Investment Rating - The report maintains an "Outperform" rating for the industry [5] Core Insights - The North Exchange's stock trading activity remains active, with a total of 277 listed companies and a total market capitalization of 868.79 billion yuan as of September 30, 2025 [11][10] - The North Exchange 50 index has a PE-TTM of 50.90 times, ranking in the 88.25th percentile over the past two years, while the PB-MRQ is 13.18 times, in the 95.46th percentile [24][25] - The report highlights a mixed performance across industries, with the only rising sector being construction materials, while defense, agriculture, social services, food and beverage, and telecommunications sectors saw declines [32][29] Summary by Sections Market Overview - The North Exchange's trading volume for September was 26.028 billion shares, with a transaction value of 615.638 billion yuan, showing a 0.2% increase in volume but a 4.1% decrease in value compared to the previous month [10][15] - The average daily margin balance reached 7.673 billion yuan, an increase of 11.28% month-on-month, with peak margin balances nearing 8 billion yuan [21][21] Valuation - As of September 30, 2025, the North Exchange 50 index's PE-TTM is 50.90 times, and the PB-MRQ is 13.18 times, indicating high valuation levels compared to historical data [24][25] - The highest median PE among industries is in light manufacturing at 104 times, followed by computer and construction materials at 98 and 88 times respectively [25][28] Industry Performance - The North Exchange's dual indices showed a downward trend in September, with the specialized index down 4.44% and the North Exchange 50 down 2.90% [29][30] - The only sector that saw an increase was construction materials, while significant declines were noted in defense, agriculture, social services, food and beverage, and telecommunications [32][29] New Listings - Three new companies were listed this month: Sanxie Electric (920100.BJ), Jinhua New Materials (920015.BJ), and Shichang Co., Ltd. (920022.BJ) [11][3] - The total number of listed companies on the North Exchange is now 277, with a total market capitalization of 868.79 billion yuan [11][10]

Market Overview - The electric motor sector experienced a decline of 3.34% on the previous trading day, with Dayang Electric leading the drop [1] - The Shanghai Composite Index closed at 3897.03, down 0.94%, while the Shenzhen Component Index closed at 13355.42, down 2.7% [1] Stock Performance - Dayang Electric (002249) saw a significant drop of 7.80%, closing at 10.88, with a trading volume of 1.95 million shares and a transaction value of 2.175 billion [2] - Other notable declines included: - Wolong Electric Drive (600580) down 4.83% to 47.85, with a transaction value of 6.393 billion [2] - Mingzhi Electric (603728) down 4.57% to 78.52, with a transaction value of 1.604 billion [2] Capital Flow - The electric motor sector experienced a net outflow of 1.824 billion from institutional investors, while retail investors saw a net inflow of 1.181 billion [2] - Specific stock capital flows included: - Kangping Technology (300907) had a net inflow of 31.84 million from institutional investors [3] - Zhongdian Electric (603988) saw a net inflow of 3.2243 million from institutional investors [3] Individual Stock Analysis - Kangping Technology (300907) had a net outflow of 38.71 million from retail investors, despite a net inflow from institutional investors [3] - Zhongdian Electric (603988) also faced a net outflow of 3.04751 million from retail investors, despite some institutional support [3] - Other stocks like KZ Precision (002823) and Shuangming Intelligent (301226) showed mixed capital flows, indicating varied investor sentiment [3]

Market Performance - The electric motor sector increased by 1.53% compared to the previous trading day, with China Electric Motor leading the gains [1] - The Shanghai Composite Index closed at 3933.97, up 1.32%, while the Shenzhen Component Index closed at 13725.56, up 1.47% [1] Individual Stock Performance - China Electric Motor (603988) closed at 30.90, with a rise of 10.00% and a trading volume of 76,300 shares, amounting to a transaction value of 233 million yuan [1] - Sanxie Electric (920100) closed at 73.85, up 6.29%, with a trading volume of 31,400 shares [1] - Jiadian Co. (000922) closed at 12.73, increasing by 5.21%, with a trading volume of 374,500 shares [1] - Wolong Electric (600580) closed at 50.28, up 3.84%, with a trading volume of 1,828,900 shares [1] - Other notable performers include Huaxin Precision (603370) up 2.49%, Dayang Electric (002249) up 2.43%, and Xingdesheng (603344) up 2.42% [1] Fund Flow Analysis - The electric motor sector experienced a net outflow of 56.18 million yuan from main funds, while retail funds saw a net inflow of 97.88 million yuan [2] - The overall trend indicates a mixed sentiment among investors, with institutional investors pulling back while retail investors showed interest [2]

Market Overview - In September 2025, the North Exchange market continued its oscillating trend, with the North Certificate 50 Index reaching a historical high mid-month, indicating sustained recognition of high-quality supply and institutional reform expectations[5] - As of September 29, 2025, the North Certificate 50 Index fell by 2.21% for the month, with a maximum increase of 6.08% during the period[15] - The overall PE valuation for the North Certificate 50 Index was 76.41 times, with a median of 75.86 times, compared to 42.73 times for the ChiNext Index and 180.14 times for the Sci-Tech Innovation Board[21] Trading Activity - The total trading volume for the North Exchange in September 2025 was 582.41 billion yuan, with a trading volume of 24.638 billion shares[24] - The average margin financing balance for September was 7.676 billion yuan, reflecting an increase of 11.65% month-on-month[25] Investment Recommendations - Focus on three main lines: (1) High-growth new productivity targets and leading companies in competitive niche sectors; (2) Innovation-driven sectors such as semiconductors, military, AI, and satellite internet; (3) Consumer-related companies benefiting from policies aimed at boosting domestic demand[5] - The market is transitioning from retail-driven to institutional allocation, enhancing the market's representativeness and financing functions[5] New Listings and Regulatory Updates - Three new stocks were listed in September, bringing the total number of companies listed on the North Exchange to 277[33] - The "920 code switch" for existing companies is set to be implemented on October 9, 2025, enhancing market identification[37] Risk Factors - Risks include potential delays in policy implementation and the possibility of irrational investment behavior due to short-term stock price surges[39]

Core Insights - The overall market of the Beijing Stock Exchange (BSE) continued to show a fluctuating trend in September 2025, with the BSE 50 Index reaching a historical high mid-month, indicating sustained recognition of high-quality supply and expectations for institutional reforms [5][14] - The upcoming "920 code switch" for existing companies in October marks a significant step towards a unified code system, enhancing market recognition [5][14] - The market ecology is shifting from being dominated by retail investors to institutional allocation, reflecting a transition from "quantity expansion" to "quality optimization" [5][14] - Looking ahead to Q4, potential catalysts for funds include index adjustments, thematic fund issuances, and anniversary policy expectations, with a focus on "specialized, sophisticated, and new + high-end manufacturing" themes [5][14] Market Review and Valuation - As of September 29, 2025, the BSE 50 Index fell by 2.21% in September, with a maximum increase of 6.08% during the period. Year-to-date, the index has risen by 48.34% with a peak increase of 60.92% [6][15] - The average PE (TTM) for the BSE 50 Index was 76.41 times, while the median was 75.86 times. In comparison, the ChiNext Index had an average PE of 42.73 times, and the Sci-Tech Innovation Board had an average PE of 180.14 times [21][15] New Stock Dynamics - In September, three new stocks were listed on the BSE, bringing the total number of listed companies to 277. During the period from September 1 to September 29, four companies were subscribed, and three were listed [33][34] Key Company Announcements - The BSE announced that starting from October 9, 2025, existing listed companies will uniformly adopt new securities codes starting with "920," which will cover trading orders, market inquiries, and various business operations [37]

Market Overview - The electric motor sector experienced a decline of 0.3% on the previous trading day, with Daiyang Electric leading the drop [1] - The Shanghai Composite Index closed at 3882.78, up 0.52%, while the Shenzhen Component Index closed at 13526.51, up 0.35% [1] Stock Performance - Notable gainers in the electric motor sector included: - Dibai Electric (603320) with a closing price of 20.57, up 8.32% and a trading volume of 131,900 shares, totaling 270 million yuan [1] - Mingzhi Electric (603728) closed at 84.64, up 3.47% with a trading volume of 230,000 shares, totaling 1.923 billion yuan [1] - Major decliners included: - Daiyang Electric (002249) closed at 11.52, down 4.32% with a trading volume of 2.3358 million shares, totaling 2.719 billion yuan [2] - Ananda (603350) closed at 40.04, down 2.56% with a trading volume of 22,200 shares, totaling 89.9294 million yuan [2] Capital Flow - The electric motor sector saw a net outflow of 473 million yuan from institutional investors, while retail investors contributed a net inflow of 388 million yuan [2] - Specific stock capital flows indicated: - Mingzhi Electric had a net inflow of 149 million yuan from institutional investors, while retail investors had a net outflow of 24 million yuan [3] - Dibai Electric experienced a net inflow of 67.24 million yuan from institutional investors, with retail investors also showing a net outflow of 30.25 million yuan [3]

Core Viewpoint - The recent block trade of Shenli Co., Ltd. indicates active trading interest, with a notable transaction occurring on September 29, involving 370,900 shares at a price of 11.66 yuan, reflecting a stable market position for the company [2]. Group 1: Block Trade Details - On September 29, a block trade was executed for 370,900 shares of Shenli Co., Ltd., amounting to 4.325 million yuan, with a transaction price of 11.66 yuan [2]. - The buyer and seller for this transaction were both from the same brokerage, Dongfang Securities Co., Ltd., Shanghai Huangpu District Zhonghua Road Securities Branch [2]. - Over the past three months, Shenli Co., Ltd. has recorded a total of 11 block trades, with a cumulative transaction value of 47.4393 million yuan [2]. Group 2: Stock Performance - As of the latest trading day, Shenli Co., Ltd. closed at 11.66 yuan, marking a 1.75% increase, with a daily turnover rate of 2.06% and a total trading volume of 51.924 million yuan [2]. - The stock has seen a cumulative increase of 0.43% over the past five days, although there has been a net outflow of funds totaling 7.631 million yuan during the same period [2]. Group 3: Company Background - Changzhou Shenli Electric Motor Co., Ltd. was established on December 16, 1991, with a registered capital of 2.1773 billion yuan [2].

Market Performance - The electric motor sector increased by 2.32% compared to the previous trading day, with Wolong Electric leading the gains [1] - The Shanghai Composite Index closed at 3862.53, up 0.9%, while the Shenzhen Component Index closed at 13479.43, up 2.05% [1] Stock Performance - Wolong Electric (600580) closed at 48.60, up 4.27% with a trading volume of 1.5155 million shares and a transaction value of 7.308 billion [1] - Other notable performers included Benrui Co. (300626) with a 3.45% increase, and Dayang Electric (002249) with a 3.44% increase [1] Capital Flow - The electric motor sector saw a net inflow of 276 million in main funds, while retail investors experienced a net outflow of 162 million [2] - Main funds showed significant inflow into Wolong Electric, amounting to 359 million, while retail investors had a net outflow of 299 million [3]

Group 1 - Guangdong Wanjiahong Stainless Steel Products Co., Ltd. is a leading enterprise in the domestic stainless steel decoration sector, facing challenges due to rising raw material prices and increased order volumes, necessitating timely fund allocation to ensure production continuity and on-time delivery of orders [2] - Postal Savings Bank's Taishan branch provided a loan of 5 million yuan to Wanjiahong within 72 hours through an online cluster loan model, which operates without paper materials and offers a lower annual interest rate compared to the market average [2] - The funding alleviated immediate production challenges and boosted the company's confidence in achieving its development goals [2] Group 2 - Enping Hongxing Aluminum Industry Co., Ltd. is a leading enterprise in the aluminum profile industry, which is becoming a key driver for local industrial revitalization, but it faces challenges such as high R&D costs, long payment cycles, and difficulties in light asset financing [4] - Since 2011, Postal Savings Bank's Jiangmen branch has established a cooperative relationship with Hongxing Aluminum, providing a "Science and Technology Loan" of 33.94 million yuan in 2025, which is suitable for companies with significant R&D investments [5] - Jiangmen Lifeng Electric Motor Co., Ltd., a high-tech enterprise focused on developing energy-saving and environmentally friendly motors and generators, received personalized financial service solutions from Postal Savings Bank's Jiangmen urban branch, which actively engaged with the company to understand its operational status and development plans [5][7] Group 3 - Postal Savings Bank's Jiangmen branch is actively responding to the "Industrial Revitalization" initiative in Jiangmen, focusing on the intelligent and green transformation of the manufacturing sector, and integrating finance, technology, and manufacturing to provide continuous financial support for the local private economy [7]

Investment Rating - The report maintains an "Overweight" rating for the power equipment and new energy industry [2] Core Insights - The energy storage system bidding scale in August 2025 saw a month-on-month increase of over 10 times, reaching 17.7GW/45.7GWh, marking a year-on-year growth of 237.1% and 691.4% respectively [5][39] - The power equipment sector has outperformed the CSI 300 index, with a year-to-date increase of 38.91%, surpassing the index by 22.18 percentage points [12][18] - The report highlights significant growth in the grid-side energy storage system, which reached a bidding scale of 18.2GWh in August, reflecting a year-on-year increase of 437.2% and a month-on-month increase of 521.9% [40] Summary by Sections Market Review - As of September 25, 2025, the power equipment industry rose by 8.19% over the past two weeks, outperforming the CSI 300 index by 7.19 percentage points, ranking second among 31 industries [12] - The wind power equipment sector increased by 8.31%, while the battery sector saw a rise of 12.48% [18] Valuation and Industry Data - The power equipment sector's PE (TTM) is 34.90 times, with sub-sectors like the motor sector at 67.83 times and the battery sector at 37.26 times [25] - The report provides detailed valuation metrics for various sub-sectors, indicating a significant premium over historical averages [25] Industry News - The report notes China's commitment to reducing greenhouse gas emissions and increasing the share of non-fossil energy consumption to over 30% by 2035 [39] - It emphasizes the government's push for large-scale applications of energy storage equipment, focusing on safety and efficiency [39] Company Announcements - The report includes announcements from companies like Datang Group regarding a major offshore wind power project and various corporate actions from firms like Goldwind Technology and Longi Green Energy [42][43] Weekly Perspective - The report suggests focusing on leading inverter companies benefiting from the development of new energy storage technologies, highlighting specific companies such as Guodian NARI and Sunshine Power [44]