Market Overview - The major indices experienced narrow fluctuations, with small-cap stocks undergoing significant adjustments, leading to a 3.90% weekly decline in the CSI 2000 index [8][14] - The average daily trading volume for stocks decreased significantly by 18.64% compared to the previous week, amounting to 12,607.77 billion yuan [8][14] - Commodity prices showed mixed trends, with iron ore and rebar continuing to decline, while COMEX copper reached a historical high before retracing, and COMEX gold surged to a new high of 3,124.4 USD [8][14] Active Equity Funds - In the active equity fund category, the top performers in the deep undervaluation strategy included Guotai Medical Health A (1.69%), Nuoan Strategy Selected (1.44%), and Minsheng Jia Yin Core Driven A (1.30%) [2] - The high growth strategy saw top performers such as Jiashi Huron Selected A (7.20%), Huian Yuyang Three-Year Regular Open (3.96%), and Huian Industry Leader (3.54%) [2] - The high-quality strategy's leading funds were Yifangda Medical Biology A (6.34%), ICBC Xingrui One-Year Holding A (5.43%), and Zhongou Medical Innovation A (4.81%) [2] Fund Positioning - Recent data indicated that active equity funds significantly increased their positions in the electronics (0.17%) and computer (0.52%) sectors, while reducing their holdings in basic chemicals (0.20%) and electric equipment and new energy (0.21%) [3] - Over the past month, notable increases in positions were observed in the computer (0.52%) and comprehensive finance (0.57%) sectors, while reductions were seen in electric equipment and new energy (0.81%) and telecommunications (0.51%) [3] Market Style - The growth style index experienced a weekly decline of 2.72%, with trading volume and turnover rate reaching near four-week lows of 47.23% and 3.86%, respectively [13][17] - The consumer style index was the strongest performer this week, with a rise of 0.28% and a trading volume share increasing to a near four-week high of 13.16% [13][17] - The financial style index fell by 0.16%, with its trading volume share at a near four-week low of 5.20% [13][17]

Quantitative Models and Construction Methods 1. Model Name: RSI (Relative Strength Index) - **Model Construction Idea**: RSI is used to measure the relative strength of price movements over a specific period, identifying overbought or oversold market conditions[2] - **Model Construction Process**: - The formula for RSI is: $ RSI = 100 - \frac{100}{1 + RS} $ where $ RS = \frac{\text{Average Gain over N periods}}{\text{Average Loss over N periods}} $ - RSI is calculated over a 12-day period in this report[2] - RSI > 70 indicates an overbought market, while RSI < 30 indicates an oversold market[2] - **Model Evaluation**: RSI is a widely used technical indicator for short-term market trend analysis[2] 2. Model Name: Net Purchase (Net Subscription) - **Model Construction Idea**: This model calculates the net subscription amount of ETFs to assess fund inflows or outflows[2] - **Model Construction Process**: - The formula for Net Purchase is: $ NETBUY(T) = NAV(T) - NAV(T-1) \times (1 + R(T)) $ where: - $ NETBUY(T) $ is the net subscription amount on day T - $ NAV(T) $ is the net asset value on day T - $ R(T) $ is the return on day T[2] - **Model Evaluation**: This metric provides insights into investor sentiment and fund flow dynamics[2] --- Model Backtesting Results RSI Model - RSI values for various ETFs range between 35.46 and 68.26, with specific examples including: - **华泰柏瑞沪深300ETF**: RSI = 48.66[4] - **南方中证500ETF**: RSI = 46.82[4] - **华夏恒生科技ETF**: RSI = 46.99[4] Net Purchase Model - Net purchase values for ETFs vary significantly, with examples including: - **华泰柏瑞沪深300ETF**: Net Purchase = -1.73 billion[4] - **南方中证500ETF**: Net Purchase = 2.58 billion[4] - **华夏恒生科技ETF**: Net Purchase = -1.14 billion[4] --- Quantitative Factors and Construction Methods 1. Factor Name: Institutional Holding Ratio - **Factor Construction Idea**: Measures the proportion of ETF holdings by institutional investors to gauge institutional participation[3] - **Factor Construction Process**: - Institutional holding ratio is derived from the latest annual or semi-annual reports of ETFs, excluding holdings by linked funds[3] - **Factor Evaluation**: This factor reflects the confidence and involvement of institutional investors in specific ETFs[3] --- Factor Backtesting Results Institutional Holding Ratio - Institutional holding ratios for various ETFs include: - **华泰柏瑞沪深300ETF**: 79.40%[4] - **南方中证500ETF**: 75.79%[4] - **华夏恒生科技ETF**: 43.75%[4]

Investment Rating - The report maintains a rating of "Buy" for the company, with a target price of 7.04 HKD, reflecting a potential upside based on projected growth [4][26]. Core Insights - The company achieved a total revenue of 3.34 billion RMB in 2024, with a significant increase in the revenue share from its core imaging and design products, which accounted for 62.4% of total revenue, reaching 2.09 billion RMB, a year-on-year growth of 57.1% [1][13]. - The overall gross profit for 2024 was 2.29 billion RMB, resulting in a gross margin of 68.7%, an increase of 7.24 percentage points compared to the previous year [1][13]. - The adjusted net profit attributable to the parent company grew by 59.2% year-on-year, exceeding the previously announced expectations [1][13]. Summary by Sections 1. Imaging and Design Core Competence - The company has enhanced its core capabilities in imaging and design, forming a combination of image, video, and design tools, with the imaging and design product revenue growing significantly [1][13][17]. - The advertising business also saw a revenue increase of 12.5%, contributing 25.5% to total revenue, while the beauty industry solutions revenue decreased by 32.4% [1][13]. 2. AI-Driven Overseas Market Expansion - The company increased its R&D expenses by 43.3% to 910 million RMB in 2024, focusing on AI model training and product development [3][19]. - The monthly active users (MAU) from overseas markets reached 94.51 million, a year-on-year growth of 21.7%, indicating successful user acquisition strategies [2][19]. 3. Profit Forecast and Investment Recommendations - Revenue projections for 2025 to 2027 are estimated at 4.05 billion RMB, 4.85 billion RMB, and 5.65 billion RMB, respectively, with a consistent growth rate [6][23]. - The gross margin is expected to continue increasing, reaching 71%, 73%, and 74% over the next three years, driven by the high-margin imaging and design products [6][26].

Investment Rating - The report maintains an "Outperform" rating for the automotive industry [1] Core Insights - The report highlights the robust growth of Chinese automotive exports, particularly in the electric vehicle (EV) segment, with a notable increase in market penetration in Australia [3][13] - It emphasizes the potential for Chinese brands to capture a significant market share in Australia, projecting that by 2030, Chinese brands could achieve nearly 30% market share [3][24] Summary by Sections 1. Tracking the Overseas Market for Chinese Automakers - In January and February 2025, China's passenger car exports reached 730,000 units, a year-on-year increase of 11.7%, with new energy vehicle (NEV) exports at 257,000 units, up 47.6% [3][13] - The penetration rate of NEVs in exports reached 33.9% in February 2025, indicating strong demand [14][16] - Leading companies in overseas sales include SAIC and Chery, with BYD showing rapid growth in international markets [19][20] 2. Analysis of the Australian Automotive Market - The Australian automotive market is mature, with high vehicle ownership and stable demand, despite a slight decline in sales in early 2025 [28][29] - Consumers prioritize durability and budget when purchasing vehicles, providing opportunities for new brands to enter the market [45][50] - The market is increasingly leaning towards NEVs due to stricter emissions standards and rising fuel prices [3][24] 3. Forecast for the Australian Automotive Market - By 2030, it is expected that Chinese brands will capture close to 30% of the Australian market, with total sales potentially reaching nearly 400,000 units [3][24] - The report identifies several companies with high success probabilities in the global market, including BYD, SAIC, Great Wall Motors, and others [3][24] 4. Overview of Chinese Automakers' Overseas Production Bases - Chinese automakers are accelerating the establishment of overseas production bases to support global strategies and meet international demand [22] - These bases enhance local supply capabilities, reduce delivery times, and improve brand recognition in foreign markets [22][23]

Quantitative Factors and Models Quantitative Factors and Construction Methods 1. **Factor Name**: RSI (Relative Strength Index) **Construction Idea**: RSI is used to measure the relative strength of price movements over a specific period, identifying overbought or oversold market conditions[3] **Construction Process**: - Formula: $ RSI = 100 - \frac{100}{1 + RS} $ - Where $ RS = \frac{\text{Average Gain over N periods}}{\text{Average Loss over N periods}} $ - In this report, the RSI is calculated over a 12-day period[3] **Evaluation**: RSI is a widely used momentum indicator that provides insights into market sentiment and potential price reversals[3] 2. **Factor Name**: Net Subscription (NETBUY) **Construction Idea**: This factor measures the net inflow or outflow of funds into an ETF, reflecting investor sentiment and demand[3] **Construction Process**: - Formula: $ NETBUY(T) = NAV(T) - NAV(T-1) \times (1 + R(T)) $ - Where $ NAV(T) $ is the net asset value on day T, and $ R(T) $ is the return on day T[3] **Evaluation**: This factor is useful for understanding fund flows and liquidity dynamics in the ETF market[3] Quantitative Models and Construction Methods No specific quantitative models were mentioned in the report --- Backtesting Results of Factors 1. **RSI Factor**: - RSI values for various ETFs range from approximately 44.61 to 80.46, with higher values indicating stronger momentum or potential overbought conditions[5][8] 2. **Net Subscription Factor**: - Net subscription values vary significantly across ETFs, with examples such as -11.00 billion for "易方达沪深300ETF" and 3.95 billion for "嘉实中证海外中国互联网30ETF"[5][8] --- Backtesting Results of Models No backtesting results for models were provided in the report

Investment Rating - The report rates the industry as "Outperform the Market" for the first time [5] Core Insights - The Japanese IP industry has successfully built a diverse IP matrix that mitigates the risks associated with the decline of single IP popularity, creating a combination of long-lasting classic IPs and a foundation of long-tail IPs [1][4] - Companies like Bandai and Tomy have developed cross-domain, cross-media, and cross-audience IP matrices, allowing them to maximize IP value and extend the lifecycle of their products [2][3] - The report emphasizes the importance of full industry chain integration and deep involvement in IP development to enhance control over the IP development chain and increase potential for premium pricing [4][46] Summary by Sections 1. IP Industry Chain: From Creation to Commercialization - The IP retail industry chain consists of three main segments: upstream IP creation, midstream product design/operation, and downstream retail [14] - Japan's unique production committee model allows for risk sharing and resource integration, significantly reducing the financial burden on individual companies [16][19] - The Japanese IP market is robust, with a total market size of 1.6 trillion yen in 2023, where peripheral products contribute 700.8 billion yen, accounting for 43.1% of total revenue [22] 2. IP Value Transformation: Product Power and Content Complementation Drive Growth - The output of IP product forms is crucial for maximizing IP value [2.1] - Bandai's revenue reached 1.1 trillion yen in the 2024 fiscal year, with a compound annual growth rate (CAGR) of 12.3% over three years [26] - Tomy, as Japan's second-largest toy manufacturer, reported a revenue of 208.3 billion yen in the 2024 fiscal year, with a year-on-year growth of 11.3% [36] 3. Domestic IP Development - The report highlights the structural opportunities for domestic IP in China, where reliance on foreign IP remains significant [48] - Companies like Pop Mart are diversifying their IP sources, with 85 IPs currently in their portfolio, including both self-developed and licensed IPs [55] - The growth of domestic animation films and the emergence of new IPs indicate a vibrant landscape for local IP development [51]

Market Liquidity Overview - R007 increased from 1.81% to 1.83%, a rise of 2.05 basis points; DR007 rose from 1.8066% to 1.8121%, up by 0.55 basis points. The spread between R007 and DR007 increased by 1.5 basis points [9][12] - The net inflow of funds this week was -9.248 billion, an increase of 22.927 billion from the previous week, with total fund supply at 33.199 billion and demand at 42.446 billion. Fund supply increased by 24.025 billion, with net financing purchases up by 6.140 billion and ETF net subscriptions increasing by 19.231 billion [12][16] Industry Sector Liquidity Tracking - Most industries showed an upward trend in returns, with significant increases in the food and beverage, coal, and non-ferrous metals sectors, which rose by 6.24%, 4.97%, and 3.33% respectively. Conversely, the computer and electronics sectors experienced declines of 1.20% and 0.56% [18][22] - Nine sectors, including banking and retail, saw negative net purchases of leveraged funds, while the remaining sectors experienced net inflows. Notably, the non-ferrous metals and electronics sectors had significant net purchases of 3.353 billion and 2.477 billion respectively [22][27] Style Sector Liquidity Tracking - The average daily trading volume of growth style decreased by 4.02%, while other styles saw increases, particularly the cyclical style, which rose by 2.25%. The main funds in the stock connect reduced holdings in both stable and growth styles, with the most significant reduction in growth style [3][11]

Investment Rating - The report indicates a positive outlook on government bonds as a support for social financing, with a focus on the implementation of more proactive fiscal policies [9]. Core Insights - In February 2025, the social financing scale increased by 22,375 billion yuan, which is 7,416 billion yuan more than the same period last year. The stock growth rate of social financing recorded 8.2%, an increase of 0.2 percentage points from the previous value. Government bond financing remains strong, while demand for loans from residents and enterprises is insufficient [9]. - The government work report emphasizes a total new debt scale of 11.86 trillion yuan for the year, an increase of 2.9 trillion yuan compared to the previous year, suggesting that government bond financing may continue to support social financing [9]. - In February, new RMB loans amounted to 10,100 billion yuan, with the residential sector performing better than the enterprise sector. However, short-term loans for residents recorded a decrease of 2,741 billion yuan, indicating a slow recovery in consumption [11]. Summary by Sections Government Bonds Supporting Social Financing - The report highlights that government bonds increased by 16,939 billion yuan in February, which is 10,928 billion yuan more than the previous year. The proactive fiscal policy is expected to bolster social financing [9]. - The new RMB loans in February were 6,528 billion yuan, a decrease of 3,245 billion yuan year-on-year, while foreign currency loans decreased by 281 billion yuan [9]. M1 Growth Rate - The M1 year-on-year growth rate recorded 0.1% in February, which was below expectations, possibly due to the impact of the Spring Festival. The M2 growth rate remained stable at 7.0%, indicating a high willingness to save among residents [14]. - The M2-M1 gap expanded to 6.9%, reflecting a need for further confidence in the real economy [14].

Market Overview - The report highlights the valuation situation of major indices, with the PE valuation percentile of the CSI 500 and CSI 2000 at 100.00%, while the Nikkei 225 has the lowest at 7.38% [1][12] - In terms of returns, the beauty care, food and beverage, and coal industries ranked highest with returns of 8.18%, 6.19%, and 4.84% respectively, while the computer, machinery, and electronics sectors had lower returns of -1.36%, -0.68%, and -0.62% [1][13] ETF Fund Flow - Industry theme ETFs saw the highest net inflow of funds at 120.82 billion, while broad-based ETFs experienced the largest net outflow at -135.44 billion [2][26] - From the perspective of tracked indices, Hong Kong stock ETFs had the highest net inflow of 64.50 billion, while the CSI 300 ETF had the lowest net inflow at -70.02 billion [2][26] - The technology sector ETFs had the highest net inflow of 67.78 billion, while the financial real estate sector ETFs had the lowest net inflow at -20.65 billion [2][29] - The semiconductor and artificial intelligence ETFs had the highest net inflows of 34.91 billion and 19.29 billion respectively, while non-bank and bank ETFs had the lowest net inflows of -18.06 billion and -3.06 billion [2][29] ETF New Issuance and Listing - During the sample period, a total of 5 new funds were established and 6 funds were listed [3]

Investment Rating - The report assigns an "Accumulate" rating for the company, with a target price of 34.8 CNY over the next six months [6][9]. Core Insights - The company has established a clear three-tier business layout based on precision machining, focusing on turbocharger components, new energy vehicle parts, and linear motion components, demonstrating robust operational quality [1][19]. - The company has strong cash flow from sales and operations, indicating high revenue quality and stable business performance [1][30]. - The turbocharger component business is expected to continue as a cornerstone for the company, with projected revenues of 1.114 billion, 1.239 billion, and 1.371 billion CNY from 2024 to 2026 [2][40]. - The new energy vehicle parts business is anticipated to grow significantly, with expected revenues of 250 million, 340 million, and 450 million CNY from 2024 to 2026 [3]. - The screw rod business is also expected to see growth, with projected revenues of 5 million, 80 million, and 180 million CNY from 2024 to 2026 [4]. Summary by Sections 1. Business Overview - The company was founded in 1997 and has leveraged precision machining technology to enter the turbocharger component manufacturing sector, later expanding into new energy vehicle parts and linear motion components [1][19]. - The company has a stable shareholding structure, with the actual controller holding 55.7% of shares, and has implemented effective employee stock ownership and incentive mechanisms [25][27]. 2. Turbocharger Component Business - The turbocharger industry is mature and concentrated, benefiting leading companies. The company has established deep ties with Tier 1 suppliers like Garrett and Cummins, ensuring a stable revenue stream [2][40]. - The company’s turbocharger component revenues are projected to grow at rates of 9.83%, 11.23%, and 10.68% from 2024 to 2026 [40]. 3. New Energy Vehicle Parts Business - The company has focused on lightweight structural components and precision parts for new energy vehicles since 2018, benefiting from the trend towards vehicle lightweighting [3][41]. - The expected revenue growth for this segment is significant, with projections of 250 million, 340 million, and 450 million CNY from 2024 to 2026 [3]. 4. Screw Rod Business - The screw rod market is expanding, with the company establishing a subsidiary to produce high-precision screw rods and linear guides, targeting various industries including robotics and machine tools [4][60]. - Revenue projections for the screw rod business are 5 million, 80 million, and 180 million CNY from 2024 to 2026 [4].