Report Industry Investment Rating - The investment rating for the industry is "Underperform the Market" [1][4] Core Viewpoints - The U.S. Treasury market is caught in a fierce game between geopolitical risk premiums and data dependence. The market's pricing logic has reversed from narrowing rate - cut expectations to a panic about rate hikes. The interest rate futures market has completely ruled out the possibility of rate cuts this year and started to price in the probability of one rate hike by the Fed in 2026 [1] - Under the dual pressure of inflation return and geopolitical risks, the yields of U.S. Treasuries have risen across the board, and the global bond market has declined in resonance. The U.S. Treasury yield curve shows a bear - steepening characteristic, and the market volatility has increased significantly [2] - Facing the resurgence of core inflation pressure, the Fed may have to abandon the plan of rate cuts this year and may even restart rate hikes in extreme cases. The market expects the Fed to maintain high interest rates for a longer time than previously expected [2] - In the future, the market situation will highly depend on the evolution of the Middle East geopolitical conflict and the trend of inflation data. It is recommended to adopt a dumbbell - shaped defensive strategy [3] Summary by Relevant Catalogs U.S. Treasury Benchmark Interest Rate - The yields of 2 - year and 10 - year U.S. Treasuries, the U.S. Treasury yield curve, the bid - to - cover ratios of U.S. Treasuries of various maturities, the winning bid rates of 2 - 30 - year U.S. Treasury issuances, the monthly issuance volume of U.S. Treasuries, and the implied rate - hike/rate - cut expectations in the federal funds rate futures market are presented in relevant figures [8][11][17] U.S. Macroeconomic and Liquidity - Figures show the year - on - year inflation trend in the U.S., the annual cumulative fiscal deficit of the U.S. federal government (fiscal year), the U.S. economic surprise index, the U.S. ISM PMI, the U.S. consumer confidence index, the U.S. financial conditions index, the growth rate of U.S. housing rents, the number of U.S. unemployment benefit claimants, the year - on - year growth rate of U.S. hourly wages, the U.S. non - farm payroll data, the year - on - year growth rates of new housing approvals, starts, and sales in the U.S. real estate market, the year - on - year growth rate of U.S. personal consumption expenditure, the U.S. break - even inflation rate, and the MOVE index of U.S. Treasury volatility and the VIX fear index [8][24][37] Exchange Rate - Figures show the one - year trend and recent changes of non - U.S. currencies, the Sino - U.S. sovereign bond yield spread, the relationship between the U.S. dollar index and the 10 - year U.S. Treasury yield, the relationship between the U.S. dollar index and the RMB index, and the change in the one - year lock - in cost of the U.S. dollar against the RMB [8][48][56] Chinese - Issued U.S. Dollar Bonds - Figures show the return trends of Chinese - issued U.S. dollar bonds since 2023 (by level and by industry), the yield and spread trends of investment - grade and high - yield Chinese - issued U.S. dollar bonds, and the returns in the past two weeks (by level and by industry) [8][66][71] Rating Actions - In the past two weeks, the three major international rating agencies have taken 11 rating actions on Chinese - issued U.S. dollar bond issuers, including 5 rating cancellations, 4 rating upgrades, and 2 initial ratings [73][74]

Core Viewpoint - The collaboration between Haibo Sichuang Technology Co., Ltd., China Minsheng Bank, and Minsheng Financial Leasing marks a significant step towards the deep integration of finance and industry in the energy storage sector, aiming to drive high-quality development in the industry [1][3][6] Group 1: Collaboration Details - The partnership aims to establish a "bank + leasing + industry" triad model to explore innovative financial services across the entire energy storage industry chain [1] - Haibo Sichuang's CEO emphasized the importance of energy storage as a stabilizer for renewable energy, crucial for ensuring the safe and stable operation of the power system [3] - The collaboration is expected to support Haibo Sichuang's comprehensive layout across the industry chain, enhancing cooperation from single project collaboration to multi-scenario synergy [3][6] Group 2: Financial Support and Services - China Minsheng Bank's Beijing branch aims to provide precise, efficient, and diversified financial services to competitive and growth-potential enterprises like Haibo Sichuang [3] - Minsheng Financial Leasing will leverage its expertise in equipment financing and asset management to support Haibo Sichuang in project investment, equipment upgrades, and capacity construction [4] - The collaboration signifies a comprehensive upgrade of the partnership between Haibo Sichuang and Minsheng financial institutions, promoting deep integration of industry and finance [6] Group 3: Future Prospects - The three parties plan to deepen collaborative innovation in the new energy storage field and explore diverse cooperation models to contribute to China's energy structure transformation and green low-carbon development goals [6]

Investment Rating - The investment rating for Far East Horizon (03360) is "Buy" [1] Core Insights - UBS forecasts that Far East Horizon's profit and earnings per share will grow by 8% and 6% respectively this year [1] - The target price for the stock has been raised from HKD 8.8 to HKD 9.1, with a projected price-to-book ratio of 0.72 times and a forecasted dividend yield of 6.5% [1] - Management expects the core financial leasing business operations to remain stable, prioritizing financial stability over growth [1] Financial Performance Expectations - The report maintains an optimistic outlook on the core business prospects, anticipating a rebound in profit growth to high single digits this year [1] - Factors contributing to this growth include moderate loan growth, a deceleration in financing costs leading to a rebound in loan spreads for non-SME loans, increased contributions from SMEs boosting asset return rates, and a low base effect from subsidiary Hongxin Jianfa (09930) [1] - There is also potential for a return to normal levels from the currently high effective tax rate of 50% [1]

Group 1 - UBS forecasts Far East Horizon (03360) to achieve an 8% growth in profit and a 6% increase in earnings per share this year [1] - The target price for the stock has been raised from HKD 8.8 to HKD 9.1, with a projected price-to-book ratio of 0.72 times and a forecasted dividend yield of 6.5% [1] - The investment rating for the stock is "Buy" [1] Group 2 - Management expects the core financial leasing business to remain stable, prioritizing financial stability over growth [1] - A progressive dividend policy will be adopted, although specific payout ratio targets have not been determined [1] - The outlook for the core business is optimistic, with expectations of profit growth returning to high single digits, supported by moderate loan growth and a decrease in financing costs [1] Group 3 - The increase in asset return rates is driven by the improved contribution from small and medium enterprises and the low base effect from the subsidiary Hongxin Jianfa (09930) [1] - There is potential for the currently high effective tax rate of 50% to return to a more normal level [1]

Core Viewpoint - UBS forecasts that Far East Horizon (03360) will see an 8% increase in profit and a 6% increase in earnings per share this year, raising the target price from HKD 8.8 to HKD 9.1, with a target price-to-book ratio of 0.72 and a forecast dividend yield of 6.5% [1] Group 1: Financial Performance - The management expects the core financial leasing business to remain stable, prioritizing financial stability over growth [1] - The company anticipates a rebound in profit growth to high single digits this year, supported by moderate loan growth and a faster decline in financing costs, which will help improve the loan spread for non-SME loans [1] - The contribution from SMEs is expected to enhance asset return rates, alongside the low base effect from subsidiary Hongxin Jianfa (09930) [1] Group 2: Shareholder Returns - The management reiterated a gradual dividend policy but did not specify a target payout ratio [1] - There is potential for the current unusually high effective tax rate of 50% to return to a more normal level, which could positively impact profitability [1]

Group 1 - The core viewpoint of the report indicates that Far East Horizon's management expects stable operations in its core financial leasing business, prioritizing financial stability over growth [1] - The management reiterated a gradual dividend policy without specifying a target payout ratio, indicating a cautious approach to shareholder returns [1] - UBS maintains an optimistic outlook on Far East Horizon's core business prospects, forecasting a rebound in profit growth to high single digits this year, driven by moderate loan growth and a decrease in financing costs [1] Group 2 - The forecast includes an expected increase in profit and earnings per share by 8% and 6% respectively for this year [1] - The target price for Far East Horizon has been raised from HKD 8.8 to HKD 9.1, with a "Buy" rating assigned [1] - Factors contributing to the anticipated growth include the recovery of non-SME loan spreads, increased contributions from SMEs, and a low base effect from the subsidiary Hongxin Jianfa [1]

Core Viewpoint - The financial leasing industry is witnessing significant equity auctions, with a notable case being the public auction of a 21% stake in Huayun Financial Leasing Co., Ltd. by Taifu Heavy Industry Group, starting at a price of 200 million yuan [1][2]. Group 1: Company Overview - Huayun Financial Leasing, established in April 2015, is the first purely private capital financial leasing company initiated by private manufacturing shareholders in China, with an initial registered capital of 1 billion yuan, later increased to 1.429 billion yuan in 2017 [2][5]. - The company has faced substantial financial difficulties, with net losses of approximately 235 million yuan in 2021 and 454 million yuan in 2022, and a high non-performing loan rate of 99.15% as of July 2023 [5]. Group 2: Auction Details - The 21% stake auction has seen multiple price reductions, initially listed at 386 million yuan in December 2021, then 309 million yuan, and subsequently reduced to 200 million yuan for the current auction, which marks the third attempt this year [2][3]. - The auction is being managed by the bankruptcy administrators of Taifu Heavy Industry Group and six related companies, with oversight from the Xiangtan Intermediate People's Court [2][3]. Group 3: Industry Context - The financial leasing sector is experiencing a trend of equity transfers, with at least ten billion-level equity transfers or judicial auctions recorded in 2025 alone [6][7]. - Regulatory changes, such as the new Financial Leasing Company Management Measures, are expected to raise operational standards and exit weaker companies from the market, promoting industry consolidation [7].

Core Viewpoint - Citigroup has updated its model following Far East Horizon's announcement of its fiscal year 2025 results, leading to a downward revision of earnings per share forecasts for the next two years by 8% and 10% respectively [1] Group 1 - The target price for Far East Horizon has been slightly increased from HKD 8.5 to HKD 8.6 while maintaining a "Buy" rating [1]

Core Viewpoint - The article outlines the key energy development goals and strategies for the 14th Five-Year Plan period, emphasizing high-quality development, technological self-reliance, and ecological progress in energy systems [2][4]. Group 1: Major Goals - Significant achievements in high-quality development are expected, with a unified national market and advantages of a super-large-scale market becoming more evident [4]. - The level of technological self-reliance will see substantial improvements, with breakthroughs in key core technologies and an increase in original and leading technological achievements [4]. - Progress in building a beautiful China will be marked by the formation of green production and lifestyle patterns, achieving carbon peak targets, and reducing carbon emissions per unit of GDP by 17% [4][6]. Group 2: Energy Production Capacity - The comprehensive energy production capacity is projected to reach 5.8 billion tons of standard coal [5]. Group 3: Industrial Upgrading - Key industries such as steel, petrochemicals, and shipbuilding will undergo structural adjustments to enhance quality and competitiveness [7]. - The focus will be on developing high-end products and accelerating breakthroughs in critical components and materials [7]. Group 4: Emerging Industries - The development of strategic emerging industries such as new information technology, new energy, and high-end equipment will be accelerated, with an emphasis on creating industry clusters with unique advantages [14][15]. - The article highlights the importance of advancing technologies like quantum science, hydrogen energy, and artificial intelligence as future economic growth points [16]. Group 5: Energy Infrastructure - The construction of a new energy infrastructure will be prioritized, focusing on clean, low-carbon, and efficient energy systems, with a significant push for non-fossil energy sources [20]. - The article mentions the implementation of a ten-year doubling action for non-fossil energy and the establishment of clean energy bases [20]. Group 6: Carbon Neutrality Goals - The plan includes a comprehensive approach to achieving carbon peak and neutrality, with specific measures to control carbon emissions and promote energy efficiency [77][79]. - The goal is to reduce energy consumption per unit of GDP by approximately 10% and to ensure that new electricity consumption is covered by clean energy [80].

Group 1: Macro and Strategy - The U.S. February CPI data shows a month-on-month increase of 0.3%, with a year-on-year increase of 2.4%, aligning with expectations [8] - The AH premium index is primarily influenced by the financial sector and mid-cap stocks, with the Hang Seng-Hushen Connect AH premium index preferred as a reference [9][10] - The AH premium is inversely related to market capitalization, with larger companies generally exhibiting lower AH premiums [10] Group 2: Public Utilities and Environmental Protection - The government work report emphasizes the construction of a clean, low-carbon, safe, and efficient new energy system, aiming for a reduction of carbon emissions by approximately 3.8% per unit of GDP in 2026 [12] - The public utilities sector saw a 3.42% increase, while the environmental index decreased by 1.41%, indicating a mixed performance across sectors [12] - Investment recommendations include major thermal power companies and renewable energy leaders, highlighting the importance of energy transition and infrastructure development [14] Group 3: Chemical Industry - The potassium fertilizer market is experiencing a stable price increase, with domestic prices rising by 0.46% month-on-month and 6.06% year-on-year [15] - Phosphate rock prices are expected to remain high due to increasing demand from new energy materials, with current prices for 30% grade phosphate rock around 1,040 CNY/ton [15][16] - The demand for glyphosate is anticipated to rise, with prices increasing to 26,500 CNY/ton, driven by geopolitical factors and export opportunities [18][19] Group 4: Pharmaceutical Industry - The IgA nephropathy treatment market is projected to reach a median commercialization scale of approximately $8.3 billion, driven by a significant patient population in China [20] - The government work report positions the biopharmaceutical sector as a new pillar industry, emphasizing innovation and market expansion [25] - Key catalysts for IgAN treatments include upcoming clinical data releases and regulatory approvals, with several drugs expected to enter the market in the near term [23][24] Group 5: Company-Specific Insights - Bilibili's advertising revenue grew by 27% year-on-year, driven by increased demand in various advertising scenarios, while overall revenue reached 8.321 billion CNY [26][27] - Hutchison China MediTech's overseas sales of furmonertinib increased by 26%, with a positive revenue outlook for 2026 [30] - Far East Horizon's net profit remained stable at 3.9 billion CNY, with a focus on maintaining high dividend yields [32][35]