Macro and Strategy - The report highlights a significant increase in government debt financing, with a net financing of 200.9 billion in week 33 and 560.7 billion in week 34, totaling 9.8 trillion, exceeding last year's figure by 4.6 trillion [8][9] - The broad deficit has reached 8.0 trillion, with a progress rate of 67.2% as of week 33 [8] Company and Industry Analysis Hong Kong Exchanges and Clearing (00388.HK) - The company reported a revenue of 14.076 billion HKD for H1 2025, a year-on-year increase of 32.5%, and a net profit of 8.519 billion HKD, up 39.1% [14][15] - The average daily trading volume (ADT) for H1 2025 was 222.8 billion HKD, reflecting a growth of 122.1% [15] - The EBITDA margin reached 77.7%, indicating significant operational efficiency [16] AIA Group (01299.HK) - AIA achieved a post-tax operating profit of 3.609 billion USD for H1 2025, marking a 12% increase per share [18][19] - The new business value reached 2.838 billion USD, a 14% increase year-on-year, with notable growth in markets like Thailand [19][20] - The company returned 3.71 billion USD to shareholders through dividends and share buybacks, with a dividend per share of 0.49 HKD, up 10% [20] WanGuo Gold Group (03939.HK) - The company reported a revenue of approximately 1.24 billion CNY for H1 2025, a 33.7% increase, and a net profit of about 601 million CNY, up 136.3% [21][22] - The gold production from the Solomon Islands increased by 29.7%, driven by improved processing and recovery rates [22] NEXTEV (01316.HK) - NEXTEV's revenue for H1 2025 was 2.242 billion USD, a 7% increase, with a net profit of 63 million USD, reflecting a 304% year-on-year growth [24][25] - The company is focusing on electric power steering systems, with a projected market growth from 38 billion CNY to 48 billion CNY by 2028 [25][26] Qifeng Co., Ltd. (603997.SH) - The company reported a total revenue of 10.52 billion CNY for H1 2025, a decrease of 4.39%, but a net profit increase of 189.51% [27][28] - The seating business saw a doubling in revenue, indicating strong demand and operational improvements [28][29] Yanjinpuzi (002847.SZ) - The company achieved a total revenue of 2.94 billion CNY for H1 2025, a 19.6% increase, with a net profit of 370 million CNY, up 16.7% [30][31] - The konjac product line saw a revenue increase of 155.1%, significantly contributing to overall growth [31][32] Rabbit Baby (002043.SZ) - The company reported a revenue of 3.63 billion CNY for H1 2025, a decrease of 7.01%, but a net profit increase of 9.71% [35][36] - The company continues to optimize its product structure and maintain a high dividend payout ratio of 86.7% [36][37] Beixin Building Materials (000786.SZ) - The company achieved a revenue of 13.56 billion CNY for H1 2025, a slight decrease of 0.29%, with a net profit of 1.93 billion CNY, down 12.8% [38][39]

Macro and Strategy - The fiscal data for July 2025 shows a marginal recovery in general public revenue growth, with a year-on-year increase of 2.6% compared to a previous decline of 0.3% [11] - Tax revenue also improved, with a year-on-year growth of 5% in July, driven primarily by corporate income tax, which increased by 6.4% [11] - General public expenditure growth also rebounded, with a year-on-year increase of 3% in July, compared to a previous growth of 0.4% [11][12] - The overall fiscal expenditure growth rate slowed down to 12.1% in July, down from 17.6% previously, indicating a structural divergence in economic data [12] Industry and Company Pharmaceutical and Biotechnology - The pharmaceutical sector underperformed the overall market, with a 3.08% increase in the biopharmaceutical sector, while the chemical pharmaceutical sector led with a 3.80% increase [16] - The FDA approved semaglutide for treating metabolic dysfunction-associated steatotic liver disease (MASH), which is expected to increase drug usage and testing demand [17] - MASH has a prevalence rate of 1.5-6.5%, with over 250 million global patients, indicating significant market potential [17] Textile and Apparel - The textile and apparel sector's performance has been consistent with the overall market, with a 4.2% increase in textile manufacturing compared to a 3.4% increase in branded apparel [19] - Retail sales of clothing in July grew by 1.8% year-on-year, showing a slight slowdown compared to previous months [20] - E-commerce sales in July showed a significant rebound, particularly in the sports and outdoor segments, with growth rates of 11% and 26% respectively [20] Energy - Shenhua Co. reported a 17% decline in net profit for H1 2025, despite a 12.1% increase in revenue, primarily due to falling coal prices [24] - The company’s coal production cost decreased to 682 RMB/ton in H1 2025, down from 862 RMB/ton in 2024, but the selling price fell more significantly [24] - The electrolytic aluminum segment maintained stable profitability, with a production cost of 12,283 RMB/ton and a gross profit of 3,986 RMB/ton [25] New Energy - The new energy segment of the company saw a 4% increase in profit in H1 2025, with ongoing projects in the U.S. progressing as planned [28] - The company’s solar module production capacity in the U.S. is expected to reach 3GW, with ongoing construction of additional projects [28] Food and Beverage - The company "Little Garden" reported a 36% increase in net profit for H1 2025, driven by a 6.5% increase in revenue [29] - The company plans to accelerate store openings in the second half of the year, with a target of 130 new stores for the year [31] - The overall gross margin improved to 70.5% in H1 2025, attributed to enhanced supply chain efficiencies [30]

Group 1 - The report identifies the conditions necessary for a "slow bull market," emphasizing that a moderate increase in both volume and price is essential rather than high growth and low inflation as an ideal combination [4] - The common characteristics of slow bull markets in the US, India, and Japan include long holding periods for residents' stock assets and low turnover rates, with companies injecting funds into the market through stable dividends and buybacks exceeding IPOs and other financing methods [4][5] - The US stock market has shown a significant slow bull trend since 2013, with the S&P 500 index rising from approximately 1400 points in 2000 to 6380 points by August 2025, reflecting an annualized growth rate of about 8% [5] Group 2 - The Indian Sensex index has demonstrated extreme slow bull characteristics, starting from 3000 points in 2002 and reaching 80687 points by August 2025, resulting in a cumulative increase of 26 times and an annualized return of 15% [6] - Japan's Nikkei 225 index has also experienced a slow bull market since 2014, rising from 16000 points to 42050 points by August 2025, with an 11-year increase of 163% [6] - Economic growth rates during the slow bull periods show that India had the highest real GDP growth at 6.91% and nominal GDP growth at 12.39%, while the US and Japan had lower growth rates, indicating that high economic growth is not the sole necessary condition for a long bull market [8][10] Group 3 - The report highlights that inflation levels during slow bull markets vary, with India experiencing higher inflation rates compared to the US and Japan, suggesting that moderate inflation can be beneficial for stock markets [14] - The transition from a financing market to an investment market is crucial for the prosperity of long-term slow bull markets, with earnings growth and dividend income becoming increasingly significant over time [21][22] - The report emphasizes the importance of residents' asset allocation preferences and willingness to invest in stocks, noting that these factors are closely linked to the performance of stock markets in developed economies like the US and Japan [15][18]