Group 1 - The coal industry is experiencing a cost increase, with coal prices falling below the full cost, indicating that the industry may have reached its bottom [4][10][33] - The full cost of high-quality thermal coal from the Shanxi, Shaanxi, and Inner Mongolia regions to Qinhuangdao port is estimated to be 630 RMB/ton in 2024, which is an increase from previous years [4][33] - The report highlights that the average production cost of self-produced coal for major companies like China Shenhua, Shaanxi Coal, and China Coal Energy is around 200 RMB/ton, with China Shenhua having the lowest cost at 179 RMB/ton [21][20][10] Group 2 - The report indicates that high-cost production capacity is beginning to shrink, and supply-demand rebalancing is the core logic for the bottoming of coal prices [4][5] - Domestic low coal prices are suppressing imports, with a notable decrease in imported coal volumes since 2025, which is expected to continue [4][5] - Seasonal demand improvements for electricity generation are noted, with a decrease in port inventories since mid-May, suggesting a tightening domestic supply [4][5] Group 3 - The report recommends a strategic bullish outlook on the coal sector, particularly favoring companies with high long-term contract ratios and flexible pricing mechanisms, such as China Shenhua and China Coal Energy [5][4] - The report emphasizes that while coal prices may remain low for a period, the expectation is that supply will naturally clear over time, leading to a potential rebound in prices [5][4] - The analysis of transportation costs indicates that the average transportation cost from the pit to the Qinhuangdao port is approximately 200-250 RMB/ton, which is a critical factor in determining overall coal pricing [24][25][32]

Group 1: Deep Sea Technology and Situational Awareness - The report highlights the increasing focus on "Deep Sea Technology" due to the upcoming military parade on September 3, which will showcase new combat forces including unmanned systems and underwater equipment [2][8] - The core of "Deep Sea Technology" revolves around resource security, national defense construction, and blue economy, with situational awareness being a key component [2][9] - The challenges in situational awareness construction lie in underwater signal processing, which is deemed critical for effective underwater operations [9][10] Group 2: Huaren Microelectronics (华润微) - Huaren Microelectronics operates a fully integrated supply chain model, focusing on power semiconductors and smart sensors, with a recovery expected in the power semiconductor market [11][12] - The company has a significant market share in IGBT products, particularly in industrial and automotive applications, with plans to expand into new customer segments [11][12] - The report projects a steady increase in net profit for Huaren Microelectronics from 9.59 billion to 16.50 billion CNY from 2025 to 2027, with a corresponding PE ratio decline [13] Group 3: Zhongyuan Expressway (中原高速) - Zhongyuan Expressway focuses on the construction and operation of toll roads, with a projected revenue of 6.969 billion CNY in 2024, where toll income constitutes approximately 63.98% [15][16] - The company has a young asset structure with an average remaining toll collection period of 17.04 years, indicating potential for value reassessment [16][18] - The report anticipates net profits to grow from 10.02 billion to 11.50 billion CNY from 2025 to 2027, with a favorable PE ratio [18] Group 4: Dekang Agriculture (德康农牧) - Dekang Agriculture is transitioning from a traditional agricultural production company to a platform and technology-driven enterprise, aiming to create a "value symbiosis" ecosystem [5][22] - The company has demonstrated significant profitability advantages, with a projected average income of 770,000 CNY per modern pig farm in 2024, and a return on equity (ROE) of 48% [29][30] - The report forecasts Dekang's net profit to reach 36 billion CNY by 2027, with a PE ratio of 7.69, reflecting its strong growth potential in the agricultural sector [30]

Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook based on its integrated operations and expected recovery in power semiconductor demand [5][8]. Core Views - The company is expected to benefit from a recovery in the power semiconductor industry, with inventory levels returning to reasonable levels and gross margins beginning to rebound [7][10]. - The company operates a fully integrated supply chain, focusing on both product solutions and manufacturing services, which positions it well for growth in various applications, particularly in automotive electronics and industrial sectors [7][15]. Summary by Sections 1. Comprehensive Power Semiconductor Layout - The company employs an IDM model, integrating chip design, mask manufacturing, wafer fabrication, and packaging testing, which enhances operational efficiency [15][17]. - The product and solution segment focuses on power semiconductors, smart sensors, and smart control, while the manufacturing and service segment provides large-scale mask manufacturing, wafer fabrication, and packaging testing [7][15]. 2. Power Semiconductor: Diverse Product Series and Application Expansion - The global power semiconductor market is expected to grow steadily, with domestic manufacturers catching up [69]. - The company is expanding its MOSFET products into automotive electronics, industrial applications, and AI servers, with IGBT products dominating over 70% in industrial and automotive sectors [7][10]. 3. Manufacturing and Services: Specialized Process Platforms - The company has established multiple wafer manufacturing lines, including 8-inch and 12-inch lines, with a focus on high-performance products [21][23]. - The packaging and testing segment covers a wide range of semiconductor testing processes, ensuring comprehensive service offerings [21][23]. 4. Profit Forecast and Valuation - The company is projected to achieve net profits of 959 million, 1.205 billion, and 1.650 billion RMB for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 25.80%, 25.63%, and 36.91% [6][8]. - The current price-to-earnings ratios are estimated at 64.88, 51.65, and 37.72 for the years 2025, 2026, and 2027, indicating a favorable valuation compared to peers [8][10].

Investment Rating - The report assigns a "Buy" rating for the company, Dekang Agriculture [1][14][16] Core Insights - The report emphasizes that the agricultural industry is at a pivotal moment, necessitating a reevaluation of strategies to address emerging challenges and opportunities [4][5] - Dekang is transitioning from a traditional agricultural production company to a modern service-oriented platform, focusing on a "platform + ecosystem" strategy to enhance efficiency and sustainability [10][11][12] - The company aims to create a value-sharing ecosystem that benefits all stakeholders, including farmers and enterprises, by leveraging technology and innovation [11][12][18] Summary by Relevant Sections Industry Overview - The pig farming industry in China is characterized by inefficiency and significant variance in operational performance among companies, with a need for modernization and technological advancement [6][29] - The report highlights a shift in national agricultural policy towards ensuring farmers' rights and fostering enterprise innovation, indicating a supportive environment for companies like Dekang [5][27][28] Company Strategy - Dekang's "platform + ecosystem" strategy is designed to facilitate collaboration across the supply chain, enhancing overall efficiency and profitability [11][12] - The company has invested significantly in technology and innovation, aiming to improve breeding efficiency and product quality, which aligns with national agricultural goals [12][13][18] Financial Projections - The report forecasts that Dekang will serve 3,900 to 5,000 modern farms by 2027, with significant revenue growth projected from service fees [14][16] - Expected net profits before fair value adjustments for biological assets are projected to reach 36 billion, 54 billion, and 76 billion RMB from 2025 to 2027, respectively [14][16] Competitive Position - Dekang is positioned to outperform competitors in terms of profitability, with a projected return on equity (ROE) of 48% in 2024, significantly higher than peers [13][14] - The company’s operational efficiency is underscored by its low fixed asset investment per head, which is expected to enhance its competitive edge in the industry [12][36]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook based on its asset optimization and growth potential [4][6]. Core Views - The company is expected to benefit from a young asset structure and value reassessment driven by asset optimization. The focus on operational efficiency and network expansion is anticipated to enhance revenue and profitability [4][5][8]. Summary by Relevant Sections Financial Performance - The company forecasts revenue of RMB 6,825 million for 2025, with a slight decline of 2.06% year-on-year, followed by a recovery to RMB 7,017 million in 2026 and RMB 7,438 million in 2027. Net profit attributable to shareholders is projected to grow from RMB 1,002 million in 2025 to RMB 1,150 million in 2027, reflecting a compound annual growth rate (CAGR) of 5.32% [4][6]. - The company’s earnings per share (EPS) is expected to increase from RMB 0.45 in 2025 to RMB 0.51 in 2027, with a price-to-earnings (P/E) ratio decreasing from 10.92x to 9.52x over the same period [4][6]. Business Structure - The company primarily operates toll roads, with toll revenue accounting for approximately 63.98% of total revenue in 2024. The construction service segment contributes 33.22%, while real estate sales account for only 1.25% [5][15]. - The company has a total of 808 kilometers of managed highways, with a weighted average remaining toll collection period of 17.04 years, providing ample time for traffic growth and revenue generation [5][42]. Dividend Policy - The company emphasizes shareholder returns, committing to a minimum cash dividend payout ratio of 40% of net profit from 2025 to 2027. The dividend payout ratio was 40.42% in 2023 and is expected to rise to 43.40% in 2024 [5][35]. Market Position - The company benefits from a strategic location in Henan Province, a key transportation hub in China, enhancing its operational advantages and potential for traffic growth [5][36]. - The company is part of the Henan Transportation Investment Group, which holds a significant share of the province's toll road assets, providing a strong backing for its operations and growth prospects [12][57].

Fixed Income - The development of insurance subordinated bonds has gone through three stages, with perpetual bonds being the mainstream issuance type currently [7][8] - As of June 6, 2025, there are 56 insurance companies with 100 outstanding subordinated bonds, totaling a bond balance of 495.41 billion [7] - The active trading volume of insurance subordinated bonds is between that of bank and brokerage subordinated bonds, with a trading volume of 303.38 billion from December 6, 2024, to June 6, 2025 [8][9] Media - The card game industry has evolved through three key phases: the Ultraman card era, the My Little Pony era, and the Nezha and other IP era, showcasing the industry's growth and adaptation [11][12] - The barriers to entry in the card game market are based on first-mover advantages, channel strength, product quality, and IP operation capabilities [12] - The card game market in China is projected to reach 44.6 billion by 2029, indicating significant growth potential [12][13] Machinery/Construction - The demand for underwater situational awareness is urgent, with the need for advanced sonar technology highlighted by recent government initiatives [17][18] - The company has developed an intelligent underwater sound signal processing system, which addresses industry pain points in both military and civilian applications [19] - The expected net profit for the company from 2025 to 2027 is projected to grow significantly, indicating strong potential in the deep-sea technology sector [19] Transportation - Jinjiang Shipping has established itself as a premium shipping company focusing on Northeast Asia and Southeast Asia, with a strong market presence and high customer loyalty [21][22] - The company’s gross profit margin reached 48.81% in the first half of 2023, demonstrating resilience amid market fluctuations [21] - The outlook for the intra-Asian shipping market is optimistic, with expected demand growth supported by stable economic conditions and RCEP agreements [22][23]

Investment Rating - The industry investment rating is "Positive" (maintained) [5][12] Core Viewpoints - The recent military parade on September 3 has increased market attention on the "Deep Sea Technology" strategy, which emphasizes resource security, national defense construction, and blue economy, with situational awareness being a key focus [5] - The government work report has elevated "Deep Sea Technology" to a strategic level, highlighting the need for a comprehensive underwater perception system to address security challenges posed by foreign reconnaissance devices in China's waters [5] - The construction of situational awareness capabilities is deemed essential for development, with sonar equipment being the core component due to the complexities of underwater signal processing [5] Summary by Relevant Sections - **Investment Highlights**: The focus is on the construction of situational awareness capabilities, particularly in underwater signal processing, which faces significant challenges due to environmental noise and target stealth [5] - **Sector Performance**: Key companies to watch include China Marine Defense, Jizhi Co., and Zhongke Haixun, each with unique capabilities in underwater information acquisition, intelligent underwater technology, and sonar systems [5] - **Company Profiles**: - **China Marine Defense**: Engages in underwater information systems and has acquired assets from various military units [5] - **Jizhi Co.**: Collaborated with Zhijiang Laboratory to develop intelligent underwater sound technology, entering a revenue-generating phase [5] - **Zhongke Haixun**: Provides signal processing platforms and has core technologies in sonar systems, capable of offering comprehensive solutions [5]

Investment Rating - The investment rating for the real estate industry is "Positive" (maintained) [4] Core Viewpoints - The report indicates that since September 2024, the central government's clear requirement has been to stabilize the real estate and stock markets. The focus on building quality housing and high-quality residential properties is expected to lead to a development wave in this sector [5][48] - The report suggests that the real estate market is under pressure, with significant declines in investment and new construction areas, but there are also measures being taken to stimulate demand through urban renewal and housing quality improvement initiatives [48][49] Market Performance - The Shanghai Composite Index fell by 0.5%, the Shenzhen Component Index by 1.2%, and the real estate sector (Shenwan) by 1.7% during the week [5][8] - In terms of individual stocks, notable gainers included Tibet City Investment (+10.3%) and Shibei High-tech (+5.9%), while significant losers included ST Zhongdi (-10.5%) and Zhujiang Shares (-9.6%) [5][8] Data Tracking New Housing Transactions - For the week of June 14-20, new housing transactions in 42 key cities totaled 2.38 million square meters, a 12.5% increase from the previous week, but a 12.9% decrease year-on-year [15][19] - Cumulatively, from June 1-20, new housing transactions reached 6 million square meters, a 9.4% increase month-on-month but a 5.4% decrease year-on-year [19] Second-hand Housing Transactions - For the week of June 14-20, second-hand housing transactions in 21 key cities totaled 2.19 million square meters, a 1.4% increase from the previous week, but a 5.7% decrease year-on-year [32][36] - Cumulatively, from June 1-20, second-hand housing transactions reached 5.91 million square meters, a 12.2% increase month-on-month and a 2.0% increase year-on-year [36] Industry News - From January to May 2025, real estate development investment decreased by 10.7% year-on-year, with new construction area down by 22.8% and completed area down by 17.3% [48][49] - The report highlights various local government initiatives aimed at improving housing quality and facilitating urban renewal, including adjustments to public housing policies in cities like Shenzhen and Jiangsu [48][49] Company Announcements - China Resources Land issued up to 3 billion yuan in medium-term notes, with interest rates ranging from 1.8% to 3.0% [51] - Poly Developments received approval for a 5 billion yuan short-term financing bond [51]

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The report emphasizes the importance of underwater technology and positions the company as a potential leader in this field, particularly in sonar technology [8] - The demand for underwater situational awareness is urgent, and the company is well-positioned to benefit from the acceleration of "deep-sea technology" initiatives [8] - The company's products aim to address industry pain points related to weak signal processing in complex marine environments, with applications in both military and civilian sectors [8] Financial Summary - The company's projected revenue for 2025 is 410 million RMB, with a year-on-year growth rate of 52.46% [7] - The forecasted net profit for 2025 is 53 million RMB, representing a significant increase of 179.77% compared to the previous year [7] - The earnings per share (EPS) for 2025 is estimated at 0.48 RMB, with a projected price-to-earnings (P/E) ratio of 76.28 [7] - The company is expected to achieve a return on equity (ROE) of 6.92% in 2025, increasing to 16.39% by 2027 [7][9]

Investment Rating - The report maintains a "Positive" investment rating for the card game industry [4] Core Viewpoints - The evolution of population demographics is enhancing the willingness of the new generation of users to pay for IP, making card games an important form of IP derivative products [4] - The card game market in China is expected to grow significantly, with projections estimating a market size of 44.6 billion yuan by 2029 [6][12] - Key companies to watch include Card Game, Yaoji Technology, Zhejiang Shuju, Aofei Entertainment, Shanghai Film, and Huali Technology [4] Summary by Sections 1. The Three Stages of Card Game Development - **Ultraman Era**: Card Game established industry standards and gained a first-mover advantage by launching Ultraman trading card series in 2018, achieving significant commercialization [6][12] - **My Little Pony Era**: Card Game leveraged its comprehensive product, channel, and marketing capabilities to reduce reliance on top IPs, successfully expanding its user base to include women and adults through live-streaming card unpacking [6][25] - **Nezha and Other IPs Era**: Card Game demonstrated its supply chain capabilities by quickly responding to the market with Nezha-related products, achieving rapid sales growth post the movie's release [6][32] 2. Card Games as a Promising Direction in China's Toy Market - The card game industry is seen as a rapidly growing segment within the broader toy market, with cultural exploration accelerating in China [6][12] - The financialization of the U.S. card market and the cultural foundation of Japan's card market provide insights for China's market development [6][12] 3. Future Focus Areas for Card Game - **Focus Area One**: Identifying the next blockbuster product based on the IP matrix is crucial for sustaining consumer engagement [6][32] - **Focus Area Two**: Exploring new consumer demands in stationery and trendy toys, with early successes in the stationery business [6][32] - **Focus Area Three**: Expanding into overseas markets, with existing collaborations with international toy and game giants [6][32] 4. Analysis of Card Game's IPO Prospectus - Card Game is positioned as a pioneer in the trading card business, with a well-experienced management team and a robust financial analysis indicating high product elasticity [6][41] 5. Related Companies in the Card Game Industry - Companies such as Yaoji Technology, Zhejiang Shuju, Aofei Entertainment, Shanghai Film, and Huali Technology are identified as key players in the card game sector [6][41]