Core Viewpoint - The company, 雅视光学, anticipates a significant loss for the six months ending June 30, 2025, with expected losses ranging from HKD 12 million to HKD 20 million, contrasting with a profit of approximately HKD 2.5 million in the same period of 2024 [1] Group 1: Financial Performance - The expected loss for the upcoming reporting period is projected to be between HKD 12 million and HKD 20 million [1] - In the same period of 2024, the company reported a profit attributable to owners of approximately HKD 2.5 million [1] Group 2: Reasons for Loss - The anticipated loss is primarily attributed to the impact of U.S. tariff policies, which have disrupted trade between the U.S. and China and affected global supply chains, leading to increased operational costs for production facilities in Vietnam and Malaysia [1] - The development of the eyewear frame distribution and lens business in China and Southeast Asia has resulted in significant increases in employee costs, promotional expenses, and exhibition costs [1] - The company has incurred higher financing costs due to bank borrowings used to fund the establishment of production bases outside of China [1]

Core Viewpoint - The recent reports from Goldman Sachs, Morgan Stanley, and Bank of America indicate that the U.S. economy is in a phase of "weak growth and high uncertainty," influenced by tariff disruptions, labor market changes, and Federal Reserve policy direction [1] Economic Growth Outlook - Goldman Sachs projects a GDP growth rate of only 1.2% for the first half of 2025, below the estimated potential growth rate of 2% and lower than earlier market expectations [2] - For the second half of 2025, Goldman Sachs anticipates further slowdown, with growth rates dropping to 1% in Q3 and Q4, and a quarterly growth rate of just 1.1% in Q4 [2] - Morgan Stanley also predicts a decline in U.S. GDP growth from 2.3% in 2024 to 1.0% in 2025, with a slight recovery to 1.1% in 2026 [2] Sector Performance Divergence - **Consumer Spending**: Goldman Sachs reports a significant drop in real consumer spending growth to around 1% in the first half of 2025, half of the initial expectations, driven by rising savings rates and inflation pressures from tariffs [3] - **Housing Market**: Goldman Sachs identifies housing as the weakest sector, forecasting an annual decline of 8% in the second half of 2025, influenced by high mortgage rates and reduced immigration affecting housing demand [4] - **Business Investment**: Business investment grew by 6% in the first half of 2025, exceeding expectations, but is expected to decline by 0.6% in the second half due to "repayment effects" from earlier import surges [6][7] Tariff Impact - Tariff policies are highlighted as a core variable affecting the economy, with short-term trade disruptions and long-term impacts on trade deficits [8] - Goldman Sachs notes that high tariffs will reduce import demand significantly in the second half of 2025, while a weaker dollar may support exports, leading to a decrease in the trade deficit as a percentage of GDP from 3.1% at the end of 2024 to 2.4% [8] Federal Reserve Policy Divergence - Bank of America maintains a "hawkish" stance, arguing against interest rate cuts in 2025 due to persistent inflation and a stable labor market [9][10] - Morgan Stanley predicts a rate cut of 175 basis points in 2026, citing expected economic slowdown and declining inflation [10] - Goldman Sachs emphasizes the uncertainty surrounding policy changes and their potential impact on investment volatility [10] Consensus and Divergence Among Analysts - There is a consensus that economic growth will remain below potential levels, with tariffs being a significant variable affecting trade and inflation [11] - Divergence exists in the focus areas of the analysts, with Goldman Sachs concerned about inventory and trade uncertainties, Morgan Stanley warning of market over-optimism, and Bank of America highlighting stagflation risks [12] Investment Recommendations - Goldman Sachs suggests focusing on export opportunities arising from reduced trade deficits, while Morgan Stanley recommends high-quality cyclical stocks and investment-grade credit bonds [13] - Bank of America advises avoiding high-leverage sectors sensitive to interest rates [13]

Core Viewpoint - The report highlights that Hailiang Co., Ltd. is expected to benefit from the U.S. tariff policy on copper products, leading to a profit growth that may exceed market expectations [1][2]. Investment Highlights - The U.S. announced a 50% tariff on imported copper semi-finished products and high-copper-content derivatives starting August 1, which was beyond market expectations. The tariff does not apply to upstream raw materials like copper ore and cathode copper, which is favorable for companies engaged in copper deep processing in the U.S. [2][3]. - Hailiang's U.S. factory, acquired in 2016, has a designed capacity of 100,000 tons, with an expected production scale of 30,000 tons by 2024. By the second half of 2025, the capacity is projected to reach 90,000 tons, with an estimated output of 70,000-80,000 tons by 2026 [2][3]. - The tariff is expected to increase industry demand and processing fees, leading to profit growth for Hailiang's U.S. operations. The company anticipates a recovery in net profit from a loss of 35.08 million yuan in 2024 to a significant increase in 2026 [2][3]. Profit Forecast and Investment Rating - Due to the unexpected tariff, the company has revised its earnings per share (EPS) forecasts for 2025-2027 to 0.83, 1.57, and 1.97 yuan per share, respectively. The corresponding price-to-earnings (PE) ratios are projected at 14.4, 7.6, and 6.1 times [3]. - The estimated market value of Hailiang is expected to reach 36-45 billion yuan by 2026, representing a potential increase of 50-90% from its market value of 23.8 billion yuan on August 1 [3].

Core Viewpoint - The automotive chip market is facing significant challenges, with expectations for recovery in 2025 being overly optimistic. The industry is burdened by high inventory levels and a slow adjustment process following the pandemic-induced supply-demand imbalance [2][17]. Group 1: Texas Instruments - Texas Instruments (TI) has taken a notably pessimistic stance, indicating that the automotive chip market has not yet recovered. While other sectors show signs of recovery, the automotive sector remains stagnant [4][5]. - TI's second-quarter performance may have been artificially boosted by customers placing orders to avoid potential tariffs, suggesting underlying demand weakness [4][5]. - The company maintains a stable capital expenditure outlook for 2025 at approximately $5 billion, but has provided a wide range for 2026, indicating uncertainty about future prospects [5]. Group 2: NXP Semiconductors - NXP's CEO expresses cautious optimism, suggesting that the two-year inventory surplus in the automotive chip sector may finally end this year, with many customers' inventory levels returning to normal [6][7]. - NXP's second-quarter revenue was $2.93 billion, a 6% year-over-year decline, but still exceeded expectations, indicating potential growth in the automotive sector [7][8]. - Despite optimism, NXP's third-quarter revenue forecast suggests a slight decline compared to the previous year, reflecting the ongoing uncertainties in the market [8]. Group 3: STMicroelectronics - STMicroelectronics is experiencing severe challenges, reporting an adjusted operating loss of $133 million in the second quarter, significantly below analyst expectations [10][11]. - The company's revenue fell 14% to $2.77 billion, primarily due to a decline in automotive chip sales, highlighting its over-reliance on the automotive sector [11][12]. - The company is under pressure from shareholders, particularly the Italian and French governments, due to its poor performance, which raises governance concerns [12]. Group 4: Global Market Dynamics - The automotive chip industry's challenges are not uniform globally, with Europe facing weak electric vehicle demand and the U.S. experiencing a surge in EV sales driven by policy changes [14][15]. - In China, intense price competition is affecting order volumes and profit margins, despite ongoing orders from customers [14][15]. - The impact of tariff policies is creating uncertainty in customer orders, with some manufacturers stockpiling chips, potentially leading to further demand declines [15]. Group 5: Future Outlook - The current downturn in the automotive chip industry is seen as a significant turning point, with companies needing to adapt to new market conditions and innovate to maintain competitiveness [17][18]. - The recovery, when it occurs, is expected to reshape the industry landscape, favoring companies that can innovate and manage costs effectively [17][18].

Core Viewpoint - The decline in the number of imported containers at U.S. ports indicates a shrinking of goods imports, influenced by tariff policies, marking the first negative growth in the second quarter since 2020 [1] Group 1: Container Import Data - In June, the number of imported containers at U.S. ports decreased for the second consecutive month, with a year-on-year decline of 7.9% [1] - In May, the decline was recorded at 6.6% year-on-year, indicating a significant drop in container imports [1] - The declines in May and June have completely offset the growth seen in April, where businesses accelerated procurement ahead of tariff measures [1]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 grew 3% to $10.85 billion, with adjusted operating income increasing 1% to $2.38 billion [7][28] - Adjusted operating margin was 21.9%, and adjusted EPS was $5.36 per share, exceeding guidance [7][19] - Year-to-date cash flow from operations was $2.1 billion, with free cash flow at $1.5 billion after net capital expenditures of $645 million [31] Performance by Business Segment - **Life Science Solutions**: Revenue increased 6% year-over-year, with organic growth at 4%. Adjusted operating income rose 6%, and adjusted operating margin was 36.8% [33] - **Analytical Instruments**: Revenue declined 3%, with organic growth down 4%. Adjusted operating income decreased 26%, and adjusted operating margin was 18.8% [34][35] - **Specialty Diagnostics**: Revenue grew 2% year-over-year, with organic revenue flat. Adjusted operating income increased 3%, and adjusted operating margin was 27% [36] - **Laboratory Products and Biopharma Services**: Revenue increased 4%, with organic growth at 3%. Adjusted operating income rose 11%, and adjusted operating margin was 13.8% [37] Market Data and Key Metrics Changes - In the pharma and biotech sector, mid-single-digit growth was achieved, driven by bioproduction and pharma services [8] - Academic and government revenue declined mid-single digits due to customer hesitancy [9] - Diagnostics and Healthcare revenue declined in the low single digits, impacted by challenges in China [10][28] Company Strategy and Industry Competition - The company focuses on three strategic pillars: high-impact innovation, trusted partner status, and a strong commercial engine [11] - Recent product launches include advanced mass spectrometers and a cryo transmission electron microscope, enhancing the company's competitive position [12][13] - The company is actively managing costs and leveraging its PPI business system to navigate tariff impacts and improve operational efficiency [18][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth drivers of the industry, expecting a gradual improvement in end markets [20][23] - The company anticipates organic revenue growth of 3% to 6% in 2026 and 2027, with a long-term outlook of over 7% [21][24] - Management highlighted strong customer relationships and ongoing investments in innovation as key factors for future success [14][23] Other Important Information - The company announced the retirement of CFO Stephen Williamson, with Jim Meyer set to take over in March 2026 [48][50] - The acquisition of Silventum's purification and filtration business is on track to close by year-end [16] Q&A Session Summary Question: Long-term growth outlook and market share - Management provided clarity on the 7% long-term growth outlook, emphasizing strong conviction in industry drivers and share gains [55][60] Question: Margin expansion drivers - Margin expansion is expected to be driven by PPI business system tools and operational efficiencies, despite tariff impacts [62][66] Question: Biopharma investment trends - Management noted broad strength in biopharma, with strong growth in bioproduction and pharma services, indicating a positive outlook [70][72] Question: Analytical Instruments growth outlook - The segment is expected to face challenges due to muted conditions in academic and government sectors, but new product innovations are anticipated to drive share gains [76][86] Question: Reshoring impact - There is increased interest in expanding US manufacturing capacity, with no signs of customers pausing purchases in bioproduction [81][84] Question: Academic and government funding outlook - Bipartisan support for life sciences funding remains strong, with expectations for stabilization in academic and government budgets [98]

1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoints of the Report - The container shipping market's EC盘面 maintains an overall volatile trend, with spot freight rates remaining relatively firm. The market is still speculating on the timing of the freight rate peak and the subsequent decline rate. Attention should be paid to tariff policies and geopolitical dynamics [4][5]. - The dry - bulk shipping market shows that large - vessel market is expected to be weakly volatile in the short term, while the medium - vessel market is expected to be strongly volatile. The tense situation in the Red Sea may increase shipping costs [15][19]. - In the tanker shipping market, short - term freight rate increases are mainly due to geopolitical conflict premiums. The impact of market sentiment changes on freight rates needs further attention [23]. 3. Summary by Directory Container Shipping Market Analysis and Strategy Recommendation - **Market Performance**: On July 10, EC2508 closed at 2022.5 points, up 0.5% from the previous day. The latest SCFIS European line reported 2258.04 points on July 10, up 6.3% month - on - month, and the SCFI European line reported $2101/TEU on July 4, up 3.5% month - on - month [2][4]. - **Logic Analysis**: Mainstream shipping companies' quotes are differentiated. The demand side is in the traditional peak season from July to August, but the impact of tariff policies on the shipping rhythm needs attention. The supply side shows that the weekly average capacity in July, August, and September 2025 is 284,900/289,500/298,700 TEU respectively, and the capacity in August and September has increased slightly compared to the previous schedule. Trump extended the tariff exemption period to August 1 and announced new tariffs on multiple countries [5]. - **Trading Strategy**: Unilateral trading should be volatile, focusing on tariffs and geopolitical dynamics. For arbitrage, conduct rolling operations on the 10 - 12 reverse spread [6]. Industry News - Trump plans to impose a 50% tariff on Brazil and will soon announce tariffs on semiconductors. He also issued trade letters to multiple countries on the 9th, announcing tariff rates on various countries' products [8]. - The EU aims to reach a trade agreement with the US before August 1. The EU is ready to take counter - measures, with the first phase to take effect on July 14 [9]. - HD Korea Shipbuilding & Marine Engineering received contracts for 4 container ships worth approximately $610 million, and Navios Maritime Partners will sign a series of new container shipbuilding orders with HJ Shipbuilding worth about $460 million [9]. - Regarding the Red Sea situation, Israel and Hamas are in cease - fire negotiations, and Trump said there is a high possibility of resolving the Gaza issue this week [10][11]. Dry - bulk Shipping Market Analysis and Outlook - **Freight Index**: The Baltic Dry Index (BDI) fell to 1423 points, down 0.6%, the Capesize Index (BCI) fell 5.5% to 1654 points, the Panamax Index (BPI) rose 3.3% to 1621 points, and the Handysize Index (BSI) rose 2.3% to 1151 points [14][15]. - **Spot Freight Rates**: On July 9, the freight rate for the Brazil Tubarao - Qingdao (BCI - C3) route was $18.43/ton, down 0.11% month - on - month, and the West Australia - Qingdao (BCI - C5) route was $7.32/ton, down 2.66% month - on - month. As of July 4, the weekly freight rates for some routes showed different changes [15][16]. - **Shipping Data**: From June 30 to July 6, 2025, the global iron ore shipping volume decreased by 362,700 tons month - on - month. In June 2025, Brazil shipped 13.4203 million tons of soybeans in 20 working days, compared with 13.9596 million tons in July last year [17]. - **News**: The situation in the Red Sea is tense, with two bulk carriers attacked and sunk, which may increase the Red Sea detour ratio and shipping costs. Vietnam imposed a final anti - dumping duty of 23.01 - 27.83% on Chinese hot - rolled coils from July 6, 2025 [17][18]. Industry News - In June 2025, Vietnam's coal imports were 6.4568 million tons, up 1.44% year - on - year and down 10.38% month - on - month. From January to June, the cumulative coal imports were 38.0258 million tons, up 13.75% year - on - year [20]. - Trump issued tariff letters to 8 countries on July 9, with tariff rates ranging from 20% to 50% [20]. Tanker Shipping Market Analysis and Outlook - **Freight Rates**: On July 9, the Baltic Dirty Tanker Index (BDTI) was 932, down 0.32% month - on - month and 12.41% year - on - year. The Baltic Clean Tanker Index (BCTI) was 537, up 0.56% month - on - month and down 36.75% year - on - year. The BDTI has declined recently, and the upward driving force of freight rates mainly comes from geopolitical conflict premiums [22][23]. Industry News - As of the week of July 9, Singapore's middle distillate inventory decreased by 149,000 barrels, light distillate inventory decreased by 368,000 barrels, and fuel oil inventory increased by 1.328 million barrels [24]. - In early July, the shipping prices of gasoline and diesel were supported but not significantly boosted. The new shipping orders of gasoline and diesel decreased or remained flat. The prices of 92 gasoline, 95 gasoline, and diesel showed a downward trend [24]. - OPEC restricted five major news agencies from participating in the oil industry conference, raising concerns about the transparency of the global energy market [24][25].

Core Viewpoint - Federal Reserve Chairman Jerome Powell indicated that most Fed members expect interest rate cuts later this year, depending on economic data [2][7]. Group 1: Powell's Statements - Powell stated that the U.S. economy is in a relatively good state, with a solid labor market, and that the Fed's cautious approach is to wait for more information [5]. - He acknowledged that the impact of tariffs is expected to show in upcoming inflation data, but uncertainties remain [6]. - Powell emphasized that the federal fiscal path is unsustainable, despite the debt levels being manageable [9]. Group 2: Market Reactions - Following Powell's comments, short-term interest rate futures indicated a 25% chance of a rate cut in July, up from less than 20% previously [2]. - Goldman Sachs revised its forecast, predicting the Fed will restart rate cuts in September, three months earlier than previously expected [13]. - Goldman Sachs expects rate cuts of 25 basis points in September, October, and December meetings [14]. Group 3: Employment and Economic Outlook - The U.S. job market remains "healthy," but finding jobs has become more challenging, posing short-term downside risks to employment data [15]. - The Labor Department is set to release June non-farm payroll data, which will be crucial for assessing the economic outlook [15]. Group 4: Political Context - President Trump criticized Powell and the Fed, suggesting that rate cuts could save "hundreds of billions" in interest costs [11]. - Trump's ongoing attacks on Powell challenge the Fed's traditional independence from the White House [12]. Group 5: Internal Fed Dynamics - There is a visible divide within the Fed, with some members advocating for immediate rate cuts due to cooling inflation, while others, led by Powell, prefer to wait and observe [19].

Economic Overview - The latest Federal Reserve Beige Book indicates a slight decline in U.S. economic activity, with rising tariffs and uncertainty impacting the economy broadly, leading to a "slightly pessimistic and uncertain" outlook [1][2] - The ISM Services PMI for May unexpectedly fell to 49.9, below the expected 52, marking the first contraction in service sector activity since July 2023 [4][5] Employment and Labor Market - Employment conditions remain stagnant across most Federal Reserve districts, with many reporting unchanged job markets and some industries planning layoffs [2][5] - The upcoming employment report is critical, with expectations of a modest increase in non-farm payrolls and a stable unemployment rate at 3.9% [7] Inflation and Pricing Pressure - The Beige Book notes that prices are rising at a moderate pace, but businesses expect faster increases in costs and prices in the future, with some planning to pass tariff-related costs onto consumers [2][3] - The ISM Services PMI report highlights a sharp decline in new orders and a significant rise in the prices paid index, indicating dual pressures from tariffs on demand and inflation [4][5] Market Reactions and Predictions - Market participants are hedging against a volatile interest rate path from the Federal Reserve, with expectations ranging from no rate cuts to aggressive cuts by 2025 [6][9] - The divergence in predictions from major banks like Goldman Sachs and Citigroup reflects the uncertainty surrounding the economic outlook and potential Fed actions [6][9] Regulatory Changes - The Senate confirmed Michelle Bowman as the Vice Chair for Supervision at the Federal Reserve, which may introduce new dynamics in financial regulation amidst rising economic uncertainty [8][9]

Report Summary 1. Investment Rating The report does not explicitly provide an overall industry investment rating. However, it presents a "neutral" view on the cotton market, considering various factors such as supply, demand, and macro - economic conditions [3]. 2. Core View The fundamental pattern of the cotton market has limited improvement. The cotton price is expected to have weak upward momentum in the near term. The market is influenced by factors like tariff policies, supply and demand changes, and macro - economic trends. The US cotton is expected to oscillate weakly below 70 cents due to a loose supply pattern, while the domestic cotton price may move in tandem with the external market. The actual increase in trade demand may be limited despite some warming expectations [3]. 3. Summary by Directory 3.1 Macro & Industry - The profit of China's above - scale industrial enterprises in April increased by 3% year - on - year, 0.4 percentage points faster than in March. However, the cumulative profit of the textile and clothing industry in April decreased by 15.4% year - on - year [3]. - The US federal court's ruling on the Trump tariff policy is uncertain, and the repeated changes in tariff measures make the industry cautious [3]. 3.2 Supply - **International**: As of the week ending May 25, the US cotton planting rate was 52%, the budding rate was 3%. The soil moisture in the US improved, which is negative for US cotton. The estimated cotton output in Brazil in the 2024/25 season is 3.9048 million tons, a 5.5% year - on - year increase [3]. - **Domestic**: Xinjiang's new cotton is growing well. The planting area in southern Xinjiang may increase, and the new - season output is expected to reach 7.2 - 7.4 million tons. The cost of planting is expected to remain stable or decline slightly. The imported cotton resources have decreased for four consecutive times [3]. 3.3 Inventory - **Domestic**: The industrial and commercial inventory in China is in the seasonal de - stocking stage, but the de - stocking speed has slowed down recently. The replenishment progress of cotton yarn, grey cloth, and blended products has also slowed down [3]. - **International**: In March 2025, the inventory of US wholesalers' clothing and fabrics reached the lowest level in 37 months, and the retailers' inventory has declined. There was no obvious replenishment in Q1, and the latest data will show the US replenishment intention after the tariff war [3]. 3.4 Demand - **Domestic**: The domestic textile industry is in the off - season. The number of orders from spinning mills rebounded limitedly and then declined again. The profit of spinning mills remains at around - 1000 yuan, and the industry's profit in April continued to decline [3]. - **International**: The demand for US cotton has not significantly improved, and the purchasing enthusiasm is limited. The "rush - to - export" effect may not be further amplified [3]. 3.5 Cotton Supply - Related - **Inventory Changes**: The total industrial and commercial cotton inventory in China decreased by 162,900 tons to 4.3275 million tons this week. The port inventory decreased by 4700 tons to 485,600 tons. The cotton import in April was about 168,662 tons, reaching a near - historical low [13]. - **Product Inventory**: The inventory days of pure cotton yarn, terminal grey cloth, and factory - made polyester - cotton yarn increased this week. The inventory of textile mills' grey cloth decreased in April. The inventory of the clothing and textile industry of Chinese industrial enterprises in March increased by 2 billion yuan to 180.94 billion yuan [17]. 3.6 Cotton Market Performance - **Cotton Futures and Spot**: The cotton price is in a weak - running state with insufficient positive drivers. The Zhengzhou cotton futures price mostly fluctuates within a range [5][7]. - **Cotton Yarn Futures and Spot**: The cotton yarn price was weak this week, showing slightly better resistance than cotton [8]. 3.7 Market Indicators - **US Cotton Planting**: As of May 25, the US cotton planting rate was 52%, and the budding rate was 3% [11]. - **Cotton Warehouse Receipts**: As of May 29, the registered cotton warehouse receipts in Zhengzhou were 11,157, and the total of warehouse receipts and forecasts was 11,537, equivalent to 461,480 tons of cotton [19]. - **Operating Rate**: This week, the spinning mill's operating rate decreased slightly to 74.5%, and the weaving mill's operating rate remained stable at 42.3%. The upward momentum of the operating rate slowed down [21]. - **Profit and Orders**: The immediate profit of spinning mills remained at around - 1000 yuan/ton. The order days of textile enterprises decreased to 11.38 days [23]. 3.8 Market Demand - Side - **Domestic Sales**: In April, the retail sales of clothing, footwear, and knitted textiles in China were 108.8 billion yuan, with a year - on - year increase of 2.2%. From January to April, the cumulative retail sales were 493.9 billion yuan, with a year - on - year increase of 3.1% [26]. - **Exports**: In April 2025, the total export of textiles and clothing in China was 24.1863 billion US dollars. Textile exports increased by 3.8% year - on - year in the first four months, while clothing exports decreased by 1.5% year - on - year in the first four months [29]. 3.9 Industry Overview - The cotton - spinning industry has higher volatility, with lower order peaks and higher inventory production links. The demand - side weakness and supply - side surplus have not been fully alleviated [31]. 3.10 Competitor Situation - The cotton - polyester and cotton - viscose price differences have reached near - four - year lows, and the pressure on cotton consumption has weakened temporarily. However, due to factors such as new capacity expansion in the chemical fiber industry, the pressure on cotton from competitors is expected to remain strong [34]. 3.11 CFTC Position Data The non - commercial positions and the net short positions of funds have made a small correction, but the report does not provide detailed data [35]. 3.12 Macroeconomic Impact The profit differentiation of domestic enterprises continues to intensify, and the consumer confidence indices in Europe and the US have declined, which affects the cotton market [37].