Market Overview - The global amino acid market is projected to grow from $26.19 billion in 2021 to $49.42 billion by 2030, with a CAGR of 7.3%[2] - In 2023, China's amino acid market reached ¥43.635 billion, reflecting a year-on-year growth of 4.2%[2] - In 2020, China accounted for 32.23% of the global amino acid market, leading the world[2] Industry Dynamics - China's amino acid production is dominated by glutamic acid (42.06%) and lysine (36.80%) as of 2020[19] - The domestic amino acid industry has a complete supply chain, with applications in animal feed, food additives, pharmaceuticals, and fine chemicals[6] - The demand for high-value-added amino acids is increasing, with products like phenylalanine and isoleucine gaining traction[2] Company Spotlight - Wuxi Jinghai is recognized as a "little giant" in amino acid raw materials, focusing on branched-chain amino acids and other products[26] - In 2024, Wuxi Jinghai's revenue from amino acid raw materials is expected to constitute 57% of its total revenue[30] - The company has obtained a food production license, allowing it to expand its amino acid applications in the food sector[29] Market Performance - From July 21 to July 25, 2025, the median market cap change for North Exchange consumer service stocks was +1.68%, with 70% of companies experiencing an increase[37] - The median P/E ratio for North Exchange consumer service companies decreased from 58.6X to 57.1X during the same period[39] Investment and Expansion - Companies like Baixinglong are establishing subsidiaries in Italy and Hong Kong to enhance their international market presence[56] - The global raw material drug market is expected to reach $226.1 billion in 2024, growing at a rate of 5.3%[27]

Investment Rating - Investment rating: Positive (maintained) [4] Core Viewpoints - The report emphasizes that since September 2024, the central government's clear requirement has been to "stabilize the real estate market and stock market," indicating that the stabilization of the real estate market is crucial for boosting social expectations and facilitating domestic demand circulation [5][48] - The report suggests that high-quality residential properties may experience a development wave due to policy guidance and changes in supply-demand structure [5] Market Performance - The Shanghai Composite Index rose by 1.7%, the Shenzhen Component Index by 2.3%, the ChiNext Index by 2.8%, and the CSI 300 Index by 1.7%, while the real estate sector (Shenwan) increased by 4.1% [5][8] - The top five stocks in terms of price increase were *ST Nan Zhi (+15.4%), Hainan Airport (+14.5%), Zhangjiang Hi-Tech (+12.4%), Tibet City Investment (+11.8%), and Dayuecheng (+10.6%) [5] Data Tracking New Housing Transactions - For the week of July 19-25, new housing transactions in 42 key cities totaled 1.69 million square meters, a week-on-week increase of 19.4% [15] - In July (up to the week of July 25), new housing transactions in 42 key cities totaled 5.77 million square meters, a month-on-month decrease of 28.4% and a year-on-year decrease of 17.9% [19] Second-Hand Housing Transactions - For the week of July 19-25, second-hand housing transactions in 21 key cities totaled 1.95 million square meters, a week-on-week increase of 1.8% [31] - In July (up to the week of July 25), second-hand housing transactions in 21 key cities totaled 6.96 million square meters, a month-on-month decrease of 3.9% and a year-on-year decrease of 5.5% [35] Industry News - The State Council announced the "Housing Rental Regulations," marking a new phase of legalization and standardization in the housing rental market [48] - The People's Bank of China reported a year-on-year increase of 0.3% in real estate development loans, indicating a recovery in growth [48] - The Ministry of Finance reported that the revenue from state-owned land transfers in the first half of 2025 was 1.43 trillion yuan, a year-on-year decrease of 6.5% [48] Company Announcements - China Merchants Shekou issued the first phase of corporate bonds worth 800 million yuan with an interest rate of 1.70% for a term of 3 years [51] - China Jinmao issued the first phase of unsecured medium-term notes worth 2 billion yuan with an interest rate of 2.30% for a term of 3 years [51] - Binhai Group acquired the land use rights for a state-owned construction site in Hangzhou, covering an area of 36,496 square meters with a total price of 1.53 billion yuan [51]

Investment Rating - The investment rating for the company is "Buy" (maintained) due to expected performance release from the recent BD transaction [5]. Core Views - The report highlights that the company has entered into a collaboration agreement with GlaxoSmithKline (GSK) for the innovative drug HRS-9821, which is expected to enhance the company's revenue potential significantly [7]. - The company is undergoing a transformation towards innovation, with projected revenue and net profit growth rates of 22.63% and 47.28% respectively for 2024, indicating a strong upward trend in performance [7]. - The collaboration with GSK is expected to maximize the overseas value of the PDE3/4 inhibitor and opens up potential for further projects, enhancing the company's research and development capabilities [7]. Financial Forecasts and Valuation - Revenue projections for the company are as follows: - 2023: 22,820 million RMB - 2024: 27,985 million RMB (22.63% YoY growth) - 2025E: 34,074 million RMB (21.76% YoY growth) - 2026E: 40,899 million RMB (20.03% YoY growth) - 2027E: 49,373 million RMB (20.72% YoY growth) [6] - Net profit forecasts are: - 2023: 4,302 million RMB - 2024: 6,337 million RMB (47.28% YoY growth) - 2025E: 9,431 million RMB (48.84% YoY growth) - 2026E: 11,331 million RMB (20.14% YoY growth) - 2027E: 13,693 million RMB (20.85% YoY growth) [6] - The projected earnings per share (EPS) for the upcoming years are: - 2024: 0.95 RMB - 2025E: 1.42 RMB - 2026E: 1.71 RMB - 2027E: 2.06 RMB [6]. Summary of Financial Data - The company's total market capitalization is approximately 411,771.88 million RMB, with a total share capital of 6,637.20 million shares [3]. - The asset-liability ratio stands at 7.30%, indicating a strong financial position [3]. - The net asset value per share is 7.37 RMB, reflecting solid equity backing [3].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - The company is positioned as a high-end traditional gold brand, with expectations for continued market share growth. The brand appeals to both young and middle-aged high-net-worth individuals, and it is actively expanding its channels both domestically and internationally [6][8] - The company is projected to achieve significant revenue and profit growth in the coming years, with net profits expected to reach RMB 44.0 billion, RMB 57.2 billion, and RMB 67.6 billion for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 198.8%, 30.0%, and 18.2% [6][7] Financial Performance and Forecast - The company anticipates a strong sales performance for the first half of 2025, with expected revenue of approximately RMB 138 billion to RMB 143 billion, representing a year-on-year growth of about 240% to 252% [8] - Revenue and net profit forecasts for the years 2025 to 2027 are as follows: - Revenue: RMB 24,480 million (2025), RMB 31,826 million (2026), RMB 36,607 million (2027) with growth rates of 187.8%, 30.0%, and 15.0% respectively [7] - Net Profit: RMB 4,402 million (2025), RMB 5,725 million (2026), RMB 6,765 million (2027) with growth rates of 198.8%, 30.0%, and 18.2% respectively [7] - The company’s return on equity (ROE) is projected to be 52.9% in 2025, decreasing to 32.5% by 2027, indicating strong profitability [7][9] Market Potential - The traditional gold market is expected to grow significantly, with a projected market size of RMB 219.3 billion in 2024 and a compound annual growth rate (CAGR) of 21.8% from 2023 to 2028, outpacing other segments in the gold and jewelry industry [8]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - The company's revenue in H1 2025 reached 458 million yuan, representing a year-on-year increase of 69%. The growth was driven by the high increase in intelligent computing cloud services, which saw a 175% year-on-year growth [6][9] - The company has signed a framework cooperation agreement with Alibaba Cloud to enhance AI technology accessibility through the integration of the GLM-Z1 series inference models into its MaaS platform [6][7] - The "Parallel Computing Network" is expected to support the national "East Data West Computing" strategy, with the intelligent computing scale projected to reach 725.3 EFLOPS in 2024, a year-on-year increase of 74.1% [7] Financial Performance Summary - In H1 2025, the company achieved a net profit of 5.08 million yuan, a year-on-year increase of 20%, and a net cash flow from operating activities of 39.26 million yuan, up 323% year-on-year [6] - Revenue projections for 2025 are estimated at 863 million yuan, with a year-on-year growth rate of 31.86% [8] - The company is expected to achieve net profits of 24 million yuan in 2025, with corresponding EPS of 0.40 yuan per share [9]

Investment Rating - The industry investment rating is "Positive" (first time) [4] Core Viewpoints - The adjustment of the preset interest rates for life insurance products is a response to the regulatory policies set by the China Banking and Insurance Regulatory Commission at the beginning of the year [6][7] - The current research value for ordinary life insurance products is 1.99%, leading to a reduction in the maximum preset interest rates for various insurance products [4][5] - The adjustment is expected to effectively lower the liability costs for insurance companies and guide them towards transforming into dividend insurance products, which have a floating interest rate characteristic [7] Summary by Sections Industry Performance - The report highlights the performance of the insurance sector and the impact of the preset interest rate adjustments on the market [2] Regulatory Changes - The China Insurance Industry Association held a meeting to discuss the preset interest rates, resulting in a new maximum preset interest rate of 2.0% for ordinary life insurance products and 1.75% for dividend insurance products [4][5] Market Expectations - The adjustment of preset interest rates was in line with market expectations, although the asymmetric decline in traditional and dividend insurance rates was slightly ahead of market predictions [6] - The new preset interest rate limits will take effect on August 31, 2025, which is earlier than anticipated [6] Future Challenges - Insurance companies will face challenges in enhancing their sales capabilities for savings insurance as the gap between policy preset rates and bank deposit rates narrows [6] - The implementation of a new regulatory framework for insurance sales qualifications will require agents to hold relevant certifications for selling dividend insurance, adding pressure on companies to train their sales personnel [6] - The asset allocation requirements for dividend accounts will be higher compared to traditional accounts, testing the investment capabilities of insurance companies [6]

Market Overview - The Shanghai Composite Index closed at 3,597.94, with a year-to-date increase of 10.28% [2] - The ChiNext Index rose by 0.96% to 2,362.60, with a year-to-date increase of 14.66% [2] - The CSI 300 Index increased by 0.21% to 4,135.82, with a year-to-date increase of 8.26% [2] - The CSI 1000 Index closed at 6,729.98, up 0.35% with a year-to-date increase of 16.09% [2] - The STAR 50 Index closed at 1,055.11, with a year-to-date increase of 10.44% [2] - The North Exchange 50 Index decreased by 0.25% to 1,455.37, but has a significant year-to-date increase of 42.70% [2] Overseas/Education Research - The U.S. White House released an AI Action Plan aimed at accelerating AI development by easing regulations and expanding energy supply for data centers [8] - The plan emphasizes the need for a reliable and adjustable energy infrastructure to support AI growth, highlighting the potential role of nuclear energy [8] Media Industry - The summer film market is showing signs of recovery, with daily box office reaching 294 million yuan on July 26, 2025 [20] - Notable films include "Nanjing Photo Studio" which grossed over 100 million yuan in its first two days [21] - The animation film "The Legend of Luo Xiaohei 2" has grossed 213 million yuan in nine days [21] - The gaming sector is also expected to see growth with new game releases and updates during the summer [22] Metals and New Materials - Copper prices are expected to fluctuate, with a recent increase in prices due to a general rise in commodities [30] - Lithium carbonate prices rose by 9.38% to 73,000 yuan per ton, driven by supply disruptions [32] - Cobalt prices also increased as inventory levels are gradually consumed [33] Pharmaceutical Industry - The pharmaceutical index rose by 1.90%, outperforming the CSI 300 index by 0.21% [35] - Key players in the innovative drug sector are recommended for investment, including companies like Yuyuan Pharmaceutical and Frontline Bio [35] New Consumption - Pop Mart (09992.HK) reported a projected revenue growth of no less than 200% for H1 2025, driven by increased global brand recognition and diverse product offerings [35] - The company’s overseas business is also expanding, positively impacting profit margins [35] Electronics Industry - Yangjie Technology (300373.SZ) expects a net profit of 552 to 637 million yuan for H1 2025, marking a growth of 30%-50% [35] - The company is optimizing its product matrix and expanding its market presence through acquisitions [35]

Report Investment Rating - No industry investment rating provided in the report. Core Viewpoints - The bond market is under triple pressure, but a short - term small - scale rally may be expected. The bond market sentiment was suppressed due to the triple factors of the "anti - involution" sentiment driving up commodity prices, the continuous improvement of the stock market diverting funds, and the marginal improvement of some macro signals boosting risk appetite. From July 21st to 25th, the bond market underwent a rapid adjustment, with the yields of government bonds, policy - bank bonds, local government bonds, and credit bonds of all tenors rising across the board. Currently, there is a phased bullish view on the bond market, and the 10Y government bond yield may return to around 1.65%. It is expected that the Federal Reserve will significantly cut interest rates in 2026, presenting prominent opportunities in short - to medium - term US Treasury bonds [3][11][83]. Summary by Directory 1. Macro News - From January to June this year, the total profit of industrial enterprises above designated size in China was 3.44 trillion yuan, a year - on - year decrease of 1.8%. The total operating income was 66.78 trillion yuan, a year - on - year increase of 2.5%, and the operating cost was 57.12 trillion yuan, a year - on - year increase of 2.8%. The operating profit margin was 5.15%, a year - on - year decrease of 0.22pct. On July 19th, the construction ceremony of the Yarlung Zangbo River downstream hydropower project was held. The project has a total investment of about 12 trillion yuan and a total installed capacity of about 60 million kilowatts. On December 18, 2025, the full - island customs closure of Hainan Free Trade Port will be officially launched. The scope of "zero - tariff" goods will be expanded to about 74% of all commodity tariff items, an increase of nearly 53 percentage points compared to before the closure. On July 23rd (local time), US President Trump stated that he would impose simple tariffs of 15% to 50% on most other countries in the world. On July 24th (local time), EU member states overwhelmingly passed a decision to impose tariffs on US products worth 93 billion euros [12][15]. 2. Medium - term High - frequency Data 2.1 Consumption - As of July 20th, the daily average retail volume of passenger car manufacturers was 58,000 vehicles, a year - on - year increase of 16.8%, and the daily average wholesale volume was 58,000 vehicles, a year - on - year increase of 8.3%. As of July 25th, the total box office revenue of domestic movies in the past 7 days was 984.43 million yuan, a year - on - year decrease of 33.6% but an increase of 110.2% compared to a month ago. As of July 11th, the total retail volume of three major household appliances was 2.471 million units, a year - on - year increase of 26.5%, and the total retail sales were 5.81 billion yuan, a year - on - year increase of 28.9% [13][21]. 2.2 Transportation - As of July 20th, the container throughput of ports was 6.642 million TEUs, a year - on - year increase of 5.2%. As of July 25th, the CCFI composite index was 1261.4, a year - on - year decrease of 42.2%. The average daily subway passenger volume in first - tier cities in the past 7 days was 39.519 million person - times, a year - on - year decrease of 2.2% but an increase of 1.0% compared to a month ago. As of July 20th, the postal express pick - up volume was 3.67 billion pieces, a year - on - year increase of 13.8% but a decrease of 10.0% compared to 4 weeks ago. The railway freight volume was 80.488 million tons, a year - on - year increase of 6.8%, and the highway truck traffic volume was 53.431 million vehicles, a year - on - year increase of 2.0% [26][28][31]. 2.3 Capacity Utilization - As of July 23rd, the blast furnace capacity utilization rate of major steel enterprises in China was 77.6%, a year - on - year increase of 2.3 percentage points. As of July 24th, the average asphalt capacity utilization rate was 26.0%, a year - on - year increase of 3.0 percentage points. As of July 24th, the soda ash capacity utilization rate was 82.8%, a year - on - year decrease of 6.5 percentage points, and the PVC capacity utilization rate was 74.9%, a year - on - year increase of 1.8 percentage points. As of July 25th, the average PX capacity utilization rate was 80.8%, and the average PTA capacity utilization rate was 80.7% [34][37]. 2.4 Real Estate - As of July 18th, the transaction area of second - hand houses in 9 sample cities decreased by 16.0% compared to 4 weeks ago. As of July 25th, the total transaction area of commercial housing in 30 large - and medium - sized cities in the past 7 days was 1.564 million square meters, a year - on - year decrease of 5.6% [41][42]. 2.5 Prices - As of July 25th, the average wholesale price of pork was 20.7 yuan per kilogram, a year - on - year decrease of 17.5% but an increase of 2.4% compared to 4 weeks ago. The average wholesale price of vegetables was 4.4 yuan per kilogram, a year - on - year decrease of 10.3% but an increase of 0.5% compared to 4 weeks ago. The average wholesale price of 6 key fruits was 7.1 yuan per kilogram, a year - on - year decrease of 0.6% and a decrease of 4.2% compared to 4 weeks ago. The average price of thermal coal at northern ports was 641 yuan per ton, a year - on - year decrease of 24.5% but an increase of 4.7% compared to 4 weeks ago. The average spot price of WTI crude oil was 65.7 US dollars per barrel, a year - on - year decrease of 15.7% and a decrease of 2.5% compared to 4 weeks ago. The average spot price of rebar was 3310.4 yuan per ton, a year - on - year increase of 2.6% and an increase of 7.9% compared to 4 weeks ago. The average spot price of iron ore was 799.6 yuan per ton, a year - on - year decrease of 0.7% but an increase of 10.8% compared to 4 weeks ago. The average spot price of glass was 15.1 yuan per square meter, a year - on - year decrease of 14.8% but an increase of 9.2% compared to 4 weeks ago [46][49][54]. 3. Bond and Foreign Exchange Markets - On July 25th, R001 was 1.55%, up 15.10BP from July 21st; R007 was 1.69%, up 19.60BP from July 21st. DR001 was 1.52%, up 15.65BP from July 21st; DR007 was 1.65%, up 16.22BP from July 21st. Most government bond yields rose. On July 25th, the yields of 1 - year, 5 - year, 10 - year, and 30 - year government bonds were 1.39%, 1.59%, 1.73%, and 1.98% respectively, up 4.1BP, 6.0BP, 6.8BP, and 8.7BP respectively from July 18th. The yields of 1 - year, 5 - year, 10 - year, and 30 - year policy - bank bonds were 1.52%, 1.70%, 1.81%, and 2.08% respectively, up 4.6BP, 9.5BP, 9.0BP, and 5.2BP respectively from July 18th. The yields of 1 - year, 5 - year, and 10 - year local government bonds were 1.44%, 1.67%, and 1.83% respectively, up 5.2BP, 6.2BP, and 6.1BP respectively from July 18th. The yields of 1 - month and 1 - year AAA and AA + inter - bank certificates of deposit were 1.57%, 1.67%, 1.58%, and 1.70% respectively, up 6.0BP, 5.3BP, 6.0BP, and 5.3BP respectively from July 18th. As of July 25th, 2025, the 10 - year government bond yields of the US, Japan, the UK, and Germany were 4.4%, 1.6%, 4.6%, and 2.8% respectively, down 4BP, up 8BP, down 4BP, and up 6BP respectively from July 18th. On July 25th, the central parity rate and spot exchange rate of the US dollar against the Chinese yuan were 7.14 and 7.17 respectively, down 79 and 87 pips respectively from July 18th [56][61][70]. 4. Institutional Behavior - As of July 27th, the net - loss rate of public - offering wealth management products of wealth management companies was about 1.2%, down 0.77 percentage points from 1.97% at the beginning of the year, and the current percentile of the net - loss rate within the year was 36.7%. Since the beginning of 2025, the duration of medium - and long - term pure bond funds investing in interest - rate bonds has shown a trend of first decreasing and then increasing, with a slight decline in the past week. On July 25th, 2025, the estimated average duration was about 5.3 years, a decrease of about 0.17 years compared to the previous week (July 18th), and the weekly data showed the first decline since early May. The duration of medium - and long - term pure bond funds investing in credit bonds has shown a fluctuating trend since the beginning of 2025, and has risen rapidly in the past two weeks. On July 25th, 2025, the estimated median duration was about 2.5 years, and the estimated average duration was about 2.6 years, an increase of about 0.3 years compared to the previous week (July 18th) [77][80][81]. 5. Investment Recommendations - Currently, there is a phased bullish view on the bond market, and the 10Y government bond yield may return to around 1.65%. In 2025, there is no trend - based bond market rally, so it is advisable to take profits in a timely manner. Due to the rapid adjustment of the bond market and the rapid reduction of the duration of bond funds, it is believed that the bond market risks may have been mitigated. It is expected that the Federal Reserve will significantly cut interest rates in 2026, presenting prominent opportunities in short - to medium - term US Treasury bonds [83].

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company is a small but efficient wind power operator that is expanding into green fuels, which opens up growth opportunities [6] - The company has received approval for a specific stock issuance and is increasing its stake in its subsidiary, Shanghai Jiayi Rongyuan, which is involved in green methanol, green ethanol, and green aviation fuel [7] - The company plans to raise 1.2 billion yuan through a private placement, which will increase the actual controller's shareholding to 44.3% [7] - The company is collaborating with Ningxia Jiazhe Group to enter the green chemical sector, significantly enhancing growth potential [7] - The company has a robust wind power operation with approximately 2GW of installed capacity and plans for additional capacity, ensuring sustained growth [7] - The potential launch of wind power REITs is expected to contribute to short-term performance and improve cash flow [7] Financial Summary - Revenue projections for 2023 to 2027 are as follows: 2,403 million yuan (2023), 2,422 million yuan (2024), 2,529 million yuan (2025E), 3,003 million yuan (2026E), and 3,853 million yuan (2027E) [9] - The expected growth rates for net profit from 2025 to 2027 are 44.2%, 12.28%, and 19.48% respectively, with corresponding PE ratios of 10, 9, and 8 times [10] - The company’s return on equity (ROE) is projected to improve from 12.25% in 2025 to 14.00% in 2027 [10]

Investment Rating - The report maintains a "Positive" investment rating for the express delivery industry [1] Core Insights - The express delivery industry is experiencing a trend of "anti-involution," leading to a revaluation of its value [3] - The report emphasizes the importance of regulatory actions in stabilizing the industry and improving profitability [3] - Short-term price improvements are expected, with potential for further increases during peak seasons [3] Summary by Sections 1. Review of 2021's "Anti-Involution" - In 2021, the express delivery industry saw a significant policy push to protect courier rights, leading to price increases and improved profitability [3][19] - The average price per ticket for the "Tongda" system increased by approximately 0.6 yuan from the low point in August 2021 to January 2022 [3] - By Q4 2021, YTO Express reported a net profit of 1.15 billion yuan, a year-on-year increase of 202% [3] 2. Current Industry Dynamics - After 2023, the industry has re-entered a phase of price competition due to increased capacity and market share strategies, leading to profitability nearing historical lows [3][39] - The National Postal Administration has clearly opposed "involution-style" competition, indicating a regulatory environment similar to that of 2021 [3][65] - The report suggests monitoring regulatory developments in key production areas like Yiwu and Guangdong for potential price adjustments [3] 3. Short-term and Long-term Outlook - Short-term price improvements are anticipated, particularly in traditionally low-price cities, with potential for broader price increases in peak seasons [3][69] - The report forecasts a shift from price wars to value competition, which could enhance long-term profitability for leading express companies [3][69] - Investment recommendations include focusing on A-shares such as Shentong Express, YTO Express, and Yunda Express, as well as H-shares like Jitu Express and ZTO Express [3] 4. Financial Performance Metrics - In Q1 2025, the net profit per ticket for major companies like Zhongtong, YTO, Yunda, and Shentong fell close to or below historical lows [50] - The report highlights significant cash flow pressures, with some companies experiencing cash flow performance worse than the bottom of 2021 [50] - The report provides elasticity calculations indicating that price increases could significantly enhance profitability for express companies [70]