Core Views - The A-share market is experiencing a weak and volatile trend, with geopolitical risks in the Middle East acting as a direct trigger for the recent adjustments [2][8] - Concerns over energy supply uncertainties are impacting global inflation expectations, leading to fears that persistently high oil prices will force major central banks to maintain a tightening stance [2][8] - The market's perception of the duration of geopolitical conflicts is shifting from a belief in short-term and localized conflicts to concerns about prolonged and complex situations [2][8] Market Overview - On Thursday, the three major indices of the A-share market opened lower and continued to decline throughout the day, with the Shanghai Composite Index barely holding above 4000 points [5][6] - The public utilities, coal, and power sectors showed strength, while precious metals and various metal sectors experienced declines [5][6] - Overall, the market sentiment is cold, with a poor profit-making effect, as evidenced by a total trading volume of 21.11 billion yuan [6] Sector Analysis - The public utilities sector is gaining strength amid geopolitical instability, with increased interest in state-owned monopolistic industries such as electricity, water, and gas [7] - Coal stocks are also performing well due to rising oil and gas prices, which are leading to a shift towards coal as an alternative energy source [7] Investment Strategy - Given the multiple short-term disturbances, the market requires time to digest these factors [9] - Investors are advised to reassess their portfolio structure and adjust their investment pace, focusing on sectors with anti-inflation and performance certainty advantages [9] - Core competitive technology growth stocks should still be considered for opportunistic buying [9]

Core Viewpoints - The A-share market experienced a collective decline on Thursday, with the Shanghai Composite Index falling by 1.39%, the Shenzhen Component Index by 2.02%, and the ChiNext Index by 1.11%. The total trading volume in the Shanghai and Shenzhen markets reached 21,107.59 billion yuan [2][9] - In terms of industry performance, coal, oil and petrochemicals, and public utilities led the gains, while non-ferrous metals, steel, and basic chemicals lagged behind. Concept sectors such as state-owned cloud, shale gas, and natural gas saw significant increases, while metals like lead, zinc, and copper faced declines [2][9] - The report highlights a positive outlook for the lithium battery industry, indicating a recovery in profitability and a new growth cycle driven by demand from both power storage and electric vehicles [12][14] Market Review - The A-share market indices collectively declined, with the Shanghai Composite Index closing at 4,006.55, down 1.39%, and the Shenzhen Component Index at 13,901.57, down 2.02%. The total trading volume was 21,107.59 billion yuan [2][6] - The Hong Kong market also saw declines, with the Hang Seng Index down 2.02% and the Hang Seng Tech Index down 2.19%. In the overseas markets, the Dow Jones fell by 0.44%, the S&P 500 by 0.27%, and the Nasdaq by 0.28% [2][6] Important News - The People's Bank of China emphasized the need to maintain stability in financial markets, including stocks, bonds, and foreign exchange, while managing financial risks in key areas. The central bank aims to support the smooth operation of financial markets and address risks in small financial institutions [3][10] - A new policy was released regarding the extension of rural land contracts for an additional 30 years, which is expected to benefit millions of farmers and ensure stability in rural areas [4][11] Industry Insights - The lithium battery industry is entering a new growth cycle, with demand driven by both power storage and electric vehicles. The report suggests focusing on the recovery of the industry cycle and breakthroughs in solid-state battery technology [12][14] - In 2025, the overall revenue of the lithium battery industry reached 636.19 billion yuan, a year-on-year increase of 16.12%, with net profit rising by 40.37% [14] - The global demand for lithium batteries is expected to grow significantly, with shipments projected to reach 2,280.5 GWh in 2025, marking a 47.6% year-on-year increase [15] Supply and Demand Dynamics - The supply-demand landscape is improving, with a focus on the materials segment benefiting from this trend. The report notes that the market share of leading battery manufacturers is increasing, and profitability is expected to remain stable [16] - The report highlights that the price of lithium hexafluorophosphate is experiencing significant fluctuations, indicating a tight supply-demand balance in the electrolyte materials segment [16] Technological Advancements - Solid-state battery technology is identified as a key area for industry upgrade, with manufacturers entering the technical verification phase and pilot lines being established [17][19] - The report emphasizes the importance of advancements in equipment, electrolyte materials, and key auxiliary materials in the solid-state battery sector, which are expected to drive further growth [17][19]

Market Overview - The A-share market experienced a decline today, with the Shanghai Composite Index falling by 1.39% to close at 4006.55 points, and the Shenzhen Component Index down by 2.02% at 13901.57 points. The ChiNext Index decreased by 1.11% to 3309.10 points, while the Sci-Tech 50 Index dropped by 2.44% to 1339.03 points. Overall, there were 504 stocks that rose, while 4953 stocks fell, with 30 stocks remaining unchanged. The total trading volume in the Shanghai and Shenzhen markets was 21,110 billion yuan, a decrease of 649 billion yuan compared to the previous trading day [1]. Industry Performance - Among the Shenwan first-level industries, only coal, oil and petrochemicals, and public utilities saw gains, with increases of 1.82%, 1.34%, and 0.34% respectively. Conversely, industries such as non-ferrous metals, steel, basic chemicals, construction materials, and comprehensive sectors led the declines, with decreases of 6.10%, 4.08%, 3.75%, 3.62%, and 3.10% respectively [1]. Concept Sector Performance - The concept sectors that performed well today included optical modules (CPO), selected coal mining, central enterprise coal, oil and gas extraction, hydropower, high transfer, thermal power, central enterprise banks, East Data West Calculation, IDC (computing power leasing), natural gas, Jin Te Gu, photovoltaic inverters, Huawei HMS, and selected electric power stocks. In contrast, sectors such as selected rare metals, industrial metals, lithium mines, rare earths, and phosphorus chemicals experienced a pullback [2].

Group 1: Overall Economic Trends - The total retail sales of consumer goods in January-February 2026 increased by 2.8% year-on-year, driven by the long Spring Festival holiday, which boosted dining and travel demand, along with new subsidy funds [12][20] - The retail sales excluding automobiles reached 79,827 billion yuan, growing by 3.7% year-on-year, indicating a compound annual growth rate of 3.4% over two years [12][20] Group 2: Consumer Demand Insights - The consumption structure continues to upgrade, with service and dining retail sales growing faster than goods retail sales, and online retail sales of physical goods outpacing overall retail growth [20] - Essential consumption categories showed widespread improvement, with year-on-year growth in staple food, beverages, and clothing, while tobacco sales turned positive [20][16] - The new "trade-in" subsidy program, along with platform subsidies and Spring Festival activities, led to positive growth in home appliances and furniture, while communication equipment maintained high growth [20][16] Group 3: Information Technology Sector - The Philadelphia Semiconductor Index declined, while the Taiwan Semiconductor Industry Index and DXI Index increased [7] - DRAM prices showed a mixed trend, with the DRAM Index rising by 4.13% and NAND Index also increasing, while DDR5 DRAM prices fell [7][10] Group 4: Midstream Manufacturing Sector - The prices in the new energy supply chain mostly declined, and the automotive production turned negative with a year-on-year decline of 7.52% [7][19] - The sales of major engineering machinery companies mostly turned negative in February, indicating a slowdown in the manufacturing sector [7][19] Group 5: Resource Sector Tracking - The average transaction volume of construction steel increased, while coal prices showed mixed trends with some declines in specific regions [5][22] - Brent crude oil prices rose significantly, with a week-on-week increase of 17.15%, contributing to a general rise in chemical product prices [9][24] Group 6: Financial and Real Estate Sector - The monetary market saw a net absorption, with SHIBOR rates declining, while the turnover rate and daily transaction volume in the A-share market decreased [5][29] - The transaction area of new houses and the sales area of commercial housing showed a year-on-year decline, although the decline in real estate development investment narrowed [5][31]

Core Viewpoint - The A-share market experienced an overall increase on March 18, with significant net inflows of capital into various sectors, particularly electronics and communications [1][2][5]. Group 1: Market Performance - The Shanghai Composite Index closed at 4062.98 points, up 0.32%, while the Shenzhen Component Index rose 1.05% to 14187.8 points, and the ChiNext Index increased by 2.02% to 3346.37 points [1]. - The total trading volume across both markets was 20460.64 billion yuan, a decrease of 1617.97 billion yuan compared to the previous trading day [1]. Group 2: Capital Flow - The net inflow of main funds in the two markets was nearly 20 billion yuan, with an opening net outflow of 57.13 billion yuan and a closing net inflow of 60.57 billion yuan [2]. - The CSI 300 index saw a net inflow of 37.55 billion yuan, while the ChiNext index had a net inflow of 72.49 billion yuan [2][4]. Group 3: Sector Performance - The electronics sector led with a net inflow of 210.57 billion yuan, followed by communications with 176.89 billion yuan, and computers with 125.21 billion yuan [6]. - The sectors with the highest net outflows included basic chemicals at -55.52 billion yuan and public utilities at -47.26 billion yuan [6]. Group 4: Individual Stock Performance - Notable stocks with significant institutional net purchases included Kechuan Technology with a 10% increase and a net purchase of 126.18 million yuan, and Feiling Kesi with a 20% increase and a net purchase of 44.27 million yuan [9]. - Conversely, stocks like Hongbaoli and Jilin Chemical Fiber experienced substantial net outflows, with -8735.28 million yuan and -8955.41 million yuan respectively [9]. Group 5: Institutional Focus - Recent institutional ratings highlighted stocks such as Hongjing Technology with a target price of 178.68 yuan, representing a potential upside of 13.57% from its latest closing price [10]. - Other stocks with strong institutional interest included Hesheng Co. and Fuchuang Precision, with target price increases of 34.18% and 28.48% respectively [10].

Contents Highlights - 2025 and Our 30-Year Journey Financial Review and Financial Management International Business M&A Outlook Appendices CK Infrastructure Holdings Limited 1 ► FY2025 Results at a Glance ► Dividends and Shareholder Return ► Our 30-Year Journey ► 2025 Results Overview ► Financial and Gearing Positions ► Operational Update ► M&A Transactions HIGHLIGHTS – 2025 AND OUR 30-YEAR JOURNEY CK Infrastructure Holdings Limited FY2025 Results At a Glance | Profit Attributable to ▪ Shareholders | Profit ...

Core Viewpoint - Citigroup maintains a "Neutral" rating on Hong Kong Electric Holdings (02638), forecasting a sustainable dividend yield of 4.7% from 2026 to 2028, which is only 0.5 percentage points above the yield of the US 10-year Treasury, indicating a narrowing spread [1] Group 1: Financial Performance - The forecasted net profit attributable to Hong Kong Electric's shareholders for 2025 is expected to grow by 1.2% year-on-year to HKD 31.49 billion, which is 3.4% lower than market expectations [1] - The slight miss in earnings expectations is attributed to a 7.9% year-on-year increase in direct costs, reaching HKD 60.41 billion, which exceeded expectations [1] - Citigroup has lowered its net profit forecasts for 2025 and 2026 by 1.7% to 4.8% due to rising direct costs [1] Group 2: Dividend and Target Price - The final dividend remains flat year-on-year at HKD 0.1609 per share, aligning with Citigroup's expectations [1] - The target price for Hong Kong Electric has been raised from HKD 6.6 to HKD 7.0 [1] Group 3: Industry Comparison - In the Hong Kong utility sector, Citigroup prefers China Resources Power (00270), which has a forecasted dividend yield of 6.1% for 2026 [1]

智通财经APP获悉，花旗发布研报称，维持对港灯-SS(02638)的"中性"评级，基于受规管资产回报率保 证，2026至2028年预测每年可持续股息率为4.7%。惟4.7%的股息率看来不太吸引，仅较美国10年期国 债收益率高出0.5个百分点，息差收窄。基于直接成本增加，该行下调2025至2026年预测纯利1.7%至 4.8%，目标价由6.6港元上调至7港元。 港灯2025年股份合订单位持有人应占溢利同比增长1.2%至31.49亿港元，较市场预测低3.4%。该行将盈 利轻微逊预期归因于直接成本同比增长7.9%至60.41亿港元，增幅高于预期。长期而言，基于受规管资 产基础扩大，盈利应温和增长，从而带来监管保证的8%资产回报率。其末期股息同比持平于每股16.09 港仙，符合该行预期。在香港公用事业板块中，该行偏好粤海投资(00270)，其2026年预测股息率高达 6.1%。 ...

Market Performance - The Shanghai Composite Index decreased by 0.26%[3] - The Shenzhen Component Index increased by 0.19%[3] - The ChiNext Index rose by 0.83%[3] Industry Analysis - The food and beverage sector saw a gain of 1.99%[3] - The steel industry experienced a decline of 3.16%[3] - The storage index surged by 5.52%[3] Economic Events - US-China trade talks commenced in Paris, potentially benefiting bilateral trade relations[5] - Central banks, including the Fed and ECB, are set to announce interest rate decisions, which may influence market dynamics[5] - Rising oil prices, currently around $100 per barrel, are attributed to geopolitical tensions[5] Consumer and Investment Trends - Consumer spending increased by 5.7% year-on-year, while service consumption rose by 1.1%[7] - Capital investment in advanced manufacturing and AI sectors has significantly increased[7] Market Outlook - A-shares are expected to show mixed performance, with storage and advanced packaging sectors performing well[8] - Market movements will likely depend on policy expectations and capital flows, particularly from foreign investors[8]

Market Performance - Risk assets continued to decline last week, with MSCI Global down by 1.5%, MSCI Developed Markets down by 1.5%, and MSCI Emerging Markets down by 1.4% [8] - In the developed markets, the UK FTSE 100 showed the strongest performance at -0.2%, while the Nikkei 225 was the weakest at -3.2% [8] - In the emerging markets, the ChiNext Index performed best at +2.5%, while the Indian Sensex 30 was the worst at -5.5% [8] Trading Sentiment - Under the shadow of geopolitical tensions, the sentiment in the US stock market weakened, reaching historically low levels [18] - Trading volumes decreased across major indices, with the Shanghai Composite Index trading at 3.706 billion shares and $7.770 billion, and the Hang Seng Index at 178 million shares and $739 million [18] - The short-selling ratio in the Hong Kong market decreased to 17.5%, indicating a historical low in investor sentiment [18] Fundamental Analysis - The earnings forecast for the Hong Kong market was revised downwards, with the Hang Seng Index's 2026 EPS forecast adjusted from +9.5% to +8.6% [64] - In contrast, the earnings forecast for the US market remained stable at +12.9% for the S&P 500 Index, with the energy sector seeing the most significant upward revision of +5.5% [64] - The European market's earnings forecast remained unchanged at -3.0% for the Eurozone STOXX 50 Index, with the energy sector also experiencing a notable upward revision of +9.4% [65] Capital Flows - Expectations for overseas liquidity continued to tighten, with offshore dollar liquidity tightening [51] - The market anticipates that the Federal Reserve will delay its first rate cut of the year, with expectations now at 0.9 cuts for 2026 [51] - In terms of capital flows, the Hong Kong market saw a net inflow of HKD 3.8 billion, primarily from flexible foreign capital [60]