Investment Rating - The report assigns a "Buy" rating to Sangfor, iFlytek, Shiji, Glodon, BOCHU, and Hundsun, indicating a positive outlook for these companies [10][32]. Core Insights - AI applications monetization is a key focus area, with investors showing increased interest in AI-related software despite a weak economy. Companies like Beisen, Yonyou, and Changet are gaining traction with their AI functionalities [4]. - Overseas expansion is another preferred theme among investors, particularly for BOCHU, which is working directly with local integrators [5]. - Investors have mixed views on turnaround stories, favoring growth potential over attractive valuations, with Glodon being highlighted for its cost control [6]. Summary by Sections AI Applications - Investors are keen on AI monetization ideas, especially in mainland China, as AI agents are seen to help enterprises reduce costs. Companies like Beisen and Yonyou are attracting investor interest due to their AI functionalities [4]. Overseas Expansion - BOCHU's overseas expansion is well-received, with investors not overly concerned about tariffs due to its collaboration with local integrators. There is also interest in BOCHU's welding business [5]. Turnaround Stories - Investors prefer growth potential over valuation, with Glodon noted for its effective cost control despite concerns about limited growth in the property sector [6]. Company Ratings and Financials - Sangfor (300454 CH): Buy, Target Price RMB143.00, Upside 54% [7][32] - iFlytek (002230 CH): Buy, Target Price RMB57.00, Upside 21% [7][32] - Shiji (002153 CH): Buy, Target Price RMB11.00, Upside 27% [7][32] - Glodon (002410 CH): Buy, Target Price RMB17.00, Upside 28% [7][32] - BOCHU (688188 CH): Buy, Target Price RMB160.71, Upside 23% [7][32] - Hundsun (600570 CH): Buy, Target Price RMB44.00, Upside 30% [7][32]

Global Research ab 30 June 2025 First Read China Solar Industry People's Daily reiterates efforts to curb excess competition People's Daily of China advocates tackling involution competition On 29 Jun, People's Daily of China published commentary about reining in involution- style competition, especially in the solar, EV, and battery sector. It attributed the involution-style competition mainly to oversupply, lack of high market entry standards, and support from local government. Measures to address excess ...

Investment Rating - The report indicates a positive outlook for the commercial aerospace industry, suggesting it is entering a rapid development phase [2][16]. Core Insights - The new leadership team at Xingwang Group is diverse and is expected to enhance resource assurance and management efficiency, facilitating the construction of the first-generation and enhanced systems [1][4]. - Significant progress has been made in satellite manufacturing and networking, with successful launches of experimental satellites by New Wang Group [1][6]. - The domestic rocket launch technology has improved but still lags behind SpaceX, particularly in reusable rocket technology [1][7]. - The capital market is increasingly supportive of commercial aerospace, with state-owned funds being established to back industry development [1][8][9]. Summary by Sections Industry Investment Rating - The commercial aerospace industry is rated positively, with expectations for accelerated growth and development [2][16]. Management and Market Integration - The new management structure at Xingwang Group is expected to improve operational efficiency and drive technological advancements [3][5]. Satellite Manufacturing and Networking - Shanghai Yuanxin has resolved technical issues with its networking satellites, and New Wang Group has successfully launched its first-generation and second-generation experimental satellites [1][6]. Rocket Launch Technology - Domestic rocket launch capabilities are advancing, but there remains a gap compared to international leaders like SpaceX, especially in reusable technology [1][7]. Capital Market Support - Increased support from the capital market is evident, with state-owned investment funds being established to promote commercial aerospace enterprises [1][8]. Policy Changes - Recent government reports emphasize commercial aerospace as a priority, indicating forthcoming supportive policies [9]. Upcoming Goals in Satellite Internet Engineering - The first-generation enhanced networking plan is set to advance, with significant developments expected in the third quarter [10][12]. Key Focus Areas for Investors - Investors should focus on core supporting enterprises in space segment construction, commercial rocket launch sectors, and potential suppliers benefiting from mobile internet system developments [15].

Investment Rating - The investment rating for Hangzhou Hikvision Digital Technology is Neutral, with a target price of Rmb30.000, indicating an expected share price return of 8.5% and an expected total return of 11.6% including a dividend yield of 3.1% [2][15]. Core Insights - The Canadian government's ban on Hikvision's operations is expected to have a limited revenue impact, as current revenue exposure from Canada is less than 1%, and developed markets account for approximately 10% of total revenue [1][4]. - The valuation target of Rmb30 is based on a 20.2x NTM PE, reflecting the company's leading position in the surveillance camera market and its growing innovation business, while also considering uncertain growth in the SMBG segment and geopolitical risks [4][1]. Summary by Sections Revenue Impact - The Canadian government's request for Hikvision to cease operations is primarily due to national security concerns, but the overall revenue impact is expected to be limited due to low exposure in Canada and developed markets [1]. Valuation - The target price of Rmb30 is justified by the company's historical average PE ratio and its strong market position, despite potential risks from competition and geopolitical factors [4]. Market Position - Hikvision maintains a leading position in the surveillance camera market, supported by ongoing innovation, which is crucial for sustaining growth amid external challenges [4].

Investment Rating - The report indicates a positive outlook for small-cap growth style in July, with a recommendation for sectors such as consumer services, real estate, and textiles to perform well in the short term [1][5][10] Core Insights - The macroeconomic indicators show a mixed impact on different asset classes, with PPI underperforming and CPI exceeding expectations negatively affecting the stock market, while industrial value-added and PMI exceeding expectations positively influence the commodity market [1][3] - The report highlights a bullish signal for the stock market based on timing indicators, suggesting a potential upward trend, while the bond market shows signs of overheating risk [1][4] - The report emphasizes the importance of sector rotation strategies, recommending industries that may outperform in the current fast rotation environment [1][5] Summary by Sections Macroeconomic Analysis - The report notes that the latest PPI data was below expectations, while CPI has exceeded expectations for two consecutive months, leading to a negative impact on the stock market [3] - Industrial value-added has exceeded expectations for three consecutive months, along with a favorable exchange rate and PMI, positively impacting the commodity market [3] Timing Indicators - Three indicators triggered bullish signals for the stock market, while three bearish signals were noted for the bond market, indicating potential upward movement for stocks and caution for bonds [3][4] Sector Rotation Strategy - Recommended sectors for July include comprehensive, light manufacturing, real estate, building materials, consumer services, and textiles, which are expected to perform well in the short term [1][5] Style Analysis - The report indicates that small-cap growth style is expected to outperform in July, with a notable shift towards growth style over value style [6][7] - The report highlights that the sentiment and market conditions favor growth style, with a total score of 1.32 indicating a strong preference for growth [7] Quantitative Strategy Performance - The report details that small-cap strategies have outperformed major small-cap indices, with specific strategies yielding returns of 11.4% and 9.6% [8][9] - The growth-oriented strategies have shown significant returns, with one strategy yielding 9.4% in June and over 22% in the first half of the year [9] Market Outlook for July - The report maintains a positive outlook for July, suggesting that both growth-oriented and small-cap strategies still present opportunities despite some valuation concerns [10]

Investment Rating - The report indicates a low overall valuation for the photovoltaic industry, with quality companies having a price-to-book (PB) ratio around 1.8, midstream or upstream companies around 1.6, and poorly performing companies between 1.2 and 1.3, suggesting potential for rebound [8][9]. Core Insights - The photovoltaic industry is undergoing supply-side reform aimed at addressing overcapacity, with a focus on eliminating low-price competition and promoting capacity exit [1][2]. - Companies with technological advantages, strong cost control, and innovation capabilities are expected to be more competitive in the evolving market landscape [1][6]. - The report highlights the significant reduction in glass production in the photovoltaic auxiliary materials sector, which is a response to market pressures and is expected to stabilize prices [4][16]. - Key players like DEYE and Aiko are gaining attention due to their expansion in energy storage and technological innovations, respectively [5][24]. Summary by Sections Supply-Side Reform - The supply-side reform in the photovoltaic industry has been slow, relying more on industry self-discipline and guiding documents rather than strict policies [2]. - Challenges include providing reasonable exit mechanisms for local governments and shareholders, as well as addressing debt repayment issues [2]. Financial Health and Cash Flow - The industry is experiencing slow cash flow outflows, with capital expenditures slowing down, particularly among second-tier companies facing deteriorating financial conditions [3][10]. - Leading companies still have capital expenditure capacity, while second-tier companies may face debt repayment issues, accelerating market exit [10][11]. Technological Advancements - Recent advancements in photovoltaic module power have reached 670 to 680 watts, enhancing premium pricing and cost dilution advantages for leading companies [12]. - The introduction of new technologies is expected to accelerate industry development and improve product performance [13]. Market Dynamics and Investment Opportunities - The report suggests focusing on companies that can adapt to new regulations and actively participate in industry consolidation, particularly those with strong cash flow [6][26]. - The photovoltaic glass market is facing significant production cuts, with leading companies planning to reduce output by 30% starting in July [16][18]. - The overall market for photovoltaic glass is expected to see a sharp decline in production, with inventory levels rising [17][18]. Future Outlook - The report anticipates that the glass industry will see a return to profitability by mid-2026, with rapid capacity clearance expected [19]. - The photovoltaic industry is positioned for potential rebounds, with estimates suggesting a 30% to 50% recovery space if supportive policies are implemented [9].

Investment Rating - The investment rating for BioKangtai is Neutral with a 12-month price target of Rmb19, indicating an upside potential of 25.6% from the current price of Rmb15.13 [10][9]. Core Insights - BioKangtai's DTaP-Hib vaccine sales are expected to decline by approximately 80% in 2025, which will offset the revenue growth from newly launched products such as the varicella vaccine and human diploid cell rabies vaccine [2][8]. - The company anticipates some level of revenue growth in 2025 despite the decline in DTaP-Hib sales, supported by the strong performance of PCV13, which has a penetration rate nearing 30% [2][8]. - Significant increases in R&D expenses are expected due to pipeline expansion and clinical advancements, leading to profit targets remaining roughly flat compared to 2024 [2][8]. Business Performance Update - The ongoing anti-corruption campaign in the healthcare industry has led to a reduction in inventory levels within the CDC systems, negatively impacting shipment volumes and revenue in 2024 [2]. - The company has observed continued growth in actual sales of PCV13, with strong revenue growth in Q1 2025 supported by the ramp-up in sales of newly launched vaccines [2][8]. Overseas Business Progress and Outlook - BioKangtai's international expansion aims to increase capacity utilization with minimal additional costs, although overseas business is not expected to significantly contribute to revenue growth in the near term due to low vaccine prices in developing countries [3][6]. Pipeline Development Update - The company expects key pipeline projects, including the DTcP-IPV-Hib vaccine and PCV20, to be approved in 2027 and 2028, respectively [7]. - The approval and launch of the IPV vaccine is anticipated within the current year, followed by adsorbed tetanus and quadrivalent influenza vaccines in 2026 [7]. - There is a growing emphasis on adult vaccine development in response to declining birth rates, with potential expansion into other business areas such as antibody drug development [7].

Investment Rating - The investment rating for Huadong Medicine Co. is Neutral, with a 12-month price target of Rmb41, indicating a potential upside of 1.5% from the current price of Rmb40.39 [7][11]. Core Insights - The company has shown slight growth in its business performance, particularly in innovative drugs and aesthetics, with expectations for improvement in H2 2025 driven by new product launches [2][6]. - Huadong Medicine anticipates additional revenue of Rmb1 billion from innovative drugs and new biosimilars in 2025, with hospital sales of ELAHERE and Arcalyst expected to start in Q3 2025 [6][7]. - The aesthetics segment is expected to launch new products such as MaiLi HA filler injection and V30 in H2 2025, aiming to support growth despite a weak consumption environment [6][7]. Summary by Sections Recent Business Performance - The company expects higher revenue growth from its manufacturing business and stable growth from aesthetics in Q2 2025 compared to Q1 2025, with optimism for H2 due to new product launches [2][6]. Innovative Drugs - Huadong Medicine plans to initiate hospital sales of ELAHERE and Arcalyst in Q3 2025, projecting an additional Rmb1 billion in revenue from innovative drugs and new biosimilars in 2025 [6][7]. - The company is cautious about the development of its oral GLP-1 asset (HDM1002) due to concerns over liver toxicity, although no adverse events have been observed in over 800 enrolled patients [6]. Aesthetics - The company aims to launch several new aesthetic products in China in H2 2025, including MaiLi HA filler injection and Preime DermaFacial, to drive growth in a challenging consumption environment [6][7]. Industrial Microbiology - Huadong Medicine is developing APIs for pharmaceutical and biotech companies, expecting sales ramp-up following the launch of these assets [10]. Policy Impact - The company is actively engaging with national healthcare insurance to include its innovative drugs in the National Reimbursement Drug List (NRDL) and anticipates limited impact from potential volume-based procurement (VBP) on certain products due to patent protections [10].

30 June 2025 | 11:07AM CST Kingmed (603882.SS): China Healthcare Corporate Day 2025 — Key Takeaways: Policy pressures, operational challenges, cautious outlook We hosted Kingmed's IRD, Ms. Dongqi Xiao, with investors on Jun 25 at our China Healthcare Corporate Day 2025. Bottom line: Ms. Xiao mainly discussed: 1) Industry environment and policy impact; 2) Operating status and strategic response; and 3) Outlook and key initiatives. Key Takeaways Industry environment and policy impact: Multiple factors - inclu ...

Investment Rating - The report assigns a Neutral rating to Aier Eye Hospital with a 12-month target price of Rmb14, indicating a potential upside of 12.9% from the current price of Rmb12.4 [10][8]. Core Insights - Aier Eye Hospital is experiencing improvements in refractive surgery pricing due to new technologies, with a forecast of double-digit revenue growth for 2025 [2][7]. - The company anticipates a recovery in cataract surgery revenue growth to double digits in the second half of 2025, following price cuts of approximately 8-10% since the second half of 2024 [9][7]. - The overall ophthalmology market in China is expected to grow at a 12% CAGR from 2020 to 2030, driven by increased service upgrades and market penetration [7]. Summary by Sections Recent Trends - Growth in refractive surgeries slowed in April and May after a busy first quarter, but June showed improvement due to an increase in average selling prices (ASP) from new technologies [3]. - Cataract surgeries faced volume declines due to tightening reimbursement policies, while optometry performance remained moderate [3]. Refractive Surgery Pricing - New technologies such as SMILE 4.0 and SMILE pro have been launched, with SMILE 4.0 contributing 12% of refractive surgery revenue in Q1 2025 [3][6]. - The ASP for SMILE 4.0 is around Rmb18,800, with approximately 100 installations [3]. Cataract Surgery Outlook - The company expects cataract surgery revenue growth to recover to double digits in H2 2025, as the lower prices from H2 2024 are now reflected [9]. - Premium cataract surgeries accounted for 45%-50% of total cataract surgeries as of Q1 2025, with 15% of revenue coming from femtosecond laser-assisted surgeries [9]. Optometry Services - Recent pricing pressure on OK lenses was noted, particularly after public hospitals in Beijing reduced prices by 50% [9]. - The annualized cost for OK lenses is around Rmb10,000, while defocal lenses cost only Rmb2,000 to Rmb3,000 [9]. Overseas Expansion - Aier Eye Hospital is focusing on expanding its presence in South America [9].