Investment Rating - The industry rating is "Recommended" [6] Core Insights - Nike's FY26Q2 performance showed regional revenue changes: North America +9%, EMEA -1%, Greater China -16%, APLA -4%, with Greater China significantly dragging down overall performance due to weak foot traffic, poor new product sell-through rates, and aging inventory [3][16] - The Central Economic Work Conference emphasized expanding domestic demand as a priority, focusing on enhancing the supply of quality goods and services, and promoting investment recovery [4][17] - The report suggests a cautious outlook for FY26Q3, with expected revenue declines in certain regions and a focus on the "Win Now" strategy in Greater China [3][16] Summary by Sections 1. Weekly Insights - Nike's performance in FY26Q2 highlighted a significant decline in Greater China, attributed to weak customer traffic and inventory issues [3][16] - The company is implementing pilot store projects in Greater China to improve sales performance [3][16] 2. Market Review - The SW textile and apparel sector increased by 2.42%, outperforming the Shanghai Composite Index by 1.32% [19] - Key stocks with the highest gains included Yimin Group and Huamao Co., while stocks like Hason and *ST Bosen faced significant declines [19][24] 3. Industry Data Tracking 3.1 Raw Material Data - The China cotton price index rose by 2.96% year-to-date, while wool prices increased by 29.52% since the beginning of the year [34][40] - The USDA forecasts a 0.34% increase in total cotton production for 2025, with a slight decline in demand [46] 3.2 Export Data - Textile and apparel exports from January to November 2025 decreased by 1.9% year-on-year, with a notable decline in apparel exports [54] - The export value of tarpaulins and canopies fell by 21.18% in October 2025 [59] 4. Industry News - Notable developments include the opening of Descente's flagship store in Beijing and the re-entry of Spanish fast fashion brands into the Chinese market [10][4]

Group 1: Liquidity Overview - The liquidity remains stable during the tax period from December 15-19, with overnight rates (R001) maintaining at 1.34-1.35% and 7-day rates (R007) around 1.50%[1] - The central bank injected a net of 200 billion CNY through 6-month reverse repos on December 15, while maintaining regular operations to stabilize funding rates[1] - The average net outflow from the banking system increased to 4.90 trillion CNY, reaching a near six-month high[14] Group 2: Year-End Deposit Rates - The issuance rate for 1-year negotiable certificates of deposit (NCD) rose to 1.66-1.67% in December, but is expected to decline as year-end approaches[2] - The pressure from maturing deposits will ease, with upcoming maturities of 8,686 billion CNY, down from over 10 trillion CNY in previous weeks[6] - The anticipated net payment for government bonds from December 22-26 is projected at 3,666 billion CNY, significantly higher than the previous two weeks[5] Group 3: Market Trends - The 1-month bill rate increased by 3 basis points to 0.04%, while the 3-month rate rose by 4 basis points to 0.49%[4] - The net selling by major banks reached 75 billion CNY during December 15-18, with a cumulative net buying of only 7 billion CNY for the month[4] - The weighted average issuance period for NCDs extended to 6.1 months, indicating a shift in issuance strategy among banks[42]

Group 1: A-share Market Valuation - The current PE (TTM) of the A-share market is 16.26, with a median of 13.54 and a maximum of 30.60 since January 2010[11][15]. - The PE (TTM) for the Shanghai Composite Index is 14.06, while the CSI 300 is at 13.29, indicating a relatively low valuation compared to historical averages[11][15]. - The A-share market's risk premium rate is currently at 0.70%, reflecting a stable investment environment[18]. Group 2: Hong Kong Stock Market Valuation - The Hang Seng Index has a current PE (TTM) of 11.78, with a median of 10.30 and a maximum of 22.67 since January 2010[57][56]. - The Hang Seng Technology Index shows a current PE (TTM) of 23.10, indicating a higher valuation compared to the broader market[63]. - The current valuation of key Hong Kong stocks like Tencent and Alibaba shows a median PE of 35.56 and 22.14, respectively[77]. Group 3: U.S. Stock Market Valuation - The S&P 500 Index has a current PE (TTM) of 28.80, with a median of 21.14 and a maximum of 41.99 since January 2010[82][81]. - The NASDAQ Index shows a current PE (TTM) of 40.84, indicating a high valuation compared to historical data[87]. - The Dow Jones Industrial Average has a current PE (TTM) of 30.16, reflecting a strong market performance[93]. Group 4: Sector Valuation Insights - Non-bank financials, food and beverage, and non-ferrous metals sectors have lower PE ratios, indicating potential undervaluation[25]. - The technology sector, including computing and electronics, shows higher PE ratios, suggesting overvaluation compared to historical norms[25]. - The current PB (LF) for the banking sector is at 0.54, indicating a low valuation relative to book value[28].

1. Report's Industry Investment Rating - No relevant information provided 2. Core View of the Report - The real - estate market shows different trends in new and second - hand housing. New housing has a year - end sales push, while second - hand housing shows stable and slightly increasing trends. The repair elasticity varies in different time periods and city tiers [1][2][3] 3. Summary by Relevant Catalog 3.1 Weekly Data - **New Housing**: In the week of December 12 - 18, the transaction area of new housing in 38 cities reached 3 million and 700 thousand square meters, about 59% of the annual high. After a small decline last week, it rebounded strongly with a 16% week - on - week increase, hitting a new weekly high since October [1]. - **Second - hand Housing**: In the same week, the transaction area of second - hand housing in 15 cities was 2 million and 190 thousand square meters, with a 2% week - on - week increase. Since November, it has shown high - level consolidation, with weekly transactions fluctuating between 2 million and 130 thousand and 2 million and 210 thousand square meters, and the absolute volume remains at 74% of the annual high [1]. - **Year - on - year Comparison**: The year - on - year decline of new housing in 38 cities narrowed by 2 percentage points to 31%, with 12 consecutive weeks of negative growth. The year - on - year decline of second - hand housing in 15 cities converged by 11 percentage points to 23%, with 10 consecutive weeks of negative growth, indicating a faster marginal repair speed of second - hand housing [2]. 3.2 Monthly Data - **November**: According to statistics bureau data, the month - on - month repair of real - estate sales in November was better than that of the same period from 2021 - 2023, but the "quantity for price" feature was significant. Year - on - year, affected by the high base after "924" last year, the sales area and sales volume of commercial housing decreased by 17.3% and 25.1% respectively. The decline in sales area narrowed by 1.5 pct compared with October, while the decline in sales volume expanded by 0.8 pct. Month - on - month, the sales area increased by 9.3%, stronger than the average of the same period from 2021 - 2023 (+8.0%) and last year (+7.1%), but the sales volume only increased by 2.3% month - on - month [3]. - **December (1 - 18)**: The repair elasticity of new housing was better than that of second - hand housing. The year - on - year decline of new housing in 38 cities was - 29%, better than - 35% in November and basically the same as - 27% in October. The second - hand housing market's prosperity declined, with a year - on - year decline of - 30% in 15 cities, a significant expansion compared with - 20% in November [3]. 3.3 First - tier Cities - **New Housing**: The week - on - week transaction volume was flat, ending last week's decline, with the absolute scale at 50% of the annual high. Shenzhen and Guangzhou led the increase with 77% and 27% week - on - week growth respectively, while Beijing and Shanghai faced a decline, with Beijing down 33% and Shanghai down 8% [4]. - **Second - hand Housing**: The week - on - week transaction volume of second - hand housing in Beijing, Shanghai, and Shenzhen was flat, entering a high - level consolidation period. The activity of the three cities was highly consistent, with transaction volumes stable between 74% - 76% of the annual high. Shenzhen and Beijing increased by 5% and 1% respectively, while Shanghai decreased by 3%, showing stronger resilience than new housing [4]. - **Year - on - year Comparison**: Affected by the high base of the same period last year, the year - on - year decline of new housing in first - tier cities was 44%, with the decline expanding by 7 percentage points and 10 consecutive weeks of negative growth. Shanghai performed relatively well with a decline of 11%. The year - on - year decline of second - hand housing narrowed to 27%, and Shanghai also performed relatively better [5]. 3.4 Second - and Third - tier Cities - **Second - tier Cities**: The week - on - week transaction volume of new housing increased by 22%, with the absolute volume restored to 61% of the annual high. Hangzhou and Qingdao increased significantly. The year - on - year decline of new housing narrowed by 1 percentage point to 25%. The second - hand housing market was relatively stable, with the week - on - week volume basically flat for two consecutive weeks, and the year - on - year decline narrowed significantly by 14 percentage points to 28% [6]. - **Third - tier Cities**: The transaction volume of both new and second - hand housing increased from a decline. The new housing transaction volume increased by 23%, reaching 58% of the annual high. The year - on - year decline of new housing narrowed significantly. The second - hand housing (with 4 samples) was particularly outstanding, with a 14% week - on - week increase and the absolute volume restored to 96% of the annual high [6]. 3.5 Housing Price Observation - **70 Cities**: In November, the price of newly built commercial housing in 70 cities improved marginally, with a 0.4% month - on - month decline and the decline narrowing by 0.1 percentage point. The price of second - hand housing declined by 0.7% month - on - month, with the same decline as last month. First - tier second - hand housing prices led the decline, with a 1.1% month - on - month decline. In the year - on - year dimension, the decline of second - hand housing prices in each tier was concentrated between 5.6% - 5.8% [7]. - **First - tier Cities**: Shanghai showed strong resilience in both month - on - and year - on - year dimensions. In contrast, the decline of Beijing, Guangzhou, and Shenzhen expanded [7].

Group 1: Global Market Overview - The Bank of Japan announced an interest rate hike, leading to increased volatility in global markets[1] - The S&P 500 Shiller PE ratio remains high at 40.15, indicating potential for further correction in U.S. tech stocks[1] - Major European indices like DAX and CAC40 are expected to experience further fluctuations due to high price-to-book ratios[1] Group 2: U.S. Market Performance - The S&P 500 index increased by 0.1%, while the Nasdaq rose by 0.48% this week[2] - The Dow Jones Industrial Average fell by 0.67% during the same period[2] - The technology sector remains overvalued, with the TAMAMA technology index PE at 36.54 and the Philadelphia Semiconductor index at 42.28[1] Group 3: Asian Market Insights - The Nikkei 225 index saw a significant decline of 2.61% this week, with expectations of further corrections due to high valuations[2] - The Hang Seng Index and related indices experienced declines of 1.1% to 2.39% this week, indicating market pressure[2] - Emerging markets like the Korean Composite Index and others are likely to face volatility due to economic fundamentals and valuation concerns[1] Group 4: Economic Indicators - Japan's CPI growth rate for November was 2.9%, down from 3% previously, indicating a potential easing of inflationary pressures[4] - The U.S. and Japan's monetary policies are diverging, contributing to market uncertainties[1] - Global geopolitical risks and unexpected economic growth could pose additional threats to market stability[5]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][7]. Core Insights - The company, Yutong Optical, is a leading global provider of optical solutions, particularly in the security lens market, where it has maintained the largest market share for ten consecutive years [1][2]. - The company is expanding into the automotive optical market and has established a solid competitive position through acquisitions and technological advancements [1][2]. - Yutong Optical is also diversifying into new consumption sectors, including machine vision and AR/VR lenses, which are expected to drive future growth [1][3]. Summary by Relevant Sections Company Overview - Yutong Optical was founded in 2011 and went public in September 2019. It is the largest supplier of security lenses globally, with a strong market position in the security sector [1][13]. - The company has established a wholly-owned subsidiary for automotive vision and acquired JiuZhou Optical to enhance its competitiveness in the automotive lens market [1][2]. Business Layout - The company has developed a diversified business model centered around security, automotive optics, smart home applications, machine vision, and emerging optical applications [20][24]. - The product matrix includes a wide range of security lenses that cater to various applications, from consumer monitoring to high-end industry surveillance [2][54]. Financial Analysis - Revenue projections for 2025-2027 are estimated at 36.52 billion, 46.62 billion, and 58.35 billion yuan, representing year-on-year growth rates of 33.1%, 27.7%, and 25.2% respectively [4][8]. - Net profit forecasts for the same period are 2.83 billion, 4.85 billion, and 7.00 billion yuan, with growth rates of 54.1%, 71.3%, and 44.5% respectively [4][8]. - The company's gross margin is expected to improve, reflecting a focus on product structure optimization and increased R&D investment [28]. Security Lens Market - Yutong Optical's security lens segment is characterized by a comprehensive product range that meets diverse market needs, supported by long-term partnerships with major security firms [2][54]. - The company is actively expanding its overseas market presence, with a notable increase in international revenue [57]. Automotive Optical Market - The automotive optical segment is positioned for growth, with the company supplying major automotive manufacturers and developing a complete product matrix for smart driving systems [2][58]. - The demand for automotive cameras is expected to rise as smart driving technology becomes more prevalent [58]. Emerging Business Areas - The company is exploring new consumption markets, including sports cameras and AI glasses, which are anticipated to contribute significantly to revenue growth [3][19]. - Collaborations with leading technology firms in these sectors are expected to enhance product delivery and market penetration [3][42].

Investment Rating - The investment rating for the company is "Buy" [4] Core Insights - The company's core products have successfully been included in the 2025 National Medical Insurance Drug List, which is expected to drive sales growth [1][3] - The clinical data for the PD-1/VEGF bispecific antibody RC148 shows promising efficacy and safety in treating non-small cell lung cancer, indicating a significant clinical advantage [2][4] - The management team is experienced, and the company has a strong R&D capability, with a stable pipeline of clinical indications [8] Summary by Sections Event 1 - Two innovative drugs from the company have been successfully included in the 2025 National Medical Insurance Drug List, with one new indication for 泰爱® (Tai'ai) and three renewed indications for both 泰爱® and 爱地希® (Aidiqi) [1] Event 2 - The clinical research data for RC148 in treating non-small cell lung cancer has been disclosed, showing outstanding clinical efficacy and manageable safety [2] Clinical Data - The clinical trial results for RC148 indicate an objective response rate (ORR) of 61.9% for monotherapy and 66.7% for combination therapy, with a disease control rate (DCR) of 100% and 95.2% respectively [4] Financial Projections - Revenue projections for 2025-2027 are adjusted to 27.52 billion, 33.85 billion, and 44.13 billion yuan, reflecting year-on-year growth rates of 60.95%, 22.97%, and 30.40% respectively [8] - The net profit for the same period is projected to improve significantly, with estimates of -7.63 billion, -3.16 billion, and 3.84 billion yuan [8]

Investment Rating - The industry investment rating is "Recommended" [1] Core Views - The merger of CICC, Dongxing Securities, and Xinda Securities is expected to enhance competitive advantages through regional expansion, customer resource integration, and business diversification [2] - The transaction involves a share swap where CICC will issue approximately 3.096 billion A-shares to the shareholders of Dongxing and Xinda, with a total transaction value of about 114.3 billion yuan, reflecting a 14% premium over the market value prior to the suspension [3][4] - Post-merger, CICC's total assets, revenue, and net profit are projected to reach 1,009.6 billion yuan, 27.4 billion yuan, and 9.5 billion yuan respectively, improving its rankings in the industry [7] Summary by Sections Transaction Overview - The merger involves the integration of Dongxing Securities and Xinda Securities into CICC, leveraging their regional strengths and customer bases [2] - The share swap ratio is set at 1:0.4373 for Dongxing and 1:0.5188 for Xinda, with the total transaction amounting to approximately 114.3 billion yuan [4] Financial Metrics - The swap prices are determined based on the average stock prices over the 20 trading days prior to the pricing date, with CICC's net asset value at 115.5 billion yuan, Dongxing at 29.6 billion yuan, and Xinda at 26.4 billion yuan [3] - The overall transaction price-to-book ratio is 2.29 times, indicating a favorable valuation for the merger [4] Shareholder Structure Changes - After the merger, Central Huijin will hold approximately 1.936 billion shares of CICC, representing 24.44% of the total shares, maintaining its status as the controlling shareholder [5] - The shareholding structure will see significant changes, with the public shareholders' proportion increasing post-merger [6] Strategic Advantages - The merger will expand CICC's network from 245 to 436 branches and increase retail clients from 9.72 million to 14 million, enhancing its market presence [7] - CICC aims to utilize the strengths of the acquired companies in asset management and investment opportunities, particularly in non-performing assets and innovative financial products [7] Market Outlook - The consolidation in the securities industry is expected to stimulate investor interest, with the overall industry price-to-book ratio currently at 1.38 times, indicating potential for strategic investment opportunities [9]

Group 1 - Controlled nuclear fusion is considered a future ideal energy source due to its high energy output compared to nuclear fission, with 1 gram of deuterium-tritium fusion fuel releasing energy equivalent to 11.2 tons of standard coal, which is about four times that of 1 gram of uranium-235 fission [12][13] - The deuterium-tritium reaction is the mainstream application in nuclear fusion, offering advantages such as feasible fuel acquisition, high technical feasibility, and significant energy gain, making it the most viable path for achieving net energy gain and commercial power generation [18][19] - Magnetic confinement is recognized as the most promising method for achieving large-scale controlled nuclear fusion, with superconducting technology being key to future device miniaturization and cost reduction [1][25] Group 2 - The global demand for electricity is increasing, driven by data centers, which currently consume about 415 TWh and are expected to double to approximately 945 TWh by 2030, making controlled nuclear fusion an ideal energy solution [2][3] - The progress in controlled nuclear fusion has shifted from "can it ignite" to "can it operate long-term, stably, and economically," with significant advancements in devices like EAST and ITER laying the groundwork for commercial viability [2][3] - Major domestic projects in China, such as EAST and BEST, are expected to see capital expenditures exceeding 92 billion yuan over the next five years, benefiting local companies involved in the supply chain [4][6] Group 3 - The manufacturing value of midstream equipment in the tokamak devices is significant, with over 50% of the value chain attributed to midstream equipment, including key components like vacuum chambers and superconducting magnets [3][6] - Domestic companies are expected to benefit from the nuclear fusion sector, with investments in upstream materials and midstream equipment manufacturing, including companies like Western Superconducting, Antai Technology, and China Nuclear Power [6][4] - The capital expenditure in China's controlled nuclear fusion sector is projected to maintain around 92 billion yuan from 2026 to 2030, with annual investments exceeding 10 billion yuan [6][4]

Investment Rating - The investment rating for the company is "Buy" [4] Core Insights - The company has successfully included three core products in the national medical insurance directory, enhancing accessibility for patients [1][3] - A collaboration with Crescent Biopharma aims to develop and commercialize new cancer treatment methods, focusing on ADC and dual-specific antibodies [2][7] - The company is expected to see significant revenue growth due to the successful inclusion of its products in the national insurance scheme and its strong R&D capabilities [8] Summary by Sections Event 1 - The company's three core products, including ADC Sacituzumab Tirumotecan, have been included in the national medical insurance directory, with two indications for the ADC product [1] - This inclusion is expected to improve patient access and benefit a larger clinical population [3] Event 2 - The partnership with Crescent Biopharma will facilitate the development of SKB105 and CR-001, targeting ITGB6 and PD-1xVEGF respectively [2] - The collaboration includes rights for independent development of combination therapies, enhancing the company's pipeline [2][7] Analyst Commentary - The successful inclusion of the ADC product in the insurance directory showcases its clinical potential and market viability [3] - The company is actively expanding its international clinical collaborations, which is expected to bolster cash flow and explore new treatment combinations [7] Financial Projections - Revenue forecasts for 2025-2027 are adjusted to 21.75 billion, 29.12 billion, and 49.23 billion respectively, with year-on-year growth rates of 12.52%, 33.89%, and 69.06% [8][10] - The company is projected to achieve profitability by 2027, with a net profit of 790.85 million [10][12]