Group 1: Inventory Cycle Construction - The inventory cycle is initially a macro framework divided into four quadrants based on PPI year-on-year and finished goods inventory year-on-year, assessing the macroeconomic phase of "recession-recovery-prosperity-overheating" [1][14] - The framework is expanded to include "price, inventory, demand, and supply," with corresponding financial indicators such as inventory year-on-year or inventory-to-sales ratio for inventory, operating revenue year-on-year for demand, and fixed asset turnover for supply [1][14] Group 2: A-Share Profit Expectations - The current inventory cycle for all A non-financial sectors shows signs of bottom stabilization, with operating revenue growth accelerating and inventory indicators like inventory year-on-year growth and inventory-to-sales ratio rebounding, indicating a shift from passive destocking to active restocking [2][17] - The fixed asset turnover continues to decline, reflecting an ongoing supply surplus that needs improvement, while capacity expansion indicators are at a low point, with capital expenditure growth marginally recovering [2][17] Group 3: Industry Inventory Cycle Quadrants - Industries are categorized into four stages: "overcapacity," "supply clearance," "price boom," and "volume boom," using financial indicators to assess their positions [4][25] - The "overcapacity" stage is characterized by low revenue growth and high inventory levels, while the "supply clearance" stage shows some demand recovery but remains weak [5][25] - The "price boom" stage indicates improving demand and tight short-term supply, whereas the "volume boom" stage reflects high demand growth and increasing production capacity [5][26]