Macro Overview - The price indicators for November show a moderate recovery, with PPI's year-on-year decline expected to continue narrowing and CPI showing a slight rebound. The optimization of supply-demand dynamics is gradually becoming evident as companies exercise self-discipline in capacity expansion [2][3] - Overall consumption and investment remain relatively flat, but actual total demand appears more stable than surface macro data. Consumption is showing a differentiated trend, with some categories weakening due to subsidy reductions, while discretionary services like business travel and hotels are stabilizing [2][3] - Social financing and credit issuance are expected to increase slightly year-on-year, reflecting the impact of policy financial tools. The fiscal expenditure data for the fourth quarter may decline compared to the first half of the year due to last year's high base, allowing for policy space for a strong start in the first quarter of next year [2][3] Fixed Income Insights - In a consensus-driven environment, potential expectation gaps may arise regarding the Federal Reserve's balance sheet expansion, overseas inflation risks, and the U.S. credit environment. The article discusses these underpriced market directions and tail risks [3][4] - Asset allocation strategies should focus on high volatility environments, with an emphasis on improving odds in sectors like Hong Kong internet, pharmaceuticals, and cyclical domestic sectors [3][4] Transportation Sector Analysis - For 2026, three main lines of focus are recommended: 1. **Aviation**: Supply is expected to slow down further, with demand showing marginal improvement, leading to increased passenger load factors and ticket prices. The state-owned airlines are preferred due to their high win rates and odds [6][7] 2. **Oil Shipping**: Benefiting from OPEC+ production increases and geopolitical factors, oil shipping rates are expected to rise significantly. Preferred stocks include COSCO Shipping Energy and China Merchants Energy [6][7] 3. **Alpha Stocks**: Attractive valuations in industry leaders and companies with broad niche market potential are highlighted, such as ZTO Express and SF Express [6][7] Company-Specific Insights - **Zhonghui Group (382 HK, Buy)**: Reported FY25 revenue of 2.489 billion yuan, a year-on-year increase of 7.7%, with net profit of 514 million yuan, down 28.1% year-on-year. The company maintains a cash dividend rate of approximately 30%, reflecting its commitment to shareholder returns [7] - **China Education Group (1890 HK, Buy)**: Reported FY25 revenue of 1.872 billion yuan, a year-on-year increase of 10.6%, with net profit of 748 million yuan, down 9.6% year-on-year. The company declared a final dividend of 0.06 HKD per share, maintaining a cash dividend ratio of about 30% [7] Rating Changes - **Hayan Engineering (KAP)**: Target price adjusted to 58.91, rating changed from Buy to Accumulate [8] - **Aerospace Intelligence (300446)**: Initiated coverage with a Buy rating and a target price of 26.00 [8] - **BOSS Zhipin (2076)**: Initiated coverage with a Buy rating and a target price of 107.60 [8]