Western Securities·2025-11-21 02:24Group 1: Fund Performance and Trends - The report analyzes the evolution and current status of performance benchmarks for public funds in China and the US, highlighting the divergence in performance of active equity funds from their benchmarks and potential causes [1][7][10] - It notes that the number of active equity funds in both markets is primarily based on broad indices, with a trend towards diversification observed in the last two years. Approximately 7.24% (239 funds) of China's active equity funds have benchmarks not included in the benchmark library, which may face adjustment pressures [10][11] - The report concludes that the deviation of active equity funds in China is significantly higher than in the US, attributing this to differences in fund sales models and the diversity of ETF products [10][11] Group 2: Securities Industry Insights - The report discusses the merger of CICC with Dongxing Securities and Xinda Securities, indicating a continuation of supply-side reforms in the securities industry. This merger is expected to optimize the industry structure and enhance CICC's competitive position [12][13] - Following the merger, CICC's total asset scale is projected to reach 1 trillion yuan, elevating its ranking among listed securities firms. The merger is anticipated to improve CICC's brokerage and asset management capabilities significantly [14] - The report highlights a mismatch between the profitability and valuation of the securities sector, suggesting substantial room for valuation recovery, with recommendations for investing in large, undervalued securities firms [15] Group 3: Pharmaceutical Sector Analysis - The report tracks the performance of Pizhou Pharmaceutical, noting a revenue decline of 11.93% year-on-year for the first three quarters of 2025, with a significant drop in net profit. However, it anticipates a potential improvement in gross margin due to falling raw material prices [17][18] - Pizhou's product strategy focuses on core products while expanding into cosmetics, with notable sales growth in its flagship beauty product. The company is also advancing its R&D pipeline with new drug developments [18][19] - The investment recommendation suggests an EPS forecast of 4.04, 4.40, and 4.82 yuan for 2025, 2026, and 2027, respectively, maintaining a "buy" rating due to the unique attributes of its core products [18][19] Group 4: Express Delivery Sector Overview - The report reviews Shentong Express's operational data for October 2025, indicating a year-on-year revenue increase of 11.84% and a positive growth trend in express delivery volume [20][21] - The average service price per delivery has risen, contributing to the overall revenue growth, with expectations for continued strong performance in 2025 [20][21] - The forecast for Shentong's EPS for 2025-2027 is set at 0.89, 1.22, and 1.48 yuan, respectively, with a "buy" rating based on the anticipated growth trajectory [21]