Report Industry Investment Rating No information provided in the content. Core View of the Report The report is the first in a series of special reports on the SMC system, introducing the basic theory of single - cycle market structure. SMC is a new technical analysis and trading methodology. The core of the SMC system is market structure, which determines the price trend direction. The core logic of the SMC strategy is to enter the market relying on strong points and aim at weak points as targets. Four key conclusions are derived from relevant concepts, which are the important cornerstones for the subsequent development of the theory [2][3][10]. Summary According to the Directory 1. Introduction: SMC System Introduction - SMC (Smart Money Concepts) is a new, complete, and systematic technical analysis and trading methodology, originating from ICT. It became popular after 2020, especially in the foreign exchange and cryptocurrency trading communities [2][6]. - The basic idea of SMC is to follow the trading behavior of "smart money" to achieve high - probability or high - profit - loss ratio trading. However, the so - called "smart money" may not exist in reality, and its effectiveness is explained by the more fundamental ICT theory [2][6]. - The advantages of the SMC system include a complete theoretical system, "naked K analysis" without relying on technical indicators, relatively less subjective components and high degree of regularization, and a complete trading system with clear entry, exit, and target frameworks [2][7]. - The SMC system consists of five modules: market structure, institutional supply and demand, order flow, liquidity, and trading strategies. Market structure is the core, used to determine the price trend direction, and other parts revolve around it [8]. 2. Basic Concepts and Expectations of Market Structure - Market structure refers to a series of high and low points and the bands formed between them, which can be divided into upward and downward structures according to the arrangement of high and low points [11]. - Structure break (BOS) means any of the HH, HL, LH, LL in the market structure is broken. If the HL in an upward structure or the LH in a downward structure is broken, a trend reversal is expected, but this is only a probability - based expectation [14][17]. - The generation of high and low points: In an upward structure, HH is confirmed after a certain - amplitude callback, while HL is objectively determined after the HH is broken. The situation in a downward structure is similar [18][21]. - After a structure break, a callback at the same level as the structure is expected, which helps answer questions about chasing high after a new high is broken [21][22]. - Swing high, swing low, and swing range: Swing high and low are the latest high and low points at a certain moment, and the swing range is the area between them. They are mainly used to assist in judging structure breaks and introducing the concepts of strong and weak points [25]. - Strong points and weak points: When a structure break occurs, the unbroken swing point is the strong point, and the broken one is the weak point. Strong points are expected not to be broken, and weak points are expected to be broken. The core logic of the SMC strategy is to enter the market relying on strong points and aim at weak points [27][31]. 3. Premium and Discount - For the callback band after a structure break, the mid - point of the previous band price range is the fair value, the area above 50% is the premium area, and the area below 50% is the discount area. They are used to assist in judging the general areas for long and short positions and when the callback band ends [32]. 4. Summary - The report mainly introduces the basic theory of single - cycle market structure, with the core logic of the SMC strategy being to enter the market relying on strong points and aim at weak points. Four key conclusions are derived: trend reversal is expected when a turning point is broken; a callback at the same level as the structure is expected after a structure break; strong points are expected not to be broken, and weak points are expected to be broken; the probability of the end of the callback band increases as it approaches the strong point, especially when the callback amplitude reaches more than 50% [35][36][39].

Investment Rating - The report maintains a "Strong Buy" rating for the company [2] Core Views - The company has exceeded expectations in Q2, with a forecasted net profit attributable to shareholders of 1.4-1.45 billion, representing a year-on-year increase of 50%-56% [1] - The growth momentum is expected to continue into Q3, driven by high demand for AI-related products and an increase in production capacity [5] - The company is experiencing a significant improvement in product structure and profitability due to the rapid increase in high-speed material sales [5] Financial Data and Valuation - Total revenue is projected to grow from 16.586 billion in 2023 to 44.528 billion by 2027, with a compound annual growth rate (CAGR) of approximately 20% [1] - Net profit is expected to rise from 1.164 billion in 2023 to 5.674 billion in 2027, reflecting a strong growth trajectory [1] - The company's price-to-earnings (PE) ratio is projected to decrease from 68.7 in 2023 to 14.1 in 2027, indicating improving valuation metrics [1] Market Performance - The company's stock has shown strong absolute performance, with a 46% increase over the past 12 months [4] - The relative performance against the market index has also been positive, with a 30% outperformance over the same period [4] Future Outlook - The company is expected to maintain high order visibility and production capacity utilization in Q3, with a focus on high-end products in AI computing and automotive sectors [5] - The report anticipates continued growth in market share for high-speed materials, supported by strong demand from major clients [5]

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [4][8]. Core Views - The company's Q2 performance significantly exceeded market expectations, driven by product structure optimization, increased utilization rates, and improved yield rates, leading to enhanced gross margins [1]. - The company is expected to increase its AI capital expenditures, actively expanding its overseas computing power capabilities, which may lead to significant breakthroughs [8]. - The long-term outlook remains positive, with anticipated growth driven by hardware innovations and the demand for AI-related products [8]. Financial Data and Valuation - The projected total revenue for 2025 is 421.68 billion, with a year-on-year growth of 20% [3]. - The projected net profit for 2025 is 44.99 billion, reflecting a 24% year-on-year increase [3]. - The earnings per share (EPS) for 2025 is estimated at 1.94 yuan, with a corresponding price-to-earnings (PE) ratio of 20.3 [3][8]. Performance Highlights - Q2 revenue reached 82.9 billion, a year-on-year increase of 28.7% and a quarter-on-quarter increase of 2.5% [1]. - The net profit for Q2 was approximately 7.41 billion, representing a year-on-year increase of 158.1% and a quarter-on-quarter increase of 51.8% [1]. - The company’s gross margin is expected to improve, with a projected gross margin of 22.0% for 2025 [3].

Investment Rating - The investment rating for the company is "Accumulate" [3] Core Views - The company is expected to achieve a revenue of 3.65 to 3.88 billion yuan in the first half of 2025, representing a year-on-year growth of 85% to 97%. The net profit attributable to shareholders is projected to be between 510 to 550 million yuan, with a year-on-year increase of 432% to 471% [1] - The company's Q2 performance shows significant growth driven by AI server and high-speed switch orders, with Q2 revenue estimated at 2.186 billion yuan, a year-on-year increase of 100.9% and a quarter-on-quarter increase of 38.4% [6] - The company is expanding its AI-PCB capacity and accelerating the introduction of more ASIC customers, which is expected to enhance its market share in the ASIC supply chain and high-speed switch market [6] Financial Data and Valuation - The total revenue for 2023 is projected at 3.273 billion yuan, with a year-on-year decrease of 7%. However, revenue is expected to grow significantly in the following years, reaching 8.202 billion yuan in 2025, a growth of 75% [2][10] - The net profit for 2025 is estimated at 1.321 billion yuan, reflecting a year-on-year growth of 298% [2][10] - The company's PE ratio is projected to decrease from -1554.2 in 2023 to 29.4 in 2025, indicating improving profitability [2][10] Stock Performance - The company's stock has shown strong absolute performance over the past 12 months, with a 73% increase [5] - The relative performance against the CSI 300 index has also been positive, with an increase of 58% over the same period [5] Key Financial Metrics - The company has a total market capitalization of 38.8 billion yuan and a current share price of 46.7 yuan [3] - The return on equity (ROE) is reported at 11.2%, indicating a solid return on shareholders' equity [3]

Investment Rating - The report maintains a recommendation for the construction materials sector, indicating a positive outlook for performance recovery in categories such as cement and fiberglass [2]. Core Insights - The ongoing "anti-involution" campaign is expected to improve the profitability of leading companies in the construction materials sector, particularly in the consumer segment [6][13]. - Cement prices are experiencing a slight downward trend due to high temperatures and rainy seasons affecting demand, with a recent average price drop of 0.4% [10][21]. - The fiberglass market shows stable pricing for non-alkali roving, while electronic yarn prices are expected to rise for high-end products [12][14]. Summary by Sections Industry Scale - The construction materials sector comprises 96 listed companies with a total market capitalization of 817.2 billion [2]. Industry Dynamics - Cement: The national average cement price has decreased by 0.4%, with significant drops in regions like Anhui and Hubei [10][21]. - Float Glass: The average price is 1173 yuan/ton, reflecting a slight decrease of 0.24% [11]. - Fiberglass: The market for non-alkali roving remains stable, while electronic yarn prices are expected to increase [12]. Consumer Construction Materials - The consumer market is showing signs of recovery, with a 3.0% year-on-year increase in retail sales of construction and decoration materials from January to May 2025 [13]. - The report highlights the importance of leading companies with strong distribution channels and healthy cash flow [13]. Recommended Stocks - The report recommends several companies, including Weixing New Materials, Keda Manufacturing, and Mona Lisa, for their strong market positions and growth strategies [14][15][16].

Investment Rating - The report maintains a positive outlook on the banking sector, indicating a preference for absolute and relative returns in the long term [3][5]. Core Insights - The report highlights that the growth rate of M1 has rebounded significantly, driven by three main factors: low base effect, increased fiscal efforts, and strict payment terms [3][12]. - The implementation of the "Regulations on Payment of Funds to Small and Medium-sized Enterprises" is expected to reduce payment delays from large enterprises to SMEs, thereby enhancing liquidity through short-term loans and bond issuance [2][3]. - Despite the positive trends, the report notes that the current M1 growth rate still lags behind the growth rates of social financing, M2, and nominal GDP, indicating a need for further improvement in economic vitality [3][12]. Summary by Sections Financial Data Analysis - The report discusses the financial data released by the central bank for June 2025, noting that the growth rates of social financing, credit, M2, and M1 align with previous forecasts, with M1 growth exceeding expectations [1][3]. - M1's growth rate for June 2025 is reported at 4.6%, a significant increase from 2.3% in May 2025 [12]. Policy Impact - The new regulations effective from June 1, 2025, mandate timely payments from large enterprises to SMEs, which is expected to convert accounts payable into short-term loans, thus improving liquidity in the market [2][3]. - The report emphasizes that these regulations will help reduce the overall payment delay chain in the economy, enhancing the liquidity of SMEs [2][3]. Future Outlook and Recommendations - The report suggests that the banking sector will benefit from ongoing fiscal efforts, particularly if more resources are directed towards social welfare areas such as education and healthcare [3]. - It recommends a balanced investment strategy focusing on banks with superior free cash flow and excess provisions, indicating a favorable long-term return potential [3][5].

Investment Rating - The report maintains a "Buy" recommendation for the superconducting materials industry, particularly focusing on high-temperature superconductors [2]. Core Insights - The breakthrough in high-temperature superconducting wire technology is expected to advance the commercialization of Tokamak nuclear fusion devices, which are the mainstream technology for nuclear fusion globally [1][9]. - The market for high-temperature superconducting materials is projected to grow at a CAGR of over 20% from 2023 to 2028, with the market size expected to reach $2.15 billion by 2028, up from $850 million in 2023 [5][28]. - The competitive landscape for second-generation high-temperature superconducting wires is favorable, with key suppliers including Shanghai Superconductor and Eastern Superconductor, which hold significant market shares [5][29]. Summary by Sections 1. What are Superconductors and Superconducting Materials? - Superconducting materials exhibit zero electrical resistance and the ability to expel magnetic fields under certain conditions, significantly enhancing the magnetic field strength in Tokamak devices, thus reducing construction costs [9][10]. 2. Composition, Barriers, and Applications of Superconducting Magnets - Superconducting magnets constitute about 30% of the cost of Tokamak devices, with superconducting wires being the primary cost component [34]. - The main technical barriers in superconducting magnet manufacturing include material performance, conductor technology, winding techniques, and protection against quenching [38]. 3. Company Analysis in the Superconducting Sector - Key players in the superconducting wire segment include: - **Western Superconductor**: Leading in low-temperature superconducting materials and the only supplier of NbTi wire for ITER in China [46]. - **Shanghai Superconductor**: A leader in high-temperature superconducting wire with an IPO in progress, holding over 80% market share domestically [50]. - **Eastern Superconductor**: A subsidiary of Yongding Co., focusing on high-temperature superconducting wire production [64]. - **Lianchuang Optoelectronics**: Engaged in high-temperature superconducting magnet production and has secured contracts for significant projects [69]. - **Xue Ren Co. and Ice Wheel Environment**: Suppliers of helium gas compression systems essential for low-temperature superconducting applications [71][74].

Investment Rating - The report maintains a recommendation for the chemical industry, indicating a positive outlook for the sector [5]. Core Views - The report highlights significant price increases in Vitamin B1 (+12.82%) and fatty alcohols (+8.16%), suggesting a focus on companies expected to show substantial quarter-over-quarter growth in Q2 [3][4]. - The overall chemical sector saw a 0.80% increase in the second week of July, lagging behind the Shanghai Composite Index, which rose by 1.40% [13]. - The dynamic PE ratio for the chemical sector is reported at 25.37 times, which is lower than the average PE of 6.89% since 2015 [13]. Industry Performance - In the second week of July, 23 sub-industries within the chemical sector experienced growth, while 9 sub-industries declined. The top five performing sub-industries included fiberglass (+8.73%) and synthetic leather (+8.34%) [17]. - The report notes that the chemical sector's performance is characterized by a mix of price increases and decreases across various products, with significant fluctuations in inventory levels for key products [50]. Price and Spread Trends - The report identifies the top five products with the highest price increases: Vitamin B1 (+12.82%), fatty alcohols (+8.16%), and dichloropropane (+8.11%) [22]. - Conversely, the largest price declines were seen in liquid chlorine (-48.51%) and hydrochloric acid (-8.29%) [22]. - The report also highlights significant changes in price spreads, with ethylene spreads increasing by 816.67% [32]. Inventory Changes - Notable inventory changes include a 15.88% increase in polyester filament and a 10.08% increase in polyester chips [50].

Investment Rating - The report assigns an "Accumulate" investment rating for the company [2][7]. Core Viewpoints - The company is a leading domestic AIoT SoC chip manufacturer with a broad range of applications across various industries. The flagship products and new releases have driven a continuous increase in market share, contributing to strong annual performance growth. The company is expected to benefit from the explosive growth of edge AI applications in sectors such as automotive electronics, machine vision, industrial applications, and robotics [6][66]. - The company has established long-term partnerships with thousands of terminal customers, including major players like BYD, Xiaomi, and Lenovo, which enhances its market position [6][18]. - The company has maintained a stable R&D investment of around 20% of revenue for over a decade, which has solidified its core competitiveness in AIoT technology, algorithms, and products [6][27]. Summary by Sections Company Overview - Founded in 2001, the company specializes in the design, research, and sales of intelligent application processor SoCs and peripheral chips. It has a rich product matrix covering automotive electronics, machine vision, and industrial applications, making it one of the most diversified AIoT product line manufacturers in China [14][18]. Financial Performance - The company reported a revenue of 3.136 billion yuan in 2024, a year-on-year increase of 47%. The net profit attributable to shareholders was 595 million yuan, up 341% year-on-year. For the first half of 2025, revenue is expected to reach 2.045 billion yuan, representing a 64% increase year-on-year, with net profit projected between 520 million and 540 million yuan, reflecting a year-on-year growth of 185% to 195% [6][19][66]. Market Opportunities - The report highlights significant growth opportunities in edge and on-device AI applications, driven by the open-sourcing of AI large model technologies. The automotive electronics sector is expected to see a surge in demand for SoC computing power due to the increasing complexity of smart cockpit features [30][33]. - The machine vision market is projected to grow at a CAGR of approximately 20% from 2024 to 2028, driven by advancements in AI and industrial automation [33][36]. Product Development - The company is actively developing a full range of AIoT SoC chip platforms, including high-end, mid-high-end, mid-range, and entry-level products. The flagship RK3588 chip continues to gain traction, with several new products launched in 2024, including RK3576 and RK2118 [6][49][66]. - The company is also focusing on enhancing its AI algorithms and software solutions, which are expected to improve the performance of its hardware products in various applications [66]. Future Projections - The company is projected to achieve revenues of 4.311 billion yuan, 5.539 billion yuan, and 6.943 billion yuan in 2025, 2026, and 2027, respectively, with year-on-year growth rates of 37%, 29%, and 25%. The net profit attributable to shareholders is expected to be 1.055 billion yuan, 1.339 billion yuan, and 1.734 billion yuan for the same years, with growth rates of 77%, 27%, and 29% [7][66].

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2] Core Views - The company is acquiring a 99.23% stake in Guozi Robotics for 398 million yuan, which will enhance its smart logistics capabilities without impacting its financial position [1] - The company has a strong historical performance in the intelligent logistics sector, being a leader in the domestic market with over 1,000 implemented projects [5] - The forklift industry is showing signs of recovery, with a 9.33% year-on-year increase in sales from January to May 2025, indicating a stable upward trend in the company's core business [5] - The acquisition is expected to strengthen the company's competitive edge in smart logistics and reshape the industry landscape [5] - Revenue projections for 2025-2027 are 177.44 billion, 198.54 billion, and 223.85 billion yuan, with net profits of 22.36 billion, 24.95 billion, and 27.82 billion yuan respectively [5] Financial Data Summary - Total revenue for 2023 is projected at 16.27 billion yuan, with a year-on-year growth of 13% [7] - The company expects to achieve a net profit of 1.72 billion yuan in 2023, reflecting a 74% increase from the previous year [14] - The company's return on equity (ROE) is projected to be 19.6% [2] - The asset-liability ratio is at 35% [2] - The earnings per share (EPS) for 2025 is estimated at 1.71 yuan, with a price-to-earnings (PE) ratio of 12.3 [7][14]