Summary of the Conference Call on Industrial Silicon Industry Overview - The conference focused on the industrial silicon sector, particularly its current market conditions and future outlook, led by an expert from Honglian Futures [1] - The overall sentiment in the renewable energy sector, including industrial silicon, is positive due to recent policy support and recovery from previous undervaluation [1] Key Points on Industrial Silicon - **Market Trends**: Industrial silicon prices have been on a downward trend since their listing, influenced by weak fundamentals and significant price differences observed in futures contracts [2] - **Cost Structure**: The primary cost for industrial silicon production is electricity, with silicon stone being the main raw material. The price fluctuations of silicon stone have a limited impact on overall production costs [2][3] - **Production Regions**: Major production areas for industrial silicon are Xinjiang, Yunnan, and Sichuan, with Xinjiang accounting for nearly 50% of the total production capacity [3] - **Seasonal Production Patterns**: Production in Yunnan and Sichuan is seasonal, with most operations occurring during the wet season when electricity costs are lower [3][4] - **Profitability Issues**: Many producers are currently facing losses due to low prices, with some companies in Sichuan still producing to fulfill prior orders despite financial pressures [5][6] Supply and Demand Dynamics - **Supply Constraints**: Industrial silicon production is expected to decrease as the industry enters the dry season, with a projected reduction of around 50,000 tons in November and December [6][7] - **Production Capacity**: The cumulative production for the first three quarters was approximately 3.4 million tons, nearing last year's total production of 3.8 million tons [6] - **Future Capacity Plans**: Many companies are delaying new capacity investments due to current market conditions, with significant projects in Inner Mongolia and Sichuan facing postponements [7][8] Demand Insights - **Demand from Downstream Industries**: The primary demand for industrial silicon comes from the photovoltaic (PV) sector, particularly from polysilicon production, which has seen fluctuating demand due to market oversupply [8][9] - **Polysilicon Production Trends**: Polysilicon production has doubled compared to the previous year, but recent price declines have led to production cuts in the sector [8][9] - **Inventory Levels**: Current inventory levels for industrial silicon are relatively high, which may exert downward pressure on prices [11][12] Price Outlook - **Short-term Price Predictions**: Industrial silicon prices are expected to remain low in the short term due to high inventory and weak demand, with potential for slight recovery depending on market conditions [13][21] - **Long-term Market Health**: The overall health of the industrial silicon market is anticipated to improve as new policies and production adjustments take effect, leading to a more balanced supply-demand scenario by 2025 [14][18] Additional Considerations - **Impact of Policy Changes**: Future policies regarding the photovoltaic sector may influence industrial silicon demand positively, despite short-term challenges [17][18] - **Cost Competitiveness**: The cash costs for industrial silicon production vary, with some companies managing to maintain profitability despite the current price environment [19][20] This summary encapsulates the key insights from the conference call regarding the industrial silicon market, highlighting the interplay between supply, demand, and pricing dynamics.

Investment Rating - BOCHU is rated as "Buy" with a new price objective (PO) of RMB 235, up from RMB 201, indicating an upside potential of 18% [6] - Han's Laser is rated as "Neutral" with a new PO of RMB 24, up from RMB 21, indicating a 7% upside potential [6] Core Insights - The laser sector in Greater China is expected to benefit from equipment upgrades and liquidity easing, with a projected growth in the factory automation (FA) market of +4.0% in 2025, recovering from a 5.5% decline in 2024 [1] - BOCHU is anticipated to gain market share due to its strong R&D capabilities and the rising demand for laser equipment and welding robots, leading to revenue and earnings growth [2][7] - Han's Laser's revenue growth is expected to be supported by equipment upgrades, but the demand from the new energy sector remains weak, leading to a modest profit growth estimate of +6% YoY in 2024 [3][11] Summary by Sections BOCHU - Revenue estimates for 2024, 2025, and 2026 have been raised by 1%, 11%, and 11% respectively, reflecting increased demand for laser equipment [2][7] - Earnings estimates for the same years have been adjusted upwards by 1%, 8%, and 9% [2] - The new price objective of RMB 235 is based on an average of DCF and P/E valuation methodologies [2][7] Han's Laser - Revenue growth is projected to be supported by equipment upgrades, but the company faces challenges due to weak demand in the new energy sector [3][11] - The stock is currently trading at 23x 2025E P/E, close to its historical average, indicating that recent positives are already priced in [3][11] - A better visibility on order growth from the consumer electronics business is needed for a potential re-rating [3][11] Financial Projections - For BOCHU, consolidated sales are projected to grow from RMB 1,903 million in 2024E to RMB 2,688 million in 2025E, reflecting a growth rate of 10.8% [8] - Han's Laser's net income is expected to grow from RMB 944 million in 2024E to RMB 1,286 million in 2025E, indicating an 8.1% growth [8][13]

Summary of the Conference Call Industry Overview - The discussion focuses on the mechanical industry and the industrial gas sector, highlighting the investment logic within these sectors [1] Key Points on Mechanical Industry - The investment logic for the mechanical industry is based on three main arguments presented by the team [1] - The Chinese equipment manufacturing industry is transitioning from its past state, indicating a shift in market dynamics and opportunities [1] Additional Important Content - The call emphasizes the importance of understanding the broader context of the mechanical industry to identify potential investment opportunities [1]

Investment Rating - The report maintains a Buy rating on CSCI and CRG, and a Neutral rating on CCCC for China infrastructure constructors. For rail equipment suppliers, CRRC is rated higher than Times Electric and CRSC. In the construction machinery supply chain, Hengli and Sany are rated as Buy, while Zoomlion is rated Neutral [1][3][6]. Core Insights - The Ministry of Finance (MOF) of China announced policies to mitigate local government debt risks and stabilize the property market, which is expected to positively impact infrastructure constructors and rail equipment suppliers by providing more funding for accounts receivable (AR) and initiating new projects [1][3]. - The lack of specific budget details from the MOF may lead to a short-term correction in share prices, presenting a potential buying opportunity for investors [1][3][6]. - The report highlights a significant increase in outstanding AR for constructors in the first half of 2024 compared to the same period in 2023, indicating liquidity issues among local governments [3][6]. Summary by Sections Local Government Debt and Liquidity - The MOF's capacity to issue more bonds and increase the fiscal deficit is noted, although specific bond sizes were not disclosed. This indicates a commitment to addressing local debt issues, which could enhance liquidity for local governments [3][6]. - The report emphasizes that if local government debt issues are not resolved, it could lead to increased provisions for bad debts and delays in AR turnover, particularly affecting constructors [3][6]. Revenue Trends - Most state-owned enterprise (SOE) constructors reported revenue misses in Q2 2024, with CCCC experiencing a 2-3% decline despite a 9% growth in order growth during the same period [6]. - The report illustrates a trend of declining revenue growth among major SOE constructors in Q2 2024 compared to Q1 2024, with the exception of CSCI [6].

工业互联网典型安 解决方案案例汇编 (2023年) 牵头编写单位：中国移动通信有限公司 工业互联网产业联盟（All） 2024年6月 . OT Limited in the con 工业互联网典型安全解决方案 案例汇编 (2023) 牵头编写单位：中国移动通信有限公司 工业互联网产业联盟（AII） 2024 年 6 月 I II 西 明 本报告所载的材料种信息，包括但不限于文本、图片、 数据、观点、建议，不构成法律建议，也不应替代律师意见。 本报告所有材料或内容的知识产权归工业互联网产业联盟 所有（注明是引自其他文献的内容除外），并受法律保护。 如需转载，需联系本联盟并获得授权许可。未经授权许 可，任何人不得将报告的全部或部分内容以发布、转载、汇 编、转让、出售等方式使用，不得将报告的全部或部分内容 通过网络方式传播，不得在任何公开场合使用报告内相关描 述及相关数据图表。违反上述声明者，本联盟将追究其相关 法律责任。 工业互联网产业联盟 联系电话：010-62305887 邮箱： aii@caict.ac.cn I II 前 工业互联网作为新一代信息技术与制造业深度融 合的产物，通过对人、机、物的全面互联，构 ...

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The report emphasizes the integration of computing and networking technologies, highlighting the emergence of computing networks as a new infrastructure that supports the digital transformation of traditional industries and the development of the digital economy [5][10][41]. Summary by Sections 1. Introduction - The industrial internet has developed over the past decade, transitioning from concept to application deployment, with computing networks emerging as a new direction for the integration of network and computing technologies [10][11]. 2. Background and Trends of Computing Networks - The demand for high-quality network connections and powerful computing capabilities is driven by the digital economy and industrial digital transformation. Computing networks are positioned as a solution to meet these needs, integrating various technologies such as 5G and edge computing [11][12]. 3. Synergistic Development of Industrial Internet and Computing Networks - The industrial internet serves as a critical infrastructure for connecting people, machines, and objects, while computing networks enhance the capabilities of the industrial internet by providing flexible and efficient resource management [25][41]. 4. Application Scenarios and Deployment Methods of Computing Networks in Industrial Internet - Computing networks can be applied in both internal and external industrial networks, facilitating the orchestration of heterogeneous computing nodes and meeting the demands of new industrial applications [26][27]. 5. Key Technologies for Computing Networks in Industrial Internet Applications - The core technologies include computing measurement, computing awareness, routing, in-network computing, deterministic networking, and digital twin networks, which collectively enhance the efficiency and effectiveness of resource utilization [31][32][33][36][39]. 6. Vision - The vision for computing networks is to create a unified management system for network and computing resources, enabling flexible scheduling and enhancing the overall efficiency of industrial operations [41][42]. 7. Outlook - The report anticipates that computing networks will play a significant role in the future of industrial internet infrastructure, driving intelligent upgrades across various industries [43].