Key Insights - The report highlights the upcoming launch of Huawei's foldable PC and Apple's foldable iPhone, which are expected to drive rapid development in materials for foldable devices [5] - The non-bank financial sector is seeing regulatory changes aimed at enhancing support for technology enterprises, particularly in mergers and acquisitions [8] - The report discusses the performance of various companies, including their revenue growth and profitability, indicating a positive outlook for several sectors [11][13][16] Industry Commentary - The chemical raw materials sector is experiencing growth due to the anticipated demand for materials used in foldable devices, with a notable increase in the new materials index [5] - The non-bank financial sector is undergoing reforms to improve the service capabilities for technology companies, which is expected to enhance the overall market environment [8] - The textile and apparel industry is likely to benefit from Shanghai's new consumption stimulus plan, particularly in sportswear and jewelry [5] Company Analysis - The report provides insights into the financial performance of various companies, such as: - **Zhenyu Technology**: Achieved revenue of 6.20 billion yuan in 2024, with a net profit of -1.75 billion yuan, indicating a recovery in Q1 2025 with a 23.75% year-on-year revenue increase [9][11] - **Jinxi Axle**: Reported a revenue increase in high-speed train axles, supported by its state-owned enterprise background, which enhances its diversification efforts [16] - **Shanghai Hanxun**: Expected to exceed 150 million yuan in satellite business revenue in 2024, with a significant increase in satellite launches planned for 2025 [21] Financial Performance - Companies are showing varied financial results, with some experiencing significant growth: - **Artis**: Projected to create a second growth engine through large-scale storage, with steady production expansion in the U.S. [5] - **Zhenyu Technology**: Anticipates a recovery in profitability post-transformation, with a focus on human-shaped robots and eVTOL businesses [11] - **Jinxi Axle**: Reported a 33.23% increase in railway vehicle revenue, indicating strong market demand [19] Investment Recommendations - The report suggests focusing on companies that are well-positioned to benefit from emerging trends, such as foldable device materials and advancements in AI and IoT technologies [5][27] - Companies like **Guanghe Tong** are highlighted as leaders in AI IoT, with a strong product matrix and growth potential in smart modules [27] - The overall sentiment is positive for sectors that are adapting to technological advancements and regulatory changes, indicating potential investment opportunities [8][11]

Market Overview - The three major stock indices rose collectively, with the ChiNext Index showing strong performance, closing at 2065.39 points, up 0.83% [1] - The total trading volume in the Shanghai and Shenzhen markets was approximately 1214.6 billion yuan, similar to the previous day [1] - Sectors such as coal, banking, pharmaceuticals, and liquor saw gains, while sectors like chemical fiber, semiconductors, tourism, agriculture, and home appliances declined [1] Investment Opportunities - The foldable device market is expected to grow rapidly, with Huawei launching the world's largest foldable screen laptop, MateBookFold [2] - IDC forecasts that China's foldable smartphone market will reach around 10 million units by 2025, representing an 8.3% year-on-year growth [2] - The demand for foldable devices is anticipated to drive the need for related upstream materials [2] Banking Sector - The one-year and five-year LPR were adjusted to 3% and 3.5%, respectively, down by 10 basis points [3] - The overall impact of the LPR and deposit rate cuts is expected to boost the net interest margin of listed banks by 3.1 basis points [3] - The banking sector is projected to maintain a stable fundamental outlook, with high dividend yield attractiveness under the current interest rate environment [3] AI Industry - The development of Agent products is expected to drive the AI industry chain upward, with significant products emerging in the C-end market [4] - There is a divergence in development strategies between North American and Chinese companies regarding Agent applications [4] Automotive Sector - Huawei's new product orders have shown strong performance, with the M8 model achieving 80,000 pre-orders in 34 days, setting a record for the brand [5] - The upcoming launch of the ZunJie S800 on May 30 is expected to further enhance Huawei's brand strength [5][6] Policy Support - Eight government departments have issued measures to support small and micro enterprises in listing on the New Third Board [7] - Shanghai's government has launched a consumption promotion plan, including incentives for vehicle and home appliance upgrades [8] Technological Advancements - A breakthrough in solid-state battery technology has been reported, revealing mechanisms behind short-circuit transitions in inorganic solid electrolytes [11] - The successful implantation of a closed-loop spinal nerve interface marks a significant advancement in the field of neural interfaces [10] Robotics - Tesla released a new video showcasing its humanoid robot performing various tasks, indicating advancements in robotics technology [9]

Investment Rating - The report maintains a rating of "B" for the new materials sector, indicating a positive outlook for the industry [2]. Core Insights - The new materials sector has shown an upward trend, with the new materials index increasing by 0.57%, although it underperformed compared to the ChiNext index, which rose by 0.81% [2]. - The report highlights the anticipated growth in the foldable device market, driven by the upcoming launches of Huawei's foldable PC and Apple's foldable iPhone, which are expected to significantly boost demand for upstream optical adhesive materials [5]. - The report projects that the shipment volume of foldable smartphones in China will reach approximately 10 million units in 2025, representing a year-on-year growth of 8.3%, with a compound annual growth rate of 10.6% expected by 2028 [5]. Market Performance - The report notes that the synthetic biology index increased by 2.35%, while semiconductor materials and electronic chemicals saw declines of 3.52% and 3.58%, respectively. In contrast, biodegradable plastics rose by 2.12% [17]. - The overall performance of the basic chemicals and new materials sectors has been positive, with the Shanghai Composite Index rising by 0.76% and the CSI 300 increasing by 1.12% during the reporting period [13]. Industry Price Tracking - The report provides a detailed price tracking of various chemical products, including amino acids, biodegradable plastics, industrial gases, and vitamins, indicating stable prices for most categories with minor fluctuations [3]. - For instance, the price of valine remains unchanged at 13,450 RMB/ton, while the price of vitamin E decreased by 1.82% to 108,000 RMB/ton [3]. Investment Recommendations - The report suggests focusing on domestic optical adhesive manufacturers like Stik and upstream monomer suppliers such as Dinglong Co., which are expected to benefit from the growth in the foldable device market [5].

Investment Rating - The report maintains a rating of "B" for the new materials sector, indicating a positive outlook for the industry [2]. Core Insights - The new materials sector has shown an upward trend, with the new materials index increasing by 0.57%, although it underperformed compared to the ChiNext index, which rose by 0.81% [2]. - The report highlights the anticipated growth in the foldable device market, driven by the upcoming launches of Huawei's foldable PC and Apple's foldable iPhone, which are expected to significantly boost demand for upstream optical adhesive materials [5]. - The report cites IDC's forecast that China's foldable smartphone market will see shipments reach approximately 10 million units in 2025, representing a year-on-year growth of 8.3% and a compound annual growth rate (CAGR) of 10.6% from 2025 to 2028 [5]. Summary by Sections 1. Market Performance - The new materials sector experienced a rise this week, with the synthetic biology index up by 2.35%, while semiconductor materials and electronic chemicals saw declines of 3.52% and 3.58%, respectively [2][16]. - The overall performance of the basic chemicals and new materials sectors was positive, with the Shanghai Composite Index increasing by 0.76% and the ChiNext Index by 1.38% during the same period [12]. 2. Industry Chain Data Tracking - Prices for amino acids remained stable, with valine at 13,450 CNY/ton and arginine at 25,500 CNY/ton, while vitamin E saw a decrease of 1.82% to 108,000 CNY/ton [3]. - The report tracks the prices of biodegradable plastics, with PLA (injection grade) priced at 17,500 CNY/ton, remaining unchanged [3]. 3. Industry News - The report notes the successful holding of the semi-marathon for humanoid robots, indicating a growing interest in lightweight PEEK materials, which are expected to see rapid development [2]. - The report emphasizes the potential benefits for upstream companies producing optical adhesive materials as the foldable device market expands [5]. 4. Investment Recommendations - The report suggests focusing on domestic optical adhesive manufacturers like Stik and upstream monomer suppliers such as Dinglong Co., which are expected to benefit from the growth in foldable device shipments [5].