Market Overview - The A-share market showed a mostly positive trend today, with the Shanghai Composite Index rising by 0.48% to close at 3683.46 points, and the Shenzhen Component Index increasing by 1.76% to 11551.36 points [1] - The total trading volume in the Shanghai and Shenzhen markets reached 21,509 billion, an increase of 2,694.17 million compared to the previous trading day [1] - Among the major indices, the ChiNext Index saw the highest increase, rising by 3.62% to 2496.50 points [1] Industry Performance - The leading sectors today included telecommunications, non-ferrous metals, electronics, pharmaceutical biology, power equipment, and national defense, which all experienced gains [1] - Conversely, sectors such as banking, coal, food and beverage, textiles and apparel, public utilities, and oil and petrochemicals faced declines [1] Sector Highlights - Notable concept sectors with significant gains included optical modules (CPO), optical chips, industrial gases, optical communications, CRO, circuit boards, servers, selected industrial metals, cultivated diamonds, Huakun Zhenyu, innovative drugs, photovoltaic inverters, semiconductor materials, and IDC (computing power leasing) [2]

Quantitative Models and Construction Methods 1. Model Name: 250-Day New High Distance Model - **Model Construction Idea**: This model tracks the distance of stock prices or indices from their 250-day high to identify market trends and hotspots. It is based on the momentum and trend-following strategy, which has been proven effective in various studies[11][19]. - **Model Construction Process**: The 250-day new high distance is calculated using the formula: $ 250\ Day\ New\ High\ Distance = 1 - \frac{Close_t}{ts\_max(Close, 250)} $ Where: - $ Close_t $ is the latest closing price - $ ts\_max(Close, 250) $ is the maximum closing price over the past 250 trading days If the latest closing price reaches a new high, the distance is 0. If the price has fallen from the high, the distance is a positive value representing the percentage drop[11]. - **Model Evaluation**: This model effectively identifies stocks or indices with strong momentum and highlights market leaders during upward trends[11][19]. 2. Model Name: Stable New High Stock Screening Model - **Model Construction Idea**: This model focuses on identifying stocks that exhibit stable momentum characteristics, such as smooth price paths and consistent new highs, which are less likely to be influenced by extreme short-term fluctuations[25]. - **Model Construction Process**: The screening process involves the following steps: 1. **Analyst Attention**: Stocks must have at least five "Buy" or "Overweight" ratings in the past three months[27]. 2. **Relative Strength**: Stocks must rank in the top 20% of the market based on their 250-day price performance[27]. 3. **Price Stability**: Stocks are scored based on two indicators: - **Price Path Smoothness**: Measured by the ratio of price displacement to the total price movement over the past 120 days[25][27]. - **New High Consistency**: The average 250-day new high distance over the past 120 days[27]. 4. **Trend Continuity**: The average 250-day new high distance over the past five days is used to select the top 50 stocks[27]. - **Model Evaluation**: This model emphasizes the importance of smooth momentum and consistent trends, which are often overlooked by investors, leading to stronger momentum effects[25][27]. --- Backtesting Results of Models 1. 250-Day New High Distance Model - **Indices' 250-Day New High Distance**: - Shanghai Composite Index: 0.12% - Shenzhen Component Index: 3.19% - CSI 300: 3.55% - CSI 500: 0.53% - CSI 1000: 0.35% - CSI 2000: 0.23% - ChiNext Index: 8.48% - STAR 50 Index: 7.39%[12][32] 2. Stable New High Stock Screening Model - **Selected Stocks**: 50 stocks were identified, including Borui Pharmaceutical, Shenghong Technology, and Huaguang Energy[28][33]. - **Sector Distribution**: - Manufacturing: 18 stocks - Cyclical: 13 stocks - Leading industries: Machinery in manufacturing and basic chemicals in cyclical sectors[28][33] --- Quantitative Factors and Construction Methods 1. Factor Name: 250-Day New High Distance - **Factor Construction Idea**: This factor measures the relative position of a stock's closing price to its 250-day high, capturing momentum and trend-following characteristics[11]. - **Factor Construction Process**: The formula is the same as the 250-Day New High Distance Model: $ 250\ Day\ New\ High\ Distance = 1 - \frac{Close_t}{ts\_max(Close, 250)} $ - $ Close_t $: Latest closing price - $ ts\_max(Close, 250) $: Maximum closing price over the past 250 trading days[11]. - **Factor Evaluation**: This factor is effective in identifying stocks with strong upward momentum and market leadership potential[11][19]. 2. Factor Name: Price Path Smoothness - **Factor Construction Idea**: This factor evaluates the stability of a stock's price movement over time, favoring stocks with less volatile momentum[25]. - **Factor Construction Process**: - **Price Path Smoothness**: Calculated as the ratio of price displacement to the total price movement over the past 120 days[25][27]. - **Factor Evaluation**: Smooth price paths are associated with stronger momentum effects due to reduced investor attention and reaction[25]. 3. Factor Name: New High Consistency - **Factor Construction Idea**: This factor measures the consistency of a stock's new highs over time, emphasizing sustained upward trends[27]. - **Factor Construction Process**: - **New High Consistency**: The average 250-day new high distance over the past 120 days[27]. - **Factor Evaluation**: Consistent new highs indicate strong and sustained momentum, making this factor valuable for trend-following strategies[27]. --- Backtesting Results of Factors 1. 250-Day New High Distance Factor - **Indices' 250-Day New High Distance**: - Shanghai Composite Index: 0.12% - Shenzhen Component Index: 3.19% - CSI 300: 3.55% - CSI 500: 0.53% - CSI 1000: 0.35% - CSI 2000: 0.23% - ChiNext Index: 8.48% - STAR 50 Index: 7.39%[12][32] 2. Price Path Smoothness Factor - **Selected Stocks**: 50 stocks were identified, including Borui Pharmaceutical, Shenghong Technology, and Huaguang Energy[28][33]. - **Sector Distribution**: - Manufacturing: 18 stocks - Cyclical: 13 stocks - Leading industries: Machinery in manufacturing and basic chemicals in cyclical sectors[28][33] 3. New High Consistency Factor - **Selected Stocks**: Same as the Price Path Smoothness Factor, as this factor is part of the screening process for stable new high stocks[28][33].

Group 1 - The report tracks stocks, industries, and sectors that are reaching new highs, indicating market trends and hotspots [1][4][26] - As of August 8, 2025, the distance to the 250-day new high for major indices is as follows: Shanghai Composite Index 0.12%, Shenzhen Component Index 3.19%, CSI 300 3.55%, CSI 500 0.53%, CSI 1000 0.35%, CSI 2000 0.23%, ChiNext Index 8.48%, and STAR 50 Index 7.39% [6][26] - The industries closest to their 250-day new highs include machinery, non-ferrous metals, basic chemicals, light industry manufacturing, and textile and apparel, while food and beverage, coal, real estate, consumer services, and comprehensive finance are further away [9][26] Group 2 - A total of 1,336 stocks reached a 250-day new high in the past 20 trading days, with the most in the pharmaceutical, machinery, and basic chemicals sectors [2][14][26] - The highest proportion of new high stocks is found in the steel, defense, and non-ferrous metals industries, with respective proportions of 54.72%, 47.06%, and 43.55% [14][16] - The manufacturing and cyclical sectors had the most new high stocks this week, with 437 and 310 stocks respectively [16][26] Group 3 - The report identifies 50 stable new high stocks based on analyst attention, relative strength, trend continuity, price path stability, and new high sustainability [3][21][27] - The manufacturing sector had the most stable new high stocks, particularly in the machinery industry, while the cyclical sector's highest was in basic chemicals [21][27]

- The report does not contain any quantitative models or factors related to construction, evaluation, or testing results[1][2][3]

Market Overview - A-shares opened slightly lower on June 18, with all major indices in the red and over 4200 stocks declining [1] - The Shanghai Composite Index fell by 0.41% to 3373.61, while the Shenzhen Component decreased by 0.23% to 10128.47 [2] Sector Performance - The food and beverage sector showed initial strength, particularly in liquor stocks, with notable gains from companies like Mogaos, Huangtai Wine, and Jinzhongzi Wine, all hitting the daily limit [5][6] - The photovoltaic inverter, liquor, military, and digital currency sectors experienced localized rallies, while rare earth permanent magnet stocks saw significant pullbacks [3][11] Liquor Industry Insights - During the "618" shopping festival, several e-commerce platforms initiated aggressive price cuts on liquor, with high-end products like Feitian Moutai seeing price drops, which has become a key market variable [7] - Specific liquor stocks such as Mogaos, Huangtai Wine, and Jinzhongzi Wine reported increases of approximately 10% [6] Oil and Gas Sector Activity - The oil and gas sector was notably active, with companies like Zhun Oil and Beiken Energy experiencing substantial gains, attributed to rising international oil prices amid escalating geopolitical tensions in the Middle East [8][9] Defense and Military Sector - The defense and military sector saw significant upward movement, with stocks like Changcheng Military Industry hitting the daily limit and others like Beifang Longzhong and Jiekang Equipment rising over 10% [10] Consumer Sector Weakness - The broader consumer sector faced challenges, with retail stocks declining, particularly in the small commodity market, where Xiaoshangpin City dropped over 9% [11][12] - The beauty and personal care sector also experienced declines, with several companies reporting drops exceeding 5% [13] Rare Earth Sector Decline - Rare earth permanent magnet stocks faced notable declines, with companies like Beikong Technology nearing the daily limit down, and others like Zhongke Magnetic and Keheng shares dropping over 9% [15][16]

Core Viewpoint - The explosive growth of the energy storage business in 2024 is the main driver for the rapid improvement in the company's performance, with an annual energy storage revenue growth rate of 40%, significantly exceeding the industry average, and a gross margin of 36.7% demonstrating the premium strength of the leader [1] Financial Performance - In 2024, the company achieved an operating revenue of 77.857 billion yuan (up 7.76% year-on-year) and a net profit attributable to shareholders of 11.036 billion yuan (up 16.92% year-on-year) [2] - In Q4, the single-quarter revenue was 27.911 billion yuan (up 8.03% year-on-year, up 47.50% quarter-on-quarter), with a net profit of 3.437 billion yuan (up 55.05% year-on-year, up 30.16% quarter-on-quarter) [2] - In Q1 2025, the company reported an operating revenue of 19.036 billion yuan (up 50.92% year-on-year, down 31.79% quarter-on-quarter) and a net profit of 3.826 billion yuan (up 82.52% year-on-year, up 11.32% quarter-on-quarter) [2] Energy Storage Business - The company maintained high growth in shipments and revenue, with a total energy storage system shipment of 28 GWh in 2024 (up 167% year-on-year) and revenue of 24.959 billion yuan (up 40.21% year-on-year), significantly outpacing the global average growth rate in the energy storage industry [3] - The company's PowerTitan 2.0 liquid cooling system has rapidly penetrated the Middle East and European markets, securing major orders including the largest energy storage project in the UK (4.4 GWh) and a benchmark project in the Middle East (7.8 GWh) [3] - The company aims to achieve energy storage system shipments of 40-50 GWh in 2025, continuing its high growth trajectory [3] Inverter Business - The global shipment of photovoltaic inverters reached 147 GW in 2024 (up 13% year-on-year), further expanding the company's leading market share [4] - Despite the increase in distribution channel share and the impact of European currency depreciation, the overall gross margin declined to 30.90% (down 1.94 percentage points year-on-year) [4] - The company has established a "high voltage + modular" barrier through technology, and the domestic supply chain has reduced costs, which helps maintain stable gross margins in the inverter business [4] Cash Flow and R&D - The company's operating net cash flow improved significantly to 12.068 billion yuan in 2024 (up 72.9% year-on-year), with inventory turnover days reduced to 98 days and the debt ratio declining to 64.16% [4] - R&D investment reached 3.164 billion yuan (up 29.3% year-on-year), focusing on cutting-edge technologies such as power electronics and high-voltage systems, with 9,401 new patents filed (54% of which are invention patents) [4] Profit Forecast and Investment Recommendation - As a global leader in energy storage, the company has significant advantages in brand, R&D, and distribution channels, with expected high growth in energy storage system shipments in 2025 [5] - Revenue forecasts for 2025-2027 are 93.452 billion yuan, 107.731 billion yuan, and 119.517 billion yuan, with net profits of 12.035 billion yuan, 13.140 billion yuan, and 13.947 billion yuan, corresponding to current PE valuations of 10.44, 9.56, and 9.01 times [5]

Market Overview - A-shares experienced a narrow fluctuation with total trading volume dropping to 1.18 trillion yuan, a decrease of 107.36 billion yuan from the previous trading day [1] - The three major indices closed slightly down, with the Shanghai Composite Index down 0.04%, the Shenzhen Component Index down 0.05%, and the ChiNext Index down 0.26% [1] Sector Performance - Over 3,500 stocks rose in the market, with notable strength in sectors such as chemicals and poultry, while banks faced adjustments [3][4] - Key sectors that saw gains included chemical fiber, poultry, industrial mother machines, and photovoltaic equipment, while oil and gas, banking, coal, and electricity sectors experienced declines [4] Notable Stocks - Evergrande Auto saw a significant increase, with its stock price rising over 200% at one point, closing at 0.239 HKD per share, marking a rise of over 100% [7][10] - Evergrande Property also experienced a surge, with its stock price increasing by over 20% during the trading session [8] Trading Dynamics - The market showed a mixed performance with various hot sectors, including robotics and industrial machinery, demonstrating active trading [3] - The Hong Kong stock market indices collectively rose, with the Hang Seng Index up 0.47%, the Hang Seng Tech Index up 0.79%, and the State-owned Enterprises Index up 0.31% [4]