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]

Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected investment return that exceeds the market benchmark by over 20% in the next 6-12 months [6]. Core Views - The company achieved a revenue of 1.082 billion yuan in 2024, representing a year-on-year growth of 4%, but reported a net loss attributable to shareholders of 68 million yuan, with losses expanding by 250% compared to the previous year [6][2]. - In Q1 2025, the company generated a revenue of 223 million yuan, a decrease of 12% year-on-year, with a net loss of 15 million yuan, marking a 150% increase in losses compared to the same period last year [6][2]. - The company focuses on the Ethernet switch chip sector, with high-end flagship chips being delivered in small batches in 2024, targeting large-scale data centers and cloud service demands [2][1]. - The company has a comprehensive product lineup in Ethernet switch chips, with capabilities reaching up to 800G and switching capacities of 12.8Tbps and 25.6Tbps [1]. Financial Projections - Revenue projections for 2025, 2026, and 2027 are 1.353 billion yuan, 1.776 billion yuan, and 2.195 billion yuan, respectively, with expected growth rates of 25.1%, 31.3%, and 23.6% [2][4]. - The company plans to increase its R&D investment to 428 million yuan in 2024, a 36% increase year-on-year, accounting for 39.61% of its revenue [2][4]. - The number of R&D personnel reached 409 by the end of 2024, an increase of 38 from the previous year, representing 76.31% of the total workforce [2][4].

Market Overview - On May 22, the North Exchange A-shares recorded a trading volume of 37.19 billion yuan, a decrease of 3.92 billion yuan from the previous trading day, with the index closing down by 6.1% [1][5] - Among the 266 companies listed on the North Exchange, only 21 saw an increase in stock prices, while 245 experienced declines, indicating a significant market adjustment [5][23] Key News - The People's Bank of China and other regulatory bodies have indicated support for top-tier private equity firms in issuing bonds, which may enhance financing opportunities for small and micro enterprises [4][26] - The Ministry of Science and Technology plans to refine the technology finance system to implement policy measures effectively [26] Investment Strategy - The report suggests focusing on high-quality stocks that are experiencing a rebound after significant declines in the short term, while also monitoring policy-driven mergers and acquisitions, as well as themes related to nuclear fusion and elder care robotics [5] - For medium to long-term investments, the emphasis is on technology growth sectors such as humanoid robots, semiconductors, and specialized enterprises with stable cash flows, while also identifying undervalued high-growth stocks [5] Company Announcements - Naconoer plans to use up to 200 million yuan of idle fundraising for cash management, targeting an annualized return of 1.75%-1.80% [27] - Yingtai Bio announced the lifting of restrictions on 6,002,500 shares, representing 0.49% of its total share capital, effective May 27, 2025 [28]

Investment Rating - The report suggests a positive outlook for the storage industry, indicating a historical opportunity for domestic storage manufacturers due to supply contraction and technological upgrades [10]. Core Insights - Consumer storage products are expected to see price increases, potentially leading the storage market into a new prosperity cycle [5]. - The server market is poised to benefit first from the AI industry, with demand from supply chain manufacturers likely to rise as edge AI applications materialize [6]. - The report emphasizes the importance of monitoring channel inventory and price changes, given the cyclical nature of the storage industry [7]. Summary by Sections Supply and Demand Dynamics - Overseas manufacturers announced a 10%-15% reduction in low-end production capacity by the end of 2024, with channel inventory gradually normalizing since 2025 [8]. - High-end application areas remain in short supply, while internet companies continue to expand production, sustaining demand [8]. - The price of storage chips has seen a narrowing decline since Q1 2025, with some low-end categories already showing signs of price increases [8]. AI and Market Growth - AI server shipments are expected to account for over 14% of global server shipments in 2024, driving a nearly 70% increase in overall server market value [8]. - The penetration rate of DDR5 is projected to reach over 70% in 2024, significantly benefiting the demand for memory interface chips and related components [8]. Investment Recommendations - For storage modules, the report recommends focusing on companies like Demingli and Jiangbolong in enterprise storage, and Tianshan Electronics for module business progress [11]. - In the storage chip sector, it suggests monitoring domestic leaders like Zhaoyi Innovation and Beijing Junzheng, as well as Puran's trend towards high-end terminal products [12]. - For memory interface and supporting chips, attention is drawn to opportunities in companies like Lanke Technology and Jucheng Shares amid the storage industry’s technological transformation [12]. Market Trends and Projections - The global storage market is projected to reach approximately $172 billion in 2024, with a CAGR of about 9.5% expected to grow to $354.9 billion by 2032 [19]. - The Chinese storage market is anticipated to approach $77 billion in 2024, accounting for about 45% of the global market [19]. - The report highlights that the domestic storage manufacturers are likely to accelerate their growth due to the ongoing domestic demand for high-end products as overseas competitors withdraw from the low-end market [14].