Core Insights - Dongfang Electric (600875) shares rose over 4%, currently up 4.16% at HKD 20.52, with a trading volume of HKD 188 million [1] Financial Performance - For Q3 2025, the company reported total revenue of RMB 17.371 billion, a year-on-year increase of 20.69% [1] - Net profit attributable to shareholders for Q3 2025 was RMB 1.057 billion, up 13.22% year-on-year [1] - Basic earnings per share for Q3 2025 stood at RMB 0.3 [1] - For the first nine months of 2025, total revenue reached RMB 55.522 billion, reflecting a year-on-year increase of 16.03% [1] - Net profit attributable to shareholders for the first nine months was RMB 2.966 billion, an increase of 13.02% year-on-year [1] - Basic earnings per share for the first nine months was RMB 0.9 [1] Production and Orders - In the first three quarters of 2025, the company produced 61.4585 million kilowatts of power generation equipment, including 4.43 million kilowatts of hydropower generators, 45.177 million kilowatts of steam turbines, and 11.8515 million kilowatts of wind power generators [1] - The company secured new effective orders totaling RMB 88.583 billion in the first three quarters of 2025, with clean and efficient energy equipment accounting for 36.86%, renewable energy equipment for 30.39%, engineering and international supply chain industry for 10.98%, modern manufacturing services for 8.87%, and emerging growth industries for 12.90% [1]

Group 1 - The report tracks stocks, industries, and sectors that are reaching new highs, indicating market trends and hotspots [1][4] - As of September 26, 2025, the distance to the 250-day new high for major indices is as follows: Shanghai Composite Index 1.43%, Shenzhen Component Index 1.76%, CSI 300 0.95%, CSI 500 1.37%, CSI 1000 2.08%, CSI 2000 3.67%, ChiNext Index 2.60%, and STAR 50 Index 1.60% [6][24] - The sectors closest to their 250-day new highs include power equipment and new energy, non-ferrous metals, electronics, media, and machinery, while food and beverage, banking, coal, transportation, and comprehensive finance are further away [24] Group 2 - A total of 1,233 stocks reached a 250-day new high in the past 20 trading days, with the most new highs in the electronics, machinery, and basic chemicals sectors [13][24] - The highest proportion of new high stocks is found in non-ferrous metals (54.84%), electronics (37.45%), and power equipment and new energy (31.09%) [13][24] - The technology and manufacturing sectors had the most new high stocks this week, with 386 and 358 stocks respectively [15][24] 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 [25] - The technology sector had the most stable new high stocks, particularly in the electronics industry, while the manufacturing sector had the most in the machinery industry [20][25]

Quantitative Models and Construction Methods 1. Model Name: 250-Day New High Distance - **Model Construction Idea**: This model tracks the distance of a stock's closing price from its 250-day high to identify momentum and trend-following opportunities in the market. It is inspired by studies showing that stocks near their 52-week highs tend to outperform[11][18]. - **Model Construction Process**: The formula for the 250-day new high distance is: $ 250\ Day\ New\ High\ Distance = 1 - \frac{Close_t}{ts\_max(Close, 250)} $ Where: - $Close_t$ represents the latest closing price - $ts\_max(Close, 250)$ represents 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 indicating the percentage drop[11]. - **Model Evaluation**: This model effectively captures market momentum and highlights stocks or indices that are leading the market trends[11][18]. 2. Model Name: Stable New High Stock Screening - **Model Construction Idea**: This model identifies stocks with stable price paths and consistent momentum, as smoother price trajectories are associated with stronger momentum effects[27]. - **Model Construction Process**: The screening process involves the following steps: - **Analyst Attention**: Stocks must have at least 5 "Buy" or "Overweight" ratings in the past 3 months - **Relative Strength**: Stocks must rank in the top 20% of the market based on 250-day price performance - **Price Stability**: Stocks are scored based on two metrics: - **Price Path Smoothness**: Measured by the ratio of price displacement to the total price path length - **Momentum Consistency**: Calculated as the time-series average of the 250-day new high distance over the past 120 days - **Trend Continuation**: Stocks are ranked based on the 5-day average of the 250-day new high distance, and the top 50 stocks are selected[27][29]. - **Model Evaluation**: This model emphasizes the importance of smooth and consistent price movements, which are less likely to attract excessive attention and thus generate stronger momentum effects[27][29]. --- Model Backtesting Results 1. 250-Day New High Distance - **Indices' 250-Day New High Distance**: - Shanghai Composite: 1.63% - Shenzhen Component: 1.09% - CSI 300: 1.08% - CSI 500: 1.24% - CSI 1000: 1.54% - CSI 2000: 1.91% - ChiNext Index: 1.79% - STAR 50 Index: 1.28%[2][12][34] 2. Stable New High Stock Screening - **Selected Stocks**: 50 stocks were identified, including Industrial Fulian, Giant Network, and Shengyi Electronics. - **Sector Distribution**: - Technology: 18 stocks (e.g., Electronics) - Manufacturing: 15 stocks (e.g., Machinery)[3][30][35] --- Quantitative Factors and Construction Methods 1. Factor Name: 250-Day New High Distance - **Factor Construction Idea**: Measures the relative position of a stock's closing price to its 250-day high, capturing momentum and trend-following signals[11]. - **Factor Construction Process**: $ 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]. 2. Factor Name: Price Path Smoothness - **Factor Construction Idea**: Quantifies the smoothness of a stock's price trajectory, as smoother paths are associated with stronger momentum effects[27]. - **Factor Construction Process**: - **Price Path Smoothness**: Ratio of price displacement to total price path length over a given period[27]. 3. Factor Name: Momentum Consistency - **Factor Construction Idea**: Measures the stability of a stock's momentum over time, emphasizing consistent performance[27]. - **Factor Construction Process**: - **Momentum Consistency**: Time-series average of the 250-day new high distance over the past 120 days[27]. 4. Factor Name: Trend Continuation - **Factor Construction Idea**: Captures short-term momentum by analyzing recent price movements[27]. - **Factor Construction Process**: - **Trend Continuation**: 5-day average of the 250-day new high distance, with stocks ranked based on this metric[27]. --- Factor Backtesting Results 1. 250-Day New High Distance - **Indices' 250-Day New High Distance**: - Shanghai Composite: 1.63% - Shenzhen Component: 1.09% - CSI 300: 1.08% - CSI 500: 1.24% - CSI 1000: 1.54% - CSI 2000: 1.91% - ChiNext Index: 1.79% - STAR 50 Index: 1.28%[2][12][34] 2. Stable New High Stock Screening Factors - **Selected Stocks**: 50 stocks were identified, including Industrial Fulian, Giant Network, and Shengyi Electronics. - **Sector Distribution**: - Technology: 18 stocks (e.g., Electronics) - Manufacturing: 15 stocks (e.g., Machinery)[3][30][35]

Quantitative Models and Construction Methods 1. Model Name: 250-Day New High Distance Model - **Model Construction Idea**: This model tracks the distance of the latest closing price from the highest closing price over the past 250 trading days. It is used to identify stocks or indices that are approaching or have surpassed their historical highs, which can serve as indicators of market trends and hotspots[11][18]. - **Model Construction Process**: The formula for the 250-day new high distance is: $ 250\ Day\ New\ High\ Distance = 1 - \frac{Close_t}{ts\_max(Close, 250)} $ Where: - $ Close_t $ represents the latest closing price - $ ts\_max(Close, 250) $ represents 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 indicating the percentage drop[11]. - **Model Evaluation**: The model is effective in identifying stocks or indices with strong momentum and can be used to monitor market trends and leading sectors[11][18]. 2. Model Name: Stable New High Stock Screening Model - **Model Construction Idea**: This model focuses on identifying stocks that not only achieve new highs but also exhibit stable price paths and consistent momentum. It incorporates factors such as analyst attention, relative strength, and price stability to refine the selection of high-momentum stocks[27][29]. - **Model Construction Process**: The screening criteria include: - **Analyst Attention**: At least 5 buy or overweight ratings in the past 3 months - **Relative Strength**: 250-day price change in the top 20% of the market - **Price Stability**: Stocks are ranked based on the following metrics: - **Price Path Smoothness**: Ratio of price displacement to the total price path - **New High Continuity**: Average 250-day new high distance over the past 120 days - **Trend Continuity**: Average 250-day new high distance over the past 5 days The top 50 stocks based on these criteria are selected as stable new high stocks[27][29]. - **Model Evaluation**: The model emphasizes the temporal characteristics of momentum and identifies stocks with smoother price paths, which are less likely to experience extreme volatility[27][29]. --- Model Backtesting Results 1. 250-Day New High Distance Model - **Indices' 250-Day New High Distance**: - Shanghai Composite: 1.63% - Shenzhen Component: 1.09% - CSI 300: 1.08% - CSI 500: 1.24% - CSI 1000: 1.54% - CSI 2000: 1.91% - ChiNext Index: 1.79% - STAR 50 Index: 1.28%[12][13][34] 2. Stable New High Stock Screening Model - **Selected Stocks**: 50 stocks were identified, including Industrial Fulian, Giant Network, and Shengyi Electronics. - **Sector Distribution**: - Technology: 18 stocks (e.g., Electronics) - Manufacturing: 15 stocks (e.g., Machinery)[30][35] --- Quantitative Factors and Construction Methods 1. Factor Name: 250-Day New High Distance - **Factor Construction Idea**: Measures the relative position of the latest closing price to the highest price in the past 250 trading days, indicating momentum strength[11]. - **Factor Construction Process**: The formula is: $ 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[11]. - **Factor Evaluation**: This factor effectively captures momentum and is widely used in trend-following strategies[11][18]. 2. Factor Name: Price Path Smoothness - **Factor Construction Idea**: Evaluates the stability of a stock's price movement by comparing the displacement of the price path to its total length[27]. - **Factor Construction Process**: $ Price\ Path\ Smoothness = \frac{Price\ Displacement}{Total\ Price\ Path} $ Where: - Price Displacement is the straight-line distance between the starting and ending prices - Total Price Path is the cumulative sum of absolute daily price changes over a given period[27]. - **Factor Evaluation**: Stocks with smoother price paths tend to exhibit stronger and more sustainable momentum[27]. 3. Factor Name: New High Continuity - **Factor Construction Idea**: Measures the consistency of a stock's ability to maintain new highs over time[29]. - **Factor Construction Process**: $ New\ High\ Continuity = Average\ (250\ Day\ New\ High\ Distance\ Over\ Past\ 120\ Days) $ This factor calculates the mean of the 250-day new high distance over a rolling 120-day window[29]. - **Factor Evaluation**: This factor highlights stocks with persistent upward trends, making them attractive for momentum-based strategies[29]. --- Factor Backtesting Results 1. 250-Day New High Distance - **Indices' 250-Day New High Distance**: - Shanghai Composite: 1.63% - Shenzhen Component: 1.09% - CSI 300: 1.08% - CSI 500: 1.24% - CSI 1000: 1.54% - CSI 2000: 1.91% - ChiNext Index: 1.79% - STAR 50 Index: 1.28%[12][13][34] 2. Price Path Smoothness and New High Continuity - **Selected Stocks**: 50 stocks were identified, including Industrial Fulian, Giant Network, and Shengyi Electronics. - **Sector Distribution**: - Technology: 18 stocks (e.g., Electronics) - Manufacturing: 15 stocks (e.g., Machinery)[30][35]