Group 1 - Investment Rating: The report suggests to pay attention to Meidele, with a focus on its long-term commitment to the intelligent manufacturing equipment sector [60] - Core Viewpoint: Meidele is expected to benefit from the growth in demand for high-precision and reliable automated conveying equipment as the intelligent manufacturing industry upgrades and new energy capacity expands [60] Group 2 - Issuance Details: Meidele's issuance price is set at 41.88 CNY per share, with an issuance P/E ratio of 14.33X, and the total number of shares issued is 16 million, accounting for 22.18% of the total share capital post-issuance [7][8] - Fundraising Projects: The total investment amount for Meidele's fundraising projects is estimated at 794.28 million CNY, primarily for the construction of the Dalian Meidele Phase IV project and various R&D projects [10][11] - Company Overview: Established in 2009, Meidele focuses on the research, design, manufacturing, and sales of intelligent manufacturing equipment, with its main products being modular conveying systems and industrial components [12][13] Group 3 - Industry Growth: The intelligent manufacturing equipment industry in China reached a market size of 3.2 trillion CNY in 2023, with expectations for continued growth [38][41] - Market Size Projections: The intelligent logistics equipment market in China is projected to grow from 1,003.9 billion CNY in 2023 to 1,920.2 billion CNY by 2027, with a CAGR of approximately 17.60% [41][46] - Comparable Companies: Key comparable companies in the industry include Yihua, Bozhong Precision, and XianDao Intelligent, which share similar product lines and market applications [56][60]

Group 1: Emotional Economy - The emotional economy in China is projected to exceed 20 trillion yuan by 2024, with a significant growth trajectory expected to continue, reaching approximately 45 trillion yuan by 2029 [2][23][26] - Emotional consumption is characterized by a willingness to pay for emotional value, with over 60% of consumers viewing it as an effective way to relieve stress, and nearly half recognizing it as a means to alleviate emotions [8][20][23] - The emotional economy encompasses various sectors, including trendy toys, pets, emotional health, cultural entertainment, stress relief products, and fragrances, indicating a multi-faceted development landscape [2][24] Group 2: Trendy Toy Economy - The trendy toy market is shifting from functional to emotional consumption, with a projected CAGR of 21% from 2025 to 2030 [2][31] - The retail sales of trendy toys in China are expected to grow from 20.7 billion yuan in 2019 to 58.7 billion yuan in 2024, reflecting a compound annual growth rate of 23.2% [2][37] - The growth of the trendy toy industry is driven by increasing emotional consumption, with these products becoming vehicles for personal identity and cultural belonging [2][37] Group 3: Pet Economy - The pet economy in China is anticipated to surpass 1 trillion yuan by 2027, driven by emotional attachment and companionship needs [2][56] - The pet industry is experiencing steady growth, with the market size expected to reach 701.3 billion yuan in 2024, reflecting an 18.3% year-on-year increase [2][64] - Pet food remains the dominant segment, accounting for 52.8% of the pet consumption market in 2024, with a notable increase in the average spending per pet owner expected in the coming years [2][64][68] Group 4: Fragrance Economy - The fragrance market in China is projected to grow at a CAGR of 15% from 2018 to 2024, with the market size expected to reach approximately 32.9 billion yuan by 2025 [2][81][86] - Emotional benefits are prioritized over functional needs in fragrance consumption, with 59.7% of consumers purchasing fragrances to enhance their emotional experience [2][81][92] - The fragrance market is characterized by a blend of online and offline channels, with online sales expected to grow significantly, reflecting a shift in consumer purchasing behavior [2][88]

Investment Rating - The investment rating for the real estate industry is "Positive" (maintained) [4] Core Viewpoints - The report highlights three major trends expected in 2026: 1) The adjustment in the real estate market is likely nearing its end, with current price adjustments being relatively sufficient; 2) There are structural opportunities for "good houses" as the market enters a phase of differentiation, with a focus on high-quality residential developments; 3) The recovery of the Hong Kong property market is anticipated to continue, driven by multiple favorable factors [5][40]. Market Performance - The Shanghai Composite Index decreased by 0.4%, while the Shenzhen Component Index increased by 1.1%, and the ChiNext Index rose by 1.0%. The real estate sector (Shenwan) fell by 3.5% during the week [5][8]. - In terms of individual stocks, the top five gainers were *ST Yangguang (+10.2%), Daming City (+8.8%), Tibet City Investment (+5.0%), Nandu Property (+4.7%), and Guangming Real Estate (+4.7%). The top five losers included Huaxia Happiness (-29.8%), ST Zhongdi (-16.7%), China Wuyi (-15.8%), Rongsheng Development (-13.9%), and Caixin Development (-11.0%) [5][8]. Data Tracking New Housing Transactions - For the week of January 10-16, new housing transactions in 42 key cities totaled 1.45 million square meters, a week-on-week increase of 6.3%, but a year-on-year decrease of 32.9% [13]. - For January up to the week of January 16, new housing transactions totaled 3 million square meters, a month-on-month decrease of 32.2% and a year-on-year decrease of 40.7% [16]. Second-Hand Housing Transactions - For the week of January 10-16, second-hand housing transactions in 21 key cities totaled 2.16 million square meters, a week-on-week increase of 4.9%, but a year-on-year decrease of 9.2% [27]. - For January up to the week of January 16, second-hand housing transactions totaled 4.3 million square meters, a month-on-month decrease of 6.0% and a year-on-year decrease of 17.6% [30]. Industry News - The Ministry of Finance, the State Administration of Taxation, and the Ministry of Housing and Urban-Rural Development jointly announced new policies to extend personal income tax incentives for residents purchasing new homes [40]. - The central bank and the financial regulatory authority have lowered the minimum down payment ratio for commercial property loans to 30%, aimed at supporting inventory reduction and market revitalization [40]. - Various local policies have been introduced, such as Shanghai's support for converting existing commercial buildings into elderly care facilities and Shenzhen's "Housing and Entrepreneurship Support Plan" providing three years of tiered rent support [40]. Company Announcements - In December, the sales figures for major real estate companies were as follows: Yuexiu Real Estate at 8.996 billion (down 33.4% YoY), China Overseas Land & Investment at 1.99 billion (down 31.0% YoY), and China Resources Land at 41 billion (up 28.1% YoY) [42].

Fixed Income - In 2025, China's total foreign trade import and export reached 45.47 trillion yuan, a historical high, with a year-on-year growth of 3.8% [7] - The People's Bank of China announced a 0.25 percentage point reduction in various structural monetary policy tool rates starting January 19 [8] - The bond market is expected to perform better than anticipated in 2026, with a focus on potential rebounds in long-term bonds [10] - The average issuance rate for AA+ and below urban investment bonds and industrial bonds is in the range of 2.3-2.5% [13] New Consumption - In December 2025, the total retail sales of consumer goods reached 45,136 billion yuan, with a year-on-year growth of 0.9% [17] - Urban and rural retail sales in December were 38,429 billion yuan and 6,707 billion yuan, respectively, with year-on-year growth of 0.7% and 1.7% [18] - The growth rate of catering retail sales outpaced that of goods, indicating a shift in consumer spending patterns [19] Pharmaceutical Industry - The US tumor gene testing industry is accelerating, with significant opportunities in the domestic market [21] - The pharmaceutical index fell by 0.68%, with a relative underperformance compared to the CSI 300 index [22] - The report suggests focusing on innovative drug companies and medical technology sectors, highlighting companies like China Biologic Products and Shanghai Yizhong [25] - The domestic market for MRD and early tumor screening is expected to grow rapidly, mirroring trends in the US [23] Public Utilities and Environmental Protection - In 2025, China's total electricity consumption exceeded 10 trillion kWh for the first time, with the tertiary industry and urban residents contributing 50% to the growth [32] - The National Grid's investment plan for the "14th Five-Year Plan" is expected to reach 4 trillion yuan, marking the highest historical investment in the grid [35] - The report emphasizes the importance of enhancing power supply quality and the need for a robust grid to accommodate increasing electricity demand [34] Technology and Robotics - The global humanoid robot shipment is projected to reach 13,318 units in 2025, with significant contributions from Chinese manufacturers [27] - The report highlights key companies in the humanoid robot supply chain, including KAIT and Dingzhi Technology, which are making strides in product development [28] - The North Exchange technology growth stocks showed a median increase of +1.89% during the reporting period [28]

Investment Rating - The investment rating for the transportation industry is "Positive" (maintained) [4] Core Views - The express delivery industry shows resilient demand, with a "reverse involution" trend driving up express prices, enhancing corporate profit elasticity. The e-commerce express delivery sector is expected to see healthy competition opportunities in the medium to long term. Companies like SF Express and JD Logistics are likely to benefit from cyclical recovery and ongoing cost reductions, with both performance and valuation having room for growth. J&T Express is expected to benefit from high growth and market share expansion in overseas markets [16] - In the shipping sector, the outlook for crude oil transportation is positive due to the OPEC+ production increase cycle and the Federal Reserve's interest rate cut cycle. The geopolitical uncertainties in the Middle East may enhance VLCC freight rate elasticity. The shipping market is expected to improve further in 2026, with recommendations to focus on companies like China Merchants Energy Shipping and COSCO Shipping Energy [16] - The shipping market is anticipated to recover, driven by environmental regulations limiting the operation of older fleets and the expected demand boost from the production of iron ore in Western Australia and the Federal Reserve's interest rate cuts. Companies like China Merchants Energy Shipping and Hainan Airlines are recommended for attention [16] - The aviation sector is expected to see Q3 performance as a potential signal for a long-term market upturn, with stable demand growth and a tightening supply situation. Companies such as China Eastern Airlines and Hainan Airlines are suggested for early positioning [16] Summary by Sections Express Delivery - The express delivery industry is experiencing a robust demand with a year-on-year growth of 5.0% in business volume, reaching 180.6 billion pieces in November 2025. However, the business revenue decreased by 3.7% to 137.65 billion yuan [25][30] - Companies like YTO Express and Shentong Express are showing significant growth in business volume, with YTO achieving a 13.55% increase and Shentong a 14.67% increase in November 2025 [30] Shipping and Vessels - The BDTI index for crude oil transportation increased by 15.61% to 1388 points, while the BCTI index for refined oil transportation rose by 11.00% to 795 points [47] - The overall shipping market is expected to improve, with the BDI index showing a decrease of 10.23% to 1591 points, indicating a potential recovery phase ahead [47] Aviation - In November 2025, civil aviation completed a passenger transport volume of approximately 60 million people, reflecting a year-on-year increase of 6.6%. The cargo and mail transport volume reached 930,000 tons, up by 10.8% [56] - The overall passenger load factor for major airlines was 85.57%, indicating a stable demand environment [62] Ports - From January 5 to January 11, 2026, China's port cargo throughput reached 26.275 million tons, a week-on-week increase of 3.06%, while container throughput increased by 5.50% to 685,000 TEU [80]

1. Report's Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Report's Core View - In 2025, China's foreign trade imports and exports reached 45.47 trillion yuan, a record high, with a year - on - year increase of 3.8%. Exports were 26.99 trillion yuan, up 6.1% year - on - year, and imports were 18.48 trillion yuan, up 0.5% year - on - year. Exports to Africa were outstanding, with year - on - year growth rates of 6.0%, 8.0%, 18.4%, and - 18.2% for the EU, ASEAN, Africa, and the US respectively. High - tech product exports reached 5.25 trillion yuan, up 13.2% year - on - year. In December 2025, import and export growth accelerated. The total import and export value was 4.26 trillion yuan, up 4.9% year - on - year [2][98]. - In 2026, the bond market may perform better than expected. Long - term bonds may experience a rebound from oversold conditions. Since the second half of 2025, the bond market has often deviated from the fundamentals and may be dominated by institutional behavior. Currently, long - term bond yields are at a one - year high, making long - term bonds attractive for investment. It is expected that the yield of the 30Y Treasury active bond will gradually return to around 2.2% in the first quarter. However, due to the strong stock market, trading desks may not buy ultra - long - term bonds in the short term. Major opportunities for ultra - long - term bonds await a significant decline in institutional expectations for the stock market and a reduction in policy interest rates [4][98]. 3. Summary by Relevant Catalogs 3.1 Macro News - **Import and Export Growth**: In December 2025, the total import and export value was 4.26 trillion yuan, up 4.9% year - on - year, 0.9 percentage points higher than in November. Exports were 2.54 trillion yuan, up 5.2% year - on - year (a 0.5 - percentage - point decrease from November), and imports were 1.73 trillion yuan, up 4.4% year - on - year (a 2.7 - percentage - point increase from November). Emerging markets played a significant role in driving exports, while exports to the US continued to be a drag. Core drivers of export growth included the release of Christmas - season demand and the trade transfer effect. High - end and mid - end manufacturing became the core growth engine, with strong performance in electromechanical and high - tech products, while labor - intensive products still faced pressure [11][13][23]. - **Financial Statistics**: At the end of 2025, the stock of social financing scale was 442.12 trillion yuan, up 8.3% year - on - year. The annual increment of social financing scale in 2025 was 35.6 trillion yuan, 3.34 trillion yuan more than the previous year. At the end of December 2025, M2, M1, and M0 increased by 8.5%, 3.8%, and 10.2% year - on - year respectively. The balance of domestic and foreign currency loans increased by 6.2% year - on - year, and the balance of RMB loans increased by 6.4% year - on - year [19]. - **Policy Measures**: On January 15, 2026, the central bank announced two policy measures: lowering interest rates of various structural monetary policy tools and improving and expanding support for these tools. Specific measures included rate cuts, increasing quotas, and expanding the scope of support for different types of loans and tools [24][26]. 3.2 Medium - term High - frequency Data - **Consumption**: As of January 11, the daily average retail and wholesale volumes of passenger cars decreased by 32.0% and 40.0% year - on - year respectively. As of January 16, the 7 - day total national box office revenue decreased by 24.3% year - on - year. As of January 9, the total retail volume and total retail sales of three major household appliances decreased by 38.3% and 39.4% year - on - year respectively [25][30]. - **Transportation**: As of January 17, the 7 - day average migration scale index increased by 2.1% year - on - year. As of January 11, the number of civil aviation flights decreased by 2.5% year - on - year. As of January 16, the 7 - day average subway passenger volume in first - tier cities increased by 1.2% year - on - year. As of January 11, postal express collection and delivery volumes, railway freight volume, and highway truck traffic decreased year - on - year [33][36]. - **Industry**: As of January 16, iron ore inventory increased by 10.0% year - on - year, while rebar inventory decreased by 1.7% year - on - year, and float glass enterprise inventory increased by 20.9% year - on - year. As of January 8, the daily coal consumption of key power plants increased by 1.0% year - on - year. As of January 16, the apparent consumption of steel and rebar increased by 2.6% and 2.8% year - on - year respectively, while the apparent consumption of wire rods decreased by 2.7% year - on - year. As of January 14 - 15, the operating rates of blast furnaces, asphalt, soda ash, and PVC decreased year - on - year [38][40][47]. - **Real Estate**: As of January 16, the 7 - day total commercial housing transaction area in 30 large - and medium - sized cities decreased by 32.0% year - on - year. As of January 9, the second - hand housing transaction area in 9 sample cities decreased by 29.4% year - on - year. As of January 11, the land transaction area and land transaction price in 100 large - and medium - sized cities decreased year - on - year [48][52][55]. - **Prices**: As of January 16, the average wholesale prices of pork, vegetables, and 6 key fruits showed different year - on - year and 4 - week - on - 4 - week changes. The average prices of northern port thermal coal, WTI crude oil, rebar, iron ore, and glass also had various year - on - year and 4 - week - on - 4 - week changes [58][63][70]. 3.3 Bond and Foreign Exchange Markets - **Interest Rates**: On January 16, overnight Shibor, R001, R007, DR001, DR007, IBO001, and IBO007 had different changes compared to January 12. Most Treasury bond yields declined. On January 16, the yields of 1 - year/5 - year/10 - year/30 - year Treasury bonds decreased by 6.8BP/4.4BP/3.7BP/0.1BP respectively compared to January 9. The yields of 1 - year/5 - year/10 - year/30 - year China Development Bank bonds had different changes compared to January 9. The yields of 1 - year/5 - year/10 - year local government bonds decreased compared to January 9. The yields of AAA 1 - month/1 - year and AA+ 1 - month/1 - year inter - bank certificates of deposit decreased compared to January 9 [75][79][81]. - **Foreign Exchange**: As of January 16, 2026, the ten - year Treasury bond yields of the US, Japan, the UK, and Germany were 4.24%, 2.18%, 4.40%, and 2.89% respectively, with different changes compared to January 9. The central parity rate and spot exchange rate of the US dollar against the RMB on January 16 decreased compared to January 9 [87][90]. 3.4 Institutional Behavior - Since 2026, the durations of medium - and long - term bond funds have generally decreased. On January 16, 2026, the estimated median duration of medium - and long - term interest - rate bond funds was about 3.3 years, a decrease of about 1.2 years compared to December 31, 2025. The estimated median duration of medium - and long - term credit bond funds was about 2.2 years, a decrease of about 0.3 years compared to December 31, 2025 [93][95]. 3.5 Investment Recommendations - In 2026, the bond market may perform better than expected. Pay attention to the possible oversold rebound of long - term bonds. It is recommended to focus on the band - trading opportunities of ultra - long - term bonds, allocate 3 - 5Y capital bonds to obtain coupons, and also pay attention to multi - asset investment opportunities [4][98].

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - In December, the total retail sales of consumer goods reached 45,136 billion yuan, with a year-on-year growth of 0.9%. Excluding automobiles, the total retail sales amounted to 39,654 billion yuan, growing by 1.7% year-on-year [5][6] - The growth rate of catering retail sales outpaced that of goods, with December catering revenue increasing by 2.2% year-on-year, while goods retail saw a growth of 0.7% [5][6] - Essential consumption categories such as grain, oil, and food saw a retail sales growth of 3.9% year-on-year in December, while daily necessities grew by 3.7% [19][25] - In optional consumption, communication equipment experienced significant growth, with retail sales increasing by 20.9% year-on-year [24][31] Summary by Sections Overall Data - December's total retail sales of consumer goods were 45,136 billion yuan, with a year-on-year increase of 0.9%. Urban and rural retail sales were 38,429 billion yuan and 6,707 billion yuan, respectively, with year-on-year growth of 0.7% and 1.7% [5][6] Retail Sales by Category - The retail sales of limited above units in December were 19,547 billion yuan, down 1.9% year-on-year. The breakdown shows that limited above goods retail and catering revenue were 18,084 billion yuan and 1,463 billion yuan, respectively, with year-on-year changes of -2.0% and -1.1% [13][19] - Essential consumption categories showed strong growth, with grain and oil retail sales up 3.9% and daily necessities up 3.7% year-on-year [19][25] - Optional consumption categories like cosmetics saw a growth of 8.8% year-on-year, while communication equipment surged by 20.9% [24][31] - Other consumer categories experienced declines, with furniture down 2.2%, home appliances down 18.7%, and building materials down 11.8% [33][36]

Group 1 - The humanoid robot industry is accelerating its commercialization process, with core component markets poised for growth opportunities [7][18] - The total global shipment of humanoid robots is expected to reach 13,318 units by 2025, with Chinese manufacturers leading in production and market share [18][19] - Key companies in the North Exchange related to the humanoid robot industry include Kaite Co., which is developing electronic mechanical brake sensors and other products, and Dingzhi Technology, which is focusing on various motor technologies [30][33] Group 2 - The median price-to-earnings (P/E) ratio for the information technology industry has increased by 6.76% to 77.8X, indicating a positive trend in valuation [39][54] - The median market capitalization for electronic device companies on the North Exchange has decreased slightly from 24.8 billion to 24.0 billion, despite an increase in the median P/E ratio [41][45] - The median P/E ratio for the mechanical equipment industry has risen from 43.6X to 43.9X, reflecting a stable valuation environment [46][49] Group 3 - The North Exchange's technology growth stocks saw a median price change of +1.89%, with 77% of companies experiencing an increase in stock prices during the observed period [34][36] - Notable stock performers include Yinen Power, which increased by 33.47%, and Liujin Technology, which rose by 33.20% [37][38] - The automotive industry on the North Exchange has also seen a rise in median P/E ratio from 31.9X to 33.6X, with a total market capitalization increase to 590 billion [60][62]

Investment Rating - The investment rating for the pharmaceutical industry is "Positive" (maintained) [4] Core Viewpoints - The US tumor gene testing industry is accelerating, and there are positive domestic opportunities. The market for gene testing has low penetration rates but high growth potential, particularly in colorectal cancer early screening, treatment selection, and minimal residual disease (MRD) testing, which are all billion-dollar markets [3][8] - The report emphasizes the importance of innovation in the pharmaceutical sector, highlighting that the Chinese pharmaceutical industry has completed a transition from old to new growth drivers, particularly in innovative drugs. Companies like Heng Rui Medicine and Han Sen Pharmaceutical have made significant strides in innovation [5][41] - The report suggests that the aging population and the increasing demand for healthcare services will continue to drive growth in the pharmaceutical industry, supported by a multi-layered payment system and advancements in technology such as AI and brain-computer interfaces [41][42] Summary by Sections Market Performance - From January 12 to January 16, the pharmaceutical index fell by 0.68%, with 202 stocks rising and 261 falling. The top gainers included Baolait (up 48.76%) and Hualan Biological (up 32.72%), while the biggest losers were Sunflower (down 37.48%) and *ST Changyao (down 33.33%) [5][25][27] Gene Testing Industry - The report highlights the rapid development of the US tumor gene testing industry, with companies like Natera and Guardant Health showing impressive revenue growth. Natera's Q4 2025 revenue reached $660 million, a 39% year-on-year increase, while Guardant Health's revenue for the same period was $280 million, also up 39% [8][9] - The report notes that the domestic gene testing market is expected to grow rapidly, with companies like BGI and Edan Diagnostics actively positioning themselves in the MRD and early screening sectors [24][22] Investment Recommendations - The report recommends focusing on strong fundamentals and undervalued stocks in the innovative drug sector, including companies like Xinyi Tai, Zecjin Pharmaceutical, and Shanghai Yizhong. It also suggests monitoring emerging technologies in healthcare, such as AI and brain-computer interfaces, which are expected to see significant advancements in 2026 [5][45][44] - Specific investment combinations for January include Xinyi Tai, China Biologic Products, and Sanofi Pharmaceutical, among others [45]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights the rapid progress and optimistic outlook for the liquid cooling industry, particularly focusing on the core increments of the Rubin liquid cooling solution, which includes microchannel technology, CDU enhancements, and manifold integration [4][5][10]. Summary by Sections 1. NVIDIA Rubin Platform Release - The Rubin platform adopts a 100% liquid cooling solution, expected to be delivered in the second half of 2026. It features a modular design with a power consumption exceeding 200KW, compared to the GB300's 80% liquid cooling [8][10]. 2. Core Change 1: Microchannel Cold Plate Material and Process Upgrades - The adoption of microchannel technology is expected to become the mainstream cooling method, significantly enhancing cooling efficiency by reducing thermal resistance and increasing heat flow density [13][18]. - Key material considerations include the use of oxygen-free copper for its superior thermal conductivity and structural strength [19]. - Connection methods must ensure quality and sealing to prevent flow channel deformation or blockage, with techniques such as laser welding and brazing being utilized [20][23]. - Flow channel processing requires high precision, with various methods like precision milling and laser processing being employed to achieve the necessary micro-level accuracy [24][29]. 3. Core Change 2: CDU Power and Control Requirements Enhancement - The CDU's overall power will increase in line with the cabinet's power, with enhanced control requirements to accommodate higher cooling demands. This is expected to elevate the CDU's overall value [27][28]. 4. Core Change 3: Manifold Integration Design - The design of the manifold has evolved to be more integrated and intelligent, featuring larger pipe diameters and the inclusion of valves and sensors to improve stability and reduce leakage risks [30][31].