Macro Strategy - The report highlights that China's consumption rate is only 37.2%, significantly lower than the average of 53.8% across 38 countries, indicating a need to improve the income of the middle and low-income groups to boost consumption [1][16][17] - It is noted that the low consumption rate is primarily due to a low consumption propensity, with China's consumption propensity at 62% compared to the average of 92.3% for the 38 countries [1][16] - The report suggests that increasing the tax burden on high-income earners and redistributing the revenue to lower-income groups could potentially increase total consumption by 1.6 trillion yuan, raising the consumption rate by 1.3 percentage points [1][17] Macro Commentary - The Federal Reserve maintained its interest rate at the May FOMC meeting, expressing concerns about economic uncertainty and stagflation risks, which complicates the decision-making process regarding interest rate cuts [2][18] - The commentary indicates that the market's expectation of three interest rate cuts this year may be overly optimistic, with potential upward pressure on U.S. Treasury yields [2][18] Industry Insights - The report on the AI and automotive industry emphasizes the growing opportunities for leading third-party autonomous driving suppliers, driven by the demand for equal access to intelligent driving technology and performance validation [6] - It is projected that leading autonomous driving suppliers could capture about 50% of the market share in new car sales, particularly benefiting second and third-tier automakers [6] - The report also discusses the competitive landscape for domestic chip manufacturers, noting that they have made significant progress in performance and production validation, positioning themselves to compete with established players like NVIDIA [6] Real Estate Industry - The real estate sector is expected to stabilize gradually due to the introduction of incremental policies and a reduction in housing loan interest rates, with a focus on quality developers in core cities [9] - Recommendations include developers like China Resources Land and Yuexiu Property, as well as property management companies such as China Resources Vientiane Life and Greentown Service [9] Construction Materials Industry - The report indicates that public fund holdings in the residential industry chain remain low, with a slight increase in construction and building materials allocations [8] - The concentration of holdings in the construction materials sector has increased, with 27% of stocks in this sector held by public funds [8]

Core Viewpoint - Fuda Co., Ltd. is a leading enterprise in the field of crankshafts for hybrid engines in China's new energy vehicle sector, focusing on technological innovation, smart manufacturing transformation, and deep integration into the new energy industry chain [2][9]. Technological Innovation - The company initiated a core technology research project for high-performance lightweight crankshafts in 2017, achieving over 10% improvement in fatigue strength through self-developed technology [3][4]. - Fuda's R&D team has developed automated processes that enhance product lifespan by 30% to meet the high precision demands of new energy hybrid crankshafts [3]. - The company has invested nearly 800 million yuan in R&D over the past decade, with over 300 patents and participation in the formulation of more than 10 national industry standards [4]. Digital Transformation - Fuda is actively promoting the digital transformation of traditional manufacturing, utilizing 5G industrial internet and big data to enhance production efficiency and stability [5][6]. - The company has achieved an 80% increase in production line efficiency and reduced investment costs by over 30% through smart manufacturing upgrades [6]. - A new project aimed at producing 1.8 million crankshafts annually is underway, integrating full lifecycle intelligent management [6][7]. Market Expansion - Fuda has expanded from clutch production to large crankshafts and has fully transitioned into the new energy vehicle sector, establishing a joint venture with an international company in 2018 [8]. - The company is also entering the robotics core components market, leveraging its strengths in electric drive gears and customer relationships [8][9]. - Fuda's international customer base spans the United States, Japan, and Europe, with plans to expand overseas alongside the global growth of Chinese automotive manufacturers [9].