Investment Rating - The report maintains a "Buy" rating for the mechanical industry [6] Core Insights - The mechanical sector outperformed the market, with significant increases in engineering machinery and photovoltaic equipment [3][12] - January sales of earth-moving machinery exceeded expectations, with excavator sales reaching 18,708 units, a year-on-year increase of 49.5% [4] - The merger of SpaceX and xAI is expected to accelerate the development of space photovoltaic applications, benefiting domestic photovoltaic equipment manufacturers [5][7] - The upcoming launch of Tesla's Optimus V3 humanoid robot is anticipated to drive demand for core components in the robotics sector [8] Market Performance - The mechanical industry index rose by 0.4% in the past week, while the Shanghai Composite Index fell by 1.3% [3][12] - Year-to-date, the mechanical industry has increased by 6.7%, with photovoltaic processing equipment leading at a 50.4% increase [13] Segment Summaries Engineering Machinery - January sales of excavators and loaders were the highest for the same period since 2021, driven by high commodity prices and increasing demand from emerging markets [4] - The report suggests that domestic and international demand will continue to resonate, leading to accelerated performance recovery for major manufacturers [9] Photovoltaic Processing Equipment - Tesla's expansion in solar manufacturing and the merger of SpaceX and xAI are expected to significantly boost orders for domestic photovoltaic equipment manufacturers [5][7] - The report highlights the potential for performance recovery in the photovoltaic processing equipment sector [9] Robotics - The anticipated production of Tesla's Optimus V3 humanoid robot is expected to significantly increase demand for key components in the robotics supply chain [8][10] - The report emphasizes the growth potential in the humanoid robotics sector, driven by increased investment and production capabilities [10]

Investment Rating - The industry investment rating is maintained at "Overweight" [3] Core Insights - The industry is expected to undergo a rapid transformation and development period over the next five years, driven by the "High-Quality Development Implementation Plan for Traditional Chinese Medicine Industry (2026-2030)" released by the Ministry of Industry and Information Technology and other departments [9][10] - The market performance of the traditional Chinese medicine sector has shown resilience, with a 2.56% increase last week, outperforming other sub-sectors in the pharmaceutical industry [5][6] - The price index of traditional Chinese medicinal materials has seen a slight increase due to rising demand for tonic herbs, with a total index of 228.71 points, up 0.3% week-on-week [8] Market Performance - The traditional Chinese medicine sector's PE (ttm) is 27.49X, with a week-on-week increase of 0.68X, while the PB (lf) is 2.31X, also up by 0.06X [7] - The relative performance over the past 12 months shows a decline of 18% compared to the CSI 300 index, while the absolute return remains flat [5] Company Performance - Top-performing companies in the sector include Zhen Dong Pharmaceutical, Hansen Pharmaceutical, and Te Yi Pharmaceutical, while underperformers include Jilin Aodong and Zhenbao Island [6][20] Investment Recommendations - The report suggests focusing on three main investment themes: 1. Price governance, where companies with competitive advantages are expected to achieve volume growth through price reductions [11] 2. Consumption recovery, driven by macroeconomic improvement and increased health awareness among the aging population [12] 3. State-owned enterprise reform, which is anticipated to yield performance growth through efficiency improvements [12] - Recommended stocks include Zuo Li Pharmaceutical and Yi Ling Pharmaceutical, with a focus on companies with strong R&D capabilities and unique products [12]

Investment Rating - The industry investment rating is maintained as "Buy" [2] Core Insights - The report highlights that the recent launch of second-hand housing acquisition in Shanghai is beneficial for stabilizing housing price expectations [6] - In major cities, there has been a decline in both new and second-hand housing transactions, with significant year-on-year decreases noted [7] - The report suggests that the second-hand housing market in key cities like Beijing and Shanghai shows signs of price stabilization, indicating potential investment opportunities [8] Summary by Sections Recent Industry Performance - Over the past month, the relative return of the real estate sector compared to the CSI 300 index is -2%, while the absolute return is 2% [3][4] - The report notes a 14% absolute return over the past 12 months [4] Transaction Trends - In Beijing, the average daily transaction of second-hand homes was 501 units, while new homes averaged 75 units, reflecting a year-on-year decline of 4% and 23% respectively [5] - In Shanghai, the average daily transaction for second-hand homes was 599 units, and new homes were 299 units, with a year-on-year decline of 6% and 4% respectively [5] - Shenzhen reported a significant drop in new home transactions, with a year-on-year decline of 69% [5] Policy Developments - The report discusses a new policy from the Construction Bank to support the acquisition of second-hand homes for rental housing projects in Shanghai, targeting older properties with specific price and size criteria [6] - This policy aims to stabilize price expectations in the second-hand market, particularly for lower-priced properties, which constitute a significant portion of transactions [6] Investment Recommendations - The report recommends focusing on leading real estate companies with land reserves in core cities and those that are positioned to benefit from the increasing share of second-hand transactions [9] - Companies like Poly Developments and real estate agencies such as I Love My Home are highlighted as potential beneficiaries of market recovery [9]

Investment Rating - The report maintains a "Buy" rating for the medical services industry, suggesting a positive outlook for investment opportunities in this sector [10][64]. Core Insights - The medical services sector has shown resilience, with a recent increase in the sector's PE ratio to 34.43X and PB ratio to 3.49X, indicating a positive trend in valuation metrics [4][29]. - The approval of internet medical first diagnosis trials in Beijing marks a significant regulatory breakthrough, potentially accelerating the online medical service process and providing new market opportunities for private medical institutions [5][62][63]. - The report highlights the importance of digital regulation and standardization in enhancing service capabilities for private medical institutions, particularly in consumer healthcare sectors like pediatrics and dermatology [5][62]. Summary by Sections Industry Performance - The pharmaceutical and biological sector increased by 0.14%, ranking 15th among 31 primary industries, outperforming the Shanghai Composite Index by 1.47 percentage points [2][12]. - The medical services sub-sector reported a 1.31% increase, closing at 6827.17 points, with a year-to-date performance of 41.41% [24][27]. Company Performance - Top-performing companies in the medical services sector include Meidisi (+18.0%), Tongce Medical (+8.1%), and Nuosige (+5.7%), while underperformers include Haoyuan Pharmaceutical (-6.2%) and Baicheng Pharmaceutical (-4.5%) [3][27]. Valuation Metrics - The medical services sector's PE ratio has increased by 0.56X from the previous week, while the PB ratio has risen by 0.06X, indicating a strengthening in market confidence [4][29]. Investment Recommendations - The report suggests focusing on high-growth areas such as ADC CDMO and peptide CDMO in the pharmaceutical outsourcing sector, as well as companies like WuXi AppTec and Haoyuan Pharmaceutical [10][64]. - It also recommends monitoring private medical service providers with compliance experience, such as Aier Eye Hospital, as they are expected to benefit from the evolving regulatory landscape [5][64].

Industry Overview - The food and beverage industry experienced a rise of 1.56% from January 26 to January 30, 2026, outperforming the Shanghai Composite Index by 1.48 percentage points [2][3] - The industry is currently at a historical low in terms of valuation, with a PE ratio of 21X, ranking 24th among the primary industries [3] Subsector Performance - Within the food and beverage sector, the performance varied, with liquor increasing by 3.86% and meat products by 0.52%, while other alcoholic beverages saw a slight decline of 0.01% [2] - The valuation of various subsectors shows that other alcoholic beverages have the highest PE at 54X, while liquor is at 18X, indicating a potential for valuation recovery [3] Market Dynamics - Moutai's prices have shown signs of recovery, with the wholesale price for the original Moutai bottle rising by 9.97% to 1710 RMB, driven by supply-demand dynamics and seasonal consumption trends [4] - The overall valuation of the liquor sector is at a historical low, suggesting a significant margin of safety and potential for recovery as market conditions improve [4][5] Investment Recommendations - The report suggests focusing on three main investment lines: industry leaders with stable demand, companies innovating in products and channels, and undervalued segments within the consumer goods sector [6] - Specific companies to watch include Guizhou Moutai, Shanxi Fenjiu, Anji Food, Andeli, Yanjing Beer, and Yili Group, with a maintained "buy" rating for the food and beverage industry [6]

Industry Overview - The real estate industry is experiencing a mixed performance in January, with second-hand housing transactions showing strong growth while new housing transactions remain weak [2][6] - In Beijing, second-hand housing transactions increased by 397% year-on-year, with an average of 578 units sold daily, while new housing transactions rose by 565% to 85 units [2] - Shanghai reported a significant increase in second-hand housing transactions, with a year-on-year growth of 806%, averaging 797 units sold daily, while new housing transactions increased by 525% [2] - Shenzhen's second-hand housing transactions decreased by 24.2% year-on-year, with an average of 181 units sold daily, and new housing transactions fell by 69% [3] Transaction Trends - Nationwide, the transaction volume for second-hand housing in 30 major cities showed a year-on-year increase of 309%, but a decline of 7.7% when excluding the Spring Festival effect [5] - In January, the cumulative transaction volume for second-hand housing increased by 12% year-on-year, indicating a recovery trend influenced by the Spring Festival timing [5] - The new housing transaction area in major cities saw a year-on-year increase of 109% in the last week of January, but a decline of 26.66% when adjusted for the Spring Festival [4] Investment Recommendations - The report suggests a "buy" rating for the real estate sector, highlighting the potential for investment opportunities as the negative factors diminish [6] - It is recommended to focus on leading real estate companies with land reserves in core cities and those targeting high-end improvement products, such as Poly Developments [6] - Additionally, leading intermediary firms like I Love My Home, which benefit from the increasing proportion of second-hand housing transactions, are expected to see valuation recovery [6]

Investment Rating - The report maintains an "Overweight" rating for the medical consumables industry and offline pharmacy sector [5][6]. Core Insights - The medical consumables market is expected to recover, with positive performance anticipated for innovative high-value consumables due to factors such as aging population, increased demand for medical services, and improved domestic production rates [3]. - The offline pharmacy industry is transitioning from a period of rapid expansion to a focus on operational efficiency and service value, driven by policy guidance that encourages industry consolidation [4]. Summary by Sections Medical Consumables Industry - The market is experiencing a recovery in confidence, with expectations for improved performance in high-value consumables [3]. - Investment focus areas include: 1. Performance reversal in segments like orthopedic consumables, exemplified by companies such as Weigao Orthopedics [5]. 2. Increased market penetration of low-penetration consumables, particularly in high-end innovative fields [5]. 3. Expansion into overseas markets, with orthopedic and interventional consumables leading the way [5]. Offline Pharmacy Industry - The industry is set for accelerated consolidation, moving towards high-quality development characterized by operational efficiency and resource optimization among leading brands [4]. - Key companies to watch include those with advantages in compliance, supply chain, and digital management, such as Yifeng Pharmacy [6]. Market Performance - The medical consumables sector reported a 17.02% increase in the past year, indicating a strong recovery compared to the broader market [17]. - The report highlights the performance of leading companies in the medical consumables sector, with significant growth observed in companies like Hualan Biological Engineering and ZhenDe Medical [20][25].

Industry Overview - The banking sector shows signs of recovery in corporate loan growth, with a year-on-year increase of 8.9% in corporate loans by the end of Q4 2025, reflecting a 0.7 percentage point rise from the previous quarter [2] - Infrastructure and service industries are experiencing a rebound in medium to long-term loans, with industrial medium to long-term loans growing by 8.4%, which is 2.2 percentage points higher than the overall loan growth [3] - The growth in loans for infrastructure-related industries reached 6.9%, while service industry loans increased by 7.8%, indicating a positive trend in these sectors [3] Consumer Loans - Household loans showed a modest year-on-year growth of 0.5% by the end of Q4 2025, with operational loans contributing significantly at a 4.0% increase [4] - Consumer loans, excluding personal housing loans, also saw a slight increase of 0.7%, suggesting a stable but weak growth in retail lending [4] Investment Recommendations - With fiscal expansion and the effectiveness of policy tools, corporate loan issuance is expected to improve, leading to a potential "New Year" boost in bank credit [5] - The report highlights the significant value of high dividend yields in bank stocks, suggesting that under a balanced market style, there is potential for valuation recovery [5] - Recommended banks include major state-owned banks and those with strong operational flexibility, such as Industrial and Commercial Bank of China, Bank of China, and others [5]

Investment Rating - Industry rating: Buy (maintained) [8] Core Insights - The central price of copper is determined by macroeconomic factors (β) and real demand (α), where the price "central" is not influenced by short-term supply and demand but rather by the macro environment and sustainable real demand [2] - Macroeconomic factors (β) include real interest rates, dollar liquidity, global credit expansion, and risk appetite, which act as amplifiers for all commodities, influencing market valuations [3] - Real demand (α) emphasizes long-term trends and sustainability, focusing on indicators such as grid investment, energy transition, and manufacturing capital expenditure, which are not influenced by short-term financial conditions [4] - The supply side of copper is characterized by long cycles and constraints, making it a slow variable that does not significantly affect the price central [5] Market Dynamics - Recent declines in copper prices are driven by macroeconomic factors (β) rather than real demand (α), indicating a market-wide revaluation rather than a fundamental deterioration in any specific sector [6] - The current market phase is transitioning from a period of β shocks to a phase where the impact of these shocks is expected to diminish, leading to a reassessment of real demand [11] Price Outlook - Short-term trading logic is influenced by expectations of Federal Reserve leadership changes and tightening liquidity, suggesting caution in declaring a market bottom [12] - The medium-term outlook for copper prices will depend on whether real demand (α) remains intact, with key indicators being global grid investment and capital expenditure in energy and manufacturing [12] Investment Recommendations - Current strategy should focus on structural defense under β pressure while waiting for a revaluation of α, with a preference for aluminum over copper in the short term [13][15] - For copper, patience is advised, with a focus on high-certainty domestic companies over more volatile overseas firms, and a preference for mining companies over processing firms [15]

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - As of January 31, 2026, the total number of funds in the market increased by 104 to 13,722, while the total net asset value decreased by 452.4 billion yuan to 37.22 trillion yuan. Growth - type funds outperformed value - type funds in January 2026 [3][7]. - As of January 31, 2026, there were 1,430 ETFs in the Shanghai and Shenzhen stock markets, an increase of 28 from the previous period. The total asset management scale decreased by 555.748 billion yuan to 5.46 trillion yuan, and the total share decreased by 92.652 billion shares to 3.28 trillion shares. Commodity - type ETFs had a higher overall return in January, while bond - type ETFs had the worst performance [4][18]. - The industry ETF rotation strategy based on main funds and the PB - ROE framework both achieved positive excess returns compared to the CSI 300 Index in January 2026 and since 2023 [5][40][50]. 3. Summary According to Relevant Catalogs 3.1 Fund Market Tracking 3.1.1 Market Overview - As of January 31, 2026, the number of funds increased by 104, and the total net asset value decreased by 452.4 billion yuan. Hybrid, bond, and stock - type funds had the highest proportion in terms of quantity, while money - market, bond, and stock - type funds had the highest proportion in terms of scale [7]. - In January 2026, the number of stock - type funds increased by 49, and the scale of stock - type and bond - type funds decreased by 552.001 billion yuan and 88.818 billion yuan respectively [11]. 3.1.2 Fund Performance - From January 1 to 31, 2026, the returns of value, balanced, and growth fund indexes were 3.92%, 6.10%, and 7.02% respectively, all outperforming the CSI 300 Index. Growth - type funds outperformed value - type funds [13]. - The differences among large - cap, mid - cap, and small - cap fund indexes were small in January 2026, with mid - cap funds slightly outperforming large - cap and small - cap funds, and all outperforming the CSI 300 Index [13]. - The median return of all funds in January 2026 was 2.53%, and 94.84% of funds achieved positive returns. The top - performing fund was SDIC UBS Silver Futures A, with a gain of 61.60% in both January and year - to - date [16]. 3.2 ETF Market Tracking 3.2.1 ETF New Products - In January 2026, 33 ETFs were newly listed, including 3 science - and - technology innovation board chip ETFs and 30 other stock - type ETFs. 27 ETFs were newly established, with a total issuance scale of 16.57 billion yuan [20]. 3.2.2 ETF Product Classification Performance - Commodity - type ETFs had a median return of 18.61% in January, bond - type ETFs had the lowest median return of 0.25%, and stock - type ETFs had a median return of 4.74%, outperforming cross - border ETFs. Stock - type ETFs had the highest internal deviation in January [4][24]. - Among stock - type ETFs in January, gold - related and mining ETFs performed well, while bank - related ETFs performed poorly. The average share change of stock - type ETFs was a decrease of 108.9666 million shares, with chemical and software ETFs having significant share increases and CSI 300 and SSE 50 ETFs having significant share decreases [25]. - Among bond - type ETFs in January, the convertible bond ETF had the highest increase of 5.90%, and the science - innovation bond ETF had a decrease of 0.01%. As of January 31, 2026, the Haifutong CSI Short - Term Financing ETF had the largest scale of 70.223 billion yuan [29]. - Among cross - border ETFs in January, the China - South Korea Semiconductor ETF had the highest increase of 45.09%, and the Hong Kong Stock Connect Medical ETF had the highest decrease of 4.20%. The year - to - date performance was similar [31]. - Among commodity - type ETFs in January, the gold ETF had an increase of 19.11%, and the soybean meal ETF had the smallest increase of 1.69%. As of January 31, 2026, the Huaan Gold ETF had the largest scale of 93.985 billion yuan [35]. 3.3 ETF Strategy Tracking 3.3.1 Industry ETF Rotation Based on Main Funds - The strategy focused on non - ferrous metals, non - banking finance, and steel in January 2026. The cumulative return in January 2026 was 9.01%, with an excess return of 7.36% compared to the CSI 300 Index. Since 2023, the cumulative return was 61.84%, with an excess return of 40.28% compared to the CSI 300 Index [5][40][42]. 3.3.2 Industry ETF Rotation under the PB - ROE Framework - The strategy focused on communication, agriculture, forestry, animal husbandry, and fishery, and transportation in January 2026. The cumulative return in January 2026 was 2.83%, with an excess return of 1.18% compared to the CSI 300 Index. Since 2023, the cumulative return was 29.03%, with an excess return of 7.47% compared to the CSI 300 Index [5][50][51]. 3.4 Investment Recommendations - For the industry preference of main funds in February 2026, the steel, coal, and non - ferrous metal industries are favored, and the corresponding ETFs are their industry ETFs. - Based on the industry PB - ROE situation and supplementary indicators, the ETF rotation strategy under the PB - ROE framework recommends paying attention to the non - ferrous metal, transportation, and public utilities industries in February, and the corresponding ETFs are their industry ETFs [6][57].