Core Viewpoint - The State Administration for Market Regulation has approved the acquisition of Ansys by Synopsys with additional restrictive conditions to prevent anti-competitive effects in the optical software, photonic software, and certain EDA software markets [1][2]. Summary by Sections Acquisition Approval - The acquisition is approved with conditions due to potential anti-competitive effects in global and domestic markets for optical software, photonic software, and parts of the EDA software market [1]. Divestitures Required - Synopsys must divest its entire optical and photonic device simulation business [1]. - Ansys must divest its power analysis software-related business, including R&D, distribution, licensing, and sales [2]. Compliance Obligations - Both companies must adhere to existing customer contracts, including pricing and service level agreements, and cannot terminate or refuse contract renewals for Chinese customers [2]. - There is a prohibition on bundling products from both companies and on discriminating against customers in terms of service levels, pricing, or functionality [2]. Support for Standards and Agreements - Continued support for industry-standard formats related to Ansys and Synopsys EDA products is required [2]. - Existing interoperability agreements must be maintained and renewed upon request from Chinese customers [3]. - Synopsys is required to sign interoperability agreements with third-party EDA vendors upon written request from Chinese customers [3].

Report Title - "外强内弱，粕类区间震荡等待指引" [1][3] Report Industry Investment Rating - Not provided Core Viewpoints - The meal market shows a pattern of strong external and weak internal performance, with meal prices oscillating within a range and awaiting further guidance [1][47] Summary by Section I. China-US Trade Negotiations and US Soybean Growing Weather - China-US trade negotiations have made some progress, with China relaxing rare earth export controls to the US in June and the US canceling export controls on semiconductor software and jet engines to China in July, but future negotiations remain uncertain [8][9] - Trump's global tariff war is bound to be full of twists and turns. The US reached trade agreements with Vietnam and Cambodia in July, and the tariff agreements with Japan, South Korea, and the EU are more important. July 9 is the deadline for the US to suspend the so - called "reciprocal tariffs" [10] - The growing weather for US soybeans is currently favorable, with the new - season yield per unit area remaining at a relatively high level, but there is still a possibility of weather - related speculation in the future [11] II. Analysis of the Supply and Demand Fundamentals of Meal - The concentrated arrival of Brazilian soybeans in China is suppressing the futures and spot prices of beans. The peak of imported soybean arrivals has been postponed to June, with an overall increase. The soybean crushing volume of oil mills remains high, and the output of soybean meal in June has increased significantly year - on - year. The inventory of soybeans and soybean meal in oil mills has continued to rise, while the downstream procurement has slightly recovered at low levels and the提货量 has declined from high levels [15][16][17] - With the listing of domestic rapeseed, the short - term supply of rapeseed meal has become abundant. The expected increase in imported rapeseed, the concentrated listing of domestic rapeseed, and the concentrated release of aquaculture demand have contributed to this situation. Although the arrival volume of imported rapeseed in July was lower than expected and the import cost fluctuated slightly, the rapeseed crushing volume of oil mills decreased slightly, and the rapeseed inventory of oil mills rebounded from a low level while the rapeseed meal inventory remained low [31][32][34] - Rapeseed meal is in the peak season of supply and demand, showing relative stability and balance. Imported Brazilian soybeans will lead to inventory accumulation from June to July and inventory reduction from August to September. The 2509 contract will mainly oscillate within a range as the futures and spot prices converge, and the soybean meal 2601 contract will generally oscillate strongly while rapeseed meal is relatively weak [46] III. Short - Term Range Oscillation of Meal Awaiting Guidance - Uncertainties in China - US trade negotiations and US soybean growing weather, the concentrated arrival of imported soybeans leading to a weak current situation and strong expectations in China, and the relatively stable supply and demand of rapeseed meal, which acts as a price stabilizer [47] - The key future variables include weather - related speculation on the new - season US soybeans, the follow - up of China - US tariff negotiations, and changes in domestic demand [47] - The bullish factors are the speculation on the new - season US soybean weather and the uncertainty of China - US tariff negotiations, while the bearish factors are the short - term inventory accumulation pressure due to the concentrated arrival of imported Brazilian soybeans, the expected abundant short - term supply of domestic rapeseed meal after the listing of domestic rapeseed, and the current spot pressure on soybean meal during the off - season of demand [49]

Investment Rating - The investment rating for Empyrean Technology Co Ltd is Equal-weight [4] Core Viewpoints - The recent lifting of US export restrictions allows Synopsys and Cadence to restore access to their software and technology for customers in China, which is significant for the EDA market [1] - Empyrean Technology, the largest local vendor in China, held a 10% market share in 2024, but its stock has declined by 10% over the past month, contrasting with the CSI 300 index's 3% increase [2] - The report suggests that achieving full flow in digital EDA by Empyrean Technology by the end of 2025 is unlikely, with potential delays extending to 2027 due to M&A processes [2] - The current valuation of Empyrean Technology at 37x NTM P/S is significantly higher than its global peers, indicating that future market share gains are already priced in [2] Financial Summary - Price target for Empyrean Technology is set at Rmb115.00, representing a downside of 4% from the current price of Rmb119.30 [4] - Market capitalization is Rmb64,773 million with 543 million shares outstanding [4] - Revenue projections show growth from Rmb1,222 million in 2024 to Rmb2,666 million by 2027 [4] - EPS is expected to increase from Rmb0.20 in 2024 to Rmb1.65 in 2027 [4] - EBITDA is projected to improve from a loss of Rmb14 million in 2024 to a profit of Rmb914 million by 2027 [4]

Core Viewpoint - The average brokerage recommendation (ABR) for Synopsys (SNPS) is 1.26, indicating a strong buy sentiment from analysts, but reliance solely on this metric may not be advisable due to potential biases in brokerage recommendations [2][5][10]. Brokerage Recommendations - Synopsys has an ABR of 1.26, with 16 out of 19 recommendations classified as Strong Buy, accounting for 84.2% of total recommendations [2]. - The remaining recommendations include one classified as Buy, which accounts for 5.3% [2]. Limitations of Brokerage Recommendations - Brokerage analysts tend to exhibit a strong positive bias in their ratings, often issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - This bias may mislead investors, as the interests of brokerage firms do not always align with those of retail investors [7][10]. Comparison with Zacks Rank - The Zacks Rank, which is based on earnings estimate revisions, is a more reliable indicator of a stock's near-term price performance compared to ABR [8][11]. - Zacks Rank is displayed in whole numbers and is updated more frequently, reflecting timely changes in earnings estimates [9][12]. Current Earnings Estimates for Synopsys - The Zacks Consensus Estimate for Synopsys remains unchanged at $15.09 for the current year, suggesting stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Synopsys holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the positive ABR [14].

Investment Rating - The industry investment rating is In-Line [7] Core Insights - Robust spending in China is expected to lift WFE (Wafer Fabrication Equipment) estimates, with government subsidies being a primary driver rather than immediate market demand [3][10] - AI-driven demand is strong but faces bottlenecks in back-end test capacity, while the current annual capex of TSMC is around $40 billion, which may sustain AI growth without significant increases in demand from smartphones and PCs [4] - The EDA (Electronic Design Automation) market remains resilient despite proposed export restrictions to China, with potential for EDA companies to resume some licensing deals [5][10] Summary by Sections WFE Equipment - China is aggressively expanding its semiconductor capacity, suggesting upside to FY25 revenue views for ASML and ASM, with China representing a mid-20s percentage of revenue [3] - WFE growth may moderate in the medium term due to bottlenecks in back-end test capacity, while litho intensity is expected to hit an asymptote in the next decade [4][10] EDA & IP - The EDA market is resilient despite export restrictions, with a wide range of potential outcomes regarding China and AI [5][10] - Local Chinese EDA solutions are perceived as limited in competitive threat due to incomplete tool-chains for advanced nodes [11] Power Segment - Power semiconductors are a clear growth area, but adoption of new technologies may remain niche due to cost and infrastructure readiness [12] - Infineon is recognized for its leadership and cautious market strategies, while Chinese firms are aggressively developing high-voltage solutions [12] Notable Highlights - Intel's transformation remains uncertain with significant execution risks under new leadership, while the PC and smartphone markets are subdued [13] - Memory markets are expected to strengthen in the second half of 2025, driven by AI and edge applications [13]

Core Viewpoint - Synopsys, Inc. has received merger clearance in all jurisdictions except China for its proposed acquisition of Ansys, indicating significant regulatory progress and expected benefits for stakeholders and technology innovation [1] Group 1: Regulatory Status - The merger has been cleared in every jurisdiction except China, where Synopsys is in advanced discussions with the State Administration for Market Regulation [1] - The companies emphasize the significant benefits the merger is expected to bring to stakeholders and the future of technology innovation [1] Group 2: Company Profiles - Synopsys, Inc. provides comprehensive silicon to systems design solutions, focusing on electronic design automation and silicon IP, partnering with semiconductor and systems customers to enhance R&D capabilities [2] - Ansys specializes in simulation software that helps companies understand the performance of their innovative ideas, with applications across various industries including transportation, semiconductors, and medical devices [3]

Core Viewpoint - Synopsys shares rose over 5% following the announcement of a new trade framework between China and the U.S., which could positively impact the company's operations and growth prospects [1]. Group 1: Impact of Trade Relations - The thawing trade relations are significant for Synopsys as the company had to suspend its third-quarter and full-year guidance due to new U.S. export restrictions affecting sales to China [2]. - In the first half of fiscal 2025, Synopsys generated nearly 11% of its sales from the Chinese market, highlighting its reliance on this region [3]. Group 2: Merger with Ansys - The merger with Ansys is crucial for Synopsys' growth strategy, aiming to combine EDA solutions with engineering simulation software for semiconductor design [4]. - This merger would expand Synopsys' customer base into sectors such as automotive, aerospace, and industrial, leveraging Ansys' existing clientele [5]. Group 3: Investor Implications - There is currently no indication that export restrictions to China will be lifted, and it remains uncertain if China is using the merger approval delay as leverage in negotiations [7]. - Despite the uncertainties, the new trade framework represents a positive step that may lead to a resolution of the ongoing issues for Synopsys [7].

Core Viewpoint - Synopsys (SNPS) shares have increased by approximately 9% over the past month, outperforming the S&P 500, but there are concerns about whether this positive trend will continue leading up to the next earnings release [1] Group 1: Earnings Report and Market Reaction - The last earnings report for Synopsys was about a month ago, and the stock has shown a positive performance since then [1] - Investors and analysts are closely monitoring the stock's performance as the next earnings release approaches [1] Group 2: Estimates and Revisions - Estimates for Synopsys have trended downward over the past month, indicating a negative shift in expectations [2][4] - The magnitude of the revisions suggests a broader downward trend in estimates for the stock [4] Group 3: VGM Scores and Investment Strategy - Synopsys currently holds a subpar Growth Score of D and a similar score for momentum, while receiving an F grade for value, placing it in the lowest quintile for this investment strategy [3] - The overall aggregate VGM Score for Synopsys is F, which is significant for investors not focused on a single strategy [3] Group 4: Outlook - With the downward trend in estimates, Synopsys has a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns from the stock in the coming months [4]

Group 1 - Synopsys (SNPS) has reached a key level of support and recently crossed above the 200-day moving average, indicating a long-term bullish trend [1] - The 200-day simple moving average serves as a support or resistance level, helping traders and analysts determine overall long-term market trends [1] - SNPS has rallied 9% over the past four weeks and currently holds a Zacks Rank 3 (Hold), suggesting potential for further upward movement [2] Group 2 - Positive earnings estimate revisions support the bullish case for SNPS, with no estimates decreasing in the past two months and 7 estimates increasing [2] - The consensus estimate for SNPS has also increased, reinforcing the positive outlook for the company [2] - Investors are encouraged to monitor SNPS for potential gains in the near future due to its key technical level and favorable earnings revisions [3]

Core Insights - Synopsys (SNPS) is currently in Phase 10 of its 18-phase Adhishthana Cycle, with indications that a peak may have already been reached, suggesting potential bearish trends in upcoming phases [1][8] Synopsys's Cycle So Far - From Phase 9, Synopsys experienced a significant rally, gaining approximately 223%, attributed to the "Supreme Move" phase as defined by Adhishthana Principles [4] - The stock has shown signs of a peak at the 18th bar of Phase 10, having corrected by around 20% from its high of $629.38 [5] Phase Durations - Phase 10 is set to conclude on August 2, 2026, with indications that SNPS may not reclaim its previous high within this timeframe [8] - The subsequent Phase 11 will commence on August 3, 2026, and extend until March 2, 2031 [7] Weekly Chart Outlook - On the weekly chart, Synopsys has entered Phase 9, typically associated with strong breakouts; however, the cakra built between Phases 4-8 was unsuccessful, leading to trading below the lower band, indicating potential underperformance [9]