Summary of Conference Call Notes Industry or Company Involved - Focus on the theme investment strategy in the financial market, particularly related to stablecoins and various thematic investments in the technology and finance sectors. Core Points and Arguments 1. The analysis perspective is top-down, focusing on three dimensions: market characteristics of theme investment, understanding theme investment, and analyzing stablecoins [1] 2. The investment paradigms discussed include thematic investment, cyclical investment, and value investment, emphasizing that a structural bull market often begins when a leading industry enters a growth phase [2] 3. AI applications are expected to gradually enter a growth phase, but the transition may not be smooth, leading to a market focus on thematic investments [3] 4. Thematic investments are categorized into two types: industrial themes (e.g., humanoid robots, controllable nuclear fusion, new consumption) and event-driven themes (e.g., the Super League) [4] 5. A focus on stablecoins is highlighted, with a belief that they will remain a significant theme due to multiple catalysts, including regulatory developments in Hong Kong [5][6] 6. Key catalysts for stablecoins include the implementation of stablecoin regulations in Hong Kong and the ongoing business developments of major companies like JD and Ant Group [6] 7. Companies related to stablecoin infrastructure, data wallets, and payment solutions are expected to benefit from the growth of stablecoin applications [7] 8. The global push for legal digital currencies since 2018 has created new demands, particularly in cross-border payments, which are closely related to stablecoins [8] 9. The stablecoin landscape is evolving, with significant policy advancements occurring primarily outside of mainland China, suggesting investment opportunities in companies with a strong presence in Hong Kong and overseas [9] 10. A specific recommendation is made for Jinbeifang, a bank IT company, which has shown strong performance in the stablecoin market and has strategic partnerships to enhance its offerings [10][11] 11. Jinbeifang's collaboration with Guofu Quantum focuses on IT innovation, virtual asset ecosystems, and financial business innovation, indicating a robust growth strategy [12][13] 12. Longshine Technology is also recommended due to its partnership with Tencent, which may lead to collaborative opportunities in the stablecoin space [15] 13. Non-bank IT companies like Hengsheng are also highlighted for their involvement in the stablecoin market, showcasing the diverse participation of financial institutions [16] 14. The potential of Real World Assets (RWA) is discussed, with companies like Langxing Technology and Jieshun Technology identified as key players in this area [17] Other Important but Possibly Overlooked Content - The discussion emphasizes the importance of catalysts in sustaining thematic investments, suggesting that a dense network of catalysts is crucial for maintaining market interest and momentum [4] - The call highlights the interconnectedness of various financial technologies and regulatory environments, indicating a complex landscape for investors to navigate [8] - The focus on both industrial and event-driven themes suggests a diversified approach to investment strategies, allowing for flexibility in response to market changes [4]

Group 1 - The "Stablecoin Regulation" will officially take effect on August 1, enabling Real World Assets (RWA) to be tokenized through blockchain technology, covering diverse fields such as real estate and charging stations [1] - The People's Bank of China has launched eight financial opening policies in Shanghai, including the establishment of a digital RMB international operation center and a blockchain cross-border payment pilot, aimed at constructing a dual-layer framework of "sovereign credit + market-based supplement" to address global dollar stablecoin challenges [1] - The Shanghai State-owned Assets Supervision and Administration Commission emphasizes the need to strengthen research on digital currencies and explore the application of blockchain in cross-border trade and supply chain finance [1] Group 2 - Stablecoins and RWAs primarily serve the needs of cross-border payments and asset on-chain requirements, while the revision of the Cross-Border Interbank Payment System (CIPS) rules further clarifies the qualifications of operating institutions and the ownership of funds, allowing space for payments in foreign currencies such as the Hong Kong dollar [1] - The financial IT sector may benefit from the development of the stablecoin industry chain and the improvement of cross-border payment efficiency [1] - The Hong Kong Stock Technology ETF tracks the Hong Kong Stock Connect Technology Index, which is compiled by China Securities Index Co., Ltd., selecting technology industry listed companies with scale advantages and good liquidity from the Hong Kong Stock Connect eligible range [1]

Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry index is expected to perform better than the benchmark index over the next 6-12 months [37]. Core Viewpoints - The report highlights the positive outlook for financial IT and cross-border payment companies due to the recent policy developments in stablecoins, RDA, and CIPS, which are expected to enhance efficiency, reduce costs, and improve transparency in cross-border payments and settlements [1][4][21]. - The stablecoin market is diversifying, with various participants including fintech companies and traditional banks, which is likely to enhance the credibility and application scenarios of stablecoins [13][14]. Summary by Sections Industry Investment Rating - The industry is rated as "Outperform the Market," with expectations of better performance compared to the benchmark index [37]. Company Dynamics - Jiuyuan Yinhai expects to achieve revenue of 414-454 million yuan in the first half of 2025, a year-on-year increase of 5%-15%, with net profit expected to grow significantly by 130%-180% [3]. - Inspur Information plans to repurchase its A-shares with a total fund of no less than 200 million yuan and no more than 300 million yuan, with an expected repurchase price not exceeding 75.59 yuan per share [3]. Investment Recommendations - The report suggests focusing on companies such as Runhe Software, Nantian Information, Borui Data, Huichen Shares, Digital Government, and Jiuyuan Yinhai, which are expected to benefit from the developments in stablecoins and related technologies [4][21]. Policy Developments - Recent policies in regions like Hong Kong and Shanghai are aimed at promoting the development of stablecoins and their applications, including the issuance of tokenized government bonds and enhancing the management mechanisms for cross-border payment systems [15][18][21]. - The introduction of the RDA paradigm by the Shanghai Data Exchange emphasizes the importance of data in verifying the authenticity and enhancing the value of real-world assets [20][21]. Market Trends - The stablecoin market is expanding into real-world applications, particularly in cross-border payments, B2B payments, and asset tokenization, which are expected to grow rapidly [14][21]. - The report notes that the development of stablecoins will increase the demand for system upgrades and related services from financial IT companies [21].

周一（7月14日）， 稳定币、跨境支付等热门概念股集体下挫，金融科技板块新高后深度回调超2.5%， 十只成份股跌超5%。其中，大智慧跌停，中科金财、长亮科技、京北方等多股跌逾8%。值得注意的 是，楚天龙尾盘由水下急速翻红涨停，表明部分资金做多情绪仍较浓，或为博弈后续反包行情，古鳌科 技、拓尔思两股也逆市涨逾5%。 热门ETF方面，规模、流动性同类断层第一的金融科技ETF（159851）全天走弱，场内一度下探近4%， 收盘跌幅缩窄至2.64%下穿五日线。交投方面，受份额拆分降低交易门槛事件影响，159851全天成交额 超9亿元，在市场整体缩量下交投情绪仍相对高涨。金融科技行情深度回调之际资金逆行重仓买入，全 天净申购5.67亿份。 从中长期投资机会看，华西证券指出，全球政策共振，建议继续关注相关产业链机会。消息面上，7月 10日，上海市国资委党委召开中心组学习会，围绕加密货币与稳定币的发展趋势及应对策略开展学习， 华西证券认为，继海外及香港稳定币政策相继出台后，国内政策出台预期有望强化。 分析来看，稳定币、跨境支付短期波动调整或受一则利空消息影响。消息面上，近期北京、深圳等多地 监管部门针对稳定币炒作风险发布提 ...

Group 1 - Yuxin Technology has initiated systematic layouts in stablecoin issuance, payment, and financial innovation, aiming to support the development of new asset and circulation ends through technology and solution outputs [1] - The recent investor relations activities highlight the alignment of stablecoin business with Yuxin Technology's global strategy, reflecting the acceleration of financial technology companies' participation in the stablecoin ecosystem [1][2] - The Chinese government has released clear signals for stablecoin development, emphasizing innovation and research in digital currencies, which aligns with Yuxin Technology's strategic direction [2] Group 2 - Hong Kong is actively advancing its stablecoin framework, with the "Stablecoin Ordinance" set to take effect on August 1, 2023, and the launch of a "stablecoin issuer sandbox" by the Hong Kong Monetary Authority [3] - Yuxin Technology aims to create innovative business models, particularly in overseas markets, by implementing a diversified product portfolio and a comprehensive service model that integrates operations and products [4] - The company plans to leverage its extensive experience serving over 1,000 financial institutions to address the technical and business challenges of connecting the banking system with the stablecoin system [4] Group 3 - Yuxin Technology's strategy is closely aligned with current market opportunities, particularly in the tokenization of bonds and real-world assets (RWA), leveraging its strengths in credit services [5] - The company has established a mature ecosystem operation capability, helping financial institutions expand their business scale through technology empowerment [6] - The stablecoin industry is expected to bring benefits to financial IT and companies with stable asset holdings, with Yuxin Technology positioned to benefit from this trend [6] Group 4 - The rise of stablecoins reflects a global demand for efficiency and trust in the financial system, with Yuxin Technology's efforts representing a shift of Chinese financial IT capabilities to new markets [7] - The development of stablecoins presents new opportunities for the financial industry, requiring collaborative efforts from industry participants to foster a healthy ecosystem [7] - Stablecoins are seen as a core bridge connecting traditional finance and the crypto world, with the potential to enhance cross-border payment efficiency and reshape the international monetary landscape [8]

Market Overview - The A-share market is showing signs of a bull market, with the Shanghai Composite Index reaching a 9-month high of 3555.22 points on July 11, 2025, and closing at 3510.18, the highest since January 25, 2022 [1] - The total trading volume for the day was 1.74 trillion yuan, indicating a surge in market sentiment [1] - The week from July 7 to July 11 saw the Shanghai Composite Index and Shenzhen Component Index both rise by 1.78%, while the ChiNext Index increased by 2.36%, marking a three-week streak of gains [2] Financial Technology Sector - The financial technology sector is experiencing significant growth, driven by the "stablecoin concept" and internet brokerage firms, with the financial technology ETF (159851) rising by 3.76% to reach a historical high [2][3] - Major stocks in the sector, such as Guoao Technology and Jinzheng Co., saw strong performance, with several stocks hitting the daily limit [2] - The financial technology index has surged over 39% in the past three months, outperforming other major indices [4] Brokerage Firms - Brokerage firms are leading the market rally, with the top brokerage ETF (512000) rising by 4.35% to set a new yearly high, and total trading volume reaching 19.52 billion yuan, a 139.8% increase from the previous day [5][8] - Major brokerage stocks like Dongfang Wealth and Zhongyin Securities saw significant inflows, with Dongfang Wealth achieving a trading volume of 263.14 billion yuan [8][9] - Three brokerage stocks hit the daily limit, indicating strong market interest and performance [12] Rare Earth and Nonferrous Metals - The rare earth sector is also witnessing a strong rally, with major companies like Northern Rare Earth and Baotou Steel announcing price increases, leading to significant gains in related stocks [16][19] - The nonferrous metals sector attracted substantial capital inflows, with a net inflow of 99.89 billion yuan, ranking among the top three sectors for capital inflow [17] - The rare earth ETF (159876) rose by 2.18%, reaching a new yearly high, driven by strong performance from leading companies in the sector [16] Earnings Reports - The earnings season is underway, with companies like China Shipbuilding and WuXi AppTec forecasting significant profit increases, contributing to a bullish sentiment in their respective sectors [1] - The brokerage sector is expected to continue its high growth trajectory, supported by increased trading activity and favorable market conditions [15]

Investment Rating - The industry investment rating is "Overweight (Maintain)" [2][4] Core Viewpoints - The report highlights a positive outlook for the financial IT sector, driven by the rapid advancement of CIPS (Cross-border Interbank Payment System) and stablecoin initiatives, which are expected to create new opportunities in the industry [3] - The report suggests focusing on key companies in various segments: banking IT (e.g., Yuxin Technology, Jingbeifang, Changliang Technology), securities IT (e.g., Hengsheng Electronics, Top Software), and payment IT (e.g., Newland, Lakala) [3] Summary by Relevant Sections Industry Overview - The total number of listed companies in the industry is 360, with a total market capitalization of 42,950.96 billion and a circulating market capitalization of 37,407.09 billion [2] Key Company Performance - Yuxin Technology: 2023A EPS is 0.47, with a PE ratio of 60.81; rated "Buy" - Jingbeifang: 2023A EPS is 0.79, with a PE ratio of 29.49; rated "Buy" - Changliang Technology: 2023A EPS is 0.04, with a PE ratio of 406.5; rated "Buy" - Hengsheng Electronics: 2023A EPS is 0.75, with a PE ratio of 43.67; rated "Buy" - Top Software: 2023A EPS is 1.38, with a PE ratio of 29.77; rated "Buy" [2]

Core Viewpoint - Jingbeifang is a leading financial technology service provider in China, expected to experience business growth beyond expectations due to the dual drivers of the accelerated implementation of the digital RMB national strategy and the deep integration of AI technology in the financial industry [1] Group 1: Over-Expectation Logic - Market expectations suggest that the advancement of digital currency is slow, and AI's application in the financial sector is also lagging, leading to a belief that these factors will not contribute to short-term performance [2] - The company believes that the pace of policy implementation is accelerating, with the digital currency rollout speeding up, as evidenced by the recent introduction of the stablecoin legislation in Hong Kong [2] - The company has established deep collaborations with banking clients and possesses full-stack service capabilities for digital currency, positioning it to benefit from the promotion of stablecoins [2] Group 2: Driving Factors - The rollout of stablecoins presents business opportunities, with the Hong Kong Legislative Council passing the "Stablecoin Ordinance" on May 21, 2025, indicating a shift in stablecoins from being mere connectors of crypto assets to becoming a new infrastructure for global financial payments [3] - Domestic large models are showing significant breakthroughs in cost and capability, leading to accelerated adoption in the banking sector, which directly benefits the company through private deployment and AI application demands [2][3] Group 3: AI Application and Product Launch - Domestic large models like Deepseek are rapidly being adopted in the financial sector due to their efficient performance, cost-effectiveness, and open-source nature, with banks prioritizing AI for various applications such as intelligent customer service and risk control [3] - The company has officially launched an AI large model service platform and four major products in 2024, catering to the private deployment and AI application needs of major state-owned and joint-stock commercial banks [3] Group 4: Performance Metrics and Catalysts - Key performance indicators include the implementation of stablecoin policy details, AI business orders, and the proportion of AI revenue [4] - Catalysts for growth include the implementation of stablecoin regulations, approval of licenses for tech giants, and the emergence of popular AI products [5] Group 5: Profit Forecast and Valuation - The company forecasts revenues of 5.147 billion, 5.685 billion, and 6.291 billion yuan for 2025-2027, with year-on-year growth rates of 11.01%, 10.46%, and 10.67% respectively, and net profits of 363 million, 416 million, and 472 million yuan, with growth rates of 16.34%, 14.63%, and 13.54% [6] - The company is compared with peers in financial technology and banking IT, with a projected PE of 44 times for 2025, while the average PE of comparable companies is 67 times, indicating a potential target stock price of 28.11 yuan, representing an upside of 54.39% [6]

Market Overview - The three major indices experienced a collective adjustment, with the Shanghai Composite Index down by 0.22%, and the Shenzhen Component and ChiNext Index declining even more significantly [3] - Despite the index declines, trading volume remained high at 1.6 trillion, indicating active market participation [3] - Over 3,600 stocks fell, highlighting a notable loss effect in the market [3] Sector Highlights Military Industry - The military sector saw significant gains, with stocks like Beifang Navigation and Construction Industry hitting the daily limit [3] - Key drivers include rising tensions in the Middle East, particularly around the Strait of Hormuz, which could increase demand for military supplies [3] - Expectations of asset injections from the Weapons Equipment Group and a 7.2% increase in military spending for the "14th Five-Year Plan" further support the sector's growth [3] Tourism and Hospitality - The tourism and hotel sector surged in the afternoon, driven by the upcoming summer travel season and government policies stimulating consumption [4] - There is considerable internal variance within the sector, with some companies like Changbai Mountain performing well due to seasonal demand, while others struggle [4] Digital Currency and Cross-Border Payment - Digital currency and cross-border payment concepts remained active, with significant developments in the interconnectivity of payment systems between mainland China and Hong Kong [4] - Major companies like Ant Group and JD.com are applying for licenses, indicating positive industry momentum [4] - Companies such as Zhongke Jincai and Hengsheng Electronics are gaining attention from institutional investors due to their technological advancements in digital currency [4] Banking Sector - The banking sector showed strong performance, with several city commercial banks reaching historical highs [5] - This growth is attributed to supportive policies and an average dividend yield of nearly 4%, which is attractive in the current asset environment [5] - The low valuation of bank stocks presents significant recovery potential, particularly in economically active regions [5] Oil and Gas - Oil and gas stocks rebounded sharply, with companies like Zhun Oil hitting the daily limit due to rising oil prices driven by geopolitical tensions [6] - The potential for oil price fluctuations due to international political dynamics necessitates careful monitoring [6] Underperforming Sectors Innovative Pharmaceuticals - The innovative pharmaceutical sector faced significant adjustments, likely due to profit-taking after previous gains [6] - Long-term support from national policies suggests that this sector still holds potential for future growth [6] Semiconductor Industry - The semiconductor sector declined, influenced by setbacks in the photolithography machine segment and a shift in market sentiment towards defensive stocks [6] - The long-term narrative for semiconductors remains intact, with expectations for recovery as market conditions improve [6] Overall Market Sentiment - Despite the index declines, structural opportunities persist, particularly in digital currency, cross-border payments, and military sectors [7] - Long-term investors are encouraged to focus on high dividend bank stocks, policy-supported innovative pharmaceuticals, and the semiconductor sector's domestic alternatives [7] - The current market adjustment period is viewed as an opportune time to invest in quality assets, with patience being key to achieving favorable outcomes [7]

Market Overview - The market experienced a significant rise, with the Shanghai Composite Index reaching 3455 points, marking a new high for the year, while the ChiNext Index surged over 3% [1] - Over 3800 stocks closed in the green, indicating a positive shift in market sentiment [5] Financial Sector - The financial sector saw a collective surge, particularly in brokerage stocks such as Guosheng Financial Holdings, Tianfeng Securities, and Xiangcai Securities, which hit the daily limit [3] - The rise is attributed to increasing expectations for policy easing and the relatively low valuations of brokerage firms, with potential catalysts from ongoing capital market reforms like the deepening of the registration system and the expansion of the Beijing Stock Exchange [3] - Caution is advised for short-term trading, while long-term investors should focus on leading firms with strong investment banking capabilities and wealth management advantages [3] Military Industry - The military sector remained active, with stocks like Guorui Technology and Beifang Changlong hitting the daily limit [3] - The sector benefits from strong performance and policy support, with many military enterprises reporting full order books, particularly in aerospace and missile equipment [3] - Long-term investments should focus on leading companies with core technologies and stable orders, avoiding short-term speculative trades [3] Software Development - The software development sector was also lively, with stocks like Guiding Compass reaching the daily limit [4] - This sector is linked to the financial industry, driven by the demand for financial IT and data security as part of digital transformation [4] - Companies that effectively combine technology with practical applications are seen as having significant future potential, but investors should prioritize firms with tangible projects and cash flow [4] Other Sectors - The oil and gas, pharmaceutical, and shipping sectors faced declines, with stocks like Zhun Oil Shares hitting the daily limit down [4] - The oil and gas sector is affected by recent volatility in international oil prices, while the pharmaceutical sector is still adjusting to the impacts of centralized procurement [4] - The shipping sector is experiencing a withdrawal of funds due to expectations around freight rates and seasonal demand [4] Investment Strategy - The market's upward movement suggests a search for undervalued and high-growth sectors, particularly in financials and military industries [5] - Long-term investors are encouraged to remain calm and avoid chasing short-term speculative stocks, focusing instead on sectors with clear policy benefits and strong mid-year performance forecasts, such as semiconductor equipment, energy storage, and high-end liquor [5]