Report Industry Investment Rating - The report does not provide an industry investment rating. Core Viewpoints - Referring to the experience of Japan and South Korea during their technology transformation phases, the technology bull market did not significantly impact the bond market. Bond investors need not overly worry about the ongoing technology bull market in the equity market. The linkage between stock and bond markets is more of a short - term factor, and long - term bond market pricing should still consider fundamental factors [1][3][31]. Summary According to the Table of Contents 1. Overseas Experience of the Impact of the Technology Stock Bull Market on the Bond Market Japan: From "Trade - Oriented" to "Technology - Oriented" - After World War II, Japan implemented a "trade - oriented" economic strategy, achieving relatively high economic growth from 1956 - 1973. In the 1970s, due to the loss of labor dividends and the oil crisis, Japan shifted towards a technology - oriented economy [1][10]. - The government introduced a series of policies to support high - tech industries. The VLSI plan promoted the development of the semiconductor industry, leading to a technology stock bull market. From 1970 - 1985, the Nikkei 225 index rose from about 2300 to about 13000, and the information and communication industry index reached 31.75 in 1985, compared to 1 in January 1970 [13][14]. - From 1975 - 1985, the Japanese bond market was highly volatile, mainly due to the two oil crises in 1973 and 1980. The bond yield changed with inflation and policy interest rates, and the stock - bond seesaw effect was not significant. After 1980, there was a period of stock - bond double - bull [18]. South Korea: Comprehensive Promotion of Technology Transformation - South Korea's economic transformation was similar to Japan's, gradually shifting from labor - intensive to capital - intensive and then to technology - intensive. In 1986, it proposed a technology - oriented strategy and launched a series of plans to support high - tech industries [2][23]. - After 1986, the South Korean stock market entered two accelerated growth periods. In the first half of 1997, the stock market rebounded, led by the electrical and electronic equipment industry, while the national bond yield remained stable or declined, showing a simultaneous strengthening of stock and bond markets [2][26]. Comparison with China - China is currently in an important economic transformation stage, with the economic growth engine shifting from traditional industries to emerging industries, and the role of consumption in driving domestic demand increasing. China has formed a technology - led equity market bullish atmosphere [3][29]. - Similar to Japan and South Korea, the linkage between the stock and bond markets in China may be limited. The stock - bond seesaw effect in the third quarter was likely due to short - term factors, and the long - term bond market pricing depends on fundamental and policy factors [3][30].

Investment Rating - The investment rating for the company is "Buy" (maintained) [8] Core Views - The most challenging phase for the company may have passed, with optimism regarding the development of AI computing power [4] - The company's revenue for the first three quarters of 2025 reached 100.52 billion yuan, a year-on-year increase of 11.63%, while net profit attributable to shareholders decreased by 32.69% to 5.322 billion yuan [1][2] - The decline in domestic operators' capital expenditure has significantly impacted the company's performance, particularly in its network business, which accounted for 49% of revenue and had a gross margin of 53% in the first half of 2025 [1][3] Summary by Sections Operator Network - The domestic operator network market has seen a notable decline in capital expenditure, with a year-on-year decrease of 13.1% in Q3 2025 [3] - The pressure from declining capital expenditure is expected to ease, with projections indicating a decrease of approximately 9% for the full year 2025 [4] Computing Power Business - The computing power segment has experienced a significant year-on-year revenue growth of 180%, with server and storage revenue increasing by 250% [5] - The company has established close collaborations with major domestic internet companies, achieving large-scale commercial use of its intelligent computing servers [5] Home and Personal Business - The home and personal business segments have shown steady growth, with personal business revenue achieving double-digit growth [6] - The company has launched AI smartphones in collaboration with Doubao, integrating advanced AI capabilities into its products [6] Profit Forecast - The company is projected to achieve net profits of 7.6 billion yuan, 9 billion yuan, and 10.3 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding year-on-year growth rates of -9.8%, +19.0%, and +14.3% [13]

Market Overview - On October 29, the Shanghai Composite Index rose by 0.7%, the CSI 300 increased by 1.19%, the STAR 50 gained 1.18%, the CSI 1000 was up by 1.2%, the ChiNext Index surged by 2.93%, while the Hang Seng Index fell by 0.33% [4][5] - The best-performing sectors on October 29 were power equipment (+4.79%), non-ferrous metals (+4.28%), non-bank financials (+2.08%), basic chemicals (+1.53%), and steel (+1.26%). The worst-performing sectors included banks (-1.98%), conglomerates (-0.56%), food and beverage (-0.56%), textiles and apparel (-0.24%), and light industry manufacturing (-0.22%) [4][5] - The total trading volume for the A-share market on October 29 was 22,906.74 billion yuan, with a net inflow of 2.258 billion Hong Kong dollars from southbound funds [4][5] Key Recommendations - The report recommends Yongding Co., Ltd. (600105) based on its strong growth potential in the optical communication, overseas engineering, and automotive wiring harness sectors, driven by high-temperature superconducting materials and optical chip industries [6] - Despite short-term performance fluctuations mainly due to investment income, the long-term growth potential is supported by high-temperature superconducting materials and optical chip business [6] - The projected revenue for Yongding Co., Ltd. from 2025 to 2027 is 4,587.80 million yuan, 5,063.36 million yuan, and 5,747.82 million yuan, with growth rates of 11.59%, 10.37%, and 13.52% respectively. The net profit attributable to shareholders is expected to be 373.07 million yuan, 191.17 million yuan, and 226.42 million yuan, with growth rates of 507.46%, -48.76%, and 18.44% respectively [6] Important Insights - The strategy report suggests a balanced allocation approach for November, with a market view leaning towards large-cap stocks and value-oriented sectors [8] - The report indicates that the market's feedback mechanism is weakening, and upcoming regulations on public fund performance may further encourage style balance [8] - Key sectors to focus on include brokerage and banking, as well as industries experiencing upward trends such as communications (optical modules), electronics (storage), non-ferrous metals (copper), and basic chemicals [8][9]

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company's main business performance may have bottomed out, with a significant decline in revenue and net profit in the first three quarters of 2025 [1] - The report is optimistic about the growth potential of the CDMO business and the innovative drug pipeline, anticipating a recovery starting in 2026 [2] - The company's profitability is under short-term pressure due to business structure adjustments, but there is potential for a quick recovery in profits [3] Summary by Sections Performance - In the first three quarters of 2025, the company achieved revenue of 510 million yuan, a year-on-year decrease of 29.33%, and a net profit attributable to shareholders of 6.12 million yuan, down 95.68% year-on-year [1] Growth Potential - 2025 is viewed as a strategic adjustment year for the company, with expectations for the CDMO business to contribute significantly in the next two years. The company has completed 617 project verifications and registered 461 projects as of June 30, 2025 [2] - The company has 12 products expected to be included in the national procurement list, which could lead to significant revenue growth in 2026 [2] Profitability - The company's gross margin and net margin have significantly decreased due to declining demand in the generic drug sector and increased investments in innovative drug development. However, a recovery in profitability is anticipated as the supply-demand balance stabilizes [3] Financial Forecast and Valuation - The company is projected to achieve revenues of 711.24 million yuan in 2025, with a year-on-year decline of 11.31%, followed by growth in subsequent years. The net profit is expected to be 49.88 million yuan in 2025, with a significant increase in 2026 and 2027 [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [4] Core Insights - The company's resilience in the nutrition sector is highlighted, with Q3 performance exceeding expectations. For the first three quarters of 2025, revenue reached 16.642 billion yuan, a year-on-year increase of 5.45%, while net profit attributable to shareholders was 5.321 billion yuan, up 33.37% year-on-year. However, Q3 revenue was 5.541 billion yuan, down 6.66% year-on-year and 2.11% quarter-on-quarter, with net profit at 1.717 billion yuan, down 3.80% year-on-year and 0.35% quarter-on-quarter [1][2] Summary by Sections Revenue and Profitability - In Q3 2025, the average prices for key products such as VA, VE, VC, and methionine were 63.3, 64.3, 19.2, and 22.3 yuan per kilogram, showing significant year-on-year declines of -67.4%, -48.7%, -27.5%, and an increase of +7.9% respectively. Despite the price drops, the company's gross margin was 44.86%, up 1.3 percentage points year-on-year, indicating strong profitability [2] Market Demand and Supply - The demand for methionine is expected to remain robust, with a projected global market growth of around 6% annually, translating to an increase of over 100,000 tons per year. The company plans to expand its solid methionine production capacity by 70,000 tons and has initiated trial production of an 180,000 tons/year liquid methionine project [3] Earnings Forecast and Valuation - The forecast for net profit attributable to shareholders for 2025-2027 is 6.61 billion, 7.04 billion, and 8.10 billion yuan respectively, with corresponding EPS of 2.15, 2.29, and 2.64 yuan. The current price corresponds to P/E ratios of 10.86, 10.20, and 8.86 for the respective years [4]

Market Overview - On October 28, the Shanghai Composite Index fell by 0.22%, the CSI 300 decreased by 0.51%, the STAR Market 50 dropped by 0.84%, the CSI 1000 declined by 0.22%, the ChiNext Index decreased by 0.15%, and the Hang Seng Index fell by 0.33% [3][4] - The best-performing sectors on October 28 were Comprehensive (+2.06%), Defense and Military Industry (+1.07%), Transportation (+0.24%), Textile and Apparel (+0.19%), and Computer (+0.13%). The worst-performing sectors were Non-ferrous Metals (-2.72%), Beauty and Personal Care (-1.51%), Steel (-1.35%), Construction Decoration (-0.88%), and Coal (-0.79%) [3][4] - The total trading volume of the A-share market on October 28 was 21,653 billion, with a net inflow of 2.258 billion HKD from southbound funds [3][4] Key Insights - From January to September 2025, the profit growth of industrial enterprises maintained a recovery trend, primarily influenced by a low base effect. The impact of "anti-involution" remains to be observed, with its sustainability and intensity dependent on substantial supply-side policy effects. Overall, "anti-involution" may support a moderate recovery in industrial profits, but its strength is yet to be determined [5] - Industrial profits are significantly affected by base effects, indicating that the current readings may not fully reflect underlying economic conditions [5] - High-tech manufacturing has emerged as a crucial driver for the high-quality development of industrial enterprises [5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Insights - The company achieved revenue of 1.453 billion yuan in Q3 2025, representing a year-over-year increase of 25% but a quarter-over-quarter decrease of 11%. The decline is attributed to the delivery cycle affected by the domestic IDC launch rhythm. The net profit attributable to the parent company was 183 million yuan, up 8% year-over-year and 9% quarter-over-quarter, with a gross margin of 29.4%, an increase of 3.43 percentage points sequentially [1] - The company has made significant progress in overseas markets, with major client Google achieving a breakthrough. The company's BHS-AP platform products have been validated by Intel, and its UQD quick connector was included in NVIDIA's MGX ecosystem. The company is actively expanding its overseas market presence, particularly in the liquid cooling sector, anticipating benefits from the growing demand for AI data centers [2] - The domestic supernode market is expected to explode, creating opportunities for liquid cooling demand. Major domestic manufacturers are accelerating the deployment of supernode solutions, with significant power consumption that necessitates liquid cooling solutions. The company, as a leader in liquid cooling, is poised to benefit from this trend [3] - The company maintains a solid leadership position in the liquid cooling sector, leveraging its "full-chain" platform advantages and "end-to-end" product layout to collaborate deeply with data center owners, IDC operators, and major internet companies [4] - The company is projected to achieve revenues of 6.32 billion yuan, 9.34 billion yuan, and 12.80 billion yuan for the years 2025 to 2027, with year-over-year growth rates of 38%, 48%, and 37%, respectively. The net profit attributable to the parent company is expected to be 670 million yuan, 1.09 billion yuan, and 1.58 billion yuan for the same period, with corresponding growth rates of 48%, 63%, and 45% [5]

Investment Rating - The investment rating for the company is "Accumulate" [4] Core Insights - The company has demonstrated significant cost control effectiveness, resulting in resilient operating performance despite external pressures [1][2] - The company is expected to benefit from its strong market position, digital transformation initiatives, and the "new carrier" model, which aligns with trends in industry globalization and supply chain integration [2] Financial Performance Summary - For the first three quarters of 2025, the company reported operating revenue of approximately 750.38 billion yuan, a year-on-year decrease of 12.6%, and a net profit attributable to shareholders of 26.79 billion yuan, down 5.2% year-on-year [1][8] - The gross profit margin improved to approximately 5.71%, up 0.83 percentage points from 4.88% in the same period last year, indicating strong cost management and business structure optimization [1] - Investment income for the first three quarters reached 1.632 billion yuan, an increase of 11.18% year-on-year, although core investment income from joint ventures decreased by 24.37% [1] Business Segment Performance - The professional logistics segment showed steady growth, with contract logistics, project logistics, and chemical logistics volumes increasing by 2.1%, 2.1%, and 6.3% respectively [1] - The sea freight agency business performed well, with a volume increase of 7.6%, while air freight and rail agency volumes declined by 11.8% and 12.5% respectively due to strategic adjustments in response to external policy changes [1] - The cross-border e-commerce logistics business saw a significant contraction, with volumes dropping by 71.3%, while the logistics e-commerce platform business grew by 55.4% [1]

Investment Rating - The investment rating for the company is "Buy" [8] Core Insights - The company's performance in Q1-Q3 2025 shows steady growth, with revenue and net profit increasing by 8.3% and 8.4% year-on-year, respectively, which is an improvement from the first half of 2025 [2][6] - The bank's loan growth remains robust, with a year-on-year increase of 17.9% in Q3 2025, although the growth rate has slowed slightly compared to Q2 2025 [3] - The net interest margin has rebounded, increasing by 6 basis points to 1.74% in Q3 2025, primarily due to improvements in funding costs [4] - The quality of assets has shown improvement, with the non-performing loan ratio stable at 0.76% and the provision coverage ratio rising to 376% [5] Summary by Sections Financial Performance - For Q1-Q3 2025, the company's revenue and net profit grew by 8.3% and 8.4% year-on-year, respectively, with growth rates improving by 0.4 percentage points and 0.2 percentage points compared to H1 2025 [2] - The bank's cost-to-income ratio decreased by 2.8 percentage points to 30.68% [2] Loan Growth - In Q3 2025, the total loans increased by 17.9% year-on-year, with corporate loans continuing to rise [3] Interest Margin - The net interest margin for Q3 2025 increased by 6 basis points to 1.74%, benefiting from a decrease in the cost of liabilities [4] Asset Quality - The non-performing loan ratio remained stable at 0.76%, while the provision coverage ratio improved by 2 percentage points to 376% [5] - The non-performing loan generation rate decreased by 10 basis points to 1.19% for Q1-Q3 2025 [5] Earnings Forecast and Valuation - The forecast for net profit growth from 2025 to 2027 is 8.48%, 7.30%, and 7.07%, respectively, with corresponding book values per share of 33.72, 37.76, and 41.76 yuan [6] - The target price is set at 35.10 yuan per share, indicating a potential upside of 26% from the current price [6]

Market Overview - On October 27, the Shanghai Composite Index rose by 1.18%, the CSI 300 increased by 1.19%, the STAR 50 gained 1.5%, the CSI 1000 was up by 1.03%, the ChiNext Index rose by 1.98%, and the Hang Seng Index increased by 1.05% [3][4] - The best-performing sectors on October 27 were telecommunications (+3.22%), electronics (+2.96%), comprehensive (+2.68%), non-ferrous metals (+2.39%), and steel (+1.92%). The worst-performing sectors were media (-0.95%), food and beverage (-0.2%), and real estate (-0.11%) [3][4] - The total trading volume for the A-share market on October 27 was 23,566 billion yuan, with a net inflow of 2.873 billion Hong Kong dollars from southbound funds [3][4] Key Insights - The report focuses on the real estate sector, emphasizing a preference for "light" and "good" investments [5] - The market view indicates that developer valuations may fluctuate due to policy impacts [5] - There is a shift in recommendation for 2026, moving away from developers to favor management and property operation businesses [5] - The driving factors include ongoing pressure on the real estate industry's fundamentals, with companies having low debt and strong cash flow presenting a higher safety margin [5] - The report suggests a divergence from the market's focus on residential development, advocating for investment opportunities in sub-sectors of real estate [5]