Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [5][8]. Core Views - The company is a leading supplier of power and communication transmission equipment, benefiting from the resonance of domestic and international offshore wind developments [5][7]. - The company has a diversified business structure focusing on marine equipment, optical communication, and power transmission [7][21]. - The offshore wind power sector is expected to rebound after years of low activity, with multiple provinces in China announcing future offshore wind power plans [10][59]. - The company is positioned to capitalize on the growing demand for optical communication driven by 5G network construction and increasing computing power needs [7][10]. Summary by Sections Market Performance - The closing price is 13.85 CNY, with a total market capitalization of 47,269.35 million CNY and a circulating market capitalization of the same amount [3]. Financial Forecast and Valuation - Revenue projections for 2023 to 2027 are 45,065 million CNY, 48,055 million CNY, 53,352 million CNY, 58,609 million CNY, and 64,577 million CNY, respectively, with growth rates of 11.91%, 6.63%, 11.02%, 9.85%, and 10.18% [6][8]. - The forecasted net profit attributable to shareholders for the same period is 3,117 million CNY, 2,838 million CNY, 3,419 million CNY, 4,188 million CNY, and 5,020 million CNY, with growth rates of -3.03%, -8.94%, 20.46%, 22.51%, and 19.86% [6][8]. - The price-to-earnings (P/E) ratios for 2025 to 2027 are projected to be 13.83, 11.29, and 9.42, respectively [6][8]. Business Overview - The company has a strong presence in the power transmission sector, focusing on a full product chain of power equipment, including special conductors and various types of cables [21][25]. - In the marine equipment sector, the company emphasizes the development of new technologies and materials for offshore wind energy transmission [7][24]. - The optical communication segment includes a wide range of products and services, positioning the company as a global leader in this field [7][21]. Investment Logic - The offshore cable market is characterized by strong profitability and a favorable competitive landscape, particularly with the trend towards high voltage and flexible direct current [10][29]. - The company is actively expanding into the European market, which is experiencing a peak in offshore wind construction, creating opportunities for domestic manufacturers [10][59]. - The company’s early investments in energy storage and its comprehensive product offerings position it well to benefit from the ongoing energy transition [7][10].

Investment Rating - The industry investment rating is "Positive" (maintained) [4][47] Core Viewpoints - In May, the total retail sales of consumer goods reached 41,326 billion yuan, with a year-on-year growth of 6.4%. Excluding automobiles, the total retail sales amounted to 37,316 billion yuan, growing by 7.0% year-on-year [5][6] - The growth in essential consumption remains stable, with significant year-on-year increases in categories such as grain and oil food (+14.6%), tobacco and alcohol (+11.2%), and daily necessities (+8.0%) [17][22] - In the optional consumption category, jewelry (+21.8%) and communication equipment (+33.0%) showed rapid growth in retail sales [22][32] - The home appliance sector experienced notable growth due to promotional events, with furniture sales increasing by 25.6% and home appliances by 53.0% year-on-year [34][35] Summary by Category Overall Data - Total retail sales in May were 41,326 billion yuan, with a year-on-year increase of 6.4%. Urban and rural retail sales were 36,057 billion yuan and 5,269 billion yuan, respectively, with year-on-year growth of 6.5% and 5.4% [5][6] Essential Consumption - Essential consumption categories showed robust growth: grain and oil food (+14.6%), tobacco and alcohol (+11.2%), and daily necessities (+8.0%) [17][22] Optional Consumption - In optional consumption, jewelry (+21.8%) and communication equipment (+33.0%) saw significant retail sales growth [22][32] Other Consumer Categories - Driven by the "618" promotion and national subsidies, retail sales in the home appliance category grew significantly, with furniture sales up 25.6% and home appliances up 53.0% year-on-year [34][35]

Investment Rating - The report assigns a "Buy" rating for Tangshan Port, indicating a stable and high dividend yield from its bulk cargo port services [5][7]. Core Views - Tangshan Port focuses on bulk cargo handling, primarily iron ore, coal, and steel, serving the industrial hinterland of Tangshan. The company has strategically divested from secondary businesses to enhance profitability and maintain a high dividend payout [6][9]. - The port benefits from a strong industrial base in Tangshan, particularly in the steel sector, which supports cargo throughput. The integration of Hebei's ports has improved operational efficiency and reduced competition, allowing Tangshan Port to capture additional coal volumes from the transitioning Qinhuangdao Port [6][82]. Summary by Sections 1. Overview of Tangshan Port - Tangshan Port, established in 1989, has become the second-largest port in terms of cargo throughput globally, focusing on bulk cargo services [14][15]. - The port's geographical advantages and proximity to major industrial areas enhance its operational capabilities [19][20]. 2. Industrial Support for Cargo Growth - The economic growth in Tangshan, with a GDP of 1,000.39 billion yuan in 2024, supports stable demand for steel and coal, which are critical for the port's operations [52][55]. - The steel industry in Tangshan is robust, with significant production capacity, directly benefiting the port's throughput [60][67]. 3. Benefits from Port Integration - The integration of Hebei's ports has led to improved operational efficiency and a more favorable competitive environment for Tangshan Port [82][85]. - The restructuring allows Tangshan Port to take advantage of the shifting cargo volumes from Qinhuangdao Port, which is transitioning to a tourism-focused operation [91]. 4. Profit Forecast and Valuation - The report forecasts Tangshan Port's net profit for 2025-2027 to be 20.15 billion, 20.74 billion, and 21.13 billion yuan, with corresponding growth rates of 1.84%, 2.92%, and 1.89% [5][7]. - The current price-to-earnings ratios are projected to be 11.97, 11.63, and 11.41 for the same period, reflecting a stable valuation [6][7].

Investment Rating - The investment rating for the real estate industry is "Positive" (maintained) [4] Core Viewpoints - The report emphasizes the need for a new development model in the real estate sector to promote stable, healthy, and high-quality growth. It highlights the importance of long-term planning and systematic policy support across various areas such as planning, land, finance, and fiscal measures [51][52] - The report notes that the central government has consistently stressed the importance of stabilizing the real estate market since September 2024, with a focus on high-quality housing development [4][55] Market Performance - The Shanghai Composite Index fell by 0.2%, the Shenzhen Component Index by 0.6%, while the ChiNext Index rose by 0.2%. The real estate sector (Shenwan) declined by 1.8% during the week [4][7] - In terms of individual stocks, ST Zhongdi increased by 8.7%, while Hai Tai Development decreased by 18.8% [7] Data Tracking New Housing Transactions - In the week of June 7-13, 2025, 42 key cities recorded a total new housing transaction of 212 million square meters, a 14.4% increase from the previous week [14] - For June up to the week of June 13, total new housing transactions in these cities reached 362 million square meters, a 12.8% increase month-on-month but a 0.6% decrease year-on-year [18] Second-Hand Housing Transactions - In the week of June 7-13, 2025, 21 key cities recorded a total second-hand housing transaction of 216 million square meters, a 31.4% increase from the previous week [30] - For June up to the week of June 13, total second-hand housing transactions reached 371 million square meters, a 28.1% increase month-on-month and a 7.3% increase year-on-year [34] Industry News - The State Council emphasized the construction of a new real estate development model, which is crucial for the stable and healthy development of the market. It called for a systematic approach to stabilize expectations and activate demand [51][52] - Various cities have implemented measures such as the cancellation of purchase restrictions in Guangzhou and the promotion of housing "trade-in" policies in Jiangsu [51][52] Company Announcements - In May 2025, several companies reported their sales figures: Longfor Group at 6.47 billion yuan (down 26% year-on-year), China Jinmao at 12.44 billion yuan (up 72% year-on-year), and China Resources Land at 18.35 billion yuan (down 11% year-on-year) [55]

Fixed Income - Economic recovery shows divergence, with the bond market expected to fluctuate within a narrow range. Current economic operation is in a neutral zone, with marginal changes primarily in consumption compared to last year. The bond market is unlikely to see a trend-driven bull or bear market in the short term. [2][9] - The yield on 10-year government bonds is projected to remain in the range of 1.6%-1.8% by the end of the year, with a focus on credit bonds yielding over 2% as a balanced investment strategy. [9] Electronics - Broadcom's FY25Q2 performance was strong, with revenue reaching $15.005 billion, a 20% year-on-year increase, driven mainly by AI semiconductor business, which saw a 46% increase in revenue. [10][11] - The demand for AI networks is expected to grow, with significant investments from large cloud service providers. The introduction of the Tomahawk6 switch chip, which offers double the switching capacity of existing products, is a key development. [11][12] Public Utilities and Environmental Protection - The municipal environmental sector is entering a phase of stable cash flow and increased dividend rates, with waste-to-energy and water companies showing strong profitability due to regulated return models. [14][15] - The decline in Hong Kong interest rates is expected to accelerate capital inflow into the stock market, enhancing the valuation of low-correlation, long-duration assets represented by Hong Kong dividend stocks. [16][17] Transportation - The express delivery sector is experiencing robust growth, with a forecasted 16% year-on-year increase in express delivery volume for May. The collaboration with e-commerce is expected to further boost consumption. [20][21] - Geopolitical tensions in the Middle East are likely to lead to increased oil prices and shipping rates, with a focus on VLCC shipping companies benefiting from this situation. [22][31] Real Estate and Construction - The government has signaled stronger support for the real estate market, emphasizing the construction of quality housing and urban renewal projects, which is expected to drive demand in the construction sector. [32][33] - Key players in urban renewal and affordable housing construction, such as China State Construction, are recommended for investment due to their resource synergy and comprehensive capabilities. [33][35]

Report Industry Investment Rating - Not provided in the report Core Viewpoints of the Report - The current economic operation is in a neutral range, and the negative economic cycle of the past two years has ended. The economy is expected to stabilize, and the marginal change may lie in consumption. The bond market is unlikely to experience a trend - based bear or bull market in the short term [1]. - Interest - rate bonds may have a phased narrow - range oscillation. It is recommended to focus on credit bonds with a yield of over 2%. The company is bearish on ultra - long - term interest - rate bonds, and the 10Y Treasury bond may operate in a narrow range of 1.6% - 1.8% by the end of the year [1]. - The significant reduction in long - term time deposit rates of major banks in May 2025 is beneficial to credit bonds. The decline in deposit rates will promote the growth of wealth management scale, and the credit spread may be further compressed. It is recommended to focus on 5Y credit bonds with a yield of over 2% [1]. Summary According to the Directory 1. Macro News - As of the end of May 2025, the balance of domestic and foreign currency loans was 270.2 trillion yuan, a year - on - year increase of 6.7%, and the balance of RMB loans was 266.32 trillion yuan, a year - on - year increase of 7.1%. The cumulative increase in social financing scale in the first five months was 18.63 trillion yuan, 3.83 trillion yuan more than the same period last year. The social financing scale stock was 426.16 trillion yuan, a year - on - year increase of 8.7% [10]. - In May 2025, CPI decreased by 0.2% month - on - month and 0.1% year - on - year, while core CPI increased by 0.6% year - on - year. PPI decreased by 0.4% month - on - month and 3.3% year - on - year [11]. - In the first five months of 2025, the total value of goods trade imports and exports was 17.94 trillion yuan, a year - on - year increase of 2.5%. Exports were 10.67 trillion yuan, a year - on - year increase of 7.2%, and imports were 7.27 trillion yuan, a year - on - year decrease of 3.8% [17]. 2. Medium - term High - frequency Data 2.1 Consumption: Continued Recovery - As of June 8, the daily average retail and wholesale volume of passenger cars increased by 19.0% and 10.4% year - on - year respectively. As of June 13, the total national movie box office revenue in the past 7 days decreased by 48.7% year - on - year. As of May 30, the total retail volume of three major household appliances increased by 7.7% year - on - year, while the total retail sales decreased by 3.8% year - on - year [19][24]. 2.2 Transportation: Temporary Tariff Relief Releases Short - term Foreign Trade Dividends - As of June 8, the container throughput of ports increased by 0.1% year - on - year. As of June 13, the CCFI composite index decreased by 28.3% year - on - year, and the average Baltic Dry Freight Index increased by 1.0% year - on - year. As of June 11, the average migration scale index decreased by 15.2% year - on - year. As of June 8, the number of civil aviation flights increased by 4.4% year - on - year, and the average subway passenger volume in first - tier cities increased by 2.3% year - on - year. The postal express pick - up and delivery volume increased by 16.2% and 11.1% year - on - year respectively. The railway freight volume decreased by 0.1% year - on - year, and the highway truck traffic volume decreased by 1.8% year - on - year [28][30][40]. 2.3 Operating Rates: Differentiation in the Petrochemical Industry Chain - As of June 11, the blast furnace operating rate of major steel enterprises increased by 2.3pct year - on - year. As of June 12, the average asphalt operating rate decreased by 3.0pct year - on - year, the soda ash operating rate decreased by 3.2pct year - on - year, and the PVC operating rate increased by 0.6pct year - on - year. As of June 13, the average PX operating rate was 84.3%, and the average PTA operating rate was 80.5% [50][53][55]. 2.4 Real Estate: Continued Pressure - As of June 13, the total commercial housing transaction area of 30 large and medium - sized cities in the past 7 days increased by 17.4% year - on - year, and the number of transactions increased by 21.5% year - on - year. As of June 6, the second - hand housing transaction area of 9 sample cities decreased by 15.8% year - on - year. As of June 8, the listing volume index and listing price index of second - hand housing in national cities decreased by 65.5% and 7.6% year - on - year respectively. The number of land transactions in 100 large and medium - sized cities decreased by 4.2% year - on - year, the planned construction area decreased by 50.6% year - on - year, the floor price decreased by 6.8% year - on - year, and the land premium rate decreased by 0.9pct year - on - year [62][64][68]. 2.5 Prices: Commodity Prices Under Pressure - As of June 13, the average wholesale price of pork decreased by 17.0% year - on - year, the average wholesale price of vegetables decreased by 0.9% year - on - year, and the average wholesale price of 6 key fruits increased by 5.3% year - on - year. The CRB spot composite index increased by 2.7% year - on - year, and the commodity price BPI decreased by 10.9% year - on - year. The average price of thermal coal at northern ports decreased by 30.3% year - on - year, the average WTI crude oil spot price decreased by 14.7% year - on - year, the average spot price of rebar decreased by 12.8% year - on - year, the average spot price of iron ore decreased by 12.2% year - on - year, and the average spot price of glass decreased by 31.4% year - on - year [70][73][74]. 3. Bond and Foreign Exchange Markets: Slight Differentiation at the Short End, and the Bond Yield Curve Flattening - On June 13, overnight Shibor, R001, R007, DR001, IBO001, and IBO007 showed different trends compared to June 9. Most Treasury bond yields declined, and the yields of national development bonds, local government bonds, and inter - bank certificates of deposit also changed. The central parity rate and spot exchange rate of the US dollar against the RMB decreased compared to June 6 [79][87][96]. 4. Institutional Behavior: Interest - Rate Bond Funds Increasing Duration, Credit - Bond Funds with Stable Duration - As of June 15, the net - breaking rate of public wealth management products of wealth management companies decreased by 1.05pct compared to the beginning of the year, and the current net - breaking rate percentile within the year was below 10%. Since the beginning of 2025, the duration of medium - and long - term pure interest - rate bond funds has first decreased and then increased, while that of medium - and long - term pure credit - bond funds has shown a slight oscillation [100][101][104]. 5. Investment Recommendations - Interest - rate bonds may have a narrow - range oscillation. It is recommended to focus on credit bonds with a yield of over 2%. Be bearish on ultra - long - term interest - rate bonds. When the 10Y Treasury bond yield reaches the upper limit of the range, increase the duration; when it approaches the lower limit, reduce the duration. Focus on 5Y credit bonds with a yield of over 2%. Also, pay more attention to Hong Kong financial stocks, especially Hong Kong bank stocks with large valuation repair space [1][108].

Group 1: Real Estate Development - The State Council emphasizes the importance of constructing a new model for real estate development to promote stable, healthy, and high-quality market growth, focusing on long-term strategies and systematic institutional frameworks [2][7] - The new model includes increasing the proportion of existing home sales, which rose from 10% in 2020 to 27% in 2024, indicating a gradual establishment of long-term mechanisms [7][9] - The government aims to support the construction of high-quality housing through urban renewal initiatives, with policies in planning, land, finance, and other areas to accelerate development [8][10] Group 2: Smart Home Industry - The smart home industry is transitioning to a 3.0 phase, focusing on overall system intelligence enhancement, with AI technology penetrating various products [11][12] - The Chinese smart home market is expected to exceed 1 trillion yuan by 2025, with significant growth in AI technology integration, particularly in smart appliances [11][12] - A total of 12 companies in the North Exchange are involved in the smart home sector, indicating a growing industry landscape [11] Group 3: Pesticide Industry - The global pesticide market has seen a compound annual growth rate of 3.3% from 2017 to 2023, with China being the largest exporter, reaching an export value of 8.1 billion USD in 2023 [17][18] - The domestic pesticide market is expected to recover, with a projected increase in both quantity and value of exports in 2024, driven by strong global demand for crop protection products [17][18] - Ying Tai Biological, a leading company in the pesticide sector, reported a revenue of 1.387 billion yuan in Q1 2025, reflecting a year-on-year growth of 0.96% [17][18] Group 4: Media and Entertainment - The media industry is experiencing strong performance from new product launches, particularly in gaming and film, which are expected to drive company valuations and market dynamics [29][30] - Key gaming titles are set for release, with significant testing and launch events scheduled, indicating a robust pipeline for the gaming sector [30][31] - The summer film season is anticipated to boost box office performance, with over 60 films already scheduled for release, suggesting a positive outlook for the cinema industry [31][32]

Investment Rating - The investment rating for the construction decoration industry is "Positive" (maintained) [4] Core Viewpoints - The report highlights that the real estate market is showing clear signs of stabilization, with policies aimed at boosting demand for housing and urban renewal projects expected to drive construction demand [5][10] - The report suggests focusing on leading state-owned enterprises with resource synergy and comprehensive capabilities in urban renewal and affordable housing construction, such as China State Construction, as well as quality stocks in the decoration sector that have completed asset clearing and are expected to see a rebound in profitability, like Yasha Co., Jianghe Group, and Jintanglong [5][10] Summary by Sections Market Performance - The report notes that the construction decoration index fell by 1.41% during the week, while the Shanghai Composite Index decreased by 0.25% and the Shenzhen Component Index decreased by 0.60% [7][22] - The report identifies 31 stocks in the construction sector that rose, with the top five performers being ST Baili (+22.89%), Libote (+19.08%), Aoya Co. (+14.55%), Zhite New Materials (+12.11%), and Tongguan Mining Construction (+12.07%) [7][22] Policy and Investment Trends - The report emphasizes that the State Council's meeting on June 13, 2025, called for greater efforts to stabilize the real estate market and promote the construction of "good houses" as part of urban renewal, with comprehensive support in planning, land, finance, and other areas [5][10] - Local governments, such as Guangzhou, are responding with measures to stimulate housing demand, including the cancellation of purchase restrictions and lowering down payment ratios and interest rates [5][10] Recommendations - The report recommends three main lines for structural investment opportunities in the construction sector: 1) Focus on regional construction projects, particularly in the central and western regions and along the Belt and Road Initiative [7] 2) Invest in state-owned enterprises with stable dividends and valuation recovery potential, such as China State Construction and China Railway [7] 3) Identify companies actively pursuing transformation and upgrades in areas like smart manufacturing and digitalization [7][10] Company Dynamics - The report provides insights into recent contract wins and project announcements from various companies, including China Power Construction winning a major offshore wind power project worth approximately 10.77 billion yuan [18] - It also highlights strategic partnerships and acquisitions, such as Zhite New Materials signing a strategic cooperation agreement valued at approximately 302 million yuan [19] Infrastructure Data Tracking - The report tracks the issuance of special bonds, noting that 471.42 billion yuan in special bonds were issued in the week, with a cumulative issuance of 35,919.76 billion yuan, reflecting a year-on-year increase of 78.68% [14] Overall Market Outlook - The report concludes that the construction sector is entering a period of value reassessment, with structural opportunities emerging amid ongoing policy support and the acceleration of project implementation [13][10]

Investment Rating - The report maintains a "Positive" investment rating for the municipal environmental protection sector [4]. Core Viewpoints - The industry is entering a period of stock operation with significant capital expenditure reduction, leading to positive free cash flow for companies. By the end of 2023, the national urban domestic waste harmless treatment rate reached 99.98%, and the water supply coverage rates for cities, counties, and rural areas were 99.4%, 98.3%, and 87.5% respectively, indicating a balanced urban water supply capacity [5][4]. - The decline in Hong Kong interest rates is expected to lead to a revaluation of dividend assets, particularly in public utilities such as electricity and municipal environmental protection [5][4]. - The report suggests focusing on public utility assets based on cash flow improvement expectations, dividend performance, and dividend yield as screening criteria, recommending companies such as China Everbright International, Tianjin Chuangye Environmental Protection, and others [5][4]. Summary by Sections Industry Performance - The report highlights the stable profitability of waste incineration power generation and water companies, which follow a permitted return model. The average reasonable profit level for water supply companies has been set at a net asset return rate of 8-10% since 1998 [5][4]. Cash Flow and Dividend Insights - Companies in the waste incineration and water sectors are expected to see improved cash flow as they transition to positive free cash flow. The report notes that historical issues with high accounts receivable are being addressed, with local government debt resolution expected to accelerate accounts receivable collection in 2024 [5][4]. Recommendations - The report recommends several companies based on their dividend rates and expected yields for 2025, including: - China Everbright International: projected dividend yield of 5.9% - Green Power Environmental: projected H-share dividend yield of 8.4% - Beikong Water Group: projected dividend yield of 6.8% - Guangdong Investment: projected dividend yield of 6.4% - Tianjin Chuangye Environmental Protection: projected H-share dividend yield of 5.6% [5][4].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [5]. Core Views - The company, Chuangyuan Xinke, is recognized as a national-level specialized and innovative "little giant" in the field of radio frequency communication testing instruments, with a 27% year-on-year revenue increase in Q1 2025. It focuses on wireless communication testing, vehicle networking, and satellite internet testing, holding numerous patents and core technologies [5][6]. - The company is expected to benefit from emerging opportunities in vehicle networking and low-altitude economies, driven by advancements in 5G/6G technology and government initiatives [5][7]. - The company has a strong R&D focus, with 44.63% of its revenue allocated to R&D in 2024, and has made significant technological breakthroughs in key areas [6][12]. Summary by Sections Market Performance - The closing price as of June 13, 2025, is 22.39 yuan, with a market capitalization of 3,198.20 million yuan and a circulating market value of 2,360.77 million yuan [3]. Financial Forecast and Valuation - Revenue projections for 2025 are estimated at 269 million yuan, with a year-on-year growth rate of 15.51%. The net profit attributable to the parent company is forecasted to be 19 million yuan, reflecting a growth rate of 54.97% [11]. - The report anticipates a gradual improvement in profitability, with EPS expected to rise from 0.09 yuan in 2024 to 0.34 yuan by 2027 [11][12]. Industry Outlook - The global electronic measurement instrument market is projected to reach 20 billion USD by 2028, driven by advancements in automation, smart laboratories, and the rapid growth of vertical industries [12]. - In China, the electronic measurement instrument market has grown from 30.9 billion yuan in 2019 to 37.8 billion yuan in 2023, with a forecasted growth rate of 5% to 7% from 2024 to 2030 [12].