1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The target range for the 10 - year Treasury bond is 2 - 3%, with a central value of around 2.5%. Economic recovery is accelerating due to the falsification of the under - expected economic recovery and the implementation of wide - credit and wide - fiscal policies at the beginning of 2026. If there are wide - monetary policies, it may be a chance for reduction. Attention should be paid to the inflation situation, especially whether the PPI month - on - month increase can remain positive. If inflation rises continuously, there is a possibility of tightened funds, which will lead to an upward yield of short - term bonds. Real estate is a lagging indicator and may bottom out after the recovery of various economic indicators and the rise of the stock market [7]. 3. Summary by Relevant Catalogs Overall Situation - The total bond custody volume of Shanghai Clearing House and China Central Depository & Clearing Co., Ltd. (CCDC) in January was 179.31 trillion yuan (previous value: 178.55 trillion yuan), with a net monthly increase of 757.617 billion yuan (+302.571 billion yuan), and the month - on - month increase rebounded. The custody volume of Shanghai Clearing House decreased by 176.293 billion yuan (previous decrease: 204.504 billion yuan), with less decrease compared to December. The custody volume of CCDC increased by 933.910 billion yuan (previous increase: 507.075 billion yuan), and the month - on - month increase rebounded [3][4]. Bond Types - In Shanghai Clearing House, credit bonds contributed the main increment in the month, with a net monthly increase of 324.120 billion yuan; corporate credit - related bonds increased by 284.120 billion yuan; interest - rate bonds increased 74.000 billion yuan less month - on - month; inter - bank certificates of deposit decreased by 656.158 billion yuan. In CCDC, local government bonds contributed the main increment, with a net monthly increase of 549.357 billion yuan; interest - rate bonds increased by 1004.506 billion yuan; credit bonds increased by - 70.595 billion yuan. Overall, interest - rate bonds contributed the main increment. The custody volume of interest - rate bonds was 124.22 trillion yuan (previous value: 123.15 trillion yuan), with a net monthly increase of 1078.506 billion yuan; the custody volume of credit bonds was 34.14 trillion yuan (previous value: 33.88 trillion yuan), with a net monthly increase of 264.385 billion yuan; the custody volume of inter - bank certificates of deposit was 19.03 trillion yuan (previous value: 19.69 trillion yuan), with a net monthly increase of - 656.158 billion yuan [5]. Institutions - In Shanghai Clearing House, deposit - taking financial institutions, insurance companies, and securities firms increased their bond holdings, with net monthly increases of 134.960 billion yuan, 4.056 billion yuan, and 12.500 billion yuan respectively. Policy banks, broad - based funds, and overseas institutions had negative net increases, which were - 27.540 billion yuan, - 233.480 billion yuan, and - 88.957 billion yuan respectively. In CCDC, commercial banks were the main force in increasing bond holdings, with a net monthly increase of 1021.526 billion yuan. Insurance companies, broad - based funds, and overseas institutions had negative net increases in custody volume, which were - 12.460 billion yuan, - 473.979 billion yuan, and - 18.804 billion yuan respectively. Overall, commercial banks were the main force in increasing bond holdings. The custody volume of commercial banks was 95.55 trillion yuan (previous value: 94.40 trillion yuan), with a net monthly increase of 1144.653 billion yuan; the custody volume of securities firms was 3.22 trillion yuan (previous value: 3.15 trillion yuan), with a net monthly increase of 69.946 billion yuan; the custody volume of broad - based funds was 48.16 trillion yuan (previous value: 48.86 trillion yuan), with a net monthly increase of - 707.458 billion yuan; the custody volume of overseas institutions was 3.35 trillion yuan (previous value: 3.46 trillion yuan), with a net monthly increase of - 107.761 billion yuan [6]. Leverage - The overall leverage ratio of the bond market in January was 107.14% (unchanged from the previous month). By institution, the leverage ratios of commercial banks and securities firms increased, while that of non - bank institutions decreased. The leverage ratio of commercial banks was 105.00% (previous value: 104.61%), with a month - on - month increase of 0.38 percentage points; the leverage ratio of non - bank institutions was 109.73% (previous value: 110.17%), with a month - on - month decrease of 0.44 percentage points, among which the leverage ratio of securities firms was 143.11% (previous value: 140.07%), with a month - on - month increase of 3.04 percentage points [7].

Group 1: Real Estate and Construction - The real estate market continues to show signs of bottoming out, with a weak performance in new home sales during the Spring Festival period, reflecting poor supply and demand dynamics [3][9][12] - The land market has seen a significant decline in both supply and demand, with total land area launched in January 2026 down 16% year-on-year, and total land transaction value down 39% [11][12] - Policy measures such as the reduction of the value-added tax on second-hand housing and the lowering of minimum down payments for commercial properties indicate a generally accommodative policy environment [3][12] Group 2: Agriculture, Forestry, Animal Husbandry, and Fishery - The pig price is under pressure post-holiday due to the end of stocking and limited weight reduction, with the average price of pigs at 11.66 yuan/kg as of February 13, 2026, down 0.40 yuan/kg week-on-week [4][13] - The supply side shows a slight decrease in the average weight of pigs being marketed, indicating ongoing pressure from large pigs and structural pricing risks [13][14] - The overall market sentiment remains weak, with expectations of a seasonal decline in demand in the weeks following the holiday [14] Group 3: Retail and Consumer Services - The retail sector is experiencing a steady recovery in consumption, with payment transactions on the eve of the Spring Festival increasing by 21.64% compared to the previous year [5][19] - Key retail and catering enterprises reported an average daily sales increase of 8.6% during the first four days of the holiday compared to the same period in 2025 [19][25] - Investment recommendations focus on high-quality companies in the consumer sector, particularly those in gold and jewelry, offline retail, cosmetics, and medical aesthetics [26] Group 4: Pharmaceuticals - The company has entered into an exclusive licensing agreement with GSK for two siRNA pipeline products, with potential total transaction value reaching up to $1 billion [6][28] - Revenue forecasts for the company are maintained at 143 million, 169 million, and 201 million yuan for 2025, 2026, and 2027, respectively, with a downward adjustment in net profit estimates [6][28] - The collaboration with GSK highlights the company's growing recognition in the small nucleic acid drug development field, paving the way for future global partnerships [28][29]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has entered into an exclusive licensing agreement with GSK for two siRNA product pipelines, which will enhance its global collaboration efforts [4][5] - The revenue forecast for the company is maintained at 143 million, 169 million, and 201 million yuan for 2025, 2026, and 2027 respectively, while the net profit estimates have been revised downwards to -257 million, -208 million, and -199 million yuan for the same years [4][5] - The current stock price corresponds to a price-to-sales ratio (P/S) of 59.3, 50.2, and 42.1 for 2025, 2026, and 2027 respectively, indicating a long-term competitive outlook due to the company's focus on small nucleic acid pipeline development [4][5] Financial Summary - The company reported a revenue of 114 million yuan in 2023, with a year-on-year growth of 34.8%, and is projected to grow to 201 million yuan by 2027 [8] - The net profit for 2023 was -329 million yuan, with an expected improvement to -199 million yuan by 2027 [8] - The gross margin is expected to improve from 29.0% in 2023 to 34.2% in 2027, while the net margin is projected to improve from -287.9% to -99.2% over the same period [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4] Core Insights - The company has entered into an exclusive licensing agreement with GSK for two siRNA pipeline products, which will enhance its global collaboration efforts [4][5] - The revenue forecast for the company is maintained at 143 million, 169 million, and 201 million yuan for 2025, 2026, and 2027 respectively, while the net profit estimates have been revised downwards to -257 million, -208 million, and -199 million yuan for the same years [4][5] - The current stock price corresponds to a price-to-sales (P/S) ratio of 59.3, 50.2, and 42.1 for the years 2025, 2026, and 2027 respectively [4][5] Financial Summary - The company reported a revenue of 114 million yuan in 2023, with a year-over-year growth of 34.8%, and is projected to grow to 201 million yuan by 2027 [8] - The net profit for 2023 was -329 million yuan, with an expected improvement to -199 million yuan by 2027 [8] - The gross margin is expected to improve from 29.0% in 2023 to 34.2% in 2027 [8] - The company’s P/B ratio is projected to increase from 6.3 in 2023 to 17.8 in 2027 [8]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The real estate market continues to show weak performance, with both supply and demand sides under pressure. The new housing market is particularly weak during the Spring Festival period, while the second-hand housing market remains relatively stable. The land market is also experiencing a contraction in supply and demand, leading to a cautious market sentiment [8][41][44] Summary by Sections Spring Festival Market Transaction Volume - In the week before the Spring Festival, the total transaction volume of new homes in 40 cities was 133.68 million square meters, a year-on-year decrease of 31.5%. The week from the Spring Festival to the sixth day saw a transaction volume of 5.73 million square meters, down 20.4% year-on-year. The overall performance of the new housing market remains weak, with poor supply and demand [5][14][15] Second-hand Housing Prices - Since February 2026, second-hand housing prices have gradually stabilized. The Iceberg Index for 100 cities reached a low point of 10,025 yuan per square meter on February 8, 2026, and has rebounded to 10,034 yuan per square meter. Major cities like Beijing, Shanghai, and Shenzhen have seen slight rebounds of 0.3%, 0.6%, and 0.3% from their lows, respectively. Although the rebound is modest, it is significant given the lack of major real estate stimulus or monetary policy changes [6][22][27] Land Market - The land market has shown a significant cooling trend since the beginning of 2026, with both supply and demand weakening. In January 2026, the total land area launched across all types was 141 million square meters, a year-on-year decrease of 16%. The total transaction value of land in January was 121.5 billion yuan, down 39% year-on-year, with residential land transaction value dropping 47% [7][41][43][45] Investment Recommendations - The report suggests that the real estate sector is at a historical low in terms of allocation. Recommended stocks include strong credit real estate companies that are adept at capturing improvement-driven customer demand, such as Greentown China, Jianfa International Group, and China Overseas Development. Additionally, companies benefiting from both real estate recovery and consumption promotion policies, such as China Resources Land and Longfor Group, are also recommended [8][46]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights that the market is experiencing downward pressure on pig prices due to the end of pre-holiday stocking and limited weight reduction, alongside ongoing pressure from large pigs [3][4] - The average price of live pigs as of February 13, 2026, is 11.66 CNY/kg, reflecting a week-on-week decrease of 0.40 CNY/kg [3][4] - The report anticipates a seasonal decline in demand in the first 1-2 weeks post-holiday, compounded by insufficient weight reduction and potential concentrated supply release, leading to significant downward pressure on the spot market [4][22] Weekly Market Performance - From February 9 to February 13, the agricultural sector underperformed the market by 2.51 percentage points, with the Shanghai Composite Index rising by 0.41% while the agricultural index fell by 2.10% [6][26] - The fishery sector led the gains among sub-sectors, with notable stock performances from companies like Yuegui Co. (+24.22%), Xuelong Bio (+11.98%), and *ST Jiawo (+9.07%) [6][26] Price Tracking - As of February 13, 2026, the average price of live pigs is 11.73 CNY/kg, down 0.41 CNY/kg from the previous week; the average price of piglets is 25.50 CNY/kg, down 0.04 CNY/kg [7][39] - The average price of white strips has decreased to 16.45 CNY/kg, down 0.21 CNY/kg week-on-week [39] - The average price of beef has increased to 66.26 CNY/kg, reflecting a week-on-week rise of 0.26% [47] - The price of grass carp has risen to 17.17 CNY/kg, up 1.06% week-on-week [49] Key News - From 2026 to the end of 2030, three departments will exempt import value-added tax on imported seeds and sources to enhance agricultural quality and competitiveness [5][36] - In 2025, China's agricultural insurance premium income reached 155.55 billion CNY, providing risk protection of 5.3 trillion CNY [5][36] - The central government has allocated 1.25 billion CNY to support winter wheat growth initiatives [5][36]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report highlights a steady recovery in consumer spending during the Spring Festival, with significant increases in payment transactions and retail sales compared to the previous year [4][26] - The report emphasizes the importance of high-quality companies in high-growth sectors driven by emotional consumption themes [7][35] Summary by Sections Industry Dynamics - The Spring Festival saw a robust recovery in social consumption, with payment transactions on New Year's Eve reaching 4.931 billion, a 21.64% increase from the previous year [4][26] - Key regions like Hainan and cities such as Tianjin and Zhenjiang showed strong performance in retail and dining, with Hainan's duty-free shopping amounting to 1.03 billion yuan, up 20.9% year-on-year [4][27] - Domestic travel orders surged by 60%, and outbound travel orders increased by over 180% during the holiday period [4][26] Investment Recommendations - Investment Theme 1: Focus on high-end gold and fashion jewelry brands, recommending companies like Laopai Gold and Chaohongji for their differentiated product offerings [7][35] - Investment Theme 2: Emphasize retail companies adapting to trends and AI-enabled cross-border e-commerce leaders, with recommendations for Yonghui Supermarket and Aiyingshi [7][35] - Investment Theme 3: Highlight domestic beauty brands that cater to emotional value and innovative safe ingredients, recommending brands like Maogeping and Proya [7][35] - Investment Theme 4: Focus on differentiated medical beauty product manufacturers and leading medical beauty institutions, recommending companies like Meilitiantian Medical Health and Aimeike [7][35] Market Performance - The retail and social service indices reported declines of 1.59% and 0.78% respectively during the week from February 9 to February 13, 2026 [6][15] - The report notes that the education sector saw the highest growth among sub-sectors, while the watch and jewelry sector led the year-to-date performance with an 11.29% increase [6][18] Company Highlights - Laopai Gold reported a significant revenue increase of 250.9% in the first half of FY2025, driven by strong consumer demand and brand expansion [37] - Chaohongji is expected to achieve a net profit growth of 125% to 175% in FY2025, supported by its differentiated product strategy [37] - Maogeping and Proya are highlighted for their strong performance in the beauty sector, with Maogeping achieving a revenue increase of 31.3% in FY2025 [37]

Core Insights - The report highlights the ongoing tension between the US and Iran, with potential implications for global markets and trade policies [5] - It notes a significant decline in the US GDP growth rate, which may impact investment strategies moving forward [6] - The report emphasizes the importance of domestic consumption and technological advancements as key drivers for China's economic growth in 2026 [7] Industry Analysis Electronics - The demand for AI computing power is expected to continue growing due to the frequent updates of large models both domestically and internationally [36] - Major semiconductor companies are experiencing price increases due to heightened demand for AI-related products, with significant investments being made in production capacity [38][39] - Recommended stocks include Jiangfeng Electronics and other beneficiaries of the AI computing power expansion [40] Robotics - The report indicates that humanoid robots are entering a new strategic development phase, with significant government support and market interest following their prominent display during the Spring Festival [44] - The commercialization of humanoid robots is accelerating, with companies showcasing advanced capabilities beyond mere performance [45] - Key investment directions include core component suppliers and companies with strong AI algorithm capabilities [46] Food and Beverage - The food and beverage sector is showing signs of recovery, particularly in the liquor market, where high-end brands are outperforming [51] - The report suggests that consumer demand is being driven by longer stocking cycles and an increase in holiday consumption scenarios [52] - Recommended stocks include Guizhou Moutai and Shanxi Fenjiu, which are expected to benefit from the recovery in consumer spending [53] Non-Bank Financials - The report identifies a significant opportunity in the non-bank financial sector due to the migration of household deposits, which is expected to enhance the performance of insurance and brokerage firms [54] - The anticipated slow bull market is likely to attract more investment into these sectors, benefiting from increased market participation [55]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights that the 2026 Spring Festival marks a critical turning point for the widespread adoption of AI applications among consumers in China, transitioning from technical parameter competition to user experience and commercial closure [15][13] - The competition landscape in the C-end AI sector is characterized by a leading player, ByteDance, and two strong competitors, Alibaba and Tencent, with smaller firms facing increasing pressure [15][13] - AI applications are evolving from simple question-answering tools to executable task agents, emphasizing the importance of scenario adaptation capabilities [15][13] - The report recommends focusing on leading companies with robust AI deployment and ecosystem barriers, such as Alibaba, Baidu, and Pinduoduo, while also highlighting the rapid growth of domestic AI chips [4][7] Summary by Sections Internet Sector - The report emphasizes the synergy between AI commercialization and anti-involution policies, with ByteDance leading the C-end AI race through its content ecosystem and Alibaba enhancing its consumer engagement via the Qwen3.5 model [10][16] - The Spring Festival serves as a peak traffic period, significantly boosting user engagement and retention for AI applications [15][13] Smart Driving - Tesla's Cybercab, the first mass-produced autonomous vehicle, is set to launch in April 2026, aiming for a production capacity of 2 million units annually, with a target price below $30,000 [21][22] AI Developments - OpenAI's valuation is projected to reach $850 billion, with revenue forecasts exceeding previous targets, while Google’s Gemini 3.1 Pro shows significant improvements in abstract reasoning capabilities, outperforming competitors [24][26] - Domestic AI models, such as those from Zhiyuan and MiniMax, are gaining recognition, with significant stock price increases reflecting market confidence [33][6] Investment Recommendations - The report suggests focusing on AI commercialization and application expansion in the internet sector, recommending stocks like Alibaba, Pinduoduo, and Baidu [43] - In the computer sector, it highlights opportunities arising from increased IT spending by state-owned enterprises, recommending companies like Kingdee International and Baidu [43] - The automotive sector is poised for growth with the approval of L3 autonomous driving trials, with recommended stocks including XPeng Motors and Tesla [43]

Investment Rating - Investment rating: Positive (maintained) [1] Core Insights - The report highlights a strong growth trend in high-end tourism consumption in Hainan during the Spring Festival, driven by an extended holiday period that encourages longer leisure travel [4][14] - The restaurant sector experienced accelerated growth during the Spring Festival, with leading brands like Gu Ming and Guo Quan showing strong performance [6][27] - The beauty industry, particularly domestic cosmetics, continues to see steady growth in exports, with a narrative shift towards international markets [7][28] - The second-hand economy is thriving, particularly with high-end products like the iPhone 17 Pro Max, which has seen increased demand and trading activity [7][28] Summary by Sections 1. Travel and Tourism - The 2026 Spring Festival saw a "9-day no adjustment" policy, leading to increased travel intentions, with cross-regional movement expected to grow by approximately 9.4% to 12.3% during the holiday [14][15] - Hainan's airport passenger throughput increased by 7.8% and 9.7% compared to the same period in 2025, indicating robust tourism activity [15][16] 2. Restaurant Sector - Restaurant consumption during the Spring Festival showed a year-on-year increase, with key retail and restaurant enterprises reporting an average sales growth of 8.6% compared to 5.4% in 2025 [6][27] - Notable brands like Hai Di Lao reported significant customer traffic, with over 700 million customers served during the holiday period [27] 3. Beauty Industry - China's cosmetics exports have shown consistent growth, with export values surpassing 55 billion yuan in 2025, reflecting a positive trend in international market penetration [7][28] 4. Second-Hand Economy - The second-hand market has seen a surge, with the iPhone 17 Pro Max's share in trade increasing from 5.1% to 11.5% from late November to early February, indicating strong demand for high-end second-hand products [7][28] 5. Market Performance - The Hong Kong stock market for consumer services, media, and retail sectors underperformed compared to the Hang Seng Index, with declines of 1.56%, 1.97%, and 4.36% respectively [8][29] - Recommended stocks include those in tourism, education, and restaurant sectors, highlighting potential investment opportunities [8]