Macro Strategy - The core viewpoint of the report indicates that the main theme of China's economy in 2025 is to respond to changes, influenced by external factors such as fluctuating tariffs and internal factors like asset revaluation and investment growth turning negative [1][4] - For 2026, the focus will shift to maintaining continuity, with reduced uncertainty in macro changes and increased visibility in economic policies. Five key areas of focus include policy continuity, AI-driven supply, consumption upgrades, asset-liability repair, and anti-involution price strategies [1][4] - The expected economic growth rate for 2026 is around 4.9%, with consumption and export growth slightly declining while investment growth is anticipated to improve [1][4] Company Analysis - The report highlights the company "联德股份" as a leading player in the precision casting industry, benefiting from AI-driven demand in cooling and power supply sectors. The company has established long-term partnerships with major global clients [7][8] - The projected compound annual growth rate (CAGR) for the company's revenue and net profit from 2016 to 2024 is 12.7% and 13.3%, respectively, indicating a strong growth trend [7][8] - The company is expected to achieve net profits of 2.2 billion, 3.0 billion, and 4.1 billion yuan for the years 2025, 2026, and 2027, with corresponding price-to-earnings ratios of 38, 28, and 20 times [7][8] Industry Insights - The report emphasizes the high growth in demand for cooling and backup power driven by AIDC (Artificial Intelligence Data Center) needs, with the U.S. AIDC cooling component market expected to exceed 10 billion yuan by 2028 [8] - The engineering machinery sector is also projected to recover, with the company positioned to benefit from increased demand starting in 2025 [8] - The company's integrated casting and machining capabilities provide a competitive edge, allowing it to participate deeply in client R&D and design, leading to higher product value and profitability [8]

Macro Strategy - The core viewpoint of the report indicates that the main theme of China's economy in 2025 is to respond to changes, influenced by external factors such as fluctuating tariffs and internal factors like asset revaluation and investment trends [1][4] - For 2026, the focus will be on continuity and adaptation, with five key areas of transition: policy support, AI-driven supply, consumption upgrades, wealth recovery, and price stability [1][4] - Economic growth is projected at around 4.9%, with consumption and export growth slightly declining while investment growth is expected to improve [1][4] Fixed Income and Equity Analysis - The report discusses the issuance of Maolai Convertible Bonds, with a total issuance scale of 563 million yuan, aimed at funding precision optical production and R&D projects [5][6] - The expected listing price range for Maolai Convertible Bonds is between 129.60 and 143.56 yuan, with a low conversion premium of approximately 4.04% [5][6] - The financial performance of Maolai Optical shows a compound annual growth rate of 17.78% from 2019 to 2024, with revenue fluctuations and a projected revenue of 503 million yuan in 2024 [6] Company-Specific Insights - Hengyin Technology is highlighted as a leader in banking smart terminals, with a focus on blockchain technology to empower digital currency [7][8] - The company is expected to see revenue growth from 500 million yuan in 2025 to 800 million yuan in 2027, with a target price of 14.4 yuan for 2026 based on a 12x price-to-sales ratio [7][8] - The report emphasizes the importance of digital RMB and blockchain technology as key drivers for future growth, with a significant increase in overseas revenue expected [7][8]