Investment Rating - The report suggests a focus on sectors with strong technical barriers and dynamic price-to-earnings ratios below 50 times, indicating a positive investment outlook for these areas [7][21][43]. Core Insights - The North Exchange market experienced a decrease in trading volume, with the North Exchange A-share trading amount reaching 18.57 billion yuan, down by 7.58 billion yuan from the previous trading day, and the index fell by 0.9% [4][7]. - The report highlights that the power industry chain and rare earth permanent magnet sectors are currently the market hotspots, while the pharmaceutical sector has generally retreated [7]. - The report emphasizes the importance of three core variables for future market performance: the relative valuation of the North Exchange 50 index compared to other indices, the acceleration of IPO reviews and policies supporting mergers and acquisitions, and the need to monitor changes in trading volume as a key indicator [7]. Market Review - On July 7, among the 268 companies listed on the North Exchange, 105 saw their stock prices rise, 5 remained flat, and 158 experienced declines. The top five gainers were Fangda New Materials (9.9%), Caneng Electric (8.7%), Painuo Technology (7.8%), Zhongke Meiling (6.6%), and Honghai Technology (5.8%). Conversely, the top five decliners were Knight Dairy (-12.7%), Baijia Technology (-6.2%), Qifeng Precision (-5.6%), Dongfang Carbon (-4.6%), and Sanyuan Gene (-4.5%) [4][24][28]. - The North Exchange 50 index closed at 1401.92 points, reflecting a 0.9% drop, with a trading volume of 18.57 billion yuan, indicating a nearly 30% decrease in trading volume [7][14]. Important News - A new mandatory national standard for passenger car brake systems has been released, which includes ten revisions and emphasizes the requirement for regenerative braking technology [29]. - A new round of investment in charging stations is anticipated, with a goal of establishing over 100,000 high-power charging facilities nationwide by the end of 2027, which is expected to enhance the value and profit margins of the charging station industry [30]. Key Company Announcements - Zecheng Electronics announced the expiration of the lock-up period for its first employee stock ownership plan on July 6, 2025 [32]. - Chunguang Intelligent received a patent for a rapid disinfection device for food packaging materials, with a total of 74 patents authorized to date [32].