Investment Rating - The report suggests a cautious approach towards new stocks, recommending to focus on relatively low-priced targets under the current low-risk preference environment [1][2][12] Core Insights - The new stock market has shown continued weakness due to overseas geopolitical disturbances, with the average decline of new stocks since 2025 being approximately -2.6%, and only about 25.5% of new stocks achieving positive returns [1][6][28] - The report emphasizes the importance of monitoring overseas situations, as they significantly impact market sentiment and risk appetite, particularly with the upcoming earnings season [2][12] - Investment opportunities may arise from sectors with high safety margins and from the rotation of capital towards relatively low-priced stocks, especially in industries like AI, commercial aerospace, and energy exports [3][12] Summary by Sections New Stock Insights - The new stock market has been under pressure, with investment enthusiasm nearing an all-time low, and the average first-day gain for new stocks dropping below 100% [1][25][26] - The average issuance price-earnings ratio for new stocks has slightly increased to 21.6X, indicating a stable supply but a cautious market [5][22] Recent New Stock Performance - Last week, the average first-day gain for newly listed stocks was 93.8%, with a significant drop in trading enthusiasm compared to previous months [25][18] - The average secondary market decline for newly listed stocks was -9.6%, reflecting ongoing volatility and a lack of clear undervaluation in the market [26][28] Upcoming New Stocks - Several new stocks are set to be listed soon, including Yuelong Technology and Longyuan Co., with an average issuance price-earnings ratio of 21.8X for upcoming listings [4][35] - The report encourages active participation in new stock subscriptions, despite the current market conditions [36][35]

1. Report Industry Investment Rating No relevant content found. 2. Core Viewpoints of the Report - This week, sentiment indicators such as the VIX index continue to indicate a decline in global risk appetite, but the decline of the A - share market has narrowed, reflecting that the negative impact of external factors on the A - share market has weakened. Leverage funds' activity has dropped to a low level, ETF funds have continued to flow in, and foreign capital is optimistic about Chinese assets, even siphoning funds from other markets [2]. 3. Summary by Directory 3.1 Two - margin trading - The proportion of two - margin trading volume to A - share trading volume has dropped from 9.2% to 9.0%, reaching the average level of the past three years, close to the end of June 2025. The two - margin balance has generally decreased from 2.63 trillion to 2.62 trillion, falling on Monday and Tuesday and then rebounding slightly [2]. - Index component two - margin trading has seen continuous net outflows; most industries have de - leveraged, with national defense and military industry, agriculture, forestry, animal husbandry and fishery, commerce and retail, media, and automobile having relatively large de - leveraging amplitudes, while industries such as coal, comprehensive, and public utilities have increased leverage [3]. - Stocks with a market value of over 3 billion have de - leveraged, and small - cap stocks have a relatively large de - leveraging amplitude [3]. - Popular stocks de - leveraged on Monday and Tuesday and increased leverage from Wednesday to Friday [3]. 3.2 ETF funds - CSI 300, SSE Composite Index, ChiNext, Science and Technology Innovation 50, and CSI 1000 ETFs have seen net inflows this week, while SSE 50 and CSI 500 ETFs have had small net outflows. Except for the CSI 500 ETF, other representative ETFs had a large amount of funds bottom - fishing when they had a large decline on Monday [4]. 3.3 Foreign capital - This week, foreign capital has continued to flow into the Chinese market, which can be cross - verified from several perspectives: the trading volume proportion of northbound funds has increased from 13.2% to 13.3% on a month - on - month basis; the median weekly increase or decrease of northbound active stocks is - 0.1%, and the average is 0.5%, outperforming the entire A - share market; from March 18th to March 25th, foreign capital has flowed out of the Japanese, South Korean, and US markets and into the Chinese market [5].

Group 1 - The report highlights that the overseas situation remains a key factor affecting the new stock market, with a low risk appetite suggesting a focus on relatively low-positioned directions [1][12] - The new stock market has shown weak performance over several weeks, with an average decline of approximately 2.6% since 2025, and only about 25.5% of new stocks achieving positive returns [1][28] - The report suggests that potential investment opportunities may arise from high-low rotation in relatively low-positioned stocks, especially if the overseas situation stabilizes [2][12] Group 2 - Specific investment directions include focusing on industries with long-term themes such as AI computing power, commercial aerospace, and energy exports, which have significant growth potential [3][12] - The report also mentions the importance of monitoring sectors like innovative pharmaceuticals and new consumption, which may see periodic interest and can be strategically rotated based on expected catalysts [3][12] Group 3 - Upcoming new stocks include companies like Yuelong Technology, Longyuan Co., and Taijin New Energy, which are expected to be listed soon [4][35] - The average issuance price-earnings ratio for new stocks is reported to be around 21.8X, indicating a stable pricing environment despite the low risk appetite in the market [7][35] - The report emphasizes the need for caution in the short term due to the overall market risk appetite being relatively low, which may affect the performance of newly listed stocks [7][35]

Core Viewpoints - The report highlights that the energy storage market is experiencing a significant growth phase, with domestic new energy storage projects reaching a scale of 3.56GW/8.19GWh in February 2026, representing a year-on-year increase of 120%/95% [11][12] - The lithium battery sector is expected to see a turning point in domestic demand, with Q1 2026 performance projected to achieve substantial growth, driven by improved market conditions and the implementation of local replacement subsidies [13][14] - The power equipment sector is witnessing stable prices and increased market share concentration, with exports continuing to show high demand and growth, particularly in smart meters and other equipment [15][19] Industry Insights Energy Storage - The energy storage market is expected to accelerate in 2026, with a notable increase in independent storage projects, which accounted for 90% of new installations in February 2026, showing a year-on-year growth of 313% in capacity [11][12] - Global energy storage orders are also on the rise, with Chinese companies signing contracts totaling over 33.5GWh in the first two months of 2026, marking a year-on-year increase of over 45% [12] - The report emphasizes that the energy crisis and government subsidies are driving growth in both domestic and international markets, with significant demand emerging in Europe, Southeast Asia, and the Americas [12] Lithium Batteries - The report indicates that the domestic demand for lithium batteries is approaching a turning point, with Q1 2026 expected to show high growth in performance, particularly for companies like Fuxiang Pharmaceutical, which anticipates a net profit increase of 2222.67%-3250.01% year-on-year [13][14] - The report notes that the lithium battery supply-demand relationship has been improving since Q4 2025, with profitability in various lithium battery materials showing recovery [14] - High oil prices are expected to further enhance the penetration rate of new energy vehicles, benefiting both the lithium battery and energy storage markets [14] Power Equipment - The smart meter market is entering a phase of price stability and increased volume, with the State Grid's procurement for 2026 indicating a significant increase in demand for smart meters, with a total of 3,228 million units expected to be procured, a 90% increase from the previous batch [15][16] - The report highlights that the export of power equipment has shown strong growth, with total exports reaching 19.151 billion yuan in the first two months of 2026, a year-on-year increase of 37.23% [19] - The concentration of market share among leading companies is expected to continue, driven by new standards that require higher product performance [17][18] Investment Recommendations Energy Storage - The report suggests focusing on leading companies in the energy storage sector, including Airo Energy, GoodWe, and Jinlang Technology, as the demand for household storage and large-scale storage is expected to exceed expectations [21] Lithium Batteries - Investment strategies should focus on companies that are likely to benefit from price increases and performance growth in Q1 2026, with recommendations for materials and battery manufacturers such as Ningde Times and DeFu Technology [22] Power Equipment - The report recommends monitoring companies in the smart meter sector, such as HaiXing Electric and Samsung Medical, as well as those involved in the main network and distribution equipment, given the expected growth in both domestic and export markets [23]

Macro and Financial - The draft of the Financial Law of the People's Republic of China is open for public consultation, marking a significant upgrade for the insurance industry with a focus on coordinating regulations across various financial sectors [2][3] - China's average daily token usage has surpassed 140 trillion, indicating a rapid growth and the emergence of a new value system in the AI industry, driven by the marketization of data elements [4] - The central government disclosed childcare subsidy funds for 31 provinces for the first time, with amounts ranging from 4 billion to 5 billion yuan for several provinces, reflecting the implementation of a new subsidy system for children under three years old [5] Capital Market - Rising energy prices have led to stagflation expectations, prompting central banks to reconsider interest rate hikes, which could negatively impact major asset classes [6] - The U.S. stock market has experienced significant declines while oil prices have surged, indicating a potential turning point in financial markets as investors shift focus from short-term inflation fears to long-term economic stagnation concerns [9] - The World Gold Council has noted a significant drop in gold prices, reminiscent of the 2008 and 2020 crises, with rising bond yields exerting pressure on gold [10] Industry Insights - Huawei's head of the Pangu model has announced his departure, potentially to pursue entrepreneurship in the AI sector [13] - The International Energy Agency (IEA) has issued recommendations for oil conservation in response to global supply disruptions, emphasizing behavioral changes rather than large-scale infrastructure investments [14] - China Telecom is transitioning to a token-based business model, aiming to integrate technology and talent to enhance AI service offerings [15] - Hanwang Technology's chairman discussed the future of bionic flight technology, emphasizing its potential applications in various sectors [16][17] - A report from Dongwu Securities highlights that the U.S. power investment is driven by the need for high-voltage infrastructure, with expectations of over $75 billion in investments in the next 5-10 years, benefiting Chinese power equipment manufacturers [18]

Investment Rating - The industry rating is "Outperform the Market" [6] Core Insights - The report emphasizes the acceleration of global green energy transition and highlights the potential of lithium battery and photovoltaic sectors [2][3][4][19][49][57] Summary by Sections 1. New Energy Vehicles and Lithium Battery Sector - In March, the retail penetration rate of new energy vehicles recovered to over 50%, with an estimated retail volume of approximately 1.7 million narrow passenger vehicles, marking a 64.5% month-on-month increase [9][10] - Rongjie Co. plans to invest 1.1 billion yuan to expand production capacity for 50,000 tons of high-end artificial graphite annually [10] 2. New Energy Generation Sector 2.1 Photovoltaic Sector - SpaceX's announcement of a 100 GW space photovoltaic plan indicates a shift towards P-type HJT technology, positioning China as a core supplier in this trillion-dollar market [19][20][21] - The report notes that HJT technology's advantages, such as lightweight and low cost, enable it to penetrate high-value aerospace markets [19][21] 2.2 Wind Power Sector - Wind power installations showed rapid growth in January-February 2026, with Guangdong accelerating offshore wind power construction [33][34] - The report highlights that the cumulative installed capacity of wind power reached 650 million kW, a year-on-year increase of 22.8% [34] 2.3 Nuclear Fusion Sector - Anhui Province's "14th Five-Year Plan" elevates nuclear fusion energy to a top priority, marking a significant milestone in provincial-level planning [4][43][44] - The plan aims to establish a fusion energy experimental device by 2028 and create a fusion science innovation demonstration zone in Hefei [44][45] 3. Energy Storage Sector - Henan's new energy storage policy introduces a diversified revenue mechanism, aiming for a 23 GW installation target by 2030 [49][50] - The report notes that the pricing of energy storage cells is rising due to tight supply and geopolitical factors affecting raw material costs [51] 4. Power Equipment Sector - The report highlights the formal operation of the China-Laos 500 kV interconnection project, which is expected to boost orders for high-voltage equipment manufacturers [57][58] - The investment climate for power grids is improving, with multiple high-voltage projects being expedited across various regions [58]

Group 1: Report Industry Investment Rating - Not provided in the given content Group 2: Core Viewpoints of the Report - This April, the A-share market may be volatile and strong, and the slow-bull trend remains unchanged. The economy and corporate profits are likely to continue to recover, policies may remain positive, external risks may ease, domestic liquidity may remain loose, and stock market funds may flow back [2][10][20]. - This April, the technology and cyclical styles may be relatively dominant, and the large-cap and small-cap styles may be relatively balanced [2]. - In April, it is recommended to allocate high-quality technology and some cyclical industries at low prices [2]. Group 3: Summary According to the Directory I. A-share Slow-Bull Continues in April (1) Core factors affecting the A-share market's performance in April are fundamentals, policies, and external events - Since 2010, the Shanghai Composite Index has only risen in April in 6 out of 15 years. Economic and profit fundamentals are the core factors determining the A-share market's performance in April. Rising year-on-year growth rates of real estate sales, social retail, and exports may lead to an increase in the Shanghai Composite Index in April, while the impact of the growth rates of industrial enterprise profits and A-share first-quarter report earnings on the rise of the Shanghai Composite Index is not obvious. Policies and external events also have an important impact on the A-share market's performance in April [2][5]. (2) If the A-share market adjusts due to external events in February - March, it may be volatile and strong in April - After 5 major external events in February - March since 2000, the A-share market started to recover from a low level in the first half of April in 4 cases, with an average decline of 0.5% in April (compared to an average decline of 2.2% in March). The A-share market's relatively strong performance in April is mainly driven by a significant decline in sentiment and the return of foreign capital [8]. (3) The A-share market may be volatile and strong in April this year, and the slow-bull trend remains unchanged - In April, the economy may continue to recover. Consumption growth may stabilize, infrastructure and manufacturing investment growth may increase, and exports may maintain a high growth rate. Corporate profits may also continue to rise, with the year-on-year growth rate of PPI and the earnings growth rate of A-share first-quarter reports likely to continue to increase [10]. - Policies in April may remain positive, and external risks may ease marginally. The "Two New" and "Two Important" policies may be implemented more quickly, and the central bank may continue to implement loose monetary policies. The A-share market may have fully priced in the risks of the US - Iran conflict [20]. - Domestic liquidity in April may remain loose, and stock market funds may flow back. The Fed is less likely to cut interest rates this year, but the US economy and employment may remain weak, and the RMB exchange rate may remain strong. The central bank may increase capital injection in April. Historically, foreign capital often flows into the market in April, and this year, with the easing of risks and the recovery of the economy and corporate profits, stock market funds such as margin trading and foreign capital may flow back [21][22]. II. Industry Allocation: Allocate High-Quality Technology and Some Cyclical Industries at Low Prices in April (1) The technology and cyclical styles may be relatively dominant in April, and the large-cap and small-cap styles may be relatively balanced - Historically, the stable and financial styles often lead the market in April, mainly driven by policies and external events. However, this April, the technology and cyclical styles may be relatively dominant because the marginal impact of external shocks on the A-share market may decrease, policies supporting technological innovation may be further implemented, and the cyclical and technology hardware industries may continue to be prosperous [31]. - Historically, large-cap stocks usually outperform in April. However, this April, the large-cap and small-cap styles may be relatively balanced. The high profits of cyclical and technology industries in April may be beneficial to small-cap stocks, the difficult large-scale easing of overseas liquidity expectations may be beneficial to large-cap stocks, and domestic policies are favorable to small-cap stocks [33]. (2) The technology and cyclical industries may return to the main line in April - After the A-share market adjusts due to previous negative shocks, some high-quality technology and cyclical industries may still be dominant in April. Historically, after major external events in February - March, the technology growth and cyclical industries generally do not have excess returns in April, but some technology and cyclical industries with high performance growth rates may still be relatively dominant. Currently, industries such as electronics, communication, non-ferrous metals, and power equipment may be relatively dominant [36]. (3) The valuations of power equipment and media in the growth sector, and non-bank finance in the dividend sector are relatively cost-effective - Currently, the predicted PEGs of power equipment, media, and automobiles in the first - level growth industries are relatively low, at 0.76, 0.86, and 1.10 respectively. In the second - level growth industries, the predicted PEGs of nautical equipment, games, commercial vehicles, and batteries are relatively low, at 0.25, 0.41, 0.61, and 0.71 respectively [39][41]. - Currently, the valuation historical quantiles of non-bank finance, food and beverage, and agriculture, forestry, animal husbandry and fishery in the first - level dividend industries are relatively low, at 0.0%, 9.0%, and 13.2% respectively. In the second - level dividend industries, the valuation historical quantiles of insurance, white goods, and securities are relatively low, at 0.0%, 1.3%, and 7.1% respectively [43][46]. (4) It is recommended to allocate high-quality technology and some cyclical industries at low prices in April - It is recommended to allocate industries with upward policy and industrial trends, such as new energy (AI power, energy storage), communication (AI hardware), electronics (semiconductors, AI hardware), non-ferrous metals, chemicals, military (commercial space), and innovative drugs at low prices. These industries have various industry events and positive trends in April [48]. - It is also recommended to allocate low - valuation dividend industries such as coal, power, and banks at low prices. These industries have positive production data and industry events in April [53].

Group 1 - The report highlights that the market may be overly optimistic about the quick resolution of the US-Israel-Iran conflict, indicating a significant expectation gap regarding the duration of the conflict and the situation in the Strait of Hormuz, which directly impacts oil prices and subsequently affects global asset prices [1][10]. - The current phase of the US-Israel-Iran conflict has transitioned from pure battlefield engagement to a "fighting while negotiating" scenario, creating a precarious political balance that complicates investment decisions [1][12]. Group 2 - The report introduces two volatility indicators, OVX and VIX, as essential tools for institutional investors to navigate the current geopolitical uncertainties. OVX measures the market's expectation of oil price volatility, while VIX gauges the expected volatility of the S&P 500 index, representing economic recession risks [2][14]. - A rapid increase in OVX coupled with a lagging VIX suggests that risks are still concentrated in the energy sector and have not yet fully transmitted to global macro credit risks or earnings expectations. A simultaneous upward movement in both indicators may signal a liquidity crisis or global economic recession triggered by geopolitical risks [2][14]. Group 3 - The investment strategy is categorized into four quadrants based on the relationship between OVX and VIX, providing tailored recommendations for different market conditions: 1. High OVX and fluctuating VIX suggest a local energy crisis, recommending an overweight in traditional energy and energy alternatives, particularly in sectors like power equipment and coal [3][26]. 2. High OVX and rapidly rising VIX indicate systemic recession or liquidity risks, prioritizing defensive strategies [3][26]. 3. A peak and decline in OVX with a downward-trending VIX suggest a transition to technology growth investments, recommending sectors such as computing power, semiconductors, and AI-related themes [3][26]. 4. A declining OVX with an unusually high VIX indicates the end of geopolitical tensions, but the impact of high oil prices on the economy persists, suggesting a shift towards high-dividend and low-volatility investments [3][26].

Group 1 - The core viewpoint of the article is that China Oriental Group's subsidiary, Qingdao Huijintong Electric Equipment Co., Ltd., reported a decline in financial performance for the year ending December 31, 2025, with significant reductions in both revenue and net profit [1] Group 2 - The total operating revenue for Huijintong was RMB 4.182 billion, representing a year-on-year decrease of 9.44% [1] - The net profit attributable to the parent company's shareholders was RMB 103 million, which is a year-on-year decrease of 33.39% [1] - The earnings per share (EPS) reported was RMB 0.3038 [1]

Group 1 - The company is a rare leader in the field of external insulation for ultra-high voltage stations in China, with a domestic market share exceeding 80% [4] - In recent years, the company has achieved continuous breakthroughs in overseas markets, with market shares in North America and Europe reaching 50% [4]