1. Report Industry Investment Rating - No specific industry investment rating is provided in the report. 2. Core Viewpoints - **Stock Index**: The A-share market showed a mixed performance with most indices closing higher. The TMT sector recovered while the consumer sector declined. The internal policy drive is the main theme for the stock index in 2025. Various policy measures are expected to help companies repair their balance sheets, promote stable economic development, and gradually increase stock market valuations. The overall view is that the stock index will be in a volatile state [1]. - **Treasury Bonds**: Treasury bond futures showed different trends, with some contracts rising and others falling. The central bank's operations affected the bond market, and after macro - disturbances, the bond market followed changes in the capital market and economic fundamentals. The bond market is expected to remain in a sideways volatile pattern in the short term [2]. 3. Summary by Directory 3.1 Research Views - **Stock Index**: On June 5, 2025, most A-share market indices closed higher. The Wind All - A index rose 0.42% with a trading volume of 1.32 trillion yuan. The CSI 1000 index rose 0.72%, the CSI 500 index rose 0.54%, the SSE 50 index rose 0.05%, and the SSE 300 index rose 0.23%. The TMT sector recovered while the consumer sector declined. April economic data showed a slight decline compared to March but remained resilient. Social retail sales increased by 5.1% year - on - year, supported by the "trade - in" policy. Social credit demand was weak in April, with a cumulative new RMB loan of 10.06 trillion yuan, a year - on - year increase of 2.86%, and M2 growth of 8% year - on - year. The Sino - US joint statement and domestic policies such as RRR and interest rate cuts, and measures to encourage long - term funds to enter the market are expected to boost the stock market [1]. - **Treasury Bonds**: On June 5, 2025, the 30 - year Treasury bond futures main contract fell 0.16%, the 10 - year main contract fell 0.01%, the 5 - year main contract rose 0.02%, and the 2 - year main contract rose 0.04%. The central bank conducted 1265 billion yuan of 7 - day reverse repurchase operations, with a net withdrawal of 1395 billion yuan. The capital market was generally loose. The central bank's upcoming 10000 - billion - yuan outright reverse repurchase operation led to a slight decline in Treasury bond yields. After adjustments, the bond market is in a sideways volatile pattern [2]. 3.2 Daily Price Changes - **Stock Index Futures**: On June 5, 2025, compared with June 4, IH rose 0.01%, IF rose 0.25%, IC rose 0.61%, and IM rose 0.79% [3]. - **Stock Indices**: The SSE 50 index rose 0.05%, the SSE 300 index rose 0.23%, the CSI 500 index rose 0.54%, and the CSI 1000 index rose 0.72% [3]. - **Treasury Bond Futures**: TS rose 0.03%, TF remained unchanged, T fell 0.04%, and TL remained unchanged [3]. - **Treasury Bond Yields**: The yields of 2 - year, 5 - year, 10 - year, and 30 - year Treasury bonds changed by - 1.45bp, - 0.46bp, 0.59bp, and 0.7bp respectively [3]. 3.3 Market News - The central bank announced that on June 6, 2025, it will conduct a 10000 - billion - yuan outright reverse repurchase operation with a 3 - month term using a fixed - quantity, interest - rate tender, and multiple - price winning method [5]. 3.4 Chart Analysis - **Stock Index Futures**: The report presents the trends of IH, IF, IM, IC main contracts, and the corresponding basis trends [7][8][11]. - **Treasury Bond Futures**: It shows the trends of Treasury bond futures main contracts, Treasury bond yields, basis, inter - period spreads, cross - variety spreads, and capital interest rates [14][16][18]. - **Exchange Rates**: Charts display the trends of the US dollar against the RMB, the euro against the RMB, forward exchange rates, the US dollar index, and cross - currency exchange rates [21][22][25].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 42.96 [8][9]. Core Views - The company is expected to benefit from the resilience of the retail market due to the expansion of home decoration subsidies and the improving channel structure, leading to a potential recovery in profit margins and operational flexibility [1]. - The "Immediate Living" and "Beautiful Countryside" initiatives are anticipated to accelerate the company's presence in the stock renovation and third- and fourth-tier markets, with a projected demand for stock renovation of approximately 11 to 12 million units per year from 2024 to 2026, reflecting a CAGR of 5% [2]. - The company is undergoing a channel transformation towards engineering distribution, maintaining a leading market share despite a decline in direct sales revenue, which is expected to stabilize in the coming years [3]. - The retail sales of construction and decoration materials reached RMB 53 billion in the first four months of 2025, showing a year-on-year increase of 2.3%, with a significant monthly increase of 9.7% in April [4]. Summary by Sections Financial Forecasts and Valuation - The company’s net profit forecasts for 2025 to 2027 are RMB 651.4 million, RMB 847.05 million, and RMB 1.09 billion respectively, indicating a CAGR of 48.7% [5]. - The company is assigned a PEG ratio of 0.75x for 2025, with a target price based on a PEG of 1.0x, reflecting the expected growth in the "Immediate Living" business and stable market share in engineering [5]. - The projected revenue for 2025 is RMB 13.203 billion, with a year-on-year growth of 9.07% [7]. Market Position and Competitive Landscape - The company is positioned to capture growth opportunities in the renovation market, with its brand strength gradually being validated against competitors like Nippon Paint [2]. - The engineering business is expected to maintain its leading market share while reducing impairment risks, with accounts receivable turnover improving to 3.6 in 2024 [3]. Operational Insights - The company is actively managing costs and improving operational efficiency, with expectations for continued profit elasticity due to effective expense control measures [4]. - The average price of titanium dioxide, a key raw material, has decreased by 9.6% year-on-year, which may limit further price declines in products [4].

Core Viewpoint - The Hong Kong stock market's new consumption sector is experiencing significant growth, driven by the emotional spending trends of the younger generation, particularly the Z generation, leading to high performance in stocks like Pop Mart and Lao Pu Gold [1][2]. Group 1: Market Performance - The new consumption sector in the Hong Kong stock market has seen leading stocks like Pop Mart and Lao Pu Gold achieving year-to-date increases of over 160% and 300%, respectively [1]. - The emotional consumption trend among the younger demographic is reshaping the market, with over 40% of their purchasing behavior driven by emotional satisfaction [2]. Group 2: Investment Opportunities - The Hong Kong Stock Connect Consumption ETF (fund code: 159245) is currently being issued, providing investors with a convenient tool to invest in the new consumption sector [1][4]. - The ETF tracks the National Index for Hong Kong Stock Connect Consumption Theme, which captures high-growth trends in the new consumption sector [4]. Group 3: Policy and Capital Flow - Strong underlying consumer demand is complemented by policy incentives and inflows of southbound capital, which are driving the consumption sector's strength [3]. - The "old-for-new" policy has significantly boosted sales, with over 1.1 trillion yuan in sales generated from five major categories by May 31 [3]. - Southbound capital has accelerated its inflow into Hong Kong stocks, with net purchases exceeding 610 billion yuan by June 3, focusing on non-essential consumption and technology sectors [3]. Group 4: Future Outlook - The current period is seen as an optimal time to invest in the Hong Kong new consumption sector, with clear signs of consumption recovery and improving liquidity in the market [4]. - The leading new consumption companies are still in the early stages of overseas expansion, indicating substantial growth potential [4].

Core Viewpoint - The expansion of the "old-for-new" vehicle replacement policy in Shanghai, which now includes vehicles registered outside the city, is driving significant consumer interest and sales in the automotive market, particularly for new energy vehicles. Policy Expansion - The new policy allows for a one-time subsidy of 15,000 yuan for consumers purchasing new energy vehicles priced over 100,000 yuan, and 13,000 yuan for fuel vehicles, provided they trade in their vehicles registered outside Shanghai [2][3] - The policy aims to activate potential replacement demand by broadening the subsidy eligibility from local to out-of-province vehicles [3] Market Response - Sales inquiries have surged at various dealerships, with significant increases in customer traffic noted, especially from owners of out-of-province vehicles looking to take advantage of the new policy [5][6] - The policy has led to a notable increase in sales of new energy vehicles, with manufacturers reporting substantial growth in sales figures [8][9] Consumer Behavior - Consumers are actively calculating the financial benefits of the new policy, with many finding the subsidies and trade-in values to be significant incentives for upgrading to new energy vehicles [5][6] - The overall vehicle population in Shanghai is projected to reach approximately 6.13 million by the end of 2024, with around 1.05 million being long-term out-of-province vehicles [6] Industry Impact - The "old-for-new" policy has stimulated the automotive market nationwide, with the Ministry of Commerce reporting that the automotive sector accounted for a significant portion of the 1.1 trillion yuan in sales driven by the policy [8] - Major automotive companies are responding to the increased demand by launching new models and enhancing their offerings, which has been reflected in strong pre-order numbers for new vehicles [9][10] Future Outlook - The government continues to support the automotive market through various initiatives, including tax reductions and additional subsidies, aimed at further encouraging vehicle replacement and enhancing consumer choice [9][10] - Companies in the automotive supply chain are also benefiting from the policy, with some focusing on expanding their vehicle recycling and dismantling operations to align with the new market dynamics [10][11]

Core Insights - The 618 shopping festival is evolving with new players like Meituan joining, indicating a need for fresh energy in a market that has become more rational and competitive [1] - Instant retail has transformed from an optional convenience to a baseline expectation for consumers, with major e-commerce platforms increasing investments in this area [2] - AI technology is increasingly integrated into the e-commerce supply chain, enhancing efficiency and enabling new marketing tools for merchants [4][5] - Consumer decision-making is shifting towards a balance of rational cost-benefit analysis and emotional value, indicating a deeper engagement with brands [7] - The "trade-in" policy and the activation of lower-tier markets are driving new growth opportunities for e-commerce platforms [8][10] - The competition landscape is evolving, focusing on customer experience, emotional resonance, and effective management of existing assets [11] Group 1: Instant Retail - Instant retail has become a critical component of consumer experience, with platforms like Meituan and JD.com enhancing their delivery capabilities [2] - Major platforms are launching features like "1-hour delivery" to meet consumer demands for speed and convenience [2] Group 2: AI Integration - AI tools are being deployed across the e-commerce chain, with Alibaba and JD.com offering new AI-driven marketing solutions to help merchants reduce costs and improve efficiency [4][5] - The introduction of AI-generated video content is significantly reducing production costs and time for merchants [5] Group 3: Consumer Behavior - Consumers are increasingly acting as "calculators," seeking maximum value while also being influenced by emotional factors such as brand stories and sustainability [7] - The rise of niche brands that resonate emotionally with consumers indicates a shift in purchasing motivations [7] Group 4: Market Growth Drivers - The "trade-in" policy is being leveraged by platforms to stimulate demand for durable goods, with significant subsidies being offered [8][10] - Lower-tier markets are showing strong purchasing power, prompting brands to refine their strategies to cater to these consumers [10] Group 5: Competitive Landscape - The focus of competition is shifting from price wars to enhancing fulfillment experiences and emotional connections with consumers [11] - Companies must develop sharper consumer insights and more flexible supply chains to thrive in this evolving market [11]

Group 1: Consumer Policies and Market Impact - Since 2025, various regions have intensified consumption-boosting policies, particularly the "trade-in" program, which has optimized processes and improved services, leading to a noticeable increase in product consumption [1] - In Nanjing, the "trade-in" initiative is complemented by a "10-year warranty" service, alleviating consumer concerns about purchasing home appliances [3][5] - As of January 28, 2025, Nanjing's home decoration and furniture trade-in subsidy program has generated over 200,000 transactions [5] Group 2: Regional Developments in Consumer Electronics - In Guangxi, the implementation of the "trade-in" policy has resulted in rising sales of home appliances, with a high demand for installation services [5][6] - By May 31, 2025, Guangxi had conducted over 3,000 "trade-in" themed activities, with more than 3.9 million consumers participating and enjoying subsidies totaling 3.4 billion yuan [6] Group 3: Agricultural Machinery Updates - Since 2025, there has been a significant push for large-scale equipment updates, including the popular policy for scrapping old agricultural machinery [7] - In Dezhou, Shandong, a dual subsidy policy for agricultural machinery purchases has been introduced, enhancing operational conditions and efficiency for farmers [9] - A new combine harvester, originally priced at 220,000 yuan, can be purchased for 310,000 yuan after subsidies, saving 130,000 yuan [11] - The local government has issued over 12.9 million yuan in agricultural machinery purchase subsidies since 2025, facilitating a smooth application process for farmers [14]

Core Insights - The "trade-in" policy is becoming a strong engine for growth in the medical device industry, with significant market activity expected in 2025 and beyond [1] - The number of public procurement announcements for medical devices has surged, with a year-on-year increase of nearly 60% as of May 31, 2023 [2] - The total order volume for medical equipment updates is projected to reach hundreds of billions, potentially exceeding one trillion yuan [4] Industry Trends - As of May 31, 2023, there were 3,832 public procurement announcements, a 58.87% increase from the previous year, with central announcements increasing by 5.43 times [2] - Key procurement projects include a CT and MR equipment procurement budget of 897 million yuan in Fujian and a 260 million yuan project at Wuhan University [2] - Significant growth in market size for various medical device segments was reported, with increases of 106% for imaging devices, 83% for radiation therapy devices, and 80% for surgical devices from January to April 2023 [4] Company Responses - Medical device companies are actively participating in procurement projects, with some reporting over 60% success rates in bids [5] - Companies like Mindray Medical and others are emphasizing their product advantages and have already won multiple large-scale projects [5] - Analysts expect a noticeable increase in industry revenue in the third quarter of 2023 as procurement orders are fulfilled [5]

石家庄湾里庙步行街网红店排起长队。河北经济日报记者 烟成群 摄 丰富业态场景提升消费体验。唐山市利用南湖景区、唐山宴等资源，开展"夜食、夜购、 夜游、夜宿、夜行、夜娱"多形式的系列活动。石家庄市举办"中 国体育彩票杯""龙舟大赛""端午织韵·1953"等系列活动， 促进商旅文体相融合。保定市结合 DELIGHT 电子音乐节等文体 活动，围绕"嗨购""嗨吃"" 嗨 游""嗨演""嗨玩"五大主题，点燃消费市场。邢台市推出邢台大峡谷、崆山白云洞等特色旅游线路，文旅接待人次达180万， 同比增长15.6%。邯郸市推出 邯郸道、邯宝坊等新品牌新IP，构建包含五感体验的消费新生态。辛集市以京东云仓为例，通过线上线下结合的方式，集结品牌推新品，设置幸运抽奖、 儿童手工DIY等活动。 融入特色文化激发消费活力。衡水市推出"年中庆典—半年半价 ·端午盛宴"为主题的系列活动。沧州市南川老街景区百狮园码头举办"北派端午斗龙舟"活 动，展示北狮、舞落子、杂技等非遗民俗表演。秦皇岛市通过包粽子比赛、端午文化展览和民俗表演等活动，促进端午相关商品销售。 来 源：长城新媒体 长城网·冀云客户端讯（河北经济日报记者 烟成群 ）端午假期，河北 ...

Core Insights - The "old-for-new" policy in Shenzhen has significantly boosted sales during the Dragon Boat Festival, with 302,000 units sold and a revenue of 690 million yuan, marking a 40% increase in daily sales compared to the period before the holiday [1] - As of June 2, 2023, the total sales driven by the "old-for-new" initiative in Shenzhen reached 32.49 billion yuan, covering automobiles, home appliances, and digital products [2] Group 1: Sales Performance - During the Dragon Boat Festival, the top-selling products included over 58,000 smartphones, over 21,000 smartwatches, approximately 13,000 smart sports devices, about 12,500 tablets, and around 10,000 cooking machines [1] - Sales of projectors and personal health monitoring products saw significant increases, with revenue growth of 60% and 450% respectively compared to daily sales before the holiday [1] Group 2: Automotive Sector - The Guangdong-Hong Kong-Macao Greater Bay Area Auto Show, held from May 31 to June 8, coincided with the holiday, leading to increased foot traffic and sales, with an expected 450,000 attendees and projected sales of 4 billion yuan, representing a 27.84% and 8.1% increase compared to the previous event [1] Group 3: Policy Impact - Shenzhen has intensified the implementation of the "old-for-new" policy across various consumer goods, including home appliances, automobiles, and digital products, aiming to enhance consumption quality and stimulate market potential [2] - As of June 2, 2023, the "old-for-new" policy has facilitated the sale of 60,400 vehicles, generating 15 billion yuan in sales, while home appliances and digital products accounted for 9.486 million units sold and 17.49 billion yuan in revenue [2]

Core Insights - The "trade-in" policy is undergoing a comprehensive upgrade in 2025, driven by coordinated fiscal policies and local support measures, resulting in significant consumer subsidies and sales growth [1][2] - The ultimate goal of the "trade-in" initiative is to stimulate consumer demand, which in turn promotes technological innovation and supply optimization in the industry, creating a dual-driven model of "consumption leading to industrial upgrade" [1][4] Group 1: Policy Implementation - The collaboration between central fiscal leverage and local initiatives is a key highlight of the policy upgrade, effectively activating diverse local funding mechanisms [2][3] - Various regions have introduced innovative measures based on local industrial characteristics and consumer needs, such as targeted subsidies for smart appliances and expanding coverage to include smartphones and products for the elderly [2][3] - The "central coordination + local innovation" approach has significantly enhanced policy effectiveness, with millions of subsidy applications processed and a focus on long-term market dynamics rather than short-term boosts [3] Group 2: Market Impact - The "trade-in" policy has become a core engine for driving market circulation, shifting consumer demand from mere functionality to quality experience, and accelerating technological iteration and supply innovation in the industry [3][4] - The policy has led to substantial sales figures, including 77.618 million home appliances and 56.629 million digital products sold, indicating a strong market response [3] - The initiative is facilitating a deep transformation in consumer concepts and lifestyles towards greener, smarter, and more human-centered products, aligning with future trends [4] Group 3: Economic Transformation - The strategic guidance of fiscal funds is fostering a positive interaction between industrial and consumer upgrades, encouraging the elimination of outdated products while promoting high-value, high-tech manufacturing [4][5] - The strong market pull from consumer spending on smart and energy-efficient products is providing direct and robust driving force for industrial transformation [4][5] - The synergy between policy innovation and market vitality is positioning the "trade-in" initiative as a strategic lever for high-quality development, creating a dynamic balance between demand and supply [5]