Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The short - term market is in a phase of shock digestion, but the medium - term shock - climbing pattern remains unchanged. The market has entered an event vacuum period after short - term positive events, but the positive logic still exists. With the increase in incremental funds and the stabilization of listed company performance, the medium - term view of being bullish on the stock index remains unchanged. It is recommended to hold the remaining long positions in the medium - term and add positions opportunistically, and buy call options on the options [8][9]. Summary by Related Catalogs 1. Fundamental Viewpoints Market Performance - Last week, the broader market rebounded after hitting a low, with most of the four major indices rising slightly, and the large - cap stock indices performed well. In terms of style indices, the cycle and stable style indices had the largest increases, followed by the financial style index, while the consumer index declined slightly. Among Shenwan industries, most industries rose, with cyclical sectors such as electrical equipment, coal, steel, and chemical leading the gains, and industries such as computer, pharmaceutical biology, automobile, and food and beverage leading the losses [4][13][15]. Economic Data - In October 2025, the manufacturing PMI was 49%, down 0.8 percentage points from the previous month; the non - manufacturing PMI was 50.1%, up 0.1 percentage points from the previous month. The National Day holiday may have had an impact. Both supply and demand in the manufacturing PMI contracted in October, with production falling by 2.2% and new orders by 0.9%, and both ex - factory prices and raw material purchase prices continued to decline by 0.7%. The medium - and long - term credit growth rate has continued to decline to 6.30% as of September 2025, after rising from the low point in August 2022 and reaching the high point in May 2023 [4][26]. Policy - The Politburo set the tone for the real estate market to stop falling and stabilize, boosting the capital market. The central bank created two new monetary policy tools, cut the reserve requirement ratio, and lowered interest rates, and reduced the interest rates of existing mortgages. The CSRC proposed measures such as mergers and acquisitions and market value management to increase market activity. The implementation plan for promoting the entry of medium - and long - term funds into the market was officially released, which is expected to add 800 billion yuan of long - term funds to the A - share market each year [4]. Performance - A - share performance showed signs of stabilization in the first quarter, declined in the second quarter, and continued to stabilize and rebound in the third quarter. In the third quarter of 2025, the performance of the four major indices rebounded again [4][51][54]. Valuation - The Shanghai Composite Index has a relatively high valuation, with a PE of 16.6467, an upper - limit value of 15.60, and at the 89.06 percentile since 2010. The ChiNext valuation is relatively low [5][63][64]. 2. Capital Flow - In terms of margin trading, there was a net inflow of 274.8 billion yuan in 2024, and as of November 6, 2025, the net inflow in 2025 was 681.5 billion yuan, with a net outflow of 600 million yuan in the first five trading days. The total scale of private funds increased by 835.7 billion yuan this year, and the newly registered scale was 343 billion yuan. In the second quarter of 2025, the market value of A - share stocks and funds held by insurance funds increased by 251.3 billion yuan, and in the first half of 2025, it increased by 641.9 billion yuan. From April 7 to November 5, 2025, the ETF scale increased by 106.8 billion yuan, with an increase of 8.9 billion yuan last week. As of November 5, the net inflow of ETF funds this year was 9.8 billion yuan. As of September 30, 2025, the newly established share of stock - type funds was 323.3 billion yuan, and that of hybrid funds was 103.6 billion yuan [6][68][70]. 3. Index and Industry Trend Review - In terms of index trends, last week, most of the four major indices rose slightly, with the large - cap stock indices performing well. Among style indices, the cycle and stable style indices had the largest increases, followed by the financial style index, while the consumer index declined slightly. Among Shenwan industries, most industries rose, with cyclical sectors leading the gains and some consumer and technology - related industries leading the losses [4][13][15]. 4. Policy and Economy - In October 2025, the manufacturing PMI declined, and the non - manufacturing PMI rose slightly. The PPI has shown fluctuations in its decline rate, and in September, industrial enterprise revenue and inventory both increased for the first time. In September 2025, China's social financing scale decreased year - on - year, and the growth rate of medium - and long - term loans continued to decline. A series of policies have been introduced, including promoting the entry of medium - and long - term funds into the market, creating new monetary policy tools, and implementing interest rate cuts and reserve requirement ratio cuts [26][31][34]. 5. Earnings of Each Index - A - share performance showed signs of stabilization in the first quarter, declined in the second quarter, and continued to stabilize and rebound in the third quarter. In the third quarter of 2025, the performance of the four major indices rebounded again [51][54]. 6. Valuation - The Shanghai Composite Index has a relatively high valuation, while the ChiNext valuation is relatively low [63][64]. 7. Capital Flow Details - Margin trading, private funds, insurance funds, and ETF funds have all shown different trends in capital inflows and outflows. In the secondary market, major shareholders had a large - scale net reduction of holdings last week, and the scale of restricted - share unlockings was small in November [6][68][99]. 8. Technical Analysis - The four major indices are in a state of shock, and their trends are presented through relevant charts [102][107][111].

Investment Rating - Investment Rating: Buy (Maintain) [1] Core Views - The company reported a revenue of 8.436 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 6.98%, and a net profit attributable to shareholders of 0.982 billion yuan, up 14.62% year-on-year [4] - The company achieved a gross margin of 25.09%, an increase of 0.82 percentage points year-on-year [4] - The company successfully developed the world's first 800kV/80kA large-capacity circuit breaker, marking a significant technological advancement in the high-voltage large-capacity circuit breaker field [5] - Contract liabilities increased by 46.32% year-on-year to 1.868 billion yuan, indicating strong future performance support [5] - The company is expected to benefit from accelerated construction in the ultra-high voltage and main grid sectors, with projected net profits of 1.395 billion, 1.620 billion, and 1.846 billion yuan for 2025, 2026, and 2027, respectively [6] Financial Summary - Revenue for 2025 is projected to be 14.081 billion yuan, with a year-on-year growth of 13.5% [8] - The net profit attributable to shareholders is expected to reach 1.395 billion yuan in 2025, reflecting a year-on-year increase of 36.3% [8] - The gross margin is anticipated to improve to 23.4% in 2025 [8] - The company’s P/E ratios for 2025, 2026, and 2027 are projected to be 18.92, 16.29, and 14.29, respectively [8]

Group 1 - The North Exchange 50 Index and the North Exchange Specialized and Innovative Index will undergo adjustments on December 15, 2025, with potential new additions and removals of companies based on quantitative indicators and buffer rules [3][6][12] - Expected companies to be added to the North Exchange 50 Index include Development Technology, Geberit, and Wantong Hydraulic, while companies like Zhongfangbiao, Qiuguan Cable, and Haitai New Energy may be removed [3][8][10] - For the North Exchange Specialized and Innovative Index, anticipated additions include Star Map Measurement and Control, Jun Chuang Technology, and Ju Xing Technology, with removals expected for companies like Runong Water Saving and Tongxiang Technology [12][13] Group 2 - The North Exchange A-share PE ratio has decreased to 49X, with a weekly average trading volume dropping to 231 billion [17][20] - The North Exchange 50 Index has reported a decline of 3.79%, closing at 1,522.73 points, while other indices like the Shanghai and Shenzhen 300 and the ChiNext have shown increases [18][22] - The market sentiment remains optimistic for the year, with a focus on several key themes, including the establishment of more public fund products targeting small and medium-sized stocks and the promotion of domestic consumption-related stocks [3][12][23] Group 3 - Recent IPO activities include the listing of two new companies, Zhongcheng Consulting and Danna Biology, with a total of 43 companies having gone public since January 1, 2024 [23][24] - The average issuance PE ratio for the 43 listed companies is 13.76X, with an average first-day price fluctuation of 264% [27][29] - The report highlights the ongoing normalization of new stock issuance processes at the North Exchange, with several companies currently in various stages of the IPO process [31]

Core Insights - Far East Smart Energy Co., Ltd. has signed a strategic cooperation agreement with Schneider Electric to enhance low-altitude economic development [1] Group 1 - The strategic cooperation agreement was signed between Beijing Jinghang An Airport Engineering Co., Ltd., a subsidiary of Far East Smart Energy, and Schneider Electric [1] - A white paper titled "Empowering Low-altitude Economic Development: Building a Safe, Resilient, and Sustainable Air Traffic Energy Base" was jointly released [1]

Core Insights - Schneider Electric showcased its innovations at the 8th China International Import Expo, focusing on three key areas: petrochemicals, data centers, and zero-carbon cities [1] - The company emphasizes its commitment to China's digital infrastructure and aims to lead in the global AI-driven computing landscape [3] Group 1: Innovations and Products - Schneider Electric introduced the "Power + Cooling" dual innovation solutions, including the Galaxy VXL UPS and liquid cooling CDU system, designed to meet the demands of high-density, resilient, and low-carbon intelligent computing centers [4] - The Galaxy VXL UPS has a power capacity of 1.25 megawatts, occupies only 1.2 square meters, and offers a 70% space saving compared to previous models, with an efficiency of up to 99% in E-conversion mode [4] - The liquid cooling CDU system addresses cooling and energy consumption challenges, providing customized cooling solutions for various power density scenarios [4] Group 2: Strategic Positioning and Market Impact - China has become the global innovation hub for Schneider Electric, with core technology innovations being developed and validated locally before global replication [6] - The company leverages an integrated agile mechanism for research, production, and sales, significantly shortening supply chain cycles and ensuring that R&D outcomes meet local customer needs [6] - Schneider Electric aims to provide end-to-end, scalable AI-ready solutions for data centers, integrating energy strategies with sustainability expertise to support future-ready data center development [6]

Group 1: Economic Outlook - The report anticipates a soft landing for the US economy, with expectations of interest rate cuts due to weakened Federal Reserve independence and employment pressures [2] - A potential economic slowdown or mild recession is expected to be countered by rapid interest rate cuts, benefiting gold and US equities over US Treasuries and cash [2] Group 2: Domestic Market Projections - The A-share market is projected to have considerable upward potential during the 14th Five-Year Plan period, with a target of over 4450 points by 2026, supported by low bond rates and improving prices [3] - The report suggests a long-term bullish trend for the Chinese stock market, aligning with the strategic focus on information technology and consumption [3] Group 3: Hong Kong Market Insights - The Hong Kong stock market is expected to benefit from a significant inflow of southbound funds, with a target range of 29000-32000 points for 2026, following a strong performance in 2025 [4] - The shift in pricing power from quantity to quality due to southbound fund inflows is highlighted as a key factor influencing Hong Kong stock valuations [4] Group 4: Industry Selection - AI applications are expected to drive growth across various sectors, including internet/software, media, hardware, semiconductors, and retail [5] - The PPI chain is anticipated to benefit midstream manufacturing and upstream raw materials industries, with a focus on sectors like electrical equipment, defense, chemicals, and machinery [5] - Non-bank financials, particularly insurance and brokerage firms, are expected to perform well due to market conditions [5] - The pharmaceutical sector is viewed positively, with new consumption trends favoring innovative drugs over traditional consumption [5] - A stable cash flow combination is projected to outperform the market, especially in a context of a weakening dollar and low bond yields [5]

Core Insights - Schneider Electric views the China International Import Expo (CIIE) as a vital platform for showcasing high-level openness and quality development in China, emphasizing its commitment to innovation and collaboration in the Chinese market [2][3]. Group 1: Commitment to China - Schneider Electric has participated in the CIIE for eight consecutive years, showcasing innovative products and technologies, with an increasing proportion of original Chinese innovations [2][6]. - The company aims to deepen its investment in China, positioning it as a key market and innovation hub, with a compound annual growth rate of over 18% in R&D investment since 2019 [6][7]. - Schneider Electric's "China Center" strategy has made China its second-largest market globally, with significant contributions to its supply chain and R&D capabilities [6][7]. Group 2: Technological Integration - The integration of AI and energy technologies at Schneider Electric's Shanghai Putuo factory has led to a remarkable 82% increase in per capita productivity, demonstrating the transformative power of digital technologies in traditional manufacturing [3][4]. - The factory has adopted advanced digital technologies such as AI, 5G, and AR, enhancing processes like prototype design and flexible production [3][4]. - The application of AI has not only improved efficiency but also empowered workers, reducing fault repair times by 30% and increasing production speed by 65% [3][4]. Group 3: Ecosystem Development - Schneider Electric is building digital, sustainable, and global ecosystems in China to enhance innovation capabilities among SMEs and strengthen the overall competitiveness of the ecosystem [7][8]. - The "Winning Together" program has attracted over 1,250 SMEs, resulting in more than 40 joint innovation outcomes, serving as an AI-enabled innovation incubator [7]. - The company has successfully achieved 53% of its goal to help 270 Chinese suppliers reduce carbon emissions by 50% by the end of 2025 [7]. Group 4: Strategic Location - Shanghai is identified as a critical area for Schneider Electric's "China Center" strategy, benefiting from its unique innovation ecosystem and talent pool [8]. - The city serves as the headquarters for Schneider Electric in China and is pivotal for its ongoing investment and innovation efforts [8].

Group 1: Company Strategy and Innovations - Hitachi's advantage lies in integrating technology with domain knowledge to transform social infrastructure, focusing on combining advanced Chinese technology with Hitachi's expertise [1] - At the China International Import Expo, Hitachi showcased a robot for elevator services that utilizes its expertise in elevator safety standards and incorporates advanced environmental perception and autonomous movement technologies from Chinese robotics companies [1] - Hitachi Energy operates in over 140 countries, providing power equipment to 3 billion people, and has been deeply engaged in the Chinese market for over 40 years while also collaborating with Chinese clients to explore overseas markets [2][4] Group 2: Market Trends and Demand - The global demand for electrical equipment is surging due to energy transition, with clean energy replacing traditional sources and increasing electricity needs driven by electric vehicles and data center construction [5] - China leads globally in clean energy installed capacity and has the most developed power transmission network, with over 50% of domestic electric vehicles and more than 8 million data center racks [5] - Europe is pushing for energy transition through offshore wind power, necessitating specialized electrical equipment, with China being the largest manufacturer of wind power equipment [6] Group 3: Technological Developments - Hitachi Energy has developed a dry-type transformer for offshore wind projects to reduce operational costs and enhance equipment reliability, successfully implemented in a project by Huaneng [6] - The company is also leveraging flexible direct current technology to transmit variable current from offshore wind turbines to the mainland [6] - In the hydrogen sector, Hitachi Energy plans to collaborate with Chinese manufacturers to develop electrical equipment suitable for hydrogen production [6]

Core Viewpoint - The article discusses the shifting dynamics in Europe regarding its support for Ukraine amidst the ongoing Russia-Ukraine conflict, highlighting a growing sentiment to reconsider alliances and strategies, particularly in relation to the United States and Russia [1][5]. Economic Impact - Europe has incurred significant economic costs due to the Russia-Ukraine conflict, with estimates indicating that the EU will spend over €300 billion on energy imports in 2024 alone [3]. - Energy prices in Germany and France have surged to five times their previous levels, contributing to persistent inflation and forcing major companies like Mercedes and Siemens to relocate production to the U.S. [3]. - Many EU member states are experiencing structural deficits exceeding 3%, compounded by rising public debt, which poses a heavy burden on economic recovery [3]. Political Dynamics - The article notes a shift in political sentiment within Europe, with figures like former Italian ambassador Elena Bačić advocating for recognition of Russia's security concerns, which resonates with some European leaders [4]. - Slovakia's new government has halted military aid to Ukraine, while protests in the Czech Republic reflect public discontent over financial support for the conflict [4]. Strategic Considerations - There is a growing notion among European leaders to pivot away from unwavering support for Ukraine, suggesting a potential realignment with Russia to secure energy cooperation and alleviate economic pressures [5]. - However, this strategy faces significant challenges, including the need to navigate U.S. interests, rebuild trust with Russia, and manage Ukraine's response to any perceived betrayal [5][8]. Future Outlook - The article posits that Europe must take substantial actions to assert its independence from U.S. influence and avoid being treated as a mere resource by either the U.S. or Russia [10]. - The upcoming winter poses additional challenges for Europe, as energy costs continue to rise, raising questions about the viability of the proposed strategy of "abandoning Ukraine, courting Russia, and distancing from the U.S." [10].

Core Insights - Shandong Beibian Technology Co., Ltd. has recently been established with a registered capital of 3 million RMB [1] - The legal representative of the company is Shi Yaojie [1] Company Overview - The company’s business scope includes general projects such as technology services, development, consulting, exchange, transfer, and promotion [1] - It also engages in the retail and manufacturing of hardware products, as well as the manufacturing of power distribution switch control equipment and transmission and distribution control equipment [1] - The company is authorized to manufacture wires and cables, which requires approval from relevant authorities before operations can commence [1]