Investment Rating - The report maintains a positive outlook on the commercialization acceleration of AI Agents in the second half of the year and recommends focusing on the value reassessment opportunities brought by MaaS for software companies [1][2]. Core Insights - The AI industry continues to progress, with model iterations and technological advancements benefiting AI Agent applications. The recent upgrade of the DeepSeek-R1 model has exceeded market expectations, leading to increased anticipation for the upcoming DeepSeek-R2 release [2]. - The computing power industry remains highly prosperous, with significant growth in AI server orders, indicating sustainable investment from downstream clients in generative AI. Domestic AI chip capabilities are improving amid strict export controls from the U.S. on Chinese AI chips, laying a foundation for domestic breakthroughs [3]. - The report suggests focusing on the recovery of valuations and new product anticipation within the Apple supply chain, particularly in light of the upcoming WWDC 2025 event [4][7]. - The report highlights the potential regulatory framework for stablecoins in China, which could catalyze related industries [7]. Summary by Sections AI Agent Applications - Continuous model iterations and technological improvements are expected to enhance AI software applications, with a focus on the increased frequency of updates driving customer willingness to pay for services [2]. Computing Power Industry - The computing power sector is experiencing high demand, with AI server orders reaching $12.1 billion, surpassing the total sales of the previous fiscal year. This trend is expected to continue with the acceleration of AI infrastructure development in various regions [3]. Apple Supply Chain - The report emphasizes the importance of the upcoming WWDC 2025 for the Apple supply chain, suggesting that current market conditions present opportunities for valuation recovery and new product launches [4][7]. Stablecoin Regulation - The recent passage of the stablecoin regulatory framework in Hong Kong is anticipated to create a structured environment for the issuance and management of stablecoins in China, potentially benefiting related companies [7].

- The report tracks the weekly performance of quantitative public funds, highlighting that the average excess return for CSI 300 enhanced index funds was 0.35%, with 88.06% of funds achieving positive excess returns[1] - Monthly performance data shows that in May 2025, the CSI 500 enhanced index funds achieved an average excess return of 1.12%, with 98.53% of funds delivering positive excess returns[2] - Year-to-date (YTD) performance indicates that CSI 1000 enhanced index funds achieved an average excess return of 4.01%, with 100% of funds achieving positive excess returns[3]

Investment Rating - The report indicates a positive market sentiment with a recommendation for mid-term positioning in sectors such as autonomous driving, artificial intelligence, and high-end manufacturing, suggesting a favorable outlook for these industries [8][24]. Core Insights - The North Exchange A-shares saw a trading volume of 28.18 billion yuan on May 29, 2025, marking an increase of 4.056 billion yuan from the previous trading day, with the index rising by 2.7% [5][14]. - Among the 266 companies listed on the North Exchange, 246 experienced price increases, while only 19 saw declines, indicating strong market performance [21][22]. - Key stocks that performed well included Sanyou Technology (30.0%), Luchao Information (30.0%), and Xinan Clean (17.0%), while the biggest losers were Tianli Composite (-4.3%) and Jinbo Biological (-3.6%) [21][23]. Summary by Sections Market Review - The North Exchange A-shares had a trading volume of 28.18 billion yuan, with a turnover rate of 6.0%, leading among various sectors [14][17]. - The North Exchange 50 index closed at 1415.84 points, reflecting a 2.7% increase, with the day's trading showing a pattern of high opening and rising prices [8][18]. Important News - The Central Committee and the State Council issued an opinion aimed at enhancing the market-oriented allocation of resource and environmental factors, with goals set for 2027 to improve trading systems for carbon emissions and water rights [6][24]. Key Company Announcements - Zhonghang Taida announced plans for a major shareholder to reduce holdings by 2.25 million shares, representing 1.59% of total equity, due to personal financial needs [7][26]. - Most Nan Technology plans to use up to 80 million yuan of idle funds for cash management, focusing on safe and liquid financial products [7][27]. - Jike Co. intends to utilize up to 250 million yuan of idle funds for cash management to enhance fund efficiency [7][31].

Market Overview - On May 28, the trading volume of North Exchange A-shares reached 24.12 billion yuan, a decrease of 1.25 billion yuan from the previous trading day[13] - The North Exchange 50 Index closed down 1.4% at 1378.23 points, with significant structural differentiation in the market[6] Stock Performance - Among 266 companies listed, 56 rose, 3 remained flat, and 207 fell[21] - The top five gainers were Tianli Composite (16.8%), Xin'an Clean (12.4%), Luqiao Information (8.6%), Jikang Instrument (7.2%), and Dadi Electric (6.8%)[21] - The top five losers were Ruichi Intelligent (-10.3%), Ningxin New Materials (-7.2%), Jilin Carbon Valley (-7.1%), Qifeng Precision (-6.8%), and Caneng Electric (-6.2%)[21] Investment Insights - The market is currently in a phase of adjustment, with a focus on mid-term positioning and defensive strategies[6] - The North Exchange's small and high-growth characteristics make it an aggressive choice during the A-share market's volume repair period, but caution is advised due to potential liquidity risks in small-cap stocks[6] Policy and Future Outlook - Recent policy revisions to the restructuring review rules aim to enhance merger efficiency, providing long-term support for innovative SMEs[6] - Investors are advised to control positions and avoid high-volatility stocks in the short term, while considering low-valuation, high-growth targets in the medium term[6]

Investment Rating - The report does not explicitly provide an investment rating for the industry, but it suggests a balanced allocation strategy focusing on technology growth and policy themes [3][26]. Core Insights - The market is currently experiencing a phase of rapid rotation in themes, with a focus on new consumption and nuclear fusion sectors. The report highlights the performance of specific stocks and sectors, indicating a mixed market sentiment [3][20]. - The electronic information manufacturing industry is expected to see significant advancements, with key processes becoming over 85% numerically controlled by 2027, and a complete data infrastructure by 2030 [20]. - The report emphasizes the importance of monitoring the upcoming policy changes and potential market pressures, particularly in June and July, which may affect stock performance [3]. Summary by Sections Market Review - On May 27, the North Exchange A-share trading volume reached 25.37 billion yuan, an increase of 1.27 billion yuan from the previous trading day, with the index rising by 0.1%. Among 266 companies, 98 saw gains, 2 remained flat, and 166 experienced declines [1][7][17]. - The top five gainers included Huaxi Technology (10.8%), Luheng Technology (9.9%), and Ruqi Intelligent Manufacturing (8.9%), while the top five losers were Zhongke Meiling (-9.1%) and Zhonghang Taida (-8.6%) [1][17]. Important News - The report discusses the government's initiative to enhance new information infrastructure, aiming for significant advancements in electronic information manufacturing by 2027 and 2030 [20]. Key Company Announcements - Wan Yuan Tong announced the lifting of restrictions on 6,200,000 shares, accounting for 4.08% of its total share capital, effective May 30, 2025 [21]. - Shunyu Precision Engineering reported a change in shareholder equity exceeding 1% due to share reductions by a major shareholder [22][23]. - Ge Bi Jia also reported a change in shareholder equity due to stock incentive plan adjustments [24].

Market Overview - On May 23, the North Exchange A-shares trading volume reached CNY 27.18 billion, a decrease of CNY 10.01 billion from the previous trading day, with the index closing down by 1.4%[1] - Among 266 companies listed, 57 rose, 1 remained flat, and 208 declined, indicating a broad market downturn[1] Stock Performance - The top five gainers were: - Chen Guang Medical (15.0%) - Changfu Co. (10.1%) - Senxuan Pharmaceutical (9.7%) - Wangcheng Technology (9.3%) - Haisheng Pharmaceutical (7.9%) [1] - The top five losers were: - Kexin New Materials (-9.0%) - Shengnan Technology (-8.5%) - Guohang Ocean (-7.9%) - Wuxin Tunnel Equipment (-7.3%) - Weimao Electronics (-7.1%) [1] Market Trends - The North Exchange 50 index experienced a 1.4% decline, with a trading volume decrease of 26.9% compared to the previous day[6] - Despite the overall market decline, sectors such as innovative drugs and nuclear fusion showed resilience, attracting investment due to policy and industry trends[6] Investment Strategy - Short-term focus on event-driven opportunities, including nuclear fusion equipment tenders and the industrialization of elder care robots[6] - Long-term investment should concentrate on technology growth sectors, including humanoid robots, third-generation semiconductors, and AI applications, while considering the advantages of specialized enterprises and potential valuation recovery of state-owned enterprises[6] Risks - Potential risks include policy regulatory risks, unexpected changes in North Exchange policies, and intensified industry competition[30]

Market Overview - The average daily trading volume of all A-shares on the Beijing Stock Exchange reached 35.95 billion yuan, a week-on-week increase of 3.6%[13] - The North China 50 index fell by 3.7%, with an average daily turnover rate of 4.6%[14] Sector Performance - The environmental protection sector saw an increase of 6.7%, while transportation (-19.0%), public utilities (-10.5%), and non-ferrous metals (-8.7%) were the top three declining sectors[16] - The top five gaining stocks included Ningxin New Materials (+29.1%), Wuxin Tunnel Equipment (+24.4%), and AVIC Taida (+21.5%) while the top five losing stocks included Qifeng Precision (-23.9%) and Guohang Ocean (-22.1%)[26][28] Policy and Regulatory Developments - The China Securities Regulatory Commission revised the "Major Asset Restructuring Management Measures," introducing a "small and fast" review mechanism to enhance merger efficiency[7] - Eight departments jointly issued measures to support small and micro enterprises in financing, facilitating their transition from the New Third Board to the Beijing Stock Exchange[20] Investment Strategy - The report suggests a defensive approach ahead of the holiday, avoiding high turnover and high valuation stocks, while considering gradual investments in scarce and undervalued assets if the index stabilizes[34] - Mid-term focus should be on technology growth and policy-driven themes, with caution advised regarding liquidity stratification and external liquidity disturbances[34] Risk Factors - Potential risks include regulatory risks, policies falling short of expectations, intensified industry competition, and macroeconomic uncertainties[51]

Valuation Overview - A-shares overall valuation has converged, with the pharmaceutical sector experiencing a counter-cyclical expansion in valuation[1] - The current dynamic PE of the pharmaceutical industry is at the historical 18th percentile, indicating significant room for improvement[1] - The dynamic PE of the chemical pharmaceutical sector has reached the historical 65th percentile, reflecting that current stock prices partially account for economic expectations[1] Market Segment Analysis - The TTM PE of the ChiNext board has contracted less than that of the main board and the Sci-Tech Innovation board[1] - The relative PE (TTM) of computing infrastructure, excluding operators/resource categories, decreased from 4.16x to 4.01x this week[2] - The absolute and relative valuations of major sectors show that consumer discretionary and consumer staples are above historical medians, while TMT and financial services are below[2] Investment Insights - The A-share non-financial ERP has decreased from 1.58% to 1.55%, indicating a decline in the relative attractiveness of equities compared to bonds[2] - The dynamic ERP of key non-financial A-share companies fell from 4.18% to 4.12% this week[2] - Industries such as communication, non-ferrous metals, and public utilities exhibit characteristics of low valuation and high profitability potential[2] Risk Considerations - The strategy views do not represent the entire industry, and valuation levels do not guarantee stock price movements[3] - Future earnings volatility may lead to discrepancies between current valuation levels and "acceptable" states[3]

Investment Rating - The report suggests a focus on underweight stocks in the construction and building materials sector, particularly heavyweight stocks, due to ongoing public fund reforms and expectations of exceeding physical workload this year [3]. Core Insights - The National Development and Reform Commission aims to finalize the "Two Heavy" construction project list by the end of June, emphasizing strategic and forward-looking projects [1]. - Infrastructure investment in April increased by 5.80% year-on-year, while cement production for the first four months of 2025 was 495 million tons, down 2.8% [2]. - The construction index fell by 1.13% during the week of May 19-23, 2025, while the building materials index decreased by 0.91% [9]. Summary by Sections Market Review - The construction index has dropped 4.36% year-to-date, ranking 23rd out of 29 industries, while the building materials index has decreased by 0.54%, ranking 18th [9]. - The highest gain in the construction sector was seen in the landscaping engineering segment, which rose by 4.14% [9]. Special Bonds and Funding Status - New local government special bond issuance amounted to 285.21 billion yuan in May, a month-on-month increase of 78.21% [2][22]. - Cumulative new local government special bond issuance for the year reached 1,475.59 billion yuan, a 62.57% increase compared to the same period in 2024 [22]. Construction High-Frequency Data Tracking - As of May 16, 2025, the cement dispatch rate increased by 2.21 percentage points to 41.51% week-on-week [29]. - The operating rate of cement mills rose by 0.35 percentage points to 42.00% [29]. Cement Industry Weekly Data Tracking - As of May 23, 2025, the national cement price decreased by 2.1% week-on-week but increased by 1.4% year-on-year [36]. - The average cement price across the country was 370.8 yuan per ton, with significant price drops in various regions [36]. Key Company Orders and Valuation - The report highlights significant new contracts for major construction companies, with China Nuclear Engineering signing contracts worth 57.56 billion yuan, a year-on-year increase of 10.80% [2]. - The current price-to-earnings ratios for the construction and building materials sectors are 8.21 and 18.41, respectively, indicating relatively low valuations compared to historical levels [16].

Investment Rating - The report maintains a "Buy" rating for Rongbai Technology (688005.SH) [5] Core Views - Rongbai Technology's ternary material sales reached 120,000 tons in 2024, representing a 20% year-on-year growth, with a global market share exceeding 12%, an increase of 2 percentage points from 2023, maintaining its position as the global leader for four consecutive years [2] - The company has established partnerships with over 40 domestic and international battery and vehicle manufacturers in the solid-state battery sector, achieving stable growth in the shipment of solid-state ternary materials [3] - The company is expected to achieve net profits of 550 million, 786 million, and 1.069 billion yuan for the years 2025 to 2027, reflecting year-on-year growth rates of 85.9%, 42.9%, and 36.1% respectively [3] Financial Summary - Revenue is projected to decline from 22.657 billion yuan in 2023 to 15.088 billion yuan in 2024, before recovering to 17.045 billion yuan in 2025, with a growth rate of 13% [4] - The net profit attributable to the parent company is expected to decrease from 581 million yuan in 2023 to 296 million yuan in 2024, then increase to 550 million yuan in 2025 [4] - Earnings per share (EPS) are forecasted to be 0.77 yuan in 2025, with a projected P/E ratio of 24.5 [4]