Investment Rating - Industry Rating: Outperform the market (maintained rating) [5] Core Viewpoints - Investment in new materials is fundamentally an investment in emerging industries and structural transformation [10][12] - The lifecycle of the industry is crucial for investment decisions, with new materials often in the development or introduction phase [13][14] - Short-term excess returns in new materials investments are closely tied to market beta (β), regardless of whether the materials are in development or introduction phases [15][16] Summary by Sections Investment in New Materials - Investing in new materials means investing in future emerging industries, as these materials are in recent or ongoing development and outperform traditional materials [10][12] - The materials industry is foundational to modern industrial systems, with each technological revolution linked to breakthroughs in materials [9][10] Lifecycle Assessment - Assessing the lifecycle of new materials is essential, as they are often in the development or introduction phase, which affects their industrialization and investment characteristics [13][14] - For development-phase materials, investment is thematic, while for introduction-phase materials, it is more about industrial investment [13][14] Market Trends and Recommendations - Recent market performance has been strong in sectors like photovoltaic equipment and glass fiber, while sectors like small appliances and communication equipment lagged [3][20] - Recommendations include focusing on solid-state batteries and electronic fabrics, with specific companies highlighted for potential investment [24][25]