Investment Rating - The report maintains a positive outlook on the industry, suggesting a focus on high-quality stocks with stable growth and reasonable valuations, particularly in the North Exchange sector for 2025 [6][12]. Core Insights - The North Exchange 50 Index has shown significant growth, with a 116.41% increase over the past year, indicating strong market performance compared to other indices [2][12]. - The report highlights the performance of various sectors, with the computer, basic chemicals, electronics, automotive, and social services sectors leading in growth, while beauty care, defense, construction, agriculture, and textiles lagged behind [17][20]. - New listings and upcoming IPOs are noted, including the recent listing of Zhigao Machinery, which specializes in rock drilling equipment and air compressors, indicating ongoing market activity [25][31]. Summary by Sections North Exchange Market Overview - As of August 15, 2025, the North Exchange comprises 271 A-share stocks with an average market capitalization of 3.183 billion [12]. - The North Exchange 50 Index increased by 2.40% during the week of August 11-15, 2025, closing at 1476.33 points, outperforming the Shanghai and Shenzhen indices [12][16]. Stock and Sector Performance - During the same week, 99 stocks rose, while 170 fell, resulting in a 36.53% increase in the number of rising stocks, a decrease of 15.69 percentage points from the previous week [16]. - The top five performing sectors were computer (21.19%), basic chemicals (8.65%), electronics (6.72%), automotive (3.45%), and social services (2.49%) [17][20]. New Stock Updates - Zhigao Machinery was listed on August 14, 2025, focusing on energy-efficient and environmentally friendly drilling and air compressor solutions, with a diverse product range [25][31]. - Upcoming IPOs include the subscription of Nengzhiguang and the listing of Hongyuan Shares, indicating continued interest in the North Exchange [31]. Key Companies and Earnings Forecast - Key companies highlighted include Tongli Co., Wuxin Tunnel Equipment, and Kaide Quartz, with earnings per share (EPS) forecasts showing growth from 2024 to 2026 [7]. - The report suggests a "Buy" rating for Tongli Co. and Wuxin Tunnel Equipment, while recommending "Hold" for Kaide Quartz and Hualing Co. [7].

Investment Rating - The report maintains a positive outlook on the industry, suggesting a focus on high-quality stocks with stable growth and reasonable valuations in the medium to long term [7][8]. Core Insights - The North Exchange 50 Index experienced a decline of 2.70% during the week of July 28 to August 1, 2025, closing at 1419.61 points, while the average market capitalization of the 269 A-share constituent stocks was 3.113 billion [7][13]. - The report highlights the performance of various sectors, with the top five performing industries being electronics (5.49%), pharmaceuticals (4.32%), textiles and apparel (1.26%), light industry manufacturing (0.39%), and food and beverage (-0.96%) [23][21]. - The report emphasizes the importance of focusing on undervalued stocks and thematic investments, recommending companies such as Tongli Co., Ltd. and Wuxin Tunnel Equipment for their growth potential [7][8]. Summary by Sections North Exchange Market Overview - As of August 1, 2025, the North Exchange A-share market consists of 269 stocks with an average market value of 3.113 billion. The North Exchange 50 Index saw a decrease of 2.70% during the specified week [7][13]. - The report notes a significant drop in the proportion of rising stocks, with only 19.33% of stocks increasing in value, a decrease of 51.56 percentage points week-on-week [21][23]. New Stock Updates - The report details the recent listing of Dingjia Precision on July 31, 2025, which specializes in the design, research, production, and sales of functional and protective products for consumer electronics [32]. - The company has established long-term relationships with major clients, including Compal Electronics and Delta Electronics, and its functional products accounted for 72.04% of total revenue in 2022 [32][33]. Key Companies and Earnings Forecast - The report provides earnings forecasts for key companies, including: - Tongli Co., Ltd. (Stock Code: 834599.BJ) with an estimated EPS of 1.99 for 2025 and a PE ratio of 11.40, rated as "Buy" [8]. - Wuxin Tunnel Equipment (Stock Code: 835174.BJ) with an estimated EPS of 1.64 for 2025 and a PE ratio of 40.05, also rated as "Buy" [8]. - Kaide Quartz (Stock Code: 835179.BJ) with an estimated EPS of 1.03 for 2025 and a PE ratio of 33.59, rated as "Hold" [8].

Group 1 - In the first half of 2025, the number of public funds heavily invested in North Exchange companies reached a record high of 39 [10][11] - The total amount of public fund investments in North Exchange companies in the first half of 2025 reached 9.892 billion yuan, with a heavy investment ratio of 0.17% [11][12] - The average return of 11 theme funds in the North Exchange was 51.72% as of July 25, 2025, with all funds achieving positive returns [18][21] Group 2 - The top ten companies by market value held by public funds in the North Exchange include Jinbo Biological, Tongli Co., Naconoer, Better Ray, and others [22][23] - The top ten companies with increased holdings by public funds include Tongli Co., Naconoer, and Better Ray, indicating a trend of increasing investment in these firms [25][26] - The top ten companies with reduced holdings include Audiwei, Lusi Co., and Wuxin Tunnel, reflecting a shift in investment strategy [27][28] Group 3 - The North Exchange 50 Index reported a weekly increase of 2.85%, reaching 1458.98 points, with a PE TTM of 68.42X [33][35] - The overall PE of North Exchange A-shares increased from 50.83X to 52.17X, indicating a rising valuation trend [30][32] - The daily average trading volume of North Exchange A-shares reached 31.082 billion yuan, up 42.03% from the previous week [32][34]

Core Viewpoint - The North Exchange (北交所) has shown significant growth in the first half of 2025, with the North 50 Index rising by 39.45%, positioning it among the top global stock indices. The outlook for the second half remains cautiously optimistic, with a focus on dividend, consumption, and innovation as key investment themes [1][6]. Market Performance and Drivers - The North Exchange's strong performance in the first half of 2025 was primarily driven by policy benefits, followed by liquidity improvements and valuation recovery. However, the market is currently experiencing a degree of valuation bubble that needs to be addressed through earnings growth [2][5]. - The market is expected to maintain a high level of volatility and correlation with domestic markets, influenced by the characteristics of small and innovative companies listed on the North Exchange [4][5]. Investment Opportunities - The North Exchange is positioned for continued growth, focusing on supporting innovative small and medium enterprises, particularly in advanced manufacturing and modern services. This aligns with national strategies to foster strategic emerging industries [3][6]. - Investment strategies should balance defensive and offensive positions, with dividends serving as a shield and domestic demand and innovation as the spear. The emphasis on stabilizing growth policies and enhancing domestic consumption is expected to create opportunities in cyclical core assets [7]. Future Outlook - The North Exchange is anticipated to continue its robust development, with significant potential for expansion and improvement in company quality. The market is likely to see increased attention from institutional investors, which could lead to substantial growth [3][4]. - Future reforms and measures, such as high-quality expansion of companies and the introduction of specialized indices, are expected to attract more market interest and investment [3][4].

Investment Rating - The report maintains a positive outlook on the industry, suggesting a focus on high-quality stocks with stable growth and reasonable valuations, particularly in the context of the North Exchange market [6][7]. Core Insights - The North Exchange 50 Index experienced a slight decline of 0.16% this week, closing at 1418.61 points, while the Shanghai and Shenzhen 300 Index, ChiNext Index, and Sci-Tech 50 Index saw increases of 1.09%, 3.17%, and 1.32% respectively [6][12]. - The report highlights that among the 268 stocks listed on the North Exchange, 101 stocks rose, 165 fell, and 2 remained flat, indicating a decrease in the proportion of rising stocks by 28.36 percentage points week-on-week [6][18]. - Key sectors showing positive performance include light industry manufacturing, environmental protection, petroleum and petrochemicals, electronics, and telecommunications, with respective gains of 3.83%, 3.17%, 1.78%, 0.75%, and 0.25% [6][19]. - The report emphasizes the importance of focusing on undervalued stocks and thematic investments, recommending companies such as Tongli Co., Ltd. (low valuation), Wuxin Tunnel Equipment (benefiting from western infrastructure), and others in semiconductor and photovoltaic sectors [6][7]. Summary by Sections North Exchange Market Overview - As of July 18, 2025, the North Exchange A-share component consists of 268 stocks with an average market capitalization of 3.105 billion [12]. - The North Exchange 50 Index's performance reflects a broader market trend, with notable fluctuations compared to other indices [6][12]. Stock and Industry Performance - The report details the performance of individual stocks and sectors, noting a significant drop in the number of rising stocks and highlighting the top and bottom performing industries [6][19]. - The report also tracks liquidity, indicating a daily average trading volume of 21.834 billion, up 1.31% from the previous week [22]. New Stock Updates - No new stocks were listed this week, but Huanyuan Co., Ltd. received registration approval, with Dingjia Precision scheduled for subscription next week [28][29].

万家北交所慧选基金经理叶勇。 7月11日，在2025新京报贝壳财经年会"金融大会"上，万家北交所慧选基金经理叶勇表示，北交所上市 企业以专精特新企业为主，大部分公司市值较低，因此，投资沪深市场的很多方法论在北交所无法应 用。基金经理必须自下而上精选好公司，在低位时买入并拿得住，才能获取长期超额回报。 Wind数据显示，截至今年7月11日收盘，叶勇管理的万家北交所慧选两年定开近一年回报达134.71%。 精选空间大的行业 投个股要"好公司、低价格、拿得住" 2021年11月，北交所鸣钟开市，作为服务创新型中小企业的主阵地，这家仅设立三年多的交易所凭借赚 钱效应火速出圈。 截至7月11日，今年以来，北交所代表指数北证50年内涨幅已达35.69%，在此大背景下，北交所主题基 金普遍表现亮眼，其中，叶勇管理的万家北交所慧选基金近一年回报达134.71%。 校对 穆祥桐 "低价格指静态估值处于相对较低水平，同时还应该具备较好的潜在成长性，如果说没有较好的潜在成 长性，很容易陷入低估值陷阱。"叶勇称，市场风云变幻，北交所市场前几年表现欠佳，如果熬不下去 也收获不了过去一年的收益，不但要拿得住，还要敢加仓，当然，这是对"拿 ...

Investment Rating - The industry investment rating is positive, indicating a favorable outlook for the sector, with a recommendation for key stocks based on their performance and valuation [33]. Core Insights - The report highlights that the North Exchange 50 Index experienced a slight increase of 0.41% during the week of July 7 to July 11, 2025, closing at 1420.81 points, while the average market capitalization of the A-share constituents is 3.113 billion [6][12]. - The report identifies that 66.04% of the stocks listed on the North Exchange rose during the same period, with a notable increase in the number of rising stocks compared to the previous week [17]. - Key sectors that performed well include social services, construction decoration, and building materials, with respective increases of 19.50%, 9.19%, and 7.67% [18]. Summary by Sections North Exchange Market Overview - As of July 11, 2025, the North Exchange A-share market consists of 268 stocks, with an average market capitalization of 3.113 billion. The North Exchange 50 Index showed a weekly increase of 0.41% [12]. - The trading volume decreased, with an average daily turnover of 21.552 billion, down 22.98% from the previous week [21]. Stock Performance - In the week from July 7 to July 11, 2025, 177 stocks increased in value, while 88 stocks decreased, indicating a positive market sentiment with a significant rise in the number of gaining stocks [17]. - The top-performing sectors were social services, construction decoration, and building materials, while the worst-performing sectors included oil and petrochemicals, food and beverages, and beauty care [18]. New Stock Updates - No new stocks were listed on the North Exchange during the week, but one company, North Mine Testing, passed the review for listing [26][27]. Key Companies and Earnings Forecast - The report emphasizes several key companies with their respective earnings per share (EPS) and price-to-earnings (PE) ratios, recommending "buy" for Tongli Co. and Wuxin Tunnel Equipment, and "hold" for Kaide Quartz and Hualing Co. [7].

Core Viewpoint - The Beijing Stock Exchange (BSE) has experienced a structural bull market in 2024, with the BSE 50 Index achieving a year-to-date increase of 39.45%, leading all major market indices [1][5]. Group 1: Market Performance - The BSE 50 Index has become a significant indicator of the market, comprising 50 representative companies with relatively small average market capitalization, highlighting many "specialized and innovative" small giants [5]. - The active management of BSE-themed funds has outperformed the index, with the Huaxia BSE Innovation Small and Medium Enterprises Selected Two-Year Open Fund (014283) achieving a net value growth rate of 72.16%, ranking third in the market [3][11]. Group 2: Market Drivers - A loose liquidity environment in China's financial market has provided ample "liquid capital," attracting funds to small-cap, high-growth companies on the BSE [6]. - The preference for small-cap stocks has increased during the early stages of economic recovery, with over 70% of BSE-themed funds outperforming the BSE 50 Index in the past three years [8]. Group 3: Investment Opportunities - The BSE remains an underappreciated source of alpha, with many quality companies yet to be fully discovered and priced, presenting significant value discovery opportunities for institutions with deep research capabilities [10][19]. - The Huaxia fund manager, Gu Xinfeng, emphasizes the importance of deep research and understanding of the market to capture long-term value, leveraging a unique understanding of the BSE and its companies [13][16]. Group 4: Future Outlook - The trading volume on the BSE has increased approximately 30 times over the past three years, indicating a significant improvement in trading ecology and liquidity [21]. - Continuous policy support aimed at enhancing the quality of listed companies and attracting long-term capital is expected to inject strong momentum into the market's long-term healthy development [22].

Key Insights - As of June 2025, China's foreign exchange reserves stood at 33,174 billion USD, indicating a stable economic environment [1] - The convertible bond market showed a 3.3% increase in June, following a 4.7% rise in the stock market, driven by policy stimuli and geopolitical factors [2][3] - The life sciences upstream sector is experiencing a turning point, with a projected revenue growth of 10.75% year-on-year in 2024, driven by stable investment and domestic substitution trends [7][8] - The North Exchange is expected to maintain high trading activity and market attention, with a focus on new industries such as artificial intelligence and commercial aerospace for the second half of 2025 [12][17] Convertible Bond Market - The convertible bond market's valuation is not overly high, with structural opportunities still available, particularly in sectors showing improved economic conditions such as non-ferrous metals, machinery, agriculture, and computing [4][3] - The market is transitioning from a policy-driven focus to a fundamental pricing approach, with expectations of a 5% economic growth target being met [3][4] - Recommended convertible bonds for July include Guotou Convertible Bond, Ran 23 Convertible Bond, and others, indicating a strategic focus on sectors benefiting from policy support [4] Life Sciences Upstream Sector - The life sciences upstream sector is characterized by high specialization and significant barriers to entry, with major companies expanding and exploring international markets [7][8] - The sector is poised for growth due to the booming demand for innovative drugs, with the Chinese antibody drug market expected to reach 510.8 billion RMB by 2030 [8] - Mergers and acquisitions are becoming more prevalent, with domestic companies looking to replicate the growth paths of global giants, enhancing industry concentration and growth potential [9][10] North Exchange - The North Exchange's trading activity has slightly decreased, with an average daily turnover of approximately 279.83 billion RMB, but it remains higher than other markets [13] - The North Exchange's overall price-to-earnings ratio is around 50.4 times, indicating a slight decline but still higher than other boards, with the electronics sector showing the highest ratios [14] - The North Exchange is optimizing its evaluation system to support the high-quality development of small and medium-sized enterprises, focusing on innovation and market ecology improvement [15][17]

Investment Rating - The industry investment rating is positive, indicating a favorable outlook for the sector, with a focus on companies with stable performance and reasonable valuations [35]. Core Insights - The report highlights that the North Exchange 50 Index experienced a slight decline of 1.71% this week, closing at 1415.04 points, while the average market capitalization of A-share constituent stocks is 3.083 billion [5][11]. - The report emphasizes the importance of focusing on quality stocks with stable growth and reasonable valuations in the North Exchange, particularly in the context of the 2025 investment landscape [5]. Summary by Sections Overall Market Overview - As of July 4, 2025, the North Exchange A-share market consists of 268 stocks, with an average market capitalization of 3.083 billion. The North Exchange 50 Index saw a decline of 1.71% this week, while the Shanghai and Shenzhen 300 Index increased by 1.54% [5][11]. - The average daily trading volume for the North Exchange 50 was 27.983 billion, down 17.81% from the previous week, with a turnover rate of 3.18% [5][24]. Stock and Industry Performance - In the past week, 50 stocks increased in value, while 217 stocks decreased, resulting in an increase ratio of 18.66%, which is a decrease of 74.63 percentage points week-on-week [17]. - The top five performing industries were Beauty Care (8.60%), Light Industry Manufacturing (1.9%), Pharmaceutical Biology (1.57%), Transportation (0.60%), and Environmental Protection (0.47%). Conversely, the bottom five industries included Electronics (-4.86%), Automotive (-4.58%), Communications (-3.92%), Media (-3.88%), and Public Utilities (-3.22%) [19][22]. New Stock Updates - No new stocks were listed on the North Exchange this week, but one company, Jinhua New Materials, passed the review for listing, while another, Beikang Testing, is scheduled for review next week [28][29]. Key Companies and Earnings Forecast - The report identifies key companies to watch, including: - Tongli Co., Ltd. (stock code: 834599.BJ) with a buy rating and an expected EPS of 1.99 for 2025 [6]. - Wuxin Tunnel Equipment (stock code: 835174.BJ) also rated as buy with an expected EPS of 1.64 for 2025 [6]. - Kaide Quartz (stock code: 835179.BJ) rated as hold with an expected EPS of 1.03 for 2025 [6]. - Hualing Co., Ltd. (stock code: 430139.BJ) rated as hold with an expected EPS of 0.34 for 2025 [6]. - Hengtou Open Source (stock code: 834415.BJ) rated as hold with an expected EPS of 0.22 for 2025 [6]. - Tianli Composite (stock code: 873576.BJ) rated as buy with an expected EPS of 1.03 for 2025 [6].