Report's Investment Rating for the Industry - No information regarding the industry investment rating is provided in the report. Core Views - The bond market sentiment was generally positive last week due to factors such as the central bank's resumption of treasury bond trading, loose cross - month funds, the stock market decline after the Sino - US summit, and weak PMI data. The 10 - year treasury bond yield closed at 1.80% on Friday, down 5.32bp from the previous week [1][7][8]. - The equity market rose first and then fell last week. With positive factors like Sino - US trade negotiations, the release of the "15th Five - Year Plan" draft, and the Fed's interest - rate cut expectation, the A - share market was strong in the first half of the week, with the Shanghai Composite Index hitting a new high above 4000. However, it declined in the second half as positive news materialized and the demand for profit - taking increased. The technology hardware sector, which had a high increase previously, led the decline [1][7]. - Most convertible bond issues rose last week. The CSI Convertible Bond Index increased by 0.79% for the whole week, the median price rose by 0.63%, and the calculated arithmetic average parity increased by 0.64%. The overall conversion premium rate increased by 0.10% compared with the previous week [1][8]. - Convertible bonds are still restricted by high prices, high premiums, and frequent redemptions. The overall opportunity is hard to find as the median convertible bond price remains above 130 yuan. For different types of convertible bonds, there are different challenges, such as limited capacity and return space for low - price strategies in debt - biased convertible bonds, over - anticipation of underlying stock price increases in balanced convertible bonds, and the risk of double - killing of valuation and parity in high - quality "core stocks" of non - redeemable equity - biased convertible bonds during market fluctuations [2][17]. - Given the strong bullish atmosphere in the equity market, it is difficult to make decisions on increasing or decreasing positions. The overall assets should be treated with a trading - band mindset. When selecting bonds, it is advisable to allocate evenly across industries. For balanced convertible bonds, choose those with high - volatility underlying stocks that can quickly digest the high convertible bond premiums, and for equity - biased convertible bonds, focus on low - premium targets [2][17]. Summary by Relevant Catalogs Market Trends (2025/10/27 - 2025/10/31) Stock Market - The equity market showed a volatile trend. The Shanghai Composite Index had different daily changes: up 1.18% on Monday, down 0.22% on Tuesday, up 0.7% on Wednesday, down 0.73% on Thursday, and down 0.81% on Friday. Different sectors had varying performances each day [7]. - Most Shenwan primary industries rose last week. The top - performing industries were power equipment (4.29%), non - ferrous metals (2.56%), steel (2.55%), basic chemicals (2.50%), and comprehensive (2.26%), while communication (-3.59%), beauty care (-2.21%), banking (-2.16%), and electronics (-1.65%) performed poorly [8]. Bond Market - The bond market sentiment was good. The 10 - year treasury bond yield closed at 1.80% on Friday, down 5.32bp from the previous week, influenced by factors such as the central bank's actions, fund conditions, stock market movements, and PMI data [1][7][8]. Convertible Bond Market - Most convertible bond issues rose. The CSI Convertible Bond Index increased by 0.79% for the whole week, the median price rose by 0.63%, and the arithmetic average parity increased by 0.64%. The overall conversion premium rate increased by 0.10% compared with the previous week. The arithmetic average conversion premium rates of convertible bonds in different parity ranges also changed [1][8]. - In terms of industries, most convertible bond industries rose. The top - performing industries were steel (+3.04%), machinery and equipment (+2.15%), national defense and military industry (+1.75%), and automobile (+1.16%), while communication (-3.18%), beauty care (-3.17%), building materials (-0.75%), and media (-0.48%) performed poorly [11]. - At the individual bond level, Titan (solid - state battery concept), Dazhong (lithium mine), Zhenhua (chromium salt), Zhonghuan Zhuan 2 (innovative drugs), and Yunji (belt conveyor) convertible bonds led the increase, while Tongguang (optical fiber cable), Shuiyang (skin care products), Jingda (controllable nuclear fusion), Huayi (semiconductor clean room), and Wujin (stainless steel) convertible bonds led the decline [1][12]. - The total trading volume of the convertible bond market last week was 310.731 billion yuan, with an average daily trading volume of 62.146 billion yuan, which was higher than the previous week [15]. Valuation Overview - As of October 31, 2025, for equity - biased convertible bonds, the average conversion premium rates in different parity intervals were at different percentile levels since 2010 and 2021. For debt - biased convertible bonds, the average YTM of those with a parity below 70 yuan was -5.3%, at the 0%/1% percentile levels since 2010/2021. The average implied volatility of all convertible bonds was 40.84%, and the difference between the convertible bond implied volatility and the long - term actual volatility of the underlying stocks was -1.34%, both at certain percentile levels [18]. Primary Market Tracking Last Week (2025/10/27 - 2025/10/31) - Qizhong Convertible Bond announced its issuance, and Jin 25 and Funeng Convertible Bonds were listed. Qizhong Convertible Bond has a scale of 850 million yuan, Jin 25 Convertible Bond has a scale of 2 billion yuan, and Funeng Convertible Bond has a scale of 3.802 billion yuan. Each bond's underlying company has its own business characteristics, financial performance, and planned use of funds after deducting issuance fees [26][27][29]. - One company (Ruikeda) got new approval for registration, one company (Shuangle Co., Ltd.) passed the listing committee review, 13 companies' applications were accepted by the exchange, one company (Mankun Technology) passed the shareholders' meeting, and 4 companies announced board proposals [31]. Future Week (2025/11/3 - 2025/11/7) - As of the announcement on October 31, there is no convertible bond announced for issuance, and Jinlang Zhuan 02 is expected to be listed. It has a scale of 1.677 billion yuan, and its underlying company has specific business operations, financial data, and planned use of funds [30]. - Currently, there are 94 convertible bonds waiting to be issued, with a total scale of 143.51 billion yuan. Among them, 5 have been approved for registration with a total scale of 4.15 billion yuan, and 6 have passed the listing committee review with a total scale of 3.38 billion yuan [31].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected stock price increase of over 15% relative to the benchmark index within the next 12 months [4][10]. Core Insights - The company achieved a revenue of 9.933 billion yuan in the first three quarters of 2025, representing a year-on-year growth of 42.50%, and a net profit attributable to shareholders of 1.753 billion yuan, up 60.37% year-on-year [1]. - The mining service segment's revenue for the first three quarters was 5.26 billion yuan, a 7.92% increase year-on-year, although gross profit decreased by 13.93% due to various factors including project transitions and operational disruptions [2]. - Copper production continued to rise, with a total output of 64,000 tons in the first three quarters of 2025, a 101% increase year-on-year, while sales reached 68,000 tons, up 123% year-on-year [3]. - The report highlights the dual growth drivers of the mining service and resource segments, with expectations for continued strong performance in both areas [4]. Summary by Sections Financial Performance - For Q3 2025, the company reported a revenue of 3.617 billion yuan, a 34.07% increase year-on-year, and a net profit of 642 million yuan, reflecting a 33.68% year-on-year growth [1]. - The mining service segment's gross profit showed a gradual improvement over the quarters, with figures of 346 million, 421 million, and 429 million yuan for the first three quarters of 2025 [2]. Production and Sales - Copper production in Q3 2025 was 24,600 tons, a 32% increase year-on-year and a 12% increase quarter-on-quarter, while sales were 24,300 tons, a 35% increase year-on-year but a slight decrease of 3% quarter-on-quarter [3]. Future Outlook - The company is expected to see continued growth in both the mining service and resource segments, with new projects and expansions contributing to revenue increases [4]. - Profit forecasts for 2025-2027 project net profits of 2.342 billion, 2.745 billion, and 3.279 billion yuan, respectively, with corresponding PE ratios of 18, 15, and 13 [4][5].

Group 1: Macro and Strategy Insights - The report discusses the historical evolution of world currencies, emphasizing that trade volume is fundamental for a currency to become a global unit of account, as seen with the Spanish dollar and British pound [10][11][12] - It highlights the importance of financial innovation in currency transitions, such as the establishment of the Amsterdam Bank's clearing system that facilitated the rise of the Dutch florin [10][11] - The report identifies three core rules governing currency changes: trade as a foundation, financial innovation as a core driver, and the critical role of debt and military power in maintaining currency credibility [12] Group 2: Industry and Company Analysis - The pharmaceutical sector is experiencing a significant milestone with Grail's release of the Pathfinder 2 data for multi-cancer early detection, showing a positive predictive value of 61.6%, a substantial improvement from previous studies [20] - The media and internet sector is witnessing a surge in AI video generation technology, with notable successes such as the film "Escape from Duckkov" achieving over one million sales in its first week [21][22] - The public utility and environmental sectors report a 4.6% year-on-year increase in total electricity consumption, with significant growth in renewable energy sources [26][27] - The white wine industry is entering a potential investment phase, with current low valuations and positive supply-demand dynamics, drawing parallels to previous market cycles [28][29][30] - Ningbo Bank shows a steady improvement in asset quality, with a 16.6% year-on-year growth in total assets and a net profit increase of 8.4% in the first three quarters of 2025 [34][35]

Core Viewpoint - The company has released its third-quarter report for 2025, highlighting its financial performance and operational changes, particularly in the mining services and resource development sectors [13][12]. Financial Data - The financial report is unaudited and covers the period from the beginning to the end of the third quarter [3][10]. - The company has issued a total of 1,000,000 convertible bonds with a total value of 1 billion yuan, of which 504,069,000 yuan has been converted into shares, representing 6.92% of the total shares before conversion [7]. Operational Performance - The company's revenue and gross profit are primarily derived from mining services and resource development, with specific contributions detailed in the report [8]. - The gross profit from mining services has decreased due to several factors, including the transition of the Lubambe Copper Mine to internal management, the acquisition of Terra Mining, and operational disruptions caused by safety concerns at the Kamoa-Kakula Copper Mine [9]. Shareholder Information - The report includes details on the number of shareholders and the status of major shareholders, indicating that there are no significant changes in the top ten shareholders due to the lending and returning of shares [5][7]. Board Meeting - The board meeting held on October 27, 2025, approved the third-quarter report unanimously, confirming compliance with relevant regulations [13][14].

Core Viewpoint - Guangdong Hongda Holding Group Co., Ltd. held an online performance briefing on September 19, discussing its mining service business, order status, military industry transformation, acquisition progress, and business synergy [1]. Group 1: Mining Service Business - The mining service segment has seen a steady increase in new orders, with over 35 billion yuan in hand orders as of the first half of the year, maintaining a stable service mineral structure [1]. - The company focuses on key regional markets and accelerates international expansion, emphasizing a "big clients, big projects" strategy, with major clients including Zijin Mining, China Energy Group, and Ansteel Mining [1]. - New mining service orders exceeded 10 billion yuan this year [1]. Group 2: Military Industry Transformation - The company is committed to transforming towards the military industry, investing heavily in high-end intelligent weapon systems and related supply chain layouts [1]. - The defense equipment product layout includes high-end defense equipment and core supporting products [1]. Group 3: Acquisition Progress - The acquisition of Changzhilin was priced considering multiple factors and aligns with the company's military transformation strategy, enhancing the industrial chain layout [1]. - The company is actively promoting the subsequent equity transfer related to the acquisition [1]. - The acquisition of Xuefeng Technology was also priced based on various factors, facilitating industrial chain synergy and seizing opportunities in Xinjiang's mineral resource development [1]. Group 4: Other Business Developments - The company expressed readiness to participate in the Yaxia Hydropower Station and Xinjiang Railway blasting business, although participation remains uncertain [2]. - The Hongda Satellite Wuxi project currently operates 10 satellites successfully, with future collaboration planned with the defense equipment business [2]. - The company held an investor open day on September 17 in Beijing, aiming to continuously optimize investor relations management [2].

Core Viewpoint - The report highlights the strong growth in copper production and sales for Jinchengxin (603979), with a positive outlook for future growth, leading to a "buy" rating for the company [1][7]. Financial Performance - In H1 2025, Jinchengxin achieved operating revenue of 6.316 billion yuan, a year-on-year increase of 47.82% - The net profit attributable to shareholders was 1.111 billion yuan, up 81.29% year-on-year - The net profit after deducting non-recurring gains and losses was 1.088 billion yuan, an increase of 78.51% year-on-year - The net cash flow from operating activities was 1.726 billion yuan, a significant increase of 255.08% year-on-year [2]. Mining Services - The mining services segment saw a revenue of 3.32 billion yuan in H1 2025, a slight increase of 0.57% year-on-year, with a gross margin of 23.10%, down 4.98 percentage points - Q1 revenue was 1.5 billion yuan, down 3.29% year-on-year, while Q2 revenue improved to 1.82 billion yuan, up 3.98% year-on-year - The decline in Q1 revenue was attributed to the transition of Lubambe Copper Mine's operations to internal management, reducing mining service income [3]. Copper and Phosphate Resource Development - The copper and phosphate resource development segment reported revenue of 2.91 billion yuan in H1 2025, a remarkable increase of 238.03% year-on-year, with a gross margin of 47.68%, up 4.91 percentage points - Copper production reached 39,400 tons, a year-on-year increase of 198.52%, while copper sales were 43,900 tons, up 247.65% - Phosphate rock production was 174,000 tons, up 6.48% year-on-year, with sales of 169,000 tons, a slight increase of 0.96% [4]. Incremental Projects - The company has invested approximately 54.89 million USD in the ongoing technical transformation of the Lubambe Copper Mine, which has a designed capacity of 2.5 million tons per year - Additionally, the company plans to invest 75.13 million USD in the development of the Lonshi Copper Mine East Zone, with a designed mining capacity of 2.5 to 3.5 million tons per year and a construction period of 4.5 years [5]. Profit Forecast - The company forecasts operating revenues of 12.76 billion yuan, 14.09 billion yuan, and 15.39 billion yuan for 2025, 2026, and 2027 respectively - The net profits attributable to shareholders are projected to be 2.245 billion yuan, 2.681 billion yuan, and 3.044 billion yuan for the same years - The current stock price corresponds to price-to-earnings ratios of 18.2, 15.2, and 13.4 times for 2025, 2026, and 2027 respectively [6].

Core Insights - QFII has significantly increased its holdings in various stocks, with a total of 850 stocks showing QFII presence, amounting to 4.243 billion shares and a market value of 61.768 billion yuan as of August 28 [1][2] - The electronics sector leads QFII holdings with a market value of 14.646 billion yuan, followed by machinery and non-ferrous metals, each exceeding 5 billion yuan [1] - Five stocks have QFII holdings exceeding 1 billion yuan, with Shengyi Technology leading at 9.55 billion yuan, despite a decrease in QFII shares [2][4] QFII Holdings Overview - QFII has newly entered 471 stocks and increased holdings in 217 stocks during the second quarter, with 33 stocks having a market value exceeding 1 billion yuan [4] - Jianghuai Automobile has the highest QFII holding at 675 million yuan, with UBS Group entering the stock [4] - Stocks like *ST Huike and Haichen Pharmaceutical saw their QFII holdings double, with *ST Huike's holdings increasing over 37 times [6] Joint Holdings with Social Security Fund - A total of 31 stocks are held by both QFII and social security funds, with 13 stocks having a combined holding value exceeding 1 billion yuan [8][9] - Jin Chengxin and Juxing Technology are notable examples, with combined holdings exceeding 2 billion yuan [9] - Jin Chengxin reported a 47.82% increase in revenue, with overseas business accounting for 78.53% of its income [9]

Core Viewpoint - Jin Chengxin (603979.SH) reported significant growth in operating performance for the first half of 2025, with revenue exceeding 6.3 billion yuan and net profit surpassing 1.1 billion yuan, marking historical highs driven by increased production and sales prices in mining resource development [1][2]. Financial Performance - In the first half of 2025, Jin Chengxin achieved operating revenue of 6.316 billion yuan, a year-on-year increase of 47.82%, and a net profit attributable to shareholders of 1.111 billion yuan, up 81.29% [2]. - The company's gross profit margin rose to 34.37%, an increase of 3.82 percentage points compared to the previous year, while the net profit margin reached 17.43%, up 2.98 percentage points [3]. - Operating cash flow net amount was 1.726 billion yuan, reflecting a substantial year-on-year growth of 255.08% [6]. Business Segments - Jin Chengxin's revenue from mining services and resource development for the first half of 2025 was 3.322 billion yuan and 2.912 billion yuan, respectively, with the latter showing a remarkable year-on-year growth of 276.83% [3]. - The decline in gross profit from mining services was attributed to the acquisition of Lubambe Copper Mine and the integration of Terra Mining, which affected revenue and profit margins [3]. Market Presence - The company has a strong international presence, with 78.61% of its revenue coming from overseas markets, amounting to 4.965 billion yuan [6]. - Jin Chengxin has been actively expanding its global footprint, particularly in Africa and Eurasia, with significant projects in Zambia and the Democratic Republic of the Congo [5]. Growth Trajectory - Since 2017, Jin Chengxin has consistently achieved double-digit growth in both revenue and net profit, indicating a robust growth trajectory [6]. - As of June 2025, the company's total assets reached 18.414 billion yuan, nearly doubling from 8.684 billion yuan at the end of 2021, while maintaining a stable financial operation with a debt ratio of 45.88% [6].

Core Viewpoint - The company Jin Cheng Xin (603979) has shown significant growth in its financial performance, with a strong increase in revenue and net profit, driven by its resource sector and mining service business potential, leading to a "buy" rating from analysts [1][2]. Financial Performance - In the first half of 2025, the company achieved a revenue of 6.316 billion yuan, a year-on-year increase of 47.82%, and a net profit attributable to shareholders of approximately 1.111 billion yuan, up 81.29% year-on-year [2]. - The second quarter of 2025 saw a revenue of 3.505 billion yuan, representing a 52.39% increase year-on-year, and a net profit of 689 million yuan, which is a 103.25% increase year-on-year and a 63.30% increase quarter-on-quarter [2]. Resource Sector Growth - The company's resource projects, excluding Lubambe Copper Mine, met production targets, achieving a copper metal output of 39,400 tons, a year-on-year increase of 198.52%, and a phosphate rock output of 174,300 tons, up 6.48% [3]. - The resource sector generated a sales revenue of 2.912 billion yuan in the first half of 2025, a year-on-year increase of 238.03%, with a gross profit of 1.388 billion yuan, up 276.83%, and a gross margin of 47.68%, an increase of 4.91 percentage points year-on-year [3]. Mining Service Business - The mining service business generated a revenue of 3.322 billion yuan in the first half of 2025, with a gross profit of 767 million yuan, a decline of 17.26% year-on-year due to internalization of service revenue from Lubambe Copper Mine and the integration of Terra Mining [4]. - The company signed new and renewed mining service contracts worth approximately 7.1 billion yuan in the first half of 2025, expanding its operations in Africa [4]. - The Kamoa Copper Mine has gradually resumed operations, with mining volumes recovering to about 70% of pre-suspension levels [4].

Core Points - The board of directors of Jincheng Mining Management Co., Ltd. held its 25th meeting of the 5th session on August 25, 2025, where all resolutions were passed unanimously [1][2][3] Meeting Details - The meeting was convened in accordance with the Company Law of the People's Republic of China and the company's articles of association, with all 9 directors present [1] - The meeting was chaired by Chairman Wang Qinghai [1] Financial Report - The board approved the 2025 semi-annual report and summary, which was prepared in compliance with relevant regulations [2] Capital Increase for Subsidiaries - The board approved a capital increase of up to 400 million RMB for its wholly-owned subsidiary, Yuancheng Technology (Hainan) Co., Ltd., raising its registered capital from 100 million RMB to a maximum of 500 million RMB [2] - The board also approved an investment increase of 400 million RMB in its wholly-owned subsidiary, Jincheng (Hubei) Intelligent Equipment Co., Ltd., to enhance production capacity for high-end intelligent mining equipment [3] Management System Updates - The board approved revisions to certain management systems to align with national laws and regulations, including adjustments to the responsibilities of the audit and risk management committee [4] - The board also approved the revision of the Asset Impairment and Write-off Management Measures to strengthen asset management [5] Management Personnel Changes - The board approved the dismissal and appointment of senior management personnel, with details provided in a separate announcement [6][7] Bond Issuance - The board approved extending the validity period of the resolution for issuing convertible bonds to unspecified objects, which will require shareholder approval [6][7] Upcoming Shareholder Meeting - The company plans to hold its third extraordinary general meeting of 2025 on September 10, 2025 [7]