Industry Overview - The 138th Canton Fair concluded on November 4, attracting over 310,000 foreign buyers from 223 countries and regions, marking a 7.5% increase from the previous session, setting a new historical high [2] - The on-site intended export transactions reached $25.65 billion, reflecting a growth of approximately 2.8%, which is comparable to the 3% growth seen in the spring fair [2] - Notably, buyers from "Belt and Road" countries numbered 214,000, up 9.4%, accounting for 69% of total attendees. Significant increases in buyers from the EU, Middle East, the US, and Brazil were observed, with growth rates of 32.7%, 13.9%, 14%, and 33.2% respectively [2] - The report suggests that the recovery of European and American buyers, combined with the recent reduction of 10% in fentanyl tariffs and a one-year pause in the trade war between China and the US, indicates a likely increase in China's export growth [2] Advanced Manufacturing - Sinopec and LG Chem announced a joint development of sodium-ion battery materials, focusing on energy storage and low-speed vehicles. LG has advantages in cathodes, electrolytes, customer validation, and compliance systems, while Sinopec has strengths in petrochemicals, carbon materials, and B2G resources, creating a complementary advantage [6] - The sodium-ion battery market in China is projected to grow from 10 GWh in 2025 to 292 GWh by 2034, with an average annual growth rate of approximately 45%. By 2030, it is expected that the Chinese market will account for over 90% of global sodium-ion battery production [6] - The report anticipates a significant increase in the market's attractiveness for sodium-ion batteries, driven by the mainline of grid absorption and energy storage configuration [6] Company Analysis - Zhenai Meijia achieved revenue of 724 million yuan in the first three quarters of 2025, representing a year-on-year increase of 16.16%. The net profit attributable to the parent company was 230 million yuan, a substantial increase of 310.28% [8] - In Q3 alone, the company reported revenue of 334 million yuan, up 10.19% year-on-year, with a net profit of 33 million yuan, reflecting a year-on-year growth of 48.93%. The significant increase in net profit was primarily due to a one-time gain of approximately 190 million yuan from land acquisition compensation [8] - The company's construction projects increased by 30.69% compared to the beginning of the year, mainly due to ongoing investments in the Suqi factory. The company is actively expanding capacity or upgrading technology to lay a foundation for long-term development [8] - As of the end of Q3, the company's advance payments surged by 98.67% compared to the beginning of the year, primarily due to prepayments for raw material purchases, indicating optimism about future orders and the upcoming sales peak, which may support Q4 performance growth [8]

Core Viewpoint - The A-share market saw a total of 68 stocks hitting the daily limit up on November 4, with notable performances in sectors such as medical and controllable nuclear fusion [1][2]. Group 1: Stock Performance - ST Zhongdi led with 13 consecutive limit-up days, primarily in the real estate sector [1]. - ST Baoying followed with 7 consecutive limit-ups in the construction decoration sector [1]. - HeFu China achieved 6 consecutive limit-ups, focusing on smart medical technology [1]. - HaiLu Heavy Industry and LanShi Heavy Industry both recorded 2 consecutive limit-ups in the controllable nuclear fusion sector [1][2]. Group 2: Sector Highlights - The medical sector showed strong performance with multiple stocks, including HeFu China and WeiGao Blood Purification, achieving 6 and 2 consecutive limit-ups respectively [1][2]. - The controllable nuclear fusion sector is gaining traction, as evidenced by HaiLu Heavy Industry and LanShi Heavy Industry's recent stock performance [1][2]. - Other sectors with notable performances include real estate, construction decoration, and industrial machinery, indicating a diverse range of investment opportunities [1][2].

Core Viewpoint - LG Chem has signed a joint development agreement with Sinopec for sodium-ion battery materials, aiming to diversify their sodium-ion battery business for global energy storage systems (ESS) and electric vehicle markets [1] Group 1 - The collaboration will focus on expanding into clean energy and high-value-added materials [1] - The partnership targets both the Chinese market and global markets [1]

Core Viewpoint - LG Chem and Sinopec have signed a joint development agreement for sodium-ion battery materials, focusing on core components such as anode and cathode materials, aiming to enhance supply chain stability and cost competitiveness [2]. Group 1: Joint Development Agreement - The agreement involves the joint development of sodium-ion battery core materials, specifically anode and cathode materials [2]. - The collaboration aims to diversify the sodium-ion battery business, targeting global energy storage systems (ESS) and electric vehicle (EV) markets, including China [2]. - Both companies plan to expand their cooperation into clean energy and high-value-added materials [2]. Group 2: Strategic Statements - LG Chem's Vice Chairman, Shin Hak-cheol, emphasized the importance of timely development of next-generation battery materials to align with customer strategies [2]. - Sinopec's Chairman, Hou Qijun, stated that this collaboration will enhance both companies' technological and market competitiveness, contributing to energy transition and sustainable development [2].

Core Viewpoint - LG Chem and Sinopec will collaborate to develop sodium-ion battery materials, indicating a strategic partnership aimed at advancing battery technology and addressing the growing demand for energy storage solutions [1] Group 1: Company Collaboration - The partnership between LG Chem and Sinopec focuses on the development of sodium-ion battery materials, which are seen as a potential alternative to lithium-ion batteries [1] - This collaboration is expected to leverage LG Chem's expertise in battery technology and Sinopec's resources in materials [1] Group 2: Industry Implications - The development of sodium-ion batteries could significantly impact the energy storage market, providing a more sustainable and cost-effective solution compared to traditional lithium-ion batteries [1] - As the demand for energy storage solutions continues to rise, this partnership positions both companies to capitalize on emerging market opportunities [1]

Core Viewpoint - The company has confirmed that it does not have additional investments in lithium hexafluorophosphate production beyond its joint ventures with Tianji Shares and Tai Rui Lian Teng, which has a production capacity of 15,000 tons that commenced last year. The company is actively engaged in research and development for solid-state and sodium-ion batteries, with some new lithium salt products already achieving mass sales in solid-state lithium-ion batteries [2]. Group 1 - The company has a joint venture with Tianji Shares and Tai Rui Lian Teng focused on producing lithium hexafluorophosphate [2]. - The initial production capacity of the joint venture is 15,000 tons, which began operations last year [2]. - The company does not have other investments in the lithium hexafluorophosphate sector apart from the mentioned joint ventures [2]. Group 2 - The company is continuously investing in research and development for new battery technologies, including solid-state and sodium-ion batteries [2]. - Some new lithium salt products have already been sold in bulk for use in solid-state lithium-ion batteries [2].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future investment returns [4][6]. Core Insights - The company reported a significant decline in performance for Q3 2025, with a 12% year-on-year decrease in revenue and a 69% drop in net profit attributable to shareholders [1][4]. - The company is actively pursuing the establishment of a joint venture to develop a sodium battery industry project, which is expected to enhance its product offerings and market position [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 141.64 billion yuan, down 12% year-on-year, and a net profit of 1.22 billion yuan, down 69% year-on-year. In Q3 alone, revenue was 46.02 billion yuan, a decrease of 13.5% year-on-year and 4% quarter-on-quarter, with a net profit of 0.48 billion yuan, down 28% year-on-year and 48% quarter-on-quarter [1][2]. Market Conditions - The company's main product sector, soda ash, is facing challenges due to oversupply and insufficient demand, leading to a decline in profitability. The average selling prices for key products in Q3 2025 were 1,100 yuan/ton for soda ash (down 32% year-on-year), 12,200 yuan/ton for viscose staple fiber (down 3% year-on-year), 2,671 yuan/ton for caustic soda (down 1% year-on-year), and 4,473 yuan/ton for PVC (down 13% year-on-year) [2]. Strategic Initiatives - The company is advancing its "Three Chains and One Cluster" project, focusing on high-end electronic chemicals and fine chemicals. It is also working on a seawater desalination project and a battery-grade sodium carbonate project, which is currently in trial production [3]. - A joint venture is planned with a total investment of 2.7 billion yuan to develop a sodium battery materials and systems integration project, with the company holding a 37.04% stake. The first phase of the project is expected to generate an annual revenue of 1.08 billion yuan and a profit of 167 million yuan upon reaching full capacity [3]. Profit Forecast and Valuation - The report has revised the profit forecasts for 2025-2027, projecting net profits of 182 million yuan (down 73%), 368 million yuan (down 57%), and 495 million yuan (down 59%) respectively. The expected earnings per share (EPS) for these years are 0.09 yuan, 0.18 yuan, and 0.24 yuan [4][5].

Core Viewpoint - The company, Huabao New Energy, is focused on the development, production, and sales of lithium battery energy storage products, with a significant portion of its revenue coming from overseas markets, benefiting from the depreciation of the RMB [4][8]. Group 1: Company Overview - Huabao New Energy was established on July 25, 2011, and went public on September 19, 2022, specializing in lithium battery energy storage products [8]. - The company's main revenue sources include portable energy storage products (77.46%), photovoltaic solar panels (20.84%), and other products (1.37%) [8]. - As of September 30, 2025, the company reported a revenue of 2.942 billion yuan, representing a year-on-year growth of 37.95%, while the net profit attributable to shareholders decreased by 10.62% to 143 million yuan [8]. Group 2: Strategic Partnerships and Innovations - On July 11, 2023, the company announced a strategic partnership with Zhongbi New Energy to jointly develop sodium-ion batteries, leveraging both parties' technological strengths [2]. - As of September 8, 2023, the company's portable solar products utilize BC-type batteries, employing advanced IBC battery technology with a conversion efficiency of up to 25% [2]. Group 3: Market Performance and Financials - On November 3, 2023, Huabao New Energy's stock price increased by 0.05%, with a trading volume of 136 million yuan and a market capitalization of 10.663 billion yuan [1]. - The company has a high overseas revenue ratio of 95.09%, benefiting from the depreciation of the RMB [4]. - The average trading cost of the stock is 67.36 yuan, with recent trading activity indicating a potential pressure point at 63.08 yuan [7].

Core Viewpoint - The company, Dingsheng New Materials, is experiencing significant growth driven by the booming new energy industry, positioning itself as a leading player in the aluminum foil sector, particularly for battery applications [4]. Company Overview - Dingsheng New Materials was established in 2003, focusing on the research, production, and sales of aluminum foil products, including battery foils, air conditioning foils, and aluminum plates [4][6]. - The company has become a leader in the domestic aluminum foil industry, with its production and export volumes consistently ranking first among peers [4][8]. Development Stages - **Foundation Period (2003-2014)**: The company laid a solid foundation by expanding production capacity and product lines [6]. - **Rapid Growth Period (2015-2018)**: Dingsheng achieved the highest production, export volumes, and market share in the domestic aluminum foil sector [6][7]. - **Strategic Transformation Period (2019-Present)**: The company capitalized on opportunities in the new energy sector, particularly in battery foil production, becoming an industry leader [8]. Financial Performance - In the first three quarters of 2024, the company reported revenue of 19.604 billion yuan, a year-on-year increase of 11.29%, and a net profit of 307 million yuan, up 36.61% year-on-year, indicating strong profitability [14][16]. - The robust performance has provided a solid foundation for the company's stock price increase [16]. Market Position and Clientele - Dingsheng is the largest manufacturer of battery aluminum foil globally, supplying major clients such as BYD, CATL, and LG Energy, which are key players in the new energy sector [16]. - The company's products are critical materials for lithium battery positive electrode collectors, enhancing its market position [16]. Technological Advancements - The company’s battery foils are applicable to sodium-ion and solid-state batteries, which are pivotal for next-generation battery technologies [16]. - Recent governance optimizations and cash dividend implementations have further bolstered investor confidence [16]. Industry Trends - On October 31, 2024, the new energy materials sector showed strong performance, benefiting Dingsheng as a popular stock in the sodium battery and lithium battery concepts [16]. - The ongoing expansion of the global electric vehicle industry and the commercialization of sodium-ion battery technology are expected to strengthen Dingsheng's competitive edge and customer barriers [16].

Group 1 - The report tracks stocks, industries, and sectors that are reaching new highs, indicating market trends and hotspots [1][4][26] - As of October 31, 2025, the distance to the 250-day new high for major indices is as follows: Shanghai Composite Index 1.53%, Shenzhen Component Index 2.53%, CSI 300 2.26%, CSI 500 2.89%, CSI 1000 1.85%, CSI 2000 2.22%, ChiNext Index 4.11%, and STAR Market 8.03% [6][26] - Among the CITIC first-level industry indices, the home appliance, textile and apparel, comprehensive, basic chemicals, and building materials industries are closest to their 250-day new highs, while food and beverage, banking, real estate, comprehensive finance, and pharmaceuticals are further away [9][26] Group 2 - A total of 1,077 stocks reached a 250-day new high in the past 20 trading days, with the most new highs in the electronics, machinery, and basic chemicals sectors [14][26] - The highest proportion of new high stocks is found in the non-ferrous metals, coal, and steel industries, with respective proportions of 63.71%, 47.22%, and 41.51% [14][26] - The cyclical and technology sectors had the most new high stocks this week, with respective proportions of 29.79% and 22.64% [17][26] Group 3 - The report identifies 50 stable new high stocks based on analyst attention, relative strength, trend continuity, price path stability, and new high sustainability [20][22][26] - The cyclical and manufacturing sectors had the most stable new high stocks, with 16 and 15 stocks respectively, with the most new highs in the non-ferrous metals and machinery industries [22][26]