Investment Rating - The report does not explicitly state an investment rating for the industry, but it suggests a focus on leading companies in the air conditioning and maternal and infant sectors due to current market conditions and policy support [3][4]. Core Insights - Extreme high temperatures in Europe have significantly increased demand for air conditioning units, with a notable rise in exports from China to Europe, indicating a robust market opportunity [4]. - The recent push for pro-natalist policies across various provinces in China is expected to enhance the investment value in maternal and infant-related industries, as these policies aim to alleviate the financial burden of raising children [4]. - The report highlights the importance of monitoring the duration and intensity of extreme weather conditions, as well as the performance of leading companies in terms of order growth and earnings realization [4]. Summary by Sections Market Weekly Review - The consumer sector showed mixed performance, with home appliances and textiles leading the gains, while sectors like beauty care and retail experienced declines [4]. - Notable stock performances included significant gains for companies like Huashanghuan (+11.71%) and Feiyada (+21.56%), while stocks like Xinshunda (-9.13%) and Jinsong New Materials (-21.72%) faced substantial losses [4]. Industry News and Key Company Announcements - The report discusses various industry news, including regulatory responses to illegal medical beauty training and significant corporate acquisitions aimed at diversifying product offerings in the pet food market [16][18]. - Companies like San Zhi Song Shu and Guo Quan announced substantial investments in supply chain improvements and new production bases, indicating a strategic focus on enhancing operational capabilities [20][21].

Core Viewpoint - The meeting held by the China Light Industry Federation on June 27 aims to enhance the standardization work in the light industry, summarize achievements during the 14th Five-Year Plan, and outline key tasks for the next phase to promote high-quality development in the industry [3][4]. Group 1: Achievements and Developments - The standardization work has significantly contributed to the transformation and upgrading of the light industry, meeting the growing needs of the people for a better life [4]. - The organizational structure has been improved, with 46 national professional standardization technical committees and 92 sub-committees established, involving 6,510 committee members [5]. - A total of 3,143 national standards and 3,748 industry standards are currently in effect, with over 1,100 group standards developed, including 60 recognized as typical cases for application and promotion by the Ministry of Industry and Information Technology [6]. Group 2: Focus Areas for Future Work - The China Light Industry Federation plans to implement five key actions to enhance standardization, including optimizing the organizational structure, improving the standard system, leading with new quality standards, breaking through international standards, and empowering talent development [12][13][14][15][16]. - The goal is to develop over 500 new standards focusing on health, safety, digital intelligence, high-end manufacturing, and green low-carbon initiatives [14]. - The international standard conversion rate is targeted to remain above 85%, with key areas aiming for a conversion rate of 95% [15]. Group 3: Challenges and Recommendations - Despite achievements, challenges remain, such as uneven capability levels, lagging new quality standard supply, and a shortage of professional talent [11][17]. - Recommendations include enhancing the quality and efficiency of standard supply, optimizing internal management, and strengthening technical requirements to ensure safety and quality in the light industry [18].

Report Industry Investment Rating No relevant content provided. Core Viewpoints - In June, all major market indices' valuations were adjusted upwards. In terms of price - to - earnings ratio and price - to - book ratio, the historical percentile increases of CSI 300 and CSI All - Share were among the top, while the ChiNext Index remained at a historical low. Among the 31 Shenwan primary industries, 23 industries rose, with the top 5 gainers being communication, national defense and military industry, non - ferrous metals, electronics, and media; the top 5 losers were food and beverage, beauty care, household appliances, coal, and transportation [1]. - In June, 70 new funds were issued, with a total issuance scale of 62.728 billion yuan. The issuance of active equity funds was booming, while the issuance of passive equity funds decreased slightly. Only commodity - type funds declined, with a 1.66% drop, and the largest gain was in equity - biased funds, up 2.68% [2]. - From the perspective of fund style indices, the growth style outperformed the value style, and the large - cap style underperformed the small - cap style. Overall, the mid - cap growth style performed outstandingly, rising 5.83%, while the large - cap value style had the smallest increase, about 2.52% [2]. - In the ETF market, last month, there was a net inflow of 59.605 billion yuan. Bond - type ETFs had a net inflow of over 90 billion yuan, and stock - type ETFs had a net outflow of 31.54 billion yuan [3]. - In June, the risk - parity model rose 1.59%, and the risk - budget model rose 2.34% [5]. Summary by Directory 1. Last Month's Market Review 1.1 Domestic Market Situation - In June, all major indices in the Shanghai and Shenzhen markets rose. The ChiNext Index rose by over 8%, and the Shenzhen Component Index and CSI 500 rose by over 4%. Among the 31 Shenwan primary industries, 23 industries rose. The top 5 gainers were communication, national defense and military industry, non - ferrous metals, electronics, and media; the top 5 losers were food and beverage, beauty care, household appliances, coal, and transportation. In the bond market, the ChinaBond Composite Full - Price Index rose 0.31%, and the total full - price indices of ChinaBond Treasury bonds, financial bonds, and credit bonds rose between 0.13% and 0.40%. The CSI Convertible Bond Index rose 3.34%. In the commodity market, the Nanhua Commodity Index rose 4.03% [13]. 1.2 European, American, and Asia - Pacific Market Situation - In June, most European, American, and Asia - Pacific markets rose. In the US stock market, the S&P 500 rose 4.89%, the Dow Jones Industrial Average rose 4.21%, and the Nasdaq rose 6.57%. In the European market, the French CAC 40 fell 1.11%, and the German DAX fell 0.37%. In the Asia - Pacific market, the Hang Seng Index rose 3.36%, and the Nikkei 225 rose 6.64% [21]. 1.3 Market Valuation Situation - In June, all major market indices' valuations were adjusted upwards. In terms of price - to - earnings ratio and price - to - book ratio, the historical percentile increases of CSI 300 and CSI All - Share were among the top, while the ChiNext Index remained at a historical low. Among industries, the top five industries with the highest historical percentiles of price - to - earnings ratio in the Shenwan primary index last month were real estate, banking, automotive, chemical, and electronics. The real estate industry's price - to - earnings ratio percentile reached 96.6%. The five industries with lower historical percentiles of price - to - earnings ratio were agriculture, forestry, animal husbandry and fishery, non - bank finance, food and beverage, light manufacturing, and household appliances, all with percentiles less than 25% [24]. 2. Overall Situation of Public Offering Funds 2.1 Fund Issuance Situation - In June, 70 new funds were issued, with a total issuance scale of 62.728 billion yuan. Among them, 33 stock - type funds were issued with a scale of 11.646 billion yuan; 14 hybrid funds were issued with a scale of 6.317 billion yuan; 14 bond - type funds were issued with a scale of 35.293 billion yuan; 4 FOF funds were issued with a scale of 7.5 billion yuan; 3 REITs funds were issued with a scale of 1.3 billion yuan; and 2 QDII funds were issued with a scale of 0.67 billion yuan. A total of 17 active equity funds were issued with a scale of 6.738 billion yuan, and 36 index funds were issued with a scale of 28.472 billion yuan. The issuance of active equity funds increased significantly, while that of passive equity funds decreased slightly [32]. 2.2 Fund Market Return Situation - In June, only commodity - type funds declined, with a 1.66% drop, and the largest gain was in equity - biased funds, up 2.68%, with a positive return ratio of 97.63%. From the perspective of fund style indices, the growth style outperformed the value style, and the large - cap style underperformed the small - cap style. The mid - cap growth style performed outstandingly, rising 5.83%, while the large - cap value style had the smallest increase, about 2.52%. Generally, smaller - scale funds in the equity market performed better. The large - scale funds with a scale of 4 - 10 billion had the largest average increase of 2.80%, with a positive return ratio of 97.52%, while the super - large - scale funds over 10 billion had the smallest increase of 2.16%, with a positive return ratio of 88.46% [2][40][43]. 2.3 Active Equity Fund Position Situation - Using Lasso regression to measure the positions of active equity funds, the position on June 30, 2025, was 75.44%, a decrease of 3.76 percentage points from the previous month [47]. 3. ETF Fund Situation - In the ETF market, last month, there was a net inflow of 59.605 billion yuan. Bond - type ETFs had a net inflow of over 90 billion yuan, and stock - type ETFs had a net outflow of 31.54 billion yuan, with funds flowing from broad - based indices such as CSI 300 to bond funds. In terms of liquidity, the average daily trading volume of the overall ETF market this period reached 265.76 billion yuan, the average daily trading volume reached 126.808 billion shares, and the average daily turnover rate reached 8.59%. At the individual bond level, most broad - based index targets had net outflows except for the CSI A500 Index. Huatai - PineBridge CSI 300 ETF had a net outflow of 5.45 billion yuan, while Huatai - PineBridge CSI A500 ETF had a net inflow of 13.54 billion yuan. Among the most actively traded targets, Financial Technology ETF, Hong Kong Securities ETF, Communication Equipment ETF, ChiNext Artificial Intelligence ETF Huabao, and 5G ETF had the highest monthly gains, rising between 15.7% and 18.8%. Food and Beverage ETF, Consumption 30 ETF, Wine ETF, Leading Home Appliance ETF, and Southeast Asia Technology ETF had the highest monthly losses, falling between 1.6% and 4.4%. In terms of fund flow, the top funds with net inflows also included Hong Kong Stock Connect Innovation Pharmaceutical ETF, Bank ETF, A500ETF Harvest, and Hong Kong Non - Bank ETF; the top funds with net outflows also included CSI 300ETF E Fund, ChiNext ETF, Harvest CSI 300ETF, and CSI A500ETF Fullgoal [3][51][52]. 4. Model Operation Situation - Four types of large - asset allocation models were constructed using stocks, bonds, commodities, and QDII. In June, the risk - parity model rose 1.59%, and the risk - budget model rose 2.34%. Since 2015, the annualized return of the risk - parity model has been 4.64%, with a maximum drawdown of 2.31%; the annualized return of the risk - budget model has been 4.45%, with a maximum drawdown of 9.80%. Next month, the asset allocation weights of the models remain unchanged. For the risk - parity model, the ratio of stocks: bonds: commodities: QDII is 6%: 70%: 12%: 11%; for the risk - budget model, it is 13%: 52%: 9%: 25% [62][63][65].

Core Insights - The light industry in China is showing a steady recovery, with significant growth in revenue and profit during the first five months of the year [1][2] Group 1: Economic Performance - From January to May, large-scale light industry enterprises achieved operating income of 9.27 trillion yuan, a year-on-year increase of 4.7% [1] - Profit reached 531.45 billion yuan, reflecting a year-on-year growth of 2.8% [1] - The overall economic operation of the light industry continues to show a trend of steady progress [2] Group 2: Domestic Market Expansion - Domestic consumption demand has been steadily released, with retail sales of 11 categories of light industry goods reaching 3.5136 trillion yuan, a year-on-year increase of 11.9%, accelerating by 1.2 percentage points compared to the first four months [1] - In the home appliance sector, retail sales of household appliances and audio-visual equipment grew by 30.2%, maintaining double-digit growth since September of the previous year [1] - The added value of the home appliance industry increased by 6.9%, with production volumes for washing machines, water dispensers, and air conditioners growing by 9.3%, 7.9%, and 5.9% respectively [1] - The operating income of the home appliance manufacturing industry grew by 6.0% [1] Group 3: Export Performance - Light industry exports totaled 373.21 billion USD from January to May, showing a year-on-year increase of 0.5% despite facing pressure [1] - Out of 21 major categories in the light industry, 10 categories experienced a year-on-year increase in export value [1]

Investment Rating - The report maintains a "Recommended" rating for Midea Group, indicating confidence in the company's ability to sustain growth despite industry challenges [4]. Core Views - Midea Group is expected to maintain steady growth and attractive dividend yields, even as the home appliance industry faces a downturn. The company has demonstrated strong competitive advantages and a commitment to shareholder returns [4][6]. - The report highlights that Midea's revenue and profit growth in Q1 2025 exceeded market expectations, with projected revenue growth of 7-9% and net profit growth of 10-15% for Q2 2025 [4]. - The report emphasizes the resilience of Midea's business model, particularly in the context of ongoing market adjustments and external pressures such as U.S. tariff policies [4][6]. Summary by Sections Financial Performance - For Q1 2025, Midea Group reported revenue of 127.8 billion yuan, a year-on-year increase of 20.5%, and a net profit of 12.4 billion yuan, up 38.0% year-on-year [4]. - The forecast for 2024 indicates total revenue of 409.1 billion yuan, with a growth rate of 9.5%, and a net profit of 38.5 billion yuan, reflecting a growth rate of 14.3% [5]. Market Position - Midea Group's A-share price as of July 1, 2025, was 72.11 yuan, with a market capitalization of 497.9 billion yuan [2]. - The company's A-share price-to-earnings (P/E) ratio is projected to be 12.5x for 2025, which is below its historical average, suggesting a potentially undervalued position [6]. Dividend Policy - Midea Group's dividend payout ratio is expected to reach 69% in 2024, with a projected dividend yield of 5.5% for 2025, making it attractive for income-focused investors [4][10]. Industry Outlook - The home appliance industry is anticipated to experience a gradual decline in growth rates, but Midea is expected to leverage its competitive strengths to continue growing [4]. - The report notes that Midea's industrial business, particularly in HVAC and related sectors, is showing strong growth potential, with significant opportunities in international markets [4][6].

Investment Rating - The report suggests a positive outlook for the industry, indicating a potential for growth in the next 6-12 months, with a focus on specific sectors such as high-end equipment, new energy, and information technology [6][7]. Core Insights - The North Exchange A-shares saw a trading volume of 30.73 billion yuan on July 1, with a slight increase in the index by 0.7%. Among 268 companies, 113 rose, 6 remained flat, and 149 fell [3][13]. - The newly launched North Exchange Specialized and Innovative Index has strengthened the positioning of the North Exchange as a primary platform for specialized and innovative companies, attracting new capital [6][7]. - The report emphasizes the importance of monitoring macroeconomic policies and performance indicators, particularly in light of upcoming central government meetings and mandatory mid-year earnings forecasts [6][7]. Market Review - The trading volume for North Exchange A-shares reached 30.73 billion yuan, with a turnover rate of 5.4%, leading among various sectors [13][14]. - The top five gainers included Huawai Design (30.0%), Jinbo Biological (11.0%), and Jinhao Medical (10.6%), while the top five losers were Patel (-9.4%), Tonghui Information (-9.2%), and Guoyuan Technology (-7.5%) [23][26]. Important News - The People's Bank of China and other departments issued guidelines to support consumption and capital markets, aiming to enhance financial services and boost market sentiment [27]. - JinHao Medical announced a cash dividend of 0.3 yuan per 10 shares, while other companies like DR Tianrun Technology reported obtaining three invention patents, highlighting their innovation capabilities [29][32].

Core Viewpoint - The marine economy concept stocks have surged significantly, becoming one of the strongest performing sectors in the A-share market this morning [1][3]. Group 1: A-share Market Performance - The A-share market exhibited mixed performance this morning, with major indices showing limited volatility [4]. - The marine economy concept sector led the gains, with an overall increase of over 6%, and several stocks, including Deepwater Haina, reached the daily limit of 20% [5]. Group 2: Policy Support for Marine Economy - The Central Financial Committee's sixth meeting emphasized the importance of high-quality development of the marine economy, focusing on innovation, efficient collaboration, and industry updates [7]. - Key initiatives include enhancing top-level design, increasing policy support, and encouraging social capital participation in marine economic development [7]. - The meeting highlighted the need to strengthen marine technology innovation capabilities and develop leading marine technology enterprises [7]. Group 3: Hong Kong Market Activity - The Hong Kong market showed overall positive performance, with the Hang Seng Index rising by over 1% at one point [2]. - Notably, the stock of Leading Pharmaceutical Biotechnology experienced a dramatic increase of over 200% during trading [8][9]. Group 4: Potential Acquisition in Hong Kong - Leading Pharmaceutical Biotechnology announced a memorandum of understanding regarding a potential acquisition, which is contingent upon the target company completing the acquisition of Conflux assets [9][10]. - The acquisition aims to diversify the company's revenue sources and expand into the digital innovation sector, particularly blockchain technology [10].

Group 1: ESG Investment Strategy - The ESG selection strategy for the CSI 300 has shown an absolute return of 2.97% in June, with a total return of 1% and a Sharpe ratio of 1.83 as of June 29 [2][3] - The ESG sentiment integration strategy also performed well, achieving a total return of 3% in June, with a Sharpe ratio of 3.15 [2][3] Group 2: Chemical Industry - Brent oil prices are expected to fluctuate between $60 and $70 per barrel, with supply and demand dynamics being crucial for industry profitability [10][8] - The chemical industry is anticipated to benefit from domestic economic stimulus policies, leading to structural opportunities driven by domestic demand [10][8] Group 3: Home Appliances - The home appliance sector experienced a decline of 3.30% in June, with concerns over the slowing of government subsidies and intense competition during the 618 shopping festival [13][14] - The market is expected to see a cooling in retail growth rates for home appliances starting in July, particularly due to high base effects from previous subsidies [14][16] Group 4: Zijin Mining - Zijin Mining announced the acquisition of the Raygorodok gold mine for $1.2 billion, which is expected to significantly enhance its resource base in Central Asia [20][22] - The Raygorodok mine has a projected annual gold production of approximately 5.5 tons, contributing to the company's goal of reaching 100-110 tons of gold production by 2028 [23][22] Group 5: North Exchange Market - The North Exchange's index rose by 6.84%, with increased trading activity and a focus on new industries such as artificial intelligence and commercial aerospace [26][28] - The market is expected to maintain high levels of trading activity and investor interest, particularly in emerging sectors with unique business models [28][26]

Group 1 - Main capital outflow in the last two weeks totaled 138.204 billion, with net inflows in the home appliance and coal industries, while the top three industries for net outflows were computer, basic chemicals, and national defense [2] - Current margin trading balance is 1,838.493 billion, up 0.94% from the previous period, with financing balance at 1,826.553 billion and securities lending balance at 11.940 billion [2] - In the last two weeks, the number of rising stocks exceeded the number of falling stocks, with the top three industries in terms of growth being communication, computer, and electronics, while the top three industries with declines were beauty care, oil and petrochemicals, and pharmaceuticals [2] Group 2 - The overall A-share strength analysis score is 5.97, with the CSI 300 score at 5.83, the ChiNext score at 6.28, and the STAR Market score at 6.40, indicating a neutral range [2] - The Shanghai Composite Index has broken through the March high, but there is still a gap to a bull market initiation, with short-term indices possibly reaching higher levels but unlikely to achieve significant long-term increases [3] - Future focus on opportunities in robotics and national defense industries, with a recommendation to pay attention to Hong Kong stock opportunities [3]

Group 1 - The United States implemented a new tariff policy on June 23, imposing a 50% tariff on eight categories of steel household appliances, including refrigerators, dryers, and washing machines [1][3] - This policy is part of a series of protectionist measures aimed at creating a favorable environment for domestic industries and encouraging manufacturing to return to the U.S. [3][5] - The European Union responded swiftly by announcing a package of tariffs on $950 billion worth of U.S. products, covering various sectors such as civil aircraft, automobiles, medical devices, agricultural products, and alcoholic beverages [3][5] Group 2 - The EU's response is driven by long-standing trade imbalances and concerns over the impact of U.S. policies on EU industries and employment [5][8] - The trade conflict between the U.S. and EU is expected to disrupt global supply chains, affecting raw material supply, component production, and product sales [5][8] - The ongoing trade tensions are likely to hinder global economic growth, as increased tariffs raise product prices and suppress consumer demand [5][8] Group 3 - In the short term, the trade conflict will exacerbate tensions between the U.S. and EU, leading to higher costs for businesses and consumers [8] - Long-term implications may include the EU pursuing greater strategic autonomy, reducing reliance on the U.S. market and technology, and enhancing its own defense capabilities [8]