Investment Rating - The industry investment rating is maintained as "Positive" [6] Core Insights - Concerns over geopolitical conflicts have increased, leading to a rise in Brent crude oil prices, which is expected to improve the oil service industry's outlook. Recent military actions by the U.S. against Venezuela and increased military presence near Iran have contributed to these concerns. Additionally, severe weather in the U.S. has impacted refining output. As a result, Brent crude oil prices have shown a sustained increase, and if this trend continues, capital expenditures in the industry are expected to marginally improve, enhancing the oil service sector's outlook [9] - Global oil and gas capital expenditures remain at low levels, indicating potential for upward recovery. Currently, the global active rig count is approximately 1,700-1,800, still below pre-2019 levels. In China, capital expenditures in the oil and gas sector have contracted due to oil prices and the end of the 14th Five-Year Plan, with expected year-on-year declines of 1.8% and 5.1% in 2024 and 2025, respectively. After several years of capital contraction, a recovery in industry expenditures is anticipated. Domestically, China's reliance on foreign oil and gas remains high, and a gradual recovery in capital expenditures is expected. Internationally, U.S. government policies are promoting oil and gas development, and the EIA predicts an increase in natural gas generation capacity in the coming years, suggesting a potential rebound in overseas oil service expenditure in 2026 [9] - The recovery in oil service sector sentiment takes time, emphasizing the importance of competitive companies. Due to the long construction cycles of oil service projects, owner companies often need to observe the sustainability of oil prices. Current geopolitical concerns have elevated oil prices and market expectations, but a recovery in oil service sentiment will require time. It is estimated that it will take at least six months for the positive effects of rising oil prices to be felt in the oil service sector. As downstream companies place greater emphasis on long-term partnerships with suppliers, companies with high competitiveness are expected to benefit more from the recovery [9]

Group 1 - The core view of the report emphasizes that AI is reshaping manufacturing demand, with mature manufacturing moving towards global markets, and the mechanical industry is expected to benefit significantly from technology and export growth in 2026 [1][9][10] - The mechanical industry index outperformed the CSI 300 by 23.25 percentage points in 2025, with a 40.91% increase in the mechanical industry index compared to a 17.66% increase in the CSI 300 [9][10] - AI technology is expected to have a profound impact on the manufacturing industry, with AI infrastructure reshaping demand patterns and applications driving hardware manufacturing equipment demand [9][11] Group 2 - The report predicts that 2026 will see a significant increase in demand for equipment driven by AI infrastructure, including semiconductor equipment, liquid cooling equipment, and gas turbines [13] - The demand for AI hardware manufacturing equipment and components, such as humanoid robots and 3C automation equipment, is expected to rise [13] - Export-oriented equipment, particularly in the engineering machinery sector, is anticipated to show strong growth in 2026 [13] Group 3 - The semiconductor equipment market is projected to grow, with global sales expected to reach $125.5 billion in 2025, a 7.4% increase, and further growth to $138.1 billion in 2026 [34][40] - The report highlights that the domestic semiconductor equipment market in China is expected to reach approximately 230 billion yuan in 2025, indicating strong growth potential [41] - The PCB industry is entering a new development cycle driven by AI demand, with a projected global PCB market value of approximately $73.57 billion in 2024, reflecting a 5.8% year-on-year increase [54][56] Group 4 - Liquid cooling technology is becoming essential due to the increasing power consumption of AI servers, with the global liquid cooling component market expected to reach $5-10 billion in 2025 and $25 billion by 2030 [84][86] - The report indicates that the demand for liquid cooling solutions will significantly increase as AI processing power continues to rise, making traditional cooling methods inadequate [70][84] - The introduction of advanced liquid cooling systems, such as NVIDIA's GB200 and GB300, is expected to drive market growth and innovation in cooling technologies [84][86]

Core Viewpoint - The energy sector, particularly oil and coal, is experiencing significant upward momentum, with substantial capital inflows into energy ETFs, indicating strong investor interest and potential for growth [1][3]. Group 1: Market Performance - As of January 28, energy ETFs (159930) surged by 3.36%, attracting over 94 million yuan in capital, marking a total net inflow of over 200 million yuan over the past five days [1]. - Key stocks within the energy ETF saw varied performance, with China National Offshore Oil Corporation and Jereh Group both rising over 7%, while Shanxi Coking Coal and China Petroleum also posted gains [2][3]. Group 2: Component Stocks - The top ten component stocks of the energy ETF include: - China National Petroleum (3.16% increase, 15.06% weight) - China Shenhua Energy (1.43% increase, 14.26% weight) - China Petroleum & Chemical Corporation (0.16% increase, 12.09% weight) - Shaanxi Coal and Chemical Industry (2.76% increase, 10.82% weight) - Other notable stocks include Jereh Group and Shanxi Coking Coal, both showing significant gains [4]. Group 3: Oil Market Insights - According to Huatai Securities, geopolitical factors have led to a rebound in oil prices during the off-season, with Brent crude oil prices expected to average $65 per barrel by mid-2026, up from a previous estimate of $62 [5]. - The report suggests that energy companies with the ability to increase production and reduce costs may present attractive investment opportunities as oil prices stabilize [5]. Group 4: Coal Market Insights - According to Kaiyuan Securities, coal prices are at historical lows, providing room for a rebound, especially with supply-side policies constraining production and increased demand during the heating season [6]. - The report indicates that both thermal and coking coal prices have upward elasticity, with the coal sector poised for improvement as the market conditions shift [6].

Group 1 - Oil prices increased due to the situation in Iran, adverse weather in the US, and a weakening dollar, with WTI crude oil futures closing at $62.39 per barrel, up 2.9%, and Brent crude oil futures at $67.57 per barrel, up 3.02% [1] - According to the IEA's January 21 report, the global oil demand growth forecast for 2025/2026 was raised to 850,000/930,000 barrels per day, driven by improved macroeconomic and trade outlooks, alongside a decline in oil prices and a weaker dollar [1] - The demand for petrochemical feedstock is recovering, with jet fuel leading the growth in fuel products, while non-OECD countries are expected to contribute to the entire demand increase in 2026 [1] Group 2 - As of December 31, 2025, the top ten weighted stocks in the National Oil and Gas Index (399439) include China National Petroleum, Sinopec, CNOOC, and others, accounting for 67.11% of the total index [2] - The oil ETF Penghua (159697) closely tracks the National Oil and Gas Index, reflecting the price changes of listed companies in the oil and gas sector on the Shanghai and Shenzhen stock exchanges [1][2]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the energy sector, particularly natural gas and nuclear power, amid a global CAPEX upcycle driven by increasing electricity demand from AI, multi-shoring, and electrification [1][2][3][8]. Core Insights - **Electricity Demand Growth**: Global electricity demand is expected to rise significantly, with projections indicating it will exceed 32% of final energy consumption by 2050, up from 20% in 2023 [8]. - **CAPEX Projections**: A bottom-up analysis estimates a total of US$1,800 billion in global CAPEX from 2025 to 2030, focusing on offshore oil and gas exploration and production (E&P), LNG terminals, and gas-fired and nuclear power plants [2][7]. - **Industry Trends**: Four key trends identified include: 1. Consolidation in the oil and gas EPC and service market, leading to concentration among upstream equipment and parts manufacturers. 2. Outsourcing of production processes by EPC and service providers to suppliers. 3. Demand for higher quality advanced metal parts due to rising applications in deep-sea oil and gas, LNG terminals, and nuclear power plants. 4. Increased global competitiveness of Chinese equipment and parts suppliers [3][7][88]. Investment Opportunities - **Recommended Stocks**: The report initiates coverage on Neway and Develop with Buy ratings, and also recommends Yingliu, Jereh, and Sinoseal as potential beneficiaries of the CAPEX upcycle [1][3][7]. - **Market Mispricing**: The market may be underestimating the investment implications of the current natural gas and nuclear upcycle for China's upstream equipment and component manufacturers [7]. Financial Metrics of Recommended Stocks - **Neway Valve (603699.SH)**: Market cap of US$6.276 billion, expected PE of 22, with 61% overseas sales and a projected EPS CAGR of 28% from 2025 to 2027 [4]. - **Develop (688377.SH)**: Market cap of US$1.126 billion, expected PE of 37, with 62% overseas sales and a projected EPS CAGR of 51% [4]. - **Yingliu (603308.SH)**: Market cap of US$5.317 billion, expected PE of 54, with 47% overseas sales and a projected EPS CAGR of 54% [4]. - **Jereh Oil Field (002353.SZ)**: Market cap of US$12.801 billion, expected PE of 24, with 45% overseas sales and a projected EPS CAGR of 21% [4]. - **Sinoseal (300470.SZ)**: Market cap of US$5.337 billion, expected PE of 31, with 10% overseas sales and a projected EPS CAGR of 33% [4]. Additional Insights - **Natural Gas and Nuclear Power**: Both sectors are expected to benefit from stable electricity generation capabilities, with natural gas producing countries ramping up exploration and production, particularly offshore [2][20]. - **Technological Advancements**: The report highlights advancements in production technology that have significantly lowered the break-even costs for offshore oil E&P, enhancing the attractiveness of investments in this area [36][49]. - **Nuclear Power Renaissance**: There is a noted global renaissance in nuclear fission power, particularly in China, with expectations of accelerated approvals and construction of nuclear projects [65][66]. Conclusion - The energy sector, particularly natural gas and nuclear power, presents substantial investment opportunities driven by increasing electricity demand and significant CAPEX growth. Chinese manufacturers with strong overseas exposure and advanced manufacturing capabilities are well-positioned to benefit from these trends [1][7][8].

Core Viewpoint - The company has signed three gas turbine generator sales contracts with two different customers in the U.S. since November 2025, with a total contract value exceeding $300 million [1] Group 1: Contracts and Financials - The cumulative contract amount from the three sales contracts is over $300 million [1] - Specific order details will be available in the company's regular reports [1] Group 2: Production Capacity - The company has established production capabilities for various equipment, including electric drive/turbine fracturing systems and gas turbine power generation equipment, to meet the demand in North America [1] - The company can adjust production capacity across multiple domestic and international locations based on actual order conditions, enhancing delivery capabilities [1]

Core Viewpoint - As of January 20, 2026, the total number of shareholders for Jerry Holdings (002353) is 40,452, with 4,893 being institutional investors [1] Group 1 - The total number of shareholders is 40,452 [1] - The number of institutional investors is 4,893 [1]

Group 1 - The core viewpoint of the article highlights the performance and adjustments of the fund managed by Zhu Shaoxing, with a net asset value of 22.484 billion yuan as of Q4 2025 [1] - The fund's performance during the reporting period shows a return of 1.12% for both the A/B and D classes, while the C class returned 0.91%, compared to a benchmark return of -0.09% across all classes [1][2] - The top ten holdings of the fund include notable companies such as Ningbo Bank, Jerry Holdings, CATL, and Kweichow Moutai, indicating a diversified investment strategy [1][2] Group 2 - Zhu Shaoxing's recent adjustments in the portfolio include a reversal on Zijin Mining, which was sold off in the first half of 2025 and repurchased in the second half, now ranking as the seventh largest holding [2] - The fund has reduced its exposure to the new energy vehicle sector, with companies like Luxshare Precision exiting the top ten holdings, while increasing its stake in CATL [2] - The analysis indicates that the current monetary policy remains accommodative, and the fiscal policy is actively supporting the market, leading to improved investor risk appetite [3] Group 3 - The A-share market is noted to have seen a significant increase in overall valuations, yet it remains within a reasonable range in a long-term cycle, suggesting continued attractiveness of equity assets [3] - The focus on selecting stocks with strong corporate governance and management is emphasized as a strategy for future value creation, aligning with the fund's growth-oriented investment approach [3]

Core Viewpoint - The report highlights the performance and asset allocation of the fund managed by Zhu Shaoxing, indicating a strategic shift in investment focus and a positive outlook on certain sectors amid a changing economic environment [1][3]. Fund Performance - As of the end of Q4 2025, the net asset value of the fund managed by Zhu Shaoxing is 22.484 billion yuan [1]. - The performance of various fund classes during the reporting period shows: - Fund Class A/B: 1.12% return, benchmark return: -0.09% - Fund Class C: 0.91% return, benchmark return: -0.09% - Fund Class D: 1.12% return, benchmark return: -0.09% [1]. Top Holdings - The top ten holdings of the fund include: 1. Ningbo Bank (002142.SZ) - 6.25% of net asset value 2. Jerry Holdings (002353.SZ) - 4.98% 3. CATL (300750.SZ) - 4.90% 4. Kweichow Moutai (600519.SH) - 4.90% 5. Chuanfeng Power (603129.SH) - 3.70% 6. Zhongchuang Zhiling (601717.SH) - 2.84% 7. Zijin Mining (601899.SH) - 2.53% 8. Ruifeng New Materials (300910.SZ) - 2.52% 9. Guocer Materials (300285.SZ) - 2.19% 10. Xugong Machinery (000425.SZ) - 2.05% [2]. Investment Strategy - Zhu Shaoxing indicates a clear adjustment in investment strategy, with a notable reversal in the position of Zijin Mining, which was sold off in the first half of 2025 and repurchased in the second half [2]. - The fund has reduced its holdings in the new energy sector, with companies like Luxshare Precision exiting the top ten holdings, while increasing its position in CATL during Q4 2025 [2]. - The report emphasizes a favorable economic outlook, with a focus on sectors such as communications, electronics, and non-ferrous metals, which are expected to perform well [3]. Market Outlook - The current A-share market is described as having risen in valuation but still within a reasonable range for long-term investment [3]. - The report suggests that equities remain attractive compared to other asset classes, and emphasizes the importance of selecting individual stocks with strong corporate governance and management to maximize future value creation [3].

Group 1 - The oil sector is experiencing fluctuations, with funds entering the market at lower prices, as evidenced by the net subscription of 23 million units for the Penghua Oil ETF (159697) [1] - A cold wave in the U.S. has led to a significant increase in natural gas prices [1] - From 2022 to 2025, 67% (195 cities) of cities at the prefecture level and above in China have implemented residential pricing adjustments, with an increase of 0.22 yuan per cubic meter [1] Group 2 - The price difference for leading city gas companies in 2024 is projected to be between 0.53 and 0.54 yuan per cubic meter, with a reasonable distribution fee expected to exceed 0.6 yuan per cubic meter, indicating a potential 10% recovery space [1] - Cost optimization for city gas companies is expected due to relaxed supply conditions, and the pricing mechanism is being refined while demand is anticipated to increase [1] - There is a focus on companies with quality long-term contracts, flexible scheduling, and long-term cost advantages, as well as the importance of energy self-sufficiency due to increased uncertainty in U.S. gas imports [1] Group 3 - As of January 23, 2026, the National Oil and Gas Index (399439) shows mixed performance among its constituent stocks, with Intercontinental Oil and Gas leading at a 3.29% increase, followed by Fuan Energy at 2.73% and Hupoo Co. at 1.96% [1] - The latest price for the Penghua Oil ETF (159697) is 1.29 yuan, which closely tracks the National Oil and Gas Index [1] - The top ten weighted stocks in the National Oil and Gas Index (399439) as of December 31, 2025, include major companies such as China National Petroleum, Sinopec, and China National Offshore Oil, collectively accounting for 67.11% of the index [2]