Market Overview - On August 26, the Shanghai Composite Index fell by 0.39%, the CSI 300 decreased by 0.37%, the STAR 50 dropped by 1.31%, the CSI 1000 was down by 0.02%, the ChiNext Index declined by 0.76%, and the Hang Seng Index decreased by 1.18% [4] - The best-performing sectors on August 26 were Agriculture, Forestry, Animal Husbandry, and Fishery (+2.62%), Beauty and Personal Care (+2.04%), Basic Chemicals (+1.26%), Media (+1.23%), and Comprehensive (+1.09%). The worst-performing sectors were Pharmaceuticals and Biology (-1.09%), Non-Bank Financials (-1.06%), Steel (-0.98%), Defense and Military Industry (-0.93%), and Communications (-0.79%) [4] - The total trading volume of the A-share market on August 26 was 27,098.31 billion, with a net inflow of 16.572 billion HKD from southbound funds [4] Important Recommendations Weichai Heavy Machinery (000880) - Recommended as a leading manufacturer of marine medium-speed engines, with AIDC driving high growth in the diesel generator business [5] - Revenue projections for 2025-2027 are 5,280 million, 6,935 million, and 8,093 million, with growth rates of 32%, 31%, and 17% respectively. Net profit is expected to be 301 million, 502 million, and 624 million, with growth rates of 62%, 67%, and 24% respectively [5] - The expected earnings per share are 0.91, 1.52, and 1.88, with PE ratios of 56, 33, and 27 [5] Bank of China Hong Kong (02388) - Recommended for its combination of high dividends and growth potential, benefiting from Chinese enterprises going global and the Belt and Road Initiative [6] - Target price is set at 44.28 HKD per share, corresponding to a 2025 PB of 1.26 times, indicating a potential upside of 20% [6] - Expected net profit growth rates for 2025-2027 are 5.55%, 3.38%, and 1.56%, with BPS projected at 35.18, 38.38, and 41.56 HKD [7] Important Insights GLP-1 Sector Analysis - The report provides a comprehensive analysis of the GLP-1 sector, highlighting significant opportunities for domestic companies in the weight loss indication area [8] - Investment opportunities are identified in companies with competitive clinical data and advanced pipelines, including Borui Pharmaceutical, Zhongsheng Pharmaceutical, and others [8] - Catalysts for growth include clinical data releases and ongoing business development events [8] Taotao Vehicle (301345) - The company reported an 88% year-on-year growth in its first half performance, positioning itself as a leading player in the North American leisure vehicle market [9] - Investment opportunities arise from the company's consistent performance and accelerated smart technology integration [9] - Catalysts include exceeding order expectations and an improved competitive landscape [9]

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company achieved a revenue of 1.314 billion yuan in H1 2025, representing a year-on-year increase of 6.65%, while the net profit attributable to shareholders was 82 million yuan, a decrease of 48.65% year-on-year [2][4] - The revenue from bulk gases increased by 23.1% year-on-year, while the revenue from specialty gases decreased by 18.4% year-on-year due to significant price declines in key products [2][3] - The company is focusing on both organic growth and external acquisitions to enhance its long-term development, having successfully integrated CHEM-GAS and Hanxing Gas to expand its market presence [3][4] Summary by Sections Financial Performance - In Q2 2025, the company reported a revenue of 691 million yuan, a year-on-year increase of 7.6% and a quarter-on-quarter increase of 11.07%. The net profit for the quarter was 38 million yuan, down 54.3% year-on-year and 13.19% quarter-on-quarter [2] - The overall gross margin for H1 2025 was 29.7%, a decrease of 4.6 percentage points year-on-year, with a net margin of 6.9%, down 6.7 percentage points year-on-year [2] Growth Strategy - The company is pursuing a multi-business collaboration strategy, focusing on the development path of "bulk retail - electronic specialty gases - electronic bulk - on-site gas production" [3] - In H1 2025, the company onboarded 18 new semiconductor clients for electronic specialty gases and secured six new projects in electronic bulk gases [3] Profit Forecast and Valuation - The net profit forecasts for 2025, 2026, and 2027 are adjusted to 198 million yuan, 275 million yuan, and 363 million yuan, respectively, with corresponding P/E ratios of 46, 33, and 25 [4] - The company is expected to see significant growth potential as new projects come online and various business segments continue to expand [4]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [4][6]. Core Insights - The company is a leading AI for Science innovative R&D platform, leveraging a combination of AI, quantum technology, and robotics to create competitive advantages, primarily in pharmaceutical R&D, with plans to expand into materials and other fields, suggesting that revenue growth and profit release may exceed expectations [1][2]. Summary by Sections 1. Company Overview - The company integrates quantum physics, AI algorithms, and robotic automation to enhance R&D efficiency in pharmaceuticals and materials science [15]. - Founded by three MIT postdoctoral researchers, the company has established partnerships with major pharmaceutical firms, including 17 of the top 20 global drug companies [2][19]. 2. Financial Performance - The company is expected to achieve revenues of 602 million, 918 million, and 1.316 billion CNY in 2025, 2026, and 2027, respectively, with year-on-year growth rates of 126.1%, 52.4%, and 43.3% [4][10]. - The company anticipates turning a profit in the first half of 2025, with expected revenues of at least 500 million CNY, a 387% increase from the first half of 2024 [40]. 3. Market Trends - The global CRO market is projected to grow from 12.3 billion USD in 2023 to 32.5 billion USD by 2030, with a CAGR of 14.9% [3][55]. - The report highlights a significant trend towards outsourcing in drug development, with the global market for outsourced drug discovery services expected to grow from 7.6 billion USD in 2018 to 32.5 billion USD by 2030 [55][56]. 4. Business Model and Growth Drivers - The company employs a revenue-sharing model that enhances income flexibility, with significant potential revenue from collaborations, including a recent agreement with DoveTree that could yield up to 58.9 billion USD in milestone payments [2][39]. - The company has developed a unique high-throughput experimental platform that operates 24/7, generating high-quality data to improve AI models, thus enhancing the drug discovery process [16][44]. 5. Product and Service Offerings - The company offers a diverse range of products, including intelligent synthesis workstations and AI software applications, which collectively create a robust barrier to entry in the market [48]. - The company has established a comprehensive R&D platform that covers the entire drug development process, integrating multiple core products and technologies [45][46]. 6. Strategic Partnerships - The company has formed strategic partnerships with leading pharmaceutical companies, including Pfizer and Merck, to enhance its market presence and drive innovation [48][49]. - The report notes that the company has successfully developed key projects, including an innovative targeted drug that integrates AI and organoid disease models, receiving FDA approval [50].

1. Report Industry Investment Rating - Not provided in the content 2. Core View of the Report - The current bond market does not have a basis for significant adjustment. If confidence in the bond market is limited, investors may wait for the yield to adjust further before entering the market with a configuration mindset. If still confident in the bond market, the current point after breaking below the annual line may have obvious short - term trading value [1][4][42] 3. Summary by Relevant Catalogs 2020 - 2022 Scenarios of 10 - year Treasury Futures Breaking Below the Annual Line - **Scenario 1: July 6, 2020 (Breaking Below the Annual Line and Continuing to Weaken)** - After the closing price of the 10 - year Treasury futures main contract broke below the annual line, it experienced short - term fluctuations and rebounds but then continued to decline. The macro - trading logic reversed. The macro - economy showed strong resilience, and the recession expectation significantly cooled. The monetary policy shifted from loose to tight, and the supply of Treasury bond issuance increased, leading to liquidity shock pressure. The 10 - year Treasury futures did not form effective support at the annual line [13] - **Scenario 2: June 27, 2022 (Breaking Below the Annual Line and Then Rebounding Quickly)** - After the closing price of the 10 - year Treasury futures main contract broke below the annual line, it quickly rebounded after a short - term adjustment. In the second quarter of 2022, steady - growth policies were intensively implemented, driving up the expectation of economic recovery. However, due to risk events such as real - estate unfinished building mortgage suspension and rural bank thunderstorms and weak economic data, the recovery expectation declined. Coupled with obvious improvement in liquidity, the 10 - year Treasury futures got strong support near the annual line [23] - **Scenario 3: November 14, 2022 (Breaking Below the Annual Line and Then Oscillating at a Low Level)** - After the closing price of the 10 - year Treasury futures main contract broke below the annual line, the short - term market was weak but did not deviate significantly from the annual line, showing a low - level oscillation state. Real - estate support policies and the shift of epidemic - prevention policies drove up the expectation of economic improvement. The game between strong expectation and weak reality reappeared. After March 2023, the weak reality problem was confirmed again, and the bond market started the next round of upward trend under the logic of abundant funds [28] Analysis of the Current Round of 10 - year Treasury Futures Breaking Below the Annual Line - **Fundamentals** - The macro - economy performed relatively well in the first half of the year, but the economic and financial data in July were relatively weak, indicating that economic stabilization still needs time. The Politburo meeting in July had a relatively cautious tone, and the priority of implementing existing policies was higher than increasing new policy intensity, which may dampen market optimism. The fundamental expectation or current situation does not support a significant upward movement of Treasury yields [3][34] - **Funding Situation** - Since mid - March, the funding rate has been continuously declining, and the difference between the funding rate and the policy rate has gradually converged. The possibility of the central bank tightening liquidity unexpectedly in the next stage is relatively low. An abundant liquidity environment may prevent Treasury yields from rising further [38] - **Stock - Bond Seesaw** - The stock - bond seesaw is the main reason for the recent bond - market adjustment, but the bond market has shown signs of desensitization to the equity market. The equity market's upward slope has increased recently, and potential adjustment risks need to be guarded against. If the equity - market trend corrects, it may drive the bond - market trend to further recover [3][39] Bond - Market Strategy Thinking - The appropriate bond - market strategy depends on two aspects: the bull - bear state of the bond market and the investment purpose (trading or configuration). If confidence in the bond market is limited, wait for the yield to adjust further and then enter the market with a configuration mindset. If still confident in the bond market, the current point after breaking below the annual line has obvious short - term trading value [4][42]

Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company reported better-than-expected performance in Q2 2025, driven by AI efficiency improvements and effective cost control [1] - In 1H25, the company achieved revenue of 8.486 billion yuan, a year-on-year decrease of 8.08%, while net profit attributable to shareholders was 1.4 billion yuan, an increase of 10.72% year-on-year [1][2] - The company has a rich pipeline of new games, which is expected to contribute positively to future revenue growth [4] Revenue Summary - In 1H25, the company's revenue was 84.86 billion yuan, down 8.08% year-on-year, primarily due to the lifecycle stage of its game products [2] - New games like "Heroes Without Flash" and "Time Big Bang" are in the ramp-up phase, contributing to revenue but not fully offsetting the decline from mature games [2] Cost Summary - The gross margin for Q2 2025 was 76.15%, a decrease of 1.27 percentage points year-on-year, mainly due to increased game revenue sharing costs [3] - Sales expenses in Q2 2025 were 1.992 billion yuan, down 19.32% year-on-year, reflecting reduced marketing spend as previous growth-phase games have matured [3] - R&D expenses were 168 million yuan, a slight decrease of 4.41% year-on-year, attributed to improved efficiency through AI technology [3] Future Product Pipeline - The company has a diverse range of new games in development, including titles in various genres such as MMORPG and SLG, with plans to incorporate cultural elements into their games [4] Profit Forecast and Valuation - The company is projected to achieve revenues of 19.1 billion yuan, 21.9 billion yuan, and 25.3 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 2.81 billion yuan, 3.27 billion yuan, and 3.68 billion yuan [5] - The target P/E ratio for 2026 is set at 20x, leading to a target market capitalization of 65.4 billion yuan and a target stock price of 29.5 yuan [5]

Investment Rating - The investment rating for the company is "Buy" [6] Core Views - The company, Kairun Co., is a bag and apparel manufacturer deeply rooted in Indonesia, benefiting from scarce production capacity and dual business synergy, which is expected to lead to superior growth rates in the sector [1] - The revenue growth of the OEM business is anticipated to exceed expectations due to the company's ability to increase its share among major clients like Nike and Decathlon, despite market concerns about their slowing growth [2] - The net profit margin for apparel OEM is expected to improve beyond expectations as the company has moved past its adjustment phase, with a projected net margin of 3.3% in 2024 [3] Summary by Sections Revenue Growth - The OEM business revenue is projected to maintain double-digit growth, driven by the company's production capacity in Indonesia and an expanded product range [2] - The company’s overseas production capacity, primarily in Indonesia, exceeds 70%, providing a competitive edge over peers focused on Vietnam [2] Profitability Improvement - The apparel OEM has seen a significant recovery, with profit margins expected to improve annually as production capacity utilization increases [3] - The company has optimized its client structure and production capacity since investing in Shanghai Jiale in 2020, leading to a recovery from losses [3] Growth Drivers - Increased procurement share from major clients in bags and the extension into apparel categories are expected to drive revenue growth beyond expectations [4] - Improved apparel production capacity utilization and order structure are anticipated to enhance profit margins [4] Earnings Forecast - Revenue is expected to reach 5.16 billion, 5.92 billion, and 6.78 billion yuan in 2025, 2026, and 2027 respectively, with year-on-year growth rates of 21.8%, 14.6%, and 14.5% [4] - The net profit for the same years is forecasted at 372.6 million, 459.3 million, and 557.2 million yuan, with growth rates of -2.2%, 23.3%, and 21.3% [4] Valuation Analysis - The company is expected to maintain double-digit revenue growth while improving net profit margins, leading to a compound annual growth rate of over 20% in operating net profit [5] - A target price of 31.05 yuan per share is set, corresponding to a market capitalization of approximately 75 billion yuan, indicating a potential upside of 38% from the current price [5]

Investment Rating - The investment rating for Huabao International is "Buy" (maintained) [5][9] Core Views - The company has launched an equity incentive plan to strengthen confidence and is looking forward to opportunities in the HNB supply chain [1] - The company reported a revenue of 1.621 billion yuan for the first half of 2025, with a year-on-year growth of 2.5%, and a significant increase in net profit attributable to shareholders by 298% [1][5] - The company aims to accelerate international development and expand overseas markets, with potential merger and acquisition opportunities [4] Summary by Sections Equity Incentive Plan and H1 2025 Performance - The equity incentive plan includes 148 million stock options, accounting for 4.6% of the current total share capital, with an exercise price of HK$3.95 per share [1] - The performance for H1 2025 shows a revenue of 1.621 billion yuan, a gross margin of 43.4%, and a net profit attributable to shareholders of 118 million yuan [1] Downstream Demand - Tobacco production in H1 2025 reached 27.51 million boxes, showing a year-on-year increase of 0.8% [2] - The food and beverage sector saw a year-on-year increase in added value of 7.5% for agricultural and sideline food processing, and 6.3% for food manufacturing [2] Business Segmentation - Revenue from flavor and food ingredients was 596 million yuan, down 8.6%, while revenue from tobacco raw materials increased by 45.3% to 238 million yuan [3] - The company has completed the construction of a new tobacco leaf production base in Indonesia, with an annual capacity of 3,000 tons [3] Outlook for H2 2025 - The company plans to continue accelerating its international development and enhance supply chain management, with cash and financial assets totaling 6 billion yuan as of H1 2025 [4] Financial Forecast - Revenue projections for 2025-2027 are 3.598 billion yuan, 4.075 billion yuan, and 4.670 billion yuan, with year-on-year growth rates of 6.66%, 13.26%, and 14.60% respectively [5][10]

Investment Rating - The report maintains a "Buy" rating for the company [2][4]. Core Views - The company is expected to enter a rapid growth phase due to strong partnerships with SAIC and Xiaomi, with significant profit growth observed in the second quarter [1][7]. - Revenue forecasts for 2025-2027 are projected at 34.3 billion, 44.4 billion, and 52.3 billion yuan, representing year-on-year growth of 35.5%, 29.4%, and 17.9% respectively [2][4]. - Net profit forecasts for the same period are 5.1 billion, 6.5 billion, and 7.8 billion yuan, with year-on-year growth rates of 35.3%, 26.2%, and 21.0% [2][4]. Financial Summary - The company achieved a revenue of 12.87 billion yuan in the first half of 2025, a year-on-year increase of 15.2%, with a net profit of 2.01 billion yuan, up 27.2% [7]. - In Q2 2025, revenue reached 6.87 billion yuan, showing a year-on-year and quarter-on-quarter growth of 9.5% and 14.4% respectively, with net profit of 1.07 billion yuan, reflecting a year-on-year increase of 31.9% [7]. - The company’s earnings per share (EPS) are projected to be 1.51 yuan in 2024, increasing to 3.12 yuan by 2027 [4][8].

Market Overview - On August 25, the Shanghai Composite Index rose by 1.51%, the CSI 300 increased by 2.08%, the STAR 50 climbed by 3.2%, the CSI 1000 went up by 1.56%, the ChiNext Index surged by 3%, and the Hang Seng Index gained 1.94% [4] - The best-performing sectors on August 25 were telecommunications (+4.85%), non-ferrous metals (+4.63%), real estate (+3.32%), comprehensive (+3.31%), and steel (+2.74%). The worst-performing sectors included beauty care (+0.01%), textiles and apparel (+0.17%), oil and petrochemicals (+0.39%), light industry manufacturing (+0.55%), and automotive (+0.71%) [4] Important Recommendations - The report highlights Huakin Technology (603296) with a focus on the acceleration of domestic supernodes and the potential for data business elasticity to exceed expectations. The company is building a full-stack AI product and solution portfolio, particularly positioning itself advantageously with major internet companies like Tencent [5] - The domestic supernode progress is ahead of expectations, with RACK penetration rates expected to grow rapidly, benefiting leading manufacturers. The company is actively constructing a global AI ecosystem, deeply engaging in servers, switches, and other full-stack product combinations, and is a domestic leader in the supernode field [5] - Revenue projections for Huakin Technology from 2025 to 2027 are estimated at 140,721.92 million, 176,689.93 million, and 222,848.59 million yuan, with growth rates of 28.07%, 25.56%, and 26.12% respectively. Net profit attributable to shareholders is forecasted at 4,031.13 million, 5,456.61 million, and 7,135.85 million yuan, with growth rates of 37.76%, 35.36%, and 30.77% respectively [5]

Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The company reported a revenue of 1.71 billion yuan for the first half of 2025, representing a year-on-year growth of 23%, and a net profit attributable to shareholders of 340 million yuan, which is an 88% increase year-on-year [1] - The company is expected to maintain strong growth due to robust production and sales, with its own brand sales accounting for 65% of total sales, indicating increasing brand recognition [1][2] - The company has made significant progress in the electric low-speed vehicle segment, achieving a revenue of 1.15 billion yuan, a 31% increase year-on-year, with rapid advancements in electric golf carts [2] Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 1.07 billion yuan, a 23% year-on-year increase, and a net profit of 260 million yuan, reflecting a 95% growth year-on-year [1] - The company’s weighted average ROE was 10.4%, up 4.2 percentage points year-on-year, and the net profit margin was 20.0%, an increase of 6.9 percentage points year-on-year [1] Market Position and Growth Drivers - The company is expected to strengthen its market position as the supply side of the North American electric low-speed vehicle industry continues to decline, allowing the company to increase its market share [2] - The company has expanded its dealer network significantly, with over 230 high-end dealers for golf carts and more than 300 for electric bicycles [2] - The introduction of new products, such as the panoramic camping vehicle CITY priced at $15,500, and the launch of the second brand TEKO in North America, are expected to enhance the product lineup and brand presence [2] Future Projections - Revenue projections for 2025-2027 are estimated at 4.2 billion, 5.6 billion, and 7.4 billion yuan, with year-on-year growth rates of 40%, 34%, and 33% respectively [3] - Net profit projections for the same period are 750 million, 980 million, and 1.28 billion yuan, with growth rates of 74%, 31%, and 31% respectively [3] - The company is expected to maintain a compound annual growth rate of 44% from 2024 to 2027, with corresponding P/E ratios of 28, 21, and 16 for 2025-2027 [3]