Event Overview - The International Builders' Show (IBS) is the largest construction industry event in North America, organized by the National Association of Home Builders, which has 200,000 member companies [6] - The next IBS will take place from February 17 to 19, 2026, in Orlando, with an annual frequency [1] Market Analysis - The 2025 IBS attracted over 1,500 exhibitors from more than 20 countries, showcasing thousands of new products and technologies in the building materials sector, with an exhibition area of 609,000 square feet, a 4.6% increase from the previous year [6] - Online registration for professional attendees exceeded 100,000, including builders, architects, designers, and building materials traders and distributors [6] Participation of Chinese Exhibitors - Over 300 Chinese exhibitors participated, representing various regions such as Guangdong, Zhejiang, Fujian, Anhui, Jiangsu, Shandong, Tianjin, Hebei, and Beijing, focusing on products like doors, windows, bathroom fixtures, flooring, metal products, lighting, stone, and construction machinery [7] - A significant proportion of exhibitors reported establishing connections with both new and existing customers, with some receiving on-site orders and expressing willingness to participate in the next event [7] Importance of the U.S. Market - The U.S. is the world's largest economy, and the construction industry is a vital sector, contributing significantly to export trade [4] - The U.S. building materials market remains promising, with IBS serving as a primary platform for Chinese building material companies to enter the North American market [4]

Investment Rating - The report maintains a positive outlook on the non-ferrous metals industry, indicating a "look good" investment rating [2]. Core Insights - The report emphasizes the impact of the "anti-involution" policy on various cyclical sub-industries, particularly highlighting the steel industry, which is currently facing weak demand and declining prices and profit levels. The policy aims to prevent vicious competition and promote high-quality development [4][62]. - The steel industry is expected to undergo a transformation towards high-end differentiated competition, with potential recovery in profitability and valuation levels [19][51]. - The transportation industry, particularly the express delivery and aviation sectors, is anticipated to benefit from the government's focus on balancing supply and demand and promoting high-quality development [5][52]. - The construction materials industry is also set to experience a new balance due to the implementation of the "anti-involution" policy, which will accelerate the optimization of supply [7][66]. - The chemical industry, including silicon-based products and pesticides, is expected to see improvements in supply dynamics, leading to a potential recovery in profitability [68][74]. Summary by Sections 1. Metal Industry - The steel industry is currently facing weak demand, with both supply and demand weakening compared to 2015, but the degree of oversupply has lessened [24][25]. - The report notes that the profitability of the steel industry has declined to levels seen in 2015, with profits shifting towards the upstream iron ore sector [33][46]. - The "anti-involution" policy is expected to enhance the industry's supply-demand structure and profitability, with a median P/E ratio of 35.51X indicating room for valuation recovery [4][48]. 2. Transportation Industry - The express delivery and aviation sectors are highlighted as areas that will benefit from the government's anti-involution measures, which aim to improve supply-demand balance and service quality [5][60]. - The aviation sector has already seen improvements in passenger load factors due to supply-side controls, which are expected to enhance pricing power during peak seasons [55][56]. 3. Construction Materials Industry - The report discusses the gradual implementation of the "anti-involution" policy in the construction materials sector, particularly in cement, which is expected to lead to better supply-side optimization [62][64]. - The focus on eliminating excess capacity and promoting high-quality development is anticipated to solidify the growth of leading companies in the industry [66]. 4. Chemical Industry - The silicon-based products and pesticide sectors are projected to benefit from improved supply dynamics due to regulatory measures aimed at curbing low-price competition [68][74]. - The report indicates that self-discipline within the pesticide industry, particularly in the glyphosate sector, will help improve market conditions and profitability [75].

Summary of Key Points from Conference Call Records Industry Overview - The convertible bond market has recently reached new highs, with the average closing price at 124 yuan and the median close to 126 yuan, placing it in the top 93% since 2020 [2][3] - The number of low-priced convertible bonds has decreased to below 20, accounting for approximately 3.6% of the market [2][3] Core Insights and Arguments - In a bull market, banks, brokerages, and convertible bonds will exit quickly, while in a volatile market, some funds will withdraw, leading to a compression of premium rates for high-priced convertible bonds [3] - It is recommended to focus on mid-to-low priced convertible bonds like Wentai and Shuyou, which offer long-term effectiveness and price protection [1][2][6] - Policy-driven market reactions are evident, particularly in the photovoltaic sector with notable price recoveries for companies like Jinko, Jinao, and Jinneng [5][6] - The construction materials sector, particularly state-owned enterprises like Wanquan and Jidong, is rated highly but faces challenges due to being below net asset value [5] - The cyclical industries, such as pig farming, represented by companies like Xiwang, Muyuan, and Wens, are also worth attention due to good cash flow and stock elasticity [5][6] Additional Important Content - The PCB industry is benefiting from high demand driven by the computing power sector, easing tariffs, and rising copper prices, which account for 30% of PCB costs [9] - Key PCB companies like Jing Er San and Huazheng are seeing significant growth, with revenue and profit targets set to increase by 20-30% [10][11] - Huayou Cobalt reported a net profit of 1.448 billion yuan in Q2, a 26% year-on-year increase, driven by rising cobalt prices and production capacity [12] - The company is also expanding its market reach, including plans to supply products to overseas clients [14] - Guolv Convertible Bond has shown strong performance, with a projected net profit of nearly 1 billion yuan for the year, driven by high demand in the new energy vehicle and semiconductor sectors [15] - Zhongchong's performance has been less affected by tariffs due to its production layout in the U.S. and Cambodia, maintaining a stable growth trajectory [16] Recommendations - Focus on mid-to-low priced convertible bonds such as Wentai and Shuyou for their elasticity and price protection [6] - Consider cyclical industries like pig farming for their strong cash flow and stock elasticity [5][6] - The top ten recommended convertible bonds span technology growth, new consumption, and cyclical growth sectors, indicating a positive outlook for these investments [17]

Economic Indicators - As of June 2025, PPI has experienced 33 consecutive months of year-on-year negative growth, while CPI has remained below 1% for 28 months[3] - The GDP deflator index has shown negative growth for 8 consecutive quarters, with an estimated -1% for Q2 2025[3] - For Q3 and Q4 2025, CPI is projected to grow at -0.1% and 0%, while PPI is expected to decline by -2.5% and -2.1% respectively[3] GDP Growth Projections - The actual GDP growth rate for the first half of 2025 is likely to be around 5.3-5.4%, requiring a second-half growth of 4.6-4.7% to meet the annual target[3] - The nominal GDP growth rate needs to stabilize above 4% for the year[3] CPI Insights - Core CPI has shown an upward trend, reaching 0.7% year-on-year in June 2025, the highest since May 2024[5] - Service retail sales growth from January to May 2025 was 5.2%, significantly lower than the 20% and 6.2% growth rates in 2023 and 2024 respectively[5] - The contribution of service CPI to overall CPI growth was only 0.17 percentage points, much lower than the previous year's 0.9%[5] Food and Energy Price Trends - Food prices, particularly pork, are expected to face high base pressure in Q3, with a projected negative growth in pork prices due to supply chain factors[24][26] - Oil prices are anticipated to decline further, with Brent crude averaging around $66 per barrel in the second half of 2025, leading to a significant drag on CPI growth[35][36] Risks and Uncertainties - Global economic recovery may fall short of expectations, impacting domestic price levels and potentially leading to further declines in export and commodity prices[4] - The effectiveness of industrial policy adjustments and "anti-involution" measures remains uncertain, which could prolong price pressures in certain sectors[4]

Group 1: Steel Industry - The Ministry of Industry and Information Technology revised the "Steel Industry Normative Conditions" in February 2025, which is expected to help restore profitability in the steel sector to historical average levels [3] - The steel sector is undergoing a two-tier evaluation system for "standard enterprises" and "leading standard enterprises," aligning with the broader policy goal of better adapting supply-side to demand changes [3] Group 2: Non-ferrous Metals - The price of electric carbon has risen for the first time in five months, and the price of electrolytic cobalt has reached a one-month high, indicating a positive outlook for the metal new materials sector [4] - Lithium prices have dropped to around 60,000 yuan/ton, with potential for accelerated capacity exit; companies with cost advantages and resource expansion in the lithium sector are recommended for attention [4] - The export ban on cobalt from the Democratic Republic of Congo has been extended for three months, and tungsten prices remain at their highest since 2013 [4] Group 3: Oil and Chemical Industry - In H1 2025, the oil market experienced significant volatility due to geopolitical events and OPEC+ production increases, leading to a downward trend in oil prices [5] - As of June 30, 2025, Brent and WTI crude oil prices were reported at $66.63 and $64.97 per barrel, reflecting declines of 11.0% and 9.6% respectively since the beginning of the year [5] Group 4: Construction and Building Materials - The scarcity of orbital frequency is driving competition, and the construction of low-orbit satellite constellations in China is entering an accelerated phase [6] - Shanghai Port has strategically positioned itself in the satellite energy system sector, having supported the launch of 15 satellites and over 40 sets in orbit, which is expected to benefit from the rapid development of low-orbit satellites [6] Group 5: Agriculture, Forestry, Animal Husbandry, and Fishery - In May, the number of pigs slaughtered increased, maintaining a micro-profit level for the industry [7] - As of July 4, the average price of external three-bred pigs was 15.35 yuan/kg, up 4.28% week-on-week, while the average price of 15 kg piglets was 31.33 yuan/kg, down 0.85% week-on-week [7] Group 6: Renewable Energy and Public Utilities - The "anti-involution" policy will be a key focus for government work in Q3 2025, with an emphasis on price strategies to combat deflation and assist local governments in debt reduction [6] - The market is closely watching whether outdated production capacity can exit quickly, with expectations for demand in H2 2025 or 2026 [6] Group 7: Automotive Industry - Wuxi Zhenhua has exceeded expectations in core customer orders, driven by both stamping and electroplating, leading to stable growth in performance [8] - Xiaomi's first SUV, the YU7, achieved over 289,000 pre-orders within one hour of its launch, indicating strong product and brand power [8] - Wuxi Zhenhua has established a stable partnership with Xiaomi, with the automotive sector expected to contribute significantly to the company's revenue [8]

Core Viewpoint - The company, Oriental Yuhong, has demonstrated a long-term commitment to sustainable development by releasing its sustainability report for the 17th consecutive year, indicating a strategic choice deeply embedded in its corporate DNA [3][5]. Group 1: Sustainable Development Strategy - Oriental Yuhong's 2024 sustainability report outlines its commitment to "guarding a beautiful living environment" with a focus on quality management, green innovation, environmental protection, employee development, and win-win cooperation [5][6]. - The company has set ambitious goals, including obtaining domestic and international environmental product certifications for major product categories by 2025 and training 10,000 construction material workers annually over the next three years [6][12]. Group 2: Green Manufacturing and Low-Carbon Development - The company is advancing its smart manufacturing transformation with a focus on green and low-carbon initiatives, implementing modern management methods and establishing a low-carbon operational model across its entire value chain [8]. - As of the end of 2024, Oriental Yuhong has built 25 photovoltaic power stations with a total installed capacity of 100.40 MW and utilized 72 million kWh of green electricity throughout the year [8]. Group 3: Technological Innovation and Industry Upgrade - Oriental Yuhong is leveraging its national-level innovation platform to address industry challenges and market demands, launching a range of advanced waterproof materials and solutions to support high-quality development [9]. Group 4: Social Responsibility and Community Engagement - The company has trained over 910,000 skilled workers in the industry and developed the "Yuhong Craftsman" labor platform app to address employment challenges in the construction sector, with over 420,000 users and nearly 10,000 projects facilitated by the end of 2024 [12]. - Oriental Yuhong actively participates in various charitable activities, including disaster relief and community support, demonstrating its commitment to social responsibility over the past 30 years [14].

Group 1 - The report indicates that the registration of two new stocks, Dingjia Precision and Youli Intelligent, has been successful, maintaining the "high-quality" expansion tone. This marks the eighth and ninth successful registrations for the North Exchange this year, highlighting a slow issuance pace compared to other boards [10][11]. - The North Exchange has only listed six new stocks this year, making it the slowest among the Sci-Tech Innovation Board, Growth Enterprise Market, and Shanghai and Shenzhen Main Boards, which have listed seven, twenty, and nineteen new stocks respectively [11]. - The bottleneck for the low issuance volume of new stocks on the North Exchange is attributed to the registration process. As of now, there are ten companies that have passed the review but have not yet registered [11] Group 2 - The North Exchange 50 index fell by 1.73%, with an average daily trading amount of 27.98 billion, a decrease of 17.8% week-on-week. The market style favored large-cap quality stocks, with the banking index rising by 3.77% [10][20]. - The report highlights that the market is showing a shift towards domestic demand sectors, with stocks like Minshida and Kangnong Agriculture seeing increases of 7.15% and 5.37% respectively, as the deadline for the suspension of "reciprocal tariffs" approaches [10][20]. - The report suggests that the overall market risk appetite has not significantly declined, and there are signs of a resurgence in consumption and other sectors [10][20]. Group 3 - The report emphasizes the importance of monitoring the mid-year report market, recommending attention to companies such as Lintai New Materials, Minshida, and KAIT, among others [15]. - Long-term focus is advised on companies with competitive advantages in the North Exchange, particularly in the technology and new consumption sectors [15]. - The report notes that the North Exchange's PE (TTM) average is 94.70 times, with a median of 52.90 times, indicating a relatively high valuation compared to other boards [27][29]. Group 4 - The North Exchange has seen a total of 268 companies listed as of July 4, 2025, with no new stocks listed this week [33]. - The report mentions that there are 32 new companies under review for registration, indicating ongoing interest in the North Exchange despite the slow pace of new listings [33][40]. - The trading volume for the North Exchange was 6.105 billion shares this week, a decrease of 16.27% compared to the previous week, with a total transaction amount of 139.916 billion, down 17.81% [32][20]. Group 5 - In the New Third Board, there were no new listings this week, with one company delisted. The total planned financing for the week was 1.53 billion, with 0.232 billion completed [57]. - The report indicates that as of July 4, 2025, there are 6,059 companies listed on the New Third Board, with 2,332 in the innovation layer and 3,727 in the basic layer [57]. - The report highlights that the New Third Board has seen a total of 15.30 billion planned financing this week, with one company, Zhongxin Crystal, planning to raise 1.5 billion [61].

Group 1: Market Overview - The coal, float glass, and steel industries are expected to experience negative profit growth year-on-year, while the refining industry maintains stable profitability due to a rebound in oil prices [1] - The overall economic data shows stability, with PMI rolling averages stabilizing and housing sales area declining slightly year-on-year [1] Group 2: Quantitative Analysis - As of June 30, 2025, the proportion of rising stocks in the CSI 300 index increased month-on-month, indicating a high market sentiment with over 60% of stocks rising [2] - Momentum indicators suggest a bullish outlook, with short-term sentiment indicators placing the CSI 300 index in a favorable emotional zone [2] Group 3: Real Estate Sector - In the first half of 2025, the cumulative sales amount of the top 100 real estate companies was CNY 1.8 trillion, with a year-on-year decline of 11.4% [3] - The sales area for the same period was 85.97 million square meters, reflecting a year-on-year decrease of 22.2% [3] - Some leading real estate companies, such as China Jinmao and Yuexiu Property, showed positive sales growth, with increases of 20% and 11% respectively [3] Group 4: Company Research - The report highlights that GoerTek, a leading XR design and manufacturing company, is expected to benefit from the launch of AI glasses by Xiaomi, indicating a positive growth trend in the XR business [4] - The company's market share in XR manufacturing is high, and factors such as the recovery of its headphone business and optimization of its smart hardware product structure are expected to drive revenue growth [4] - The projected PE ratios for GoerTek from 2025 to 2027 are 24X, 20X, and 17X respectively, supporting a "buy" rating for the company [4]

Core Viewpoint - Wuhu City is leveraging a spatial strategy of "one core, three belts, and multiple nodes" to drive technological innovation and high-end industrial cluster development, focusing on strategic emerging industries and traditional industries' transformation towards intelligence and sustainability [1][18]. Group 1: New Quality Productive Forces Overview - New Quality Productive Forces, introduced by President Xi Jinping, emphasize innovation as the main driver, characterized by high technology, efficiency, and quality, aligning with advanced production capabilities [2]. - This concept is crucial for promoting high-quality economic development and constructing a modern industrial system [2]. Group 2: Economic Performance of Wuhu City - Wuhu City, as a key node in the Yangtze River Delta G60 Science and Technology Innovation Corridor, has seen its GDP exceed 512.05 billion yuan in 2024, with a year-on-year growth of 6.4% [3]. - The secondary industry has shown remarkable performance with an added value of 55.29 billion yuan and a growth rate of 8.7% [3]. Group 3: Industrial Development and Innovation - Wuhu is focusing on the "Jiuzi Science and Technology Innovation Bay" to create a highland for industrial innovation, planning 18 specialized innovation parks with a total construction area of 5.95 million square meters [5]. - The city's industrial enterprises achieved over 850 billion yuan in revenue, with a profit margin of 6%, and strategic emerging industries grew by 22% [5]. Group 4: Policy Framework for New Quality Productive Forces - Wuhu City has implemented several policies to support the development of New Quality Productive Forces, including action plans for modern service industries and digital transformation [9][11]. - These policies aim to create a comprehensive system covering technological innovation, industrial upgrading, and digital empowerment [9]. Group 5: Modern Industrial System - Wuhu has established a "4+10+6" industrial system, focusing on traditional industries like automotive and electronics while promoting strategic emerging industries such as robotics and new energy [13]. - The city aims to enhance its industrial capacity towards high-end, specialized, and cutting-edge sectors [13]. Group 6: Future Development Trends - Wuhu's development of New Quality Productive Forces will focus on technological innovation, particularly in smart connected vehicles and robotics [26]. - The city plans to foster a modern industrial cluster system that integrates traditional and emerging industries, enhancing collaborative efficiency through digital technologies [27]. - Wuhu will deepen cooperation within the G60 Science and Technology Innovation Corridor and optimize policies to attract global high-end resources [28].

Core Viewpoint - The Chinese building materials industry is facing declining domestic demand but is finding new opportunities in international markets, particularly in Australia and the Middle East, due to its competitive advantages in cost and technology [2][3]. Group 1: Market Opportunities - The Australian housing market has a shortage of over 300,000 units, with local material costs rising by 23% year-on-year, making Chinese high-cost performance materials an attractive option [2]. - Middle Eastern countries like Saudi Arabia, Qatar, and the UAE are expected to invest over $1.5 trillion in infrastructure over the next decade, creating strong demand for high-end materials and green technologies [2]. Group 2: Industry Trends - 72% of large-scale building material companies are prioritizing Australia and the Middle East as key overseas markets in the next three years, shifting from simple product exports to a full industry chain layout that includes technology output and service implementation [3]. - The industry is transitioning towards high-end green building materials, responding to increasingly stringent global standards [5]. Group 3: Challenges Faced - 68% of surveyed companies cite insufficient localization capabilities as a primary obstacle, while 55% struggle with uncontrolled supply chain costs, and 49% face challenges related to financial risk management [4]. - Cross-border trade companies are under dual pressure from rising costs and cash flow issues, compounded by lengthy approval processes from domestic financial institutions and strict financing restrictions from local foreign banks [4]. Group 4: Strategic Recommendations - Companies are encouraged to enhance local cooperation, improve product quality, and innovate to adapt to local regulations and cultural differences [5]. - Establishing a "global procurement center" and an overseas service center could improve efficiency and facilitate better matching of supply and demand [6]. - The industry is moving towards a capitalized phase of internationalization, focusing on building partnerships through equity investments and agency cooperation [6].