Core Viewpoint - JDI is undergoing significant strategic adjustments to address financial pressures and competitive challenges in the display industry, including the sale of equipment from its Mobara factory and a shift in focus towards high-growth semiconductor packaging and sensor businesses [1][4]. Group 1: Equipment Sale and Factory Closure - JDI plans to sell equipment from its Mobara factory, with some of it being taken over by Chinese company Huike [1] - The Mobara factory, which primarily produced panels for Apple Watch, is set to close by March 2026, but there are indications that this may be moved up to 2025 [3] - The equipment being sold includes LCD and OLED manufacturing devices, with a significant portion expected to be sold to intermediaries, and Huike is anticipated to acquire some LCD panel manufacturing equipment for a transaction price in the tens of billions of yen [3] Group 2: Financial Performance and Strategic Shift - For the fiscal year from April 1, 2024, to March 31, 2025, JDI reported sales of 188.01 billion yen (approximately 9.27 billion RMB), a year-on-year decline of 21.4%, and a net loss of 78.22 billion yen (approximately 3.87 billion RMB), which is an increase from a loss of 44.31 billion yen in the previous year [4] - To combat long-term losses in the competitive display industry, JDI is implementing a "BEYOND DISPLAY" growth strategy, which includes a comprehensive restructuring of its business to achieve profitability and sustainable growth [4] - JDI is reducing costs in its display business while leveraging its technological capabilities to expand into advanced semiconductor packaging and sensor markets [4]

Macro and Strategy - The bond market experienced a rebound in the first half of 2025, with credit spreads narrowing. The yield changes for 1-year and 10-year government bonds were +27 basis points and -3 basis points respectively, while credit spreads for AAA and AA-rated bonds decreased by 15 basis points and 22 basis points respectively [7][8]. - The government debt net financing reached 25,594 million in week 25 and is projected to be 67,140 million in week 26, with a cumulative total of 7 trillion, exceeding the previous year's total by 3.7 trillion [9][10]. Banking Industry - The stablecoin ecosystem in Hong Kong is analyzed, highlighting its operational mechanisms and the various participants involved, including issuers, asset management companies, and virtual asset trading platforms. The report emphasizes that stablecoins can enhance the efficiency and security of cross-border payments, although they may disrupt traditional banking operations [11][12]. - The launch of the cross-border payment system in China represents a diversification of the RMB cross-border payment framework, exploring various systems and pilot projects for stablecoin issuance [12]. Electric New Energy Industry - The solid-state battery industry is gaining traction due to policy support and technological advancements. The report notes that solid-state batteries offer high energy density and safety but face challenges such as high manufacturing costs and shorter lifespans. Major automotive companies are planning to scale up production by 2030 [13][14]. - The AIDC power equipment sector is highlighted, with high-voltage direct current (HVDC) technology presenting significant market opportunities for domestic manufacturers. The demand for power supply equipment in data centers is expected to grow substantially, with a projected market size of 108.7 billion by 2030 [15][16]. Automotive Industry - The trend towards steer-by-wire technology is accelerating, with the report indicating that the penetration rate for electronic brake systems (EHB) is nearing 60%. The market for steer-by-wire systems is expected to grow significantly, with projections of over 30% penetration by 2030 [17][19]. - The report discusses the transition from mechanical steering to electronic and steer-by-wire systems, with the current market for electronic power steering (EPS) valued at approximately 38 billion. The market is dominated by foreign joint ventures, but domestic companies are rapidly increasing their market share [18][20]. Company Analysis - The report on Tabo (06110.HK) indicates a mid-single-digit decline in total sales for Q1 2026, with online sales channels showing positive growth. The company is managing inventory effectively, with a focus on improving profitability amid a challenging consumer environment [21][23].

Group 1: Gold Market Insights - Central banks' gold net purchases slowed in April, with Poland increasing its holdings by 12 tons, totaling 61 tons for the year, surpassing the European Central Bank's reserves [2] - Czech Republic has increased its gold reserves for 26 consecutive months, while countries like Turkey, Kyrgyzstan, and Kazakhstan continue to accumulate gold, indicating a strong consensus on gold's strategic value in Eastern Europe and Asia [2] - Uzbekistan has sold 26 tons of gold over three months, representing a localized adjustment rather than systemic pressure, with limited impact on market structure [2] - Despite a temporary decline in monthly gold purchase data, geopolitical tensions, divergent monetary policies, and dollar fluctuations are enhancing gold's appeal as a reserve asset [3] Group 2: New Consumption Trends - The traditional consumption valuation model in A-shares is becoming ineffective as the liquor sector weakens, with valuations compressing below 20 times [2] - New consumption stocks like Pop Mart and Mixue Ice City have surged in Hong Kong, reigniting interest in "growth-oriented consumption," opening up valuation space for mid-cap sectors in food retail and beauty [2] - New consumption is categorized into four types: new products (e.g., blind boxes), new business models (e.g., hard discount stores), new technologies (e.g., AI wearables), and new services (e.g., cultural tourism integration), reflecting a shift from brand-driven to quality and emotional value-driven consumer behavior [2] Group 3: Maternal and Infant Industry Dynamics - High-end consumer segments are driving structural growth, with high-end products and services growing by 25% year-on-year in 2023, outperforming the industry average [6] - Online channels account for over 60% of maternal and infant product sales, with live-streaming e-commerce becoming a key battleground, although high return rates (28%) highlight conversion and service challenges [6] - The maternal and infant market in third and fourth-tier cities is growing at 18.7%, surpassing first-tier cities, with significant store expansions in regions like Shaanxi and Sichuan [6] - The preferences of millennial parents (90s/95s) for quality, personalization, and smart products are driving rapid growth in emerging categories like AI maternal and infant devices and wearables [6] Group 4: Aluminum Alloy Market Developments - Aluminum alloy futures and options will officially launch on June 10, 2025, marking a significant financial innovation in the recycled aluminum sector [7] - The operational feasibility for entities is improving with the advancement of delivery products and warehouses, potentially leading to a diversified landscape of hedging, speculation, and arbitrage [7] - Short-term supply remains constrained due to the long lifespan of aluminum products (10-20 years), resulting in high scrap aluminum prices, with a price difference of over 3000 yuan/ton [7] - Long-term policies like "old for new" and the development of a circular economy will release significant amounts of old aluminum resources, but short-term tensions will continue to limit profits and operating rates for small and medium-sized enterprises [7]