Soochow Securities·2025-06-02 23:30Macro Strategy - The market is entering a rapid rotation phase, with a shift towards stable sectors as the trading volume and turnover rate decline, indicating a divergence in capital flow [1][10][11] - The current market structure shows a preference for large-cap value stocks over small-cap stocks, suggesting a transition from structural growth to rebalancing [1][10][11] - High dividend stocks with low relative valuations are expected to drive the next upward movement in the market [1][11] Fixed Income - The expected listing price range for Hengshuai Convertible Bonds is between 117.07 and 130.43 CNY, with a subscription rate of 0.0011% [2][15] - The bond has a general debt protection level and an estimated conversion premium of around 25% [2][15] Industry Insights - Junxin Co., Ltd. is a leading waste-to-energy company in Hunan, with a projected net profit growth of 39.8% in 2025, driven by acquisitions and new project contributions [3][4][17] - The company has a strong market position, with a 46.31% market share in Hunan's waste incineration sector and plans for international expansion [3][4][17] - The company is expected to maintain a high dividend payout ratio, with a projected net profit of 7.50 billion CNY in 2025 [3][4][17] Company Performance - Kuaishou's Q1 2025 revenue reached 32.61 billion CNY, a year-on-year increase of 10.9%, with adjusted net profit of 4.58 billion CNY [5][18] - The company is focusing on AI commercialization, with significant growth in its AI business contributing to overall revenue [5][18] - Xiaomi's Q1 2025 revenue was 111.29 billion CNY, a 47.4% year-on-year increase, with net profit growing by 64.5% [6][18] Consumer Trends - The aging population in China is expected to impact consumption patterns, with a shift towards healthcare and essential services [12][13] - Compared to Japan, China's aging process may lead to less severe impacts on overall consumption due to higher income growth and urbanization potential [12][13]