Report Industry Investment Rating No relevant content provided. Core Views of the Report - Value style outperforms growth style and the overall market in the long - run, with better risk - return ratios [2][6]. - Value - style funds are scarce in the market, and fund managers need strong conviction and support to adhere to this style [14][16]. - Lan Xiaokang of China Europe Fund is a value - investment adherent. His China Europe Dividend Optimal has achieved excellent performance [2][17]. Summary by Directory 1. Value Style Fund Product Investment Value Overview 1.1 Value Style Performance: Better Risk - Return Ratio in the Long Run - Since 2012 (as of 2025/10/24), the Guozheng Value R has significantly outperformed the Guozheng Growth R and the Wind All - A, indicating the long - term superiority of the value style [6]. - The investment return of the value style is more stable, with a higher win - rate. From 2017 to 2025/10/24, the one - year rolling return win - rate of Guozheng Value R is 70.77%, compared to 56.50% for Guozheng Growth R [8]. - In terms of risk indicators such as yield, volatility, and maximum drawdown, the Guozheng Value R outperforms the Guozheng Growth R in different time periods, showing a better risk - return ratio [11]. 1.2 Scarcity of Value - Style Fund Products in the Market - Only 11 out of over 1700 active equity fund managers manage value - style funds that meet the defined criteria, and 4 of them are financial real - estate funds [14]. - Reasons for the scarcity include fund managers' subjective wavering, scale pressure, and inappropriate fund company assessment systems [15][16]. 2. Lan Xiaokang of China Europe Fund - A Value - Investment Adherent Seeking Maximum Investment Efficiency in Certain Returns 2.1 Background: Years of Research and Management Experience, Historical Performance Outperforming the CSI 300 - Lan Xiaokang has about 8.5 years of investment management experience, currently manages 4 funds with a total scale of 24.809 billion yuan [17]. - His fund manager index has outperformed the CSI 300, especially since 2021 [17]. 2.2 Investment Framework: Seeking Maximum Investment Efficiency under the Premise of Safety - Lan Xiaokang builds a systematic investment framework through top - down and bottom - up research, focusing on macro trends and individual stock fundamentals [19]. - He uses multiple investment strategies, including long - term, dividend, stable - return, hedging, and trend - reversal strategies, to seek differentiated excess returns [19]. 2.3 Representative Product: China Europe Dividend Optimal - Lan Xiaokang's China Europe Dividend Optimal has achieved a return of 169.82% since he took over in 2018/4/20, significantly outperforming its benchmark [20][22]. 3. Analysis of the Characteristics of China Europe Dividend Optimal 3.1 Performance: Leading in Return and Risk - Return Ratio - Since Lan Xiaokang took over, as of 2025/10/24, the cumulative return of China Europe Dividend Optimal is 169.82%, significantly outperforming the benchmark [24]. - From 2019 to 2025/10/24, the quarterly win - rate of positive returns is 74.1%. The quarterly win - rate of relative returns compared to the benchmark and Guozheng Value R is 77.8% and 74.1% respectively, with average quarterly excess returns of 3.82% and 2.58% [25]. - Since 2019, the annualized return of China Europe Dividend Optimal is 19.88%, ranking in the top 12% among similar products. The annualized volatility is 19.98%, ranking in the bottom 25%. The annualized Sharpe ratio and Calmar ratio are in the top 5% and 1.5% respectively [30]. 3.2 Industry Distribution: Timely Rotation with Good Results - The fund mainly invests in value - style sectors such as household appliances, non - bank finance, and real estate, and rotates among these sectors in a timely manner [34]. - Industry rotation operations have brought significant excess returns. For example, in 2024, the increase in bank holdings and the reduction in coal holdings contributed positive excess returns [38][42]. 3.3 Holding Characteristics: Moderate Concentration of Individual Stocks and Timely Allocation of Hong Kong Stocks - The top ten holdings of the fund account for 40% - 60%, and the top thirty holdings account for over 90%, with a moderate concentration of individual stocks [43]. - The fund has a low turnover rate, with a short - term increase in 2020 - 2021, presumably due to adjustments in response to market changes [43]. - The fund mainly focuses on large - and medium - cap stocks, and has gradually increased its allocation to Hong Kong stocks since 2023, with nearly 50% of stock positions in Hong Kong stocks as of the 2025 semi - annual report [45]. 3.4 Return Breakdown: Significant Contribution from Stock Selection - Stock selection is the main source of excess returns for the fund, and trading also contributes a small amount of excess returns [48]. - The absolute return of the fund comes from multiple sectors, with significant contributions from the cyclical sector. In terms of relative returns, the cyclical and financial real - estate sectors have made significant contributions [53]. 3.5 Product Feature Summary - The fund focuses on value - style sectors and achieves good results through timely industry rotation [58]. - It has an outstanding risk - return ratio, with leading returns and low volatility [58]. - Stock selection is the main source of excess returns, mainly from cyclical and financial real - estate innovation sectors [58]. 4. Fund Manager's Ability Circle: Outstanding Hidden Trading and Industry Rotation Abilities - Lan Xiaokang has a moderately diversified industry allocation and a moderately concentrated individual - stock allocation [59]. - His stock - selection ability is strong, ranking in the top 20% among similar products since 2020 [59]. - His hidden trading ability is excellent, ranking in the top 10% among similar products [59]. - His industry rotation ability is stable, ranking in the top 15% among similar products [60]. - His ability to invest in both upward and downward markets is good, being able to seize opportunities in upward markets and defend well in downward markets [60].

Group 1 - A-shares experienced a slight decline on October 28, with the Shanghai Composite Index losing the 4000-point mark, while the shipbuilding sector saw significant gains [1] - The main funds in the A-share market had a net outflow of 34.079 billion yuan, with five sectors experiencing net inflows, including defense and military, building materials, and household appliances [1] - The power equipment sector had the highest net outflow, amounting to 10.889 billion yuan, followed by non-ferrous metals, communications, and machinery equipment, each exceeding 3 billion yuan in outflows [1] Group 2 - Nine stocks saw net inflows exceeding 400 million yuan, with 66 stocks having net inflows over 100 million yuan [2] - Sanhua Intelligent Controls led with a net inflow of 1.098 billion yuan, reaching a historical high in stock price, while Multi-Finance saw a net inflow of 956 million yuan [3] - Newly listed stocks N He Yuan-U and N Yi Cai-U attracted net inflows of 825 million yuan and 693 million yuan, respectively, with N He Yuan-U being a leader in plant bioreactor technology [4] Group 3 - 59 stocks experienced net outflows exceeding 200 million yuan, with notable outflows from ZTE, Shenghong Technology, and others, each exceeding 500 million yuan [5] - In the last trading session, the household appliances, pharmaceutical, basic chemicals, and media sectors saw net inflows exceeding 100 million yuan [6] - Individual stocks like Sanhua Intelligent Controls and Runhe Software had significant net inflows in the last trading session, while stocks like Zhongji Xuchuang and Tongling Nonferrous Metals faced notable outflows [7]

Market Overview - The two markets experienced a significant net outflow of 28.615 billion yuan, with 1,791 stocks seeing net inflows and 2,975 stocks experiencing net outflows [1] - The Shanghai Composite Index closed down by 0.22% [1] Industry Performance - Eight industries saw net inflows from large orders, with the defense and military industry leading with a net inflow of 2.507 billion yuan and an index increase of 1.07% [1] - The basic chemical industry followed with a net inflow of 1.202 billion yuan and a slight increase of 0.10% [1] - A total of 23 industries experienced net outflows, with the electronics sector facing the largest outflow of 10.562 billion yuan, followed by non-ferrous metals with 6.922 billion yuan [1] Individual Stock Performance - A total of 35 stocks had net inflows exceeding 200 million yuan, with C禾元-U leading at 1.326 billion yuan and a price increase of 213.49% [2] - Other notable stocks with significant inflows include 多氟多 (1.266 billion yuan, 10.01% increase) and 三花智控 (1.152 billion yuan, 8.21% increase) [2] - Stocks with the largest net outflows included 寒武纪-U with 2.218 billion yuan and a price decrease of 3.40%, followed by 北方稀土 with 1.836 billion yuan [4] Summary of Net Inflows - The top stocks by net inflow are as follows: - C禾元-U: 1.326 billion yuan, 213.49% increase [2] - 多氟多: 1.266 billion yuan, 10.01% increase [2] - 三花智控: 1.152 billion yuan, 8.21% increase [2] Summary of Net Outflows - The top stocks by net outflow are as follows: - 寒武纪-U: -2.218 billion yuan, -3.40% decrease [4] - 北方稀土: -1.836 billion yuan, -4.20% decrease [4] - 中际旭创: -1.160 billion yuan, 0.80% increase [4]

Core Insights - The report indicates a significant increase in the allocation of active equity funds, with a quarter-over-quarter rise of 1.46 percentage points to 87.43% as of Q3 2025 [1][2][3] Fund Positioning - Active equity funds saw an increase in positions across various types: ordinary equity funds rose by 0.93 percentage points, mixed equity funds by 1.33 percentage points, and flexible allocation funds by 1.87 percentage points [1][3] - The allocation to the ChiNext board increased significantly by 4.70 percentage points to 23.7%, while the STAR Market allocation grew by 2.12 percentage points to 17.45%. Conversely, the main board allocation decreased by 6.71 percentage points to 58.51% [1][3] Sector Allocation - The sectors with the highest increases in allocation include electronics (+6.77 percentage points), telecommunications (+3.96 percentage points), and power equipment (+2.42 percentage points). The technology growth sector is identified as a key area for increased investment in Q3 [3] - The sectors with the largest reductions in allocation are banking (-3.05 percentage points), food and beverage (-1.81 percentage points), and home appliances (-1.62 percentage points) [3] Sub-sector Insights - In the secondary industry, the top sectors for increased allocation are communication equipment (+4.45 percentage points), consumer electronics (+3.09 percentage points), and semiconductors (+2.34 percentage points). The sectors with the largest reductions include white goods (-1.67 percentage points), city commercial banks (-1.45 percentage points), and liquor (-1.02 percentage points) [3] Individual Stock Movements - The stocks with the highest increases in allocation include Zhongji Xuchuang, Industrial Fulian, Xinyi Technology, Cambrian, and Luxshare Precision, with increases of 2.17, 2.03, 1.92, 0.91, and 0.63 percentage points respectively. The stocks with the largest decreases in allocation are China Merchants Bank, Kweichow Moutai, and Gree Electric Appliances [3] Hong Kong Market Insights - In the Hong Kong market, the allocation of active equity funds slightly decreased by 0.76 percentage points to 19.09%. The sectors with increased allocation include healthcare and materials, while reductions were seen in telecommunications, finance, and energy [1][3] - The stocks with the most significant increases in allocation in the Hong Kong market are Alibaba, SMIC, and Tencent, while Xiaomi was notably reduced [1][3]

Investment Rating - The investment rating for the company is "Outperform" [1] Core Insights - The company reported a revenue of 2.384 billion yuan for the first three quarters of 2025, a year-on-year decline of 0.6%. The net profit attributable to the parent company was 89 million yuan, down 14.7% year-on-year [4][7] - The company faced significant pressure in Q3 2025, with a revenue of 699 million yuan, a 10% year-on-year decline, and a net profit of 20 million yuan, down 44% year-on-year [7] - The company is focusing on its core brands, with the "Philips" brand showing double-digit growth in water health products, achieving a revenue of 657 million yuan in H1 2025, a 14% year-on-year increase [7] - The gross margin improved to 32.01% in Q3 2025, an increase of 0.80 percentage points year-on-year, despite an increase in expense ratios [7] Financial Data and Profit Forecast - The total revenue forecast for 2025 is 3.589 billion yuan, with a projected year-on-year growth of 1.6% [6] - The net profit forecast for 2025 is 144 million yuan, with a year-on-year growth of 1.1% [6] - The earnings per share for 2025 is estimated at 0.31 yuan, with a projected price-to-earnings ratio of 32 times [6] - The company anticipates a gradual improvement in profitability, with net profits expected to reach 186 million yuan by 2027 [6][7]

Core Insights - Delmar (301332.SZ) reported its Q3 2025 results on October 28, 2025, highlighting significant institutional investor activity [1] Institutional Holdings - As of October 27, 2025, a total of 9 institutional investors disclosed holdings in Delmar A-shares, with a combined holding of 273 million shares, representing 59.08% of Delmar's total equity [1] - The institutional holding percentage decreased by 2.80 percentage points compared to the previous quarter [1] Public Fund Activity - In this reporting period, 82 public funds were not disclosed compared to the previous quarter, including major funds such as Dachen CSI 360 Internet + Index A and Guotai CSI All Share Home Appliances ETF [1] Foreign Investment Trends - One foreign fund, Ouzhizhi Co., Ltd., reduced its holdings in Delmar, with a decrease of 0.10% compared to the previous quarter [1]

Investment Rating - The report maintains a "Recommended" rating for Shun'an Environment (stock code: 002011) [2][5][56] Core Views - The company has shown steady performance with a total revenue of 9.723 billion yuan, a year-on-year increase of 4.15%, and a net profit attributable to shareholders of 769 million yuan, up 18.46% year-on-year [5][6] - The gross profit margin has been improving, with a gross margin of 17.91% for the first three quarters of 2025, and 19.25% for Q3 2025, reflecting effective cost control measures [5][12] - The company is actively promoting new growth areas in automotive thermal management and energy storage thermal management, with significant orders from major clients [7][56] Financial Performance Summary - **Revenue Forecasts**: - 2024A: 12.678 billion yuan - 2025E: 13.387 billion yuan (growth of 5.6%) - 2026E: 14.896 billion yuan (growth of 11.3%) - 2027E: 16.735 billion yuan (growth of 12.3%) [2][56] - **Net Profit Forecasts**: - 2024A: 1.045 billion yuan - 2025E: 1.163 billion yuan (growth of 11.3%) - 2026E: 1.343 billion yuan (growth of 15.5%) - 2027E: 1.536 billion yuan (growth of 14.3%) [2][56] - **Earnings Per Share (EPS)**: - 2024A: 0.98 yuan - 2025E: 1.09 yuan - 2026E: 1.26 yuan - 2027E: 1.44 yuan [2][56] - **Price-to-Earnings (PE) Ratios**: - 2024A: 13.81 - 2025E: 12.40 - 2026E: 10.74 - 2027E: 9.39 [2][56] Business Segment Performance - **Automotive Thermal Management**: Revenue reached 481 million yuan in the first half of 2025, a year-on-year increase of 81.84% [6][8] - **Refrigeration and Air Conditioning Components**: Revenue of 5.412 billion yuan in the first half of 2025, up 8.8% year-on-year [6][8] - **Refrigeration Equipment**: Revenue declined by 31.43% to 483 million yuan in the first half of 2025 [6][8] Market Conditions - The domestic air conditioning market is expected to face pressure in the coming months due to reduced support from the old-for-new policy and high base effects from the previous year [5][24] - The company has launched a new stock incentive plan, aiming for significant growth in net profit over the next three years, reflecting confidence in new business developments [5][6]

Core Conclusions - The report explores the long-term trend of excess returns across various primary industries, identifying food and beverage, home appliances, and electrical equipment as the sectors with the highest historical likelihood of achieving sustained excess returns over three years [1][2] - The consumer sector shows a greater probability of long-term excess returns compared to other industries, attributed to its stable "ballast" characteristics [2][10] - Cyclical industries generally have a lower probability of achieving sustained excess returns due to short-term inventory cycles, while the electrical equipment sector benefits from ongoing demand, leading to a higher historical probability of long-term excess returns compared to other cyclical industries [2][15] Industry Analysis Food and Beverage, Home Appliances, and Electrical Equipment - These three industries have the highest sample counts for "three-year trend excess," indicating a historical tendency for long-term excess returns [2][8] - The excess returns in food and beverage and home appliances can be divided into two phases: one of pricing boom and another of pricing stability, with ROE showing rapid growth and stability exceeding the overall market [10][11] Electrical Equipment - The electrical equipment sector has benefited from two peaks in power and grid construction from 2003 to 2010, and from 2019 to 2023, driven by domestic carbon neutrality initiatives and global grid reinvestment [15][20] - The core logic is based on the "resonance of global grid capital expenditure," which supports the sector's long-term growth [15] TMT Industries (Technology, Media, Telecommunications) - Currently, the industries that have achieved excess returns for three consecutive years include electronics, communications, media, non-bank financials, and banking [2][20] - The continuation of excess returns in TMT sectors is influenced by the market beta at the time of excess formation and the industry's own profit cycle [3][20] - The electronics sector, despite significant underperformance from late 2014 to mid-2015, maintained a positive three-year rolling excess return due to its resilient fundamentals [3][20] - The media sector often fails to extend excess returns into the fourth year due to fundamental challenges and policy shifts affecting the industry [3][20] - The telecommunications sector has shown consistent excess returns, particularly during the AI industry trend, which is expected to continue [21][23] Financial Sector - The probability of non-bank financials and banking sectors extending their excess returns into the fourth year after three consecutive years is relatively low, at 4% and 6% respectively [3][32] - Excess returns in the financial sector typically occur during market risk-off periods or when policy expectations rise, but can diminish if market focus shifts to high-growth sectors [32]

Group 1 - The three major indices opened high, with the technology sector continuing its strong performance, particularly the Robot Index ETF (560770) which rose by 1.29% [1] - The Robot Index ETF (560770) has seen a net inflow of 654 million yuan since October, with a net subscription of 120 million yuan over the last three days, and its share has increased by over 111.4% since its listing on September 1, reaching a new high of over 2.07 billion yuan [1] - The demand for robots is robust, with significant contributions from the development and export of industrial and service robots to industrial upgrades [1] Group 2 - According to the latest research from Shenwan Hongyuan, the structural characteristics of A-shares in the five-year planning period will reflect the strongest direction in AI, robotics, and semiconductors by 2025, with a positive outlook for technology leaders in the fourth quarter of 2025 [2] - The Robot Index ETF (560770) tracks the CSI Robot Index, which includes major stocks such as Huichuan Technology, iFlytek, Roborock, Dahua Technology, and others [2] - The top three industries in the CSI Robot Index account for 83.22%, with mechanical equipment being the largest at 55.89%, followed by computers at 18.9% and home appliances at 8.43% [2]

Investment Rating - The report does not explicitly state an investment rating for the industry, but it suggests focusing on sectors with relatively low valuations such as liquor, hotels, and restaurants, indicating a positive outlook for these areas [2]. Core Insights - The consumer sector showed mixed performance in the week of October 20-24, with home appliances, social services, and retail sectors experiencing gains, while food and beverage sectors saw declines [2]. - In September, the year-on-year growth rate of retail sales was 3.0%, with a slight month-on-month decline of 0.4 percentage points. Essential consumption categories like grain and oil, and daily necessities remained stable, while optional consumption categories like cosmetics and jewelry showed signs of recovery [2]. - The export of home appliances continued to decline in September, with a total export volume of 266 million units, down 3.7% year-on-year. However, some categories like refrigerators and washing machines showed month-on-month improvements [2]. Summary by Sections Market Weekly Review - The consumer sector's performance varied, with notable gains in home appliances and social services, while food and beverage sectors faced declines [2][12][13]. Industry News and Key Company Announcements - Haidilao launched a new sushi brand, indicating its expansion into diverse dining sectors [14]. - The World Gold Council reported record inflows into physical gold ETFs in September, highlighting strong demand in the gold market [16]. - Coca-Cola HBC announced a significant acquisition in Africa, indicating strategic growth in emerging markets [16]. - Various companies reported their quarterly earnings, with some like Zhujiang Beer and Jeya showing revenue growth, while others like Fuhua and Shuangta Foods faced declines [16][19].