Group 1 - The core viewpoint of the report highlights the issuance of Aiwei Convertible Bonds (118065.SH) with a moderate design, including standard terms such as down adjustment, redemption, and put options. The bond size is 1.901 billion yuan, with a corresponding stock market value of 15.43 billion yuan, indicating a relatively mild dilution rate for the underlying stock [1][13][14] - The four major fundraising projects associated with the Aiwei Convertible Bonds include the construction of a global R&D center, R&D and industrialization of edge AI and supporting chips, R&D and industrialization of automotive chips, and R&D and industrialization of motion control chips. These projects align with the company's diversified application strategy in consumer electronics, edge AI, and automotive/industrial sectors [2][15][16] - The integrated circuit industry is a pillar of the national economy, crucial for economic development and national security. The overall trend of China's integrated circuit industry is continuous growth, with ongoing efforts towards domestic production [4][39] Group 2 - The fundamental analysis of Aiwei Electronics indicates that the company has emerged from the performance trough in 2023, with expectations for revenue and profit recovery in 2024. The company is transitioning into a new phase of profitability recovery and platform expansion, with anticipated revenue growth from 2025 to 2027 [5][39] - The investment strategy for the convertible bonds suggests that 2026 will be a critical year for Aiwei Electronics, with potential for high profitability if the production pace of edge AI chips exceeds expectations and automotive chips penetrate leading automotive supply chains. Conversely, if consumer electronics demand does not recover as anticipated, the investment returns will depend on sufficient down adjustment space and terms negotiation [6][18] - The competitive landscape of the integrated circuit industry shows that the design sector is experiencing rapid growth, with domestic companies gaining market opportunities due to favorable policies and local service advantages. The sales revenue of China's integrated circuit design industry is projected to reach 646.04 billion yuan in 2024, reflecting an 11.9% increase from 2023 [40][41]

Report Industry Investment Rating No information provided. Core Viewpoints - After the holiday, the convertible bond market declined slightly, but convertible bond ETFs continued to attract incremental funds. Before the Two Sessions, the convertible bond market is expected to feature policy - based games and sector rotations. Performance support will remain the core of valuation, high - price and high - premium convertible bonds may fluctuate significantly, and high - quality large - cap convertible bonds are expected to perform steadily. If investors' risk appetite increases, it is cost - effective to increase holdings in the main technology sectors [3][11]. Summary by Directory Policy Tracking - On February 25, 2026, five departments including the Shanghai Municipal Commission of Housing and Urban - Rural Development issued a notice to optimize real estate policies, including adjusting housing purchase restrictions, optimizing housing provident fund loan policies, and improving personal housing property tax policies, aiming to promote the stable and healthy development of the real estate market [4]. Secondary Market - Last week, major domestic equity market indices rose, with the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index up 1.98%, 2.80%, and 1.05% respectively. Overseas, the conflict in the Middle East escalated, driving up precious metals and crude oil prices. Domestically, the RMB exchange rate strengthened, and the central bank took measures to prevent exchange - rate overshoot. The equity market showed a structural upward trend, with pro - cyclical sectors stronger [5]. - The convertible bond market indices declined, with average daily trading volume decreasing. However, convertible bond ETFs had a net purchase of 7.2 billion yuan. The large - cap style of the convertible bond market was dominant, and most convertible bonds in various industries fell. In terms of valuation, most industries' convertible bond valuations decreased [7][8][9]. - In the short term, the convertible bond market will follow the equity market with an upward - trending and volatile pattern. High - price and high - premium convertible bonds may fluctuate, and large - cap high - quality convertible bonds are expected to perform steadily. If market activity increases, it is advisable to increase holdings in technology - related convertible bonds [11]. - Most individual convertible bonds fell. Among rising bonds, Youcai Convertible Bond and Shuangliang Convertible Bond rose significantly due to non - early redemption announcements. Among falling bonds, those facing early redemption risk declined deeply [12]. Primary Market - No new convertible bonds were issued last week, and Aiwei Convertible Bond was listed. As of last Friday, the convertible bond market's outstanding scale decreased. Five convertible bonds were approved by the CSRC and seven passed the review of the issuance examination committee, waiting to be issued [31][32]. - In terms of terms tracking, one convertible bond announced a downward revision of the conversion price, four announced early redemption, and several announced non - early redemption or expected to trigger early redemption conditions. Ten convertible bonds had a conversion ratio of over 5% [34][36].

Group 1 - The convertible bonds of Guanzhong increased by 4.36%, while Aiwei's convertible bonds rose by 4.23% [1] - Jiaze's convertible bonds saw an increase of 3.27%, and Yanpai's convertible bonds grew by 2.94% [1] - Conversely, Jiali's convertible bonds decreased by 3.40%, and Ruike's convertible bonds fell by 2.45% [1] - Dazhong's convertible bonds dropped by 1.95%, and Dinglong's convertible bonds declined by 1.94% [1]

Group 1 - The company Aiwai Electronics (688798.SH) announced the issuance of convertible bonds amounting to 1,901.32 million yuan [1] - The convertible bonds will be listed for trading on the Shanghai Stock Exchange starting from February 26, 2026 [1] - The securities will be referred to as "Aiwai Convertible Bonds" with the code "118065" [1]

Group 1 - The company Aiwai Electronics (688798.SH) announced the issuance of convertible bonds amounting to 1,901.32 million yuan [1] - The convertible bonds will be listed for trading on the Shanghai Stock Exchange starting from February 26, 2026 [1] - The securities will be referred to as "Aiwai Convertible Bonds" with the code "118065" [1]

Core Viewpoint - The company has received approval for the issuance of convertible bonds "Aiwei Convertible Bonds" totaling 1.901 billion yuan, with bond code "118065" [1] Group 1: Bond Issuance Details - The issuance is directed towards unspecified investors, with a total scale of 1.901 billion yuan [1] - After the priority subscription by existing shareholders, the remaining portion will be offered to the public [1] Group 2: Subscription Information - Existing shareholders subscribed for 1.426 million hands, amounting to 1.426 billion yuan [1] - Public investors subscribed for 467,400 hands, totaling 467 million yuan, with 7,888 hands (amounting to 7.888 million yuan) being abandoned [1] - The abandoned portion will be underwritten by the sponsor, CITIC Securities, with an underwriting quantity of 7,888 hands and an underwriting ratio of 0.41% [1]

1. Report Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - In the short - term, the market risk appetite is expected to continue to decline marginally, and the market may shift from a liquidity - driven small - cap market to a performance - driven mid - and large - cap market. Convertible bonds will also follow the underlying stocks with increased volatility. Low - risk - preference funds have started to be conservative. If the equity market volatility amplifies, the impact of profit - taking and risk - aversion needs to be noted. However, the recent increase in the number of newly issued convertible bonds makes convertible bond subscription opportunities worth attention [3][11]. 3. Summary by Relevant Catalogs Policy Tracking - On January 20, the Ministry of Finance and other five departments issued the "Notice on Implementing the Loan Interest Subsidy Policy for Small and Medium - Sized Enterprises", providing an annualized 1.5 - percentage - point interest subsidy for up to 2 years for eligible small and medium - sized private enterprises, with a single - household subsidy loan limit of 50 million yuan. The policy supports multiple fields including emerging fields represented by artificial intelligence [4][5]. - On January 23, the China Securities Regulatory Commission issued the "Guidelines for the Performance Comparison Benchmark of Publicly Offered Securities Investment Funds", emphasizing the representativeness, seriousness, and stability of the performance comparison benchmark, strengthening the internal control and management of fund managers, and strictly regulating relevant behaviors [4][5]. Secondary Market - The major equity market indices showed mixed performance last week. The Shanghai Composite Index and Shenzhen Component Index rose by 0.84% and 1.11% respectively, while the ChiNext Index fell by 0.34%. Overseas, there was a triple - kill in the US stock, bond, and foreign exchange markets, and precious metals hit new highs. Domestically, the central bank increased the re - loan quota for scientific and technological innovation and technological transformation and relaxed the requirements for credit entities [6]. - The convertible bond market indices all rose last week. The CSI Convertible Bond Index, Shanghai Stock Exchange Convertible Bond Index, and Shenzhen Stock Exchange Convertible Bond Index rose by 2.92%, 2.79%, and 3.18% respectively, with an average daily trading volume of 9.3296 billion yuan, a marginal decrease of 1.1224 billion yuan from the previous week. The CSI Convertible Bond Index outperformed the Shanghai Composite Index by 4.36 pcts, and mid - cap convertible bonds outperformed small - cap convertible bonds by 0.27 pcts. Convertible bond ETFs had a net subscription of 4.289 billion yuan, with Bosera Convertible Bond ETF significantly increasing its holdings by 4.148 billion yuan and Haitong SSE Convertible Bond ETF only slightly increasing its holdings by 0.141 billion yuan [8]. - Structurally, the small - cap style in the convertible bond market continued to dominate. The Wind Convertible Bond AA Index led the sub - indices with a 4.46% increase. Mid - and high - priced, mid - and small - cap convertible bonds also performed strongly. The conversion value reached the 97.8% quantile since 2020, and the conversion premium rate decreased by 2.25 pcts to the 59.1% quantile. In terms of trading sentiment, the activity in both the equity and convertible bond markets continued to increase marginally [10]. - By industry, all industries' convertible bonds rose last week. Steel and textile and apparel convertible bonds led the market with an average increase of over 5% and 4% respectively, while electronic industry convertible bonds had an average increase of less than 1% [10]. Primary Market - Last week, Longjian Convertible Bond and Aiwei Convertible Bond were issued, and no convertible bonds were listed. Zai 22 Convertible Bond, Bo 23 Convertible Bond, and Hugong Convertible Bond were redeemed early and delisted. As of last Friday, the convertible bond market's outstanding scale was 556.27 billion yuan, a decrease of 914 million yuan from the beginning of the year and an increase of 1.272 billion yuan from the previous week. Eight convertible bonds were approved by the CSRC to be issued, with a total of 6.164 billion yuan [3][33]. - Nine convertible bonds had a conversion ratio of over 5% last week, 2 more than the previous week. Some convertible bonds such as Huarui Convertible Bond and Furong Convertible Bond have announced early redemption [34]. - In terms of clause tracking, 1 convertible bond announced a downward revision of the conversion price, and 5 convertible bonds announced early redemption. Some convertible bonds are expected to trigger the conditions for downward revision of the conversion price or early redemption [37].

Macro Strategy - The report highlights the investment value of the GF CSI Media ETF (512980.SH), which is closely tracking the CSI Media Index (399971.SZ) and has a management fee of 0.5% per year and a custody fee of 0.1% per year. As of January 16, 2026, the ETF has a circulation scale of 10.759 billion yuan and an annualized return of 29.47% with a volatility ratio of 0.89, indicating reasonable risk control capabilities [1][12] - The underlying index focuses on AI applications, with a significant weight of 31.43% in GEO concept stocks, including key companies like BlueFocus, Yanshan Technology, and Kunlun Wanwei. The top ten weighted stocks account for 51.52% of the index, indicating a high concentration of component stocks [1][12] - The report emphasizes that the current media bull market is driven by AI technology transformation and the assetization of data factors, contrasting with the previous bull market driven by mobile internet traffic. The media sector's valuation is at a historical low, providing a high margin of safety for investors [1][12] Non-Bank Financial Industry - The report indicates that the non-bank financial sector is experiencing an upward trend in market conditions, with public fund holdings in the sector increasing to 2.42% by the end of 2025, up 0.82 percentage points from the previous quarter. However, the sector remains underweight compared to the market [5][16] - The report recommends key stocks such as China Life, Ping An, New China Life, China Pacific Insurance, and CITIC Securities, highlighting their potential to benefit from the improving market environment [5][16] - The average daily trading volume of equity funds reached 34.444 trillion yuan, a year-on-year increase of 155%, indicating a significant improvement in market activity [5][16] Real Estate Industry - The report notes that the real estate market is gradually stabilizing, with a narrowing decline in sales and construction metrics compared to 2024. The total development investment in 2025 was 8.3 trillion yuan, down 17.2% year-on-year, while the new construction area was 5.9 million square meters, down 20.4% [6][18][19] - Sales figures show a cumulative sales area of 8.8 million square meters, down 8.7% year-on-year, with a cumulative sales amount of 8.4 trillion yuan, down 12.6%. The decline in sales is narrowing, particularly in first-tier cities [6][18][19] - Investment recommendations include China Resources Land, China Merchants Shekou, and New City Holdings, with a focus on property management companies like China Resources Mixc Life and Greentown Service [6][18][19] Environmental Industry - The report discusses the growth potential of the waste incineration sector, particularly in Southeast Asia and India, where an estimated 500,000 tons per day of waste incineration capacity is expected, corresponding to an investment scale of approximately 250 billion yuan [7][20] - Companies like Weiming Environmental and Sanfeng Environment are highlighted for their overseas expansion and operational stability, with significant revenue increases driven by high electricity prices and processing fees in international markets [7][20] - The report emphasizes the importance of cost control in overseas projects, with potential for significant profit margins compared to domestic projects, particularly in Indonesia where new projects are expected to yield higher returns [7][20]

Market Overview - The equity-like market experienced a volatile upward trend from January 19 to 23, with the overall market index rising by 1.81% and the convertible bond index increasing by 2.92% during this period [5] - The convertible bond market saw a significant increase in trading activity, with the average daily trading volume dropping from 1045.15 billion to 932.94 billion [25] Convertible Bond Valuation - As of January 23, 2026, the median price of convertible bonds surpassed 140 yuan, indicating a shift in the reference significance of absolute prices [20] - The valuation of convertible bonds has shown a divergence, with debt-type bonds experiencing a slight decline in valuation while equity-type bonds continued to stretch [10][18] - The pricing anchor for convertible bonds has weakened, with a notable decrease in the proportion of low-priced convertible bonds, particularly those priced below 120 yuan [18] Sector Performance - The performance of convertible bonds varied by sector, with notable gains in upstream resources and high-end manufacturing sectors, such as textiles and apparel, which rose by 7.44%, and steel and petrochemicals, which increased by 6.67% and 6.65%, respectively [8] - Conversely, sectors like social services and media showed weaker performance, with declines of 7.53% and 1.93% [8] Investment Strategy - The current market conditions suggest that investors should focus more on equity timing indicators rather than relying solely on convertible bond metrics, as the significance of various convertible bond indicators is diminishing [20] - Despite the high valuation levels, the internal momentum for buying remains strong, and investors seeking relative returns are encouraged to continue participating in the market [20] Supply and Issuance - The total issuance of convertible bonds in 2026 reached 57.80 billion yuan, which is relatively low compared to recent years, with new issuances including Aiwei Convertible Bond at 19.01 billion yuan and Longjian Convertible Bond at 10.00 billion yuan [25]

Investment Rating - The investment rating for the company is suggested to be "actively subscribe" for the convertible bond issuance [14]. Core Views - The report highlights that the company, Aiwei Electronics, is a leading domestic player in the mixed-signal and analog chip design sector, focusing on high-performance integrated circuits [17][34]. - The expected listing price range for the convertible bond is between 133.78 and 148.51 yuan, with an anticipated conversion premium rate of around 35% [15][14]. - The company has shown steady revenue growth since 2020, with a compound annual growth rate (CAGR) of 19.51% projected from 2020 to 2024 [18]. Summary by Sections 1. Convertible Bond Basic Information - The total issuance scale of the Aiwei convertible bond is 1.901 billion yuan, with net proceeds allocated for global R&D center construction and various chip development projects [12][11]. - The bond has a maturity of 6 years, with a credit rating of AA+sti/AA+sti, and a face value of 100 yuan [12][10]. 2. Investment Subscription Suggestions - The report estimates a first-day price for the convertible bond between 133.78 and 148.51 yuan, with a conversion price of 79.83 yuan per share [14][15]. - The expected subscription rate for online investors is projected to be 0.0060% [16]. 3. Underlying Stock Fundamental Analysis 3.1 Financial Data Analysis - The company has maintained a steady revenue growth trajectory, with a projected revenue of 2.933 billion yuan in 2024, reflecting a year-on-year increase of 15.88% [18]. - The net profit margin and gross profit margin have remained stable, with sales net profit margins recorded at 7.07%, 12.39%, -2.55%, 2.02%, and 8.69% from 2020 to 2024 [25]. 3.2 Company Highlights - Aiwei Electronics is recognized as a high-tech enterprise and has developed over 1,500 product models, with sales exceeding 6 billion units in 2024 [34].