Core Viewpoint - The AI Fund Ping An Hong Kong Stock Connect Dividend Select Mixed Initiation A (021046) reported a profit of 22.83 million yuan for the first half of 2025, with a weighted average profit per fund share of 0.1462 yuan, and a net asset value growth rate of 13.5% during the period [3]. Group 1: Fund Performance - As of September 5, the fund's unit net value was 1.273 yuan, with a fund size of 305 million yuan [3][34]. - The fund's performance over the past three months showed a net value growth rate of 2.72%, ranking 588 out of 607 comparable funds; over the past six months, it was 9.54%, ranking 513 out of 607; and over the past year, it was 28.39%, ranking 490 out of 604 [6]. Group 2: Investment Strategy - The fund focuses on stable, high-dividend sectors, particularly in finance, energy, and communication services, which are the main holdings in its investment portfolio [4]. - The fund manager anticipates that despite uncertainties in US-China tariff negotiations, there are sufficient domestic policy reserves to mitigate risks, and the global allocation to Chinese stocks remains low, indicating potential for growth in the Hong Kong stock market [3]. Group 3: Valuation Metrics - As of June 30, 2025, the fund's weighted average price-to-earnings (P/E) ratio was approximately 1.91 times, significantly lower than the industry average of 33.74 times; the weighted average price-to-book (P/B) ratio was about 0.16 times, compared to the industry average of 2.47 times; and the weighted average price-to-sales (P/S) ratio was around 0.22 times, against an industry average of 2.07 times [11]. Group 4: Growth Metrics - For the first half of 2025, the weighted revenue growth rate of the stocks held by the fund was -0.04%, while the weighted net profit growth rate was 0.03%, and the weighted annualized return on equity was 0.09% [17]. Group 5: Fund Composition and Holdings - As of June 30, 2025, the fund had 9,148 holders, with a total of 237 million shares held; institutional investors accounted for 73.66% of the holdings, while individual investors made up 26.34% [36]. - The fund's top ten holdings included major companies such as China Everbright Bank, CITIC Bank, and China Mobile, indicating a high concentration in its stock holdings [43].

Core Viewpoint - China Ping An reported its 2025 interim results, showing a revenue of 500.76 billion RMB and an operating profit of 77.732 billion RMB, with a year-on-year growth of 3.7% in operating profit [1] Group 1: Financial Performance - The company plans to distribute an interim dividend of 0.95 RMB per share, reflecting a year-on-year increase of 2.2% [1] - As of June 30, 2025, the insurance fund investment portfolio exceeded 6.20 trillion RMB, marking an 8.2% growth since the beginning of the year [2] - The non-annualized comprehensive investment return rate for the insurance fund investment portfolio was 3.1%, up by 0.3 percentage points year-on-year [2] Group 2: Investment Strategy - The company has increased its stock holdings from 7.6% at the end of last year to 10.5% by the end of June 2025, in response to a favorable market environment and regulatory encouragement for long-term capital [1] - The management indicated that the current policy environment and market valuations are favorable for insurance capital investments, particularly in low-volatility, high-dividend stocks [1] - The company has initiated a pilot program for gold investments, having completed its first gold transaction in March 2025, aiming to diversify its investment portfolio and hedge risks [1] Group 3: Profit Analysis - The operating profit increased, but the net profit showed a decline, attributed to three key factors, two of which were one-time events [2] - The first factor was a 3.4 billion RMB impairment from the consolidation of Ping An Good Doctor, which impacted growth by 4.6 percentage points [2] - The second factor involved the group's investment performance over the past year, which was also discussed during the earnings call [2]

Core Viewpoint - The company's 2Q25 financial results met market expectations, with revenue and operating profit showing positive growth, while core net profit experienced a decline due to previous government subsidies impacting year-over-year comparisons [1][2]. Financial Performance - 2Q25 revenue reached $6.833 billion, representing a year-over-year increase of 11.8% - Operating profit for 2Q25 was $661 million, up 3.4% year-over-year - Core net profit attributable to shareholders, excluding biological asset value changes, was $361 million, down 8.1% year-over-year; adjusting for a $87 million government subsidy in 2Q24, the core net profit would have increased by 18% year-over-year [1]. Development Trends China Region - The company anticipates a year-over-year increase in meat product sales for 2Q25, with significant growth in emerging channels - Sales growth is expected to improve quarter by quarter in the second half of the year, with slight increases in both annual sales and profit per ton - The company plans to increase slaughter volume and expand customer and outlet coverage, although profit margins may be pressured due to increased competition and market investments [1]. North America Region - In 2Q25, meat product sales showed slight year-over-year growth, maintaining high profit per ton levels - The company expects optimistic conditions for its pig farming business in the second half of the year, driven by rising pig prices and low feed costs - The subsidiary Smithfield has raised its full-year operating profit guidance for pig farming to between $0-100 million [1]. Profit Forecast and Valuation - The company maintains its net profit forecasts for 2025 and 2026, with the current stock price corresponding to 8.5 and 8.2 times the P/E ratios for 2025 and 2026, respectively - The target price has been raised by approximately 11% to HKD 9.5 per share, reflecting an upside potential of about 13.6% from the current stock price [2].

Economic Data Release - China will release several important economic data this week, including June CPI, June PPI, July foreign exchange reserves, and July social financing data [1] - The U.S. "reciprocal tariffs" suspension period is about to end, and the Federal Reserve will publish the minutes of its monetary policy meeting [1] Stock Market Developments - This week, a total of 50 stocks will have their lock-up shares released, with a total market value of approximately 37.619 billion yuan. The top three stocks by market value of released shares are Lingyun Guang (5.952 billion yuan), Haohua Technology (4.263 billion yuan), and Weike Technology (3.636 billion yuan) [2] Regulatory Changes - The People's Bank of China is seeking public opinion on the draft business rules for the Cross-Border Interbank Payment System (CIPS), which includes detailed processes for account management, funding, and settlement [4] - The Ministry of Finance has announced measures regarding government procurement of medical devices imported from the EU, requiring that non-EU companies' products must not exceed 50% of the total contract amount for certain procurement projects [5] Aviation Industry Initiatives - The Civil Aviation Administration of China has established a leadership group for general aviation and low-altitude economy, focusing on the development and regulation of these sectors [6] Real Estate Market Stability - The Ministry of Housing and Urban-Rural Development emphasizes the importance of stabilizing the real estate market and encourages local governments to implement precise policies to promote healthy development [7] Electricity Demand Surge - China's electricity load reached a historical high of 1.465 billion kilowatts on July 4, driven by high temperatures, marking an increase of approximately 200 million kilowatts from the end of June and nearly 150 million kilowatts year-on-year [8] Oil Production Increase - Eight major oil-producing countries have decided to increase production by 548,000 barrels per day in August, adjusting their output based on current market conditions [9] New Tariffs Announcement - U.S. President Trump announced that new tariffs will likely be implemented starting August 1, with rates potentially reaching up to 70% [10] Stock Market Outlook - The market is expected to experience a strong oscillation, with a focus on industry logic as half-year reports approach. High-dividend blue-chip companies are anticipated to gain market favor [14] - The market is cautiously optimistic for July, with expectations for steady upward movement in the index amid various influencing factors [14][15]