Changjiang Securities·2025-06-02 00:35Market Overview - After the gradual implementation of previous policies, tariff negotiation progress has slowed, leading to a short-term market consolidation phase[4] - In June, the market style may continue to seek a balance between "stability" and "growth"[4] Key Observations - Key observation points include overseas tariff negotiation progress and the Federal Reserve's interest rate guidance[4] - Domestic macro policies, particularly measures to boost consumption and support emerging industries, are crucial for market direction[4] Investment Strategy - Focus on certainty amidst uncertainty, emphasizing stable dividends and sectors benefiting from domestic demand recovery and industrial upgrades[4] - Long-term investment in sectors with improving supply-demand dynamics that have pricing logic is recommended[4] Recommended Sectors - Key sectors recommended for June 2025 include metals, chemicals, electricity, light industry, banking, non-banking financials, retail, social services, pharmaceuticals, and telecommunications[4] Top Stock Picks - Metals: Chifeng Jilong Gold Mining (EPS: 1.92 in 2025E, PE: 13.8) with strong performance and growth potential[26] - Chemicals: Yara International (EPS: 2.35 in 2025E, PE: 12.2) with significant growth in potash production capacity[26] - Electricity: China Nuclear Power (EPS: 0.53 in 2025E, PE: 18.3) with stable operations and growth in nuclear capacity[26] - Light Industry: Smoore International (EPS: 0.21 in 2025E, PE: 85.3) with expansion in HNB products in Japan[26] - Banking: Hangzhou Bank (EPS: 2.62 in 2025E, PE: 6.2) with strong asset quality and growth potential[26] - Non-Banking: Jiangsu Jinzhong (EPS: 0.57 in 2025E, PE: 10.3) with stable profit growth and high dividend payout[26] - Retail: Yiwu Small Commodity City (EPS: 0.75 in 2025E, PE: 23.0) benefiting from international trade reforms[26] - Social Services: Core International (EPS: 1.46 in 2025E, PE: 18.5) leveraging AI for growth[26] - Pharmaceuticals: Innovent Biologics (EPS: 0.34 in 2025E, PE: 183.9) with strong pipeline in oncology[26] - Telecommunications: Huace Navigation (EPS: 1.34 in 2025E, PE: 33.8) with growth in overseas business[26]