GUOTAI HAITONG SECURITIES·2026-01-07 09:10Group 1: Market Trends and Observations - The New Year's tourism and cultural activities have shown significant improvement, with domestic travel increasing by 19.5% year-on-year, and inbound travel rising by 28.6% [6][5] - The technology hardware sector continues to see price increases, driven by strong demand in the AI industry, with storage prices rising month-on-month [5][8] - The real estate and durable goods sectors remain under pressure, with a 26% year-on-year decline in property transactions across major cities [7] Group 2: Industry Insights - The advanced manufacturing sector in China is maturing, showcasing strong global competitiveness and profitability, particularly in lithium battery production [17] - The new energy sector, including wind and solar, is experiencing a valuation reassessment, with leading companies showing significant potential for growth [17] - The consumer goods sector is witnessing strong profitability in product consumption, while service consumption is still in its early stages of development [17] Group 3: Company-Specific Developments - Zhongxin Co. plans to establish a manufacturing base in the U.S., investing up to $36 million in a new facility, which is expected to enhance its overseas customer order share [23][24] - Huatu Shanding is projected to achieve significant profit growth, with expected net profits of 3.12, 4.38, and 5.43 billion yuan from 2025 to 2027, driven by its strong market position and AI integration [42][44] - Minglue Technology is expected to see a recovery in revenue, with a projected increase in gross margin due to the rise of high-margin marketing intelligence products [34][35] Group 4: Investment Recommendations - The report recommends focusing on leading companies in the electric new energy, transportation equipment, communication devices, electronics, and service consumption sectors, which are expected to benefit from their competitive advantages and global expansion [18] - The report highlights the potential for valuation increases in advanced manufacturing and emerging technology sectors, particularly those with strong innovation capabilities [18][16] - The bond market outlook is optimistic, with expectations of a "New Year rally" driven by policy support and seasonal capital inflows [48][49]