Industry Overview - In November, the electronic sector remains the most favored industry among brokerages, accounting for 15.1% of the recommended stocks [2][3] - Coal is the industry with the most significant increase in allocation, with a rise of 2.2% compared to October [3] - The media and machinery sectors have seen a notable decrease in weight, with reductions of 2.0% and 1.7% respectively [4] Stock Recommendations - Kingsoft Office (688111) is the most recommended stock, appearing in the top recommendations six times [6][7] - Other highly recommended stocks include Zijin Mining (601899), Zhongji Xuchuang (300308), and Top Group (601689), each recommended five times [6][7] - New entries in the recommended stocks include Haier Smart Home (600690) and Ping An Insurance (601318), both recommended four times [9] Sector-Specific Insights - The top recommended stocks in the electronic sector include Industrial Fulian, recommended five times [11] - In the power equipment sector, both Ningde Times and Tianci Materials were recommended three times [11] - The automotive sector's leading stock is Top Group, also recommended five times [10][11] Market Trends - The overall market trend indicates a shift towards value style, as evidenced by the declining market capitalization and valuation levels of the recommended stocks [4] - The increase in coal, home appliances, and banking sectors suggests a potential pivot in investment strategies [3][4]

Core Viewpoint - The article highlights a stabilization and rebound in the ROE (Return on Equity) of A-shares, indicating a recovery in overall profitability across the market, with significant improvements in growth sectors such as TMT and the ChiNext board [3][4]. Group 1: Overall Market Performance - The ROE of the entire A-share market increased from 6.74% in Q3 2022 to 6.80% in Q3 2023, marking a year-on-year growth of 0.75% and breaking a downward trend [5][6]. - The growth sectors, particularly the ChiNext and technology-focused indices, showed substantial improvements, with the ROE of the ChiNext index rising by 12.30% year-on-year [7][8]. Group 2: Sector Analysis - The TMT (Technology, Media, and Telecommunications) sector maintained high growth, with the ROE of technology leaders increasing from 8.04% to 10.26%, a growth of 27.59% [16]. - The consumer sector exhibited mixed results, with the ROE of the consumer index declining from 17.18% to 16.51%, while the household appliances sector showed a slight increase from 12.66% to 12.90% [17][18]. - The pharmaceutical sector showed signs of stabilization, with the overall ROE rising from 8.43% to 8.52%, while the renewable energy sector began to show improvement, with the ROE of the photovoltaic industry increasing from 1.50% to 1.75% [19][20]. Group 3: Profitability Drivers - The rebound in A-share ROE is primarily driven by improvements in net profit margins and stabilization in asset turnover rates, indicating enhanced operational efficiency rather than increased leverage [22][23]. - The sectors with the most significant revenue improvements include TMT, financial services, and midstream manufacturing, while the consumer sector remains under pressure [24].

Core Viewpoint - The market experienced fluctuations today, with popular technology concepts like CPO and semiconductor equipment retreating, while value stocks rose against the trend, as evidenced by a 0.4% increase in the Guozheng Value 100 Index [1] Group 1: Market Trends - The Guozheng Value 100 Index is showing a positive trend, indicating a potential shift towards value investing as growth and value styles have reached historical divergence [1] - The current market environment suggests that value stocks may have greater upside potential due to their previous underperformance and the prevailing demand for lower-risk investments [1] Group 2: Index Characteristics - The Guozheng Value 100 Index employs a three-tier screening system focusing on low price-to-earnings ratios, high dividend yields, and high free cash flow rates to identify financially healthy companies with reasonable valuations [1] - The index currently has a dividend yield of approximately 5% and a rolling price-to-earnings ratio of 9.2 times, which is at the 6.9% percentile since the index's base date at the end of 2012 [1] Group 3: Sector Distribution - The current sector distribution of the Guozheng Value 100 Index is balanced, with the top three sectors being home appliances, banking, and non-ferrous metals [1]

Core Viewpoint - The article discusses the resurgence of active equity funds, highlighting their recent outperformance compared to the CSI 300 index, particularly in a structural market environment that favors growth opportunities [1][2]. Group 1: Active Equity Fund Performance - Over the past three years, active equity funds have underperformed the CSI 300 index, leading to skepticism about their ability to generate excess returns [1]. - As of October 24, the Wind偏股基金指数 recorded a return of 32.39%, significantly outperforming the CSI 300 index's 14.68% during the same period [1]. - Historically, active equity funds have outperformed the CSI 300 index during growth structural opportunities in years such as 2010, 2015, and 2019 to 2021 [1]. Group 2: Recommended Balanced Funds - The article identifies three balanced fund products from Southern Fund that are suitable for investors lacking specific sector or style selection capabilities: 1. 南方智信混合 (managed by Zhang Yanmin) 2. 南方智弘混合 (managed by Jin Lanfeng) 3. 南方港股通优势企业 (managed by Luo Shuai) [2][3]. - These funds are characterized by their ability to control drawdowns in bear markets while capturing gains in bull markets, making them ideal for investors who prefer a hands-off approach [2]. Group 3: Fund Manager Insights - Zhang Yanmin's 南方智信混合 achieved a return of 54.80%, outperforming its benchmark by 30.87% since inception [5]. - Jin Lanfeng's 南方智弘混合 recorded a return of 48.25%, surpassing its benchmark by 20.29% within its first year [12]. - Luo Shuai's 南方港股通优势企业 achieved a total return of 28.87%, outperforming its benchmark by 18 percentage points over more than four years [20]. Group 4: Investment Strategies - Zhang Yanmin emphasizes a diversified investment approach, focusing on both the probability of success and the price at which assets are acquired, adapting to market style rotations [7][9]. - Jin Lanfeng employs a cyclical investment framework, making tactical adjustments based on market conditions and focusing on less crowded investment opportunities [15][16]. - Luo Shuai's strategy involves maintaining a balanced portfolio of high-quality companies, adapting to market conditions while seeking growth opportunities in the Hong Kong market [22][23]. Group 5: Conclusion on Balanced Products - The three identified balanced funds are suitable for ordinary investors seeking stable returns, with a focus on minimizing maximum drawdowns and enhancing adaptability in various market environments [27].

Report Industry Investment Rating No relevant content provided. Core Views of the Report - Value style outperforms growth style and the overall market in the long - run, with better risk - return ratios [2][6]. - Value - style funds are scarce in the market, and fund managers need strong conviction and support to adhere to this style [14][16]. - Lan Xiaokang of China Europe Fund is a value - investment adherent. His China Europe Dividend Optimal has achieved excellent performance [2][17]. Summary by Directory 1. Value Style Fund Product Investment Value Overview 1.1 Value Style Performance: Better Risk - Return Ratio in the Long Run - Since 2012 (as of 2025/10/24), the Guozheng Value R has significantly outperformed the Guozheng Growth R and the Wind All - A, indicating the long - term superiority of the value style [6]. - The investment return of the value style is more stable, with a higher win - rate. From 2017 to 2025/10/24, the one - year rolling return win - rate of Guozheng Value R is 70.77%, compared to 56.50% for Guozheng Growth R [8]. - In terms of risk indicators such as yield, volatility, and maximum drawdown, the Guozheng Value R outperforms the Guozheng Growth R in different time periods, showing a better risk - return ratio [11]. 1.2 Scarcity of Value - Style Fund Products in the Market - Only 11 out of over 1700 active equity fund managers manage value - style funds that meet the defined criteria, and 4 of them are financial real - estate funds [14]. - Reasons for the scarcity include fund managers' subjective wavering, scale pressure, and inappropriate fund company assessment systems [15][16]. 2. Lan Xiaokang of China Europe Fund - A Value - Investment Adherent Seeking Maximum Investment Efficiency in Certain Returns 2.1 Background: Years of Research and Management Experience, Historical Performance Outperforming the CSI 300 - Lan Xiaokang has about 8.5 years of investment management experience, currently manages 4 funds with a total scale of 24.809 billion yuan [17]. - His fund manager index has outperformed the CSI 300, especially since 2021 [17]. 2.2 Investment Framework: Seeking Maximum Investment Efficiency under the Premise of Safety - Lan Xiaokang builds a systematic investment framework through top - down and bottom - up research, focusing on macro trends and individual stock fundamentals [19]. - He uses multiple investment strategies, including long - term, dividend, stable - return, hedging, and trend - reversal strategies, to seek differentiated excess returns [19]. 2.3 Representative Product: China Europe Dividend Optimal - Lan Xiaokang's China Europe Dividend Optimal has achieved a return of 169.82% since he took over in 2018/4/20, significantly outperforming its benchmark [20][22]. 3. Analysis of the Characteristics of China Europe Dividend Optimal 3.1 Performance: Leading in Return and Risk - Return Ratio - Since Lan Xiaokang took over, as of 2025/10/24, the cumulative return of China Europe Dividend Optimal is 169.82%, significantly outperforming the benchmark [24]. - From 2019 to 2025/10/24, the quarterly win - rate of positive returns is 74.1%. The quarterly win - rate of relative returns compared to the benchmark and Guozheng Value R is 77.8% and 74.1% respectively, with average quarterly excess returns of 3.82% and 2.58% [25]. - Since 2019, the annualized return of China Europe Dividend Optimal is 19.88%, ranking in the top 12% among similar products. The annualized volatility is 19.98%, ranking in the bottom 25%. The annualized Sharpe ratio and Calmar ratio are in the top 5% and 1.5% respectively [30]. 3.2 Industry Distribution: Timely Rotation with Good Results - The fund mainly invests in value - style sectors such as household appliances, non - bank finance, and real estate, and rotates among these sectors in a timely manner [34]. - Industry rotation operations have brought significant excess returns. For example, in 2024, the increase in bank holdings and the reduction in coal holdings contributed positive excess returns [38][42]. 3.3 Holding Characteristics: Moderate Concentration of Individual Stocks and Timely Allocation of Hong Kong Stocks - The top ten holdings of the fund account for 40% - 60%, and the top thirty holdings account for over 90%, with a moderate concentration of individual stocks [43]. - The fund has a low turnover rate, with a short - term increase in 2020 - 2021, presumably due to adjustments in response to market changes [43]. - The fund mainly focuses on large - and medium - cap stocks, and has gradually increased its allocation to Hong Kong stocks since 2023, with nearly 50% of stock positions in Hong Kong stocks as of the 2025 semi - annual report [45]. 3.4 Return Breakdown: Significant Contribution from Stock Selection - Stock selection is the main source of excess returns for the fund, and trading also contributes a small amount of excess returns [48]. - The absolute return of the fund comes from multiple sectors, with significant contributions from the cyclical sector. In terms of relative returns, the cyclical and financial real - estate sectors have made significant contributions [53]. 3.5 Product Feature Summary - The fund focuses on value - style sectors and achieves good results through timely industry rotation [58]. - It has an outstanding risk - return ratio, with leading returns and low volatility [58]. - Stock selection is the main source of excess returns, mainly from cyclical and financial real - estate innovation sectors [58]. 4. Fund Manager's Ability Circle: Outstanding Hidden Trading and Industry Rotation Abilities - Lan Xiaokang has a moderately diversified industry allocation and a moderately concentrated individual - stock allocation [59]. - His stock - selection ability is strong, ranking in the top 20% among similar products since 2020 [59]. - His hidden trading ability is excellent, ranking in the top 10% among similar products [59]. - His industry rotation ability is stable, ranking in the top 15% among similar products [60]. - His ability to invest in both upward and downward markets is good, being able to seize opportunities in upward markets and defend well in downward markets [60].

Group 1 - The report introduces a quantitative model solution for addressing the value-growth style switching issue, combining investment expectations based on odds and win rates [1][8] - The overall market growth style portfolio achieved a return of 4.58%, while the value style portfolio returned 2.24% in the last week [1][8] Group 2 - The estimated odds for the growth style is 1.08, while for the value style it is 1.12, indicating a negative correlation between relative valuation levels and expected odds [2][14] - The current win rate for the growth style is 63.24%, compared to 36.76% for the value style, based on seven win rate indicators [3][19] Group 3 - The latest investment expectation for the growth style is calculated to be 0.32, while the value style has an investment expectation of -0.22, leading to a recommendation for the growth style [4][21] - Since 2013, the annualized return of the style rotation model based on investment expectations is 27.99%, with a Sharpe ratio of 1.04 [4][22]

Group 1: Market Sentiment Model Insights - The market sentiment score has slightly increased to 2.2 as of October 24, compared to 1.9 the previous week, indicating a partial recovery in market sentiment [9][12]. - The overall market sentiment is showing increased differentiation, with a decline in price-volume consistency, suggesting reduced capital activity and a cautious risk appetite among investors [12][19]. - The total trading volume for the entire A-share market has significantly decreased compared to the previous week, with a peak trading volume of 1,991.617 billion RMB on October 24 [19][22]. Group 2: Industry Trends and Insights - As of October 24, 2025, industries such as banking, oil and petrochemicals, transportation, public utilities, and construction decoration have shown an upward trend in short-term scores, with coal being the strongest at a score of 93.22 [40][41]. - The model indicates that the banking sector's short-term score has rapidly increased, maintaining a favorable signal for both value and large-cap styles [40][41]. - The analysis of industry crowding shows that sectors like electronics and power equipment have high returns but also high capital crowding, which may pose volatility risks [43][44]. Group 3: Technical Indicators and Market Dynamics - The Relative Strength Index (RSI) has shown a decline, indicating weak upward momentum and reduced buying interest in the market [32][35]. - The main capital inflow has improved, suggesting an increase in institutional buying power and a gradual warming of market sentiment [35][37]. - The model maintains a signal indicating that large-cap and value styles are currently dominant, although the strength of this signal may weaken in the future [52][53].

Core Viewpoint - The article discusses the current market trends, focusing on the performance of various stock styles and the recovery of corporate earnings in A-shares and Hong Kong stocks, indicating potential investment opportunities. Group 1: Market Performance - The market experienced slight declines, with the index closing at 4.2 stars [1] - Both large, medium, and small-cap stocks showed minor declines [2] - Value styles remained relatively resilient during market fluctuations [3] - The Shanghai Dividend and CSI 300 Value indices have returned from undervaluation to normal valuation levels [4] - Other indices like the Hong Kong-Shenzhen Dividend and Free Cash Flow are also approaching normal valuation [5] Group 2: Earnings Recovery - The recent quarterly reports indicate a recovery in corporate earnings after a low-performing year [16][17] - Three tiers of earnings recovery are identified: 1. Technology and pharmaceutical stocks in Hong Kong showed significant year-on-year earnings growth, exceeding 100% for some [18][19] 2. Stable earnings growth was observed in consumer sectors and value styles, with A-share pharmaceuticals also recovering [22][24] 3. Some sectors, like A-share consumer and real estate, remain in a low-performing phase with no signs of recovery yet [26][28][29] - The overall economic low point is expected to occur in 2024, followed by a gradual recovery [30] Group 3: Investment Tools and Features - A new feature in the "Today Stars" app allows users to view core data and real-time valuations of mainstream ETFs [31] - The app supports tracking ETF premium/discount rates and historical valuation data [33] - Users are encouraged to provide feedback on additional data or features they would like to see [32]

Group 1 - The core viewpoint of the news indicates that the A-share market is expected to enter a more sustainable upward trend, with major indices projected to rise by approximately 30% by the end of 2027, driven by corporate earnings growth and valuation recovery [1] - Goldman Sachs' research team suggests that the current market leverage levels are generally controllable, with no signs of overheating, and despite recent market pullbacks, the medium-term outlook remains positive [1] - UBS Securities highlights a shift in market style since October, with a consensus likely to form around the technology growth sector, supported by easing risk sentiment and the verification of third-quarter earnings [1] Group 2 - The micro-cap stock index has shown impressive performance, with a year-to-date increase of nearly 64% as of October 21, 2023, reaching a historical high, which may be attributed to its "reverse stock selection" characteristic [2]

Group 1 - UBS maintains an overweight rating on China within emerging markets, citing faster revenue and earnings growth compared to India, and improving capital return rates in the MSCI China index [1] - A-shares have experienced a style shift from "growth" to "value dividend" since October, influenced by US-China trade tensions and profit-taking in the tech sector, but the medium-term outlook for A-shares remains positive [1][3] - Foreign investors are closely monitoring China's 14th Five-Year Plan, particularly aspects related to "anti-involution," consumption promotion, high-quality growth, and the development of new productive forces [1][11] Group 2 - A-shares are showing structural differentiation, with major indices fluctuating, but foreign investors believe there is still high allocation value in the market despite recent tariff impacts [3][4] - The market's sensitivity to US-China trade tensions has decreased, and there is an expectation of policy measures to stabilize the market if significant volatility occurs [4] - Foreign investors favor industry leaders, with significant holdings in companies like Kweichow Moutai, Ping An, and Wuliangye, indicating a preference for stable, high-quality stocks [6][7] Group 3 - Foreign investors are increasing their positions in leading stocks, with notable increases in holdings for companies like Siyi Electric and Hai Da Group during the third quarter [8][6] - UBS expresses a preference for A-shares over H-shares due to their defensive nature against geopolitical tensions, maintaining a focus on growth styles as the main investment theme [10] - The upcoming policies in the 14th Five-Year Plan are expected to create potential opportunities in "anti-involution" and service consumption, which could drive cyclical improvements in various industries [12]