Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The resumption of VAT collection on bonds has a short - term positive and long - term negative impact on the bond market, but the overall impact is controllable. In the short term, the cost - performance of existing bonds and credit bonds has increased, and the bond market has risen stage by stage. In the long term, it may be unfavorable to the bond market. The probability of the bond market breaking through the previous low has decreased, and it may still fluctuate in the range of 1.65% - 1.70%. Attention should be paid to the primary issuance rate of new bonds after August 8 and the impact of macro factors on the risk preference of the bond market [2]. - When summarizing the views of fixed - income sellers on the resumption of VAT collection, there are bullish, neutral/ bearish views. Half of the fixed - income sellers are bullish on the bond market this week, but the sentiment has declined compared with last week. The sentiment of fixed - income buyers is relatively cautious, and nearly 70% are neutral [3]. Summary According to the Directory 1. Seller and Buyer Markets 1.1 Seller Market Sentiment Index and Interest - rate Bonds - The weighted index of the seller sentiment this week is 0.33, and the unweighted index is 0.47, both showing a decline compared with last week. The current institutions generally hold a neutral - to - bullish view, with 15 bullish, 14 neutral, and 1 bearish. 50% of the institutions are bullish, and 47% are neutral, and 3% are bearish [13]. 1.2 Buyer Market Sentiment Index and Interest - rate Bonds - The weighted sentiment index of buyers this week is 0.08, and the unweighted index is 0.11, with the unweighted index decreasing by 0.08 compared with last week. Currently, institutions generally hold a neutral - to - bullish view, with 6 bullish, 19 neutral, and 3 bearish. 21% of the institutions are bullish, 68% are neutral, and 11% are bearish [14]. 1.3 Credit Bonds - Market hot topics include preventive redemptions of wealth management products and a decline in the scale of credit - bond ETFs. The preventive redemptions of wealth management products are due to the central bank's continuous net withdrawal and tightened capital, leading to selling pressure on credit bonds. The growth of credit - bond ETFs has slowed down, and the subsequent increase in ETFs may fall short of expectations [19]. 1.4 Convertible Bonds - Institutions generally hold a neutral - to - bullish view this week, with 10 bullish and 3 neutral. 77% of the institutions are bullish, and 23% are neutral [22]. 2. Treasury Bond Futures Tracking 2.1 Futures Trading - As of August 1, the prices of TS/TF/T/TL contracts of treasury bonds have all increased, while the trading volume, open interest, and trading - to - open - interest ratio have all decreased [26][27]. 2.2 Spot Bond Trading - On August 1, the turnover rates of 30 - year treasury bonds and interest - rate bonds decreased, while the turnover rate of 10 - year China Development Bank bonds increased [32][36]. 2.3 Basis Trading - As of August 1, the basis and net basis of the main contracts have all narrowed, and the IRR has generally increased [41][44]. 2.4 Inter - delivery Spread and Inter - variety Spread - The inter - delivery spread of the TL contract has widened, while the spreads of other main contracts have narrowed. Among the inter - variety spreads, except for the 2*TF - T contract, the spreads of other main contracts have narrowed [51][52].

Investment Rating - The report assigns a "Buy" rating for the company [6] Core Viewpoints - The company is a leading enterprise in electric tool accessories with a diversified business layout that opens up growth space [4][6] - The global electric tool market is expected to recover, driving the development of components, with a projected 24.8% year-on-year increase in shipment volume in 2024 [4][41] - The company has established overseas subsidiaries in Vietnam, Mexico, and Singapore, enhancing its brand influence and facilitating the acquisition of overseas orders [4][49] Summary by Sections Company Overview - The company, originally established in 1976, has transformed from a cement product factory to a leading precision machinery manufacturer, particularly in the drill chuck business, which has maintained a global market share of approximately 50% for 24 consecutive years [13][14] - The company has diversified its product offerings to include electric tool accessories, high-end intelligent equipment manufacturing, and new energy solutions [16][19] Electric Tools Market - The electric tools market is anticipated to rebound after two years of decline, with a significant recovery expected in 2024, driven by urbanization and consumption upgrades [39][41] - The company is positioned as a core component supplier for major global brands, with products exported to over 80 countries [48] New Energy and High-end Intelligent Manufacturing - The new energy business focuses on lithium battery packs and has expanded into various applications, including outdoor energy storage and electric vehicle battery swap stations in collaboration with NIO [51][52] - The high-end intelligent manufacturing segment includes advanced machine tools and automation solutions, with successful overseas sales of five-axis machining centers [56][57] Financial Projections - The company is projected to achieve revenues of 25.59 billion, 29.00 billion, and 32.16 billion yuan for the years 2025 to 2027, with corresponding net profits of 3.22 billion, 3.65 billion, and 3.99 billion yuan [60]

Investment Rating - The industry investment rating is "Overweight" [1] Core Insights - Figma's IPO on July 31, 2025, saw its stock price surge by 250%, closing at $115.5 per share, with a market capitalization of approximately $56.302 billion and a price-to-sales ratio exceeding 75x, marking it as the largest IPO in the U.S. for 2025 [3][12] - Figma is a cloud-based collaborative interface design tool that disrupts traditional design tools by emphasizing real-time collaboration and cross-platform compatibility, catering to designers, developers, and product managers [3][12] - The long-term growth logic for Figma includes a comprehensive product matrix covering the entire front-end workflow, significant user penetration potential, rapid growth among top-paying enterprises, and international market expansion as a key growth driver [4][12] Summary by Sections 1. Computer Industry Insights - Figma's successful market entry and high market recognition are expected to boost the rise of domestic design software and strengthen the demand for "self-controllable" solutions, catalyzing growth in the AIGC industry chain [5][12] - Figma Make, a core product, integrates seamlessly with Figma's workflow, allowing front-end engineers to quickly generate basic code directories from design drafts, enhancing efficiency [5][13] 2. Market Performance Review - The computer industry index decreased by 0.20% this week, outperforming the Shanghai Composite Index by 0.74% and the ChiNext Index by 0.54% [15][18] - Year-to-date, the computer industry index has increased by 13.76%, ranking 7th among 31 industry indices [15][18] 3. Technology Software Industry News - The report highlights various sectors including EDA, industrial internet, automotive intelligence, fintech, smart healthcare, and artificial intelligence, indicating ongoing developments and regulatory measures in these areas [24][25][26][29][31][32]

Investment Rating - Industry Investment Rating: Overweight [1] Core Insights - The report highlights that the photovoltaic industry is experiencing a price increase across the supply chain, with silicon wafer, battery, and module prices rising, indicating a continued cost transmission from upstream to downstream [3][15][16] - The report emphasizes the ongoing development of large offshore wind projects across multiple regions, indicating a robust pipeline for future growth in the wind energy sector [4][21][25] - The implementation of mandatory national standards for energy storage is expected to enhance safety and market confidence, leading to significant growth in the energy storage sector [5][26][34] - The hydrogen energy sector is gaining momentum with new projects and government support, indicating a positive outlook for hydrogen production and application [6][35][40] - Increased capital expenditure forecasts from major tech companies like Microsoft and Meta are expected to drive demand for power equipment, presenting investment opportunities in the AIDC power equipment sector [7][41][44] Summary by Sections Photovoltaic - The report notes that the photovoltaic sector has seen a 2.08% decline in performance recently, underperforming the market [14] - Prices for silicon materials have stabilized with slight increases, while silicon wafers and battery prices continue to rise, indicating a positive trend in cost transmission [15][16] - The report suggests a cautious outlook for the third quarter of 2025, with expectations of demand decline due to market policy changes and potential impacts from U.S. tariffs [16][20] Wind Power - The report details ongoing large-scale offshore wind projects, including a 280MW project by China General Nuclear Power Group and an 800MW project in Dalian, indicating strong growth in the sector [4][21][22][23] - Investment opportunities are highlighted in companies with low valuations and those benefiting from offshore wind developments [25] Energy Storage - The introduction of the GB 44240-2024 standard is expected to enhance safety and market growth, with significant increases in installed capacity reported [26][27][34] - The energy storage market is experiencing rapid growth, particularly in commercial applications, with a notable increase in installations in Henan province [33][34] Hydrogen Energy - The report discusses the construction of a large-scale green hydrogen project in Saudi Arabia, indicating international collaboration and investment in hydrogen technology [35][39] - The hydrogen sector is included in the central bank's green finance support directory, which is expected to facilitate funding and development [38][40] Power Equipment - Microsoft and Meta's increased capital expenditure forecasts are expected to positively impact the AIDC power equipment sector, with specific companies highlighted for investment opportunities [41][44] - The report suggests that power equipment remains a critical component for economic growth, with various segments identified for potential investment [44]

Investment Rating - The industry investment rating is "Overweight" [1] Core Insights - OpenAI has announced the establishment of the first "Stargate" data center project in Narvik, Norway, with an initial capacity of 230 MW and plans to expand by an additional 290 MW, aiming to deliver 100,000 NVIDIA GPU clusters by the end of 2026 [4][5][37] - Major food delivery platforms, including Meituan, Ele.me, and JD.com, have collectively announced measures to curb disordered competition in the industry, emphasizing the need for fair competition and the reduction of excessive subsidies [4][12] Summary by Sections Market Review - From July 28 to August 1, 2025, the Shanghai Composite Index decreased by 0.94%, the ChiNext Index fell by 0.74%, and the CSI 300 Index dropped by 1.75%. The Hang Seng Tech Index saw a decline of 4.94%, while the Nasdaq Index decreased by 2.17%. The media index increased by 1.11%, and the AI index rose by 1.36% [3][24]. AI Sector Developments - OpenAI's data center project in Norway is expected to be a significant AI initiative in Europe, with an investment of approximately $1 billion from Nscale and Aker for the initial 20 MW phase [4][5]. - Domestic AI advancements include Xiaomi's browser upgrade to incorporate AI search capabilities and ByteDance's release of the experimental Seed Diffusion Preview model, which significantly improves code inference speed [6][37]. Semiconductor Industry - Samsung has confirmed that its Exynos 2600 will be the first chip manufactured using 2nm technology, enhancing AI capabilities in devices [39][41]. Smart Driving - Li Auto has launched its first six-seat electric SUV, the Li i8, priced between 321,800 to 369,800 CNY, featuring an upgraded VLA architecture for advanced driver assistance [10][41]. E-commerce and Local Life - The recent announcements from food delivery platforms indicate a shift towards rational competition, with expectations of reduced subsidy intensity leading to improved profitability [12][37].

Group 1 - The report indicates that the overall market trend remains positive in the medium term, despite recent minor adjustments due to external events such as the Central Political Bureau meeting and U.S.-China trade negotiations [2][3][4] - The report recommends three main investment lines: strong growth in technology sectors such as AI, robotics, and military; sectors with economic support or performance exceeding expectations like rare earths, precious metals, and agricultural products; and structural policies in service consumption and real estate that may lead to valuation recovery opportunities [2][4][40] Group 2 - The report highlights that the recent adjustments in the "anti-involution" theme and real estate sectors were due to the Central Political Bureau meeting's outcomes being below market expectations, suggesting a potential correction phase for these sectors [5][18][19] - The technology sector has shown resilience, with several industries reaching new highs, indicating that the current technology market may continue to develop positively as key warning indicators have not yet been fully met [6][26][35] - The report emphasizes the importance of monitoring five warning indicators to assess the sustainability of the current technology market, including valuation percentiles and market breadth [26][35][38]

1. Report Industry Investment Rating No relevant content provided. 2. Report's Core View - The resumption of VAT collection on treasury bonds, local government bonds, and financial bonds is expected to have a neutral impact on the bond market. The relatively low VAT rate and its application only to interest income limit the direct impact on the bond market [3][5][6]. 3. Summary by Directory 3.1 This Week's Institutional Behavior Review - **Yield Curve**: Yields on treasury bonds and China Development Bank bonds generally declined. Treasury bond yields decreased across various tenors, with the 1Y yield down 1bp, 3Y down 3bp, etc. China Development Bank bond yields also dropped, such as the 1Y yield down about 2bp and 3Y down 4bp [18]. - **Term Spread**: The spread between treasury bonds and China Development Bank bonds increased. For treasury bonds, the short - term spread was differentiated, and the long - term spread narrowed. For China Development Bank bonds, the spread increased, and the term spread generally narrowed [19][20][21]. 3.2 Bond Market Leverage and Funding Situation - **Leverage Ratio**: It dropped to 107.46%. From July 28 to August 1, 2025, the leverage ratio fluctuated upward during the week. As of August 1, it was about 107.46%, up 0.7pct from the previous Friday and 0.66pct from Monday [22]. - **Pledged Repurchase**: The average daily turnover of pledged repurchase this week was 6.6 trillion yuan, with an average daily overnight proportion of 86.77%. The average daily turnover decreased by 1.05 trillion yuan compared to last week [27]. - **Funding Situation**: Bank funding supply fluctuated upward. Large state - owned banks and policy banks had a net funding supply of 4.38 trillion yuan on August 1. The main fund - borrowing party was funds, and the money - market fund's funding supply fluctuated downward [33]. 3.3 Duration of Medium - and Long - Term Bond Funds - **Median Duration**: It dropped to 2.83 years. On August 1, the median duration (ex - leverage) was 2.83 years, down 0.05 years from the previous Friday; the median duration (including leverage) was 3.18 years, down 0.06 years from the previous Friday [47]. - **Interest - Rate Bond Fund Duration**: It dropped to 3.88 years. The median duration of interest - rate bond funds (including leverage) decreased to 3.88 years, down 0.06 years from the previous Friday [49][52]. 3.4 Category Strategy Comparison - **China - US Yield Spread**: The short - term spread narrowed, and the long - term spread widened. The 1Y spread narrowed by 1bp, 2Y by 4bp, etc., while the 7Y spread widened by 2bp, 10Y by about 4bp, and 30Y by 5bp [54]. - **Implied Tax Rate**: It generally narrowed. As of August 1, the 1Y spread between China Development Bank bonds and treasury bonds narrowed by 2bp, 3Y by about 1bp, etc. [57]. 3.5 Bond Lending Balance Changes - On August 1, the lending concentration of active and second - active 10Y treasury bonds, active 10Y China Development Bank bonds, and active 30Y treasury bonds trended upward, while that of the second - active 10Y China Development Bank bonds trended downward. All institutions showed an upward trend [58].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has demonstrated resilience and diversification in its business structure, with new application fields accounting for over half of its revenue [3] - In the first half of 2025, the company achieved operating revenue of 9.335 billion yuan, a year-on-year increase of 17.50%, and a net profit attributable to shareholders of 296 million yuan, up 7.46% year-on-year [3] - The company’s revenue from clean energy, smart grid, and smart equipment applications collectively accounted for over half of total revenue, with the electromagnetic wire business showing significant growth [3] - The company has successfully participated in several ultra-high voltage projects, with sales of ultra-high voltage transformers increasing by 241.18% year-on-year [3] Financial Performance - For the first half of 2025, the gross profit margin was 10.32%, a decrease of 0.67 percentage points year-on-year [3] - The company expects revenues of 20.033 billion yuan, 22.598 billion yuan, and 25.444 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 706 million yuan, 788 million yuan, and 879 million yuan [4][6] - The projected P/E ratios for 2025, 2026, and 2027 are 11.5, 10.3, and 9.2 respectively [4] Revenue Breakdown - Revenue from clean energy applications was 1.196 billion yuan, accounting for 12.81% of total revenue [3] - Revenue from smart grid applications was 2.600 billion yuan, making up 27.85% of total revenue [3] - Revenue from smart equipment applications was 878 million yuan, representing 9.41% of total revenue [3] - The electromagnetic wire business generated revenue of 3.746 billion yuan, a year-on-year increase of 29.67%, accounting for 40.13% of total revenue in the first half of 2025 [3]

Economic Indicators - July manufacturing PMI recorded at 49.3%, down from 49.7% in June, indicating a significant contraction and falling below market expectations of 49.6%[2] - Non-manufacturing PMI decreased to 50.1% from 50.5%, while the composite PMI output index fell to 50.2%[2] Demand and Supply Dynamics - New orders fell below the expansion threshold, with new export orders declining by 0.6 percentage points, marking a four-month low[5] - The production index showed a notable decline but remained in the expansion zone, indicating ongoing production activity despite weakening demand[3] Price and Cost Pressures - Major raw material purchase prices surged, leading to a significant increase in factory prices, although the increase in factory prices lagged behind raw material costs, creating a record price gap for the year[7] - The supply chain faced pressures as the supplier delivery time index slightly increased, indicating stable logistics efficiency amidst rising costs[3] Inventory and Procurement Trends - Finished goods inventory saw a substantial decrease, reflecting a shift from passive to active inventory reduction strategies by companies due to high costs and weak demand[8] - Procurement volumes dropped significantly, entering a contraction phase as companies adjusted their purchasing strategies in response to declining orders[5] Sector Performance - Equipment manufacturing PMI fell to 50.3%, while consumer goods PMI dropped to 49.5%, indicating a contraction in consumer demand[4] - Large enterprises experienced a decline in PMI, while medium-sized enterprises showed a slight recovery, highlighting a growing disparity among different business sizes[4] Future Outlook - The July PMI data reversed the optimistic expectations from June, indicating a retreat in demand, inventory cycles, and industry dynamics[10] - The bond market is expected to reflect these economic realities, with the ten-year government bond yield showing an upward trend despite the contraction in manufacturing PMI[12]

Investment Rating - Investment rating is maintained as "Buy" [1] Core Views - The company reported a revenue of 8.347 billion yuan for the first half of 2025, representing a year-on-year growth of 15.43% [2] - The net profit attributable to shareholders reached 964 million yuan, up 14.19% year-on-year, with a non-recurring net profit of 927 million yuan, growing 17.85% year-on-year [2] - The gross margin stood at 34.24%, a decrease of 0.54 percentage points year-on-year [2] Performance Summary - In Q2 2025, the company achieved a revenue of 4.364 billion yuan, reflecting a year-on-year increase of 15.51% [2] - The net profit attributable to shareholders for Q2 was 553 million yuan, up 13.25% year-on-year, with a non-recurring net profit of 546 million yuan, growing 20.52% year-on-year [2] - The gross margin for Q2 was 34.67%, with a slight increase of 0.03 percentage points year-on-year and 0.90 percentage points quarter-on-quarter [2] Product Performance - The company's relay products generated a revenue of 7.614 billion yuan in H1 2025, marking a year-on-year growth of 17.26% [3] - The company maintains the largest market share globally in the relay market, driven by strong growth in smart home, industrial automation, photovoltaic sectors, and the rapid development of electric vehicles [3] - The high-voltage control box project for electric vehicles is progressing smoothly, showing significant year-on-year growth [3] New Product Development - The "5+" new product categories, including switches, connectors, capacitors, fuses, and current sensors, are developing steadily [4] - The shipment of film capacitors increased by 31% year-on-year, and current sensors saw a 36% year-on-year growth [4] - The ceramic block DC fast fuse HPE509 received UL certification, indicating potential for stable growth as new customer projects are introduced [4] Financial Projections - Revenue projections for 2025, 2026, and 2027 are 16.371 billion yuan, 18.892 billion yuan, and 21.770 billion yuan, respectively [5] - Net profit projections for the same years are 1.961 billion yuan, 2.281 billion yuan, and 2.487 billion yuan, respectively [5] - Corresponding P/E ratios are expected to be 18.3, 15.7, and 14.4 times [5]