Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 5.50 [3]. Core Views - The company reported revenue growth of 11.6% year-on-year to HKD 25.90 billion and a net profit increase of 14.3% to HKD 3.51 billion for the fiscal year 2024/25, indicating stable growth in its core business segments [1][6]. - The company maintains a high dividend payout ratio of over 80%, which is attractive to investors [1]. - The focus on fashion functional technology apparel and continuous improvement in channel management are expected to drive revenue growth in the future [1][6]. Revenue and Profit Forecast - For FY26, the company expects revenue growth of approximately 10% for its main brand, Bosideng, and around 20% for the Snow Flying brand, driven by innovative products and an extended Spring Festival peak season [2][6]. - The company anticipates a revenue of HKD 28.47 billion for FY26, with a year-on-year growth of 9.91% [9]. Margin and Efficiency - The gross margin for FY25 decreased by 2.3 percentage points to 57.3%, primarily due to structural adjustments in business segments [4]. - Despite the margin pressure, operating profit margin improved by 0.3 percentage points to 19.2% due to enhanced operational efficiency and reduced distribution and administrative expenses [4]. ESG Performance - The company has achieved an ESG rating upgrade from A to AA by MSCI, positioning it as a leader in the textile and apparel industry in terms of sustainability [5]. - The company has implemented a comprehensive ESG strategy focusing on sustainability across its entire value chain [5]. Valuation Metrics - The company is projected to have a PE ratio of 13.9x for FY26, reflecting its operational efficiency and leading ESG development [6]. - The estimated EPS for FY26 is projected at RMB 0.36, with a dividend yield of 5.74% [9].

Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of RMB 10.51 [7][6]. Core Views - The company reported a revenue of RMB 1.776 billion for H1 2025, a year-on-year decrease of 13.75%, and a net profit attributable to shareholders of RMB 95.39 million, down 39.54% year-on-year, primarily due to exchange rate losses affecting profit margins [1][6]. - The company is transitioning from a traditional design institute to a "think tank-type technology enterprise," focusing on emerging growth areas such as digitalization, urban lifelines, low-altitude economy, and multimodal transport [1][2]. - Emerging businesses have shown significant growth, with areas like urban lifelines, multimodal transport, low-altitude economy, lightweight detection, green low-carbon initiatives, and road materials achieving over 100% growth [2][6]. Summary by Sections Financial Performance - For H1 2025, the overall gross margin increased by 1.93 percentage points to 31.87%, while the engineering consulting business revenue was RMB 1.714 billion, down 7.82% year-on-year, with a gross margin of 32.36% [2][3]. - The company experienced a significant increase in financial expenses, totaling RMB 45.68 million, primarily due to exchange losses of RMB 41.59 million, compared to a gain of RMB 14.86 million in the same period last year [3][4]. - Operating cash flow improved year-on-year, with a net cash outflow of RMB 690 million, which was a reduction of RMB 33 million compared to the previous year [4]. Business Development - The company is deepening its low-altitude industry ecosystem layout and has participated in the development of provincial standards for low-altitude take-off and landing sites and airspace designation [5]. - The company has developed a comprehensive low-altitude economic product system, including core platforms for airspace service management, low-altitude regulatory services, and AI-based comprehensive inspection [5]. Profit Forecast and Valuation - The profit forecast for 2025-2027 has been adjusted downwards, with net profits projected at RMB 211 million, RMB 227 million, and RMB 239 million, reflecting a decrease of 15.67%, 16.43%, and 17.06% respectively [6][11]. - The company is assigned a PE ratio of 63x for 2025, with an updated target price of RMB 10.51, which corresponds to a 53x PE ratio for the same year [6][12].

Investment Rating - The report maintains a "Buy" rating for the company [6][4]. Core Views - The company achieved a revenue of 58.8 billion RMB in 2025H1, representing a year-over-year increase of 12.5%, and a net profit attributable to shareholders of 2.64 billion RMB, up 24.2% year-over-year [1][2]. - The growth in profitability is primarily driven by gains from pig futures hedging and strong growth in overseas feed business, with domestic aquaculture and pig feed businesses showing signs of recovery [1][2]. - The report anticipates continued domestic and international growth in the feed business, leading to an upward revision of the target price to 66.4 RMB, reflecting a 22x PE valuation for 2025 [4][6]. Summary by Sections Financial Performance - In 2025H1, the company's feed external sales increased by 26% year-over-year to 13.65 million tons, with significant growth in aquaculture feed (16%), pig feed (43%), and poultry feed (24%) [2]. - The overseas feed business maintained a high growth rate of 40%, with a gross margin increase of 2.54 percentage points to 15.1%, significantly higher than the average gross margin of the main business [2]. Market Outlook - The company is actively expanding into the feed markets in Asia, Africa, and Latin America, with a target of achieving 7.2 million tons in overseas feed sales by 2030, indicating a compound annual growth rate (CAGR) of approximately 20% [3]. - The domestic feed business is expected to recover starting in 2025, supported by rising prices in aquaculture due to declining stocking volumes and a rebound in pig inventory [3]. Profit Forecast - The report maintains profit forecasts for 2025, 2026, and 2027 at 5.02 billion RMB, 5.48 billion RMB, and 7.04 billion RMB, respectively [4][10]. - The estimated earnings per share (EPS) for 2025 is projected at 3.02 RMB, with a return on equity (ROE) of 19.69% [10][16].

Monetary Policy Outlook - The Federal Reserve is expected to maintain the policy rate at 4.25%-4.5% during the July meeting, despite external pressures for a rate cut[2] - Economic data since the June FOMC meeting has shown resilience, with June non-farm payrolls exceeding expectations and the July PMI rising to 54.6[2][4] - The market currently prices a 70% probability of a 25 basis point rate cut in September[4][13] Future Rate Cut Expectations - The Fed is likely to implement two rate cuts between September and December, contingent on economic data from July and August[5] - The decision to cut rates will depend on the performance of non-farm payrolls and CPI data in the upcoming months[5] - There is a risk of a stronger-than-expected economic performance, which could lead to a rollback of rate cut expectations[5] Inflation and Employment Insights - Inflationary pressures are anticipated in the third quarter due to tariffs, although the transmission of these tariffs to inflation may be weaker than previously expected[5] - The job market shows signs of cooling, with private sector employment remaining weak and job openings declining[5][17] Treasury Issuance and Market Risks - The U.S. Treasury is set to announce its debt issuance plans, which may include an increase in short-term bills and potentially longer-term notes, impacting long-term interest rates[5] - The Treasury's plan to raise the debt ceiling by $5 trillion may lead to increased issuance of government bonds, creating duration risk in the market[5]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Since the end of June 2025, affected by factors such as high cumulative gains, stock market diversion, fundamental pressure, mid - year profit - taking, and rising interest rates, REITs have started to correct. Although there are short - term fluctuations and increasing disturbance factors in the second half of the year, it does not change the long - term allocation value of REITs. Attention should be paid to sectors with stable fundamentals such as affordable rental housing, consumption, and municipal environmental protection [1][10][17]. - From July 18th to July 25th, 2025, due to the stock - bond seesaw effect, the bond market corrected, and the yields of credit bonds increased across the board. The net financing of corporate credit bonds decreased, while that of financial credit bonds increased significantly. In secondary trading, medium - and short - duration bonds were actively traded, and the trading of long - duration bonds increased slightly [3][4][5]. 3. Summary by Relevant Catalogs Credit Hotspots: Public Offering REITs Correction, Fundamentals Continuing from the First - Quarter Report - The public offering REITs total return index has fallen by 3.31% since June 20th, 2025, and has returned to the level at the end of May 2025. The upward trend in the first half of the year was mainly due to the low - interest - rate environment and capital under - allocation. Since the end of June 2025, it has started to correct [10]. - The fundamentals in the second - quarter report continued the trend of the first - quarter report. Affordable rental housing had stable performance; consumption was generally stable but more volatile; industrial parks continued to face pressure; warehousing and logistics performed better than industrial parks; highways were greatly affected by road network diversion; municipal environmental protection was generally stable; and the energy sector was highly differentiated [13][14][19]. - In the short term, projects with weak fundamentals face greater pressure due to interest - rate adjustments. In the second half of the year, although capital under - allocation will continue, disturbance factors increase. However, it does not change the long - term allocation value of REITs [17]. Market Review: Stock - Bond Seesaw Leads to Bond Market Correction, Credit Bond Yields Rising Across the Board - From July 18th to July 25th, 2025, due to the stock - bond seesaw effect, the interest - rate bonds corrected across the board, and the yields of credit bonds also increased across the board. The yields of medium - and short - term notes and urban investment bonds in the medium - and short - ends increased by about 10BP, and the spreads of 1 - 3Y varieties increased by about 4BP. The yields of Tier 2 and perpetual bonds generally increased significantly, with the 3 - 10Y varieties increasing by about 12BP [3]. - Last week, the buying demand was still strong. Wealth management products had a net purchase of 16.847 billion yuan, while funds had a net sale of 26.377 billion yuan. The scale of credit bond ETFs was 330.1 billion yuan, a slight year - on - year decrease of 0.17%. The median spreads of public bonds of AAA - rated entities in various industries increased by 3 - 6BP across the board last week. The median spreads of urban investment bonds in most provinces increased, with Inner Mongolia's spreads increasing by more than 10BP [3]. Primary Issuance: Net Financing of Corporate Credit Bonds Declines, Financial Credit Bonds Significantly Increase - From July 21st to July 25th, 2025, corporate credit bonds issued a total of 324 billion yuan, a 15% month - on - month increase; financial credit bonds issued a total of 228.3 billion yuan, a 128% month - on - month increase. The net financing of corporate credit bonds was 28.1 billion yuan, a 39% month - on - month decrease, with urban investment bonds having a net repayment of 26.5 billion yuan and industrial bonds having a net financing of 56.6 billion yuan. The net financing of financial credit bonds was 207.1 billion yuan [4]. - In terms of issuance interest rates, the average issuance interest rates of medium - and short - term notes showed mixed trends, and the average issuance interest rates of corporate bonds showed a downward trend except for AA - rated bonds [4]. Secondary Trading: Medium - and Short - Duration Bonds Actively Traded, Long - Duration Bonds Slightly Increasing - The actively traded entities are mainly medium - and high - grade, medium - and short - term, central and state - owned enterprises. Urban investment bonds' active trading entities are divided into two types: mainstream high - grade platforms in economically strong provinces such as Jiangsu and Guangdong, and core main platforms in relatively high - spread areas of large economic provinces (Shandong, Sichuan, Hunan, etc.). Real - estate bonds' active trading entities are still mainly AAA - rated, with most trading terms within 1 - 3 years. Private - enterprise bonds' active trading entities are also mainly AAA - rated, with most trading terms in the medium - and short - term [5]. - Among actively traded urban investment bonds, the proportion of bonds with a term of more than 5 years in trading volume was 4%, a slight increase from the previous week (3%) [5].

Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints The report analyzes the liquidity situation from July 21 - 25, 2025, indicating that the capital market shows a state of tight funds and rising interest rates, but the market's expectation of the capital side is stable. The central bank's attitude of caring for the capital side helps maintain the stability of capital interest rates, but there are still uncertainties in the stock market and redemptions [1][2]. 3. Summary by Related Catalogs **Funding Situation** - The open - market maturity was 2046.8 billion yuan last week, with a net investment of 10.95 billion yuan. The capital side was slightly tight, and the average value of DR007 was basically flat compared with the previous week, while the average value of R007 increased by 2BP. Exchange repurchase rates also increased [1]. - The total maturity of certificates of deposit (CDs) was 1076.48 billion yuan last week, with a net financing scale of - 560.79 billion yuan. The 1 - year AAA CD maturity yield increased compared with the previous week. The 1 - year FR007 interest rate swap average decreased compared with the previous week, and the market's expectation of the capital side was stable [2]. **Repurchase Transaction** - The volume of pledged repurchase transactions was between 7.1 - 8.1 trillion yuan last week, and the average volume of R001 repurchase transactions increased by 454 billion yuan compared with the previous week. The undelivered repurchase balance decreased compared with the previous week. In terms of institutions, the lending scale of large - scale banks decreased, while that of money market funds increased. The borrowing scales of securities firms and funds decreased, while that of wealth management increased [4]. **Other Market Indicators** - The 6M national stock bill transfer quotation decreased compared with the last trading day of the previous week. The US dollar - RMB exchange rate decreased slightly, and the Sino - US interest rate spread narrowed. There may be increased exchange rate fluctuations this week due to trade negotiations and central bank meetings [5]. **This Week's Key Concerns** The open - market capital maturity this week is 1656.3 billion yuan. Important economic data such as the eurozone and US Q2 GDP, China's July official PMI, the US July FOMC interest rate decision, and the US July ISM manufacturing index and unemployment rate will be released. Attention should also be paid to the central bank's open - market investment operations [6].

1. Report's Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the fourth week of July, production maintained a certain level of resilience, with good freight volume in the industrial sector and stable开工率 in coking, chemical, and automotive industries. In the construction industry, cement supply was low, demand marginally improved, and asphalt开工率 decreased. In the real estate sector, both new and second - hand housing sales recovered, but the trend needs further observation, and housing prices need to stabilize. External demand saw an increase in throughput, and freight rates showed a differentiated trend. Consumption showed a convergence in travel enthusiasm, with a differentiation between urban travel data and flights, while automobile consumption remained resilient. Prices of most commodities, such as black metals, were strong, while crude oil prices were volatile [2]. 3. Summary by Relevant Catalogs 3.1 Consumption - Travel: The resilience of travel enthusiasm converged, with a decline in the year - on - year growth of subway travel and congestion delay index, an increase in the total number of flights, and a flight execution rate basically the same as last year [2]. - Commodity consumption: Automobile consumption remained popular, textile consumption decreased, and express delivery collection was at a high level [2]. 3.2 Real Estate - New housing: The transaction volume of new housing increased, with third - tier cities leading [3]. - Second - hand housing: Second - hand housing transactions also increased, with the markets in Beijing, Shanghai, and Chengdu warming up slightly, and the market in Shenzhen cooling down. The recovery of second - and third - tier cities needs further observation. The listing price and quantity of second - hand housing decreased [3]. - Land: Last week, land transaction volume was weak, but the premium rate improved [3]. 3.3 Production - Freight volume remained high, and开工率 data showed a differentiated performance [4]. 3.4 Construction Industry - The year - on - year arrival of construction funds decreased. Cement demand was stronger than supply, black metal supply and demand were weak, and asphalt开工率 decreased [5]. - The开工率 of asphalt decreased both year - on - year and month - on - month, and its price also decreased. The开工率 of styrene and PVC improved [6]. 3.5 External Demand - Freight volume: Port cargo throughput and container throughput increased [7]. - Freight rates: The RJ/CRB index increased year - on - year, the Baltic Dry Index (BDI) rose significantly, and international shipping rates showed a differentiated trend. The CCFI index decreased month - on - month, while the SCFI index increased [7]. 3.6 Prices - Agricultural products: The price index of agricultural products decreased slightly [10]. - Industrial products: The domestic Nanhua Industrial Products Index and the overseas RJ/CRB Index both increased. Crude oil prices were volatile, while the prices of black metals, glass, and most other commodities, such as manganese silicon, lithium carbonate, coking coal, and ferrosilicon, were strong [2][10].

Investment Rating - The communication sector maintains a "Buy" rating for key stocks such as Tianfu Communication, Ruijie Network, China Mobile, and China Telecom, while China Unicom is rated as "Overweight" [3][5][61]. Core Insights - In Q2 2025, the communication sector's fund holdings increased to 3.61%, up by 1.31 percentage points, indicating a shift from underweight to overweight status [2][15]. - The communication sector's TTM P/E ratio as of July 24, 2025, is 35.71x, which is at the 37.5% historical percentile since early 2011 [2][15]. - Key areas of focus include the domestic computing power and its supporting industrial chain, particularly in optical modules and related technologies [1][14]. Summary by Sections Market Performance - The communication index fell by 0.77% last week, while the Shanghai Composite Index rose by 1.67% and the Shenzhen Component Index increased by 2.33% [1][14]. Fund Holdings - Q2 2025 saw a rise in the communication sector's fund holdings, with a notable increase in the allocation towards optical modules and military communications, while reducing exposure to data centers and wireless equipment [2][15]. Recommended Stocks - Key recommended stocks include: - Tianfu Communication (300394 CH) with a target price of 119.12 and a "Buy" rating - Ruijie Network (301165 CH) with a target price of 88.70 and a "Buy" rating - China Mobile (600941 CH) with a target price of 126.40 and a "Buy" rating - China Telecom (601728 CH) with a target price of 9.13 and a "Buy" rating - China Unicom (600050 CH) with a target price of 7.62 and an "Overweight" rating [5][61]. Key Stock Performance - The top five stocks with increased fund holdings in Q2 2025 include: - Xinyi Technology (300502 SZ) with a total market value increase of 191.65 billion - Zhongji Xuchuang (300308 SZ) with an increase of 182.70 billion - Tianfu Communication (300394 SZ) with an increase of 29.69 billion - Yuanjie Technology (688498 SH) with an increase of 16.90 billion - Haige Communication (002465 SZ) with an increase of 11.01 billion [25][26].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 1,200 [6][7]. Core Views - The company is expected to achieve a revenue of approximately RMB 120-125 billion in the first half of 2025, representing a year-on-year growth of about 241%-255% [1][2]. - The adjusted net profit is projected to be around RMB 23-23.6 billion, reflecting a year-on-year increase of approximately 282%-292% [2][3]. - The strong performance is attributed to contributions from both online and offline stores, as well as the opening of new large stores in key locations [1][4]. Summary by Sections Revenue Growth - The company anticipates sales performance (including tax revenue) of about RMB 138-143 billion in 1H25, which is a year-on-year increase of approximately 240%-252% [2]. - The revenue growth is driven by the rapid expansion of brand influence, continuous product innovation, and significant growth in both online and offline channels [2][3]. Profitability - The expected adjusted net profit margin for 1H25 is around 19%, an increase of approximately 1.3 percentage points compared to 2024 [2]. - The improvement in net profit margin is primarily due to operational leverage optimization, which has led to a significant reduction in expense ratios [2][3]. Product Innovation - The company continues to innovate on traditional craftsmanship, launching new products such as "Seven Sons Gourd" and "Cross Diamond Pendant" in 1H25, which have received positive market feedback [3]. - The introduction of these new products enhances the diversity of gold jewelry offerings and broadens the customer base [3]. Channel Expansion - The company has made significant breakthroughs in both domestic and international high-end markets, opening stores in premium locations such as Shenzhen, Shanghai, and Singapore [4]. - The ongoing optimization of store locations, member operations, and brand building is expected to further enhance single-store performance [4]. Financial Forecast - The report maintains net profit forecasts for 2025-2027 at RMB 49.1 billion, RMB 62.1 billion, and RMB 75.8 billion respectively [5]. - The target price of HKD 1,200 corresponds to a PE ratio of 38.5 times for 2025, reflecting the company's strong growth momentum and high-end brand positioning [5].

Quantitative Models and Construction Methods 1. Model Name: Commodity Term Structure Strategy - **Model Construction Idea**: This strategy utilizes the roll yield factor to capture the contango or backwardation state of commodities, dynamically going long on commodities with high roll yields and shorting those with low roll yields[51] - **Model Construction Process**: - The roll yield factor is calculated based on the term structure of commodity futures prices - The strategy dynamically adjusts positions to go long on commodities with high roll yields and short on those with low roll yields[51] - **Model Evaluation**: The strategy is designed to exploit the carry factor in commodity markets, providing a systematic approach to capturing term structure-related returns[51] 2. Model Name: Commodity Time-Series Momentum Strategy - **Model Construction Idea**: This strategy uses multiple technical indicators to capture medium- to long-term trends in domestic commodities, dynamically going long on assets with upward trends and shorting those with downward trends[51] - **Model Construction Process**: - Technical indicators such as moving averages and momentum signals are used to identify trends - Positions are dynamically adjusted based on the identified trends, with long positions in upward-trending assets and short positions in downward-trending assets[51] - **Model Evaluation**: The strategy systematically captures momentum effects in commodity markets, leveraging trend-following behavior[51] 3. Model Name: Commodity Cross-Sectional Inventory Strategy - **Model Construction Idea**: This strategy uses inventory factors to capture changes in the fundamentals of domestic commodities, dynamically going long on assets with declining inventories and shorting those with increasing inventories[51] - **Model Construction Process**: - Inventory data is used to construct factors reflecting supply-demand dynamics - Positions are dynamically adjusted to go long on commodities with declining inventories and short on those with increasing inventories[51] - **Model Evaluation**: The strategy effectively captures fundamental changes in commodity markets, providing a systematic approach to exploiting inventory-related signals[51] 4. Model Name: Commodity Fusion Strategy - **Model Construction Idea**: This strategy combines the above three sub-strategies (term structure, time-series momentum, and cross-sectional inventory) using equal weighting to create a diversified commodity investment approach[49] - **Model Construction Process**: - The three sub-strategies are equally weighted to form a composite strategy - The combined strategy dynamically adjusts positions based on the signals from the sub-strategies[49] - **Model Evaluation**: The fusion strategy aims to diversify risk and enhance returns by integrating multiple sources of alpha in commodity markets[49] --- Model Backtesting Results 1. Commodity Term Structure Strategy - **Two-Week Return**: -1.39%[54] - **Year-to-Date Return**: 1.38%[56] 2. Commodity Time-Series Momentum Strategy - **Two-Week Return**: 1.99%[54] - **Year-to-Date Return**: -1.97%[61] 3. Commodity Cross-Sectional Inventory Strategy - **Two-Week Return**: -0.26%[54] - **Year-to-Date Return**: 4.00%[68] 4. Commodity Fusion Strategy - **Two-Week Return**: 0.12%[49] - **Year-to-Date Return**: 1.14%[49] --- Quantitative Factors and Construction Methods 1. Factor Name: Roll Yield Factor - **Factor Construction Idea**: Measures the contango or backwardation state of commodity futures markets[51] - **Factor Construction Process**: - Calculated based on the difference between near-month and far-month futures prices - Positive roll yield indicates backwardation, while negative roll yield indicates contango[51] 2. Factor Name: Momentum Factor - **Factor Construction Idea**: Captures the trend-following behavior in commodity prices[51] - **Factor Construction Process**: - Derived from technical indicators such as moving averages and momentum signals - Positive momentum indicates an upward trend, while negative momentum indicates a downward trend[51] 3. Factor Name: Inventory Factor - **Factor Construction Idea**: Reflects supply-demand dynamics in commodity markets[51] - **Factor Construction Process**: - Based on changes in inventory levels - Declining inventories indicate tightening supply, while increasing inventories indicate loosening supply[51] --- Factor Backtesting Results 1. Roll Yield Factor - **Performance**: Contributed positively to the term structure strategy, with key contributors being iron ore, ethylene glycol, and methanol[58] 2. Momentum Factor - **Performance**: Contributed positively to the time-series momentum strategy, with key contributors being hot-rolled coil, rebar, and zinc[67] 3. Inventory Factor - **Performance**: Contributed positively to the cross-sectional inventory strategy, with key contributors being PVC, zinc, and rubber[73]