Hua Yuan Zheng Quan·2025-06-17 14:05Fixed Income - Economic recovery shows divergence, with the bond market expected to fluctuate within a narrow range. Current economic operation is in a neutral zone, with marginal changes primarily in consumption compared to last year. The bond market is unlikely to see a trend-driven bull or bear market in the short term. [2][9] - The yield on 10-year government bonds is projected to remain in the range of 1.6%-1.8% by the end of the year, with a focus on credit bonds yielding over 2% as a balanced investment strategy. [9] Electronics - Broadcom's FY25Q2 performance was strong, with revenue reaching $15.005 billion, a 20% year-on-year increase, driven mainly by AI semiconductor business, which saw a 46% increase in revenue. [10][11] - The demand for AI networks is expected to grow, with significant investments from large cloud service providers. The introduction of the Tomahawk6 switch chip, which offers double the switching capacity of existing products, is a key development. [11][12] Public Utilities and Environmental Protection - The municipal environmental sector is entering a phase of stable cash flow and increased dividend rates, with waste-to-energy and water companies showing strong profitability due to regulated return models. [14][15] - The decline in Hong Kong interest rates is expected to accelerate capital inflow into the stock market, enhancing the valuation of low-correlation, long-duration assets represented by Hong Kong dividend stocks. [16][17] Transportation - The express delivery sector is experiencing robust growth, with a forecasted 16% year-on-year increase in express delivery volume for May. The collaboration with e-commerce is expected to further boost consumption. [20][21] - Geopolitical tensions in the Middle East are likely to lead to increased oil prices and shipping rates, with a focus on VLCC shipping companies benefiting from this situation. [22][31] Real Estate and Construction - The government has signaled stronger support for the real estate market, emphasizing the construction of quality housing and urban renewal projects, which is expected to drive demand in the construction sector. [32][33] - Key players in urban renewal and affordable housing construction, such as China State Construction, are recommended for investment due to their resource synergy and comprehensive capabilities. [33][35]