Investment Rating - The industry investment rating is "Positive" (maintained) [4] Core Views - The global AI sector remains highly prosperous, with continuous application development. Domestic telecom operators are experiencing a recovery in growth rates, and satellite internet is beginning to contribute to performance elasticity [4] - Telecom operators benefit from the ongoing promotion of the Digital China strategy, leading to stable overall business growth. Innovative businesses are growing faster and increasing their share, while new growth drivers continue to strengthen. Additionally, the reduction in capital expenditure as a percentage of revenue is favorable for profit release [4] Summary by Relevant Sections Telecom Operators - China Mobile's Q2 revenue is projected to be between 285.85 billion and 288.70 billion yuan, with a year-on-year growth of 1%-2%. The net profit attributable to shareholders is expected to be between 52.20 billion and 52.55 billion yuan, growing by 3.2%-3.9% [2] - China Telecom's Q2 revenue is expected to be between 132.80 billion and 134.10 billion yuan, with a year-on-year growth of 1%-2%. The net profit attributable to shareholders is projected to be between 13.57 billion and 13.66 billion yuan, growing by 2.7%-3.4% [2] - China Unicom's Q2 revenue is expected to be between 101.30 billion and 102.00 billion yuan, with a year-on-year growth of 3.5%-4.2%. The net profit attributable to shareholders is projected to be between 3.795 billion and 3.855 billion yuan, growing by 5.6%-7.3% [2] - China Tower's Q2 revenue is projected to be between 24.88 billion and 25.03 billion yuan, with a year-on-year growth of 2.5%-3.1%. The net profit attributable to shareholders is expected to be between 2.72 billion and 2.76 billion yuan, growing by 6.8%-8.4% [3] AI and Network Connection - The AI optical module sector is experiencing significant growth, with 800G optical modules continuing to ramp up production and 1.6T products entering mass production. Domestic companies are leading the industry and deeply participating in the global supply chain [3] - Zhongji Xuchuang's Q2 revenue is expected to be between 7 billion and 8 billion yuan, with a year-on-year growth of 18%-34%. The net profit attributable to shareholders is projected to be between 1.75 billion and 2 billion yuan, growing by 30%-48% [3] AI Liquid Cooling - The trend towards liquid cooling in data centers is becoming more pronounced due to the increasing power consumption of AI servers. Yingwei's Q2 revenue is expected to be between 12 billion and 14 billion yuan, with a year-on-year growth of 24%-45% [6] - Oulu Tong's Q2 revenue is projected to be between 11 billion and 12 billion yuan, with a year-on-year growth of 22%-33% [7] AI Applications - The demand for AI servers is expected to grow steadily, benefiting from the development of the digital economy and AI computing power. Huqin Technology's Q2 revenue is projected to be between 350 billion and 365 billion yuan, with a year-on-year growth of 51%-58% [8] Military Communication & Satellite Internet - Increased regional tensions are likely to lead to sustained investment in national defense construction, with communication and information technology being key investment areas. The domestic low-orbit satellite network is expected to continue advancing [11] - Changjiang Communication's Q2 revenue is expected to be between 2.3 billion and 3.4 billion yuan, with a year-on-year growth of 10%-63% [12]

Market Overview - On July 7, the Shanghai Composite Index rose by 0.02%, while the CSI 300 fell by 0.43%, the STAR Market 50 dropped by 0.66%, the CSI 1000 increased by 0.24%, and the ChiNext Index decreased by 1.21%. The Hang Seng Index also fell by 0.12% [4]. - The best-performing industries on July 7 were comprehensive (+2.57%), utilities (+1.87%), real estate (+1.68%), light industry manufacturing (+1.52%), and environmental protection (+1.1%). The worst-performing industries included coal (-2.04%), pharmaceuticals and biology (-0.97%), telecommunications (-0.77%), home appliances (-0.7%), and electronics (-0.67%) [4]. - The total trading volume for the entire A-share market on July 7 was 1,227.1 billion yuan, with net inflow from southbound funds amounting to 12.067 billion Hong Kong dollars [4]. Key Insights Light Industry Manufacturing - The report emphasizes a trend in consumer growth industries, advocating for a balanced investment in value stocks [5]. - The market outlook indicates that the first half of 2025 saw insufficient national subsidies and weak overall consumption, leading to a structural growth in "new" consumption [5]. - The underlying logic of "new" consumption is attributed to generational shifts and changes in consumer attitudes during the economic transition period. Despite full pricing, mid-term performance growth is expected to digest valuations, making the second half of the year a clear investment focus for the sector [5]. - Key drivers include the sustained prosperity of new consumption and the performance turning point for traditional consumption [5]. - Recommendations include focusing on growth in consumer experience and prioritizing quality manufacturing stocks that have solidified their bottom lines [5]. Strategy Insights - The report projects that in Q3 2025, the domestic equity market may be dominated by local factors, suggesting banks as a stable investment while recommending balanced allocations in brokerage, military industry, and TMT sectors [6]. - The report notes a potential slowdown in the global trend of "de-dollarization" and emphasizes the need for rebalancing in dollar asset allocations. It suggests that U.S. stocks may show resilience beyond expectations, although caution is advised regarding potential inflationary pressures [6]. - Key factors to monitor include the expiration of the 90-day tariff exemption on China by the U.S. in mid-August and the earnings reports of U.S. stocks for Q2 2025 [7]. - The report highlights that the current dollar is likely entering a prolonged downtrend, with U.S. Treasury rates expected to remain high and volatile in Q3 2025 [7].

Investment Rating - The industry investment rating is "Positive" [1] Core Viewpoints - The industrial gas sector is experiencing a price upturn, with liquid oxygen showing a continuous year-on-year growth for three consecutive weeks [3][10] - The market for industrial gases in China is approximately 200 billion yuan, with a compound annual growth rate exceeding 10% over the past five years [4][56] - The electronic gas sector is expected to benefit from the gradual recovery of the semiconductor industry, with the global electronic gas market projected to exceed 50 billion yuan by 2025 [54][57] Price Tracking - In June, the average prices for liquid oxygen, liquid nitrogen, and liquid argon were 448 yuan/ton (up 4.7% month-on-month, up 0.5% year-on-year), 480 yuan/ton (up 6% month-on-month, up 5% year-on-year), and 629 yuan/ton (up 3.5% month-on-month, down 35.6% year-on-year) respectively [3][9] - As of July 3, the prices were 449 yuan/ton for liquid oxygen (up 1.4% month-on-month, up 3.5% year-on-year), 469 yuan/ton for liquid nitrogen (down 0.2% month-on-month, up 7% year-on-year), and 628 yuan/ton for liquid argon (down 1.1% month-on-month, down 27% year-on-year) [10] Supply and Demand Tracking - The operating load rate of air separation units in China is showing a rebound, with market supply tightening due to maintenance and increased self-use by major enterprises [36] - In June, the PMI was recorded at 49.7, indicating a slight improvement over the past two months [37] Investment Recommendations - Key recommendations include Hangyang Co., Ltd., with continuous recommendations for Qiaoyuan Co., Ltd. and Shangu Power, and suggestions to pay attention to HeYuan Gas, China Shipbuilding Special Gas, Guanggang Gas, Huate Gas, and Kaimeite Gas [55][56] - The report emphasizes the potential for domestic companies to increase their market share in the electronic gas sector, with a significant shift from foreign to domestic suppliers [53][57]

Group 1: Company Insights - The core viewpoint is that Haier's main business is stabilizing, and new business formats are accelerating, highlighting its strong growth and high dividend attributes [5][6] - The recommendation logic indicates that Haier is the leading men's clothing brand with high dividends, and its main brand is performing well compared to peers, with the potential for accelerated store openings in JD Outlet [5] - The main brand's revenue is expected to stabilize and show year-on-year growth, supported by improved marketing efforts and optimized channel quality [5][6] Group 2: Financial Projections - Revenue projections for Haier from 2025 to 2027 are estimated at 22,316 million, 24,796 million, and 26,621 million, with growth rates of 6.5%, 11.1%, and 7.4% respectively [6] - The net profit forecast for the same period is 2,411 million, 2,661 million, and 2,908 million, with growth rates of 11.7%, 10.4%, and 9.2% respectively [6] Group 3: Industry Insights - The banking sector is currently in a "bull market" phase, with the price-to-book (PB) ratio expected to recover from 0.5X to between 0.8X and 0.9X [7][8] - The report highlights that the banking sector is benefiting from a narrative of "asset scarcity" and potential incremental funding from insurance and public offerings [7][8] Group 4: Technology Sector Insights - The demand for AI reasoning is transforming the AI computing landscape, with ASIC chips offering low-cost, high-performance solutions compared to GPUs [13][14] - Investment opportunities are identified in AI networks, liquid cooling technologies, and specific companies like New Yisheng and Zhongji Xuchuang, which are expected to benefit from the growth of ASIC technology [13][14]

Core Insights - The "TACO trade" has significantly influenced asset pricing and volatility since Trump's inauguration in January 2025, with a notable convergence in the contribution of fundamental data such as inflation and employment to asset pricing [1] - During Trump's pressure phase, it is advisable to buy safe-haven assets like gold and bonds, while sectors such as agriculture in A-shares, healthcare in Hong Kong, and utilities in the US stock market have shown relative stability [1] - In the retreat phase, equity assets are favored, with A-share financial and technology sectors performing better [1] - The current key risk overseas is the slow pace of Federal Reserve rate cuts, which raises concerns about the sustainability of US fiscal policy [1] TACO Trade Strategy Cases - Case I highlights the liquidity shock to global capital markets from reciprocal tariffs [2] - Case II discusses Trump's tariff pressure on the EU and its market implications [2] - Case III examines the interplay of interests between Musk and Trump, showcasing the TACO trade's dynamics [2] Deep Reasons for TACO Trade - The TACO trade stems from Trump's negotiation strategy of "seeking the upper hand" [3] - The Trump administration aims to balance multiple objectives in negotiations [3] - Non-US economies like China have gained more negotiating power [3] Asset-Level Review of TACO Trade - In the first half (January 13 - April 7), the market experienced a "stagflation trade" with US stocks declining, US bonds rising, and non-US currencies strengthening [4][23] - The second half (April 8 - July 4) saw a rebound in US stocks, with the Nasdaq rising 32% and the S&P 500 recovering significantly [4][24] Equity Sector Review of TACO Trade - In the first half, defensive sectors in A-shares outperformed, while technology and healthcare in Hong Kong showed strong performance [5][27] - In the second half, financial and military sectors in A-shares excelled, with Hong Kong's financial, healthcare, energy, and new consumption sectors also performing well [5][32] TACO Trade Outlook - The domestic equity market is expected to be "self-reliant," with recommendations to focus on banks as a stabilizing force and to balance investments in brokerages, military, and TMT sectors [6] - Globally, the trend of "de-dollarization" is anticipated to slow down, with a focus on rebalancing dollar asset allocations [6] - The potential for a "Buy The Dip" strategy remains effective, but caution is advised regarding the risk of stagflation [6]

Investment Rating - The industry investment rating is "Positive" [1] Core Viewpoints - The report highlights a strong recovery in the steel sector driven by the "anti-involution" trend and emission reductions in Tangshan, suggesting that steel equities are undervalued [1] Summary by Sections Weekly Data - The SW Steel Index increased by 5.1% year-to-date, while the SW General Steel Index rose by 6.5% [3] - The price of rebar (HRB400 20mm) is at 3,180 CNY/ton, reflecting a weekly increase of 2.9% and a year-to-date increase of 6.7% [3] - Iron ore prices have shown a significant increase, with the Platts index at 96 USD/ton, up 20% year-to-date [3] Inventory - Total social inventory of five major steel products stands at 915 million tons, with a year-to-date increase of 20.7% [5] - Steel mill inventory is at 424 million tons, reflecting a year-to-date increase of 21.0% [5] - Port inventory of iron ore is at 13,882 million tons, with a year-to-date increase of 6.6% [5] Supply and Demand - The weekly output of five major steel products is projected to increase, indicating a potential rise in supply [10] - The average daily molten iron production is expected to remain stable, suggesting balanced demand [10] Profitability - The profitability rate of steel mills is currently at 18.6%, indicating a healthy margin for major players [14]

Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Insights - The company's stock option incentive plan targets 85 individuals, accounting for approximately 26.32% of the total workforce of 323 employees as of December 31, 2024 [1] - The performance targets for the incentive plan are set for the years 2025, 2026, and 2027, focusing on revenue growth and specific revenue milestones for physical AI products [2][3][4] - The company is concentrating on physical AI, aiming to create a comprehensive service platform that is expected to drive the intelligent upgrade of industrial manufacturing [5] - Continuous mergers and acquisitions are anticipated to integrate quality resources, which may accelerate the company's performance growth [6] Financial Forecasts - The company is projected to achieve revenues of 566.48 million, 788.01 million, and 1,073.86 million yuan for the years 2025, 2026, and 2027, respectively, representing year-on-year growth rates of 49.54%, 39.11%, and 36.27% [12] - The net profit attributable to the parent company is expected to reach 68.88 million, 102.37 million, and 142.02 million yuan for the same years, with growth rates of 66.18%, 48.62%, and 38.73% [12] - The earnings per share (EPS) are forecasted to be 0.77, 1.15, and 1.59 yuan for 2025, 2026, and 2027, respectively [12]

1. Report Industry Investment Rating No information provided in the content about the report industry investment rating. 2. Core Views of the Report - The trend of loose funds is strong, and there is no need to worry about short - term liquidity, but there may be sporadic disturbances at times such as tax payment periods [1]. - In the past week, the trading volume of trading desks was high, and the sentiment of funds to extend duration remained strong. The duration of medium - and long - term bond funds reached a new high this year, and there was a trend of extending duration in credit bonds, secondary bonds, and interest - rate bonds. In the future, the short - term market is driven by trading desks, so it is necessary to closely monitor the ebb and flow of buying in ultra - long non - active interest - rate bonds and long - term credit bonds [2]. 3. Summary by Relevant Catalogs 3.1 Liquidity Tracking 3.1.1 Central Bank Operations - In the past week (6/30 - 7/4), the central bank's open - market operations resulted in a net liquidity withdrawal of 13753 billion yuan. As of 7/4, the central bank's reverse - repurchase balance was 6522 billion yuan, significantly lower than on 6/30 but still higher than the seasonal level in previous years. In the next week (7/7 - 7/11), 6522 billion yuan of reverse - repurchases will mature, with the maturity pressure distributed as Monday > Tuesday > Wednesday > Thursday > Friday [9]. - In July, a total of 1.5 trillion yuan of MLF and outright reverse - repurchases will mature, including 3000 billion yuan of MLF, 7000 billion yuan of 3 - month outright reverse - repurchases, and 5000 billion yuan of 6 - month outright reverse - repurchases [10]. 3.1.2 Government Bond Issuance - In the past week, the net payment of government bonds was 341 billion yuan, with a net payment of - 401 billion yuan for treasury bonds and 742 billion yuan for local bonds. In the next week, the expected net payment of government bonds is 2511 billion yuan, with 1399 billion yuan for treasury bonds and 1112 billion yuan for local bonds. The net payment pressure is relatively large on Monday, about 2174 billion yuan, and relatively small from Tuesday to Friday [14]. - As of 7/4, the net financing progress of treasury bonds is 53.8%, with a remaining net financing space of 3.08 trillion yuan in 2025; the issuance progress of new local bonds is 50.3%, with a remaining issuance space of 2.58 trillion yuan; the issuance progress of refinancing special bonds is 89.8%, with a remaining issuance space of 204.1 billion yuan. The supply of government bonds is slow in July, and the issuance pressure is large in August and September in the third quarter [16][18]. 3.1.3 Bill Market - In the past week, the bill interest rates showed a divergent trend. The 3 - month direct - discount and transfer - discount interest rates of state - owned and joint - stock banks increased, while the 6 - month rates decreased. Seasonally, the current bill interest rates are still significantly weaker than the seasonal level, indicating that the recovery of credit demand is still slow [24]. 3.1.4 Fund Review - After the quarter - end, funds became significantly looser. From 7/2 - 7/4, the fund sentiment index stabilized in the range of 45 - 50. Most fund interest rates declined, and the fund prices moved closer to the policy interest rates. The term and market stratifications mostly converged [26][28][29]. - In the past week, the total trading volumes of DR/R/GC were 12.10 trillion yuan, 37.99 trillion yuan, and 107.87 million lots respectively. The trading volumes of DR001/R001/GC001 were 11.64 trillion yuan, 34.05 trillion yuan, and 93.67 million lots respectively. On 7/4, the overnight trading volume ratios were 97%, 91%, and 89% respectively, all higher than on 6/27 [35]. - The net lending of the banking system was basically stable, and the net lending of large - scale banks increased. The net borrowing demand of core non - banking institutions decreased slightly. In terms of maturity, large - scale banks mainly lent overnight funds, while funds and securities firms mainly borrowed overnight funds, and insurance and other products mainly borrowed 7 - day funds [39]. 3.1.5 Inter - bank Certificates of Deposit - In the past week (6/30 - 7/6), the total issuance of certificates of deposit was 243.7 billion yuan, with a net financing of - 2.08 billion yuan. The issuance scale decreased compared with the previous week, but the net financing scale increased. By entity, the issuance scale of inter - bank certificates of deposit was ranked as joint - stock banks > state - owned banks > city commercial banks > rural commercial banks. By maturity, the weighted issuance maturity increased significantly [46]. - In the past week, the issuance prices of certificates of deposit of joint - stock banks at various maturities decreased significantly. On 7/4, the yield to maturity of 1 - year AAA certificates of deposit was 1.5929%, down 4.21bps from 6/27. In the next three weeks, 510.5 billion yuan (7/7 - 7/13), 802.8 billion yuan (7/14 - 7/20), 1076.5 billion yuan (7/21 - 7/27), and 376.7 billion yuan (7/23 - 8/3) will mature respectively. The maturity pressure is large in late July [48][52]. 3.2 Institutional Behavior Tracking 3.2.1 Secondary Transactions - The funds' demand for credit bonds is stronger than that for interest - rate bonds, and the trend of extending the duration of credit bonds is obvious [56]. 3.2.2 Institutional Duration - On 7/4, the median of the 10 - day moving average of the duration of medium - and long - term bond funds was 3.96 years, further increasing compared with 6/27 (3.91 years). The 5 - day moving average of the trading duration of urban investment bonds, secondary bonds increased, while that of industrial bonds decreased [57][61]. 3.2.3 Institutional Leverage - In the past week, the calculated bond - market leverage ratio was 107.96%, slightly higher than the previous week (107.93%), and the upward trend slowed down [63].

- The report highlights the "WanDe Micro Cap Index" as a dynamic strategy index rather than a static one, with its returns driven by micro-cap style and daily rebalancing that generates a "reversal effect"[12] - The reversal effect is attributed to the liquidity spillover effect, which has been amplified by the shift in market participant structure since 2021, where individual investors gained pricing power over institutional investors, favoring smaller-cap stocks[12] - The report suggests that the trading heat for small-cap stocks is likely to continue in July, supported by marginal optimism in overseas markets and eased liquidity shocks from U.S. Treasury issuance[12] - The "Barra Style Factors" analysis indicates positive returns for fundamental-related factors, with a preference for value over growth, particularly BP value assets[23] - Transaction-related factors such as short-term momentum, long-term reversal, and low-volatility stocks are expected to deliver excess returns[23] - The report notes a shift in market preference from extreme small-cap styles to larger-cap styles, as evidenced by the positive returns of the size factor and the expanded drawdown of the non-linear size factor[23] - The weekly performance of style factors includes metrics such as turnover (0.2%), financial leverage (0.2%), earnings volatility (0.2%), and BP value (0.2%), among others[24] - Negative returns are observed for non-linear size (-0.2%) and volatility (-0.3%), indicating a divergence in market preferences[24]

Investment Rating - The investment rating for the company is "Buy" [6] Core Views - The main brand of the company is expected to stabilize and recover, with a significant improvement in sales trends anticipated in the upcoming quarters [2] - The expansion of the JD Outlet is expected to accelerate, with a strong long-term growth momentum [3] - The company is characterized by high dividend yields, with a stable performance in its main brand leading the industry [1] Summary by Sections Investment Highlights - The company is recognized as the leading men's apparel brand with high dividends, and its main brand is performing steadily, outpacing peers [1] Positive Surprises - The main apparel business is expected to stabilize and rebound, with a forecasted reduction in revenue decline for the main brand in Q4 2024 and Q1 2025, leading to a potential year-on-year revenue increase [2] - The JD Outlet's expansion is anticipated to accelerate in the second half of the year, with a significant number of new stores expected to open [3] Driving Factors - Improvement in the main brand's revenue is expected to enhance profit margins, leading to a steady increase in net profit and attractive dividend yields [4] - The accelerated opening of JD Outlet stores and the gradual refinement of the single-store model are expected to boost market confidence and valuation [4] Earnings Forecast - Revenue is projected to reach 22.3 billion, 24.8 billion, and 26.6 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 6.5%, 11.1%, and 7.4% [4] - Net profit is expected to be 2.41 billion, 2.66 billion, and 2.91 billion yuan for the same years, with growth rates of 11.7%, 10.4%, and 9.2% [4] Valuation Analysis - The company is expected to achieve a net profit exceeding 2 billion yuan in 2025, with a target price-to-earnings (PE) ratio of 14, leading to an estimated market value of around 30 billion yuan [5] - The new JD Outlet business is projected to contribute approximately 1 billion yuan to net profit within three years, with a target PE of 20, resulting in an estimated market value of around 20 billion yuan [5]