 CNY/ton, and R22 at 16,000 CNY/ton [21][24] - The external trade prices for these refrigerants remained stable, with R32 at 61,000 CNY/ton and R134a at 50,000 CNY/ton [21][24] Market Dynamics - The confidence of refrigerant companies and distributors in seasonal demand has increased, leading to price hikes for various refrigerant products [22][23] - The current low inventory levels are expected to drive further transactions and gradual price increases as demand recovers [23] Recommended Stocks - Recommended stocks include Jinshi Resources, Juhua Co., Sanmei Co., and Haohua Technology, with other beneficiaries being Dongyangguang, Yonghe Co., Dongyue Group, and Xinzhoubang [11][23]

Group 1: New Companies Listed - A total of 10 new companies were listed, with an average revenue of 732 million and a median of 699 million; the average net profit was 47.53 million, with a median of 40.94 million. Notable companies include Yaxun Zhiliang, Qingwa Pump Industry, and Yinuo Biotech [4][16][19] - Yaxun Zhiliang (874947.NQ) is a full-stack integrated vehicle networking software and component supplier, with expected revenue of 801 million and a net profit of 42.03 million in 2024. The company holds 463 domestic and 10 foreign invention patents [4][5][17] - Qingwa Pump Industry (874926.NQ) is recognized as an "invisible champion" in the well submersible pump sector, with a revenue of 537 million and a net profit of 104 million in 2024. The company has ranked first in national sales for six consecutive years from 2019 to 2024 [4][36] - Yinuo Biotech (875019.NQ) specializes in bio-based furan and polyol, with expected revenue of 945 million and a net profit of 104 million in 2024. The company is expanding its applications into various sectors including aerospace and high-end electronic materials [5][19] Group 2: Market Data and Trends - As of December 28, 2025, there are 5,956 companies listed on the New Third Board, with 2,295 in the innovation layer and 3,661 in the basic layer. The number of listed companies has decreased to below 6,000 [3][6] - The total market capitalization of listed companies reached 24,194.71 billion as of November 2025, with a total transaction amount of 53.09 billion in November 2025 and an annual total of 574.17 billion [6][39] - The market for stainless steel well submersible pumps is projected to grow from 2.01 billion in 2018 to 5.55 billion by 2028, with a CAGR of 10.69%. The penetration rate of stainless steel pumps is expected to increase from 27.8% in 2018 to 41.1% by 2028 [42][46] Group 3: Company Innovations and Competitive Landscape - Yaxun Zhiliang has established a strong R&D foundation with 487 technical personnel and has participated in the formulation of 11 national standards and 6 industry standards. The company has received multiple national honors, enhancing its competitive edge [21][30] - Qingwa Pump Industry has developed a comprehensive product system with over 500 models, focusing on energy efficiency and environmental protection. The company is positioned to replace traditional cast iron pumps with its stainless steel products due to their superior characteristics [40][45] - The competitive landscape in the well submersible pump market includes both specialized companies like Qingwa and multi-category pump manufacturers. The market is characterized by a mix of small-scale enterprises and larger firms with diverse product lines [45][46]

Core Insights - The report highlights a continued slowdown in corporate profits, with the cumulative profit of large-scale industrial enterprises in China showing a year-on-year increase of only 0.1% from January to November 2025, down from 1.9% in the previous period [3] - The report suggests that the current economic environment is characterized by a weak demand, necessitating further policy support to stimulate internal demand and address rising inventory levels [6][25] - The report emphasizes the importance of the upcoming spring market rally, suggesting a dual focus on technology and cyclical sectors for investment strategies [12] Macro Economic Analysis - The cumulative operating revenue of large-scale industrial enterprises from January to November 2025 increased by 1.6%, a slight decrease from the previous year's 1.8% [3] - November's profit margin saw a significant decline, with a year-on-year drop of 13.1%, indicating a challenging environment for industrial profitability [4] - The report notes that the inventory-to-sales ratio has risen significantly, indicating a need for policy intervention to stimulate demand [6] Industry Insights Chemical Industry - The report indicates an overall upward trend in the polyester industry chain, driven by rising prices of PX and PTA, with PX prices increasing by 6.97% and PTA by 8.95% as of December 26, 2025 [35] - The report highlights the importance of the "anti-involution" policy in supporting price stability and profitability within the chemical sector [36] Real Estate - The report notes a month-on-month increase in new and second-hand housing transaction areas, with Beijing further optimizing housing purchase restrictions [40] - The report indicates that various policies aimed at stabilizing the real estate market are beginning to take effect, contributing to a gradual recovery in housing prices [41] Electronics - The electronics sector is experiencing a high level of prosperity, with significant price increases expected in storage components, driven by strong demand and supply constraints [46][49] - The report highlights the positive performance of semiconductor stocks, with notable increases in stock prices for major players like SK Hynix and Micron [46] Biotechnology - The report discusses the upcoming IPO of Rebio Biotech, which focuses on innovative siRNA technology platforms for treating chronic diseases and cancers [52][54] - The company has established multiple clinical research pipelines and has secured significant partnerships with major pharmaceutical firms, indicating strong growth potential [55]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The first batch of L3 autonomous vehicles has been approved for large-scale operation in Chongqing, with 46 vehicles equipped with L3 autonomous driving systems [5][13] - A new national standard for electric vehicle energy consumption will be implemented in 2026, tightening limits by approximately 11%, requiring two-ton vehicles to consume no more than 15.1 kWh per 100 km [14] - Changan Automobile's L3 approved models have undergone over 5 million kilometers of testing without any violations [15] - Toyota plans to exceed a global production of 10 million vehicles in 2026 to meet the growing demand for hybrid models, maintaining high production levels [20] - The automotive sector in China has seen a significant decline in imports, with a 30% year-on-year drop in the first 11 months of 2025 [19] Industry News Highlights - The first L3 autonomous vehicles are now operational in Chongqing, marking a significant milestone in autonomous driving technology [5][13] - The new electric vehicle energy consumption standard aims to enhance energy efficiency and support the high-quality development of the automotive industry [14] - Changan's L3 models have been validated through extensive testing, showcasing the company's commitment to safety and reliability [15] - Toyota's production strategy reflects its response to market demands and aims to sustain its competitive edge in the automotive industry [20] - The decline in vehicle imports indicates a shift towards domestic production and the growing strength of local automotive brands [19] Market Performance - The automotive sector outperformed the broader market, with a weekly increase of 2.66%, ranking 13th among A-share industries [6][32] - The passenger vehicle index rose by 2.87%, led by BYD and Haima Automobile [6][33] - The automotive parts sector saw a 3.57% increase, with significant gains in various sub-sectors [6][35] Investment Recommendations - For passenger vehicles, the demand for high-end domestic luxury cars is exceeding expectations, with recommendations for Jianghuai Automobile and Seres, while Geely is identified as a beneficiary [7] - In the automotive parts sector, companies like Desay SV and Zhejiang Xiantong are recommended due to their growth potential amidst industry changes [7]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights the rapid growth of the community dining sector in China, with the market size expected to reach RMB 2,137.6 billion by 2028, reflecting a compound annual growth rate (CAGR) of 9.4% from 2023 to 2028 [4][16] - The Hainan Free Trade Port has seen significant policy benefits, leading to increased consumer and trade activity, with notable growth in duty-free shopping and foreign trade enterprises [12][13] - The "oil-based skincare" segment is experiencing expansion, with both international and domestic brands enhancing their product offerings, which is expected to drive industry growth [27][28] Summary by Sections Hainan Free Trade Port Tracking - The first week of the Hainan Free Trade Port's full closure saw duty-free shopping amounting to RMB 1.1 billion, with a year-on-year increase of 54.9% [12] - The number of new foreign trade registered enterprises in Hainan increased by 2.3 times year-on-year, with over 30,000 new registered customs declaration units for the year, up over 40% [12] - Passenger throughput at Meilan Airport increased by 11.8% year-on-year during the first week of closure [13] Community Dining - The community dining sector has grown rapidly, with the market size increasing from RMB 1,141.4 billion in 2018 to RMB 1,365.8 billion in 2023, a CAGR of 3.7% [14][19] - JD's "Seven Fresh Kitchen" has opened over 30 stores in Beijing, aiming to establish 10,000 stores in three years, focusing on a dual model of delivery and self-pickup [18][24] - The "锅圈" (Guoquan) has expanded its store size and product offerings, transitioning from a simple grocery model to a comprehensive community kitchen service [24] Oil-based Skincare - The "oil-based skincare" market is seeing increased competition from both international luxury brands and domestic brands, with a focus on high-quality ingredients and effective formulations [27][28] - Lin Qingxuan has maintained the top market share on platforms like Taobao and Douyin, with a significant increase in its market share on Douyin by 13.8 percentage points compared to the previous year [28][33] - The report emphasizes the importance of product innovation and the introduction of new active ingredients to meet diverse consumer needs [28] Market Performance Overview - The Hong Kong retail sector outperformed the Hang Seng Index, while consumer services and media sectors lagged behind [34][35] - The report notes that the duty-free and dining sectors have shown strong performance, with specific companies like 多想云 (Duoxiangyun) and 中国中免 (China Duty Free Group) leading in stock performance [43][44]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Views - The REITs market is expected to continue to perform well due to the downward pressure on bond market interest rates, enhancing the attractiveness of REITs as high-dividend, low-risk assets. The expectation of increased participation from social security and pension funds is likely to improve the cost-performance ratio of allocations in this sector, presenting good investment opportunities [5]. Market Overview - In the 52nd week of 2025, the CSI REITs (closing) index was 783.86, down 2.59% year-on-year but up 1.39% month-on-month. The CSI REITs total return index was 1014.8, up 5.3% year-on-year and up 1.56% month-on-month. Year-to-date, the CSI REITs index has increased by 3.63%, while the CSI 300 index has risen by 35.74%, resulting in an excess return of -32.11% [7][16][21]. Weekly Performance - The trading volume of the REITs market reached 711 million units, a year-on-year decrease of 20.29%. The trading amount was 3.135 billion yuan, down 11.11% year-on-year. The turnover rate for the period was 2.62%, a decrease of 2.82 percentage points year-on-year [5][28][30]. Sector Performance - In the 52nd week, the weekly performance of various REITs sectors was as follows: affordable housing REITs increased by 3.65%, while environmental, highway, industrial park, warehousing logistics, energy, and consumer REITs had weekly changes of -0.04%, +0.67%, +2.05%, +2.94%, -0.32%, and +0.32% respectively. Monthly performance showed affordable housing down by 0.83% and other sectors with varying declines [38][54]. Upcoming Listings - There are currently 15 REITs funds awaiting listing, indicating an active issuance market. Notably, the Huatai Sanxia Clean Energy REIT has had its initial application accepted, and the CICC Xiamen Torch Industrial Park REIT has been filed for its initial public offering [8].

Group 1 - The report highlights the positive signals in the M&A market starting from 2024, driven by policies such as the "New National Nine Articles" and "M&A Six Articles," which aim to support mergers and acquisitions for high-quality development of listed companies [3][11][19] - The Beijing Stock Exchange (BSE) is positioned as a primary platform for mergers and acquisitions of innovative small and medium-sized enterprises, focusing on sectors like advanced manufacturing and modern services to promote industrial transformation and economic growth [3][19] - As of December 28, 2025, the BSE has recorded 46 significant investment and merger events, indicating a growing trend in M&A activities [3][22] Group 2 - The case study of Jinsai Technology's acquisition of Fenghua Electronics illustrates a strategic move to consolidate industry resources, with Jinsai acquiring 100% of Fenghua for a nominal price of 1 RMB while assuming a debt of 41.87 million RMB owed to the original controlling shareholder [4][28] - Fenghua Electronics reported a revenue of 28.88 million RMB and a net loss of 6.18 million RMB for 2024, highlighting the challenges faced by the company prior to the acquisition [4][31] - Jinsai Technology, recognized as a "little giant" in the quartz crystal oscillator industry, has seen a recovery in its fundamentals, with a revenue increase of 9.73% year-on-year in the first three quarters of 2025 [41][45] Group 3 - The quartz crystal oscillator industry in China has experienced growth, with the market size increasing from 5.496 billion RMB in 2015 to 8.288 billion RMB in 2024, reflecting a compound annual growth rate of 4.67% [4][19] - Jinsai Technology's strategic initiatives include establishing a subsidiary in Thailand to enhance its international presence and meet overseas customer demands, indicating a proactive approach to market expansion [39][34] - The report emphasizes the importance of mergers and acquisitions as a means for companies to diversify and strengthen their core competencies, particularly in emerging industries [20][19]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Views - The report highlights that the transaction area of new and second-hand homes has increased month-on-month, while year-on-year figures show a decline. The Ministry of Housing and Urban-Rural Development has emphasized policies to stabilize the real estate market [3][4][61] - The overall direction of the real estate market in China is moving towards stabilization, with potential for slight fluctuations in housing prices during this process. The report anticipates further stabilization of the market due to supportive fiscal and monetary policies [3][4][61] Summary by Sections Policy Developments - The Ministry of Housing and Urban-Rural Development is focused on winning the battle to ensure housing delivery, with 38 cities initiating self-renovation of old housing. Policies are being implemented to increase the supply of affordable housing and improve the quality of property services [4][12][14] - In Beijing, the social security requirement for non-local buyers to purchase homes has been reduced, and families with two children are allowed to buy multiple properties [4][12][14] Sales Performance - In the 52nd week of 2025, the transaction area of residential properties in 68 major cities reached 3.1 million square meters, showing a month-on-month increase of 8% but a year-on-year decline of 39%. Cumulatively, the transaction area for the year is 118.7 million square meters, down 19% year-on-year [5][17][36] - The transaction area for second-hand homes in 20 cities was 198,000 square meters, with a year-on-year decline of 23% but a month-on-month increase [36] Investment Trends - In the 52nd week of 2025, the total planned land area released in 100 major cities was 1.907 million square meters, with a total transaction area of 8.172 million square meters, reflecting a year-on-year decrease of 12%. The average transaction premium rate was 1.2% [42][44] - The transaction area for land in first-tier cities decreased by 33% year-on-year, while second-tier cities saw a 36% decline. However, third-tier cities experienced a 5% increase in land transaction area [42][44] Financing Conditions - The issuance of domestic credit bonds decreased by 1% month-on-month, totaling 4.29 billion yuan, with an average weighted interest rate of 2.23%, down 16 basis points [6][49][51] - The cumulative issuance of credit bonds for the year is 406.22 billion yuan, reflecting a year-on-year decrease of 1% [49][54] Market Performance - The real estate index increased by 1.91% in the week of December 22-26, 2025, underperforming compared to the Shanghai and Shenzhen 300 index, which rose by 1.95% [56][59] - The report identifies top-performing real estate stocks, including Hualian Holdings and Shoukai Shares, while also noting underperformers like Shijie Holdings [59][60]

Investment Rating - The industry investment rating is "Overweight" (maintained) [1] Core Insights - The report indicates a significant recovery in the electronic sector, with a notable increase in stock prices driven by improved sentiment around AI and strong performance in semiconductor and consumer electronics segments [3][4] - The storage market continues to show high demand, with price increases for NAND flash wafers and SSDs, reflecting a bullish outlook for the sector [6][7] Market Review - The electronic industry index rose by 4.71% this week, with semiconductors up 5.07% and consumer electronics increasing by 3.48%. Notable stock performances include SK Hynix rising by 9.51% and Micron by 7.10% [3][4] - The report highlights the impact of the Christmas season on tech stocks, contributing to overall market gains [3] Industry Updates - New product launches are driving market excitement, including Samsung's first 2nm processor and Huawei's nova 15 series, which features advanced technology and performance improvements [4] - Major companies are enhancing their computational power collaborations, with significant projects like Oracle's data center approved in Michigan [5] Pricing Trends - The report notes a continuous upward trend in storage prices, with NAND flash wafer prices increasing by over 10% and SSD prices rising by 15% to 20% [6] - Expectations for price hikes in wafer production are also noted, with companies like SMIC and TSMC implementing price adjustments [6] Investment Recommendations - The report suggests several beneficiaries from the current market conditions, including SMIC, Beijing Junzheng, and Huafeng Technology, among others [7]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights the upcoming IPO of Ruibo Bio, which has passed the hearing for listing on the Hong Kong Stock Exchange. The company focuses on innovative siRNA technology platforms targeting various chronic diseases and tumors [4][14] - Ruibo Bio has established multiple technology platforms, including RiboGalSTAR for liver-targeted delivery and RiboOncoSTAR for tumor targeting, with a pipeline that includes over 20 clinical candidates [5][15] - The report emphasizes the potential of the siRNA sector and recommends investment in leading CXO and research service companies, particularly in the innovative drug space [8] Summary by Sections Industry Performance - In the fourth week of December 2025, the pharmaceutical and biotechnology sector declined by 0.18%, underperforming the CSI 300 index by 2.13 percentage points, ranking 25th among 31 sub-industries [7][11] - The raw material drug sector showed the highest increase, rising by 2.05%, while the hospital sector experienced the largest decline, falling by 2.82% [31] Company Developments - Ruibo Bio has seven siRNA pipelines in clinical research, with its core product RBD4059 being the first siRNA drug for treating thrombotic diseases currently in Phase 2 clinical trials [5][14] - The company plans to advance 2-4 new candidates into clinical stages annually, supported by significant partnerships with major pharmaceutical companies, reflecting recognition of its R&D capabilities [6][22] Investment Recommendations - The report recommends focusing on innovative drugs and their supply chains, particularly in the small nucleic acid space, and suggests a monthly investment portfolio including companies like Sangamo Therapeutics and Innovent Biologics [8]