Core Viewpoint - The 2026 Future Industries New Materials Expo (FINE 2026) aims to lead global innovation in new materials, emphasizing their critical role in the transformation of high-tech industries in China and worldwide [2][3]. Group 1: Event Overview - FINE 2026 will take place from June 10-12, 2026, at the Shanghai New International Expo Center, featuring a 50,000 square meter exhibition area and over 300 strategic and cutting-edge technology reports [3][7]. - The expo will focus on five common demands in future industries: advanced semiconductors, advanced batteries, lightweight materials, low-carbon sustainability, and thermal management [6][9]. Group 2: Market Opportunities - China has established global influence in sectors such as new energy vehicles, photovoltaics, wind power, lithium batteries, and robotics, creating significant market opportunities for new materials [5]. - The government has identified key areas for breakthroughs in the 14th Five-Year Plan, including embodied intelligence, 6G, quantum technology, and hydrogen energy [5]. Group 3: Event Features - The expo will feature six specialized thematic exhibition areas, including advanced semiconductors, advanced batteries, lightweight materials, and thermal management technologies [9][12]. - FINE 2026 is expected to attract over 100,000 professional visitors and will include 30+ forums with 300+ renowned experts sharing insights on cutting-edge technology trends and investment strategies [7][22]. Group 4: Networking and Collaboration - The event will facilitate direct interactions between over 5,000 end-users and quality investment institutions, promoting face-to-face orders, collaborations, and investment discussions [6][36]. - DT New Materials has a decade of experience and a network of over 200,000 contacts, providing extensive resources for participants [6][50].

Market Performance - The three major A-share indices collectively rose, with the Shanghai Composite Index increasing by 0.17% to 3831.43 points [1] - The Shenzhen Component Index rose by 0.83%, and the ChiNext Index increased by 1.21% [1] - The North Stock 50 index declined by 0.83% [1] Trading Volume - The total market turnover reached 10,402 billion yuan, which is a decrease of 993 million yuan compared to the previous day [1] - Over 3,700 stocks experienced declines during the trading session [1] Sector Performance - The lithium mining, battery, and non-ferrous metal sectors showed significant gains [1] - The tourism sector also performed well, contributing to the overall market rise [1] - Conversely, the Hainan, power grid equipment, and military equipment sectors saw declines [1]

Market Overview - Major U.S. stock indices experienced a significant decline on December 12, 2025, primarily driven by sell-offs in technology stocks due to concerns over an AI bubble narrative [1] - Investors reacted negatively to news from Broadcom, which indicated expected margin pressure in its AI business for the first quarter of fiscal 2026, despite exceeding fiscal fourth-quarter earnings estimates [1] Investment Strategy - In the current market environment, equity investors may favor dividend-growth stocks over high price-growth stocks, as companies with a history of raising dividends typically demonstrate strong financial health, providing a defensive hedge against economic uncertainty [2] - Stocks with a strong history of year-over-year dividend growth are suggested to form a healthier portfolio with greater potential for capital appreciation compared to simple dividend-paying stocks or those with high yields [2] Selected Dividend Growth Stocks - Five dividend growth stocks have been identified as potential solid choices for investment: TE Connectivity (TEL), Enersys (ENS), Donaldson (DCI), Lam Research (LRCX), and Leidos Holdings (LDOS) [3][9] - These stocks exhibit positive sales and earnings per share (EPS) growth histories, consistent dividend increases, solid fundamentals, and favorable valuation metrics [9] Characteristics of Dividend Growth Stocks - Stocks with a strong history of dividend growth are typically associated with mature companies that are less vulnerable to market volatility, thus providing a hedge against economic or political uncertainties [4] - These stocks are characterized by superior fundamentals, including sustainable business models, long-term profitability, rising cash flows, good liquidity, strong balance sheets, and value characteristics [5] - Although these stocks may not have the highest yields, they have historically outperformed the broader stock market and other dividend-paying stocks [6] Performance Metrics - Selected stocks must meet specific criteria, including: - 5-Year Historical Dividend Growth Greater Than Zero - 5-Year Historical Sales Growth Greater Than Zero - 5-Year Historical EPS Growth Greater Than Zero - Next 3-5 Year EPS Growth Rate Greater Than Zero [7] - Additional metrics include a Price/Cash Flow ratio less than the industry median and a 52-Week Price Change greater than the S&P 500 [8] Individual Stock Insights - **TE Connectivity (TEL)**: Expected fiscal 2026 revenue growth of 10.2%, long-term earnings growth rate of 12.3%, and an annual dividend yield of 1.23% [10][11] - **Enersys (ENS)**: Projected fiscal 2026 revenue growth of 4%, long-term earnings growth rate of 15%, and an annual dividend yield of 0.71% [11][12] - **Donaldson (DCI)**: Anticipated fiscal 2026 revenue growth of 3.4%, long-term earnings growth rate of 10%, and an annual dividend yield of 1.30% [12] - **Lam Research (LRCX)**: Expected fiscal 2026 revenue growth of 14.1%, long-term earnings growth rate of 20.3%, and an annual dividend yield of 0.65% [13] - **Leidos Holdings (LDOS)**: Projected fiscal 2025 revenue growth of 3.4%, long-term earnings growth rate of 11.6%, and an annual dividend yield of 0.84% [14]

Key Takeaways A December screen applies P/B, P/S, P/E and PEG to identify five value stocks above $5 with strong liquidity.StoneCo, General Motors, EnerSys, Deutsche Bank and Keros Therapeutics trade below industry P/B medians.The screen stresses comparing P/B within industries and pairing it with other valuation ratios.There are several different ways to find value stocks. Among these, the most popular are the price-to-earnings ratio (P/E) and price-to-sales ratio (P/S). However, investors often overlook t ...

Core Viewpoint - Guangfa Fund has developed a comprehensive index product line since 2008, focusing on ETF products since 2011, covering multiple markets including A-shares, Hong Kong stocks, and US stocks [1] Group 1: ETF Competition - Guangfa Fund collaborates with CITIC Securities to participate in the 7th ETF live competition, which started registration on December 1, 2025, and will run until January 31, 2026, with the competition commencing on December 8, 2025 [1] - The competition provides a platform for investors to showcase their practical skills, exchange investment strategies, and compete for substantial rewards [1] Group 2: Featured ETF Products - Guangfa Fund selected four key products to support participants in the competition: 1. Hong Kong Stock Connect Technology ETF (159262) closely tracks the Hang Seng Stock Connect Technology Index, focusing on the TMT sector, with major weights in Tencent Holdings, Alibaba-W, and Xiaomi Group-W, accounting for nearly 45% of the index [4] 2. Hong Kong Innovative Drug ETF (513120) tracks the CSI Hong Kong Innovative Drug Index, with a 90% weight in biopharmaceuticals and chemical pharmaceuticals, making it one of the purest innovative drug indices available [4] 3. Growth Enterprise Board ETF Guangfa (159952) tracks the Growth Enterprise Board Index, consisting of 100 stocks with high market capitalization and liquidity, focusing on strategic emerging industries [4] 4. Battery ETF (159755) leads in scale among similar products, tracking the National Index for New Energy Vehicle Batteries, focusing on the battery manufacturing and materials sector, with a solid-state content of nearly 60% [5] Group 3: Future Plans - Guangfa Fund aims to continue deepening its focus on index and ETF sectors, collaborating with partners like CITIC Securities to enhance the index investment ecosystem and help investors share in the long-term growth of the capital market [5]

Summary of Key Points from the Conference Call Industry Overview - The focus of discussions was on the lithium battery supply chain, renewable energy (solar, wind, and power grid), and Internet Data Center (IDC) development in China, indicating a growing interest in Energy Storage Systems (ESS) batteries and grid equipment [1][2] Core Insights - **ESS Demand Outlook**: Investors are optimistic about the demand for ESS, particularly for 2026, but express concerns regarding the sustainability of this growth in the mid- to long-term, especially in China where provincial subsidies play a significant role [2] - **CATL's Market Position**: Contemporary Amperex Technology Co., Ltd. (CATL) is viewed as a key beneficiary in the battery supply chain due to its dominant market share in ESS battery cell shipments. Investors are interested in CATL's competition with Korean manufacturers in the US market and the implications of the One Big Beautiful Bill Act (OBBBA) [3] - **Lithium Price Concerns**: There is a rising concern among investors regarding the outlook for lithium prices, especially following recent price increases for lithium carbonate and other battery materials. This has raised worries about potential margin pressures for battery cell manufacturers if they cannot pass on higher costs [3] Company-Specific Insights - **Wuxi Lead Intelligent**: There is heightened interest in battery equipment manufacturers like Wuxi Lead Intelligent, with investors inquiring about capital expenditure plans and trends in unit capex [4] - **Power Grid Equipment**: The power grid equipment sector in China is preferred over renewable energy, driven by strong domestic grid investment growth and overseas expansion opportunities. Investors are cautious about current valuations and are particularly interested in companies with significant overseas exposure [5] - **China IDC Market**: While there is long-term interest in the China IDC market, investors recognize that chip access is a near-term bottleneck for AI spending by Chinese Cloud Service Providers (CSPs). The demand for faster data center delivery has resulted in lower order visibility for third-party IDC operators [6] Additional Considerations - **Investor Queries**: Investors are curious about the order book, customer mix, and future equity financing timelines for DayOne, an unlisted entity in which GDS Holdings holds a 35.6% stake [8] - **Valuation Methodologies**: Target prices for various companies are based on different methodologies, including P/E ratios and market cap assessments, reflecting the analysts' expectations for future earnings growth [14][20][23][27] Risks Highlighted - **General Risks**: Potential risks affecting target prices include oversupply in the EV battery market, intensified competition, and regulatory changes impacting the e-cigarette market in China [15][20][23] - **Specific Risks for GDS Holdings**: Risks include lower-than-expected data center demand related to AI, slower overseas expansion, and supply chain disruptions due to geopolitical tensions [27] This summary encapsulates the key points discussed in the conference call, highlighting the current landscape and future outlook for the battery and energy sectors, as well as specific company insights and associated risks.

Core Insights - QuantumScape, valued at a market cap of $7.5 billion, specializes in solid-state lithium-metal batteries for electric vehicles and will transition from the New York Stock Exchange to Nasdaq on December 23 [1][2] Company Developments - The move to Nasdaq is framed as an opportunity to better serve shareholders and aligns QuantumScape with tech-focused companies like Tesla [2][4] - QuantumScape has achieved a significant milestone by unveiling its first real-world vehicle application and generating $12.8 million in customer billings during the third quarter, marking the first time the company has invoiced customers [5][8] - The company showcased its QSE-5 battery technology in the Ducati V21L electric race motorcycle at IAA Mobility in Munich, indicating a shift from laboratory testing to real-world applications [6][7] Production and Future Goals - QuantumScape shipped Cobra-based QSE-5 B1 sample cells during the quarter, indicating progress toward automotive-grade production standards [7] - The company is collaborating with PowerCo to achieve series production in a vehicle by the end of the decade, specifically by December 2029 [7]

Core Insights - QuantumScape Corp. has narrowed its full-year 2025 adjusted EBITDA loss forecast to $245-$260 million from a previous range of $250-$270 million, indicating improved cost control and execution [1] - The company generated over $12 million in customer billings, marking its first step into monetization after extensive R&D efforts [2] - Operating expenses in Q3'25 decreased to $115 million from $130 million year-over-year, while capital expenditures remained low at $9.6 million [3] - QuantumScape's new high-throughput Cobra separator process has been successfully implemented, supporting shipments of Cobra-based QSE-5 cells [4] - With $1 billion in cash, QuantumScape's financial runway extends through 2029, aided by an expanded partnership with Volkswagen's PowerCo [5] - The narrowed loss guidance reflects the company's increasing discipline and progress towards scaling its capital-light model [6] Competitive Context - Competitors like Solid Power and SES AI are also making strides in cost control and early commercialization [7] - Solid Power reduced its Q3 operating expenses to $29 million from $33.4 million, narrowing its operating loss to $24.4 million [8] - SES AI raised its 2025 revenue outlook to $20-25 million and improved its cost structure, with Q3 operating expenses falling to $22.3 million from $34.2 million [9] Market Performance - QuantumScape's shares have increased approximately 145% year-to-date, contrasting with a 2% decline in the industry [10] - The company has an average brokerage recommendation of 3.64 on a scale of 1 to 5, indicating a mixed outlook from analysts [13]

Market Overview - The U.S. stock market opened mixed with the Nasdaq down 0.60%, the Dow Jones up 0.19%, and the S&P 500 down 0.38% [1] - Oracle's stock fell over 14% as the company's Q2 revenue and cloud business income did not meet market expectations [1] - Disney's stock rose 0.4% following the announcement of a $1 billion equity investment in OpenAI [1] - Most popular Chinese stocks declined, with the Nasdaq Golden Dragon China Index down 0.43%, and Alibaba, iQIYI, and Xpeng Motors each falling over 2% [1] Company News - Microsoft plans to release a new AI model that aims to elevate the capabilities of intelligent agents [2] - Oracle's CEO stated that external estimates of the company's project spending are overestimated, with actual funding needs expected to be significantly lower than the projected $100 billion [3] - Samsung is ramping up preparations to produce Tesla's AI5 chips in the U.S. by recruiting experienced engineers to address complex wafer fabrication challenges [3] - The European Commission approved €623 million ($729.16 million) in state aid for Germany to support the construction of two semiconductor manufacturing plants [4] - SK On and Ford have agreed to terminate their joint venture structure in the U.S., with both companies independently operating their respective BlueOval SK production facilities [5] - Novo Nordisk's stock has fallen back to levels seen in 2021, with analysts cautiously optimistic about the company's valuation recovery despite a 50% drop this year [6]

Core Viewpoint - SK On has decided to terminate its joint venture with Ford Motor for two battery factories in the United States [1] Company Summary - SK On is a South Korean battery manufacturer [1] - The joint venture with Ford was focused on establishing battery production facilities in the U.S. [1] Industry Summary - The decision reflects a significant shift in the electric vehicle battery manufacturing landscape [1] - The termination of the joint venture may impact the supply chain and production capabilities for electric vehicle batteries in the U.S. [1]