Financial Engineering - The report highlights the tracking of an outperforming stock selection strategy, indicating a focus on stocks with net profit growth exceeding expectations and analyst forecasts [1] Active Quantitative Fund Performance - For the week of October 24 to October 31, 2025, the median return of active quantitative funds was 0.09%, while the CSI 300 Index returned -0.43% and the Wind All A Index returned 0.41% [2] - Year-to-date, the median return of active quantitative funds stands at 28.88%, compared to 17.94% for the CSI 300 Index and 26.38% for the Wind All A Index [2] - Top-performing active quantitative funds this week had returns between 3% and 6%, primarily concentrated in the power equipment sector, while underperforming funds had returns between -2% and -5%, mainly focused on the electronics sector [2] Outperforming Stock Selection Strategy - The outperforming stock selection strategy is constructed based on two indicators: year-on-year net profit exceeding expectations and analyst forecasts exceeding expectations [3] - The strategy utilizes the Wind All A index as the underlying stock pool, combining the top 50 stocks based on analyst forecasts and the top 50 stocks based on net profit growth to form the final stock pool [4] - For the week of October 24 to October 31, 2025, the strategy yielded a return of -0.98%, underperforming the Wind All A Index, which returned 0.41% [4] - In the previous month, the strategy achieved a return of 1.34%, outperforming the Wind All A Index, which returned -0.04% [4] - Year-to-date, the strategy's return is 46.11%, significantly higher than the Wind All A Index's return of 26.38%, resulting in an excess return of 19.73% [4] Summary and Investment Recommendations - The report notes that top-performing active quantitative funds are concentrated in the power equipment sector, while high-return funds this year are focused on the electronics sector [5] - The outperforming stock selection strategy's return for the week was -0.98%, while its year-to-date return is 46.11% [5] - In November 2025, the strategy selected 30 stocks, primarily from the machinery and equipment sector [5] - The highest return this year was from Cangge Mining (000408.SZ), with a return of 116.30%, categorized under non-ferrous metals and energy metals [5]