- The report tracks stocks, industries, and sectors that have reached new highs, which can be seen as market indicators. It highlights the effectiveness of momentum and trend-following strategies[11] - The report uses the 250-day high distance to represent new highs, calculated as follows: $ 250 \text{ day high distance} = 1 - \frac{Closet}{ts\_max(Close, 250)} $ where Closet is the latest closing price, and ts_max(Close, 250) is the maximum closing price over the past 250 trading days[11] - As of November 7, 2025, the 250-day high distances for major indices are: Shanghai Composite Index 0.47%, Shenzhen Component Index 2.34%, CSI 300 1.45%, CSI 500 2.93%, CSI 1000 1.39%, CSI 2000 1.36%, ChiNext Index 3.49%, and STAR 50 Index 8.02%[12][13] - The report identifies 1018 stocks that reached new 250-day highs in the past 20 trading days, with the highest numbers in the machinery, basic chemicals, and electronics industries[19] - The highest proportions of new high stocks are in the coal, non-ferrous metals, and steel industries[19] - The report tracks "stable new high" stocks based on analyst attention, relative strength, trend continuity, price path stability, and new high sustainability[27] - The screening criteria for stable new high stocks include: - Analyst attention: At least 5 buy or hold ratings in the past 3 months - Relative strength: Top 20% in market performance over the past 250 days - Price stability: Evaluated using the absolute value of price changes over the past 120 days and the sum of absolute daily price changes over the past 120 days[27] - The report lists 50 stable new high stocks, with the highest numbers in the cyclical and technology sectors[28]

- The report introduces a quantitative model called "250-day new high distance" to track market trends and identify investment hotspots. The model is based on the idea that stocks nearing their 52-week high tend to outperform those far from their 52-week high, as supported by research from [George@2004] and other experts[11][18]. The formula for calculating the 250-day new high distance is: $ 250 \text{ day new high distance} = 1 - \frac{\text{Close}_{t}}{\text{ts\_max(Close, 250)}} $ where $\text{Close}_{t}$ represents the latest closing price, and $\text{ts\_max(Close, 250)}$ is the maximum closing price over the past 250 trading days. If the latest closing price reaches a new high, the distance is 0; otherwise, it is a positive value indicating the degree of decline from the high[11] - The report evaluates the model positively, highlighting its effectiveness in identifying market trends and leading stocks that drive market cycles[11][18] - The report also introduces a factor-based screening method for "stable new high stocks" using criteria such as analyst attention, relative stock strength, price path smoothness, and new high sustainability. The screening process includes: 1. Analyst attention: At least 5 buy or overweight ratings in the past 3 months 2. Relative stock strength: Top 20% of market-wide 250-day price change 3. Price path smoothness: Evaluated using metrics like absolute value of price changes over the past 120 days and cumulative absolute price changes over the same period 4. New high sustainability: Average 250-day new high distance over the past 120 days 5. Trend continuation: Average 250-day new high distance over the past 5 days[25][27] - The report positively evaluates the factor-based screening method, citing research that smooth price paths and sustained momentum are associated with stronger returns[25][27] --- - The backtesting results for the "250-day new high distance" model show that as of November 7, 2025, major indices such as the Shanghai Composite Index, Shenzhen Component Index, CSI 300, CSI 500, CSI 1000, CSI 2000, ChiNext Index, and STAR 50 Index have respective 250-day new high distances of 0.47%, 2.34%, 1.45%, 2.93%, 1.39%, 1.36%, 3.49%, and 8.02%[2][12][32] - The backtesting results for the "stable new high stocks" factor show that 50 stocks were selected based on the screening criteria. Among these, the cyclical and technology sectors had the highest number of stocks, with 21 and 16 stocks respectively. Within the cyclical sector, the non-ferrous metals industry had the most new high stocks, while the electric equipment and new energy industry led the technology sector[3][28][33]

Group 1 - The report tracks stocks, industries, and sectors that are reaching new highs, indicating market trends and hotspots [1][4][25] - As of November 7, 2025, the distance to the 250-day new high for major indices is as follows: Shanghai Composite Index at 0.47%, Shenzhen Component Index at 2.34%, CSI 300 at 1.45%, CSI 500 at 2.93%, CSI 1000 at 1.39%, CSI 2000 at 1.36%, ChiNext Index at 3.49%, and STAR 50 Index at 8.02% [6][25] - Among the CITIC first-level industry indices, the oil and petrochemical, electric equipment and new energy, comprehensive, electric and public utilities, and steel industries are closest to their 250-day new highs, while food and beverage, comprehensive finance, pharmaceuticals, real estate, and retail industries are further away [9][25] Group 2 - A total of 1,018 stocks reached a 250-day new high in the past 20 trading days, with the highest number of new highs in the machinery, basic chemicals, and electronics sectors [2][14][25] - The highest proportion of new high stocks is found in the coal, non-ferrous metals, and steel industries, with respective proportions of 52.78%, 52.42%, and 39.62% [14][25] - The cyclical and manufacturing sectors had the most new high stocks this week, with respective counts of 319 and 301 [16][25] Group 3 - The report identifies 50 stocks that have shown stable new highs based on analyst attention, relative strength, price path stability, and continuity of new highs, including companies like Shannon Chip and Zhongji Xuchuang [3][20][27] - The cyclical and technology sectors had the most stocks reaching stable new highs, with 21 and 16 stocks respectively [20][27] - In the cyclical sector, the non-ferrous metals industry had the most new highs, while in the technology sector, the electric equipment and new energy industry led [20][27]

Investment Rating - The report indicates a positive investment outlook for the electric new energy and electronics sectors, with significant foreign capital inflow and increased holdings in these industries [2][9][22]. Core Insights - In Q3 2025, the total scale of foreign capital through the Stock Connect reached 2.57 trillion yuan, an increase of 283.13 billion yuan from the previous quarter. The proportion of holdings in the main board significantly decreased by 8.47 percentage points, while the growth sectors saw an increase of 11.80 percentage points [5][9]. - The sectors with the largest foreign holdings were electric new energy (17.93%, +4.88 percentage points), electronics (14.09%, +4.38 percentage points), and pharmaceuticals (7.34%, +0.07 percentage points). Conversely, the food and beverage sector saw a decline of 2.06 percentage points [9][10]. - The report highlights that foreign capital is likely to continue flowing into core assets, technology, cyclical sectors, and large financial institutions in Q4 2025, driven by favorable economic conditions and policy support [22][23]. Summary by Sections 1. Growth Sector Holdings - The proportion of foreign capital in growth sectors increased significantly, with a notable rise in holdings in the entrepreneurial and sci-tech boards [5][6]. 2. Electric New Energy and Electronics - The electric new energy and electronics sectors saw substantial increases in foreign capital holdings, with electric new energy leading at 17.93% and electronics at 14.09% [9][15]. 3. Core Assets and Technology Growth Stocks - Key assets such as Ningde Times and Sunshine Power experienced significant changes in foreign capital holdings, with the top five stocks showing a recovery in holding concentration [17][19]. 4. Future Capital Inflows - The report anticipates continued inflows into core assets and technology sectors, supported by the ongoing Fed rate cut cycle and improving corporate earnings [22][23].

Group 1 - The A-share market experienced a volatile upward trend, with the Sci-Tech Innovation Board leading the gains in the Shanghai and Shenzhen markets, particularly in sectors such as electric equipment, new energy, and non-ferrous metals [1] - As of 10:30 AM, the Sci-Tech 50 ETF (588150.SH) rose by 2.35%, and Haiguang Information surged by 7.05% [1] - National policies continue to support the Sci-Tech sector, with measures such as foreign trade facilitation and the establishment of a 51 billion yuan state-owned enterprise fund, providing additional capital and a favorable development environment for the technology industry [1] Group 2 - The industry outlook is positive, with high-performing segments like electric equipment, new energy, and semiconductors benefiting from global energy transitions and accelerated domestic replacements, leading to enhanced profit recovery expectations for Sci-Tech enterprises [1] - The liquidity environment is improving, as the Federal Reserve's interest rate cut cycle alleviates valuation pressures on global tech growth sectors, coupled with a clear trend of economic recovery in China, highlighting the resilience of Sci-Tech assets [1] - The domestic equity market is witnessing a simultaneous increase in volume and price, with continuous improvement in the liquidity of the Sci-Tech Innovation Board, suggesting that the technology growth theme is likely to maintain its strength [1]

Core Viewpoint - The Q4 style rotation model indicates signals for small-cap and growth stocks, with recommended sectors including communication, electric equipment, and renewable energy for November [1][2]. Group 1: Style Rotation Model - The Q4 style rotation model has issued signals favoring small-cap stocks, with a comprehensive score of -1 as of September 30, 2025 [3]. - The value-growth style rotation model also shows a preference for growth stocks, with a comprehensive score of -3 for Q4 2025 [4]. Group 2: Industry Rotation Insights - For October, the composite factor strategy yielded an excess return of -0.69%, while the single-factor multi-strategy had an excess return of -0.93% [4]. - In November, the single-factor multi-strategy recommends bullish sectors including media, communication, electronics, non-bank financials, electric equipment, and renewable energy [4]. - The composite factor strategy suggests bullish sectors such as communication, computer, electric and utility services, media, electric equipment, and renewable energy [4].

Group 1 - The report emphasizes a dynamic balance strategy that considers both win rates and odds, achieving an annualized absolute return of 18.00% and a relative return of 12.00% from January 2015 to October 2025 [2][18] - Recommended industries for November 2025 include non-ferrous metals, electric equipment and new energy, communication, computer, machinery, and electronics [2][18] - The dynamic balance strategy outperformed the benchmark in October 2025 with an absolute return of 1.66% and an excess return of 0.27% [40] Group 2 - The macro-driven strategy has achieved an excess annualized return of 4.87% and a maximum drawdown of 9.51% from January 2016 to October 2025 [3][17] - Recommended industries for November 2025 under the macro-driven strategy include food and beverage, electric equipment and new energy, automotive, basic chemicals, consumer services, and machinery [3][17] - The macro-driven strategy recorded an absolute return of 25.46% since the beginning of 2025, ranking 57.50% among active equity funds [3][17] Group 3 - The multi-strategy approach has generated an annualized relative return of 6.57% since May 2011, with a maximum drawdown of 13.03% [4][23] - Recommended industries for November 2025 under the multi-strategy approach include textiles and apparel, communication, pharmaceuticals, non-ferrous metals, electronics, non-bank financials, real estate, banking, and construction [4][23] - The multi-strategy recorded an absolute return of 16.27% since the beginning of 2025, ranking 76.50% among active equity funds [4][23] Group 4 - The report indicates that the October 2025 market saw a decline in the overall A-share market, with the CSI 300 index returning -0.001% and the ChiNext index returning -1.56% [11][12] - Among the sectors, coal, oil and petrochemicals, non-ferrous metals, and electric utilities were the top performers, while media, automotive, electronics, real estate, and defense industries lagged [12][13] Group 5 - The report highlights the importance of tracking industry crowding indicators, with multiple crowding alerts triggered in the oil and petrochemical, coal, and non-ferrous metals sectors in October [5][53] - The crowding indicators are based on four quantitative factors to assess the risk of future asset pullbacks in various industries [51][53]

Group 1: Macro Liquidity - The US dollar index continued to rise, and the degree of "inversion" in the China-US interest rate spread deepened, with inflation expectations increasing [1][14] - Offshore dollar liquidity has generally loosened, while the domestic interbank funding environment remains balanced and slightly loose [1][18] Group 2: Market Trading Activity - Overall market trading activity has rebounded, with volatility in major indices, except for the Shenzhen 100, also increasing [2][25] - Trading activity in sectors such as telecommunications, electronics, electric new energy, chemicals, machinery, and real estate remains above the 80th percentile [2][25] - The volatility of major indices has mostly increased, with telecommunications and electronics remaining above the 80th historical percentile [2][31] Group 3: Institutional Research - Research activity is high in sectors such as electronics, pharmaceuticals, non-ferrous metals, food and beverage, and telecommunications, with a month-on-month increase in research intensity for pharmaceuticals, non-ferrous metals, electronics, textiles, and retail [3][43] Group 4: Analyst Forecasts - Net profit forecasts for the entire A-share market for 2025/2026 have been adjusted, with non-bank financials, non-ferrous metals, electric power, and public utilities seeing upward revisions [4][21] - The proportion of stocks with upward revisions in net profit forecasts for 2025/2026 has decreased [4][17] - The net profit forecasts for the CSI 500 index for 2025/2026 have been downgraded [4][23] Group 5: Northbound Trading Activity - Northbound trading activity has rebounded, with a net buying of A-shares overall [5][31] - In the top 10 active stocks, the buying and selling ratio in sectors such as electric new energy, telecommunications, and non-ferrous metals has increased [5][32] - For stocks with northbound holdings of less than 30 million shares, net buying was mainly in the computer, electronics, and chemicals sectors [5][33] Group 6: Margin Financing Activity - Margin financing activity has continued to slightly rebound, reaching a three-week high [6][35] - The main net buying in margin financing was in electric new energy, telecommunications, and machinery sectors [6][36] - The proportion of financing purchases in banking, media, and pharmaceuticals has increased month-on-month [6][38] Group 7: Fund Activity - The positions of actively managed equity funds have increased, with net subscriptions in ETFs overall [7][45] - Actively managed equity funds have mainly increased positions in telecommunications, non-ferrous metals, and electric new energy sectors [7][46] - New equity fund establishment scales have rebounded, with both actively and passively managed funds seeing increases [7][50]

Investment Rating - The report maintains a "Strong Buy" rating for the company [2] Core Insights - The company's revenue for the first three quarters of 2025 reached 3.808 billion yuan, a year-on-year increase of 17.32%, while the net profit attributable to shareholders decreased by 15.14% to 178 million yuan [1] - The company is expanding its data center product line and has opened a smart transformer manufacturing plant in the U.S., which is expected to benefit from strong local demand [6] - The forecast for net profit attributable to shareholders in 2026 is 446 million yuan, with a current market valuation corresponding to a PE ratio of 24 times [6] Financial Data and Valuation - Total revenue projections for 2023 to 2027 are as follows: 3.630 billion yuan (2023), 4.639 billion yuan (2024), 5.752 billion yuan (2025E), 7.133 billion yuan (2026E), and 8.702 billion yuan (2027E), with year-on-year growth rates of 29%, 28%, 24%, 24%, and 22% respectively [2][18] - The projected net profit for the same years is: 209 million yuan (2023), 293 million yuan (2024), 271 million yuan (2025E), 446 million yuan (2026E), and 597 million yuan (2027E), with growth rates of 9%, 40%, -7%, 64%, and 34% respectively [2][18] - Key financial ratios include a PE ratio of 51.6 for 2023, decreasing to 18.1 by 2027, and a PB ratio of 3.5 in 2023, decreasing to 2.6 by 2027 [2][19] Price Performance - The company's stock has shown strong absolute performance over the past 1 month (20%), 6 months (72%), and 12 months (59%) [4]

Market Liquidity Overview - R007 increased from 1.4649% to 1.4923%, a rise of 2.74 basis points; DR007 rose from 1.4110% to 1.4551%, an increase of 4.41 basis points. The spread between R007 and DR007 narrowed by 1.67 basis points [9][13] - The net inflow of funds this week was 33.939 billion yuan, an increase of 69.512 billion yuan compared to last week, with total fund supply at 81.025 billion yuan and demand at 47.086 billion yuan. Fund supply increased by 21.889 billion yuan, while stock dividends decreased by 27.218 billion yuan [13][16] Industry Sector Liquidity Tracking - Most sectors in the CITIC first-level industry index rose this week, with the basic chemical sector showing the strongest performance, up 3.37%. Other sectors like electric equipment and new energy, as well as comprehensive finance, also saw slight increases. The communication and banking sectors led the declines, down 3.47% and 2.20% respectively [18][21] - The electric equipment and new energy sector had the highest net inflow of leveraged funds, totaling 4.062 billion yuan, while the food and beverage sector experienced a net outflow of 1.034 billion yuan [21][24] Style Sector Liquidity Tracking - The growth style index had the highest daily trading volume share at 58.75%, while the financial style index saw the largest decline of 1.33%. The cyclical style had the largest increase of 1.21% [34][37] - The daily turnover rate for the growth style remained the highest at 3.13%, while financial and stable styles had relatively low turnover rates [34][37]