CCSC(SH:601375) Zhongyuan Securities·2025-07-01 00:20Core Insights - The report highlights a moderate recovery in the Chinese economy, driven by consumption and investment, with the A-share market showing signs of stability and potential growth opportunities in various sectors [10][11][15]. Domestic Market Performance - The Shanghai Composite Index closed at 3,444.43, up by 0.59%, while the Shenzhen Component Index closed at 10,465.12, up by 0.83% [3]. - The average P/E ratios for the Shanghai Composite and ChiNext are 14.06 and 38.04, respectively, indicating a suitable environment for medium to long-term investments [10][11]. Industry Analysis - The aerospace and gaming sectors are leading the market, with significant interest in technology and innovation-driven companies [10][11]. - The financial technology sector is also showing strong performance, suggesting a favorable investment climate in this area [14]. Economic Indicators - In June, the manufacturing PMI was at 49.7%, while the non-manufacturing PMI was at 50.5%, indicating a slight improvement in economic activity [5][9]. - The report notes that the average industrial added value in May increased by 5.8% year-on-year, and retail sales rose by 6.4%, reflecting a resilient industrial production environment [15][16]. Solar Energy Sector - The solar energy sector saw a record high in new installations, with 92.92 GW added in May, a year-on-year increase of 388.03% [20]. - The report emphasizes the importance of new policies supporting solar energy development, including a plan to add 253 million kilowatts of solar capacity by 2030 [19]. Semiconductor Industry - The global semiconductor sales reached $56.96 billion in April, marking a 22.7% year-on-year increase, with China's sales at $16.20 billion, up by 14.4% [23]. New Materials Sector - The new materials sector outperformed the market, with a 6.91% increase in the index, indicating strong demand and growth potential [22]. - The report suggests that the new materials industry will continue to thrive due to increasing demand from manufacturing and technological advancements [22][24]. Gaming Industry - The gaming sector is experiencing a resurgence, with a significant increase in game approvals and a positive outlook for summer cultural consumption [34][35]. - The integration of AI technology in gaming is expected to enhance product offerings and drive industry growth [35]. Agricultural Sector - The agricultural sector is facing challenges, with low prices for livestock and a mixed performance in consumer demand for agricultural products [38]. - Despite the challenges, there is a notable increase in consumer spending on pet food during the 618 shopping festival, indicating a shift in consumer preferences [38].