Investment Rating - The industry investment rating is "Overweight" [1] Core Insights - The release of DeepSeek's R1 model and subsequent multimodal model enhances the deployment of AI capabilities on the edge, with significant improvements in inference performance compared to existing models like OpenAI's [3][4] - The launch of large AI models by DeepSeek is expected to facilitate the integration of AI functionalities in consumer electronics, enhancing user experience and competitive advantage for manufacturers [4] - The demand for storage capacity is anticipated to increase due to edge AI applications, benefiting companies in the storage sector [5] Summary by Sections Industry Overview - The report highlights the rapid advancement of AI technologies, particularly in edge computing, with a focus on the capabilities of DeepSeek's models [3][4] Key Players - Key companies involved in low-power SoC chips include Hengxuan Technology, Chipsea Technology, and others, while high-performance SoC companies include Rockchip, Amlogic, and Allwinner Technology [5] - In the storage sector, companies like Zhaoyi Innovation and Beijing Junzheng are positioned to benefit from the increased demand driven by edge AI [5] Market Trends - Domestic smartphone manufacturers are increasingly adopting edge AI functionalities, which is expected to drive competition and innovation in the market [4]

Investment Rating - The report maintains a "Buy" rating for Aima Technology, Yadea Holdings, and Ninebot Company, indicating a positive outlook for these companies in the upcoming year [82]. Core Insights - The report highlights that the two-wheeler market is expected to see improved demand and optimized structure in 2025, driven by new policies and the "old-for-new" replacement program [5][82]. - Key investment catalysts include Q1 inventory replenishment, the peak season for the "old-for-new" program, and the trial sales of new standard vehicles in H2 [5][82]. - The report anticipates a 10-15% increase in demand due to the "old-for-new" policy, with potential sales reaching 540,000 to 720,000 units in 2025 [29][32]. Summary by Sections 2024: Can Expectations Be Met? - The report notes that the market consensus is that the "old-for-new" program will drive demand recovery [28]. - It predicts that the industry will see a significant increase in sales due to the new policies implemented in early 2025 [5][28]. 2025: How Will Market Divergence Evolve? - The report identifies three main areas of divergence: the pace of inventory replenishment, competition among leading brands, and the potential for profit margins to recover [50][69]. - It emphasizes that the concentration of market share among leading brands is likely to increase, with the top two brands expected to capture a larger share of the market [41][42]. Policy Impact - The new national standards and the "old-for-new" policy are expected to significantly benefit the operational aspects of the industry, eliminating previous policy disruptions [5][23]. - The report outlines that the new standards will lead to a marginal increase in demand, primarily driven by the "old-for-new" program [19][32]. Competitive Landscape - The report discusses the competitive dynamics among leading brands, noting that Aima is expected to benefit from a more certain growth trajectory, while Yadea is likely to see a recovery in its performance [5][82]. - It highlights the importance of product differentiation and pricing strategies in maintaining market share amid increasing competition [64][70]. Financial Projections - Aima Technology is projected to achieve a revenue growth of 22% in 2025, while Yadea Holdings is expected to see a recovery with a 28% increase in revenue [82]. - Ninebot Company is anticipated to continue its differentiated growth strategy, benefiting from expanded white list inclusion and increased subsidies [82].

Investment Rating - The industry investment rating is "Overweight" [1] Core Viewpoints - The release of DeepSeek's large models has led to multiple cloud platforms announcing the deployment of DeepSeek's models, indicating strong market adoption and integration [3] - The domestic AI computing power cards are expected to support the iteration of domestic large models, with significant contributions from companies like Haiguang Information and others in the domestic AI computing sector [5] Summary by Sections Industry Overview - DeepSeek has launched several models, with major cloud platforms like Volcano Engine, Tencent Cloud, and Baidu Intelligent Cloud announcing support for these models, showcasing a trend towards increased deployment of AI models in cloud environments [3][4] - The integration of DeepSeek models with domestic computing units, such as Haiguang's DCU, highlights the advancement in domestic AI computing capabilities [4] Key Companies - Recommended companies in the domestic AI computing sector include Haiguang Information, Sugon, and Loongson Technology, while cloud deployment-related companies include Century Internet, Runze Technology, and others [5] - Huawei's computing-related companies include Huafeng Technology and Weicai Technology, with additional mentions of companies in the Hongmeng ecosystem [5]

Group 1 - The report indicates that external risks, particularly related to trade tariffs, are expected to have limited impact on the market, while internal macro policy expectations are gradually rising as the "Two Sessions" approach [6][26][25] - Economic fundamentals show marginal changes, with a focus on upcoming Spring Festival consumption data and local government efforts to promote the "opening red" situation [7][29] - The report highlights that the market is transitioning from a defensive stance to actively seeking opportunities, particularly in high-growth technology sectors and seasonal infrastructure advantages [8][52] Group 2 - The first main line of opportunity is in high-elasticity growth technology sectors, including TMT and military industries, which are expected to benefit from clearer policies and a rebound in market sentiment [8][56] - The second main line focuses on infrastructure sectors that typically exhibit strong seasonal effects, with a particular emphasis on eight high-probability areas such as engineering consulting and environmental equipment [10][53] - The third main line emphasizes undervalued banking and insurance sectors, which are expected to show strong performance supported by robust earnings forecasts and favorable long-term investment policies [10][55]

Group 1 - External risk mitigation is expected to positively boost market preferences, with optimism for the post-Spring Festival market [2][11] - The announcement by Trump to suspend tariffs on Canada and Mexico indicates potential easing of external risks, which may uplift market sentiment [2][12] - Domestic consumption data during the Spring Festival did not show significant improvement, aligning with market expectations [3][14] Group 2 - High elasticity growth sectors and strong seasonal infrastructure opportunities are timely, with a focus on TMT, military, and robotics [4][29] - The report identifies eight key sectors with strong seasonal effects in infrastructure, including engineering consulting services, environmental equipment, and cement [7][25] - The DeepSeek phenomenon is expected to enhance investment opportunities in the AI sector, with significant cost savings and performance advantages [5][16][22] Group 3 - The report emphasizes the importance of the upcoming "Two Sessions" policy expectations and major catalytic events like DeepSeek and the Spring Festival Gala robot [4][29] - The banking and insurance sectors are highlighted for their low valuations and strong performance forecasts, making them attractive for investment [30][31]

Investment Rating - Industry investment rating: Overweight [2] Core Insights - DeepSeek has achieved breakthroughs in both AI model performance and cost, which is expected to accelerate the domestic AI progress [3][4] - The latest AI model DeepSeek-R1 has shown excellent performance in various benchmark tests, particularly in mathematical reasoning and programming tasks, scoring 79.8% in the AIME 2024 math benchmark, slightly higher than OpenAI's o1 model at 79.2%, and 97.3% in the MATH-500 benchmark, outperforming o1's 96.4% [3][4] - DeepSeek has also released the multimodal open-source model Janus-Pro, which outperformed Stable Diffusion and OpenAI's DALL-E 3 in GenEval and DPG-Bench benchmarks [3] - The report highlights the innovative training process and new algorithm applications that DeepSeek has utilized to achieve these advancements [4] Summary by Sections AI Model Performance - DeepSeek-R1's performance is comparable to leading models, indicating significant advancements in AI capabilities [3][4] - The introduction of DeepSeek-V3 showcases a combination of efficient architecture and innovative technologies, including MoE architecture and FP8 mixed-precision training [4] Investment Recommendations - The report suggests that the ongoing decline in unit costs for generative AI will accelerate technology expansion and increase application scenarios [5] - Key companies to watch include Alibaba-W, Tencent Holdings, Baidu Group-SW, and Kingsoft Cloud, as they are expected to benefit from increased demand for cloud infrastructure due to AI adoption [5] - The report also recommends monitoring companies involved in edge AI and SaaS applications, such as Xiaomi Group-W and Kingsoft Office, as they are crucial for AI implementation [5]

Investment Rating - The industry investment rating is "Overweight" [1] Core Views - In 2024, China's new photovoltaic installed capacity is expected to reach 277GW, representing a year-on-year increase of 28%. The price of the industry chain remains stable, and by the end of 2024, the inventory of silicon wafers and battery cells is expected to be nearly depleted. The market's response to actual price increases will be more sensitive, while reactions to policy details may be dulled [3][11] - For wind power, the domestic installed capacity in 2024 is projected to be 79GW, a year-on-year increase of 5%. December alone saw an addition of 27.6GW, a month-on-month increase of 364%. The commencement of offshore wind projects has exceeded expectations, boosting market sentiment [3][24] - In the energy storage sector, new installations of 42.37GW/101.13GWh are anticipated in 2024. The large-scale storage market is rapidly developing, with traditional markets expanding and emerging markets rising, indicating potential benefits for the industry chain [3][29] - The hydrogen energy sector is experiencing strong growth, with multiple regions actively laying out plans. Investment in hydrogen energy is expected to enter a window period, with a focus on hydrogen production and storage [3][31] - The humanoid robot sector is seeing significant advancements, with companies like Yushu Technology and Kuawei Intelligence making progress. The humanoid robot is considered one of the most important applications of AI technology, with a promising outlook [3][32] Summary by Sections Photovoltaic - In 2024, the total new installed capacity is projected at 277GW, up 28% year-on-year [3][8] - The industry chain prices are stable, and inventory levels are expected to normalize by the end of 2024 [3][14] - The market is expected to respond sensitively to price increases and policy details [3][23] Wind Power - The domestic wind power installed capacity for 2024 is expected to be 79GW, a 5% increase year-on-year [3][24] - December 2024 saw a significant increase in new installations, with 27.6GW added [3][24] - The market is optimistic about offshore wind projects, which are expected to drive growth [3][25] Energy Storage - New energy storage installations are expected to reach 42.37GW/101.13GWh in 2024 [3][29] - The market is rapidly developing, with significant growth in both traditional and emerging sectors [3][29] Hydrogen Energy - The hydrogen energy sector is witnessing robust development, with various regions actively investing [3][31] - Focus areas include hydrogen production and storage, which are expected to see increased investment [3][31] Humanoid Robots - Significant advancements in humanoid robots are being made by companies like Yushu Technology and Kuawei Intelligence [3][32] - The sector is viewed as a key application of AI technology with a broad future potential [3][32] Electric Grid Equipment - The total investment in electric grid projects for 2024 is projected at 608.3 billion yuan, a 15.3% increase year-on-year [3][41] - The overall electricity consumption is expected to grow by 6.8% in 2024, with significant contributions from various sectors [3][41] New Technologies - Multiple regions are actively planning for low-altitude development, integrating air, land, and sea [3][45] - Policies are being implemented to support the growth of low-altitude economies, enhancing regional economic competitiveness [3][45]

Investment Rating - The industry investment rating is "Overweight" [1] Core Insights - The report highlights that the development of high-level intelligent driving functions is being driven by policies, with the intelligent driving and intelligent networking sectors entering a phase of resonance [3][27] - The competition in the intelligent driving sector is intensifying, with domestic automakers striving to capture market share by launching basic versions of intelligent driving without lidar, targeting the lower price segments [4] - The report emphasizes that the sales and operational competitiveness of automakers are increasingly linked to their intelligent driving capabilities, with Tesla expected to enter the European and Chinese markets with its Full Self-Driving (FSD) technology [5] Summary by Sections 1. Policy Promotion of High-Level Intelligent Driving Functions - The intelligentization index has shown a fluctuating upward trend, with a notable increase in high-end models and new energy vehicles [18] - The networking index has also seen steady improvement, with the latest figures indicating a historical high [19] - The definitions of intelligentization and networking have been adjusted, making it more challenging for high-sales models to meet the criteria for intelligentization [22] 2. Rapid Popularization of Intelligent Driving - Domestic automakers are actively pursuing market share in the intelligent driving sector, with significant advancements in sensor suite solutions [4] - The report notes that the penetration rate of advanced parking assistance (APA) features is expected to reach 20.6% in Q1-Q3 of 2024, while high-level automated parking features remain under 2% [4] - The report suggests that 2025 will be a pivotal year for the widespread adoption of basic intelligent driving experiences, with a focus on market recognition of intelligent driving labels [7] 3. Intelligent Driving Functions: Market Competitiveness of Automakers - Tesla's global sales are projected to reach approximately 1.79 million units in 2024, with China becoming its largest market [5] - Domestic automakers are making significant strides in technology development, with companies like Xiaopeng and NIO launching new models and technologies [5] - The report highlights the importance of intelligent driving features in enhancing the sales performance of various models [5] 4. Intelligent Driving Driving Core Component Penetration - The report anticipates a significant increase in lidar deliveries, with an expected total of 1.5 million units for the year [6] - The installation of millimeter-wave radar is also on the rise, with a year-on-year increase of 11.5% expected in H1 2024 [6] - The market for vehicle-mounted cameras is expanding, with a projected installation volume of 64.21 million units in Q1-Q3 of 2024, reflecting a year-on-year growth of 32.6% [6] 5. Related Component Companies in the Intelligent Driving Sector - The report suggests monitoring companies involved in the supply of intelligent driving components, such as SUTENG, Hesai Technology, and Desay SV [7]

Group 1 - The core conclusion indicates that risks remain after Trump's inauguration, with a focus on domestic and international policy directions [2][19][20] - The report suggests a cautious investment strategy, with a preference for U.S. stocks and expectations for domestic commodity prices to be boosted [4][45] - The analysis highlights that the economic fundamentals show marginal changes, with attention on the upcoming Spring Festival consumption data [14][18] Group 2 - The report emphasizes the importance of the upcoming "Two Sessions" and the potential for macro policy expectations to improve market sentiment [29][104] - It notes that the financial sector is expected to benefit from a potential loosening of domestic liquidity post-holiday [4][29] - The analysis indicates that the consumer sector is under pressure, with high-frequency data showing no significant improvement in internal consumption dynamics [4][18] Group 3 - The report discusses the anticipated stability in bond yields, with short-term interest rates expected to remain unchanged in the near term [53][58] - It highlights that the U.S. Treasury yields are likely to experience upward pressure, particularly on long-term bonds, due to economic resilience [70][71] - The analysis suggests that the market is awaiting new policy signals from the Federal Reserve, with a focus on the implications for interest rates [70][72] Group 4 - The report indicates that commodity prices are under pressure due to concerns over Trump's potential trade policies and the Fed's hawkish stance [86][91] - It notes that while oil prices may remain under pressure, there is a medium to long-term bullish outlook for gold due to geopolitical risks and central bank purchases [100][101] - The analysis suggests that domestic commodities may see price support from proactive local government policies and infrastructure investments [104][106] Group 5 - The report highlights the potential for the U.S. dollar to weaken following Trump's relatively moderate inauguration speech [131] - It discusses the implications of the U.S.-China monetary policy divergence on the Chinese yuan, with expectations for a rebound before any potential rate cuts [135][136] - The analysis indicates that the trade balance and foreign exchange reserves are under scrutiny, with recent trends showing continued outflows [136][137]

Investment Rating - The report assigns a "Buy" rating for the company, Yisheng Co., Ltd. (002458) [1][8] Core Viewpoints - Yisheng Co., Ltd. is the largest breeding enterprise for white feather broiler parent stock in China, holding approximately one-third of the imported white feather broiler market share. The company has been a leader in the breeding of broiler chicks for nearly 20 years and is expected to benefit from the rising prices of broiler chicks [4][7][75] - The company has a strong focus on the chicken breeding industry and is expanding its pig breeding business, with the release of breeding pig capacity expected in 2024 [4][6][7] - The white feather broiler chick business has been the main source of revenue and profit for the company, accounting for 79%-93% of total revenue from 2015 to 2023, with a gross profit of 3.6 billion yuan from this segment in the first half of 2024 [4][16] Summary by Sections Company Overview - Established in 1989, Yisheng Co., Ltd. specializes in the breeding and supply of high-generation livestock and poultry breeds, including broiler chicks and breeding pigs. The company has maintained its position as the largest breeding enterprise for white feather broiler parent stock in China [4][14] Chicken Business Expansion - The company has seen a steady increase in the sales of parent and commercial broiler chicks, with sales rising from 373 million to 586 million from 2019 to 2024. The sales of the 909 small white feather broiler chicks also increased from 76.44 million to 82.99 million during the same period [5][60] - The price of parent and commercial broiler chicks has been rising, driven by factors such as low import volumes and increased demand for white feather chicken products [5][42][56] Pig Breeding Business - Yisheng Co., Ltd. has over 20 years of experience in breeding pigs, with sales increasing from 0.2 million heads in 2021 to 3 million heads in 2024, reflecting a compound annual growth rate of 145.5% [6][66] - The company plans to sell 150,000 breeding pigs in 2025, with a target of reaching 200,000 heads at full capacity [6][66] Financial Projections - The company is projected to achieve main business revenues of 3.26 billion yuan, 5.06 billion yuan, and 5.5 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 559 million yuan, 1.38 billion yuan, and 1.44 billion yuan [7][75]