Summary of Key Points from Conference Call Records Industry or Company Involved - A-share market and various sectors including technology, consumer, real estate, and automotive industries Core Insights and Arguments 1. **Market Outlook**: The A-share market is currently in a phase of mixed performance, with some sectors showing strength while others decline. The market is expected to enter a new active phase driven by AI technology in April and May, with a focus on domestic demand policies around mid-year [1][2][3] 2. **Profit Improvement by Industry**: As of March 23, approximately 65% of annual reports have been disclosed, indicating positive net profit growth for sectors such as non-banking financials, electronics, transportation, automotive, telecommunications, non-ferrous metals, and banking. Industries that have turned profitable include aquaculture and commerce [4][6] 3. **Investment Trends**: The A-share market remains a stock market, but there is a notable increase in domestic capital allocation to Hong Kong stocks, which may lead to a return of funds to the A-share market due to the stagnation of Hong Kong stocks [3][5] 4. **AI Sector Focus**: The theme of edge AI is highlighted as a significant investment opportunity, with a strong catalyst period expected from April to June. Key events include major product launches and conferences that could drive market interest [14][15][24] 5. **Currency Outlook**: The RMB is expected to fluctuate between 7.20 and 7.35 in the short term, with potential depreciation risks in the medium to long term due to external factors such as US tariffs and a strong dollar [9][10] Other Important but Possibly Overlooked Content 1. **Deep Sea Technology**: The government has included deep-sea technology in its work report, indicating a strategic focus on this emerging sector. Companies involved in deep-sea technology are expected to benefit from upcoming policies and market growth [16][39][40] 2. **Automotive Industry Dynamics**: The automotive sector, particularly companies like BYD, is experiencing fluctuations due to external news and market conditions. However, the overall outlook remains positive with a focus on high-end, intelligent, and electric vehicles [29][30][31] 3. **Copper Supply and Demand**: The copper market is facing supply constraints, with expectations of strong price performance due to reduced production and potential tariff impacts. The outlook suggests that copper prices may return to previous highs [49] 4. **Consumer Sector Trends**: The consumer sector, particularly in retail and hospitality, is expected to rebound as demand recovers. Companies like Yonghui Supermarket are adjusting their store formats to improve profitability [56][59] This summary encapsulates the key insights and trends discussed in the conference call, providing a comprehensive overview of the current market landscape and future expectations across various sectors.

深海科技是近年来中国政府重点发展的领域之一，其发展背景可以追溯到对海 洋经济的重视。自 2012 年十八大以来，国家提出建设海洋强国，并在 2021 年 的"十四五"规划中继续强调拓展海洋经济的发展空间。2024 年的中央工作会 议进一步提到大力发展海洋经济和湾区经济。根据 2024 年的统计公报，海洋经 济生产总值约为 10 万亿元，占 GDP 的 7.8%，其中增量占 GDP 增量的 12%。主要 • 2024 年中国海洋经济生产总值达 10 万亿元，占 GDP 的 7.8%，增量占 GDP 增量的 12%，海洋经济已成为国家经济增长的重要驱动力，预示着相关产 业的巨大发展潜力。 • 今年两会首次将深海科技纳入政府工作报告，深海科技市场空间约为 3 万 亿元，超过低空经济，标志着深海科技上升为国家战略重点，将吸引更多 政策支持和资源投入。 • 深海科技产业链长，覆盖上游原材料、中游装备制造、下游资源开发等多 个环节，商业化潜力和远期前景广阔，为投资者提供了多元化的投资机会。 • 中国交建作为全球最大的港口设计建造企业，积极响应国家战略，超前布 局深海科技原创策源地，市值 1,500 亿元，自由流通市值仅 ...

Group 1 - The three major stock indices in China experienced a slight rebound at the end of the trading session, with the insurance and banking sectors showing notable gains, while the marine economy concept remained active [1] - The Shanghai Composite Index rose by 0.15% to 3370.03 points, the Shenzhen Component increased by 0.07% to 10695.49 points, and the ChiNext Index saw a marginal rise of 0.01% to 2152.55 points, with the North China 50 Index up by 0.94% [1] - The total trading volume across the Shanghai, Shenzhen, and North China markets reached 14,748 billion yuan [1] Group 2 - Star Stone Investment believes that the valuation repair in the stock market may have been largely completed, with a weakening marginal drive from new industries, leading to a decline in enthusiasm for technology stocks [2] - The market is expected to face challenges in forming consensus due to a lack of strong drivers, despite the presence of low-positioned sectors with favorable chip structures [2] - Looking ahead, the domestic economy is at the starting point of a cyclical recovery, with significant investment opportunities arising from the divergence in market views on domestic demand recovery elasticity [2]

Group 1: Bond Market Overview - The bond market sentiment has eased, with yields initially rising and then declining due to stable economic data released on Monday, indicating that the economy is expected to maintain rapid growth in Q1 [1] - Industrial production growth for January-February reached 5.9%, while service sector production grew by 5.6%, suggesting a potential for over 5% growth in Q1 [1] - Despite strong production, demand appears weak, with real estate sales showing a marginal decline and industrial sales rates hitting a record low for January-February, indicating increasing supply-demand imbalances [1] Group 2: Policy and Liquidity - The central bank has maintained a hawkish stance since the beginning of the year, focusing on the risks associated with rapid interest rate declines and currency depreciation, which has led to yield inversions [2] - The liquidity situation has improved slightly in March compared to February, with the central bank's increased interventions indicating a marginal change in its stance [1][2] Group 3: Stock Market Performance - The stock market experienced a pullback, with all major indices declining, particularly the ChiNext index which fell over 3%, attributed to a significant drop on Friday [3] - The overall trading volume in the A-share market decreased to an average of 1.55 trillion, reflecting a weakening market sentiment [3] - Value stocks outperformed in a weak market environment, while sectors such as oil, steel, and building materials showed better performance amidst a chaotic market structure [3] Group 4: Economic Indicators and Global Context - Economic indicators for January-February show a mixed picture, with strong industrial production and infrastructure investment but weak consumer demand and declining import growth [4] - The Federal Reserve has decided to maintain interest rates and slow down its balance sheet reduction, while Japan's central bank continues to keep rates unchanged, indicating a cautious global economic outlook [4]

Market Overview - A-shares and Hong Kong stocks experienced a collective adjustment, with the ChiNext Index leading the decline and the Shanghai Composite Index falling below 3400 points. The Shanghai Composite Index dropped by 1.29%, the Shenzhen Component Index fell by 1.76%, and the ChiNext Index decreased by 2.17% [1] - The total trading volume in the Shanghai and Shenzhen markets reached 1.55 trillion, an increase of 109.3 billion compared to the previous trading day, with over 4200 stocks declining [1] - In the Hong Kong market, the Hang Seng Index fell nearly 2%, and the Hang Seng Tech Index dropped nearly 3% [1] Hong Kong Technology Stocks - The Hang Seng Tech Index saw a significant decline, dropping over 3% and losing support from the 20-day and 30-day moving averages. Major stocks like Kingsoft Cloud and BYD fell over 8%, while companies like Xpeng Motors and Semiconductor Manufacturing International Corporation (SMIC) dropped over 6% [3][2] - The recent trend in the Hong Kong market indicates a pattern of profit-taking following earnings releases, possibly due to previously high expectations and the behavior of southbound capital [5] A-share Market Dynamics - The A-share market saw all three major indices decline, with the Shanghai Composite Index falling below 3400 points. Large-cap indices like the CSI 300 and SSE 50 experienced smaller declines compared to mid and small-cap indices [7] - BYD, a major player in the market, experienced a significant drop of 7% [8] Earnings Season Impact - Analysts noted that the upcoming earnings season could lead to increased volatility, particularly for small-cap stocks, as historical data suggests a decline in performance during this transition period [11] - The focus for technology stocks will be on the authenticity of earnings reports, with a potential divergence in performance based on actual results versus high valuations [11] Ocean Economy Sector - The ocean economy sector continues to show strength, with companies like ShenKai Co. achieving multiple consecutive trading limits. The sector is supported by recent government initiatives aimed at enhancing marine economic development [12][15] - The Shanghai Municipal Oceanic Administration plans to implement development plans for the marine industry, which is expected to positively impact related industries [15][16]

Core Viewpoint - The article discusses the current trends in the A-share market, highlighting the performance of various sectors, particularly focusing on marine economy, robotics, and coal stocks, while also addressing the impact of monetary policy on the bond market [1][3][4]. A-share Market Overview - The A-share market experienced a collective decline with the Shanghai Composite Index down by 0.51%, the Shenzhen Component down by 0.91%, and the ChiNext Index down by 1% [3]. - The total market turnover was 14,768 billion, a decrease of 302 billion from the previous day, with over 3,200 stocks declining [3]. Sector Highlights - The marine economy sector saw renewed interest following Shanghai's announcement of a development plan for the marine industry from 2025 to 2035, leading to a surge in deep-sea technology stocks [3]. - Robotics stocks remained strong, potentially influenced by news regarding Tesla's humanoid robot production [1][3]. - Coal stocks showed resilience, with analysts suggesting that the coal industry has limited downside potential, and prices may stabilize in the coming months [4]. Bond Market Insights - The bond market is witnessing a significant uptick, with the central bank's recent actions leading to a net injection of funds, resulting in a rally in government bonds [2][3]. - The 30-year government bond futures rose by 1.14%, while the 10-year and 5-year contracts increased by 0.31% and 0.23%, respectively [1][2]. Investment Opportunities - The article identifies potential investment opportunities in sectors such as marine economy, robotics, and coal, emphasizing the importance of monitoring economic data and central bank policies for future market movements [1][3][4].

Investment Rating - The report gives a "Buy" rating for the marine economy industry and for Manbang Group (YMM) [1][2][22]. Core Insights - The marine economy is driving economic acceleration, with deep-sea technology injecting new quality into the sector. The national marine production value is expected to exceed 10 trillion yuan in 2024, accounting for 7.8% of GDP, with a contribution of 11.5% to GDP growth [1][24]. - Manbang Group is a leading cross-city digital freight platform in China, with an estimated GTV of 330 billion yuan in 2023, capturing nearly 50% of the market share. The company is expected to see significant profit growth due to the rise of new energy heavy trucks and smart driving [2][41]. Summary by Sections Marine Economy - The marine economy is a crucial driver of economic growth, with significant potential for expansion. The government has highlighted "deep-sea technology" in its reports, indicating a focus on this area for future development [1][24]. - Investment opportunities in the marine economy include offshore wind power, marine oil and gas equipment, port shipping, seawater desalination, and marine aquaculture [1][26]. Manbang Group - Manbang Group's GTV in cross-city digital freight is projected to be around 300 billion yuan in 2023, with a fulfillment order volume of 159 million and active shippers and drivers at 2.24 million and 3.9 million, respectively [2][41]. - The company is expected to achieve net profits of 30.7 billion, 44.3 billion, and 63.3 billion yuan from 2024 to 2026, with a growth rate of approximately 40% [2][41]. The target PE ratio is set at 30 times, corresponding to a target price of $17.52 [2][22].

Group 1: Port Industry Insights - The port industry valuation has increased due to sentiment catalysts and re-evaluation factors, particularly after the sale of terminal assets by Cheung Kong, which achieved an EV/EBITDA of 11 times, while the industry average is between 6-8 times, indicating significant re-evaluation potential [1] - Xiamen Port Development, as the only listed platform under Fujian Port Group, leverages the strategic location of Xiamen Port (the 14th largest container port globally) to establish three core businesses: bulk cargo terminals, port logistics, and port services [1] - The company plans to expand into the container terminal sector through a major asset restructuring by 2025, enhancing its position as a comprehensive modern port logistics service provider [1] - With the gradual recovery of global trade and the ongoing Belt and Road Initiative, Xiamen Port's container throughput and domestic logistics demand are expected to continue growing [1] - Xiamen Port Development is well-positioned for long-term growth due to strong port resources, policy support, and market competitiveness, especially in the context of the overall re-evaluation of the port industry [1] - Investors are encouraged to pay attention to companies like COSCO Shipping Ports and China Merchants Port, particularly COSCO Shipping Ports, which benefits from being part of the world's largest container shipping alliance [1] Group 2: AI and Data Center Infrastructure - The demand for data center infrastructure (AIDC) is entering a new cycle as global internet giants, particularly Alibaba, ByteDance, and Tencent, increase their investments in AI capabilities [4] - North America's four major cloud service providers are expected to exceed $315 billion in capital expenditures by 2025, driven by AI-related demand, leading to significant expansion in the data center industry [4] - The demand for key IT power supplies in data centers is projected to double from 49 GW in 2023 to 96 GW by 2026, with 90% of this growth attributed to AI-related needs [4] - The global market for temperature control in data centers is expected to grow from approximately $7.7 billion in 2023 to $17.8 billion by 2028, with a CAGR of about 18.4% [4] - Liquid cooling technology is becoming increasingly important in data centers, with its market share expected to rise to 33% due to the trend of increasing server cabinet power [4] - Domestic brands are likely to replace foreign brands in the backup power supply segment within data centers, especially under tight supply-demand conditions [4] Group 3: Emerging Technologies and Market Trends - Deep-sea technology has been officially included in the national future industry development priorities in the 2025 government work report, indicating the rise of this emerging industry and gaining national policy support [10] - The deep-sea technology sector has significant industrial potential, aligning with national strategic needs and offering broad market prospects, potentially becoming a new growth area for the economy [10] - The industry requires the integration of various technologies, including oceanography, artificial intelligence, and bioengineering, to advance technologies such as bionic robots and deep-sea sensors [10] - The marine economy is expected to grow robustly, with China's marine economy projected to exceed 10 trillion yuan in total by 2024 [10] - AI technology can enhance sustainable development by using intelligent sensor networks and big data analysis to assess fishery resources and formulate protection strategies [10]

Domestic Policy News - The government has set a GDP growth target of around 5% for 2025, maintaining the same target as 2024, with a budget deficit rate of 4% [9][10][12] - The government plans to issue 4.4 trillion yuan in local government special bonds and 1.3 trillion yuan in ultra-long-term special bonds to support state-owned commercial banks in capital replenishment [10][12] - The monetary policy aims for "timely reserve requirement ratio and interest rate cuts" to maintain ample liquidity in the economy [10][22] Support for Private and Technology Enterprises - The central bank and five departments support private enterprises in capital market development, emphasizing equal treatment for all types of ownership enterprises [2][8] - The government is expanding the scale of re-loans for technological innovation and technical transformation, increasing from 500 billion yuan to between 800 billion and 1 trillion yuan [38] - The establishment of a national venture capital guidance fund focusing on cutting-edge fields such as artificial intelligence and quantum technology is planned [40] Real Estate Sector - The financial regulatory authority emphasizes support for stabilizing the real estate market, including expanding financing coordination mechanisms and ensuring project delivery [3][24][42] - The government is implementing measures to support the transformation of urban villages and the renovation of dilapidated housing [42] Consumer and Employment Policies - The government is promoting consumption through initiatives like expanding the range of subsidies for trade-ins and encouraging financial institutions to increase personal consumption loans [4][26] - Employment support plans are being organized to release job opportunities in advanced manufacturing and new consumption hotspots [41] Local Policies - Local policies focus on emerging industries, promoting investment and consumption, and providing childbirth subsidies [45]

Investment Rating - The report maintains a "Recommendation" rating for the deep-sea technology industry, indicating a potential increase in stock prices relative to benchmark indices [5]. Core Insights - The introduction of "Deep Sea Technology" in the 2025 government work report highlights its importance as a new productive force, suggesting favorable development opportunities for the industry [1]. - The marine economy has surpassed 10 trillion yuan, with deep-sea technology expected to play a significant role in future growth, as evidenced by a 5.9% increase in marine GDP from the previous year [2]. - Deep-sea capabilities are becoming a crucial component of new domain combat forces, with significant investments from both the U.S. military and China's advancements in deep-sea exploration technologies [3]. Summary by Sections Government Policy - The 2025 government work report emphasizes the development of deep-sea technology as part of new productive forces, indicating a shift towards resource development and advanced communication technologies [1]. Economic Growth - The marine economy's total output reached 10.5438 trillion yuan in 2024, marking a 5.9% year-on-year growth, which is higher than the overall GDP growth rate [2]. Military and Strategic Importance - The U.S. military is investing heavily in deep-sea capabilities, with projected expenditures of approximately 110 billion USD for new submarines and advanced underwater drones [3]. - China is also focusing on deep-sea capabilities, with successful deep-sea exploration missions showcasing its technological advancements [3]. Investment Opportunities - The report identifies several segments within deep-sea technology for potential investment, including deep-sea information technology, engineering equipment, corrosion-resistant materials, and specialized material processing [4]. - Key companies in these segments include China Shipbuilding Group, China Aerospace Science and Technology Corporation, and various specialized material manufacturers [4].