Summary of Conference Call Notes Industry Focus - The discussion centers around the **construction and technology sectors**, highlighting their significance as a core investment theme leading up to **2026** [1] Core Insights and Arguments - There is a continued emphasis on the **construction and technology track** as a primary investment line for the future, specifically targeting the year **2026** [1] - The current market sentiment in technology is positive, as evidenced by the **surge in stock prices** of companies such as **Shanghai Port Bay**, which reached its daily limit, along with significant increases in stocks of **Yaxiang Integration** and **Shenghui Integration** [1] Other Important Content - The call reiterates the importance of maintaining focus on the **construction and technology sectors**, suggesting that these areas will be pivotal for investment strategies moving forward [1]

Group 1 - The core viewpoint of the news is that Yaxiang Integration (stock code: sh603929) reached its daily limit with a price of 149.27 yuan, marking a 10% increase and a total market capitalization of 31.848 billion yuan on February 9, 2026 [1][2]. Group 2 - Yaxiang Integration has core technology in the semiconductor cleanroom sector and has obtained CNAS certification, providing cleanroom engineering services for high-tech electronic industries like IC semiconductors, which have a promising development outlook [2]. - The company has optimized its governance structure by canceling the supervisory board and revising multiple systems, which simplifies decision-making processes and enhances operational efficiency [2]. - The semiconductor sector has recently gained market attention, with related stocks showing varying degrees of increase in February, contributing to Yaxiang Integration's stock performance [2]. - Yaxiang Integration has established a stable position in the Singapore market, and its global supply chain operations are functioning well, enhancing its competitiveness in overseas markets [2]. - On February 9, 2026, there was a net inflow of large orders for Yaxiang Integration, driven by main funds, which contributed to the stock's limit-up performance [2]. - The technical indicators for the stock, such as the MACD, have recently formed a golden cross, indicating a short-term upward trend [2]. - As of January 30, 2026, the number of shareholders in the company decreased by 4.34% compared to the previous period, suggesting a trend towards concentration of shares [2].

Investment Rating - The report maintains a "Buy" rating for the construction and building materials sector, with specific recommendations for several companies [9][12]. Core Insights - The report highlights the recent price increases in electronic fabrics, indicating a positive trend in both emerging technologies and traditional cyclical investments. The price of 7628 electronic fabric increased by over 0.5 yuan/meter, exceeding market expectations, which reflects a broader trend of high-end electronic fabric demand trickling down to standard electronic fabrics [1][12]. - The report emphasizes the importance of effective investment in stabilizing economic growth, as reiterated in the recent State Council meeting, which is expected to boost construction activity in Q1 2026 [1][14]. - The report suggests a balanced investment approach between emerging industries and traditional cyclical sectors, recommending companies such as Yaxiang Integration, Jinggong Steel Structure, and China Construction International [1][12]. Summary by Sections Industry Overview - The report notes that the price of ordinary electronic yarn and fabric has increased significantly, with G75 electronic yarn prices rising by 10.5% and 7628 electronic fabric prices by 11.9% week-on-week [2][19]. - The domestic cement price decreased by 0.9% week-on-week, with a notable drop in the cement shipment rate [2][26]. Key Companies and Dynamics - China National Building Material has issued a profit warning, expecting a loss of approximately 2.3 billion to 4 billion yuan for 2025, a significant shift from a profit of 2.387 billion yuan in 2024 [3]. - The report recommends several companies for investment, including Yaxiang Integration (603929 CH), China Construction International (3311 HK), and Sichuan Road and Bridge (600039 CH), all rated as "Buy" with target prices set above current market levels [9][37]. Market Trends - The report indicates that the construction materials sector is experiencing a cyclical recovery, with price increases in various segments such as waterproofing and engineering materials, driven by government policies aimed at boosting infrastructure investment [1][15]. - The report also highlights the ongoing demand for high-end materials in commercial aerospace, including high-temperature fiber materials and perovskite materials for solar wings [1][12].

Summary of Conference Call Records Industry Overview - The focus is on the cleanroom industry, particularly companies like Yaxing Integration and Shenghui Integration, which are leaders in this sector [1][2]. Key Insights and Arguments - **AI Demand and Capital Expenditure**: Recent financial reports from several overseas leaders have exceeded expectations, confirming the robust demand for AI and indicating that AI capital expenditures are entering an expansion phase. Cleanrooms, as a front-end infrastructure segment, are expected to see a corresponding increase in demand [1]. - **U.S. Semiconductor Investments**: The U.S. has significantly increased investments in the semiconductor manufacturing chain, attracting major companies like TSMC and Samsung to establish factories in the U.S. By the end of 2024, TSMC is expected to have invested $65 billion in the U.S. and announced an additional $100 billion investment in March 2025. Recent "tariff-for-investment" policies have led TSMC and other Taiwanese companies to commit to at least $250 billion in direct investments in the U.S., which is likely to drive rapid growth in regional cleanroom demand [1]. - **Southeast Asia Developments**: - **Singapore**: The RIE2030 initiative plans to invest SGD 37 billion over the next five years in key economic sectors like semiconductors, aiming to double the output of the semiconductor and related manufacturing industries by 2030. This initiative is attracting major players such as UMC, World Advanced, and Micron to establish factories [2]. - **Vietnam and Thailand**: These countries are leveraging labor cost advantages and industrial cluster benefits to accelerate the transfer of precision manufacturing (PCB) and other supply chains, leading to robust regional capital expenditures [2]. Supply Side Dynamics - Cleanroom production capacity is primarily concentrated in mainland China and Taiwan, with the top five companies holding nearly 40% of the market share. Mainland leaders like Shenzhen Sanda A are actively pursuing overseas expansion. However, there are potential restrictions on mainland capacity moving to the U.S., leading to a significant mismatch in supply and demand in the U.S. market. It is anticipated that there will be an accelerated introduction of Taiwanese cleanroom leaders to the U.S. market, with project profit margins expected to exceed expectations, contributing significantly to performance growth. Continuous recommendations are made for Yaxing Integration (a Taiwanese cleanroom leader securing multiple large contracts in Singapore) and Shenghui Integration (which has established a U.S. subsidiary and is expected to benefit from TSMC's orders) [2]. Risk Factors - Potential risks include a downturn in semiconductor capital expenditures, increased competition within the industry, and the possibility that expansion efforts in the U.S. may not meet expectations [3].

Core Insights - The report discusses the implementation of the "Tax Law Principle" and its implications for service industries such as internet and finance, indicating that current tax arrangements are unlikely to change significantly in the short term [2][3][12] - The real estate sector is experiencing a favorable shift in financing policies, with REITs and private placements opening new equity financing channels to alleviate financial pressures on real estate companies [3][13] Tax Law Implementation - The State Council approved the "Implementation Regulations of the Value-Added Tax Law of the People's Republic of China" on December 19, 2025, and subsequent announcements have clarified tax details, suggesting stability in tax arrangements for service industries [2][3][12] - The definition of "basic services" in telecommunications is evolving, with mobile data and internet broadband still classified as "value-added services" subject to a 6% VAT rate, while traditional voice services are recognized as "basic services" with a 9% VAT rate [2][3][12] Real Estate Sector Analysis - The financing environment for the real estate industry is improving, with a shift from debt financing to equity financing, including the introduction of REITs and private placements [3][13] - Recent regulatory changes, such as the gradual retreat from the "three red lines" policy, indicate a more supportive financing environment for real estate companies [13] - The report maintains a "positive" rating for the real estate sector, highlighting the potential for recovery in the industry as financing policies become more favorable [3][13] Investment Recommendations - The report recommends several quality real estate companies for investment, including China Jinmao, Poly Developments, and China Resources Land, among others, due to their potential for recovery and attractive valuations [13] - The report emphasizes the importance of monitoring the evolving financing landscape and the impact of government policies on the real estate market [3][13]

Group 1 - The core point of the article is that Yaxiang Integrated (603929) reported a total of 22,924 shareholders as of January 30, 2026 [1]

Investment Rating - The report rates the industry as "Buy" [1] Core Insights - The cleanroom market is expanding due to increased investment in high-tech industries, benefiting companies like Yaxiang Integration, with related companies including Shenghui Integration and Bocheng Co., Ltd. [3][4] - The real estate market is showing signs of marginal improvement, with significant potential for transformation and development [5] Summary by Sections Cleanroom Industry - The growth in high-tech industry investments is driving the expansion of the cleanroom market, with Micron Technology planning to invest $24 billion in a NAND factory in Singapore over the next decade, which will include 700,000 square feet of cleanroom space [4] - The World Semiconductor Trade Statistics (WSTS) predicts a 26.3% increase in the global semiconductor market by 2026, reaching $975 billion, further supporting the cleanroom industry's growth [4] - Yaxiang Integration's parent company reported a consolidated revenue of NT$9.5 billion (approximately RMB 2.1 billion) in December, a year-on-year increase of 165.2% [4] Real Estate Market - The Central Economic Work Conference in December 2025 emphasized stabilizing the real estate market through targeted policies, including controlling inventory and encouraging the acquisition of existing properties for affordable housing [5] - An article published on January 2, 2026, highlighted the importance of managing expectations in the real estate market, which has significant financial asset attributes and broad social implications [5] Recommended Companies - The report recommends Yaxiang Integration for the cleanroom sector, with related companies including Bocheng Co., Ltd. and Shenghui Integration [7] - Other sectors recommended include commercial aerospace, controllable nuclear fusion, and renewable energy, with specific companies highlighted for each sector [7]

Key Insights on Infrastructure Investment Opportunities - A seasonal infrastructure construction boom occurs from the end of the Spring Festival to the conclusion of the National People's Congress, lasting approximately 1-1.5 months, presenting significant investment opportunities[2] - The report identifies 10 strong sub-sectors with high odds and win rates, including engineering consulting services, environmental equipment, environmental governance, general equipment, specialized engineering, non-metallic materials, new metallic materials, specialized equipment, decoration, and plastics, with average returns of 12-15% and excess returns of 4-8% over the past decade[2][10] Selected Stocks from Strong Sub-sectors - The report highlights a portfolio of 18 stocks selected from the 10 strong sub-sectors based on a scoring model, which includes: - Engineering consulting: Qidi Design (average excess return 22.7%, win rate 100%) and Jian Ke Yuan (average excess return 16.4%, win rate 100%)[3][19] - Environmental equipment: Xianhe Environmental (average excess return 11.7%, win rate 90%) and Senyuan Co. (average excess return 12.2%, win rate 80%)[3][20] - Environmental governance: Shanghai Washba (average excess return 36.0%, win rate 100%) and Dechuang Environmental (average excess return 19.1%, win rate 89%)[3][23] - General equipment: Jialitu (average excess return 35.3%, win rate 100%) and Jinyang Sun (average excess return 28.8%, win rate 100%)[3][26] Performance and Risk Considerations - The selected 10 strong sub-sectors have consistently shown high absolute and excess return probabilities, with a stable performance track record over the past decade[10][13] - Risks include limitations of comparative studies, market learning effects leading to volatility, unexpected market downturns, and individual stock risks impacting the overall portfolio[4]

证券研究报告 | 2026年01月30日 **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: * ...

证券研究报告 | 2026年01月30日 **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: **Minkel's**: * ...