Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Insights - The company reported a strong profit growth in Q3 2025, excluding the impact of goodwill impairment, with a net profit of 1.57 billion yuan, representing an 81.54% year-on-year increase [1][2]. - The company's revenue for the first three quarters of 2025 reached 6.237 billion yuan, a 28.35% increase year-on-year, while the net profit attributable to the parent company was 317 million yuan, a 0.33% increase year-on-year [1]. - The company has accelerated its expansion in the franchise channel, with a total of 1,412 franchise stores by the end of Q3 2025, an increase of 144 stores since the beginning of the year [2]. Financial Performance Summary - For Q3 2025, the company achieved a revenue of 2.135 billion yuan, a 49.52% increase year-on-year, and a net profit of 1.57 billion yuan, excluding goodwill impairment, marking an 81.54% increase [1]. - The gross profit margin for the first three quarters of 2025 was 23.16%, a decrease of 1 percentage point year-on-year, while the sales expense ratio decreased by 2.71 percentage points to 8.91% [1]. - The company’s revenue forecast for 2025 is estimated at 8.039 billion yuan, with a projected EPS of 0.52 yuan per share [5][9]. Brand and Product Development - The main brand,潮宏基, has been actively innovating with new product launches, including the "Non-Heritage Flower Silk" series and various IP collaborations, enhancing its brand presence [2]. - The company is focusing on a multi-brand strategy, with the main brand positioned at the intersection of "Oriental culture + fashion" [2]. Market Position and Growth Strategy - The company is positioned as a mid-to-high-end fashion consumer goods multi-brand operator, with a strong emphasis on expanding its jewelry business and enhancing the fashion appeal of traditional gold products [3]. - The report highlights the company's strategy to expand its brand matrix and strengthen its market presence through innovative product offerings and franchise growth [2][3].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report The report presents the top ten convertible bonds for November 2025, along with an analysis of the issuing companies, including their financial performance, business models, and key attractions [14][23][36]. 3. Summary by Company 3.1 Zhongte Convertible Bond - Issuer: A globally leading specialized special steel material manufacturing enterprise with a production capacity of approximately 20 million tons of special steel materials per year [14]. - Financial Performance: In 2024, its operating income was 109.203 billion yuan (YoY -4.22%), and the net profit attributable to the parent company was 5.126 billion yuan (YoY -10.41%). In the first three quarters of 2025, the operating income was 81.206 billion yuan (YoY -2.75%), and the net profit attributable to the parent company was 4.33 billion yuan (YoY +12.88%) [14]. - Key Attractions: It is one of the world's steel companies with the most comprehensive variety and specifications, with a production capacity of over 20 million tons of special steel. It has a complete industrial chain, leading cost - control capabilities, and is seeking opportunities for external expansion [15]. 3.2 Shanlu Convertible Bond - Issuer: A company mainly engaged in road and bridge engineering construction and maintenance, with a complete business and management system [23]. - Financial Performance: In 2024, its operating income was 71.348 billion yuan (YoY -2.3%), and the net profit attributable to the parent company was 2.322 billion yuan (YoY +1.47%). In the first three quarters of 2025, the operating income was 41.354 billion yuan (YoY -3.11%), and the net profit attributable to the parent company was 1.41 billion yuan (YoY -3.27%) [23]. - Key Attractions: It has the concept of "China - Special Valuation," potential for improvement in its balance sheet and order volume. It can benefit from infrastructure construction in Shandong Province and the Belt and Road Initiative [26]. 3.3 Hebang Convertible Bond - Issuer: A company with advantages in salt mines, phosphate mines, and natural gas supply, covering the chemical, agricultural, and photovoltaic sectors [36]. - Financial Performance: In 2024, its operating income was 8.547 billion yuan (YoY -3.13%), and the net profit attributable to the parent company was 31 million yuan (YoY -97.55%). In the first three quarters of 2025, the operating income was 5.927 billion yuan (YoY -13.02%), and the net profit attributable to the parent company was 93 million yuan (YoY -57.93%) [36]. - Key Attractions: Its phosphate mines and salt mines contribute to profits, and its liquid methionine production has high - margin potential [37]. 3.4 Aima Convertible Bond - Issuer: A leading enterprise in the electric two - wheeler industry, responsible for R & D, production, and sales [45]. - Financial Performance: In 2024, its operating income was 21.606 billion yuan (YoY +2.71%), and the net profit attributable to the parent company was 1.988 billion yuan (YoY +5.68%). In the first three quarters of 2025, the operating income was 21.093 billion yuan (YoY +20.78%), and the net profit attributable to the parent company was 1.907 billion yuan (YoY +22.78%) [45]. - Key Attractions: The continuation of government subsidies for trade - ins, the implementation of new national standards, and potential improvements in gross margin [46]. 3.5 Xingye Convertible Bond - Issuer: One of the first joint - stock commercial banks approved by the State Council and the People's Bank of China, evolving into a modern financial service group [56]. - Financial Performance: In 2024, its operating income was 212.226 billion yuan (YoY +0.66%), and the net profit attributable to the parent company was 77.205 billion yuan (YoY +0.12%). In the first three quarters of 2025, the operating income was 161.234 billion yuan (YoY -1.82%), and the net profit attributable to the parent company was 63.083 billion yuan (YoY +0.12%) [56]. - Key Attractions: Stable asset quality and continuous growth in scale [57]. 3.6 Huanxu Convertible Bond - Issuer: A global leader in electronic manufacturing design, providing value - added services [67]. - Financial Performance: In 2024, its operating income was 60.691 billion yuan (YoY -0.17%), and the net profit attributable to the parent company was 1.652 billion yuan (YoY -15.16%). In the first three quarters of 2025, the operating income was 43.641 billion yuan (YoY -0.83%), and the net profit attributable to the parent company was 1.263 billion yuan (YoY -2.6%) [67]. - Key Attractions: Leading in smart wearable SiP modules and having a global production layout [68]. 3.7 Chongyin Convertible Bond - Issuer: The earliest local joint - stock commercial bank in the upper reaches of the Yangtze River and Southwest China, with a wide range of business operations [79]. - Financial Performance: In 2024, its operating income was 13.679 billion yuan (YoY +3.54%), and the net profit attributable to the parent company was 5.117 billion yuan (YoY +3.8%). In the first three quarters of 2025, the operating income was 11.74 billion yuan (YoY +10.4%), and the net profit attributable to the parent company was 4.879 billion yuan (YoY +10.19%) [79]. - Key Attractions: Benefiting from the Chengdu - Chongqing economic circle strategy, stable asset growth, and proactive risk management [80]. 3.8 Tianye Convertible Bond - Issuer: A leading enterprise in the chlor - alkali chemical industry in Xinjiang, with an integrated circular economy industrial chain [88]. - Financial Performance: In 2024, its operating income was 11.156 billion yuan (YoY -2.7%), and the net profit attributable to the parent company was 68 million yuan (YoY +108.83%). In the first three quarters of 2025, the operating income was 7.97 billion yuan (YoY +2.2%), and the net profit attributable to the parent company was 7 million yuan (YoY -28.79%) [88]. - Key Attractions: Relatively stable caustic soda production costs and plans to increase dividend frequency and advance coal mine projects [89]. 3.9 Aorui Convertible Bond - Issuer: A company focusing on the R & D, production, and sales of complex APIs and preparations, leading in multiple fields [101]. - Financial Performance: In 2024, its operating income was 1.476 billion yuan (YoY +16.89%), and the net profit attributable to the parent company was 355 million yuan (YoY +22.59%). In the first three quarters of 2025, the operating income was 1.237 billion yuan (YoY +13.67%), and the net profit attributable to the parent company was 354 million yuan (YoY +24.58%) [101]. - Key Attractions: Improving its dealer network, expanding the market for its preparation products, and having high - quality customer resources [102]. 3.10 Yushui Convertible Bond - Issuer: The largest integrated water supply and drainage enterprise in Chongqing, with a monopoly position in the local market [110]. - Financial Performance: In 2024, its operating income was 6.999 billion yuan (YoY -3.52%), and the net profit attributable to the parent company was 785 million yuan (YoY -27.88%). In the first three quarters of 2025, the operating income was 5.568 billion yuan (YoY +7.21%), and the net profit attributable to the parent company was 779 million yuan (YoY +7.1%) [110]. - Key Attractions: Stable water supply and drainage business, expanding market share, and effective cost control [111].

Report Summary - The report presents the top ten convertible bonds for October 2025, along with an analysis of the issuing companies, including their business profiles, financial performance, and key attractions [13][23][35] Top Ten Convertible Bonds in October 2025 1. Zhongte Convertible Bond - Rating: AAA; 9 - month - end closing price: 112.896 yuan; Conversion premium rate: 85.92%; PE - TTM of the underlying stock: 13.22 [7][13] - Company: A globally leading specialized special - steel material manufacturer with a production capacity of about 20 million tons of special - steel materials per year. It has multiple production and raw - material bases, forming a strategic layout along the coast and rivers [13] - Financials: In 2024, revenue was 109.203 billion yuan (YoY - 4.22%), net profit attributable to shareholders was 5.126 billion yuan (YoY - 10.41%). In H1 2025, revenue was 54.715 billion yuan (YoY - 4.02%), net profit attributable to shareholders was 2.798 billion yuan (YoY + 2.67%) [13] - Key attractions: It is one of the world's most comprehensive special - steel enterprises in terms of variety and specification, with leading cost - control ability and potential for external expansion [14] 2. Shanlu Convertible Bond - Rating: AAA; 9 - month - end closing price: 119.346 yuan; Conversion premium rate: 48.74%; PE - TTM of the underlying stock: 4.08 [7][23] - Company: Mainly engaged in road and bridge construction and maintenance, and also expanding into other fields. It can provide one - stop comprehensive services [23] - Financials: In 2024, revenue was 71.348 billion yuan (YoY - 2.3%), net profit attributable to shareholders was 2.322 billion yuan (YoY + 1.47%). In H1 2025, revenue was 28.575 billion yuan (YoY + 0.26%), net profit attributable to shareholders was 1.029 billion yuan (YoY + 0.89%) [23] - Key attractions: It has the concept of "China - specific valuation", potential for improvement in various aspects under the debt - resolution background, and opportunities from regional infrastructure construction and the Belt and Road Initiative [24] 3. Hebang Convertible Bond - Rating: AA; 9 - month - end closing price: 126.41 yuan; Conversion premium rate: 21.55%; PE - TTM of the underlying stock: - 168.47 [7][35] - Company: With advantages in mineral resources and gas supply, it has completed a basic layout in the chemical, agricultural, and photovoltaic fields [35] - Financials: In 2024, revenue was 8.547 billion yuan (YoY - 3.13%), net profit attributable to shareholders was 31 million yuan (YoY - 97.55%). In H1 2025, revenue was 3.921 billion yuan (YoY - 19.13%), net profit attributable to shareholders was 52 million yuan (YoY - 73.07%) [35] - Key attractions: Its phosphate mines and salt mines have good profit - making potential, and the liquid methionine business is a major profit contributor [36] 4. Aima Convertible Bond - Rating: AA; 9 - month - end closing price: 128.513 yuan; Conversion premium rate: 38.62%; PE - TTM of the underlying stock: 13.41 [7][45] - Company: The leading enterprise in the electric two - wheeled vehicle industry, mainly engaged in R & D, production, and sales of electric two - wheeled vehicles [45] - Financials: In 2024, revenue was 21.606 billion yuan (YoY + 2.71%), net profit attributable to shareholders was 1.988 billion yuan (YoY + 5.68%). In H1 2025, revenue was 13.031 billion yuan (YoY + 23.04%), net profit attributable to shareholders was 1.213 billion yuan (YoY + 27.56%) [45] - Key attractions: It may benefit from government subsidies, new national standards, and potential improvement in gross margin [46] 5. Xingye Convertible Bond - Rating: AAA; 9 - month - end closing price: 120.859 yuan; Conversion premium rate: 29.02%; PE - TTM of the underlying stock: 5.43 [7][54] - Company: One of the first joint - stock commercial banks in China, evolving into a modern financial service group [54] - Financials: In 2024, revenue was 212.226 billion yuan (YoY + 0.66%), net profit attributable to shareholders was 77.205 billion yuan (YoY + 0.12%). In H1 2025, revenue was 110.458 billion yuan (YoY - 2.29%), net profit attributable to shareholders was 43.141 billion yuan (YoY + 0.21%) [54] - Key attractions: It has stable asset quality and scale growth [55] 6. Wentai Convertible Bond - Rating: AA -; 9 - month - end closing price: 128.918 yuan; Conversion premium rate: 20.93%; PE - TTM of the underlying stock: - 23.14 [7][66] - Company: A globally leading semiconductor enterprise adopting the IDM model, providing R & D, manufacturing, and testing services [66] - Financials: In 2024, revenue was 73.598 billion yuan (YoY + 20.23%), net profit attributable to shareholders was - 2.833 billion yuan (YoY - 339.83%). In H1 2025, revenue was 25.341 billion yuan (YoY - 24.56%), net profit attributable to shareholders was 474 million yuan (YoY + 237.36%) [66] - Key attractions: After focusing on the semiconductor business, it benefits from market recovery and has growth potential in the automotive and consumer electronics fields [67] 7. Chongyin Convertible Bond - Rating: AAA; 9 - month - end closing price: 121.778 yuan; Conversion premium rate: 31.87%; PE - TTM of the underlying stock: 5.88 [7][77] - Company: An early local joint - stock commercial bank in the upper reaches of the Yangtze River and Southwest China, with a wide range of business scopes [77] - Financials: In 2024, revenue was 13.679 billion yuan (YoY + 3.54%), net profit attributable to shareholders was 5.117 billion yuan (YoY + 3.8%). In H1 2025, revenue was 7.659 billion yuan (YoY + 7%), net profit attributable to shareholders was 3.19 billion yuan (YoY + 5.39%) [77] - Key attractions: It can benefit from the development of the Chengdu - Chongqing economic circle, has stable asset - scale growth, and effective risk - control strategies [78] 8. Tianye Convertible Bond - Rating: AA +; 9 - month - end closing price: 120.562 yuan; Conversion premium rate: 48.06%; PE - TTM of the underlying stock: 146.42 [7][89] - Company: A leading enterprise in the chlor - alkali chemical industry in Xinjiang, with an integrated circular economy industrial chain [89] - Financials: In 2024, revenue was 11.156 billion yuan (YoY - 2.7%), net profit attributable to shareholders was 68 million yuan (YoY + 108.83%). In H1 2025, revenue was 5.16 billion yuan (YoY - 0.98%), net profit attributable to shareholders was - 9 million yuan (YoY - 228.22%) [89] - Key attractions: It may benefit from the price change of caustic soda and has plans for dividend increase and coal - mine projects [90] 9. Aorui Convertible Bond - Rating: AA -; 9 - month - end closing price: 126.412 yuan; Conversion premium rate: 40.56%; PE - TTM of the underlying stock: 22.72 [7][100] - Company: A company focusing on the R & D, production, and sales of complex APIs and preparations, with leading positions in multiple fields [100] - Financials: In 2024, revenue was 1.476 billion yuan (YoY + 16.89%), net profit attributable to shareholders was 355 million yuan (YoY + 22.59%). In H1 2025, revenue was 822 million yuan (YoY + 12.5%), net profit attributable to shareholders was 235 million yuan (YoY + 24.55%) [100] - Key attractions: It has a growing dealer network, expanding preparation products, and high - quality customer resources [101] 10. Yushui Convertible Bond - Rating: AAA; 9 - month - end closing price: 125.081 yuan; Conversion premium rate: 30.74%; PE - TTM of the underlying stock: 26.93 [7][108] - Company: The largest integrated water supply and drainage enterprise in Chongqing, with a stable monopoly position [108] - Financials: In 2024, revenue was 6.999 billion yuan (YoY - 3.52%), net profit attributable to shareholders was 785 million yuan (YoY - 27.88%). In H1 2025, revenue was 3.519 billion yuan (YoY + 7.16%), net profit attributable to shareholders was 458 million yuan (YoY + 10.06%) [108] - Key attractions: It has a high market share, is expanding business externally, and has effective cost - control measures [109]

Group 1 - Morgan Stanley reported that foreign net inflows into the Chinese stock market reached $4.6 billion in September, the highest monthly level since November 2024 [1] - Passive funds saw a net inflow of $5.2 billion in September, with a total net inflow of $18 billion year-to-date, significantly surpassing the full-year total of $7 billion in 2024 [1] - Semiconductor sector saw increased positions from active fund managers, while insurance, durable consumer goods, and apparel sectors experienced reduced positions [1] Group 2 - The Hang Seng Technology Index rose by 13.9% in September, leading global major indices [1] - Semiconductor stocks such as SMIC and Hua Hong Semiconductor reached historical highs, with SMIC closing at HKD 90.9 per share (up 1.39%) and Hua Hong at HKD 87.5 per share (up 2.1%), with year-to-date increases of 185.85% and 304.16% respectively [1] - Positive policy releases have significantly boosted confidence in both A-share and Hong Kong markets, with continued acceleration of southbound capital inflows into the Hong Kong market [1] Group 3 - Looking ahead to October, the A-share and Hong Kong markets are expected to benefit from long-term policy layouts, numerous industrial catalysts, and a relatively loose liquidity environment [2] - Opportunities in A-shares are likely to be concentrated in the technology growth sector, while Hong Kong benefits from its unique market structure and external liquidity expectations [2] - Key focus areas include AI computing power, semiconductor self-sufficiency, solid-state batteries, commercial aerospace, and controllable nuclear fusion, as highlighted by various securities reports [2]

Group 1 - Foreign capital inflow into the Chinese stock market rebounded to $4.6 billion in September, the highest monthly figure since November 2024, driven primarily by passive funds [1][3] - Year-to-date, passive funds have cumulatively flowed into China amounting to $18 billion, surpassing last year's total of $7 billion [3] - Over 90% of investors surveyed by Morgan Stanley plan to increase their exposure to the Chinese market, marking a new high since 2021 [3] Group 2 - The semiconductor sector has seen significant investment, with active managers increasing their holdings in this area, while reducing positions in insurance and durable goods [6] - Semiconductor stocks, particularly SMIC and Hua Hong Semiconductor, have experienced substantial price increases, with SMIC rising over 12% on October 2 [6] - The semiconductor industry reported a revenue of 353.03 billion yuan in the first half of the year, reflecting a year-on-year growth of 13.34% [7] Group 3 - The AI chip sector is expected to thrive, with a complete integration of the domestic AI industry chain from upstream to downstream [7] - The second half of the year is typically a period of intensive technology releases and product iterations in the domestic tech sector, particularly in semiconductors and AI applications [7] - The market sentiment is optimistic, with expectations of policy support and potential interest rate cuts from the Federal Reserve benefiting the Hong Kong stock market [7]

Core Insights - In September, foreign capital inflow into the Chinese stock market rebounded to $4.6 billion, the highest monthly figure since November 2024, primarily driven by $5.2 billion inflow from passive funds, while active funds saw a slight outflow of $0.6 billion [1][5] - As of September 30, the cumulative inflow of foreign passive funds for the year reached $18 billion, surpassing last year's total of $7 billion [1][5] Fund Flow Analysis - Active managers increased their holdings the most in capital goods and semiconductors, while they reduced their positions the most in insurance, durable consumer goods, and apparel [1][5] - The largest increases in holdings were seen in Alibaba, CATL (Contemporary Amperex Technology Co., Limited), and JD.com, whereas Tencent, Ping An Insurance, and Pop Mart experienced the largest reductions in holdings [1][5]

Group 1 - UBS analysts indicate that the market has begun to price in a 12% probability of economic overheating, which is on the rise [1] - This trend may drive cyclical stocks higher and expand market breadth across various sectors [1] - The sectors most sensitive to the "overheating probability" include automotive and parts, durable goods and apparel, and diversified financials [1] Group 2 - The best-performing sectors in the S&P 500 currently include software, media and entertainment, semiconductors, and equipment and banks, while household and personal care, chemicals, and packaging are underperforming [1] - The ranking of these sectors is based on the "R.E.V.S. scoring system," which considers economic cycles, corporate earnings, valuation levels, and market sentiment [1] - 26 out of 27 sectors show positive scores, indicating a signal of market breadth expansion and potential for lagging sectors to catch up [1] Group 3 - By 2026, the earnings gap between the "six tech giants" (NVIDIA, Microsoft, Apple, Google, Amazon, Meta) and other S&P 500 constituents is expected to normalize, reducing overall market earnings disparity [2] - The forward P/E ratio of the S&P 500 is currently above 22, while excluding the "tech+" sector, the valuation is at 18.6, which is considered overvalued [2] - Factors such as stock buybacks and stable inflows from global pension savings plans are supporting current valuations despite concerns [2] Group 4 - The "thematic heat map" from UBS shows that the market crowding around the "seven giants" and AI-related investment themes is at a high level, yet remains reasonable due to their resilience in earnings expectations [3] - The highest-scoring stocks in the "R.E.V.S. scoring system" include Hasbro, Dayforce, Qualys, Steris, and MongoDB [3]

Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Insights - The company reported a robust revenue growth of 19.54% year-on-year, reaching 4.102 billion yuan in H1 2025, with a significant net profit increase of 44.34% to 331 million yuan [1][2]. - The gross margin slightly decreased by 0.34 percentage points to 23.81%, while the net profit margin improved by 1.38 percentage points to 8.11% [1]. - The company has successfully expanded its brand presence with new product lines targeting younger consumers, including the introduction of IP series [1][2]. Financial Performance - In H1 2025, the fashion jewelry segment generated 1.99 billion yuan in revenue, up 20.33%, while traditional gold products saw a revenue increase of 23.95% to 1.83 billion yuan [1]. - The company achieved a sales expense ratio of 9.27%, a decrease of 2.09 percentage points, and a management expense ratio of 1.56%, down 0.36 percentage points [1]. - The company’s EPS is projected to be 0.59, 0.71, and 0.83 yuan per share for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 26, 22, and 18 times [3][5]. Market Expansion - The company’s franchise channel revenue grew by 36.24% to 2.244 billion yuan, while self-operated channels increased by 4.75% to 1.172 billion yuan [2]. - The total number of franchise stores reached 1,340, with a net increase of 68 stores compared to the end of 2024, while self-operated stores decreased by 37 to 202 [2]. - The company has made significant strides in Southeast Asia, opening two new stores in Cambodia during H1 2025 [2].

Investment Rating - The report maintains a "Recommended" rating for the smart home industry [5][28][7] Core Insights - The report highlights the combination of subsidy policies and trade incentives aimed at boosting consumer spending in the smart home sector, particularly through the promotion of old-for-new exchange programs and interest subsidies [3][19][28] - The smart home index has shown significant growth, outperforming major indices, indicating a robust market performance [12][16] - The report emphasizes the ongoing technological advancements in IoT, AI, and big data, which are expected to enhance product offerings and meet diverse consumer needs [5][28] Summary by Sections Market Review - In the past two weeks (August 9-22, 2025), the Shanghai Composite Index rose by 5.24%, the Shenzhen Component Index by 9.32%, and the ChiNext Index by 14.94%. The smart home index (399996.SZ) increased by 14.16%, outperforming the Shanghai Composite by 8.92 percentage points [12][16] - Year-to-date performance shows the smart home index up by 27.75%, significantly ahead of the Shanghai Composite's 14.14% increase [12][15] - Within the smart home index, the electronic components and parts sector saw a 23.68% increase over the past two weeks, while year-to-date gains were 62.20% [16][17] Industry Policy Tracking - A national conference was held to advance the old-for-new exchange program for consumer goods, emphasizing the government's commitment to stimulating consumption through coordinated policy efforts [18] - The combination of interest subsidy policies with the old-for-new exchange program aims to enhance consumer spending and market vitality [19][21] Industry News Tracking - Sales of old-for-new related and upgraded products have performed well, with significant year-on-year growth in retail sales for home appliances and communication devices [24] - Aux Electric has passed the listing hearing for the Hong Kong Stock Exchange, marking a significant step towards its market entry [25][26] Investment Recommendations - The report suggests that the smart home industry will benefit from government policies aimed at expanding consumer spending, technological advancements, and increasing domestic demand driven by rising living standards and aging population [5][28]

Investment Rating - The report maintains an "Outperform" rating for the Hong Kong stock market [4] Core Viewpoints - The market has restarted with a significant style shift, with mid-cap stocks outperforming large-cap and small-cap stocks [1] - The overall valuation has slightly increased, with notable divergence across industries [2] - Earnings expectations have been revised upward, particularly in the automotive sector [3] Summary by Sections Market Performance - The Hang Seng Index increased by 0.3%, while the Hang Seng Composite Index rose by 1.9% [1] - Mid-cap stocks (Hang Seng Midcap Index) outperformed large-cap (Hang Seng Large Cap Index) and small-cap stocks (Hang Seng Small Cap Index) [1] - Strongest performing sectors included textiles and apparel (+5.9%), automotive (+5.5%), and light industry manufacturing (+5.1%) [1] Valuation Levels - The Hang Seng Index's valuation increased by 0.4% to 11.7x, and the Hang Seng Composite Index's valuation rose by 0.7% to 12.0x [2] - The Hang Seng Consumer Index saw a significant valuation increase of 2.8% to 16.7x [2] - 18 industries experienced valuation increases, with steel (+33.3%) and textiles and apparel (+5.8%) showing the largest gains [2] Earnings Expectations - The EPS for the Hang Seng Index was revised up by 0.2%, while the Hang Seng Composite Index's EPS increased by 0.3% [3] - The automotive sector saw a notable EPS increase of 2.4% [3] - 18 industries had upward revisions in EPS, with light industry manufacturing (+4.5%) and national defense (+3.8%) showing significant improvements [3]