Group 1: Core Views on Guizhou Moutai - Guizhou Moutai's stock price has declined over 12% since May 15, raising concerns among investors, including notable investor Duan Yongping, who questions the market's fears [3] - Despite the downturn in the liquor sector, there is a notable influx of funds into liquor-related ETFs, indicating continued interest in the sector [3][4] - Public funds have a long-term heavy position in Guizhou Moutai, with 1,194 funds holding over 90 million shares as of the end of Q1 [4] Group 2: Market Trends and Consumer Sector Insights - The overall attention on the consumer sector has significantly increased, with public funds actively increasing their allocation to consumer-themed funds since Q2 [7] - The valuation of the liquor sector is currently at historically low levels, with strong cash flow and high ROE, suggesting potential for recovery as the macroeconomic environment stabilizes [5] - New consumption companies are attracting significant attention and capital, although many are currently at high valuations, indicating potential short-term adjustment risks [8]

Market Overview - The A-share market experienced a positive start in July, with the Shanghai Composite Index closing at 3457.75, up by 0.39%, and the Shenzhen Component Index closing at 10476.29, up by 0.11% [4][7] - The overall market sentiment showed a divergence in performance among different sectors, with the banking sector performing strongly while hard technology sectors faced declines [9][10] Industry Dynamics - The National Healthcare Security Administration and the National Health Commission issued measures to support the high-quality development of innovative drugs, including 16 specific initiatives aimed at enhancing R&D support, improving access to insurance, and optimizing clinical application processes [27][28][30] - Shandong Province released an action plan for the high-quality development of the robotics industry, targeting a manufacturing scale exceeding 50 billion yuan by 2027 and focusing on key technology innovations [31][33] - Beijing's market regulators published guidelines for cosmetic advertising to ensure compliance and protect consumer rights, emphasizing the need for accurate and responsible advertising practices [34] Company Updates - Liyuanheng (688499.SH) is progressing with its sulfide solid-state battery project, expected to be delivered before Q3, with revenue recognition pending customer acceptance [38] - Weisheng Information (688100.SH) has repurchased 3.5864 million shares, totaling 128 million yuan, as part of its share buyback plan [40]

Core Viewpoint - The letter emphasizes the importance of identifying and holding the best businesses in a city, focusing on a few certainty opportunities for long-term investment success [2][3]. Summary by Sections Investment Strategy - The strategy involves concentrating on a limited number of high-quality businesses and low-valued assets, with the belief that fewer, well-chosen investments lead to better outcomes [4][10]. - The current market is characterized by significant volatility and structural opportunities, particularly in new consumption and innovative pharmaceuticals [3]. Market Observations - The stock market is divided between high-growth sectors like new consumption and innovative drugs, and a majority of companies that remain undervalued and face strong competition [4]. - The shift from a unipolar to a multipolar world is expected to provide additional rewards for Chinese assets as they gain equal footing globally [2][10]. Key Investment Areas - The portfolio includes several promising sectors: 1. Major entertainment and social platforms evolving towards AI agents [5]. 2. Companies with strong pricing power in advanced chip design [6]. 3. Firms possessing scarce copper and gold resources amid a weakening dollar trend [7]. 4. Leading AI models and public cloud services essential for businesses utilizing AI [8]. 5. Brands focused on sports and outdoor lifestyles, showing significant improvements in supply chain and brand management [9]. Market Dynamics - The Hong Kong market has emerged as a leading venue for IPO financing, signaling a shift in international capital's perception of Chinese assets [10]. - The influx of capital into Hong Kong is contributing to a vibrant and prosperous market environment [10].

Group 1 - The domestic equity market showed an increase in risk appetite in June, with technology growth and large financial sectors performing well under external shocks [1] - The market is expected to maintain a high-level oscillation in July, with mid-year report forecasts becoming an important short-term sentiment indicator [1][2] - The upcoming July 9 deadline for the 90-day tariff suspension may impact the A-share market, with mixed negotiations ongoing between the US and other countries [1][2] Group 2 - The July Politburo meeting is anticipated to address short-term economic pressures, with expectations for fiscal policy to support the real estate market [2] - The July mid-year report preview season is approaching, with recent market sentiment being pessimistic despite structural improvements in corporate fundamentals [2] - The Federal Reserve's July meeting is expected to maintain a cautious stance on economic outlook and inflation, with a focus on the impact of tariffs on inflation in July and August [2][3] Group 3 - The consumption sector is expected to benefit from policies aimed at boosting demand, with strong expectations for structural opportunities in the consumer industry [3] - Dividend assets are likely to perform well due to low interest rates and stable fundamentals, attracting long-term capital [3] - Gold and defense-related assets remain attractive due to geopolitical uncertainties, with a focus on their defensive value [3] - The innovative pharmaceutical sector is poised for a catalytic period, benefiting from favorable policies and stronger support for high-quality development [3]

Core Viewpoint - IFBH Limited, the parent company of if coconut water, successfully went public on the Hong Kong Stock Exchange, achieving a market capitalization exceeding 10 billion HKD, showcasing the strong demand for coconut water in the Chinese market [3][4]. Group 1: Company Overview - IFBH Limited was founded in 2013 by a Thai entrepreneur and primarily focuses on coconut water, which accounts for 96% of its total revenue [3]. - The company entered the Chinese market in 2017 through e-commerce channels, positioning China as its main growth engine [3]. - For 2024, IFBH is projected to generate revenue of 158 million USD (approximately 1.1 billion RMB), reflecting an 80% year-on-year growth, with 92.4% of this revenue coming from mainland China [3][4]. Group 2: Market Position and Performance - IFBH holds a market share of approximately 34% in mainland China, significantly surpassing its closest competitor by more than seven times, maintaining the top position for five consecutive years [3]. - The company achieved a remarkable human efficiency, generating about 25 million RMB in revenue per employee, with only 46 employees [5]. Group 3: IPO and Investor Interest - The IPO process for IFBH was notably swift, completing the listing hearing in just over two months, setting a record for food and beverage companies in Hong Kong [4]. - During the IPO phase, IFBH was highly sought after by investors, with an oversubscription rate of over 2,600 times, attracting significant cornerstone investors including Sequoia China and UBS Asset Management [6]. Group 4: Marketing and Growth Strategy - The company has heavily invested in marketing, with expenditures increasing from 3.66 million USD to 7.36 million USD, a growth of over 100% [15]. - IFBH's marketing strategy includes collaborations with popular IPs and celebrity endorsements, similar to the approach taken by early-stage brands like Yuanqi Forest [16]. Group 5: Industry Trends and Challenges - The coconut water market has seen a surge in demand due to its perceived health benefits, with IF coconut water experiencing a 300% increase in sales in 2022 [11]. - However, the company faces challenges such as rising raw material costs and increased competition from private label brands, which could impact its market share [18][19]. - To sustain its competitive edge, IFBH needs to enhance its supply chain and diversify its product offerings post-IPO [20].

Core Insights - The article highlights the emergence of new consumer brands in Henan, such as Mi Xue Bing Cheng, Pang Dong Lai, and others, which are reshaping the commercial landscape of the region [1][9][18] - Henan is transitioning from a traditional agricultural province to a hub of consumer innovation and modern retail, driven by a combination of local resources and market opportunities [12][13][19] Group 1: Commercial Development - The opening of Zhengdong Vientiane City marks a significant step in establishing Zhengzhou as an international consumption center, featuring a mix of urban retail and flagship stores [4][6] - The region has seen a surge in commercial complexes and flagship stores, with Mi Xue Bing Cheng achieving record sales of 600,000 cups in a single day [4][5] - The establishment of a "米" shaped high-speed rail network has transformed Zhengzhou into a consumer hub, facilitating access to 123 cities and an average daily passenger flow of over 300,000 [4][17] Group 2: Consumer Trends - New consumption patterns are emerging, with brands like Mi Xue Bing Cheng representing affordable consumption, while Pang Dong Lai symbolizes quality consumption [9][11] - The rise of experiential and emotional consumption is evident, as brands focus on creating unique shopping experiences and emotional connections with consumers [16][19] - The article notes that the success of these brands is rooted in their ability to understand and respond to the genuine needs of consumers [12][19] Group 3: Economic Impact - The retail sales in Henan are projected to reach 27,597 billion yuan in 2024, reflecting a year-on-year growth of 6.1% [17] - In the first five months of this year, the province's retail sales totaled 11,820.14 billion yuan, with Zhengzhou contributing 2,763 billion yuan [17] - The emergence of new consumer brands is expected to enhance the economic landscape of Henan, with more brands likely to gain national and international recognition [18][20] Group 4: Future Prospects - The article suggests that the rise of new consumer brands in Henan is not a fleeting trend but indicative of a deeper transformation in the region's commercial ecosystem [14][18] - The integration of local brands with international ones is anticipated to enrich the consumer market and elevate the region's commercial profile [20] - The potential for further innovation and brand development in Henan is significant, as the region continues to leverage its cultural heritage and entrepreneurial spirit [16][21]

Core Viewpoint - The new consumption era is gaining momentum, driven by policy support and the spending power of Generation Z, leading to significant investment opportunities in the market [1][2]. New Consumption Highlights - The stock price of Lao Pu Gold surged by 14.94% on June 30, reaching a record high of 1035 HKD, reflecting the strong recovery of the consumption sector [1]. - New consumption categories such as pets and blind boxes are becoming market highlights as younger generations take the lead in consumer spending [1][2]. Market Analysis - The new consumption sector is experiencing strong phase growth, with good performance in earnings, leading to market confidence in future growth [2]. - Concerns have arisen regarding whether some new consumption stocks have reached overvalued levels after recent price increases, prompting a need for careful evaluation of individual stock valuations [3][4]. Valuation Insights - The overall valuation of the new consumption industry is at a mid-high level, attracting significant capital due to high growth expectations, although it has not reached the extreme levels seen in 2020-2021 [4]. - The uncertainty in future cash flows makes traditional DCF valuation challenging, suggesting that PEG may be a more practical valuation method for this sector [4]. Future Outlook - The new consumption sector is expected to continue evolving, with new models and products emerging, presenting ongoing investment opportunities [6]. - There may be a divergence within the sector, with companies that can consistently meet or exceed performance expectations likely to see stock price appreciation, while those lacking new products may face declines [6].

Investment Rating - The report rates the cosmetics and medical beauty industry as "Positive" [2][3] Core Viewpoints - The cosmetics retail sales growth for January to May 2025 is 4.1%, an increase of 2 percentage points compared to the same period last year, indicating a steady recovery in demand [3] - The performance of leading brands remains strong, with double-digit growth, supported by the theme of self-care in new consumption trends, leading to a positive outlook for the first half of 2025 [3] - The 618 shopping festival saw strong performances from domestic brands, with notable rankings on platforms like Tmall and Douyin [3] Summary by Sections Cosmetics Industry Outlook - The report anticipates significant revenue and net profit growth for major companies in Q2 and H1 2025, with specific forecasts: - Up Beauty Co. is expected to see a revenue increase of 16% and a net profit increase of 25% [3] - Marubi is projected to grow revenue by 22% and net profit by 28% in Q2 2025 [3] - Proya is expected to achieve a revenue growth of 10% and net profit growth of 15% in Q2 2025 [3] Key Companies Performance - Notable companies and their expected performance include: - Mao Geping is projected to have a revenue increase of 38% and net profit increase of 35% in H1 2025 [3] - Ruibin is expected to see a revenue increase of 15% and net profit increase of 15% in Q2 2025 [3] - Huaxi Biological is expected to maintain stable performance with a 0% revenue growth and a 10% net profit increase in Q2 2025 [3] Investment Recommendations - The report recommends focusing on companies with strong brand matrices and comprehensive product layouts, such as Up Beauty Co., Marubi, and Proya, which are expected to benefit from the live e-commerce traffic [3] - It also highlights the importance of niche market players like Ruibin and Mao Geping, who are positioned to capitalize on the rise of personal care and domestic beauty trends [3] - For the medical beauty sector, the report suggests focusing on companies with high R&D barriers and strong profitability, recommending companies like Aimeike and Langzi [3] E-commerce and Other Segments - The report suggests monitoring e-commerce companies like Ruibin, which is expected to see significant growth in revenue and net profit [3] - In the maternal and infant sector, Kid King is projected to exceed market expectations with a revenue increase of 10% and a net profit increase of 70% in Q2 2025 [3]

江苏 Jiang Su 本周是第35个全国节能宣传周，江苏省工信厅公布了江苏工业节能减碳最新成绩单。据初步测算，2024年全省单位地区生产总值能耗下降 3.5%左右，"十四五"前四年累计下降13%左右，预计可顺利完成国家下达的"十四五"累计下降14%的目标任务。 6月30日，第十七届莫愁湖荷花文化艺术展演——"荷而不同"之金陵美石展在南京莫愁湖美术馆开展。130余方以"荷"为主题的天然奇石错落陈 列，在方寸之间演绎着"荷而不同"的自然美学。 邵丹 摄 视觉江苏网供图 股市 Equity Market 国内 Domestic 苏超激战正酣，在体育用品出口的赛场上，江苏企业的表现同样亮眼。据统计，今年1—5月，江苏体育用品及设备出口68亿元，同比增长 7.8%。 南京住房公积金管理中心6月30日发布新政策，扩大异地贷款范围至全省，放宽提取条件，延长贷款期限至30年，并下调贷款利率0.25个百 分点，以优化公积金使用，支持购房者。 6月30日，2025年上半年A股收官，十大牛股新鲜出炉。联合化学以441%的涨幅位居榜首，舒泰神以403%的涨幅位居第二，ST宇顺 （355%）、ST信通（304%）紧随其后。北交所的九 ...

Core Viewpoint - The investment landscape is shifting towards understanding the consumption patterns of the younger generation, particularly the post-95 demographic, which is driving new consumption trends focused on emotional value rather than just functional satisfaction [1][2]. Group 1: New Consumption Trends - The core driving force of new consumption has transitioned from "functional satisfaction" to "emotional value," with young consumers willing to pay a premium for experiences and cultural recognition [2]. - The Z generation's consumption preferences are reshaping the market, challenging traditional valuation frameworks used in mature industries like liquor and home appliances [2][36]. - Investment strategies must adapt to these changes by focusing on emotional needs and innovative product categories that resonate with younger consumers [2][36]. Group 2: Investment Strategies - To effectively invest in new consumption, it is suggested to leverage fund managers who understand the younger demographic, such as those from Penghua Fund, which employs post-95 fund managers [3][36]. - The Penghua Fund's "Here is China" series has successfully engaged young consumers by appealing to their patriotic sentiments, showcasing the importance of aligning investment products with youth culture [3][36]. - The Penghua Fund's investment approach includes a mix of active and passive products, targeting sectors that emphasize experiential and emotional consumption [2][4]. Group 3: Fund Performance and Manager Insights - Fund manager Xie Tianyuan, one of the youngest in the industry, has achieved a net value growth rate of 27.55% in 2025, indicating strong performance in the new consumption sector [6]. - Xie Tianyuan's portfolio includes significant holdings in companies like Pop Mart (10.48%) and other brands that cater to the emotional and experiential needs of young consumers [7][6]. - His dual identity as both an investor and a consumer allows him to understand the underlying narratives and cultural significance of various IPs, enhancing his investment decision-making [8][9]. Group 4: ETF Products - The Hong Kong Stock Consumption 50 ETF (159265) is highlighted as a stable investment option that aligns with the "self-pleasing" consumption characteristics of the Z generation [20][29]. - This ETF focuses on companies that resonate with the younger demographic, emphasizing local brands and experiences over traditional imported goods [20][21][23]. - The ETF's structure is designed to capture the growth potential of new consumption trends, differentiating itself from traditional indices that are heavily weighted towards mature sectors like liquor [30][32]. Group 5: Market Dynamics - The shift in consumer demographics is leading to a new era of investment opportunities, as younger entrepreneurs and companies emerge to meet the evolving demands of the market [35][36]. - The current economic transition from debt-driven to innovation and consumption-driven growth highlights the importance of investing in youth-oriented sectors [35][36]. - The emergence of new consumption patterns indicates that understanding and investing in the preferences of younger consumers will be crucial for future growth [36][37].