Investment Rating - The report maintains an "Accumulate" rating for the company [2][6]. Core Views - The company has shown steady growth in new contracts signed in the first half of 2025, which will strongly support future performance [5]. - The total new contracts signed in the first half of 2025 amounted to 2.5 trillion yuan, a year-on-year increase of 0.9%. The construction business contributed 2.32 trillion yuan, up 1.7% year-on-year [5]. - The real estate business remains industry-leading despite a decline in contract sales, with a total of 174.5 billion yuan in sales, down 8.9% year-on-year [5]. - The company has a robust land reserve of 76.27 million square meters, with 5.2 million square meters acquired in the first half of 2025 [5]. - The company reported a revenue of 2.18715 trillion yuan in 2024, a decrease of 3.5%, and a net profit of 461.9 billion yuan, down 14.9% [5]. - The company has a high dividend yield of approximately 4.5%, with a dividend payout ratio of 24.3% in 2024, the highest since its listing [5]. - The company is expected to achieve earnings per share (EPS) of 1.16 yuan and 1.20 yuan for 2025 and 2026, respectively, corresponding to price-to-earnings (PE) ratios of 5.08 and 4.9 times [5]. Summary by Sections Company Overview - The company is a leading player in the global construction industry, demonstrating resilience during recent cyclical downturns in the real estate and construction sectors [5]. Financial Performance - The company’s first quarter of 2025 showed a revenue of 555.34 billion yuan, a year-on-year increase of 1.1%, and a net profit of 150.13 billion yuan, up 0.6% [5]. Market Position - The company’s real estate sales scale is industry-leading, and it is expected to further increase market share amid cyclical challenges [5].

Company Overview - Zhangli International (璋利国际) is a leading construction service company in Malaysia, established in 1996, with over 20 years of operational history [3] - The company specializes in various construction services and is capable of undertaking PPP projects under the BLMT model, which allows for long-term recurring cash flows [3] - According to industry reports, the company ranked 18th among publicly listed construction companies in Malaysia based on construction service revenue in 2015 [3] Financial Performance - As of March 31, 2025, Zhangli International reported total revenue of 266 million yuan, representing a year-on-year growth of 40.18% [2] - The company experienced a net loss attributable to shareholders of 39.45 million yuan, a significant decrease of 1989.86% compared to the previous year [2] - The gross profit margin stood at -3.3%, and the debt-to-asset ratio was 99.54% [2] Market Performance - On July 25, the Hang Seng Index fell by 1.09%, closing at 25,388.35 points, while Zhangli International's stock price increased by 8.3% to 2.87 HKD per share, with a trading volume of 24,200 shares and a turnover of 67,200 HKD [1] - Over the past month, Zhangli International has seen a cumulative decline of 14.52%, but it has achieved a year-to-date increase of 96.3%, outperforming the Hang Seng Index's rise of 27.95% [2] Valuation Metrics - Currently, there are no institutional investment ratings for Zhangli International [3] - The average price-to-earnings (P/E) ratio for the construction industry (TTM) is 10.58, with a median of -0.21 [3] - Zhangli International's P/E ratio is -2.45, ranking it 182nd in the industry, compared to other companies such as HPC Holdings (0.93), Pujiang International (1.01), and others [3]

Group 1 - Market sentiment has improved with an increase in margin trading balance, turnover rate, and transaction volume across major indices [2][19] - The average margin trading balance reached approximately 1.92 trillion yuan, up 1.48% from the previous week, with the financing purchase ratio rising to 11.13% of total A-share transaction volume [16][19] - The turnover rate for major indices increased, with the CSI 500 showing the largest growth in transaction volume at 18.30% [19][20] Group 2 - The PE valuation percentiles for major indices increased, with the Shenzhen Component Index leading with a rise of 5.1 percentage points [24][28] - Stable style sectors led the increase in PE valuation percentiles, rising by 2.6 percentage points, while the consumer style also saw a rise of 2.5 percentage points [36][39] - The construction industry led the sectoral PE valuation increases with a rise of 9.4 percentage points, while the banking sector saw a decline of 2.0 percentage points [53][54]

Core Points - The Shanghai Composite Index decreased by 0.33%, while the Shanghai Central Enterprises 50 Index fell by 0.72%, closing at 1806.12 points with a trading volume of 93.634 billion yuan [1] - The Shanghai Central Enterprises 50 Index has increased by 2.24% over the past month, 6.69% over the past three months, and 2.24% year-to-date [1] - The index is composed of the top 50 listed companies controlled by the State-owned Assets Supervision and Administration Commission and the Ministry of Finance, based on average market capitalization and trading volume over the past year [1] Index Composition - The top ten weighted companies in the Shanghai Central Enterprises 50 Index are: China Merchants Bank (11.04%), Yangtze Power (7.04%), CITIC Securities (5.83%), Industrial and Commercial Bank of China (5.26%), Bank of Communications (4.15%), Agricultural Bank of China (3.94%), SMIC (3.63%), Beijing-Shanghai High-Speed Railway (3.29%), China Shenhua Energy (2.55%), and China State Construction Engineering (2.42%) [1] - The index is fully represented by companies listed on the Shanghai Stock Exchange [1] Industry Breakdown - The industry composition of the index includes: Finance (41.47%), Industry (22.86%), Public Utilities (10.67%), Energy (7.50%), Communication Services (6.37%), Information Technology (5.14%), Materials (3.42%), Consumer Discretionary (1.37%), and Real Estate (1.19%) [2] - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2] - New samples are prioritized for inclusion if they rank within the top 40, while existing samples ranked within the top 60 are generally retained [2]

Group 1 - The A-share market experienced slight fluctuations, with the CSI A500 index down by 0.38% as of 14:21 on July 25 [1] - Among the constituent stocks, Zhangjiang Hi-Tech reached the daily limit, while Cambrian Biologics and Yunda Holdings rose by 8.71% and 8.29% respectively; on the downside, China Energy Engineering fell by 9.30%, Tunnel Engineering dropped by 5.53%, and Zexin Pharmaceutical decreased by 4.77% [1] - The A500 ETF fund (512050) saw a decline of 0.29%, with a trading volume exceeding 3.7 billion yuan, ranking first among similar funds [1] Group 2 - Market sentiment is warming up, with significant increases in capital activity, leading to rapid rotation among sectors in the short term [1] - Policy-driven capital inflows are solidifying the market bottom, with the Central Huijin Investment's multiple rounds of ETF purchases sending stabilizing signals [1] - The "policy bottom" effect is strengthening market expectations for liquidity and systemic support, suggesting that structural market activity is likely to continue in the current macroeconomic environment [1] Group 3 - The core A500 ETF fund (512050) has highlighted its market trend characteristics and allocation value recently [2] - This ETF tracks the CSI A500 index, employing a dual strategy of industry-balanced allocation and leading stock selection, covering all 35 sub-industries [2] - Compared to the CSI 300, the A500 ETF is overweight in sectors such as AI industry chain, pharmaceutical biology, electric equipment, new energy, and national defense, showcasing a natural "dumbbell" investment attribute [2]

Core Viewpoint - The U.S. government's tariff policy is significantly impacting small business owners in the construction industry, leading to widespread price increases for all products, including those labeled as "Made in America" due to rising costs of international components. Group 1: Impact on Pricing - The overall cost of products has increased between 5% to 40%, directly affecting the construction industry [1][3] - The belief that intermediaries like exporters or importers would absorb the tariff costs is flawed, as their profit margins are insufficient to bear these additional expenses, resulting in manufacturers passing the cost onto consumers [3] Group 2: Trade Relations and Export Challenges - Tariff imposition is damaging U.S. trade relations, making it increasingly difficult for American companies to export and import products, which in turn raises costs for both businesses and consumers [5] - Exporting U.S. manufactured products has become particularly challenging due to strained trade relationships, affecting markets in Canada, Latin America, Africa, the Middle East, and Europe [7] Group 3: Dependency on Imports - The U.S. construction industry heavily relies on imported products and raw materials, leading to escalating prices that are hard to adapt to [7]

Market Overview - The Hong Kong stock market showed mixed performance, with the Hang Seng Index closing at 23,831 points, down 145 points or 0.61%, while the Hang Seng Technology Index fell 0.05% to 5,743 points [1][5] - The market turnover decreased to 82.799 billion HKD, with net inflows of 484 million HKD recorded in the Hong Kong Stock Connect [1][5] - The US stock market experienced varied movements, with the S&P 500 Index rising 4 points to 6,363 points, while the Dow Jones Industrial Average fell 316 points or 0.7% to 44,693 points due to declines in IBM and Tesla stocks [2] Sector Performance - In the Hong Kong market, the local real estate, software, and 5G concept sectors saw significant declines, while gold stocks performed well [1][5] - The materials sector remained strong, with lithium companies Ganfeng Lithium and Tianqi Lithium both rising over 10%, and China Hongqiao increasing by over 6% [1][5] - The semiconductor industry attracted active capital, with companies like SenseTime and Huahong Semiconductor rising approximately 7% and nearly 3%, respectively [1][5] Investment Recommendations - The report suggests a continued focus on sectors with growth potential, including artificial intelligence, robotics, semiconductors, and industrial software [3] - It highlights the innovation-driven pharmaceutical sector and consumer-oriented traditional Chinese medicine and healthcare sectors as areas of interest [3] - The report also points to undervalued sectors such as coal, oil and gas, and telecommunications, which are expected to benefit from low-risk interest rates in mainland China [3] Company Highlights - BYD's vehicle registrations in Europe surged by 91% year-to-date, with a market share of 5.1%, second only to Mercedes [9] - The report emphasizes the potential of companies like Xpeng Motors and BYD, which are expected to benefit from the growing demand for electric vehicles [9] - The pharmaceutical sector is also highlighted, with companies like Fosun Pharma expected to benefit from recent policy changes in drug procurement [10]

Group 1: Shenzhen Airport Performance - Shenzhen Airport's passenger throughput reached 32.57 million in the first half of the year, a year-on-year increase of 10.9% [1] - Cargo and mail throughput reached 983,000 tons, with a year-on-year growth of 14.1% [1] - The number of flights reached 221,000, marking a year-on-year increase of approximately 7.2%, setting a new record for the airport [1] Group 2: Modular Construction Development - Shenzhen aims to implement modular construction projects with a cumulative area of no less than 3 million square meters by the end of 2028 [2] - The initiative is part of a broader action plan to promote the integration of three major industrial clusters in modular construction [2] - The goal is to create a comprehensive modular construction industry system [2] Group 3: BYD New SUV Launch - BYD launched its new mid-size SUV, the Sea Lion 06, with a price range starting from 139,800 yuan to 163,800 yuan [3] - The Sea Lion 06 is the first mid-size SUV from BYD's Ocean Network to offer both hybrid and pure electric versions [3] - The competitive pricing is expected to reshape the market landscape for new energy SUVs priced around 200,000 yuan [3] Group 4: New Energy Vehicle Market Insights - In July, the estimated retail sales of new energy vehicles are expected to reach 1.01 million units, with a penetration rate projected to rise to 54.6% [4] - The total retail market for narrow passenger vehicles is estimated to be around 1.85 million units, reflecting a year-on-year growth of 7.6% [4] - However, there is a month-on-month decline of approximately 11.2% in the retail market [4] Group 5: CICC Gold Mining Operations - China National Gold Group's Inner Mongolia Mining Company has ceased operations, and CICC is actively managing the aftermath [5] - The company is monitoring the situation and will fulfill its information disclosure obligations [5] Group 6: China Power Construction's Project Involvement - China Power Construction is involved in the research, testing, and construction of the Yarlung Tsangpo River downstream hydropower project [6] - The project is in its early stages, and its long construction cycle introduces uncertainty regarding its impact on the company's future performance [6] Group 7: JD's Acquisition Talks - JD Group is in deep negotiations to acquire German electronics retailer Ceconomy AG, with a valuation of approximately 2.2 billion euros (about 2.6 billion USD) [7] - JD is considering a cash offer of 4.60 euros per share, representing a 23% premium over Ceconomy's recent closing price [7] - No binding agreements have been signed yet, and it remains uncertain whether a formal acquisition offer will be made [7] Group 8: Dongguan Holdings' Equity Transfer - Dongguan Holdings plans to publicly transfer 20% of its stake in Songshan Lake Microfinance Company for a base price of 48.1215 million yuan [8] - This move aims to optimize the company's asset structure [8] - The transaction has been approved by the board of directors and does not require shareholder approval [8] Group 9: LVMH's Sales Decline - LVMH reported a 9% decline in organic sales for its fashion and leather goods segment in Q2, exceeding analyst expectations of a 7.82% drop [15] - The organic sales of wines and spirits fell by 4%, while the overall revenue for Q2 was 19.5 billion euros, slightly below analyst expectations [15][16] - The company plans to streamline its beverage (spirits) division in response to the declining sales [16]

新股方面，汉桑科技申购代码301491，发行价28.91元/股，申购上限0.75万股。 7月25日（周五）申购提示 投资有风险，申购需谨慎。 重要的消息有哪些 1．国家发展改革委、市场监管总局就《中华人民共和国价格法修正草案（征求意见稿）》公开征求意见，主要修订内容提出，进一步明确不正当价格行为认 定标准。一是完善低价倾销的认定标准，规范市场价格秩序，治理"内卷式"竞争。二是完善价格串通、哄抬价格、价格歧视等不正当价格行为认定标准。三是 公用企事业单位、行业协会等不得利用影响力、行业优势地位等，强制或捆绑销售商品、提供服务并收取价款。四是强化对经营场所经营者价格行为的规 范。 2．近日中国人民银行、农业农村部联合印发《关于加强金融服务农村改革 推进乡村全面振兴的意见》。其中提出，要健全金融服务农村改革体制机制，鼓励 各地探索建立农业设施和畜禽活体的确权颁证、抵押登记等管理制度，扩大抵押融资覆盖面，推动盘活农村资源资产。强化金融机构授信用信管理，优化完 善金融供给机制。加强政策保障和组织推动，综合运用货币、信贷等政策，鼓励金融机构发行"三农"、小微、绿色专项金融债券，支持符合条件的企业发行乡 村振兴债券，加大对 ...

Group 1 - China will continue to expand high-level opening-up and further reduce the negative list for foreign investment access, enhancing intellectual property protection and fair competition [2] - The State-owned Assets Supervision and Administration Commission (SASAC) emphasizes optimizing the allocation of state-owned assets and resisting "involution" competition [2] - The People's Bank of China (PBOC) will conduct a 400 billion yuan Medium-term Lending Facility (MLF) operation, with a net injection of 100 billion yuan, marking the fifth consecutive month of increased MLF [2] Group 2 - The National Development and Reform Commission (NDRC) has allocated 735 billion yuan in central budget investment to support various sectors, including modern infrastructure and rural revitalization [2] - The Ministry of Commerce announced a crackdown on the smuggling and export of strategic minerals, establishing a joint enforcement coordination center [2] - The market regulator is launching a nationwide campaign to improve the quality and safety of power banks, including a review of CCC certification [2] Group 3 - The second batch of 12 new floating-rate fund products has been registered with the China Securities Regulatory Commission, expected to be available for sale soon [2] - As of July 23, 240 Hong Kong-listed companies have conducted share buybacks this year, with a total repurchase of 7.188 billion shares worth over 186 billion HKD [2] - The public fund management institutions in China have a total net asset value of 34.39 trillion yuan as of June 30, 2025 [2] Group 4 - The leading domestic aramid paper company, Minshida, reported a revenue of 237 million yuan for the first half of 2025, a year-on-year increase of 27.91% [3] - Zhejiang Securities reported a 46.54% increase in net profit to 1.149 billion yuan for the first half of the year [8] - Anqi Yeast plans to acquire a 55% stake in Shengtong Sugar Industry for 506 million yuan [8]