Core Viewpoint - The article highlights the diligent efforts of active fund managers, particularly focusing on Li Wenbin, who has been actively seeking investment opportunities despite the challenges faced by active equity funds in recent years [1][29]. Group 1: Active Fund Management - Active fund managers have been working hard behind the scenes, especially during a period when active equity funds have underperformed compared to the market from 2022 to 2024 [1][3]. - Li Wenbin has demonstrated strong industry judgment, successfully identifying strategic investment opportunities in sectors like artificial intelligence, semiconductor materials, and biomedicine, achieving significant returns [3][21]. - The performance of Li Wenbin's funds, such as the Yongying Technology Driven A with a return of 64.22% and the Yongying Ruijian Progress A with a return of 40.21%, showcases the potential of active management [3][29]. Group 2: Industry Challenges and Strategies - The rise of passive funds has led to a need for active funds to differentiate themselves, focusing on unique product designs and absolute return thinking [5][8]. - The article discusses the importance of adapting to market changes and the necessity for fund managers to maintain a focus on investor returns rather than merely chasing performance rankings [8][10]. - The active equity market is seen as having clear strategic opportunities, particularly in the context of China's asset revaluation and the impact of policy guidance and technological breakthroughs [4][21]. Group 3: Investment Philosophy - Li Wenbin emphasizes a dual approach in stock selection, focusing on both stable companies and high-quality growth stocks, with a strong emphasis on ESG management and financial health [13][14]. - The investment strategy includes a rigorous process of verifying investment logic and adjusting forecasts based on market realities, highlighting the importance of adaptability in investment management [18][19]. - The article notes that the lack of a short-selling mechanism in the A-share market can lead to rapid loss of excess returns once a method becomes widely accepted [9]. Group 4: Future Outlook - The article suggests that the current A-share market presents structural opportunities driven by technological innovation and national defense considerations, with a focus on artificial intelligence as a leading sector [21][22]. - The ongoing global military revolution emphasizes the importance of information, automation, and intelligence in military equipment, which aligns with investment strategies in the defense sector [23]. Group 5: Personal Commitment - Li Wenbin's commitment to continuous learning and hard work is highlighted, with over 300,000 words of study notes accumulated in a year and a half, reflecting a dedication to improving investment strategies [25][28]. - The culture at Yongying Fund emphasizes enhancing investor experience and long-term growth over merely increasing fund size, indicating a shift in focus within the industry [10][11].

Core Viewpoint - The establishment of the Defense Committee by Iran's Supreme National Security Council aims to enhance the operational capabilities of the armed forces and address fundamental security issues highlighted by recent conflicts with Israel [1]. Group 1: Formation of the Defense Committee - The Defense Committee has been approved by the Supreme National Security Council based on Article 176 of the Iranian Constitution [1]. - President Pezeshkian will chair the newly formed Defense Committee, which includes heads of Iran's executive, judicial, and legislative branches, as well as senior military commanders [1]. - The formation of this committee is part of significant reforms at a high-level security institution in Iran [1]. Group 2: Context and Implications - The recent conflict between Iran and Israel in late June has underscored fundamental security issues within Iran, prompting the need for a thorough analysis of vulnerabilities to mitigate losses [1].

Core Viewpoint - The visit of the naval fleet, particularly the Shandong aircraft carrier, to Hong Kong is seen as a significant event that underscores national defense and security, coinciding with important anniversaries related to Hong Kong's return to China and the implementation of the National Security Law [1] Group 1 - The Chief Executive of Hong Kong, John Lee, expressed gratitude on behalf of the Hong Kong government and citizens for the support from the nation [1] - The year marks the 28th anniversary of Hong Kong's return to China and the establishment of the People's Liberation Army in Hong Kong, as well as the 5th anniversary of the National Security Law [1] - The visit of the Shandong fleet is viewed as a morale booster, reinforcing the message of national defense and security while promoting a sense of patriotism among citizens [1]

Investment Rating - The report maintains a "Recommendation" rating for the communication industry, suggesting an expected increase in the industry index by more than 5% over the next 3-6 months compared to the benchmark index [28]. Core Viewpoints - The ongoing escalation of the India-Pakistan conflict highlights the importance of military and satellite sectors, with a recommendation to focus on these areas for potential investment opportunities [14][20]. - The communication industry has shown resilience, with a 4.96% increase in the past week, outperforming the Shanghai and Shenzhen 300 index by 2.95 percentage points [7][8]. - The report emphasizes the growing significance of national defense and military capabilities, particularly in the context of low-orbit satellites, which have gained attention during the recent conflict [20]. Industry Overview - The communication industry consists of 124 listed companies with a total market capitalization of approximately 45,863.87 billion and a circulating market value of about 20,038.81 billion [3]. - The industry has experienced a year-to-date decline of 3.21%, underperforming the Shanghai and Shenzhen 300 index, which has decreased by 2.26% [7]. Stock Performance - The top five performing stocks in the communication sector for the week include Jialitu (+27.01%), Youfang Technology (+23.40%), and Xinyi Technology (+21.63%) [11]. - Conversely, the stocks with the largest declines include Aojie Technology-U (-12.69%) and Shengke Communication-U (-6.81%) [11]. Investment Recommendations - Key recommendations include major operators such as China Mobile, China Telecom, and China Unicom [21]. - For optical modules and related components, the report recommends Xinyi Technology, Tianfu Communication, and Zhongji Xuchuang, while suggesting attention to Yuanjie Technology and Shijia Photon [21]. - In the military/satellite communication sector, the report highlights Haige Communication, Shanghai Hanhua, and Qiyi Er as key investment opportunities [21].