Investment Rating - The report maintains a rating of "B" for the new materials sector, indicating a leading position in the market [2]. Core Insights - The new materials sector has shown an upward trend, with the new materials index increasing by 3.69%, although it underperformed compared to the ChiNext index, which rose by 2.17% [2]. - The AI server market is experiencing rapid growth driven by increasing computational demands, with the global AI server market projected to reach USD 158.7 billion in 2025, up from USD 125.1 billion in 2024 [5]. - The report highlights investment opportunities in high-frequency and high-speed copper-clad laminate materials due to the evolving requirements of AI servers [5]. Market Performance - The new materials sector saw significant gains, with various sub-sectors performing well: - Semiconductor materials increased by 8.99% - Electronic chemicals rose by 8.84% - Biodegradable plastics grew by 5.95% - Industrial gases increased by 4.48% - Battery chemicals rose by 5.15% [18][2]. Price Tracking - Amino acids prices showed a downward trend, with valine at CNY 13,100 per ton (-2.60%) and tryptophan at CNY 42,500 per ton (-2.30%) [29]. - Biodegradable plastics prices remained stable, with PLA (FY201 injection grade) at CNY 17,800 per ton [33]. - Industrial gases prices varied, with oxygen priced at CNY 483 per ton (+10.27%) and nitrogen at CNY 503 per ton (-1.18%) [37]. Investment Recommendations - The report suggests focusing on companies such as Shengquan Group, Dongcai Technology, and Zhongcai Technology, which are positioned to benefit from the demand for high-frequency and high-speed copper-clad laminate materials [5].

Core Insights - The report highlights the recovery cycle in the feed industry and marginal improvements in livestock farming, suggesting potential investment opportunities in related sectors [5][6] - The agricultural sector, particularly the livestock segment, is experiencing fluctuations in prices, with a noted decrease in pig prices and an increase in chicken prices, indicating a complex market dynamic [6][8] - The AI pharmaceutical sector is witnessing significant commercial validation, as evidenced by a major contract signed by Jingtai Holdings, reflecting the growing demand for AI technologies in drug development [11][14] Market Trends - The domestic market indices showed positive movements, with the Shanghai Composite Index closing at 3,665.92, up by 0.50% [4] - The agricultural sector's performance is highlighted by a 2.52% increase in the agriculture, forestry, animal husbandry, and fishery sector, ranking it 10th among sub-industries [6] - The robotics industry is also gaining traction, with over 1,500 robot products showcased at the World Robot Conference, indicating a growing interest in automation technologies [8] Industry Analysis - The feed industry is expected to see a recovery due to declining upstream raw material prices and improving conditions in the livestock sector, particularly for companies like Haida Group [6][8] - The pig farming industry is entering a profit cycle, but the overall debt reduction trend suggests a cautious approach to capacity expansion [6][8] - The AI pharmaceutical industry is on the brink of an explosive growth phase, with increasing collaborations between AI firms and traditional pharmaceutical companies [11][14] Company Insights - Wanchen Group is positioned as a leading player in the snack food market, with a significant revenue increase of 247.9% in 2024, driven by its aggressive store expansion strategy [19][20] - The company has established a robust supply chain and operational capabilities, which are critical for maintaining its market leadership in the competitive snack food sector [20] - The report forecasts continued revenue growth for Wanchen Group, with projected revenues of 551.32 billion, 670.39 billion, and 792.89 billion from 2025 to 2027 [20]