Investment Rating - The report assigns a "Buy" rating to the company, Weigao Blood Purification [5] Core Views - Weigao Blood Purification is a leader in the domestic blood purification field, with a comprehensive product matrix that includes blood dialysis devices, dialysis machines, and peritoneal dialysis solutions. The company has shown steady performance, with projected revenue and net profit CAGR of 8.1% and 10.9% from 2020 to 2024, respectively [1][3][5] - The blood dialysis products contribute significantly to the company's revenue, with the core product, blood dialysis器, expected to account for 51.0% of total revenue in 2024 [1][5] - The blood purification industry in China is experiencing stable growth, with a market size CAGR of 5.67% from 2019 to 2023, and an expected CAGR of 21.52% from 2023 to 2027 [2][3] Summary by Relevant Sections Company Overview - Weigao Blood Purification has established itself as a leading player in the blood purification equipment sector, continuously enhancing its product offerings. The company has developed a full product line, including blood dialysis devices, dialysis machines, and peritoneal dialysis solutions [1][19] - The company has a stable and concentrated shareholding structure, with Weigao Group holding 41.75% of the shares as of June 30, 2025 [26][29] Industry Analysis - The demand for blood dialysis treatment is increasing due to the rapid growth in the number of ESRD patients and the enhancement of residents' medical payment capabilities. The number of patients receiving blood and peritoneal dialysis in China increased from 57,900 and 9,500 in 2018 to 91,700 and 15,300 in 2023, respectively [2][3] - The blood purification market is expected to expand significantly, driven by both demand and supply factors, including the continuous improvement of product offerings by domestic manufacturers [2][3] Company Advantages - Weigao Blood Purification has a strong product and research advantage, with a market share of 32.5% in blood dialysis器, 24.6% in blood dialysis machines, and 31.8% in blood dialysis管路 as of 2023, solidifying its leading position [3][12] - The company is actively expanding its overseas market presence, with overseas revenue growth of 97.5%, 54.1%, and 64.0% in 2023, 2024, and the first half of 2025, respectively [12][14] Financial Forecast and Investment Recommendations - The company is expected to achieve revenues of 36.88 billion, 40.34 billion, and 43.70 billion yuan in 2025, 2026, and 2027, respectively, with net profits of 4.52 billion, 4.99 billion, and 5.51 billion yuan [14][15] - The report highlights the potential for growth in the peritoneal dialysis liquid segment, with projected revenue growth of 48.1% in 2024 [12][15]

Investment Rating - The report suggests a structural market outlook for the North Exchange, with a focus on sectors benefiting from policy support and strong growth potential, such as robotics, commercial aerospace, artificial intelligence, and smart driving [3]. Core Insights - The North Exchange A-shares trading volume reached 19.08 billion yuan on December 30, 2025, an increase of 610 million yuan from the previous trading day, with the North Exchange 50 Index closing at 1450.64, down 0.40% [7][3]. - The report highlights the upcoming listing of Hengtong Light, a national-level specialized and innovative company in the optical communication sector, which is expected to attract market attention due to its strong performance and applications in AI data centers [3]. - The report emphasizes the importance of structural opportunities in the market, driven by policy dividends, expectations of new capital inflows, and the supply of quality new stocks [3]. Summary by Sections Market Review - On December 30, 2025, the North Exchange A-shares trading volume was 19.08 billion yuan, with 287 companies listed, of which 106 rose, 6 remained flat, and 175 fell [7][16]. - The top five gainers included Tianming Technology (30.0%), Fengguang Precision (17.6%), and Chunguang Intelligent (11.0%), while the top five losers included *ST Guandao (-29.5%) and Tianli Composite (-11.7%) [16][17]. Important News - The Ministry of Industry and Information Technology and three other departments issued a plan for the digital transformation of the automotive industry, aiming to enhance the maturity level of intelligent manufacturing capabilities by 2027 [18]. - Several eVTOL products are expected to obtain certification in 2026, indicating a burgeoning low-altitude economy market [19]. Key Company Announcements - Ainanju plans to reduce its shareholding by up to 1,471,700 shares, accounting for 1.1309% of the total share capital [22]. - Qilu Huaxin announced the lifting of restrictions on 1,352,000 shares, representing 0.97% of the total share capital, effective January 8, 2026 [20].

Group 1: Strategy and Economic Outlook - The report emphasizes that the appreciation of the RMB is a significant opportunity for prosperity in 2026, driven by strong industrial capabilities and export competitiveness [1][6][11] - It predicts that the RMB exchange rate will break previous highs of 6.8 and 6.3, marking a return to a long-term appreciation cycle [6][7] - The report highlights a positive feedback loop where RMB appreciation will lead to increased capital inflows and improved cash flow for businesses, setting the stage for economic recovery [8][10] Group 2: Digital Currency Development - The People's Bank of China has announced a new digital RMB system set to launch on January 1, 2026, which will transition from M0 to M1, allowing banks to pay interest on digital RMB wallet balances [2][13][14] - The dual-layer operational framework aims for a unified management system across the country, enhancing the efficiency of the financial system [15] - The digital RMB initiative is expected to impact the banking and fintech sectors positively, with potential increases in demand for deposits and more precise loan disbursement [16] Group 3: Company-Specific Updates - HeYue-B (2256.HK) has received approval for the commercial launch of its product, which is expected to generate significant revenue growth from 2025 to 2027, with projected revenues of 612.1 million, 678.8 million, and 627.2 million respectively [3][18] - DiA Co., Ltd. (301177.SZ) is focusing on enhancing its brand and expanding its product categories, with expected EPS growth from 0.34 to 0.55 yuan from 2025 to 2027, despite facing industry challenges [4][21][22]

Group 1 - The report indicates that China is entering a period of prosperity similar to Japan in 1978, driven by high industrial value added and export ratios, along with continued trade surpluses and wage growth [1][11] - The cash flow statements of the real economy in China have been damaged from 2022 to 2024 due to the Fed's interest rate hikes and a decline in real estate prices, leading to capital outflows and reduced cash flow [2][12] - The resumption of the Fed's interest rate cuts is expected to reverse the outflow of cross-border capital, thereby repairing the cash flow statements of enterprises and households [3][13] Group 2 - The report emphasizes the necessity of debt restructuring in China, drawing parallels with Japan's experience in the 1990s, where failure to act led to prolonged economic stagnation [4][14] - The potential for the Fed's quantitative easing (QE) to provide the necessary liquidity for China's central bank to undertake debt restructuring is highlighted, which could alleviate external constraints on the yuan [4][14] - The year 2026 is projected to mark the beginning of a new prosperity phase for China's economy, with a cyclical shift expected in manufacturing and consumption sectors [6][15] Group 3 - The report recommends a selection of stocks for January 2026, including Huafeng Aluminum, Zijin Mining, and TCL Technology, among others, indicating a focus on sectors poised for growth [9][10] - The automotive sector is highlighted, with Great Wall Motors and Leap Motor being noted for their strategic positioning in high-end and global markets [32][38] - In the chemical sector, Dongfang Tower is recognized for its growth potential driven by increasing potassium and phosphorus production [41][43]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong expectation for future returns exceeding the market benchmark by over 20% within the next 6-12 months [5][10]. Core Insights - The approval of the CSF-1R inhibitor, Beijiemai® (pimitinib), by the NMPA marks a significant milestone as it is the first systemic treatment for tenosynovial giant cell tumor (TGCT) in China and the first independently developed drug in this category [1][5]. - The clinical trial application for the KRAS G12D inhibitor, ABSK141, has also been approved, with an open-label I/II phase study aimed at evaluating its safety and efficacy in patients with advanced solid tumors carrying the KRAS G12D mutation [1]. - Preliminary data from the Phase II clinical study of the oral PD-L1 inhibitor, ABSK043, in combination with the EGFR inhibitor, furmonertinib, for treating non-small cell lung cancer (NSCLC) shows good safety and tolerability [2]. Financial Projections - Revenue forecasts for the company are as follows: 2025 revenue is projected at 612.1 million, 2026 at 678.8 million, and 2027 at 627.2 million, reflecting growth rates of 21.5%, 10.9%, and -7.6% respectively [4][9]. - The net profit attributable to the parent company is expected to reach 82.2 million in 2025, 133.8 million in 2026, and 98.4 million in 2027, with significant growth rates of 190.5% and 62.7% for 2025 and 2026 respectively [4][9]. - The earnings per share (EPS) is projected to be 0.12 in 2025, 0.20 in 2026, and 0.14 in 2027, indicating a positive trend in profitability [4][9].

Group 1: Company Overview - The report focuses on 康宁杰瑞生物-B (9966.HK), which specializes in the development, production, and commercialization of innovative biopharmaceuticals in the oncology field, leveraging various core technology platforms [4][6] - The company has developed a differentiated pipeline that includes single-domain antibodies, bispecific antibodies, and antibody-drug conjugates (ADCs), showcasing international competitiveness [4][5] Group 2: Product Pipeline and Commercialization - The commercialization of 安尼妥单抗 injection is imminent, targeting 2L+HER2+GC treatment and providing better clinical options for 1L/newly diagnosed HER2+ breast cancer patients [4][5] - The first listing application for 安尼妥单抗 for HER2+ gastric cancer has been accepted by NMPA, with expectations for approval within 2026, marking the beginning of a commercialization phase [4][5] - Multiple ongoing clinical trials for various indications, including 1L HER2+ breast cancer and HER2+ gastric cancer, indicate significant potential for blockbuster products [4][5] Group 3: Financial Projections - Revenue forecasts for 康宁杰瑞 are projected at 432 million, 484 million, and 596 million yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of -32.5%, 12.1%, and 23.0% [6] - The current price-to-sales (PS) ratios are estimated at 20.6x, 18.4x, and 14.9x for the respective years, indicating substantial upside potential due to effective drug commercialization and clinical data disclosures [6] Group 4: Industry Overview - The report highlights a positive macroeconomic environment for the non-ferrous metals industry, with significant price increases in metal commodities driven by supply constraints and favorable economic indicators [7][10] - The U.S. GDP for Q3 exceeded expectations, with a year-on-year growth rate of 4.3%, supporting consumer spending despite inflation and employment concerns [7][8] - The industrial added value for large-scale industries in China is expected to grow by 5.9% in 2025, indicating a robust manufacturing sector [9]

Group 1: Yancoal Energy (兖矿能源) - The company is expected to achieve net profits of 9.448 billion, 12.019 billion, and 14.171 billion yuan for the years 2025-2027, with corresponding EPS of 0.94, 1.20, and 1.41 yuan, reflecting a year-on-year growth of -39.61%, 27.21%, and 17.91% respectively [1][5][6] - The target price for the company is set at 16.27 yuan per share, with a "Buy" rating assigned based on the DDM valuation method [1][5] - The coal market is anticipated to maintain a stable price range of 700-800 yuan per ton from 2025 to 2027, despite concerns of oversupply [5][6] Group 2: Aiko Co., Ltd. (爱旭股份) - The company is projected to incur losses in 2025, with net profits expected to be -5.82 billion, 1.153 billion, and 2.266 billion yuan for 2025-2027, showing a significant recovery in 2026 and 2027 with growth rates of 89.1%, 298.1%, and 96.6% respectively [2][8][9] - The company is focusing on its ABC technology, which is expected to lead to a turnaround in performance, with a projected EPS of -0.27, 0.54, and 1.07 yuan for the same period [2][9] - Aiko's order backlog has increased by over 30% in Q3, indicating strong downstream demand [9] Group 3: Stable Medical (稳健医疗) - The company is focusing on dual business segments: medical and consumer, targeting high-value products such as advanced dressings and surgical consumables [11][12] - Revenue for the first three quarters of 2025 reached 7.897 billion yuan, with a year-on-year growth of 30.10%, and net profit of 732 million yuan, up 32.36% [12][13] - The company aims to maintain high-quality growth through global expansion and strategic planning, with projected EPS of 1.78, 2.13, and 2.44 yuan for 2025-2027 [12][13] Group 4: Home Appliances Industry - The white goods sector is experiencing stable production, with a focus on enhancing value through configuration [15][16] - The production of air conditioners, refrigerators, and washing machines is expected to show varying growth rates, with air conditioners up by 11.0% and refrigerators by 3.6% year-on-year [16] - Companies like Haier, Midea, and Gree are highlighted as key players benefiting from market dynamics and overseas expansion [15][20]

Group 1 - The report highlights the cyclical nature of the Kondratiev wave, indicating that during the Kondratiev downturn, countries that are catching up often experience periods of prosperity. China is currently in a similar position to Japan in the late 1970s, with strong industrial output and export capabilities contributing to national wealth and domestic consumption recovery [1][10]. - The report notes that from 2022 to 2024, China's real sector has faced significant challenges, including cash flow and balance sheet deterioration due to aggressive interest rate hikes by the Federal Reserve, leading to capital outflows and a decline in real estate prices, which have negatively impacted both corporate and household balance sheets [2][17]. - The report suggests that the resumption of interest rate cuts by the Federal Reserve will facilitate the return of cross-border capital to China, thereby improving the cash flow situation for both enterprises and households [3][26]. Group 2 - The report emphasizes the necessity of debt restructuring in China, drawing parallels with Japan's experience in the 1990s, where failure to act decisively led to prolonged economic stagnation. In contrast, China's rapid debt restructuring in the late 1990s laid the groundwork for future economic growth [4][35]. - It is indicated that the upcoming quantitative easing (QE) by the Federal Reserve could provide the necessary liquidity for China's central bank to implement debt restructuring policies without risking currency depreciation or further capital outflows [4][44]. - The report anticipates that by 2026, China will enter a new phase of prosperity, with a cyclical shift in manufacturing and consumption, suggesting a favorable environment for investments in sectors such as non-ferrous metals, consumer goods, and high-end manufacturing [5][48]. Group 3 - The report provides a detailed industry allocation strategy for 2026, recommending a focus on sectors that are expected to benefit from the recovery of national wealth and improved consumer sentiment, including non-ferrous metals, consumer goods, and high-end manufacturing [5][48]. - It highlights that the return of cross-border capital and the anticipated recovery in consumer spending will drive demand in sectors such as food and beverage, tourism, and export-oriented industries [5][48]. - The report also notes that the current economic environment presents a unique opportunity for investors to capitalize on the cyclical recovery in various industries, particularly those with competitive advantages in exports and domestic consumption [5][48].

Global and A-share Market Overview - The A-share market experienced an overall increase last week, with the CSI 500 index showing the largest gain of 4.03% [12] - The Hang Seng Index in the Hong Kong market rose by 0.50% [12] - The performance of ETFs tracking the new energy sector was notably strong [12] ETF New Issuance Statistics - A total of 18 stock ETFs were reported in the A-share market last week, with 8 new stock ETFs established [17][19] - In the US market, 5 equity ETFs were newly established, including 2 active ETFs [17][23] Fund Flow in A-share Market - The top 10 ETFs with net inflows were primarily those tracking the CSI A500 index, while the top 10 with net outflows included ETFs related to the CSI 300 index, military industry, and TMT sectors [2][24] - The CSI A500 ETF saw a net inflow of approximately 106.75 million yuan, making it the leading ETF in terms of net inflow [28] - Conversely, the CSI 300 ETF experienced a net outflow of 34.08 million yuan [25] Fund Flow in US Market - In the US market, resource management-themed ETFs had the highest net inflows, while multi-tech themed ETFs saw the largest net outflows [3] - A total net outflow of 1.10 million USD was recorded for ETFs investing in A-shares and Hong Kong stocks [3] ETF Strategy Performance - The RRG ETF rotation strategy yielded a return of 3.84%, outperforming the CSI Equal Weight and CSI 300 indices by 1.66% and 1.89% respectively [4] - The 50% base + intraday momentum strategy showed varying returns across different ETFs, with the CSI 1000 ETF achieving a return of 2.05% [4]

Investment Rating - The investment rating for the company is "Buy" [4][9] Core Views - The company reported a revenue of 3.151 billion yuan in Q3 2025, representing a year-on-year increase of 15.2% but a quarter-on-quarter decrease of 26.9%. The net profit attributable to shareholders was -295 million yuan, marking a shift from profit to loss compared to the previous quarter. Cumulatively, the revenue for the first three quarters reached 11.597 billion yuan, a year-on-year growth of 46.9%, with a net profit of -532 million yuan [1][4] - The company is focused on technological innovation, leading the N-type technology wave with its ABC technology. This technology has achieved a conversion efficiency of 24.4% for its second-generation N-type ABC modules, maintaining the top position in global commercialized production efficiency for 29 consecutive months [2] - Despite seasonal fluctuations in Q3 shipments, the company's contract liabilities increased by over 30% to 1.187 billion yuan, indicating strong downstream demand and providing solid support for future shipments. Looking ahead to 2026, the company expects improved shipment volume and profitability due to the upcoming peak demand season and the release of higher efficiency ABC module products [2] Financial Summary - Revenue projections for 2025-2027 are as follows: 15.92 billion yuan in 2025, 24.7 billion yuan in 2026, and 35.641 billion yuan in 2027, with growth rates of 42.7%, 55.2%, and 44.3% respectively [3][8] - The net profit attributable to shareholders is projected to be -582 million yuan in 2025, 1.153 billion yuan in 2026, and 2.266 billion yuan in 2027, with growth rates of 89.1%, 298.1%, and 96.6% respectively [3][8] - Earnings per share (EPS) are expected to be -0.27 yuan in 2025, 0.54 yuan in 2026, and 1.07 yuan in 2027 [3][8]