Investment Rating - The report maintains an "Outperform" rating for the industry [5] Core Insights - The North Exchange saw a historical high in margin trading balance, with an average daily value of 6.045 billion yuan, reflecting a 9.51% increase month-on-month [25] - The North Exchange 50 Index's price-to-earnings ratio (PE-TTM) is 48.04, placing it at the 85.15th percentile over the past two years, while the price-to-book ratio (PB-MRQ) is 9.34, at the 91.13th percentile [28][29] - The report highlights a mixed performance across industries, with notable gains in construction decoration, pharmaceutical biology, and building materials, while sectors like transportation and communication experienced declines [37] Market Overview - As of July 31, 2025, the North Exchange had 269 listed companies with a total market capitalization of 838.455 billion yuan and a circulating market value of 513.506 billion yuan, showing a month-on-month change of -1.2% and 0.0% respectively [15] - The trading volume for the month was 26.763 billion shares, with a total transaction amount of 585.584 billion yuan, reflecting a decrease of 0.9% and 3.7% month-on-month [19][20] Industry Performance - The North Exchange 50 Index declined by 1.6797% for the month, contrasting with gains in major indices such as the Shanghai and Shenzhen 300, which rose by 3.5444% [32] - The report indicates that the construction decoration, pharmaceutical biology, and building materials sectors showed positive returns, while transportation, communication, and defense industries faced significant declines [37] New Listings and Market Activity - One new company, Dingjia Precision (920005.BJ), was listed this month, bringing the total number of companies on the North Exchange to 269 [4][15] - The report notes that 140 companies updated their listing project review status, with 4 accepted and 96 in inquiry [4] Valuation Metrics - The report provides a detailed breakdown of industry median price-to-earnings ratios, with the computer sector leading at 125 times, followed by building materials at 107 times and communication at 105 times [28][29]

Group 1: Company Overview and Activities - The company held an earnings briefing on May 15, 2025, via the "Investor Relations Interactive Platform" [3] - Key personnel present included Chairman Yu Lixin, General Manager Xu Jingsong, and Financial Officer Su Xiaojing [3] Group 2: Subsidiary Development - Subsidiary Aidun Alloy focuses on R&D, production, and sales of nickel-based and various wear-resistant and corrosion-resistant alloy materials [4] - Aidun Alloy maintains good relationships with downstream customers and is expanding its application in various industries, including new energy and petrochemicals [4] Group 3: International Business Opportunities - The company’s products are primarily exported to countries involved in the "Belt and Road" initiative, including India, Singapore, Malaysia, and Japan [5] - The ongoing large-scale initiation of overseas infrastructure projects presents new growth opportunities for the company [5] Group 4: Business Diversification Plans - The company aims to diversify by expanding into new markets and enhancing its product offerings, particularly through the acquisition of Aidun Alloy [5][8] - Plans for 2025 include strengthening R&D for new products and increasing market share [8] Group 5: Production Capacity and Efficiency - The company's rock-breaking tool production base was completed and put into operation on December 17, 2024, with ongoing efforts to enhance production efficiency [7][8] - The company is focusing on developing non-excavation tools to improve manufacturing capabilities [8] Group 6: Financial Management and Performance - The company has implemented measures to improve accounts receivable management, resulting in a significant increase in sales collections in 2024 [10] - As of Q1 2025, accounts receivable have decreased, indicating effective recovery efforts [10] Group 7: Information Disclosure and Investor Relations - The company adheres to regulations for investor relations management and maintains open communication channels with investors [11] - Brokers and sponsors ensure timely review of information disclosure documents and compliance with regulations [11]