Investment Rating - The report recommends investment in the electric power equipment sector, highlighting specific companies for potential growth opportunities [1][2][4]. Core Insights - Lithium battery material prices continue to rise, with domestic lithium hexafluorophosphate averaging 79,000 CNY per ton, up 0.95 million CNY, a 13.67% increase month-on-month [1]. - The domestic energy storage sector shows strong growth, with new installations in September reaching 3.08 GW/9.17 GWh, a year-on-year increase of 205%/171% [2]. - The report emphasizes the ongoing expansion of ultra-high voltage (UHV) planning and the detailed consumption of renewable energy [2][4]. Summary by Sections Lithium Battery Materials - Domestic lithium hexafluorophosphate prices are at 79,000 CNY/ton, up 13.67% month-on-month, while export prices are at 86,000 CNY/ton, up 14.67% [1]. - Recommended companies include Shangtai Technology, Xinwangda, and Haopeng Technology, with additional attention to ZhiJian Electronics and Wanrun New Energy [1]. Energy Storage - New energy storage installations in September totaled 3.08 GW/9.17 GWh, reflecting a year-on-year increase of 205%/171% and a month-on-month increase of 8.45%/11.97% [2]. - Key companies recommended for investment include CATL, Yiwei Lithium Energy, and Sungrow Power [2]. Ultra-High Voltage and Renewable Energy - The "Qinggui" DC project has entered the feasibility study phase, indicating progress in UHV infrastructure [2]. - The report notes the successful cold test of the "Linglong No. 1" small modular reactor, marking a significant milestone in China's nuclear innovation [2]. Photovoltaic Sector - The National Development and Reform Commission has introduced a 20% subsidy for energy-saving and carbon reduction projects, benefiting the photovoltaic industry [4]. - Recommended companies in the photovoltaic sector include GCL Technology, Tongwei Co., and Aiko Solar [4]. Electric Vehicles - In September, domestic new energy vehicle sales reached 1.604 million units, a year-on-year increase of 24.6% [21]. - The penetration rate of new energy vehicles reached 49.7%, with significant growth in both passenger and commercial vehicle segments [22][27]. Market Dynamics - The report highlights the competitive landscape in the lithium battery supply chain, with rising prices for cobalt and lithium materials [36][39]. - The ongoing development of solid-state batteries is noted, with advancements expected to enhance vehicle range significantly [51]. Conclusion - The electric power equipment sector is poised for growth, driven by rising material prices, strong energy storage demand, and supportive government policies [1][2][4].

1. Report Industry Investment Rating There is no information provided in the report regarding the industry investment rating. 2. Core Viewpoints of the Report - The slowdown of deposit relocation does not mean it has ended. Further data observation is needed as the YoY growth rate of non - bank deposits remains at a relatively high level, and there are seasonal disturbances. Asset relocation may continue due to factors such as the high economic base and trade frictions in Q4 [2][14] - The bond market is likely to remain weakly volatile. A defensive approach is recommended, with control over the duration level, and seizing allocation and trading opportunities after adjustments [3][15] 3. Summary by Relevant Catalogs 3.1 Review Summary and Bond Market Outlook - This week, the bond market showed a "first decline then rise" trend. The 10Y and 30Y Treasury bond rates changed by +0.4bp and -3bp respectively. Market sentiment was affected by factors such as US - China negotiation signals, stock market trends, and economic data [10] - Deposit relocation accelerated in July and August but slowed down in September. It is still too early to conclude that it has ended [11][14] - The bond market is expected to be weakly volatile. It is recommended to focus on defense, control the duration, and choose to allocate certificates of deposit and short - term interest - rate bonds [15] 3.2 Bond Market Review 3.2.1 Fundamentals - The central bank had a net withdrawal this week, and the capital interest rate increased. Next week, the maturity volume of reverse repurchases is less than that of the previous week [16] - The R001 and DR001 increased by 5bp and 1bp respectively compared to October 11th. The 3M certificate of deposit issuance rate first rose, then fell, and then rose again [18] 3.2.2 Secondary Market Trends - Bond yields first rose and then fell. Except for the 7Y, 20Y, and 30Y Treasury bonds, the yields of other key - term Treasury bonds increased. Most of the term spreads of Treasury bonds narrowed [26] - The spread between new and old 10Y Treasury bonds first widened and then narrowed, the spread of 10Y China Development Bank bonds widened negatively, and the spread of 30Y Treasury bonds narrowed [29][30] 3.2.3 Bond Market Sentiment - The median duration of the full - sample bond funds slightly increased. The turnover rate of ultra - long bonds increased, and the 30Y - 10Y Treasury bond spread narrowed rapidly. The inter - bank leverage ratio rose to 107.6%, and the exchange leverage ratio decreased to 122.4%. The implied tax rate of 10 - year China Development Bank bonds slightly narrowed [33] 3.2.4 Bond Supply - This week, the net financing of interest - rate bonds decreased. Next week, the issuance scale of Treasury bonds will increase, and the 10Y Treasury bond 250016.IB will be re - issued. The issuance scale of local government bonds will also increase [48][51] - The net financing of certificates of deposit increased this week, and the average issuance rate rose to 1.63% [53] 3.3 Economic Data - In September, the import and export growth rates significantly rebounded, and prices generally recovered. The YoY decline of the freight rate index slowed down in October, and industrial production improved marginally [59][60] - The YoY growth rate of non - bank deposits declined in September, and the M1 growth rate increased [60] 3.4 Overseas Bond Market - The release of key US inflation data was postponed due to the government "shutdown." The expectation of a Fed rate cut in October has increased again, mainly due to the weak employment market [69] - US bonds rose, and most emerging markets had more gains than losses [70] 3.5 Major Asset Performance - The Shanghai Gold Index performed the best, followed by Chinese - funded US dollar bonds, Chinese bonds, the US dollar, convertible bonds, Shanghai Copper, rebar, the CSI 300 Index, live pigs, the CSI 1000 Index, and crude oil [74] 3.6 Policy Review - On October 17th, multiple policies were introduced, including promoting logistics cost reduction, expanding green trade, adjusting the Hainan duty - free shopping policy, and more. These policies aim to support economic development and stabilize market expectations [77][82]

Core Conclusions - The overall valuation of A-shares has contracted this week, with the banking sector leading the gains. The previous dominance of the technology growth sector led to a continuous outflow of funds from the banking sector, resulting in a significant correction. Currently, the banking sector, which has defensive attributes, is experiencing a recovery phase. The overall PB (LF) of the banking industry is at the historical 22.8 percentile, indicating substantial room for recovery [1][8]. Valuation Overview - The overall PE (TTM) of A-shares decreased from 22.47 times last week to 22.00 times this week, while the PB (LF) fell from 1.81 times to 1.77 times [10]. - The overall dynamic PE of key A-share companies dropped from 15.19 times to 14.93 times [14]. A-Share Valuation Details - The PE (TTM) of the main board decreased from 17.90 times to 17.71 times, and the PB (LF) fell from 1.51 times to 1.49 times [17][18]. - The PE (TTM) of the ChiNext board decreased from 97.70 times to 75.51 times, and the PB (LF) dropped from 4.38 times to 4.15 times [19][20]. - The PE (TTM) of the Sci-Tech Innovation board decreased from 258.35 times to 246.87 times, and the PB (LF) fell from 5.46 times to 5.14 times [21][22]. Relative Valuation Expansion - The relative PE (TTM) of computing power infrastructure, excluding operators/resources, decreased from 5.41 times to 5.09 times, and the relative PB (LF) fell from 5.04 times to 4.74 times [23][25]. Industry Valuation Levels - From a static PE (TTM) perspective, industries such as consumer discretionary, midstream manufacturing, consumer staples, cyclical, and midstream materials have absolute and relative valuations above the historical median, with consumer discretionary and midstream manufacturing exceeding the historical 90th percentile. Conversely, resource and essential consumer sectors have absolute and relative valuations below the historical median, with services and essential consumer sectors below the historical 10th percentile [27][28]. - In terms of PB (LF), resource, TMT, and cyclical industries have absolute and relative valuations above the historical median, while midstream materials, financial services, services, consumer staples, and essential consumer sectors have absolute and relative valuations below the historical median, with essential consumer sectors below the historical 10th percentile [28]. Dynamic Valuation Analysis - From a dynamic PE perspective, industries such as consumer discretionary, midstream manufacturing, and cyclical sectors have absolute and relative valuations above the historical median, with consumer discretionary exceeding the historical 90th percentile. Essential consumer sectors have both absolute and relative valuations below the historical median, with essential consumer relative valuations below the historical 10th percentile [36]. Comparative Analysis of Odds and Winning Rates - Industries such as oil and petrochemicals, agriculture, forestry, animal husbandry, fishery, telecommunications, and public utilities exhibit characteristics of low valuation and high profitability [58]. - Industries like building materials, electrical equipment, basic chemicals, and media show both low valuations and high performance growth [62]. ERP and Equity-Debt Yield Spread - The non-financial ERP of A-shares increased from 0.81% last week to 0.92% this week, while the equity-debt yield spread improved from -0.21% to -0.06% [63]. - The dynamic ERP of key non-financial A-share companies rose from 2.77% to 2.96% [68].

- The report tracks the weekly performance of quantitative funds, showing that the average excess return of CSI 500 index-enhanced funds was 0.79%, with 94.37% of funds achieving positive excess returns during the week[1][9] - Monthly performance data indicates that CSI 500 index-enhanced funds achieved an average excess return of 1.26%, with 92.96% of funds recording positive excess returns as of October 17, 2025[2][9] - Year-to-date performance reveals that CSI 1000 index-enhanced funds delivered an average excess return of 7.11%, with 89.13% of funds achieving positive excess returns[3][9] - The report includes scatter plots illustrating the absolute and excess performance of quantitative funds over the past year, highlighting the distribution of returns across different fund categories[13][19][15] - The cumulative net value trends of various index-enhanced fund portfolios are presented, showing the performance of CSI 300, CSI 500, CSI 1000, and A500 index-enhanced funds over the year[20][21][22]

Investment Rating - The report does not explicitly state an investment rating for the industry, but it highlights structural opportunities in sectors such as domestic substitution, semiconductors, energy equipment, and high-end manufacturing [3][24]. Core Insights - The market experienced a slight adjustment with a trading volume of 17.75 billion yuan on October 16, 2025, reflecting a decrease of 0.51 billion yuan from the previous trading day. The North Exchange 50 Index closed at 1488.71, down 1.30%, with a PE_TTM of 69.99 times. The specialized and innovative index closed at 2557.39, down 2.11% [1][7]. - Among 278 companies listed on the North Exchange, 42 saw an increase in stock price, while 233 experienced a decline. The top five gainers included Changjiang Nengke (up 254.0%) and Hongyuan Co. (up 7.3%), while the top five losers included Luqiao Information (down 11.5%) and Wantong Hydraulic (down 9.7%) [1][14]. - The report emphasizes the strategic importance of domestic substitution and energy security, particularly with the recent listing of Changjiang Nengke, a leader in energy equipment with a focus on the Belt and Road Initiative [3][18]. Summary by Sections Market Review - On October 16, 2025, the North Exchange A-share trading volume reached 17.75 billion yuan, a decrease of 0.51 billion yuan from the previous day. The North Exchange 50 Index closed at 1488.71, down 1.30%, with a PE_TTM of 69.99 times. The specialized and innovative index closed at 2557.39, down 2.11% [1][7]. - Out of 278 companies, 42 increased, 4 remained flat, and 233 decreased in stock price. The top gainers were Changjiang Nengke (up 254.0%) and Hongyuan Co. (up 7.3%), while the top losers included Luqiao Information (down 11.5%) and Wantong Hydraulic (down 9.7%) [1][14]. Important News - The Ministry of Industry and Information Technology has initiated a project to promote the construction of all-optical computing networks, aiming for a latency of less than 1 millisecond between medium and large computing centers by 2027 [2][17]. - The Beijing Securities Regulatory Bureau encourages more quality technology companies to list on the North Exchange, aiming to enhance the efficiency of regulatory support for eligible unprofitable enterprises [2][18]. Key Company Announcements - Tongli Heavy Industry announced that its shareholder plans to increase its stake by up to 1.5 million shares, currently holding 76,941,479 shares, representing 16.6351% [2][19]. - Lechuang Technology received a patent for a mechanical calibration method based on a laser rangefinder [2][20]. - Minshida plans to use up to 90 million yuan of idle funds for wealth management products [2][21].

Investment Rating - The report maintains a "Buy" rating for the company [4][2][9] Core Insights - The company reported a significant Q3 performance exceeding market expectations, with a revenue of 7.23 billion yuan, a year-on-year increase of 28.71%, and a net profit of 9.51 billion yuan, up 66.49% [1][4] - The growth in Q3 was primarily driven by the performance of Jilong Copper and potassium chloride businesses, despite the suspension of lithium carbonate production for over two months [1][4] - The lithium carbonate business resumed production in early October [1] Financial Performance Summary - For the first three quarters of 2025, the company achieved a revenue of 24.01 billion yuan, a 3.35% increase year-on-year, and a net profit of 27.51 billion yuan, up 47.26% [1][4] - The company expects EPS for 2025 to be 2.19 yuan, with projected PE ratios of 26, 18, and 15 for 2025, 2026, and 2027 respectively [2][4] - Key financial metrics for 2025 include a projected revenue of 33.71 billion yuan and a net profit of 34.39 billion yuan, reflecting a growth rate of 33.3% [2][8]

Economic Growth Outlook - The "14th Five-Year Plan" is concluding this year, with the "15th Five-Year Plan" expected to maintain an annual growth target around 5%[1] - The average GDP growth during the "14th Five-Year Plan" was 5.5%, and if 5% is achieved in 2025, the average growth for this period will be 5.4%[1] - The contribution of domestic demand to economic growth during the "14th Five-Year Plan" was 87%, down from 95.7% in the "13th Five-Year Plan" period[2] Domestic Demand and Consumption - Final consumption contributed 59.6% to economic growth, up from 49% in the "13th Five-Year Plan" period[2] - Capital formation's contribution was 27.4%, down from 46.7% in the previous plan[2] - To expand consumption, stable employment and income growth are essential, alongside improvements in social security systems[2] Investment and Innovation - There is significant room for investment as China's per capita capital stock remains low compared to developed economies[3] - The focus during the "15th Five-Year Plan" will be on infrastructure, public safety, and technology innovation[3] - Enhancing total factor productivity is crucial for achieving the targeted 5% economic growth, with technology innovation being a core driver[3] Environmental and Trade Policies - China aims to peak carbon emissions before 2030, with non-fossil energy consumption expected to reach 19.8% by 2024, exceeding the "14th Five-Year Plan" target of 20%[7] - The trade surplus as a percentage of GDP has increased during the "14th Five-Year Plan," and efforts will continue to balance imports and exports in the "15th Five-Year Plan"[7]

Core Conclusions - The report indicates that the North Exchange has shown a significant underperformance compared to the Shanghai and Shenzhen markets over the past month, suggesting potential for a rebound [1][5] - There are signs of a gradual shift in market style, with recommendations to monitor the increasing trading volume for potential rebound opportunities [1][5] Domestic Market Indices - The closing values and percentage changes of major domestic indices are provided, with the Shanghai Composite Index at 3,916.23 (+0.10%) and the Shenzhen Component Index at 13,086.41 (-0.25%) [2] Market Review - On October 15, the North Exchange A-shares had a trading volume of 17.8 billion yuan, a decrease of 2.886 billion yuan from the previous trading day, with the North Exchange 50 Index closing at 1,508.31 (+1.62%) and a PE_TTM of 70.85 times [3] - Among 278 companies listed on the North Exchange, 213 saw an increase in stock price, while 58 experienced a decline [3] News Summary - As of September 2025, the total social financing scale was 437.08 trillion yuan, reflecting a year-on-year growth of 8.7%, with the balance of RMB loans to the real economy at 267.03 trillion yuan, up 6.4% year-on-year [3] - The National Development and Reform Commission plans to establish 28 million charging facilities by the end of 2027, aiming to meet the charging needs of over 80 million electric vehicles [4] Investment Recommendations - The North Exchange is showing a strong upward trend with a shrinking volume, particularly in the technology sector, with notable performances in the pharmaceutical and electric equipment sectors [5] - The report highlights that the North Exchange 50 Index has outperformed the CSI 300 and the Sci-Tech 50 indices, indicating a recovery in market sentiment [5] - Key market drivers include reasonable liquidity, a weakening dollar index alleviating capital outflow pressures, and upcoming industry events [5]

Investment Rating - The report indicates a positive outlook for the North Exchange market, suggesting a potential rebound due to recent underperformance compared to other markets [3][4]. Core Insights - The North Exchange A-share trading volume reached 17.8 billion yuan on October 15, 2025, a decrease of 2.886 billion yuan from the previous trading day, with the North Exchange 50 Index closing at 1508.31, up 1.62% [1][7]. - The report highlights that 213 out of 278 companies listed on the North Exchange saw an increase in stock prices, indicating a recovering market sentiment [1][14]. - Key sectors showing strength include technology, pharmaceuticals, and electric equipment, with the innovative drug sector benefiting from the upcoming ESMO conference and the charging pile sector supported by a new government policy [3][18]. Summary by Sections Market Review - The North Exchange 50 Index outperformed the Shanghai and Shenzhen 300 indices but slightly lagged behind the ChiNext Index, indicating a recovery in market sentiment [3][12]. - The report notes a significant increase in social financing, with the total social financing scale reaching 437.08 trillion yuan by the end of September 2025, a year-on-year growth of 8.7% [1][17]. Important News - The National Development and Reform Commission plans to establish 28 million charging facilities nationwide by the end of 2027, aiming to double the charging service capacity [2][18]. - The report emphasizes the positive impact of recent financial data, suggesting that a moderately loose monetary policy will continue to support the real economy [17]. Key Company Announcements - Development Technology announced the use of 500 million yuan of idle fundraising for cash management [19]. - Kexin New Materials disclosed a reduction of 1.72 million shares by a major shareholder, accounting for 2% of total equity [20]. - Nengzhiguang plans to use up to 80 million yuan of idle funds for cash management [21].

Group 1: Company Overview - The report on China Resources Beverage (02460.HK) indicates that the company is expected to achieve revenues of 11.2 billion, 12.5 billion, and 13.4 billion CNY for the years 2025 to 2027, with corresponding net profits of 1.3 billion, 1.6 billion, and 1.8 billion CNY, respectively, leading to a PE ratio of 19, 15, and 14 times [1][6][8] - The packaging drinking water market in 2023 is projected to reach 215 billion CNY, growing at a CAGR of 7.1% from 2018 to 2023, indicating a strong demand for essential products [6][7] - China Resources Beverage holds a market share of 32.7% in the packaging water sector, positioning it as a leading player in a highly competitive market [6][7] Group 2: Financial Performance - In the first half of 2025, the company's revenue from packaged drinking water and beverage products was 5.25 billion and 955 million CNY, accounting for 85% and 15% of total revenue, respectively, with expectations for margin growth due to increased self-production and capacity utilization [7][8] - The report forecasts that the company will maintain a strong growth trajectory, with revenues projected to grow by 23.2%, 19.7%, and 21.0% from 2025 to 2027, and net profits expected to increase by 21.9%, 24.8%, and 22.7% during the same period [4][19] Group 3: Market Strategy - The company is focusing on national expansion and channel refinement, with significant growth potential outside its home region [8] - The report highlights the company's strong association with sports branding and its efforts to diversify marketing strategies [8] - The transition towards a platform-based business model is expected to enhance long-term revenue growth potential in the beverage sector [8][19] Group 4: Industry Insights - The macroeconomic analysis indicates that the financial environment is supportive, with social financing growth and government bond issuance providing a backdrop for stable growth in the beverage industry [2][11] - Inflation data shows a narrowing decline in CPI and a stabilization in PPI, suggesting a favorable economic climate for consumer goods, including beverages [3][14]