Investment Rating - Investment Rating: Positive (Maintained) [4] Core Views - The report highlights that the price of praseodymium and neodymium oxide has entered an upward channel, with a recent increase of 10.97% to 531,000 CNY/ton. Meanwhile, dysprosium oxide has decreased by 2.38% to 1,640,000 CNY/ton, and terbium oxide has dropped by 0.97% to 7,110,000 CNY/ton. The positive sentiment is driven by supply constraints and strong demand for end-use magnetic materials [3][4][12]. - The molybdenum market is experiencing a price increase, with molybdenum concentrate prices rising by 7.53% to 4,285 CNY/ton. However, downstream demand is weak, leading to expectations of price fluctuations [4][24]. - Tungsten prices have reached a historical high due to supply reductions and price adjustments in long-term contracts, with black tungsten concentrate prices increasing by 7.82% to 193,000 CNY/ton [4][34]. - The tin market is characterized by a supply-demand imbalance, with SHFE tin prices rising by 0.15% to 265,000 CNY/ton, while LME tin prices increased by 0.08% to 33,185 USD/ton [4][40]. - Antimony prices are experiencing fluctuations, with antimony ingot prices decreasing by 1.32% to 187,500 CNY/ton, attributed to low smelting output and tight raw material supply [4][56]. - The report emphasizes the accelerating commercialization of controlled nuclear fusion materials, with significant investments from state-owned enterprises, indicating a promising outlook for upstream materials [6]. Summary by Sections Rare Earths - Recent price movements show praseodymium and neodymium oxide prices increased by 10.97% to 531,000 CNY/ton, while dysprosium and terbium prices decreased [12][4]. Molybdenum - Molybdenum concentrate prices rose by 7.53% to 4,285 CNY/ton, with expectations of price stabilization due to weak downstream demand [24][4]. Tungsten - Black tungsten concentrate prices increased by 7.82% to 193,000 CNY/ton, driven by supply constraints and price adjustments in long-term contracts [34][4]. Tin - SHFE tin prices rose by 0.15% to 265,000 CNY/ton, while LME tin prices increased by 0.08% to 33,185 USD/ton, reflecting a supply-demand imbalance [40][4]. Antimony - Antimony ingot prices decreased by 1.32% to 187,500 CNY/ton, influenced by low smelting output and tight raw material supply [56][4]. Nuclear Fusion Materials - The commercialization of controlled nuclear fusion is accelerating, with significant investments indicating a positive outlook for upstream materials [6].

Investment Rating - The investment rating for the non-ferrous metals industry is "Positive" (maintained) [4] Core Views - The report highlights the impact of the recent 232 tariffs on copper, which do not include refined copper, leading to a significant drop in US copper prices. The week saw a decline in copper prices with LME copper down 2.51%, SHFE copper down 1.07%, and US copper down 23.45% [5][10]. - The report emphasizes the recovery in downstream copper demand, with the copper rod operating rate increasing by 2.36 percentage points to 71.73% [5]. - The report suggests monitoring the supply disruptions in Chile and the potential impact of the Federal Reserve's interest rate cuts in September [5]. Summary by Sections 1. Industry Overview - Important macroeconomic information includes lower-than-expected job vacancies in the US and mixed employment data, indicating a cautious economic outlook [9]. - The non-ferrous metals sector underperformed, with the Shenwan non-ferrous index down 4.62%, lagging behind the Shanghai Composite Index by 3.68 percentage points [12]. 2. Industrial Metals Copper - LME copper prices fell by 2.51%, while SHFE copper prices decreased by 1.07%. LME copper inventory increased by 10.33% [26]. - The report notes a copper smelting profit of -2408 CNY/ton, indicating a narrowing loss [26]. Aluminum - LME aluminum prices dropped by 4.12%, and SHFE aluminum prices fell by 1.33%. The report indicates a decrease in aluminum smelting profit to 4116 CNY/ton, down 7.71% [37]. Lead and Zinc - LME lead prices decreased by 3.30%, and SHFE lead prices fell by 1.48%. LME zinc prices dropped by 4.59%, while SHFE zinc prices decreased by 2.19% [52]. - The report highlights a smelting profit of 346 CNY/ton for zinc, with mining profits down 6.47% to 6884 CNY/ton [52]. Tin and Nickel - LME tin prices fell by 5.10%, and SHFE tin prices decreased by 2.47%. LME nickel prices dropped by 4.08%, while SHFE nickel prices fell by 2.83% [66]. 3. Energy Metals Lithium - Lithium carbonate prices decreased by 2.13% to 71350 CNY/ton, while lithium hydroxide prices increased by 4.04% to 65670 CNY/ton [83]. - The report indicates a smelting profit of 862 CNY/ton for lithium from spodumene, while the profit from lithium from lepidolite was -4608 CNY/ton [83]. Cobalt - Domestic cobalt prices surged by 11.29% to 276000 CNY/ton, with significant increases in cobalt smelting profits [96]. 4. Market Performance - The report provides a detailed analysis of the performance of various non-ferrous metal stocks, highlighting the top gainers and losers in the market [12]. 5. Valuation Changes - The report notes that the PE_TTM for the non-ferrous sector is 20.54, with a decrease of 0.88, while the PB_LF is 2.37, down 0.11 [21].

Report Industry Investment Rating - The industry investment rating for August is "Bullish", suggesting that going long in the bond market is the path of least resistance [3][20]. Core Viewpoints - The tax policy adjustment on August 8, 2025, will resume the collection of VAT on the interest income of newly - issued government bonds and financial bonds, which will impact bond pricing and investment strategies [2][6]. - The bond market is recommended to go long in August, with the 10Y Treasury yield expected to return to around 1.65% and the 5Y state - owned and joint - stock secondary bonds to fall below 1.9% [3][20]. Summary by Related Catalogs Tax Policy Changes - Starting from August 8, 2025, VAT will be resumed on the interest income of newly - issued government bonds and financial bonds, with a clear demarcation between old and new bonds, and no changes to income tax and bond transfer income tax policies [2][6]. - Before the new tax policy, general financial institutions paid 6% VAT on interest income during financial product holding, while asset management products and public funds paid 3% using the simplified tax calculation method. Interest income from government bonds, local government bonds, and financial inter - bank transactions was VAT - exempt [2][8]. - After the new policy, public funds will pay a total of 3.26% VAT and surcharges on the interest income of newly - issued government bonds and financial bonds after August 8, 2025, while the trading spread income remains VAT - exempt. Asset management products like bank wealth management need to pay 3.26% VAT and surcharges on both interest and trading spread income of newly - issued bonds [2][9]. - Commercial banks' self - operation will pay a total of 6.34% VAT and surcharges on the interest income of newly - issued government bonds and financial bonds after August 8, 2025, while the interest income of bonds issued before remains VAT - exempt until maturity [10]. - The interest income from inter - bank certificates of deposit and inter - bank deposits will continue to be VAT - exempt [2][12]. - The interest income from discounted government bonds and policy - based financial bonds issued after August 8 may be subject to VAT [11]. Impact on Bond Pricing - The new tax policy may cause a yield spread of 5 - 10BP between government bonds and financial bonds issued before and after August 8, mainly to compensate for the VAT difference [2][14][15]. - The new tax policy will make the yields of newly - issued corporate bonds and financial bonds of the same term and rating closer, but there are still capital occupation differences for bank self - operation investors [3][19][20]. Impact on Commercial Banks - As of the end of March 2025, the balance of financial bonds issued by commercial banks was 10.42 trillion yuan, accounting for 2.9% of total liabilities. The new tax policy has a small impact on commercial banks' liability costs and short - term performance [2][13]. Investment Recommendations - In August, the bond market is recommended to go long, with a preference for long - duration sinking urban investment and capital bonds, urban investment dim - sum bonds, and US dollar bonds. Perpetual bonds of Minsheng, Bohai, and Hengfeng Banks are strongly recommended, and attention should be paid to the capital bond opportunities of Tianjin Bank, Beibu Gulf Bank, and China Property Insurance [3][20].

Investment Rating - The report suggests to "pay attention" to the company [48] Core Viewpoints - Zhigao Machinery is recognized as a national-level "little giant" in air compressors and rock drilling equipment, with a projected compound annual growth rate (CAGR) of 11% for net profit attributable to shareholders from 2020 to 2024 [11] - The company plans to raise approximately 400 million yuan through an initial public offering to expand its production capacity for intelligent drilling rigs and enhance its research and development capabilities [9][10] - The company has a strong market position, ranking among the top three in the domestic market for mobile air compressors and matching drilling rigs from 2021 to 2023 [35] Summary by Sections Initial Issuance - The initial issuance consists of 21.48 million shares at a price of 17.41 yuan per share, with an earnings per share (EPS) ratio of 14.24X [2][5] - The total number of shares after issuance will be 85.93 million, with the issuance accounting for 25% of the total shares before the exercise of the over-allotment option [5] Business Overview - Zhigao Machinery specializes in the research, development, production, and sales of air compressors and rock drilling equipment, with over 400 product models [11][12] - The company has achieved revenues of 888 million yuan in 2024, with a net profit of 105.05 million yuan, reflecting a year-on-year growth of 5.72% and 1.49% respectively [27][29] Market Position - The market size for rock drilling machinery in China reached 492.2 billion yuan in 2023, with a CAGR of approximately 3.81% from 2018 to 2023 [40] - The market for screw air compressors grew from 12.34 billion yuan in 2018 to 15.68 billion yuan in 2023, with a CAGR of about 4.9% [39] Financial Performance - The company’s net profit has increased from 68.65 million yuan in 2020 to 105.05 million yuan in 2024, with a CAGR of 11.22% [27] - The gross profit margin for drilling rigs was 34.04% in 2024, while for screw compressors it was 13.98% [19][27] Competitive Landscape - Key comparable companies include Shanhai Intelligent, Kaishan Shares, Xinlei Shares, and Dongya Machinery, with the median PE ratio of comparable companies at 31.3X [49][45] - Zhigao Machinery's products have received recognition both domestically and in international markets, including countries along the Belt and Road Initiative [48]

1. Report Industry Investment Rating - The report maintains an overall optimistic view of the North Exchange market for the whole year, believing that the positioning and development direction of the "specialized, refined, characteristic, and innovative" North Exchange market are highly consistent with the national policy orientation of the "self - controllable" and innovation - driven development strategy [24]. 2. Core Viewpoints of the Report - In July 2025, the North - 50 Index and the North Specialized, Refined, Characteristic, and Innovative Index underperformed major indices such as the ChiNext and STAR Market. However, in the first seven months of 2025, the North - 50 Index rose 37%, outperforming other major indices. The market was weak in July, but some sub - sectors like building decoration and pharmaceutical biology performed well. The market has been in a range - bound consolidation for over two months, and with continuous progress in "high - quality" expansion, code switching of existing stocks, and the issuance of specialized, refined, characteristic, and innovative index funds, the market should gradually turn optimistic. The market may return to the performance - driven mainline, and attention should be paid to high - quality companies with continuous high - growth performance [3][6][24]. 3. Summary by Relevant Catalogs 3.1 Week - view - In July 2025, the North - 50 Index fell 1.68%, and the North Specialized, Refined, Characteristic, and Innovative Index fell 2.70%, underperforming major indices. In the first seven months of 2025, the North - 50 Index rose 37%, far outperforming other major indices, and indices such as the STAR - 200 and CSI 2000 also rose over 20%. In July, sectors such as building decoration and pharmaceutical biology in the North Exchange market had relatively high increases. Only 16 companies had a monthly increase of over 20%, and 6 companies including Hengli Drilling Tools had an increase of over 50%. Compared with June 2025, trading volume, turnover, and turnover rate in July all declined. As of July 31, 2025, the overall price - to - earnings ratio (TTM, excluding negatives) of the North Exchange A - share index reached 51 times, 134% of the ChiNext index and 84% of the STAR Market index [3][6][12]. 3.2 Market Performance - This week, the overall price - to - earnings ratios of the ChiNext, STAR Market, and North Exchange A - shares declined. The North Exchange A - shares' overall PE dropped from 52.17X to 50.92X. In terms of liquidity, the daily average trading volume of North Exchange A - shares this week was 257 billion yuan, a 17% decrease from last week. The daily average turnover rate of North Exchange A - shares dropped to 5.94%, a decrease of 1.1 percentage points from last week. The North - 50 Index fell 2.70% this week, and major indices such as the CSI 300, STAR - 50, and ChiNext also declined [26][27]. 3.3 New Stock Listings - From January 1, 2024, to August 1, 2025, 30 new companies were listed on the North Exchange. From July 28 to August 1, 2025, 1 new company, Dingjia Precision, was listed. From January 1, 2023, to August 1, 2025, the average issue price - to - earnings ratio of 107 listed companies was 16.20X, and the median was 15.86X. The average first - day increase was 111%, and the median was 51% [32][35]. 3.4 New Stock IPOs - From July 28 to August 1, 2025, 2 companies, Aomisen and Sanxie Electric, updated their review status to registration; 1 company, Yangtze River Energy Technology, updated its status to passing the listing committee meeting; 22 companies updated their status to being under inquiry. Next week, the North Exchange will review the IPO applications of 2 companies, Zhongcheng Consulting and Nante Technology [41].

Investment Rating - Investment rating: Positive (maintained) [4] Core Viewpoints - The approval of coal power and pumped storage remains at a high level, indicating a sustained demand for traditional power generation equipment [5][7] - In July 2025, China approved 5.3GW of new coal power installations, lower than the 12.7GW in 2023 and 6.7GW in 2024 for the same period. The cumulative approved capacity from January to July reached 35.9GW, which is lower than 53GW in 2023 but roughly equal to 36GW in 2024 [11][15] - The peak load issue in China is becoming more pronounced due to the faster growth of electricity consumption in the tertiary sector and among urban and rural residents compared to the secondary sector. As of July 16, 2025, the highest electricity load in China exceeded 1.5 billion kilowatts, an increase of 0.55 million kilowatts compared to 2024, with further increases likely [15][17] Summary by Sections Section 1: Coal Power and Pumped Storage - The approval intensity for coal power remains unexpectedly high, with a total of 90.5GW, 83GW, and 78GW approved from 2022 to 2024, respectively. The current approval strength in 2025 has not declined, supporting previous assessments that the sustainability of high-intensity coal power approvals may exceed market expectations [15][21] - The effective capacity of coal power units is determined by the nameplate capacity minus auxiliary power consumption, while the effective capacity of wind and solar power is significantly lower, at 7% and 1% of their installed capacity, respectively [18][19] - For 2030, it is estimated that a net increase of 340GW of coal power will be needed to ensure system reserve rates do not decline, given the expected peak load increase to 1.94 billion kilowatts [18][19] Section 2: Pumped Storage - From January to July 2025, China approved 18.9GW of pumped storage, lower than 26.6GW in 2023 but higher than 14.3GW in 2022 and 16GW in 2024, indicating a sustained high approval intensity [6][19] - The cumulative approved capacity for pumped storage from 2022 to the first half of 2025 reached 189GW, with an estimated total order value of approximately 150 billion yuan based on a value of 800 million yuan per GW for hydraulic turbines [19][21] - Key companies in the pumped storage sector include Harbin Electric and Dongfang Electric, with Harbin Electric's new water power orders in 2024 reaching 9.65 billion yuan, a year-on-year increase of 64% [19][21]

Investment Rating - The investment rating for the company is "Buy" (首次) [5] Core Views - The company is positioned as a leading domestic probiotic brand, benefiting from both category penetration and domestic substitution opportunities [5][7] - The Chinese probiotic market is expected to grow significantly, with a projected market size of approximately 138 billion RMB in 2024, driven by health consumption trends and expanding application scenarios [7] - The company has successfully broken the monopoly of high-end strains held by foreign companies and is expanding its downstream coverage in sectors such as food and beverages, health products, etc. [7] - The recent FDA GRAS certification for the company's star strain opens up new market opportunities, particularly in the weight loss sector [7] Financial Summary - Revenue projections for the company are as follows: - 2023: 299 million RMB - 2024: 303 million RMB - 2025E: 439 million RMB - 2026E: 551 million RMB - 2027E: 691 million RMB - The expected growth rates for revenue are 1.19% in 2024, 44.85% in 2025, 25.65% in 2026, and 25.36% in 2027 [6][8] - The projected net profit for the company is as follows: - 2023: 93 million RMB - 2024: 94 million RMB - 2025E: 128 million RMB - 2026E: 168 million RMB - 2027E: 210 million RMB - The expected growth rates for net profit are 0.94% in 2024, 35.90% in 2025, 31.35% in 2026, and 24.48% in 2027 [6][8] Valuation Metrics - The projected P/E ratios for the company are as follows: - 2025E: 34.93 - 2026E: 26.60 - 2027E: 21.37 [6][8] - The average P/E of comparable companies is estimated at 35X for 2025, indicating a favorable growth outlook for the company [7]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook based on its growth potential and dividend returns [5][7]. Core Insights - The company is focusing on expanding its overseas business and enhancing its dividend policy, which reflects its growth potential and commitment to shareholder returns [5][9]. - The company has a strong market position in the high-end curtain wall and interior decoration sectors, with a robust cash flow supporting high dividend payouts [6][9]. - The report highlights the company's strategic shift towards productization and international expansion, which is expected to drive future growth [9][52]. Summary by Sections Financial Performance - The company is projected to achieve revenues of RMB 23.79 billion in 2025, with a year-on-year growth rate of 6.19% [5][56]. - The net profit attributable to shareholders is expected to reach RMB 683 million in 2025, reflecting a growth rate of 7.06% [5][56]. - The company maintains a high dividend payout ratio, with an expected dividend yield of 7.00% for 2024, positioning it favorably within the industry [6][37]. Market Position - The company has a market share of 1.63% in the decoration industry as of 2024, indicating a steady increase over the past two years [9][44]. - The company has secured new orders totaling RMB 270.49 billion in 2024, marking a 4.68% increase year-on-year, with significant contributions from both domestic and overseas markets [9][48]. Strategic Initiatives - The company is actively pursuing a productization strategy, focusing on customized sales of atypical photovoltaic components and standardized curtain wall products for international markets [9][52]. - The overseas market has become a significant growth driver, with new orders from international markets increasing by 57% in 2024, accounting for 28% of total orders [9][48]. Cash Flow and Profitability - The company reported a net cash flow from operating activities of RMB 16.26 billion in 2024, reflecting a significant increase from the previous year [6][33]. - The overall gross margin for 2024 is projected to be 16.04%, with expectations for gradual improvement in profitability due to strategic initiatives [55][56].

Investment Rating - The investment rating for the company is "Accumulate" (首次) [5] Core Views - The company is a leading player in the functional beverage industry, showing rapid growth in its fundamentals. In the first half of 2025, the company achieved revenue of 10.737 billion yuan, a year-on-year increase of 36.37%, and a net profit attributable to shareholders of 2.375 billion yuan, up 37.22% year-on-year [6] - The product structure is diversifying, with revenue from energy drinks, electrolyte drinks, and other beverages in the first half of 2025 reaching 8.361 billion yuan, 1.493 billion yuan, and 877 million yuan respectively, with year-on-year growth rates of 21.91%, 213.71%, and 66.24% [6] - The company is expanding its energy drink business and the second growth curve "Bushi La" is accelerating. The energy drink segment achieved revenue of 4.46 billion yuan in Q2 2025, a year-on-year increase of 18.77% [6] - The digital management system is a core driver of the company's continuous growth, with a comprehensive digital operation system covering the entire product lifecycle [6] - The company is expected to achieve net profits of 4.34 billion yuan, 5.65 billion yuan, and 7.024 billion yuan from 2025 to 2027, with corresponding year-on-year growth rates of 30.46%, 30.19%, and 24.32% [6] Financial Summary - As of July 31, 2025, the company's closing price is 281.30 yuan, with a total market capitalization of 146,279.66 million yuan and a total share capital of 520.01 million shares [3] - The company's asset-liability ratio is 61.86%, and the net asset per share is 16.80 yuan [3] - The projected revenue for 2025 is 20.886 billion yuan, with a year-on-year growth rate of 31.86% [7] - The projected earnings per share (EPS) for 2025 is 8.35 yuan, with a price-to-earnings (P/E) ratio of 33.70 [7]

Group 1: Utilities - Recommended stock: Su Yan Jing Shen (603299.SH) due to its stable cash flow from traditional salt and salt chemical businesses, and the potential growth from gas storage projects [3][4] - The company is expected to enter a performance release period with the first phase of the gas storage project nearing production [4] Group 2: Pharmaceuticals - Recommended stock: Ang Li Kang (002940.SZ) as the impact of centralized procurement is gradually clearing, and new products are expected to drive revenue growth [4] - The introduction of ALK-N001, a promising anti-tumor candidate, is anticipated to enhance the company's innovation capabilities [4] Group 3: Media - Recommended stock: Alibaba-W (09988.HK) with a focus on the stabilization of traditional e-commerce and the potential for growth in the instant retail sector [5] - Alibaba Cloud's leading position in the domestic market and continuous revenue growth are highlighted [5] Group 4: Electronics - Recommended stock: Zhong Wei Company (688012.SH) due to its robust order backlog and continuous revenue growth driven by new product launches [6] Group 5: Non-Banking Financials - Recommended stock: China Life (601628.SH) for its excellent asset-liability matching and early transformation in dividend insurance sales [8] - The company is expected to release significant solvency capacity following asset reclassification [8] Group 6: Automotive - Recommended stock: Li Auto (02015.HK) as the company is positioned to leverage its strategic foresight and adaptability in the evolving automotive landscape [9] - The i-series is expected to maintain strong sales momentum, with the first model projected to achieve over 5,000 monthly sales [9] Group 7: Transportation - Recommended stock: YTO Express (600233.SH) with a leading growth rate in business volume, benefiting from the "anti-involution" trend in the industry [10] Group 8: Agriculture - Recommended stock: De Kang Agriculture (02419.HK) as it is positioned at a pivotal point in the agricultural sector, leveraging technology and innovative models for growth [12] - The company's platform strategy is expected to extend into other agricultural segments, enhancing its market presence [12] Group 9: Metals and New Materials - Recommended stock: Luoyang Molybdenum (603993.SH) with a strong performance in the first quarter, exceeding expectations [14] Group 10: North Exchange - Recommended stock: Yuan Hang Precision (833914.BJ) as a leading player in the domestic nickel-based conductor materials sector, benefiting from stable demand across multiple industries [14][15]