Summary of Conference Call Records Industry Overview - The records focus on the **electricity and natural gas industries**, particularly in the context of the ongoing **U.S.-Iran conflict** and the emerging trend of **"computing power and electricity synergy"** [1][2][5]. Key Points and Arguments Electricity Industry - The electricity sector is becoming a **physical foundation for the AI era**, with the demand for computing power driving electricity consumption and potentially reversing electricity price trends [1]. - The **U.S.-Iran conflict** is expected to raise the price of natural gas due to supply constraints, making it more volatile compared to oil [1]. - **Coal-electric integration** is highlighted as a defensive strategy, providing cost hedging against price fluctuations, especially as computing power demand increases [1][6]. - **Shaanxi Energy** is projected to have a significant production year in 2026, with a coal output of 6 million tons and 4.02 GW of thermal power capacity, expecting a net profit of **3.3 to 3.4 billion yuan** [1][8]. - **Hydropower assets** are considered scarce in a low-interest environment, providing stable cash flow and essential peak regulation services, with recommendations to focus on **Yangtze Power** and **Guotou Power** [1][10]. - The gas sector is optimistic about companies with long-term contracts like **Shenzhen Gas** and **New Hope Group**, as well as gas source companies benefiting from rising gas prices [1][4]. Investment Opportunities - The electricity sector's recent strong performance is attributed to three main factors: 1. Increased market uncertainty due to the U.S.-Iran conflict, leading investors to seek defensive sectors like electricity [2]. 2. The emergence of "computing power and electricity synergy," which is now recognized as a national strategy, indicating a shift in the electricity sector's role [2]. 3. The attractiveness of "hello assets," which are seen as essential for AI development and difficult to replace [2][5]. Specific Investment Recommendations - Within the electricity sector, two areas are highlighted for investment: 1. **Hydropower**, which is less affected by price fluctuations, with companies like **Guotou Power** being recommended [3]. 2. **Coal-electric integrated companies**, which can manage costs effectively amid rising coal prices, ensuring stable performance [3][6]. Natural Gas Market Impact - The U.S.-Iran conflict is expected to have a more significant impact on the natural gas market than on oil, with potential supply gaps leading to a gradual increase in gas prices [4]. - The natural gas market is more vulnerable due to its reliance on specific shipping routes and the complexity of LNG production [4]. - Investment strategies should focus on gas companies with long-term contracts and domestic gas source companies that can benefit from rising prices [4]. Shaanxi Energy's Performance - Shaanxi Energy is set for a major operational year in 2026, with contributions from both coal and electricity sectors, expecting a profit of **3.3 to 3.4 billion yuan** [8]. - The company maintains a dividend payout ratio of **55% to 60%**, indicating a strong return for investors [8]. Water Power Investment Value - Hydropower is characterized as a **cash cow asset** in the current market, providing stability and essential services to the electricity system [10]. Additional Important Insights - The integration of coal and electricity is seen as a mechanism to share risks and stabilize supply, ensuring consistent profitability and dividend capabilities for integrated companies [6][7]. - The synergy between computing power and electricity is expected to create extensive investment opportunities across the entire electricity supply chain [5].

Group 1 - Korean investors have shown significant interest in A-shares, with top net purchases including SANY Heavy Industry, Power Construction Corporation of China, and Accelink Technologies, among others [1][3] - In the Hong Kong market, notable net purchases include China Energy Construction, MiniMax, and Harbin Electric, indicating a strong preference for energy and technology sectors [1] - The trend reflects a shift towards HALO assets, which are characterized by stability and growth potential, particularly in the context of rising global uncertainties [1] Group 2 - Over the past month, three ETFs have made it to the top 20 net purchases by Korean investors, with the Silverhua CSI Innovation Drug Industry ETF leading at a net purchase of $148.05 million [2] - The strong performance of the Korean stock market has encouraged local investors to allocate funds into Chinese assets, particularly in the innovative drug and artificial intelligence sectors [2][3]

Core Viewpoint - The article emphasizes the advantages of heavy asset industries with low obsolescence risk compared to light asset valuations, which are currently perceived as relatively high. It suggests that the TOKEN overseas expansion could convert overseas computing demand into domestic electricity demand, particularly in regions with low electricity prices like Southwest hydropower [1]. Group 1: Heavy Assets and Low Obsolescence - Heavy assets are characterized by low obsolescence risk, making them a more stable investment compared to light assets [1]. - The current market shows a divergence in opinions regarding AI, leading to a higher valuation of light assets, while heavy asset industries present a more attractive investment opportunity [1]. Group 2: TOKEN Overseas Expansion - TOKEN aims to transform electricity into computing power, utilizing AI large models to process information at the minimal semantic unit level, referred to as Token [1]. - The strategy involves leveraging internet and cross-border communication infrastructure to provide intelligent services globally, creating a closed-loop operation where "electricity does not leave the country, but computing value crosses borders" [1]. - The article suggests that the increase in overseas computing demand may prioritize matching with domestic electricity demand in low-price regions, particularly highlighting the potential of Southwest hydropower [1].

Group 1: Fund Research - The report establishes a systematic research framework for micro-disk style funds from four dimensions: index characteristics, micro-disk label system design, fund selection pool construction, and investment strategy research [1][8] - A three-layer label system is designed to locate micro-disk style funds, including "micro" quantity labels, "micro" quantity expansion labels, and correlation labels [9][13] - The report analyzes the sources of excess returns and operational mechanisms of micro-disk style, highlighting a strong reversal trading mechanism embedded in the index [12] Group 2: Electronic Industry - Moer Thread - Moer Thread is a leading domestic AI chip company focusing on the independent research and design of full-function GPUs, with applications in large model training, consumer electronics, and cloud computing [2][16] - The company is expected to achieve revenues of 1.508 billion, 2.758 billion, and 4.690 billion yuan in 2025, 2026, and 2027 respectively, benefiting from the increase in GPU localization rate [2][16] - The self-developed MUSA architecture meets core computing needs in high-performance computing, AI, and graphics rendering, with a complete product matrix covering various fields [17] Group 3: Non-Banking Financial - Capital Market Observation - The report discusses the ongoing deepening of capital market investment and financing reforms, emphasizing the support for high-quality leading institutions and differentiated development for small and medium-sized brokerages [3][20] - It highlights the need for a more inclusive and adaptive capital market, with a focus on enhancing direct financing and equity financing proportions [21][22] - The report suggests that strong comprehensive strength and business capabilities of leading brokerages will provide opportunities in the capital market [23] Group 4: Food and Beverage - Haitian Flavoring - Haitian Flavoring is expected to benefit directly from the recovery of the restaurant sector, with a focus on the value of leading configurations [5][24] - The company has shown better growth than the industry through efficient expense investment and refined market operations, particularly in the household sector [24] - The report anticipates continued improvement in gross margin due to cost advantages and enhanced supply chain efficiency [25] Group 5: Computer Industry - Desay SV - Desay SV reported a total revenue of 32.557 billion yuan in 2025, with a year-on-year growth of 17.88%, and a net profit of 2.454 billion yuan, up 22.38% [27][28] - The company has made significant progress in new business areas such as intelligent cockpits and autonomous vehicles, enhancing its competitive advantage [27][28] - The report predicts revenue growth to 38.14 billion, 44.30 billion, and 50.94 billion yuan from 2026 to 2028, maintaining a "buy" rating [28] Group 6: Power Equipment - Dajin Heavy Industry - Dajin Heavy Industry achieved a revenue of 6.174 billion yuan in 2025, a year-on-year increase of 63.34%, and a net profit of 1.103 billion yuan, up 132.82% [30][31] - The company is expected to benefit from the accelerated development of offshore wind power in Europe, with a significant portion of revenue coming from exports [30][31] - The report maintains a "buy" rating, forecasting net profits of 1.717 billion, 2.490 billion, and 3.462 billion yuan from 2026 to 2028 [32] Group 7: Automotive - Yixin Group - Yixin Group reported a revenue of 11.560 billion yuan and a net profit of 1.199 billion yuan in 2025, with significant growth driven by its fintech services [42][43] - The company has seen a rapid increase in its second-hand car financing transactions, which now account for 56% of total automotive financing [43] - The report maintains a "buy" rating, expecting a net profit of 1.486 billion yuan in 2026, reflecting a 24% year-on-year increase [43]

Overall Viewpoint - The government work report emphasizes carbon dual control, hydrogen energy and green fuels, and computing power and electricity synergy, with the latter becoming a current market focus [4] - There is some divergence in the market regarding the targets for carbon dual control during the 14th Five-Year Plan period and the goal of reducing carbon dioxide emissions per unit of GDP by 17% and 3.8% by 2026, indicating that more efforts are needed to achieve these targets [4] - The outlook for hydrogen energy, particularly hydrogen, ammonia, and methanol, remains positive, with related stocks having accumulated certain gains, although short-term profit-taking may occur [4] - The government work report mentions "computing power and electricity synergy" for the first time, marking it as a strategic task for the start of the 14th Five-Year Plan, with power operation, source-network-load-storage, and virtual power plants being key components [4] Group 1: Electricity Operators - The investment logic for electricity operators is based on the bottom of the electricity price cycle and mid-term expectation reversal, with actual projects demonstrating the synergy between electricity and computing power [5] - The sector has a low price-to-book (PB) valuation, providing a safety cushion and reasonable odds for investment [5] Group 2: New Energy Projects - Microgrids, virtual power plant projects, and new power system logic are expected to continue to be implemented based on new energy consumption, green electricity direct connection, and zero-carbon parks [6] - Compared to North American electricity equipment targets, related stocks in this sector are still undervalued [6] Group 3: Emerging Technologies - The sectors of space photovoltaics, European offshore wind, and energy storage for residential and commercial use show favorable conditions and require ongoing monitoring [7]

Market Overview - A-shares experienced a volatile pullback this week, influenced by geopolitical conflicts, with the oil and petrochemical sectors leading the industry index gains [5] - The stock-type ETF saw a slight net outflow of funds, and the weekly financing increased turned negative, indicating a cautious market sentiment [5] - The market is expected to maintain a volatile upward trend, with a medium to long-term focus on "dividend + technology" as the main investment strategy [5] REITs Market - The secondary market prices of publicly listed REITs in China showed an overall decline, with the CSI REITs closing at 789.81 and the CSI REITs total return index at 1027.62, both with a weekly return rate of -0.35% [6] - Compared to other major asset classes, the return rates ranked from high to low are: crude oil > pure bonds > REITs > US stocks > convertible bonds > gold > A-shares [6] Electric Power and Environmental Protection - The government work report emphasized carbon dual control, hydrogen energy, and green fuel, with market expectations already set for carbon dual control and hydrogen energy [6] - The concept of "computing power and electricity synergy" is becoming a current market focus, with potential investment opportunities in this area [6] - The electric power operator sector has a low PB valuation and offers a safety cushion, with microgrid and virtual power plant projects expected to continue to emerge [6] Public Utilities - The national carbon reduction targets for 2026 and the "14th Five-Year Plan" were released, aiming for a 3.8% reduction in carbon emissions per unit of GDP by 2026 and a cumulative reduction of 17% during the "14th Five-Year Plan" [8] - There is a positive outlook for enhancing green electricity consumption scenarios, particularly in hydrogen production and data center power supply [8] - Recommended companies include Electric Power Investment Green Energy, Goldwind Technology, and power operators like Yunnan Energy and Gansu Energy [8] Company Performance - For 2025, the company expects to achieve revenue between 9.1 billion to 9.2 billion yuan, a year-on-year increase of 34.0% to 35.4%, exceeding market expectations [8] - The projected net profit for 2025 is between 1.14 billion to 1.16 billion yuan, reflecting a year-on-year increase of 41.9% to 44.4% [8] - The first half of 2025 is expected to generate revenue of 4.11 billion yuan, a 17.3% increase year-on-year, while the second half is projected to reach 5.04 billion yuan, a 53.2% increase year-on-year [8]

Investment Rating - The report maintains a recommendation for the transportation industry, indicating a positive outlook for specific sectors within the industry [3]. Core Insights - Geopolitical risk premiums are embedded in tanker freight rates, with a focus on the defensive value of dividend assets [1]. - The shipping market is under pressure due to escalating conflicts in the Middle East, leading to a tightening of the tanker market and increased freight rates [16]. - Infrastructure assets are expected to see valuation recovery, with a recommendation to select stocks that offer dividend benefits [19]. - The air travel sector is experiencing a growth trend in demand, but caution is advised regarding the impact of rising oil prices on profitability [25]. - The express delivery sector is showing signs of recovery in demand growth, with potential for valuation improvement as competition stabilizes [21]. Shipping Sector Summary - The shipping industry is experiencing a rise in freight rates due to geopolitical tensions, particularly in the Middle East, with specific routes seeing significant price increases [12][16]. - The SCFI index shows a weekly increase, with notable rises in rates for routes to the US and Europe [32]. - The report suggests focusing on shipping stocks such as COSCO Shipping Energy, COSCO Shipping Holdings, and others for potential investment opportunities [16]. Infrastructure Sector Summary - Weekly data indicates a significant increase in truck traffic, with a 229.7% week-on-week growth, although year-on-year comparisons show a decline [17][19]. - Port throughput has increased by 25.2% week-on-week, indicating a recovery trend despite a year-on-year decline [19]. - Recommended stocks in the infrastructure sector include Anhui Expressway, Tangshan Port, and Qingdao Port, which are seen as stable cash flow assets [19]. Express Delivery Sector Summary - The express delivery sector is witnessing a rebound in demand, with a 424.9% increase in collection volume week-on-week [21]. - The report highlights the competitive landscape, suggesting that regulatory support may enhance price stability and improve stock performance for leading companies [21]. - Recommended stocks include Shentong Express, Yunda Express, and SF Express, which are expected to benefit from operational optimizations [21]. Aviation Sector Summary - The aviation sector is experiencing a growth in passenger volume, with a year-on-year increase of 27.5% during the Spring Festival period [25]. - However, rising oil prices due to geopolitical tensions pose a risk to profitability, necessitating caution [25]. - The report emphasizes the importance of monitoring oil price trends and their potential impact on airline stocks [25].

Report Title - Overseas Equity (Hong Kong and US Stocks) Weekly Strategy Report [1] Report Date - March 8, 2026 [2] Analyst Information - Analyst: Dai Lu (Z0021475), Contact: Yang Teng (F03151619) [2] US Stocks Market Performance - This week, the "geopolitical situation" remained unresolved, and the US stock market continued its defensive and wait - and - see stance. The energy sector led the gains, while the three major US stock indexes declined. The rise in oil and gas prices reignited stagflation concerns, causing the consumer sector to perform weakly [3][5] - The VIX index soared to its highest level since April last year [4] Investment Strategy - Short - term: Maintain a certain defensive position (military/energy) and appropriately reduce the overall risk appetite of the portfolio. Wait for the situation to become clearer and then enter the market at low levels. Also, pay attention to the potential fluctuations brought by Oracle's earnings report and February CPI data next week [5][9] - Medium - to - long - term: US stock investment will return to fundamental endogenous factors. Hardware + HALO assets are favored [9] Key Events to Watch - Oracle will release its latest earnings report on March 11th. Last December, Oracle's earnings report with higher - than - expected CAPEX and lower - than - expected revenue triggered a pulse adjustment in the US stock market [6] Chinese - funded Stocks Market Performance - This week, the A - share and Hong Kong stock markets oscillated and closed lower. The trading theme was centered around "geopolitical games", with sectors such as petroleum and petrochemicals, shipping, and dividends leading the gains [10][11] Investment Strategy - Short - term: Maintain a balanced allocation of defensive sectors and wait for the situation to become clearer before buying at low levels [11] - Medium - term: A - shares are considered better than Hong Kong stocks. Adopt a balanced allocation strategy of technology + physical cycle, with a focus on the contraction of the technology circle (upstream infrastructure (domestic and foreign demand chains) > mid - stream cloud computing > downstream application software) [16] Hong Kong Stocks Market Performance - On Friday, the Hang Seng Technology Index rebounded strongly. This was due to JD.com signaling a reduction in takeaway investment. JD.com's Q4 conference call announced that the investment scale of its takeaway business in 2026 would be lower than the previous year, triggering a large - scale short - covering in the Hang Seng Technology Index [13][16] Investment Strategy - Short - term: Keep a certain defensive position (energy, military, and dividends) to hedge risks and wait for the situation to become clearer before buying at low levels [16] - Medium - term: A - shares are preferred over Hong Kong stocks. Hong Kong stocks face potential headwinds, such as VAT rumors, the threat of software business models being disrupted by large - scale models, and weak liquidity. HALO assets are more concentrated in A - shares [16]

Investment Ratings - The report maintains a "Buy" rating for both the power equipment and environmental protection sectors [1]. Core Insights - The government work report highlights key areas such as carbon dual control, hydrogen energy, and collaborative electricity computing, with the latter becoming a current market focus. There is some divergence regarding the targets for carbon emissions reduction during the 14th Five-Year Plan and by 2026, indicating a need for more effort to achieve these goals [3]. - The report expresses optimism about hydrogen energy, particularly in hydrogen, ammonia, and methanol, suggesting that these areas will present ongoing investment opportunities as more projects are expected to materialize throughout the year [3]. - The concept of collaborative electricity computing is introduced as a strategic task for the 14th Five-Year Plan, encompassing power operation, source-grid-load-storage, and virtual power plants [3]. Summary by Sections North America Power Supply - The report notes a power shortage in North America, with major tech companies committing to self-supply power for their data centers, indicating a strong trend that may lead to increased volatility in high-value stocks [4]. Investment Opportunities - The report suggests focusing on power operators, highlighting low PB valuations and safety margins, with recommended stocks including JinkoSolar, Gansu Energy, and others [4]. - It emphasizes the potential for microgrids and virtual power plants to continue developing, with suggested stocks like Guoneng Rixin and Anke Rui [4]. - The report also mentions the favorable outlook for space photovoltaics, European offshore wind, and energy storage, which require ongoing monitoring [4]. Energy Storage - The report discusses the impact of domestic energy storage capacity pricing policies and the ongoing power shortages in the U.S., suggesting that North American storage stocks may rebound significantly [6]. - It highlights the UK's "Warm Homes Plan," which aims to install 3 million solar systems by 2030, benefiting the energy storage market [6]. Wind Power - According to the National Energy Administration, China's onshore wind power capacity is expected to grow by 9.68% in 2024, while offshore wind capacity is projected to decrease by 40.85% [7]. - The report indicates a significant increase in wind turbine bidding capacity, with a 90% year-on-year growth expected in 2024 [11]. Steel Prices - Current steel prices as of March 6, 2026, are reported, with medium-thick plate prices at 3,382 CNY/ton and rebar prices at 3,312 CNY/ton [14]. Investment Suggestions - The report recommends focusing on European offshore wind and complete machine directions, as the industry is expected to see significant growth from 2026 to 2030 [16].

Group 1 - The core conclusion indicates that the A-share market is experiencing a "safety bull" phase, driven by the return of cross-border capital to China due to the geopolitical uncertainties from the US-Iran conflict and the appreciation of the RMB [1][10] - The report suggests that the return of cross-border capital will lead to a systematic "re-inflation" of domestic price factors (PPI + CPI), with a focus on trading the PPI chain in resource and export manufacturing sectors (oil/chemicals) before a complete reversal of the asset-liability contraction trend in the real sector [1][10] Group 2 - The report discusses "HALO assets," which are seen as safe assets that attract abundant dollar liquidity, particularly in the context of increasing de-globalization. These assets include heavy assets and low-elimination rate sectors such as energy, materials, and industrials [2][14] - It is noted that the recent pressure on AI narratives has led investors to favor "HALO assets," which are characterized as safe investments. The strong industrial capacity of China is highlighted as an active "safe asset" amid increasing de-globalization [2][15] Group 3 - The report highlights the struggles of the dollar, particularly the "petrodollar" system, which is facing challenges due to military actions by the US aimed at controlling global oil pricing. This situation is expected to lead to a temporary increase in dollar credit but does not alter the long-term trend of increasing credit cracks in the dollar [3][22] - The analysis indicates that even with rising oil prices, the long-term trend of dollar credit deterioration is unlikely to be reversed, as the US's industrial and military capabilities have declined [3][22] Group 4 - The report emphasizes the strengthening of the RMB's position, particularly in the context of the recent National People's Congress (NPC) discussions on debt resolution, which have shifted from "promoting" to "encouraging" the acquisition of commercial housing and actively resolving local government debt risks [4][28] - It predicts that China may experience a market rally similar to the "519 market" of 1999, driven by debt resolution policies and the potential for rapid quantitative easing (QE) by the People's Bank of China (PBOC) following the US Federal Reserve's QE [4][29] Group 5 - The report recommends sector allocation strategies for the A-share market, suggesting an increase in exposure to oil and chemical sectors in the first half of the year, followed by a shift to white liquor and technology sectors in the second half, contingent on the PBOC's QE actions [7][32] - The analysis indicates that the current bull market in A-shares is fundamentally driven by the appreciation of the RMB, which facilitates the return of cross-border capital and leads to a systematic re-inflation of domestic price factors [7][32]