Investment Rating - The industry investment rating is "Overweight" for both construction and building materials sectors [7]. Core Insights - The report anticipates a continued weakening in traditional construction materials in 2Q25, while new materials show a divergence in demand [1]. - Construction activity is expected to remain subdued due to a weaker funding environment, with most construction companies experiencing slight revenue declines [2]. - Retail demand for building materials is gradually improving, although the engineering segment continues to face pressure [3]. - Cement prices are expected to decline, while glass supply pressures persist, impacting profitability [4]. - High-end fiberglass demand remains strong, with limited revenue decline expected for carbon fiber products [5]. Summary by Sections Construction Sector - In 2Q25, the issuance of special bonds is approximately CNY 1.88 trillion, a decrease of 22.7% from 1Q, leading to weaker order growth for most central construction enterprises [2]. - Local state-owned enterprises show varied performance, with regions like Sichuan expected to see profit growth, while others like Shanghai may experience delays [2]. - Steel prices are projected to continue declining, affecting revenue growth for steel structure companies [2]. Consumer Building Materials - Major raw material prices for waterproofing, coatings, and other categories have decreased year-on-year, with some categories facing significant price drops [3]. - The cumulative sales of commercial housing from January to May 2025 have decreased by 2.9%, while the retail sales of building and decoration materials have increased by 3.0% in the same period [3]. Cement and Glass - The average price of cement in 2Q25 is CNY 382 per ton, showing a year-on-year increase of 1.8% but a decline of 6.1% from the previous quarter [4]. - The average price of float glass has decreased significantly, with supply pressures expected to continue impacting prices [4]. Fiberglass and Carbon Fiber - The demand for high-end fiberglass products remains robust, with expectations for continued price increases in the future [5]. - Carbon fiber prices have stabilized, with a limited revenue decline anticipated for carbon fiber companies [5].

Investment Rating - The investment rating for Meituan-W (03690) is "Buy" (maintained) [1] Core Views - In Q1 2025, Meituan's total revenue reached 86.6 billion yuan, representing a year-over-year increase of 18%, slightly above Bloomberg consensus expectations by 1.3% [4] - Adjusted EBITDA for the same period was 12.3 billion yuan, up 52% year-over-year, exceeding Bloomberg consensus expectations by 6.2% [4] - Adjusted net profit was 10.9 billion yuan, a 46% increase year-over-year, significantly surpassing Bloomberg consensus expectations by 12.6% [4] - Core local business revenue was 64.3 billion yuan, also up 18% year-over-year, exceeding expectations by 1.5% [4] - New business revenue was 22.2 billion yuan, a 19% increase year-over-year, also above expectations by 1.4% [4] Summary by Sections Business Performance - Meituan's food delivery and flash purchase businesses have improved user engagement and purchase frequency through refined operations [5] - The food delivery segment has introduced differentiated products to meet diverse consumer needs and has implemented safety measures to enhance food safety transparency [5] - Flash purchase services have seen significant growth across various consumer categories, with transaction volumes tripling in certain areas [5] International Expansion - Keeta, a subsidiary, is expanding internationally, having entered the Saudi Arabian market and recently announced plans to enter Brazil with a commitment to invest 1 billion USD over the next five years [6] Financial Projections - Revenue projections for 2025-2027 are estimated at 386.3 billion, 454.3 billion, and 526.7 billion yuan, with growth rates of 14%, 18%, and 16% respectively [7] - Adjusted net profit forecasts for the same period are 38.4 billion, 49.9 billion, and 60.8 billion yuan, with growth rates of -12%, 30%, and 22% respectively [7] Long-term Outlook - The report maintains a positive long-term outlook on Meituan's operational capabilities and business barriers, emphasizing the company's strong execution in the retail sector [7]

Market Overview - The Asia-Pacific markets showed strong performance today, with the Nikkei 225 index closing up 1.18% at 33,982.36 points, the Australian S&P 200 index rising 1.29% to 7,745.4 points, and the South Korean Composite Index increasing by 0.95% to 2,455.89 points [1] - A-shares continued to strengthen, with the Shanghai Composite Index rising 0.76% to 3,262.81 points and the Shenzhen Component Index up 0.51% to 9,884.3 points. The total turnover in the Shanghai and Shenzhen markets reached 13,129 billion [2] - The European stock indices opened higher, with the UK FTSE 100 index gaining 2% and major indices in Germany, France, Italy, and the Euro Stoxx 50 all rising over 2% [3] - U.S. stock index futures were also up, with the Dow futures rising nearly 1% and the S&P 500 futures increasing over 1% [4] Resource Sector - The resource sector saw a collective rally, with coal, electricity, non-ferrous metals, oil, chemicals, and steel stocks all performing well [6] - In the coal sector, companies like Dayou Energy and Anyuan Coal Industry hit the daily limit, while New Dazhou A rose over 5% [7] - Analysts suggest that the coal sector is in the early stages of a new upward cycle, with a favorable supply-demand balance expected to persist over the next 3-5 years, making it a good time to invest in coal stocks [8] Precious Metals - The non-ferrous sector, particularly gold stocks, performed strongly, with companies like Huayu Mining and Hunan Gold hitting the daily limit, and others like Chifeng Gold and Hunan Silver rising over 7% [9] - Spot gold prices reached a new high of $3,245 per ounce, with UBS raising its gold price forecast to $3,500 per ounce and Goldman Sachs increasing its 2025 target from $3,300 to $3,700 per ounce [9] - Analysts believe that the current liquidity crisis in U.S. Treasuries has diminished their safe-haven appeal, making gold a more attractive investment option [9] Sports Sector - The sports concept stocks surged, with companies like Kangli Source and Jinling Sports hitting the daily limit, and others like Tanshihua Sports and Shuhua Sports also performing well [10][12] - The People's Bank of China and other departments recently issued guidelines to support the high-quality development of the sports industry, emphasizing financial support for infrastructure and major projects [12] Controlled Nuclear Fusion - The controlled nuclear fusion concept saw significant gains, with companies like Zhongzhou Special Materials hitting the daily limit and others like Changfu Co. and Hailu Heavy Industry also performing well [14] - The ITER project, which aims to develop nuclear fusion technology, has reached a key milestone with the completion of major components, indicating progress towards commercial viability [16] - Analysts highlight that advancements in high-temperature superconductors and AI are driving the commercialization of controlled nuclear fusion, which could lead to rapid development in the industry [16][17]