Core Viewpoint - China State Construction's Q3 net profit attributable to shareholders decreased by 24.1% due to the ongoing deep adjustment in the real estate market and a slowdown in infrastructure investment growth [1] Group 1: Financial Performance - The company's Q3 net profit attributable to shareholders fell by 24.1% [1] - Current dividend yield stands at 5%, indicating a valuation bottom [1] - The dividend payout ratio is 24.3% [1] Group 2: Market Position and Valuation - China State Construction is one of the largest investment and construction groups globally and is included in major indices such as CSI 50, SSE 50, FTSE China A50, and MSCI China A50 Connect Index [1] - The controlling shareholder increased holdings by 620 million yuan, accounting for 0.27% of total share capital [1] - The company maintains a long-term stable dividend policy [1] Group 3: Future Outlook - The company is given a target price of 7.42 yuan based on a 2025 PE of 6.5 times [1] - The current PE of 4.7 times is at the 45th percentile over the past decade, while the PB is 0.47 times, at the 1st percentile over the same period [1] - The company adheres to a market-oriented operational mechanism, gradually enhancing its ability to navigate market rules [1]

Investment Rating - The report maintains a rating of "Buy" for the company [3][8]. Core Insights - The company's net profit attributable to shareholders decreased by 24.1% in Q3, impacted by the ongoing adjustment in the real estate market and a slowdown in infrastructure investment growth. The current dividend yield is at 5%, indicating that the company is undervalued as a leading market player in construction [2][4]. Financial Performance Summary - For the first three quarters of 2025, the company's revenue reached 1.56 trillion yuan, a year-on-year decline of 4.2%. The net profit attributable to shareholders was 38.18 billion yuan, down 3.8% year-on-year. The gross profit margin stood at 8.72%, with a net profit margin of 2.45% [4][5]. - The company reported a decrease in operating cash flow, with a net outflow of 69.48 billion yuan for the first three quarters of 2025, although this was an improvement compared to the 77.01 billion yuan outflow in the same period of 2024 [5][6]. Earnings Forecast - The earnings per share (EPS) estimates for 2025-2027 have been revised down to 1.15, 1.20, and 1.25 yuan respectively, reflecting a growth of 2.8%, 4.6%, and 4.2% [3][6]. Valuation Metrics - The company is currently valued at a price-to-earnings (PE) ratio of 6.5 times for 2025, with a target price set at 7.42 yuan. The price-to-book (PB) ratio is at 0.47 times, indicating a significant discount compared to historical averages [3][5][6]. Market Position - As one of the largest investment and construction groups globally, the company is included in major indices such as the CSI 50 and MSCI China A50. The controlling shareholder has increased their stake by 0.27% [5][6].

Group 1 - The article discusses various dividend yields of different indices, highlighting the performance of specific ETFs and their respective dividend rates [1][2][3] - The S&P Hong Kong Stock Connect Low Volatility Dividend ETF has a dividend yield of 5.54%, while the S&P China A-Share Dividend Opportunity Index shows a yield of 4.92% [1] - The China Securities A500 Low Volatility Dividend Index has a dividend yield of 4.18%, indicating a competitive return compared to other indices [1][3] Group 2 - The Shanghai Composite 180 Value Index has a dividend yield of 4.15%, and the CSI 800 Low Volatility Dividend Index yields 4.14% [3] - The 5-year Loan Prime Rate (LPR) is at 3.50%, while the 1-year LPR is at 3.00%, reflecting the current interest rate environment [3] - The article also mentions various bond yields, including the 10-year government bond yield at 1.80% and the AAA-rated corporate bond yield at 1.96% [3]

Group 1 - Agricultural Bank of China (601288) announced a dividend of RMB 0.1195 per share, with the ex-dividend date set for December 5, 2025, and the payment date on January 26, 2026 [1] - China Communications Construction Company will distribute a dividend of no less than HKD 0.12903 per share, with the ex-dividend date on December 1, 2025, and the payment date on January 9, 2026 [1] - The CSI Hong Kong Stock Connect Central State-Owned Enterprises Dividend Index (931233.CSI) includes 50 listed companies with stable dividend levels and high dividend yields, with a one-year dividend yield of 5.54% as of November 10, which is higher than the 10-year government bond yield of 3.72% [1] Group 2 - The Hong Kong Central State-Owned Enterprises Dividend ETF (513910) is the largest investment vehicle tracking the CSI Hong Kong Stock Connect Central State-Owned Enterprises Dividend Index [1]

Core Viewpoint - The Chinese liquor industry is experiencing a significant downturn, with a 18% year-on-year decline in quarterly revenue, marking the worst performance since the 2012-2015 adjustment period, leading to a "de-inventory" phase across the sector [1][2]. Industry Performance - In Q3 2025, the liquor industry's revenue, net profit attributable to shareholders, and cash collection were 78.7 billion yuan, 28 billion yuan, and 83.9 billion yuan, respectively, reflecting declines of 18.4%, 22.2%, and 26.7% year-on-year [2][3]. - The high dividend yield of the liquor sector, which has reached 3.85% as of November 4, 2025, is seen as a stabilizing factor during this challenging period [3][5]. Market Sentiment - Market sentiment is fluctuating between "worry" and "expectation," with both corporate valuations and institutional holdings at historical lows [2][7]. - The current market environment is characterized by a significant withdrawal of capital, with public funds reducing their holdings in the liquor sector [1][11]. Dividend Insights - Over the past decade, the total cash dividends in the liquor industry have increased from 15.81 billion yuan in 2015 to 119.03 billion yuan in 2024 [4]. - Eleven liquor companies have a dividend yield exceeding 3%, with Yanghe Co. leading at 6.59% [5][6]. Valuation and Investment Outlook - The current price-to-earnings (P/E) ratio of the liquor index is 19.52, significantly lower than the 10-year average of 31.1, indicating a high safety margin for valuations [8][10]. - Analysts suggest that the liquor sector may no longer be viewed as a cyclical growth stock, with future price appreciation expected to come from stable earnings growth and dividends [7][10]. Fund Holdings and Strategy - As of Q3 2025, active equity funds have shown a trend of "overall reduction and structural differentiation" in their liquor stock holdings, with high-end liquor companies facing sell-offs while mid-tier brands gain traction [11][14]. - Notably, funds have increased their positions in companies like Luzhou Laojiao and Shanxi Fenjiu, while reducing holdings in leading brands like Kweichow Moutai and Wuliangye [14][17].

Core Viewpoint - China Hongqiao (01378) has seen its stock price rise over 6%, reaching a new historical high of 31.44 HKD, driven by positive market sentiment and strong earnings forecasts in the aluminum industry [1] Company Summary - Citigroup has upgraded its earnings forecasts for China Hongqiao for the years 2025, 2026, and 2027 by +2%, +5%, and +7% respectively, projecting profits of 24.4 billion, 27.9 billion, and 30.3 billion RMB [1] - The company is focusing on maintaining a high dividend payout ratio and share buybacks, with a projected dividend yield of 6.7% for 2026, indicating strong shareholder returns [1] Industry Summary - The aluminum industry remains one of Citigroup's top picks, with expectations of tight supply due to China's production capacity limits (annual capacity of 45.2 million tons) and no explosive capacity increases in Indonesia, which will help maintain high aluminum margins [1] - Citigroup anticipates that China Hongqiao will continue to benefit from sustained high aluminum margins, leading to a revaluation of the stock, with a target price increase from 25.2 HKD to 36 HKD [1]

Group 1 - Funds are suitable investment products for ordinary people [2] - New investors should consider what type of funds are appropriate for them [2] - There is a free course available to help new investors understand fund investment from scratch [2] Group 2 - Dividend indices are a common type of strategy index [5] - Strategy indices are based on specific investment strategies and cover a wide range of industries [6] - There are four main types of indices: broad-based indices, strategy indices, industry indices, and thematic indices [6] Group 3 - The core strategy of dividend indices is to select stocks with high dividend yields [8] - Dividend yield is calculated by dividing the total cash dividends by the company's market capitalization [8] - For example, a company with a market cap of 10 billion and annual dividends of 500 million has a dividend yield of 5% [8]

Core Viewpoint - The active funds have continued to reduce their holdings in the liquor sector during the third quarter, influenced by the underperformance of liquor stocks compared to broader indices, leading to a passive decline in their proportion within public fund holdings [2][4]. Group 1: Fund Holdings and Changes - In the third quarter, the number of liquor stocks held by active funds slightly increased from 325 million shares to 328 million shares, indicating no large-scale sell-off [4][6]. - The total number of liquor stocks held by active funds decreased significantly from 501 million shares to 325 million shares in the second quarter, a reduction of 35% [4]. - The total market value of liquor stocks held by active funds in the third quarter was approximately 6.90 billion yuan, with a slight increase in holdings compared to the previous quarter [7]. Group 2: Performance of Liquor Stocks - The China Securities Liquor Index rose by 7.75% in the third quarter, underperforming the CSI 300 Index by 10 percentage points and the "Equity Mixed Fund Index" by 18 percentage points [2]. - The proportion of liquor stocks in the public fund holdings decreased due to their underperformance relative to other sectors [2]. Group 3: Fund Managers' Strategies - Fund manager He Shuai significantly increased his positions in Kweichow Moutai and Luzhou Laojiao, which became part of the top ten holdings in his fund, accounting for a total of 11.4% [9]. - Fund manager Li Xiaoxing also increased his holdings in Luzhou Laojiao and Wuliangye, citing the attractive dividend yield and potential for recovery in consumer stocks [11]. - Fund manager Nie Shilin increased his holdings in Kweichow Moutai by 77% and in Shanxi Fenjiu by 96%, indicating a strong bullish stance on high-end liquor [13]. Group 4: Market Sentiment and Future Outlook - Some fund managers expressed a cautious outlook, suggesting that the domestic consumption and real estate sectors remain under pressure, with a focus on observing policy changes affecting consumer demand [14]. - Fund managers like Zhang Feng have shifted their focus to higher dividend yield sectors, indicating a strategic pivot towards food and beverage stocks, including liquor, due to their potential for recovery [19]. Group 5: Redemption and Fund Flows - The consumer-focused active funds experienced significant redemptions, with total shares dropping from 74.5 billion to 65.5 billion, reflecting a net redemption of 12% [25]. - In contrast, the total shares of ordinary stock and mixed funds saw only a 5% net redemption, highlighting the challenges faced by consumer-focused funds [26].

Group 1 - The latest dividend yield for the S&P Dividend ETF is 5.18% as of November 4, 2025 [1] - The Shanghai Composite Index has shown a year-to-date performance of -1.40% with an annualized volatility of 19.64% [1] - The Hong Kong Stock Connect Dividend ETF has a current dividend yield of 5.72% [1] Group 2 - The S&P Hong Kong Stock Connect Low Volatility Dividend Index has a year-to-date performance of 0.42% and an annualized volatility of 27.32% [2] - The A500 Low Volatility Dividend ETF has shown a year-to-date performance of 4.73% with an annualized volatility of 9.80% [2] - The CSI 800 Low Volatility Dividend Index has a year-to-date performance of 5.19% and an annualized volatility of 10107% [2] Group 3 - The MACD golden cross signal has formed, indicating a positive trend for certain stocks [4]

Market Performance - The Hang Seng Index and the Hang Seng China Enterprises Index fell by 3.5% and 4.0% respectively in October, while the Hang Seng Composite Index dropped by 3.9% [1] - The Hang Seng Technology Index, which tracks leading technology companies in Hong Kong, experienced a significant decline of 8.6% [1] - The Hang Seng Shanghai-Shenzhen-Hong Kong 500 Index recorded a 1.7% decrease, and the Hang Seng A-Share 300 Index saw a slight decline of 0.1% [1] Sector Performance - The energy sector showed strong performance in October with a gain of 6.6%, while the healthcare sector performed poorly, declining by 11.0% [3] ESG Indices - The Hang Seng Sustainable Development Enterprises Index in Hong Kong had a relatively better performance with a decline of only 0.6%, whereas the Hang Seng A-Share Sustainable Development Enterprises Benchmark Index in mainland China showed a positive performance with an increase of 0.8% [5] Thematic Indices - The Hang Seng Hong Kong Stock Connect Mainland Banks Index performed well in Hong Kong with a gain of 4.5%, while the Hang Seng A-Share Power Grid Equipment Index also performed well in mainland China with an increase of 3.2% [7] Factor Indices - The Hang Seng Large and Mid-Cap Dividend Yield All-Select Index fell by 2.8%, but it outperformed other factor indices in the Hong Kong market [10] - The Hang Seng A-Share Value All-Select Index increased by 0.3%, and the Hang Seng Shanghai-Shenzhen-Hong Kong Dividend Yield All-Select Index decreased by 0.7%, both showing better performance in their respective markets [10] - The Hang Seng Shanghai-Shenzhen-Hong Kong Greater Bay Area Composite Index declined by 1.5% [10] Asset Management - As of October 31, the total assets under management for passive tracking products of the Hang Seng Index series amounted to approximately $114.7 billion, reflecting a decrease of 0.9% [10] - The assets under management for exchange-traded products linked to the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng Technology Index were approximately $24.4 billion (-10.5%), $6.8 billion (-0.4%), and $43.1 billion (+3.5%) respectively [10]