Report Industry Investment Ratings No relevant information provided. Core Viewpoints of the Report - The report provides market analysis and trading strategies for various industries including macro finance, black commodities, non - ferrous metals and new materials, agricultural products, and energy chemicals. It suggests different trading approaches based on industry fundamentals, supply - demand relationships, and market trends [3][16][20]. Summary by Relevant Catalogs Macro Information - The US federal government "shut down" on October 1st due to a lack of funds, which impacts economic data release and brings uncertainty to global financial markets. The deadlock is centered on disagreements over healthcare subsidies. As of October 6th, the "shut down" continued [7]. - From October 1st to 6th, the average daily passenger volume in China increased by 5.18% year - on - year. The average full - fare of civil aviation decreased by 2.58% year - on - year, and the average bare - fare decreased by 0.03% year - on - year [8]. - In September, China's manufacturing PMI was 49.8%, up 0.4 percentage points month - on - month; non - manufacturing PMI was 50.0%, down 0.3 percentage points; the composite PMI output index was 50.6%, up 0.1 percentage points [8]. - On October 9th, the central bank will conduct a 110 billion yuan 3 - month (91 - day) outright reverse repurchase operation. In October, 80 billion yuan of 3 - month outright reverse repurchases will mature [9]. - The US will impose tariffs on imported softwood logs, lumber, cabinets, bathroom cabinets, upholstered wood products, and medium and heavy - duty trucks starting from October 14th and November 1st respectively [9]. - Fed officials showed a willingness to further cut interest rates in September but were cautious due to inflation concerns [14]. Macro Finance Stock Index Futures - Consider buying on dips and mainly adopt a shock - trading strategy. The A - share market was active before the holiday, and during the holiday, overseas related indexes showed small increases. Overall, the market may be in a shock state [16][17]. Treasury Bond Futures - Consider buying short - term bonds on dips and focus on the steepening strategy. The domestic bond market news was stable during the holiday. The market's expectations for aggregate policies may fluctuate, and further central bank easing may be needed [18][19]. Black Commodities Spiral Steel and Iron Ore - The black market is expected to maintain a medium - term shock trend. Policy expectations are neutral, downstream demand improvement is limited, and inventory and cost factors also affect the market [19][20]. Coking Coal and Coke - The prices of coking coal and coke may continue to fluctuate weakly in the short term, and attention should be paid to the demand of finished products during the "Golden September and Silver October" period [21]. Ferroalloys - After the holiday, focus on the settlement electricity price in Ningxia in September. The supply and demand of ferrosilicon and silicomanganese are in an oversupply state, and a high - selling short - bias strategy is recommended in the long - term [21]. Soda Ash and Glass - For soda ash, adopt a high - selling short - bias strategy; for glass, mainly adopt a wait - and - see approach. The market of soda ash lacks driving factors, and glass needs to pay attention to demand improvement and cost changes [23]. Non - ferrous Metals and New Materials Aluminum and Alumina - After the holiday, Shanghai aluminum may follow the rise of LME aluminum, but the increase may be limited. Alumina is expected to fluctuate weakly at the bottom, and short - selling on rallies can be considered [25]. Lithium Carbonate - Supported by strong short - term reality, lithium carbonate will mainly operate in a shock state. Pay attention to the demand rhythm after the holiday [26]. Industrial Silicon and Polysilicon - Industrial silicon will operate in a range, and short - term long - positions can be considered at the lower end of the range. Polysilicon will continue to operate in a shock state, and attention should be paid to policy and demand changes [27][29]. Agricultural Products Cotton - Adopt a short - selling on rallies strategy. The international cotton market was affected by the US government shutdown and supply pressure during the holiday, and the domestic cotton market is expected to be under supply pressure after the holiday [31][33]. Sugar - Domestically, the sugar market is fundamentally bearish, and a short - selling strategy is recommended in the medium - term. In the short - term, pay attention to the impact of typhoon weather on production [34][35]. Eggs - The spot price of eggs dropped significantly during the holiday. It is recommended to adopt a short - bias strategy for near - month contracts and pay attention to the spread trading of short - near and long - far contracts [36]. Apples - Adopt a wait - and - see approach. Pay attention to the impact of rainfall on apple quality during the National Day holiday and the price differences in different regions [38]. Corn - Adopt a wait - and - see approach for single - side trading and consider selling out - of - the - money call options for the 01 contract. The supply of new corn is increasing, and the price is under pressure [39]. Red Dates - Adopt a wait - and - see approach. Pay attention to the impact of weather on the quality and output of new dates and the progress of orchard contracting [41]. Pigs - Adopt a short - selling on rallies strategy for near - month contracts. The market is in a state of strong supply and weak demand after the double festivals [42][43]. Energy and Chemicals Crude Oil - The price of crude oil is expected to decline due to increased supply and decreased demand. It is recommended to hold existing short - positions [44]. Fuel Oil - The price of fuel oil will follow the trend of crude oil, with a supply - abundant and demand - weak pattern [44]. Plastics - Polyolefins are expected to fluctuate weakly due to supply pressure, and the market will return to fundamental logic in the short - term [47]. Rubber - The domestic rubber market may continue to fluctuate weakly, affected by macro factors, but the decline space is limited. Pay attention to raw material supply and inventory changes [48]. Methanol - The port inventory of methanol is large, but the inventory accumulation speed has slowed down. A weak - shock strategy is recommended, and pay attention to port de - stocking [49]. Caustic Soda - The futures price of caustic soda is expected to be under pressure before the improvement of fundamentals [49]. Asphalt - Asphalt will follow the trend of crude oil, and pay attention to the de - stocking speed in October [50][51]. Polyester Industry Chain - Polyester products are expected to be weak due to cost decline. Pay attention to device maintenance and terminal orders [52]. Liquefied Petroleum Gas (LPG) - LPG supply is abundant, and a long - term bearish strategy is recommended. The CP price may be affected by peak - season stocking in the short - term [53]. Offset Printing Paper - The market of offset printing paper is expected to operate in a shock state. A light - long or put - selling strategy can be considered near the production cost [54]. Pulp - The pulp market has some support. A long - position strategy can be considered on dips if the spot price stabilizes [55]. Urea - The price of urea is expected to be weak due to increased supply, postponed demand, and decreased cost [56]. Synthetic Rubber - Synthetic rubber is expected to fluctuate weakly, and pay attention to downstream procurement after the holiday [57].

Report Summary 1. Report Industry Investment Rating No information about the report industry investment rating is provided in the given content. 2. Core Viewpoints No clear core viewpoints are presented in the provided content. It mainly contains data on pulp prices, spreads, and profit margins. 3. Summary by Relevant Catalogs Pulp Futures Data - The closing price of the SP main contract on 2025/09/30 was 4,834.00, with a -0.90201% change from the previous day [3]. - The discount to the US dollar price on 2025/09/30 was 592.24 [3]. - The Shandong Yinxing basis on 2025/09/30 was 731, and the Jiangsu-Zhejiang-Shanghai Yinxing basis was 726 [3]. Import Cost and Profit Data - Based on a 13% VAT calculation, the import profit for Canadian Golden Lion pulp was -145.57, for Canadian Lion pulp was -588.29, and for Chilean Silver Star pulp was -136.92 [4]. Pulp and Paper Price Data - From 2025/09/24 to 2025/09/30, there were no changes in the national average prices of softwood pulp, hardwood pulp, natural pulp, and chemimechanical pulp, nor in the Shandong regional average prices [4]. - From 2025/09/25 to 2025/09/30, there were no changes in the indices of cultural paper (offset and coated paper), packaging paper (white card), and the living paper index [4]. Paper Profit Margin Data - From 2025/09/25 to 2025/09/30, the offset paper profit margin remained at 0.0430%, the coated paper profit margin at 14.9105%, the white card paper profit margin at -10.8970%, and the living paper profit margin increased from 6.6876% to 7.0696% [4]. Pulp Spread Data - From 2025/09/24 to 2025/09/30, the softwood-hardwood pulp spread was 1,325.00 on 2025/09/30, the softwood-natural pulp spread was 165, the softwood-chemimechanical pulp spread was 1,765, and the softwood-waste paper spread was 3,989 [4].

Core Viewpoint - The company, Mudanjiang Hengfeng Paper Co., Ltd., has announced the suspension of the review process for its application to acquire 100% equity of Sichuan Jinfeng Paper Co., Ltd. through a share issuance, due to the need for updated financial data [1][2]. Group 1: Transaction Overview - The company received a notice from the Shanghai Stock Exchange on September 30, 2025, indicating that the review of its share issuance for asset acquisition has been suspended [1]. - The financial data in the application was based on an audit report with a reference date of December 31, 2024, necessitating an extension of the audit period to ensure data validity [1][2]. - The company had previously submitted its application on June 27, 2025, and disclosed related documents on July 1, 2025, followed by a response to an inquiry from the exchange on August 30, 2025 [2]. Group 2: Impact and Future Arrangements - The suspension of the review is not expected to have a significant adverse impact on the transaction, and the company's operations remain normal [2]. - The company is actively working with relevant intermediaries to complete the extended audit and update the application documents, with plans to resubmit to the Shanghai Stock Exchange once the updates are finalized [2].

Core Insights - Yueyang Lin Paper Co., Ltd. has achieved significant production milestones, with its Yueyang production base exceeding monthly production targets for five consecutive months from May to September this year [1] - The company has effectively optimized resource allocation and enhanced production efficiency amidst fluctuating market conditions, showcasing resilience and vitality in the industry [1] Production Performance - The 11th paper machine has been a key driver of production growth, operating at speeds exceeding design specifications, with a maximum speed of 1700 meters per minute and a stable speed of 1600 meters per minute [1] - From January to September, the 11th paper machine produced over 360,000 tons, achieving 107.1% of its production plan with a premium product rate of 98.4% [1] Technological Advancements - The company has implemented digital transformation of its production lines, leading to improved quality and efficiency [2] - The production of chemical pulp and mechanical pulp has increased by 13.1% and 33.3% respectively compared to the same period last year, enhancing the company's competitive edge in quality and cost [2] Export and Market Strategy - Yueyang Lin Paper is actively increasing its product exports, capitalizing on emerging market opportunities, with significant growth in finished paper exports from January to September [2] - The company has optimized logistics and supply chain management to ensure smooth operations, coordinating with suppliers and enhancing delivery efficiency [2] Industry Context - The demand for cultural paper is rising in rapidly developing regions such as the Middle East and Southeast Asia, while stricter environmental policies in Europe and the U.S. are leading to a reduction in high-energy-consuming paper production [3] - Chinese paper companies, including Yueyang Lin Paper, are leveraging their scale and mature supply chains to establish a competitive advantage in the international market through capacity upgrades and market diversification [3]

Group 1 - The core point of the article is that Xianhe Co., Ltd. (603733.SH) has completed its share buyback plan, which was set to expire on October 8, 2025 [1] - During the implementation period, the controlling shareholder, Zhejiang Xianhe Holding Group Co., Ltd., increased its stake by acquiring a total of 13,589,408 shares, representing 1.92% of the company's total share capital [1] - The total amount spent on this share buyback was approximately RMB 300.01 million [1]

Market Overview - U.S. stock futures are higher, with Dow futures gaining approximately 100 points [1] Quantum Computing Inc. - Quantum Computing Inc. (NASDAQ:QUBT) raised $750 million from institutional investors through a market-priced private placement led by top shareholders [1] - Shares of Quantum Computing fell sharply by 11.7% to $21.70 in pre-market trading [1] Other Stocks in Pre-Market Trading - Rich Sparkle Holdings Ltd (NASDAQ:ANPA) dropped 15% to $22.10 after a 10% decline on Friday [3] - Nordic American Tankers Ltd (NYSE:NAT) decreased by 7.8% to $3.07 [3] - Smurfit WestRock PLC (NYSE:SW) fell 5.8% to $39.54 [3] - Mesoblast Ltd (NASDAQ:MESO) declined 5.2% to $17.45, despite an 8% gain on Friday following the announcement of Ryoncil receiving a J-Code from Medicare & Medicaid Services [3] - Invesco Mortgage Capital Inc (NYSE:IVR) decreased by 4.4% to $7.42 [3] - Inventiva ADR (NASDAQ:IVA) fell 4.2% to $6.26 after appointing Andrew Obenshain as CEO [3] - International Paper Co (NYSE:IP) dropped 4.2% to $45.21 ahead of its third-quarter earnings release on October 30 [3] - Lufax Holding Ltd – ADR (NYSE:LU) fell 3.7% to $3.85 after an 8% decline on Friday [3] - Larimar Therapeutics Inc (NASDAQ:LRMR) decreased by 3.3% to $4.71 after a 14% jump on Friday [3]

Investment Rating - The industry investment rating is "Positive" [1] Core Viewpoints - The packaging paper prices are steadily increasing, supported by strong seasonal demand and effective price transmission from leading companies like Nine Dragons and Shanying [4] - The price of pulp is stabilizing, with domestic bleached softwood pulp priced at 5725 CNY/ton and bleached hardwood pulp slightly increasing to 4232.5 CNY/ton, indicating a trend towards a balanced supply-demand relationship [4] - The industry is accelerating its transformation towards high-end, green, and intensive development, as evidenced by significant projects like the 280,000-ton specialty paper project by Jindong Paper [4][26] - The valuation of the paper sector remains low historically, with strong cash flow and high certainty in mid-term performance, suggesting potential for valuation recovery [4] Summary by Sections Industry News - The recent price increases in raw paper are a response to rising costs, with many paperboard manufacturers issuing price hikes of 3%-4% [6] - Leading companies in the packaging paper sector have initiated multiple price increases since August, driven by high raw material costs [7] High-Frequency Data - The average pulp futures inventory has decreased to 239,900 tons, indicating a tightening supply [8] - The average closing price for pulp futures is 4999.2 CNY/ton, reflecting a slight increase [9] Company Events and Announcements - Nine Dragons Paper reported a 135.4% year-on-year increase in net profit for the fiscal year 2025, reaching 1.767 billion CNY, with significant growth in sales volume and revenue [27] - Jindong Paper's specialty paper project has reached a construction milestone, emphasizing the company's commitment to market transformation and green development [26] Investment Strategy - The report suggests focusing on leading companies in the packaging paper sector that are benefiting from seasonal demand and price increases, while also considering companies with clear growth paths and resilience to economic cycles in specialty and consumer paper segments [29]

Investment Rating - The report maintains an investment rating of "Outperform the Market" for the light industry sector [7][11]. Core Insights - The light industry sector's revenue increased by 3.59% year-on-year in Q2 2025, reaching 1580.45 billion yuan, while H1 2025 saw a 2.34% increase to 2958.02 billion yuan. However, the net profit attributable to shareholders decreased by 23.98% to 72.05 billion yuan in Q2 2025, and by 20.32% to 136.67 billion yuan in H1 2025 [4][15]. - The paper industry experienced a revenue decline of 11.91%, while the home furnishing and packaging sectors achieved double-digit growth. The custom home furnishing segment faced pressure, while the soft furnishings performed relatively better [4][9][15]. Summary by Sections Overall Light Industry - The light industry sector's revenue growth is steady, but profitability is diverging across segments. The paper segment is under pressure, while home furnishing and packaging are performing well [4][15]. - The overall gross margin for the light industry decreased by 0.41 percentage points in Q2 2025 compared to the previous year, indicating profitability challenges [15][26]. Home Furnishing - The home furnishing sector's revenue grew by 10.68% year-on-year in Q2 2025, reaching 679.39 billion yuan, but net profit decreased slightly by 0.28% to 58.84 billion yuan [31]. - Custom orders are under pressure, while soft furnishings are performing better than expected. The sector is adapting to market conditions by adjusting pricing strategies [31][32]. Paper Industry - The paper segment's revenue fell by 11.91% to 425.04 billion yuan in Q2 2025, with a net profit of -7.47 billion yuan, indicating significant challenges [9][24]. - Despite the challenges, leading companies like Sun Paper are seeing a recovery in profitability, and there are expectations for price rebounds in the future [9][15]. Packaging - The packaging sector's revenue increased by 14.98% to 338.65 billion yuan in Q2 2025, with a net profit growth of 15.07% to 15.20 billion yuan, reflecting strong performance [9][33]. - The sector is benefiting from stable demand in consumer electronics and proactive overseas expansion strategies [9][15]. Entertainment Products - The entertainment products sector's revenue grew by 1.85% to 137.36 billion yuan in Q2 2025, but net profit decreased by 10.14% to 5.47 billion yuan, indicating pressure on profitability [10][42]. - The sector is seeing growth driven by new product launches and channel promotions, particularly in personal care and AI glasses [10][42]. Export Chain - The export chain's revenue increased by 5.01% to 199.59 billion yuan in Q2 2025, but net profit decreased by 3.53% to 16.86 billion yuan, highlighting mixed performance across companies [10][51]. - Tariff uncertainties are impacting orders, but companies with established overseas production capabilities are mitigating risks effectively [10][51].

Market Overview - The paper sector experienced a decline of 0.34% on September 30, with Qingshan Paper leading the drop [1] - The Shanghai Composite Index closed at 3882.78, up 0.52%, while the Shenzhen Component Index closed at 13526.51, up 0.35% [1] Individual Stock Performance - Zhi Xing Paper (002067) closed at 6.28, up 2.11% with a trading volume of 3.4872 million shares and a turnover of 2.174 billion [1] - Qingshan Paper (600103) closed at 3.68, down 3.16% with a trading volume of 2.84 million shares and a turnover of 1.061 billion [2] - Other notable performers include Annie Co. (002235) with a closing price of 7.29, up 0.97%, and Yibin Paper (600793) at 22.40, up 0.22% [1][2] Capital Flow Analysis - The paper sector saw a net outflow of 207 million from institutional investors, while retail investors contributed a net inflow of 169 million [2] - The capital flow for individual stocks shows that Annie Co. had a net inflow of 17.4842 million from institutional investors, while it faced a net outflow of 2.064 million from speculative funds [3] Summary of Trading Data - The trading data indicates that the paper sector is experiencing mixed performance, with some stocks gaining while others are declining [1][2] - The overall trading volume and turnover reflect active participation in the sector, despite the net outflow from institutional investors [2][3]

Group 1: Semiconductor Industry - SMIC is the only domestic foundry with advanced process technology, benefiting from the explosion in AI chip demand and domestic substitution trends[1] - In 2025, advanced process revenue is expected to grow by 68% year-on-year, with plans to expand capacity to become the third-largest foundry globally[1] - The company's orders visibility has extended to 2026, indicating strong demand from key clients[1] Group 2: AI and Computing - Fourth Paradigm's platform sales are expected to turn from loss to profit, with a projected EPS increase from -0.6 to 0.4[1] - The overall valuation is currently around 4 times P/S, which is relatively low compared to domestic AI companies like SenseTime and US-based Palantir[1] - Risks include underperformance in AI technology development and market demand not meeting expectations[1] Group 3: Battery and Energy Storage - Zhongxin Innovation's revenue is projected to grow significantly, with a 101% increase in net profit expected in 2025[1] - The company is benefiting from high margins in overseas sales of power batteries and strong growth in commercial vehicles and energy storage batteries[1] - Risks include fluctuations in raw material prices and intensified competition in the industry[1] Group 4: Aerospace and Defense - AVIC Shenyang Aircraft's performance is expected to improve due to the implementation of fundraising projects aimed at enhancing research and production capabilities[1] - The company is focusing on modernizing weaponry and defense equipment, with a projected revenue increase of 13% in 2025[1] - Risks include legal penalties and management challenges affecting operational efficiency[1] Group 5: Pharmaceutical Sector - Zai Lab is advancing its commercialization efforts with three approved products, including a JAK inhibitor participating in the 2025 medical insurance negotiations[1] - The company is expected to accelerate product promotion, benefiting patients and enhancing revenue streams[1] - Risks include potential failures in new drug development and regulatory approval delays[1]