Investment Rating - The report maintains a positive outlook on the basic chemical industry [1] Core Insights - Recent price increases have been observed in bromine, bio-jet fuel, and refrigerants, while prices for organic silicon and other materials have declined [1][4] - The report suggests focusing on companies with production capabilities in biodiesel and SAF, as well as those involved in refrigerants [5] - The low-altitude economy and robotics industry are expected to drive demand for lightweight materials, with a recommendation to pay attention to companies related to carbon fiber and PEEK [5] Summary by Sections 1. Sub-industry Tracking - Bromine prices in Shandong have risen to 29,500 CNY/ton, up 5.36% from last week [9] - Bio-jet fuel (SAF) prices in Europe have increased to 2,120 USD/ton, a rise of 2.42% [9] - Refrigerant R32 averages 57,500 CNY/ton, up 1.77%, while R134a is at 51,000 CNY/ton, up 0.99% [9] 2. Electronic Chemicals - The electronic chemicals sector is characterized by a wide variety of specialized products, with a focus on wet electronic chemicals, photoresists, and electronic gases [11][14] - The market for semiconductor materials is projected to grow, with a significant increase in domestic production capabilities [17] 3. New Quality Productivity - Carbon fiber and ultra-high molecular weight polyethylene (UHMWPE) are highlighted as key materials benefiting from the low-altitude economy and robotics [23][28] - PEEK material is gaining traction in the humanoid robotics sector, with demand expected to rise significantly [29] 4. Lithium Battery/Storage Materials - Conductive agents like carbon black and carbon nanotubes are essential for lithium battery materials, with current market prices for multi-wall carbon nanotube powder at 64,000 CNY/ton [32] - Sodium-ion battery materials, including Prussian blue, have seen price fluctuations, currently at 34,000 CNY/ton [34] 5. Renewable and Modified Plastics - The demand for recycled plastics is increasing, with a notable rise in the proportion of recycled materials used in packaging [47] - Special engineering plastics are expected to see growth due to advancements in technology and environmental considerations [47] 6. Market Performance - The basic chemical index rose by 3.16% this week, outperforming the broader market [57] - The report notes a significant increase in the modified plastics sector, which rose by 12.91% [63]

Investment Rating - The industry is rated positively, with expectations of overall returns exceeding the CSI 300 Index by more than 5% in the next six months [38]. Core Viewpoints - China's defense budget has maintained a growth rate of around 7%, with defense spending accounting for less than 1.5% of GDP, which is below the average level of major military powers. There is significant room for growth in defense spending, which is expected to outpace GDP growth in the long term. The year 2025 is anticipated to mark a turning point for the industry, moving away from a period of stagnation towards a comprehensive recovery. As orders normalize and are gradually released, the military industry sector may enter a phase of performance improvement and valuation enhancement, referred to as the "Davis Double-Trigger" stage. It is recommended to focus on leading companies in advanced fighter jets, low-altitude economy, domestic large aircraft, satellite internet, and deep-sea technology, which have favorable competitive landscapes and high technological barriers [4][10]. Summary by Sections Industry Viewpoints - China's defense budget growth has been around 7%, with spending as a percentage of GDP below 1.5%, indicating potential for significant growth. The military sector is expected to recover in 2025, with a return to normal order levels leading to improved performance and valuations [4][10]. Market Performance - In the past week, the CSI 300 Index rose by 2.13%, while the aerospace and defense index fell by 2.13%. For the month, the CSI 300 Index increased by 4.60%, and the aerospace and defense index rose by 9.03% [11]. Industry News - Significant advancements in China's manned lunar exploration program were reported, including successful tests of the Long March 10 series rockets, which are crucial for future manned lunar missions. This marks an important technical foundation for the lunar exploration tasks [3][17][18]. Company Tracking - *ST Chengchang reported a revenue of 201.21 million yuan for the first half of 2025, a year-on-year increase of 180.16%, with a net profit of 56.63 million yuan, marking a significant turnaround [24]. - Aerospace Universe achieved a revenue of 207.02 million yuan, a 23.44% increase year-on-year, with a net profit of 34.70 million yuan, up 52.00% [25]. - Zhenlei Technology reported a revenue of 204.87 million yuan, a 73.64% increase year-on-year, with a net profit of 62.32 million yuan, reflecting a substantial growth [28].

Economic Performance - In July, China's industrial added value increased by 5.7% year-on-year, down from 6.8% in the previous month and below the expected 5.8%[4] - The retail sales of consumer goods grew by 3.7% year-on-year in July, a decline from 4.8% in June and below the forecast of 4.9%[4] - Fixed asset investment (excluding rural households) rose by 1.6% year-on-year from January to July, lower than the expected 2.7% and the previous value of 2.8%[4] - The urban surveyed unemployment rate in July was 5.2%, up from 5.0% in June[4] Industrial and Investment Trends - The manufacturing sector's investment saw a significant decline, with a monthly year-on-year decrease of -0.3% in July, down 5.4 percentage points from the previous value[23] - Infrastructure investment also turned negative, with a monthly year-on-year decline of -5.1% in July, significantly lower than the previous month's performance[27] - The real estate development investment fell sharply, with a monthly year-on-year decrease exceeding four percentage points compared to the previous month[31] Consumer Behavior and Market Dynamics - The service retail sector showed resilience, with strong growth in categories like home appliances and cultural products, despite overall retail sales weakening[18] - The consumer confidence and spending power remain low, necessitating further policy measures to stimulate consumption[14] - Seasonal factors contributed to a slight increase in the unemployment rate, with the influx of new graduates into the job market exacerbating the supply-demand mismatch[33]

Quantitative Models and Construction Methods 1. Model Name: Industry Crowding Monitoring Model - **Model Construction Idea**: This model is designed to monitor the crowding levels of Shenwan First-Level Industry Indices on a daily basis, identifying industries with high or low crowding levels to provide actionable insights[3] - **Model Construction Process**: The model calculates the crowding levels of various industries based on specific metrics (not detailed in the report) and ranks them accordingly. For example, the report highlights that the building materials, military, and non-ferrous industries had high crowding levels, while coal, petrochemical, and transportation had low crowding levels on the previous trading day[3] - **Model Evaluation**: The model provides a useful tool for identifying industry trends and potential investment opportunities by analyzing crowding dynamics[3] 2. Model Name: Premium Rate Z-Score Model - **Model Construction Idea**: This model is used to screen ETF products by calculating their premium rate Z-scores, identifying potential arbitrage opportunities while also warning of potential pullback risks[4] - **Model Construction Process**: The model employs a rolling calculation of the Z-score of the premium rate for various ETF products. The Z-score is calculated as: $ Z = \frac{(X - \mu)}{\sigma} $ where $ X $ is the current premium rate, $ \mu $ is the mean premium rate over a rolling window, and $ \sigma $ is the standard deviation of the premium rate over the same window. This helps identify ETFs with significant deviations from their historical norms[4] - **Model Evaluation**: The model is effective in identifying ETFs with potential arbitrage opportunities and provides a risk management tool for investors[4] --- Model Backtesting Results 1. Industry Crowding Monitoring Model - **Top Crowded Industries**: Building materials, military, and non-ferrous industries had the highest crowding levels on the previous trading day[3] - **Least Crowded Industries**: Coal, petrochemical, and transportation industries had the lowest crowding levels on the previous trading day[3] 2. Premium Rate Z-Score Model - **Application Example**: The model flagged specific ETFs for potential arbitrage opportunities, such as the Battery Leaders ETF (159767.SZ), which tracks the New Energy Battery Index and has a fund size of 1.13 billion yuan[14] --- Quantitative Factors and Construction Methods No specific quantitative factors were detailed in the report beyond the models described above --- Factor Backtesting Results No specific backtesting results for individual factors were detailed in the report beyond the models described above

Investment Rating - The report maintains a "Buy" rating for the company [1][7][13] Core Insights - The company recently received approval for a new indication of Savolitinib, which will expand its treatment options for lung cancer patients [6] - The ATTC pipeline is set to enter clinical development, with the first candidate expected to begin trials by the end of 2025 [6] - The company's revenue for the first half of 2025 was $278 million, a year-on-year decrease of 9.16%, primarily due to increased competition in the Chinese market [4][5] Financial Performance - The company reported a net profit of $455 million for the first half of 2025, benefiting from the sale of a 45% stake in Shanghai Hutchison Pharmaceuticals, which generated $416 million in after-tax proceeds [4] - The revenue forecast for 2025, 2026, and 2027 is $610 million, $695 million, and $771 million respectively, with expected growth rates of -3.22%, 13.88%, and 11.07% [7][9] - The projected net profit for the same years is $419 million, $113 million, and $136 million, with growth rates of 1,011.38%, -73.01%, and 20.58% respectively [7][9] Product Performance - Domestic sales of Furmonertinib (爱优特®) decreased by 29.51% year-on-year to $43 million due to intensified competition [5] - However, overseas sales of Furmonertinib (FRUZAQLA®) increased by 24.75% year-on-year to $163 million, attributed to market expansion into over 30 countries [5] Market Position - The company’s stock has a market capitalization of HKD 210.7 billion, with a 12-month high of HKD 34.8 and a low of HKD 18.36 [3]

Investment Rating - The industry rating is optimistic, expecting overall returns to exceed the CSI 300 index by more than 5% in the next six months [11]. Core Insights - The report highlights that the real estate sector is experiencing a positive market trend, with the Shanghai Composite Index and Shenzhen Composite Index rising by 0.34% and 1.42% respectively on August 11, 2025. The Shenwan Real Estate Index increased by 1.24% [3]. - Specific developments include the planning adjustments in Shenzhen's Guangming District, which involve four residential land plots with varying land areas and floor area ratios [5]. - Guangzhou's state-owned enterprise, Zhujiang Real Estate, has initiated a price guarantee action for seven projects, promising to compensate buyers for price differences until the end of the year [6]. Market Performance - The top five performing stocks in the real estate sector include Shen Property A, Wantong Development, Tianbao Construction, Fuxing Shares, and Jintou City Development, with respective increases of 10.01%, 9.96%, 6.65%, 6.41%, and 6.01%. Conversely, the largest declines were seen in Rongfeng Holdings, Yatong Shares, Huali Family, Guangming Real Estate, and Shangshi Development, with decreases of -4.81%, -2.92%, -1.70%, -1.11%, and -1.04% [4]. Company Announcements - Huazhong City Holdings announced a suspension of trading due to a court-ordered liquidation [9]. - Zhuhai Huafa Industrial Co., Ltd. adjusted the coupon rate of its corporate bonds from 3.90% to 2.30%, with a total issuance of 2 billion yuan and a maturity of five years [9]. Industry News - The Shenzhen Intermediate People's Court announced the auction of the Shenzhen Huangting Plaza, with an estimated value of 4.361 billion yuan and a starting price of approximately 3.053 billion yuan [8].

Quantitative Models and Construction Methods 1. Model Name: Industry Crowding Monitoring Model - **Model Construction Idea**: This model is designed to monitor the crowding levels of Shenwan First-Level Industry Indices on a daily basis, identifying industries with high or low crowding levels to provide insights for potential investment opportunities[3] - **Model Construction Process**: The model calculates the crowding levels of various industries based on daily data. It identifies industries with significant changes in crowding levels and tracks the inflow and outflow of main funds across industries. For example, the model highlighted that the crowding levels of military, non-ferrous metals, building materials, and electrical equipment were high on the previous trading day, while retail, coal, and transportation had lower crowding levels[3] - **Model Evaluation**: The model provides a systematic approach to identifying industry crowding trends, which can help investors focus on industries with significant changes in crowding levels[3] 2. Model Name: Premium Rate Z-Score Model - **Model Construction Idea**: This model is used to screen ETF products for potential arbitrage opportunities by calculating the Z-score of premium rates over a rolling window[4] - **Model Construction Process**: The model calculates the Z-score of the premium rate for each ETF product over a specified rolling window. A high Z-score indicates a potential overvaluation, while a low Z-score suggests undervaluation. The model also flags ETFs with potential risks of price corrections[4] - **Model Evaluation**: The model is effective in identifying ETFs with significant deviations from their fair value, providing actionable signals for arbitrage strategies[4] --- Backtesting Results of Models 1. Industry Crowding Monitoring Model - **Key Observations**: On the previous trading day, the model identified high crowding levels in industries such as military, non-ferrous metals, building materials, and electrical equipment. Conversely, retail, coal, and transportation exhibited low crowding levels. Additionally, the model noted significant changes in crowding levels for media and electrical equipment industries[3] 2. Premium Rate Z-Score Model - **Key Observations**: The model flagged ETF products with potential arbitrage opportunities based on their premium rate Z-scores. Specific ETFs were highlighted for further attention, though detailed numerical results were not provided in the report[4] --- Quantitative Factors and Construction Methods 1. Factor Name: Main Fund Flow Factor - **Factor Construction Idea**: This factor tracks the inflow and outflow of main funds across industries to identify trends in capital allocation[3][10] - **Factor Construction Process**: The factor aggregates main fund flow data over different time horizons (e.g., daily, three-day) for Shenwan First-Level Industry Indices. For instance, the report highlighted that main funds flowed into industries like non-ferrous metals and banks while flowing out of industries like machinery and media over the past three trading days[3][10] - **Factor Evaluation**: The factor provides valuable insights into capital allocation trends, which can guide investment decisions[3][10] --- Backtesting Results of Factors 1. Main Fund Flow Factor - **Key Observations**: Over the past three trading days: - **Inflow**: Non-ferrous metals (+15.61 billion), banks (+7.68 billion) - **Outflow**: Machinery (-97.50 billion), media (-57.39 billion), and computers (-142.99 billion)[10]

Investment Rating - The industry is rated positively, expecting an overall return exceeding 5% above the CSI 300 index in the next six months [19]. Core Insights - The report highlights a rebound in high-growth sectors driven by capital flow, with the food and beverage sector rising by 0.6% this week, ranking 26th among 31 sub-industries [11]. - The report emphasizes the importance of focusing on high-growth and undervalued recovery opportunities within the food and beverage sector [7]. Summary by Sections Sub-industry Ratings - No specific ratings for liquor, beverages, and food sub-industries, but several companies are recommended for investment: - Guizhou Moutai: Buy - Luzhou Laojiao: Buy - Shanxi Fenjiu: Hold - Jiansi Yuan: Hold - Yingjia Gongjiu: Hold - Dongpeng Beverage: Buy - Nongfu Spring: Buy - Mixue Group: Hold - Lihigh Food: Buy - Angel Yeast: Buy [3][18]. White Wine Sector - The white wine index increased by 0.38%, indicating a bottoming phase, with expectations for a local rebound despite ongoing policy and demand pressures [15]. - Guizhou Moutai's limited edition product sold out quickly, generating approximately 1.79 billion yuan in sales [5]. - The report suggests capitalizing on low valuation recovery opportunities in the white wine sector, recommending Guizhou Moutai, Luzhou Laojiao, Shanxi Fenjiu, and Jiansi Yuan [15]. Consumer Goods Sector - The snack and soft drink sectors have shown significant rebounds, attributed to previous valuation pressures and adjustments in mid-year expectations [16]. - Unified Enterprises reported a 10.6% revenue increase and a 33.2% net profit increase in H1 2025, exceeding market expectations [17]. - The report recommends focusing on high-growth snack and beverage companies, particularly Dongpeng Beverage, Mixue Group, and Nongfu Spring, while also considering undervalued stocks like Angel Yeast and Lihigh Food [16][17].

Investment Rating - The report indicates a high level of optimism for the refrigerants and glyphosate sectors, suggesting a continuation of high demand and price stability in these markets [7][12]. Core Insights - The glyphosate market is experiencing sustained price increases due to strong downstream demand, particularly from regions like Europe and Africa, leading to tight supply conditions [21][25]. - The refrigerant market is benefiting from seasonal demand spikes and supply constraints due to quota policies, which are supporting higher prices for products like R32 and R134a [28][4]. - The report highlights the potential for growth in the civil explosives sector driven by infrastructure projects and the Belt and Road Initiative, recommending specific companies for investment [5]. Summary by Sections (1) Key Chemical Product Price Tracking - Glyphosate prices rose to 26,399 CNY/ton, up 100 CNY/ton from the previous week, with a weekly production of 0.9 million tons, down 18.5% [21][25]. - Refrigerant prices for R22 increased to 35,500 CNY/ton, R134a to 50,500 CNY/ton, and R32 to 56,500 CNY/ton, reflecting strong demand and tight supply [4][28]. (2) Polyurethane: MDI and TDI Price Movements - MDI prices increased significantly, with the average price for polymer MDI in South China at 16,000 CNY/ton, up 2.24% from the previous week [19]. - TDI prices in East China decreased to 16,750 CNY/ton, down 3.46% due to seasonal demand weakness [19]. (3) Agricultural Chemicals: Glyphosate and Fertilizer Price Trends - Glyphosate's profitability decreased slightly to 3,407.2 CNY/ton, while the market remains tight with reduced inventory levels [21][25]. - Urea prices rose to 1,779 CNY/ton, and potassium chloride prices increased to 3,285 CNY/ton, driven by export policies and supply constraints [25][27]. (4) Fluorochemicals: Refrigerant Price Increases - The report notes that R32 and R134a prices have risen due to increased demand from high temperatures and limited supply flexibility [28]. - The price of raw materials like fluorspar and hydrofluoric acid remained stable, indicating a balanced supply-demand scenario in the upstream market [28].

Report Information - Report Title: Public Offering REITs Weekly Report (August 4 - August 10, 2025) - Analysts: Xu Chao, Dai Zihan 1. Industry Investment Rating - Not provided in the report. 2. Core Viewpoints - This week, the public offering REITs market fluctuated and declined, with an increase in trading volume. The indexes of property - type and franchise - type public offering REITs both fell, and most public offering REITs products declined. There are 22 public offering REITs funds waiting to be listed, and the market is expected to expand. Given the asset shortage, public offering REITs have high - dividend and medium - low - risk advantages, with a relatively high cost - performance ratio for allocation [2][5]. 3. Summary by Directory 3.1 Secondary Market: This Week, the Public Offering REITs Market Fluctuated and Declined - Market Index: As of August 8, 2025, the China Securities REITs Index dropped 0.33% to 867.98 compared with last week, and the China Securities REITs Total Return Index also declined 0.33% to 1097.31 [11]. - Trading Volume and Turnover: The total trading volume of the REITs market this week was 806 million shares, the same as last week. The trading amount was 3.667 billion yuan, a 1.47% increase from last week. The market turnover rate was 3.78%, compared with 3.84% last week [13]. - Index by Underlying Asset Type: The indexes of property - type and franchise - type public offering REITs both declined, by 0.28% and 0.15% respectively. Among property - type REITs, only warehousing and logistics REITs rose 0.22%, while others declined. Among franchise - type REITs, energy infrastructure and ecological environmental protection REITs rose 0.54% and 0.23% respectively, while municipal facilities, water conservancy facilities, and transportation infrastructure REITs declined [16][19]. - Trading Volume and Turnover by Type: Most types of public offering REITs saw a decline in trading volume and turnover. The trading volume of water conservancy facilities, warehousing and logistics, and other types of REITs decreased, while that of municipal facilities and transportation infrastructure REITs increased. The daily average turnover of energy infrastructure and municipal facilities REITs exceeded 1%, and that of most other types decreased [21][23]. - Performance of Single Products: Most public offering REITs declined. Among them, Huatai Zijin Baowan Logistics Warehouse REIT, ICBC Inner Mongolia Energy Clean Energy REIT, and Huaxia Nanjing Traffic Expressway REIT had the highest weekly increases, while ICBC Hebei Expressway Group Expressway REIT, Huaxia Capital First - time Outlet REIT, and Guotai Junan Jinan Energy Heating REIT had the highest weekly declines [25]. 3.2 Primary Market: 22 Public Offering REITs Funds Are Waiting to Be Listed - Issued Products: As of August 8, 2025, a total of 73 public offering REITs have been issued, with a total issuance scale of 191 billion yuan. Since 2025, 14 public offering REITs have been issued, and there were no new issuances in August 2025 [3]. - Products Waiting to Be Listed: There are 22 public offering REITs funds waiting to be listed, including 11 initial offerings and 11 expansions. In terms of project status, 8 have passed, 9 have been feedbacked, 4 have been questioned, and 1 has been accepted. By type, there are 6 park - type, 3 consumer infrastructure - type, 4 warehousing and logistics - type, and 4 affordable rental housing - type in industrial REITs, and 3 energy - type and 1 ecological environmental protection - type in franchise - type REITs [33]. 3.3 Public Offering REITs Policies and Market Dynamics - Tianjin Policy: On August 7, according to Tianjin Daily, the General Office of the CPC Tianjin Municipal Committee and the General Office of the Tianjin Municipal People's Government issued an opinion on further optimizing the business environment, suggesting using financing tools such as REITs, ABS, and science - innovation bonds to provide diversified financing channels for various business entities [36]. - Guotai Junan Chengtou Kuanting Affordable Rental Housing REIT: On August 8, the fund manager Guotai Haitong Asset Management announced that the REIT plans to apply for expansion and purchase new infrastructure projects. Shanghai Chengtou Holding Co., Ltd. plans to use rental housing projects in Minhang District, Shanghai as underlying assets to participate in the expansion [38]. 3.4 Investment Suggestions - Market Trend: This week, the REITs index fluctuated and declined, and the trading volume of the public offering REITs market increased. The indexes of property - type and franchise - type public offering REITs both declined, with municipal facilities having the highest decline. - Market Outlook: This Friday, Southern Wanguo Data Center REIT and Southern Runze Technology Data Center REIT were listed on the Shanghai and Shenzhen Stock Exchanges, marking an important stage in the development of China's REITs market. Since this year, 14 public offering REITs have been established, with a total scale of over 25 billion yuan. With 22 REITs funds waiting to be listed, the market is expected to expand, and its activity is expected to increase. - Investment Value: Given the asset shortage, public offering REITs have high - dividend and medium - low - risk advantages, with a relatively high cost - performance ratio for allocation [5][39][40].