Economic Development Goals - The 20th Central Committee's Fourth Plenary Session outlined seven major development goals for the 14th Five-Year Plan, focusing on high-quality development and technological self-reliance[2] - Emphasis on building a modern industrial system and enhancing domestic demand to stimulate the internal economic cycle[2] Manufacturing and Innovation - The plan aims to promote intelligent, green, and integrated transformation in manufacturing, with a focus on emerging sectors like humanoid robots and brain-computer interfaces[2] - The strategy includes targeted measures against low-price and disorderly competition to establish a new high-quality development framework[2] Foreign Trade and Investment - The session highlighted the importance of expanding high-level foreign openness and enhancing trade and investment cooperation, particularly in the context of ongoing US-China trade tensions[2] - ASEAN has become China's largest trading partner, indicating a shift towards higher-end manufacturing in the global value chain[2] Employment and Social Welfare - The plan aims to improve living standards and optimize income distribution, addressing structural employment issues, particularly among youth with a 17.7% unemployment rate[2] - Focus on enhancing job supply in key sectors like manufacturing, digital economy, and new energy, while improving vocational training systems[2] Investment Recommendations - Companies with core technologies in smart manufacturing, industrial software, and green low-carbon processes are recommended for investment[2] - Emphasis on firms engaged in localized production along the Belt and Road Initiative, particularly in the new energy vehicle sector[2]

Group 1: Overall Economic Outlook - The Fourth Plenary Session aligns with market expectations, emphasizing technology transfer to industry, reform through openness, and improving people's livelihoods while maintaining national security[4] - The economic goal of achieving a per capita GDP at the level of moderately developed countries by 2035 remains consistent with the long-term vision[6] Group 2: Industrial Policy - Industrial policy has shifted from focusing on technological breakthroughs to emphasizing the implementation of industry, now prioritized as the first order of business[4] - The focus is on integrating technological innovation with industrial innovation to form scalable industrial chains, moving beyond merely overcoming technical barriers[7] Group 3: Foreign Trade and Investment - High-level openness has been elevated from the ninth to the fifth priority, reflecting a significant shift in focus amid ongoing trade tensions with the U.S.[4] - The emphasis on sharing opportunities and strengthening cooperation with non-U.S. countries is a response to recent trade disputes[8] Group 4: Social Policies - Social policies have been prioritized, moving from the tenth to the ninth position, highlighting the importance of improving income distribution and facilitating social mobility[4] - Key measures include breaking down barriers to labor mobility and increasing the share of labor factors in income distribution to boost consumer spending[10] Group 5: Reform Focus - The reform agenda emphasizes the establishment of a unified national market and the marketization of factor allocation, addressing issues of fair competition and market pricing[11] - The absence of direct references to "anti-involution" suggests a focus on structural reforms rather than immediate measures[11] Group 6: National Security - National security has become a focal point, with repeated mentions in the session, particularly regarding the stability of the manufacturing sector and the importance of technological self-reliance[12] - The commitment to maintaining a reasonable proportion of manufacturing and enhancing support for original innovation and key technologies is expected to continue[12] Group 7: Fiscal Policy - Unlike previous sessions, there was no mention of fiscal reform, indicating a potentially cautious approach to fiscal policy adjustments moving forward[13] - The need for further clarification on macroeconomic governance systems suggests that fiscal reforms may still be on the agenda but are not prioritized at this time[13] Group 8: Risk Factors - Potential risks include domestic policy effectiveness falling short of expectations, discrepancies in the implementation of the 15th Five-Year Plan, and unexpected geopolitical changes[14]

Investment Rating - The report assigns a "Buy" rating for the company for the first time [2][70]. Core Insights - The company, backed by China State Construction Group, has a solid foundation and demonstrates resilience through diversified business operations [7][11]. - The company has maintained a strong market position despite industry challenges, with a focus on high-tier cities and a robust financial structure [7][31]. - The commercial operations segment shows significant resilience, with steady growth in rental income and occupancy rates [7][41]. Summary by Sections Company Overview - The company has over 40 years of experience in the real estate sector and has expanded its operations across more than 80 cities in China and internationally [11]. - It operates under the umbrella of a state-owned enterprise, which provides substantial resources and support for its growth [14]. Sales and Financial Performance - In 2024, the company reported total revenue of 185.15 billion yuan, a decrease of 8.58% year-on-year, primarily due to pressures in the real estate development sector [21]. - The company's net profit attributable to shareholders for 2024 was 15.64 billion yuan, down 38.95% from the previous year [26]. - The company’s sales performance has shown resilience, with a market share increase from 2.03% in 2021 to 3.21% in 2024 [31]. Investment Strategy - The company focuses on acquiring land in core cities, with 73% of its new land purchases in first-tier cities in 2025 [33]. - The total land reserve as of mid-2025 was 26.93 million square meters, with 25.3% located in first-tier cities, providing a solid foundation for future sales [33]. Commercial Operations - The commercial operations segment generated 71.3 billion yuan in revenue in 2024, reflecting a year-on-year growth of 12.11% [41]. - The company’s shopping centers have shown strong performance, with rental income increasing by 5.4% in the first half of 2025 [55]. - The company has received approval for its first commercial REIT, marking a significant milestone in its asset management capabilities [45]. Profit Forecast and Valuation - The company is expected to achieve net profits of 15.71 billion yuan, 16.67 billion yuan, and 17.49 billion yuan for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 8.89, 8.38, and 7.99 [6][70]. - The report anticipates total revenue growth of 2.8%, 2.0%, and 1.0% for the years 2025, 2026, and 2027, respectively [65].

Report Industry Investment Rating No information provided in the report. Core Viewpoints - Listed insurance companies have implemented new accounting standards (IFRS 17 and IFRS 9) since 2023, while non - listed ones will implement them in 2026. It is estimated that after the remaining insurance companies implement the new standards in 2026, the re - classification scale of financial assets of affected insurance companies may account for about 20% [3][62]. - After the implementation of the new standards, more insurance assets may be classified into the FVTPL category, increasing the profit volatility of insurance companies. Insurance companies are more cautious about bank capital bonds and increase the allocation of ultra - long bonds. The proportion of insurance funds invested in bonds is rising [3][5][63]. Summary According to the Table of Contents 1. New Accounting Standards Gradually Implemented - IFRS 9 adjusts the classification of financial assets from "four - category" to "three - category": FVTPL, FVOCI, and AC. More assets may be classified into FVTPL, making insurance company profits more volatile. Insurance companies have an incentive to allocate more assets to AC or FVOCI [9][10]. - IFRS 17 changes the discount rate for traditional insurance reserves. Insurance companies can use the OCI option to reduce profit fluctuations, which may lead to significant differences in net profit under the old and new standards [12]. - From the operating data of insurance companies that have implemented the new standards in advance, there is an increase in net profit and a decrease in net assets [16]. - Among bond - issuing insurance companies, the financial investment of those that have implemented the new standards accounted for 74.4% of the total as of the end of 2024. It is estimated that the proportion of financial asset re - classification of the remaining insurance companies in 2026 may be about 20% [3][62]. 2. Changes in Insurance Institution Behavior 2.1 Insurance Asset Allocation Observation - As of the end of Q2 2025, the balance of insurance funds in use was 36.23 trillion yuan, with life insurance companies accounting for 90% [23]. - The proportion of bonds in the asset allocation of life and property insurance is increasing. As of the end of Q2 2025, the bond proportion of life insurance increased from 41% to 52%, with a balance of 16.9 trillion yuan; that of property insurance increased from 21% to 40%, with a balance of 0.95 trillion yuan [25]. - The investment proportion of life and property insurance in stocks is relatively stable, but the growth rate has accelerated since Q1 last year. In Q2 this year, the cumulative year - on - year growth rates of stock investment were 47.9% and 42.8% respectively [31]. 2.2 Insurance Secondary Market Observation 2.2.1 Bank - to - Bank - As of the end of August 2025, the total bond custody scale of insurance institutions in CCDC and SHCHE was 5033.311 billion yuan. Interest - rate bonds accounted for 77.9%, with local bonds accounting for 49.3% [34]. - Insurance has been increasing its allocation of local bonds. As of the end of August this year, the net increase in local bond custody was 3776 billion yuan, approaching last year's level. Insurance has been reducing its holdings of commercial bank bonds since March last year [39][58]. 2.2.2 Exchange - As of the end of September, the scale of corporate bonds held by insurance in SSE and SZSE was 931.8 billion yuan and 181.6 billion yuan respectively. After Q2 this year, the allocation of credit bonds by insurance has increased [52]. 3. Understanding the Impact of the New Standards - Insurance institutions will further increase their demand for ultra - long bonds due to stable premium income growth, the "Second - Generation Solvency" regulations guiding the passive allocation of fixed - income assets, and increased liability - side volatility under the new insurance contract standards [55]. - Under the new financial tool accounting standards, insurance will be more cautious about bank secondary and perpetual bonds that do not pass SPPI and are included in FVTPL [58]. 4. Summary - In 2026, after the remaining insurance companies implement the new accounting standards, the re - classification scale of financial assets of affected insurance companies may account for about 20% [3][62]. - After the implementation of the new standards, insurance company profits may become more volatile. Insurance will be more cautious about bank capital bonds and increase the allocation of ultra - long bonds. The proportion of bonds in insurance asset allocation is rising [5][63].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company reported a slight decline in revenue of 0.04% year-on-year for the first three quarters of 2025, with a net profit decrease of 18.29% [8] - The company is a leading player in the pig and yellow feather chicken breeding industry, with a focus on quality improvement and sustainable development [8] - The forecasted net profit for the company is expected to be 7.30 billion, 9.72 billion, and 12.27 billion yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 16.7, 12.5, and 9.9 [8] Financial Performance Summary - For 2023A, the company reported a revenue of 89,902 million yuan, with a growth rate of 7.4% [7] - The net profit for 2023A was -6,390 million yuan, reflecting a net profit growth rate of -220.8% [7] - The company’s earnings per share (EPS) for 2023A was -0.97 yuan [7] - The company’s total assets as of 2023A were 92,895 million yuan, with a debt-to-equity ratio of 159.1% [9] Operational Highlights - The company’s pig output increased by 28.3% year-on-year to 27.67 million heads in the first three quarters of 2025 [8] - The average selling price of pork in the third quarter was approximately 13.9 yuan/kg, down 28.8% year-on-year [8] - The company’s capital expenditure has decreased, and it continues to improve its balance sheet, with a debt ratio of 49.41% as of Q3 2025, down 3.73 percentage points from the beginning of the year [8] Market Trends - The demand for yellow feather chicken has improved, leading to a rebound in chicken prices, which helped the chicken business turn profitable in the third quarter [8] - The company sold 94.80 million yellow chickens in the first three quarters of 2025, an increase of 8.7% year-on-year [8]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company is expected to continue improving profitability due to product price recovery and structural advantages in its product lineup [8] - The company reported a revenue of 13.904 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 19.53%, and a net profit of 2.568 billion yuan, up 67.51% year-on-year [8] - The company anticipates achieving net profits of 3.431 billion yuan, 4.079 billion yuan, and 4.710 billion yuan for 2025, 2026, and 2027 respectively, with growth rates of 40%, 19%, and 16% [8] Financial Performance - Revenue for 2023 is projected at 14.876 billion yuan, with a growth rate of -26.3%, followed by a recovery to 15.856 billion yuan in 2024, and an estimated 19.491 billion yuan in 2025, reflecting a growth rate of 22.9% [7][9] - The company's gross margin for Q3 2025 was 32.8%, an increase of 4.6 percentage points year-on-year, while the net margin was 18.4%, up 3.7 percentage points year-on-year [8] - Earnings per share (EPS) are expected to be 0.76 yuan for 2023, 0.61 yuan for 2024, and projected to rise to 0.86 yuan for 2025 [7][9] Market Position and Product Performance - The company has seen strong sales growth in electronic cloth products, with Q3 2025 sales reaching 294 million meters, a historical high and a year-on-year increase of 72.5% [8] - The company’s product structure continues to show advantages, particularly in wind power and thermoplastic short-cut products, which are maintaining good growth trends [8] - Despite a slight decline in product prices, the company’s overall sales volume for glass fiber yarn and products increased by 10% year-on-year in Q3 2025 [8]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The third quarter showed business recovery, with promising growth expected in the blood glucose management segment. The company has successfully scaled production of insulin injection pens and is advancing its proprietary "Meihao Pen" technology. Additionally, the company’s CGM component products have entered mass production [7][6] - The company’s revenue for Q3 2025 reached 462 million yuan, a year-on-year increase of 2.56%, while the net profit attributable to shareholders was 93.9 million yuan, up 5.89% year-on-year. For the first three quarters of 2025, revenue totaled 1.194 billion yuan, a 3.28% increase, but net profit fell by 19.25% [7] - The company is expanding its international presence with a production base in Malaysia, which is expected to enhance its capacity and service overseas clients [7] Financial Performance Summary - Revenue projections for 2025-2027 are 1.800 billion yuan, 2.122 billion yuan, and 2.500 billion yuan respectively, with corresponding net profits of 379 million yuan, 449 million yuan, and 539 million yuan [7][6] - The company’s earnings per share (EPS) for 2025 is estimated at 0.67 yuan, with a price-to-earnings (PE) ratio of 33.6 [6][8] - The return on equity (ROE) is projected to be 9.9% in 2025, increasing to 11.4% by 2027 [6][8]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Insights - The company reported significant growth in Q3 2025, with a revenue increase of 66.31% year-on-year and a net profit increase of 132.74% year-on-year, driven by high-margin new products and expanding market demand [7] - The company is focusing on high-value new products, particularly in the AI and robotics sectors, which have shown substantial sales growth [7] - The company maintains stable R&D investment while improving operational efficiency, leading to a decrease in R&D expense ratio [7] Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 422 million yuan, a year-on-year increase of 46.47%, and a net profit of 10.32 million yuan, a year-on-year increase of 132.00% [7] - The projected revenues for 2025, 2026, and 2027 are 604 million yuan, 950 million yuan, and 1.327 billion yuan, respectively, with corresponding net profits of 22 million yuan, 111 million yuan, and 213 million yuan [7] - The company's comprehensive gross margin reached 34.34% in Q3 2025, an increase of 10.79 percentage points year-on-year [7] Market Position and Strategy - The company has successfully launched high-margin new products, with sales from wireless charging and signal chain product lines reaching 299 million yuan, a year-on-year increase of 111.01% [7] - The company is actively expanding into emerging markets, focusing on AI edge, robotics, and automotive products, which are now in mass production with several well-known brand clients [7] - The company’s operational efficiency has improved, with a significant reduction in expense ratios, indicating effective internal management [7]

Investment Rating - The industry investment rating is "Positive" (maintained) [2] Core Viewpoints - The retail sales total for September 2025 reached 41,971 billion yuan, with a nominal year-on-year increase of 3%, aligning with expectations; retail sales of consumer goods excluding automobiles increased by 3.2% [5][13] - For the first nine months of 2025, the total retail sales amounted to 365,877 billion yuan, with a nominal year-on-year growth of 4.5%, and a 4.9% increase for consumer goods excluding automobiles [5][13] - Online retail sales for the first nine months grew by 9.8%, with September's online retail sales at 13,002 billion yuan, reflecting an 11.4% year-on-year increase [26] Summary by Sections Overall Retail Data - In September, the retail sales of consumer goods totaled 41,971 billion yuan, with a nominal year-on-year increase of 3% [5][13] - The year-to-date retail sales from January to September reached 365,877 billion yuan, with a nominal year-on-year growth of 4.5% [5][13] Retail Data for Above Designated Size - In September, the retail sales for above designated size reached 17,776 billion yuan, with a year-on-year increase of 2.3% [14] - The retail sales for above designated size in goods increased by 2.7%, while the catering sector experienced a decline of 1.6% [14] Online Retail Data - The online retail sales for the first nine months totaled 112,830 billion yuan, with a cumulative year-on-year growth of 9.8% [26] - The online retail sales in September were 13,002 billion yuan, reflecting an 11.4% year-on-year increase [26]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has accelerated resource integration by acquiring a 38.45% stake in Huazhixiao, positioning itself as the second-largest shareholder, which is expected to enhance its multi-brand strategy in the cosmetics sector [8] - The company is focusing on multi-track new product incubation, with significant launches in skincare and makeup, which are driving brand growth and market presence [8] - The company plans to issue overseas listed shares (H shares) and list on the Hong Kong Stock Exchange, which is anticipated to improve liquidity [8] - The forecasted net profit for 2025-2027 is projected to be 1.776 billion, 1.963 billion, and 2.162 billion RMB respectively, with corresponding PE ratios of 17.3, 15.7, and 14.2 [8] Financial Performance Summary - Revenue is expected to grow from 8,905 million RMB in 2023 to 14,055 million RMB in 2027, with a revenue growth rate of 39.5% in 2023, tapering to 8.0% by 2027 [7][9] - The net profit is projected to increase from 1,194 million RMB in 2023 to 2,162 million RMB in 2027, with a net profit growth rate of 46.1% in 2023, declining to 10.1% by 2027 [7][9] - The company's EPS is expected to rise from 3.01 RMB in 2023 to 5.46 RMB in 2027, indicating a strong earnings growth trajectory [7][9] Market Performance - The company's stock has shown a performance of -21% over the last 12 months, compared to the -5% to 20% range of the CSI 300 index [4]