Core Viewpoint - The report from CITIC Securities highlights several key themes expected to perform actively by 2026, including AI new materials, humanoid robots, satellite internet, military new materials, nuclear fusion, hydrogen energy, and SAF (Sustainable Aviation Fuel). The firm emphasizes the importance of policy, events, and performance releases as catalysts for trading opportunities in high-growth sectors and quality tracks [1]. AI New Materials - The trading narrative for upstream materials in PCB (Printed Circuit Board) is driven by "AI computing demand → High-speed PCB/CCL shortage → High-end material price and volume increase → Equipment investment leading" [1]. - In advanced packaging materials, the dual drivers are "foreign advanced packaging expansion realization + domestic HBM (High Bandwidth Memory) promotion and local production line introduction," with a focus on overseas CoWoS/SoIC ramp-up and domestic HBM validation and volume increase [2]. - For semiconductor materials, the continuous push for self-control and the expansion of domestic storage manufacturers, along with HBM3 product progress, are expected to drive demand for upstream materials and equipment components [2]. Humanoid Robots - The period from Q4 2025 to H1 2026 is critical for humanoid robot materials, with trading rhythms focusing on "event certainty" (Tesla Gen3 finalization/mass production guidance) and "cost inflection points" [3]. - Key materials include rare earth magnetic materials, PEEK/CF-PEEK, and UHMWPE/PPS/LCP, with recommendations to prioritize high-certainty material leaders and companies with cost-reduction processes/patent advantages [3]. Satellite Internet - The development of satellite internet is constrained by rocket launch capabilities, with breakthroughs in domestic reusable rocket technology expected by Q4 2025 [4]. - The capital market's focus has shifted from early thematic trading to the acceleration of satellite constellations and the performance realization of related companies [4]. Nuclear Fusion - The upcoming increase in bidding for nuclear fusion projects is anticipated to exceed expectations, with total investment in domestic nuclear fusion devices projected to exceed 300 billion from 2025 to 2030 [5]. - The industry is expected to develop steadily through a three-step strategy of "experimental pile - engineering demonstration pile - commercial pile" [5]. Solid-State Batteries - The solid-state battery industry is expected to experience a multi-dimensional resonance of policy, technology, and industry in 2025, with significant developments anticipated in 2026 [6]. Wind Power - The domestic wind power installation is expected to maintain high prosperity due to the tilt of new energy investment towards wind power, with a construction peak anticipated from 2026 [7][8]. Hydrogen Energy - The hydrogen energy sector is witnessing accelerated application scenario expansion, supported by domestic and international policies aimed at promoting clean hydrogen applications and green fuel projects [9]. SAF (Sustainable Aviation Fuel) - The application of SAF is expected to grow rapidly, with a potential mandatory blending policy in China by 2026, and global SAF demand projected to reach 15.11 million tons by 2030 [10]. Military New Materials - The military new materials sector is poised to benefit from the new strategic cycle of national defense construction and military industry development, with three main investment lines: military trade growth, the "14th Five-Year Plan," and domestic substitution and supply chain security [11].

Group 1 - The company is one of the few that can produce industrial-grade blended oil that meets SAF (Sustainable Aviation Fuel) requirements [2] - The company primarily sells raw materials to SAF producers, who then further process them into SAF [2]

Group 1: Company Overview and SAF Production - In 2024, Pengyao completed the technical transformation for SAF and successfully produced 4,950 tons of bio-jet fuel, achieving an overall product yield of 82% with 46 indicators meeting international standards [2] - The company is continuously optimizing the SAF process to potentially increase yield in the future [2] - Pengyao operates on a light asset model, utilizing site leasing and equipment refurbishment, resulting in lower production costs compared to competitors using heavy asset investments [8] Group 2: Domestic SAF Policy Landscape - China officially launched SAF application pilot work in September 2024, marking a significant milestone in the aviation industry's green transition [2] - The first phase of the pilot (September to December 2024) involved 12 flights across four airports, validating SAF's applicability and operational safety on domestic routes [2] - The second phase starting in 2025 will expand the network of participating airlines and airports for broader SAF promotion [2] Group 3: International SAF Policy Landscape - The EU has set a target for carbon neutrality by 2050 and has introduced the "Fit for 55" package, aiming for a 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels [3][4] - The ReFuelEU plan mandates that by 2025, at least 2% of aviation fuel must be SAF, increasing to 6% by 2030, 20% by 2035, 34% by 2040, 42% by 2045, and 70% by 2050 [4] - The revised Energy Taxation Directive will impose taxes on traditional fossil fuels, gradually increasing to €10.75/GJ for transport fuels by 2033 [5] Group 4: Comparative Analysis of SAF Development - SAF development is still in its early stages globally, with major economies like the EU, the US, and China implementing supportive policies [6] - China's SAF policies are primarily encouragement-based, lacking specific blending ratio requirements or a clear development timeline [6] - The Chinese government has recognized SAF as a crucial part of the aviation decarbonization strategy, as indicated in various national plans [6] Group 5: Company Performance and Projects - In 2025, Pengyao secured several water project contracts, including a water supply project in Xinjiang with a daily capacity of 99,000 cubic meters and a BOT project in Henan with a design scale of 30,000 cubic meters per day [8] - The SEED water plant model combines renewable energy technology with prefabricated construction, enhancing efficiency and sustainability [8] - Revenue from new BOT projects will be recognized based on project implementation progress, with expected completion within approximately one year [8]

Group 1: Company Overview and SAF Production - The company completed the technical transformation for SAF in 2024, achieving a product yield of 82% and meeting 46 international standards [2] - In December 2024, the company signed a contract with China National Petroleum International to export 4,950 tons of bio-jet fuel to international markets [2] - The company continues to optimize the SAF production process, aiming to improve yield in the future [2] Group 2: Domestic SAF Policy Landscape - China officially launched SAF application pilot work in September 2024, marking a significant milestone in the aviation industry's green transition [3] - The first phase of the pilot (September to December 2024) involved 12 flights across four airports, validating SAF's applicability and operational safety [3] - The second phase starting in 2025 will expand the network of participating airlines and airports for SAF promotion [3] Group 3: International SAF Policy Landscape - The EU has set a target for carbon neutrality by 2050 and introduced the European Green Deal, which includes policies to support SAF development [4] - The ReFuelEU plan mandates that by 2025, at least 2% of aviation fuel must be SAF, increasing to 70% by 2050 [4] - The EU Emissions Trading System is undergoing reforms to enhance carbon reduction efforts, impacting the SAF industry [4] Group 4: Comparative Analysis of SAF Development - SAF is still in its early stages globally, with major economies like the EU, the US, and China issuing supportive policies [6] - China's SAF policies are primarily encouragement-based, lacking specific blending ratio requirements for fuel suppliers or airlines [6] - The Chinese government has indicated strong support for SAF as a key component of the aviation industry's decarbonization strategy [6] Group 5: Company Advantages and Market Position - The company operates a light asset model, utilizing site leasing and equipment refurbishment for SAF production, resulting in lower capital and operational costs [8] - The company's SAF products have been certified by ISSC-EU and ISCCCORSIA, confirming quality and market competitiveness [8] - The company has secured several new water treatment projects, indicating a robust business expansion strategy [8]

Global Economic Outlook - Citigroup economists predict that global economic growth will slow from 2.8% in 2024 to 2.3% in 2025 due to the impact of tariffs, with the full effects expected to manifest in the second half of this year [1] - Goldman Sachs forecasts that inflation caused by tariffs will likely not persist for long, as the U.S. economy is entering a weaker state compared to the inflationary periods of 2021 and 2022 [1] - John Hardy from Saxo Bank warns that the U.S. Treasury should monitor risks in the Japanese government bond market, as Japan's debt situation is becoming more severe [1] Japanese Yen and Bond Market - Mitsubishi UFJ analysts suggest that the depreciation of the yen may still have room to continue, despite recent declines in long-term Japanese government bond yields [2] - Analysts from Bank of America indicate that the Bank of Japan is unlikely to address the supply-demand imbalance in the long-term bond market, continuing to reduce bond purchases until March 2026 [3] - State Street Global Advisors describes the challenges in the Japanese bond market as "technical" rather than "structural," suggesting that these issues can be resolved through adjustments in issuance [4] Chinese Aviation and Energy Sector - China International Capital Corporation (CICC) reports that the significant drop in oil prices this year is expected to improve the cost structure for airlines, with a solid foundation for the aviation cycle to start [5] - CICC also highlights opportunities in the diesel generator sets and large-bore engines used in data centers, driven by high demand for AI infrastructure [6] Consumer Goods and Pet Industry - Huatai Securities emphasizes the potential for recovery in the consumer sector, particularly in the food and beverage industry, as consumption trends improve [7] - Huaxi Securities projects that China's pet industry could reach a market size of 478.7 billion yuan by 2030, with a compound annual growth rate (CAGR) of 6.9% from 2024 to 2030 [8] Investment Strategies in Materials and Energy - CITIC Securities outlines three investment themes in the materials sector, focusing on policy-driven themes, high certainty growth from industry prosperity, and innovation in products and technologies [9] - The same report suggests that the second half of 2025 will see a complex price trend in commodities due to U.S. tariff policies, recommending a focus on "hedging" and "supply disruptions" [10] Economic Projections - CITIC Securities anticipates a potential bull market for Chinese equity assets starting in the fourth quarter of 2025, driven by synchronized economic and policy cycles across major economies [11] - The firm also predicts that the economic landscape will exhibit characteristics of strong production, recovering investment, stable consumption, and resilient exports [12]