Investment Rating - The report maintains a strong investment rating for the military industry, particularly focusing on the SpaceX supply chain and domestic rocket industry as key investment areas [2][40]. Core Insights - The report highlights the recent decline of the Shenwan Military Industry Index by 4.92% from January 12 to January 16, 2026, while the CSI 300 Index fell by only 0.57%, indicating a relative underperformance of -4.35 percentage points [2][40]. - It emphasizes the importance of focusing on the SpaceX supply chain and domestic rocket industry, which are expected to be the fastest-growing and most inflation-resistant sectors [2][40]. - The report suggests that the SpaceX supply chain is progressing rapidly, with expectations for commercial deployment of Starship and V3 satellites by 2027, leading to significant revenue realization from 2027 to 2030 [3][42]. - The domestic rocket industry is also highlighted as a core area, with plans for breakthroughs in reusable rocket technology and future industry layouts [3][42]. Summary by Sections Market Review - The Shenwan Military Industry Index has seen an 8.04% increase since 2026, outperforming the CSI 300 Index, which increased by 2.20% [15]. - The report notes that various sub-sectors within the military industry have experienced declines, particularly the aerospace sector, which fell by 10.56% [20][14]. Investment Opportunities - Recommended companies in the SpaceX supply chain include Lens Technology, Yujing Co., and Maiwei Co. [3][42]. - Key domestic rocket industry companies to watch include Feiwo Technology, Western Materials, and Silver Bond Co. [3][42]. - Ground terminal companies such as Shengyang Technology and Haige Communication are also highlighted for their potential high revenue realization [3][42]. Financial Insights - The report indicates a net outflow of 2.629 billion yuan from military ETFs during the week, with a decrease in leveraged fund inflows, suggesting a temporary reduction in market volatility [27][32]. - As of January 16, 2026, the military industry index has a TTM price-to-earnings ratio of 85.05, placing it in the 99.61 percentile historically [45][36].

Investment Rating - The industry rating is "Outperform the Market" indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 months [69]. Core Insights - The report highlights a strong recovery in investment and financing activities in the CXO sector, with significant increases in both primary and secondary market financing in the biotech industry [4][18][23]. - The JPM conference revealed that many CXO companies expressed optimism for 2026, driven by project structure optimization, improved operational efficiency, and sustained customer demand [4][28]. - The report emphasizes the importance of technological innovation in the pharmaceutical sector for 2026, with a focus on innovative drugs and medical devices [5]. Summary by Sections Investment and Financing Trends - Since September 2025, overseas primary market financing has shown strong recovery, with a total of $8.72 billion in Q4 2025, a year-on-year decrease of 2.4% but a quarter-on-quarter increase of 21% [4][18]. - In January 2026, the total financing amount reached $3.34 billion, indicating a significant recovery compared to previous months [4][18]. - The secondary market for biotech also saw a robust recovery, with Q4 2025 financing totaling $19.28 billion, a year-on-year increase of 111% and a quarter-on-quarter increase of 149.5% [23][26]. Market Performance Review - During the week of January 12-16, 2026, the CITIC Pharmaceutical Index fell by 0.72%, underperforming the CSI 300 Index by 0.2 percentage points, ranking 16th among CITIC's primary industry classifications [3][32]. - The pharmaceutical sector has shown a year-to-date increase of 6.9% in 2026, outperforming the CSI 300 Index by 4.7 percentage points, ranking 7th among industry classifications [3][32]. - The top-performing stocks during this week included Baolait (up 48.8%), Hualan Biological (up 32.7%), and Tianzhihang (up 27.7%) [47]. Company Highlights from JPM Conference - WuXi AppTec reported a revenue of 45.5 billion yuan in 2025, a year-on-year increase of 21.4%, and a net profit of 15 billion yuan, up 41.3% [30]. - WuXi Biologics achieved significant growth with a revenue increase driven by its dual antibody business, which saw a year-on-year growth of 120% [30]. - Lonza expects a revenue growth of 20-21% in 2025, with a core EBITDA margin of 30-31% [30]. Investment Strategy - The report suggests focusing on innovative drugs, particularly those with revenue realization and unexpected business development outcomes, as well as cutting-edge technology platforms like gene therapy and CAR-T [5]. - In the medical device sector, attention should be given to equipment replenishment and bidding, particularly in surgical robots and endoscopes [5].

1. Report Industry Investment Rating No information provided in the document. 2. Core Viewpoints of the Report - The marginal tightening of funds this week may be due to the misalignment between exogenous disturbances and central bank injections. Despite the low excess reserve ratio in December and the large - scale net withdrawal of OMO in the first week of January, the funds remained relatively loose, possibly because of the abundant non - bank liquidity. Although the central bank did not announce a reserve requirement ratio cut this week, it is likely to take measures to maintain liquidity. A rate cut condition is maturing, and a reserve requirement ratio cut is likely to be implemented in March. It is expected that the DR001 central value in January will be around 1.3% - 1.35% [4][29][45]. - Next week, the reverse repurchase maturity scale will rise significantly, the government bond payment pressure will increase, and the tax - period capital demand will further increase. However, considering the central bank's intention to guide the overnight interest rate to run near the policy interest rate, the probability of a significant tightening of the capital market is limited [67]. 3. Summary According to the Directory 3.1 Money Market 3.1.1 This Week's Capital Market Review - OMO had a net injection of 81.28 billion yuan this week. The 6 - month repurchase expired on Tuesday, and the central bank over - renewed 30 billion yuan on Thursday. After the large - scale net withdrawal of OMO and government bond payments after the New Year, the inter - bank water level dropped significantly. The government bond payments were mainly concentrated on Monday, and the repurchase renewal was delayed, causing the funds to tighten marginally in the first half of the week. After the repurchase was implemented on Thursday, the funds gradually loosened, and the DR001 fell to 1.32% on Friday [3][16]. - The trading volume of pledged repurchase decreased in the middle of the week and recovered in the second half. The average daily trading volume increased by 1.12 trillion yuan to 8.62 trillion yuan compared with last week. The overall scale of pledged repurchase decreased first and then increased, but it was still below 13 trillion yuan on Friday. The net lending of large - scale banks and small - and medium - sized banks decreased first and then increased. The net lending of non - bank institutions increased first and then decreased, and the net borrowing maintained a shock. The capital gap index rose to - 363.9 billion on Wednesday and then gradually fell to - 762 billion on Friday, slightly higher than last week but still below the neutral level [3][23]. - The marginal tightening of funds may be due to the misalignment between exogenous disturbances and central bank injections. The decline in government deposits in December was only 1 trillion yuan, resulting in an excess reserve ratio of only 1.6%, lower than expected. The large - scale net withdrawal of OMO in the first week of January and government bond payments may have reduced the excess reserve ratio to 0.9%. The government bond payment and repurchase expiration at the beginning of this week, combined with equity market fluctuations and new stock subscriptions on the Beijing Stock Exchange, led to a temporary increase in DR001, but the central bank's attitude did not change, and the funds loosened again after the repurchase on Thursday [4][29][35]. 3.1.2 Next Week's Capital Outlook - This week, the actual net payment of government bonds was - 4.85 billion yuan. Next week, the payment scale of government bonds is expected to be about 20 billion yuan, and the local bond issuance scale of 5 regions is 231.6 billion yuan. Due to the decrease in the maturity volume, the overall net payment scale of government bonds will rise to 246.5 billion yuan [46]. - As of now, 11 regions have issued local bonds worth 424.1 billion yuan in January. The issuance of new general bonds, new special bonds, and refinancing bonds is 21.6 billion yuan, 174.6 billion yuan, and 227.9 billion yuan respectively, with replacement bonds worth 170.4 billion yuan. The overall issuance of local bonds in January is roughly in line with the plan. It is expected that the government bond issuance scale in January, February, and March 2026 will be 2.12 trillion yuan, 1.81 trillion yuan, and 2.77 trillion yuan respectively, and the net financing scale will be 1.22 trillion yuan, 1.05 trillion yuan, and 1.26 trillion yuan respectively. The cumulative net financing scale of government bonds in the first quarter may be lower than that in the same period of 2025 [55][62]. - Next week, the 7 - day reverse repurchase maturity scale will increase significantly, the government bond payment pressure will increase, and the tax - period capital demand will further increase. Although the new stock subscription on the Beijing Stock Exchange may have a certain impact on the exchange capital price, it is generally controllable. Considering the central bank's attitude, the probability of a significant tightening of the capital market is limited [67]. 3.2 Inter - Bank Certificates of Deposit - The 1 - year Shibor rate rose 0.4 BP to 1.65% compared with January 9. The secondary rate of 1 - year AAA - rated inter - bank certificates of deposit fell 0.8 BP to 1.63% compared with last week [71]. - This week, the increase in the issuance scale of inter - bank certificates of deposit was less than the maturity scale, with a net repayment of 28.04 billion yuan, an increase of 12.27 billion yuan compared with last week. The net financing scale of state - owned banks, joint - stock banks, city commercial banks, and rural commercial banks was - 14.03 billion yuan, - 20.43 billion yuan, 5.97 billion yuan, and - 0.07 billion yuan respectively. The 1 - year certificates of deposit were still the largest issuance variety, but the issuance proportion decreased by 15 percentage points to 30% compared with last week [74]. - The issuance success rates of inter - bank certificates of deposit of state - owned banks, joint - stock banks, city commercial banks, and rural commercial banks all increased compared with last week. Except for the relatively low issuance success rate of joint - stock banks, the issuance success rates of other banks were close to the average level in recent years. The issuance spread of 1 - year certificates of deposit between city commercial banks and joint - stock banks narrowed [75][78]. - The new - caliber relative supply - demand strength index of certificates of deposit dropped to 28.7%, a decrease of 13.6 percentage points compared with last week, mainly due to the decreased willingness of money market funds to increase their holdings of certificates of deposit, especially the increased willingness to reduce holdings in the secondary market. However, this decline is seasonal, and the current index is roughly the same as in previous years [86][89]. 3.3 Bill Market This week, the bill interest rate declined overall. As of January 16, the 3 - month and 6 - month bill interest rates of state - owned and joint - stock banks decreased by 7 BP and 9 BP respectively compared with January 9, to 1.43% and 1.13% [94][96]. 3.4 Bond Trading Sentiment Tracking - This week, the sentiment of interest - rate bonds was strong, and the yields declined slightly overall, while the credit was generally stable [99]. - Large - scale banks tended to increase their bond holdings overall, with an increased willingness to hold inter - bank certificates of deposit, 1 - 3 - year and 10 - year policy financial bonds, and a decreased willingness to hold short - term commercial paper. However, they tended to reduce their holdings of 1 - 3 - year treasury bonds and 5 - year policy financial bonds [99]. - The overall willingness of trading - type institutions to reduce bond holdings decreased. Among them, the willingness of securities companies, other institutions, and products to reduce holdings decreased, while fund companies tended to increase their holdings [99]. - The overall willingness of allocation - type institutions to increase bond holdings decreased significantly. Among them, the willingness of small - and medium - sized banks to increase holdings decreased significantly, while the willingness of insurance companies and wealth management products to increase holdings increased [99].

Investment Rating - The report maintains an "Outperform" rating for the industry [4] Core Insights - The precious metals sector is experiencing an increase in prices due to rising macroeconomic and geopolitical risks, with silver prices accelerating [1][9] - Industrial metals are expected to see price fluctuations due to interest rate expectations and geopolitical tensions, particularly affecting copper and aluminum [2][11] - The lithium carbonate market is witnessing a significant price increase, although spot trading remains sluggish [3][17] - The rare earth market is seeing rapid price increases driven by supply tightening, but demand has not kept pace, leading to a divided sentiment in the industry [3][21] Summary by Sections Precious Metals - The report highlights that geopolitical tensions and macroeconomic factors are enhancing the safe-haven appeal of precious metals, particularly gold and silver [1][9] - Key stocks to watch include Zijin Mining, Zhongjin Lingbao, and others in the A-share and H-share markets [10] Industrial Metals - Copper prices are experiencing volatility due to macroeconomic disturbances and geopolitical risks, with domestic inventories reaching a ten-year high [11][15] - Aluminum prices are expected to remain stable in the short term, but demand is under pressure due to high prices and seasonal factors [15][16] New Energy Metals - Lithium carbonate production is slightly increasing, but overall market sentiment remains strong due to optimistic demand forecasts, particularly in the energy storage sector [17] - Key stocks in the lithium sector include Ganfeng Lithium and others [17] Other Minor Metals - The rare earth market is seeing price increases driven by supply constraints, particularly in recycled materials, but demand has not matched this growth [21] - Key stocks to monitor include Northern Rare Earth and others in the rare earth sector [21] Market Review - The overall non-ferrous metal index increased by 3.0%, outperforming the broader market [22] - Notable stock performances include Hunan Silver, which saw a 41.14% increase, while West Materials experienced a 16.96% decline [32] Valuation - The current PE ratio for the non-ferrous metal industry is 35.36, indicating potential for valuation increases in copper and aluminum sectors due to supply constraints and rising demand for green metals [37]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% against the market benchmark within the next six months [6][16]. Core Insights - The company anticipates a net profit increase of at least 30% for the fiscal year ending December 31, 2025, compared to the previous year, driven by increased sales of 1.74 refractive index lenses and other multifunctional products, along with improved operational efficiency and financing structure [3][4]. - The company is positioned as a leading manufacturer of high-refractive lenses in China, with significant cost advantages due to its scale and production capabilities. It is also expanding its overseas production capacity to mitigate tariff impacts [4][5]. - The smart glasses market is projected to grow significantly, with a 110% year-on-year increase in shipments expected in the first half of 2025. The company has secured partnerships with major players in the smart glasses sector, enhancing its revenue potential from XR (extended reality) business [5][6]. Financial Projections - Revenue growth rates are forecasted at 20% for 2025, 21% for 2026, and 19% for 2027, with corresponding net profit growth rates of 31%, 25%, and 23% respectively. The report adjusts previous estimates slightly upward [6][10]. - The company's earnings per share (EPS) is projected to increase from 0.89 in 2024 to 1.79 by 2027, reflecting strong profitability growth [6][10]. Financial Data Summary - The company’s main revenue is expected to reach RMB 2,477 million in 2025, with a net profit of RMB 559 million. By 2027, revenue is projected to grow to RMB 3,582 million, with net profit reaching RMB 861 million [7][10]. - The report highlights a consistent improvement in gross margin, expected to rise from 38.6% in 2024 to 42.1% by 2027, indicating enhanced operational efficiency [10].

Investment Rating - The industry rating is "Outperform the Market" [7] Core Insights - The report highlights a strong recovery in investment and financing activities in the CXO sector, with significant growth in both primary and secondary markets for biotech [4][18][23] - The JPM conference indicated a positive outlook for 2026, with companies expressing optimism about demand recovery and operational efficiency improvements [4][28] - The report emphasizes the importance of technological innovation in the pharmaceutical sector for 2026, focusing on innovative drugs and medical devices [5][32] Summary by Sections Investment Opportunities and Trends - Primary market financing for overseas biotech reached $8.72 billion in Q4 2025, showing a year-on-year decrease of 2.4% but a quarter-on-quarter increase of 21% [4][18] - In January 2026, primary market financing totaled $3.34 billion, indicating a strong recovery [4][18] - Secondary market financing for overseas biotech in Q4 2025 was $19.28 billion, a year-on-year increase of 111% and a quarter-on-quarter increase of 149.5% [4][23] - The report notes that companies like WuXi AppTec and Danaher exceeded performance expectations, with a general recovery in demand for Pharma and Biotech orders [4][28] Market Performance Review - The CITIC Pharmaceutical Index fell by 0.72% from January 12 to January 16, 2026, underperforming the CSI 300 Index by 0.2 percentage points [3][32] - The pharmaceutical sector has seen a 6.9% increase since the beginning of 2026, outperforming the CSI 300 Index by 4.7 percentage points [3][32] - The top-performing stocks during this period included Baolai Te (+48.8%), Hualan Biological Engineering (+32.7%), and Tianzhihang (+27.7%) [3][47] Company Performance and Recommendations - The report suggests focusing on companies such as WuXi AppTec, Beigene, and others for potential investment opportunities in 2026 [5][54] - The report outlines a strategy for innovative drugs, emphasizing revenue realization, unexpected business development, and cutting-edge technology platforms [5][32] - The medical device sector is highlighted for its potential in equipment replenishment and innovative consumables benefiting from centralized procurement [5][32]

行 华福证券 基础化工 2026 年 01 月 18 日 业 研 究 行 业 定 期 报 告 基础化工 行业周报：巴斯夫湛江一体化基地聚乙烯装置投 产后首车交付，SABIC 出售两大资产 投资要点： 本周板块行情：本周，上证综合指数下跌 0.45%，创业板指数上涨 1%， 沪深 300 下跌 0.57%，中信基础化工指数上涨 1.27%，申万化工指数上涨 0.9%。 化工各子行业板块涨跌幅：本周，化工板块涨跌幅前五的子行业分别为电 子化学品(5.16%)、橡胶助剂(4.66%)、钾肥(4.23%)、合成树脂(3.67%)、磷肥及 磷化工(2.85%)；化工板块涨跌幅后五的子行业分别为改性塑料(-4.01%)、钛白 粉(-2.84%)、橡胶制品(-1.43%)、轮胎(-1.18%)、纯碱(-0.85%)。 本周行业主要动态： 巴斯夫湛江一体化基地聚乙烯装置投产后首车交付。巴斯夫湛江一体化 基地再度迎来重要里程碑全新聚乙烯(PE)装置正式投产，并顺利完成首车 产品交付。2026 年 1 月 8 日，首批巴聚赋聚乙烯产品由专业运输车辆从湛 江基地发出，准时抵达客户仓库。这一成果不仅彰显了巴斯夫"以客户为 中心"的服 ...

Investment Rating - The industry rating is "Outperform the Market," indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 months [14]. Core Insights - Meta has signed a nuclear power agreement exceeding 6 GW, becoming the largest nuclear power purchaser among large tech companies. The agreement includes significant small modular reactor (SMR) projects, supporting Oklo's project in Ohio with up to 1.2 GW of power and TerraPower's two small reactors with a future purchase agreement for 2.1 GW [3][4]. - The demand for electricity in U.S. data centers is projected to increase by at least 30% by 2030, making electricity a bottleneck for AI industry development. Nuclear power, being clean and stable, provides long-term energy security for Meta's AI data centers, promoting the implementation of new small reactor technologies and aligning with low-carbon goals [4][5]. Summary by Sections Nuclear Power Agreements - Meta's agreements include collaborations with Oklo and TerraPower, focusing on small modular reactors to meet the growing energy demands of AI data centers [3][4]. Energy Demand and AI - The report highlights the increasing electricity consumption in data centers and positions small modular reactors as a key solution to address the energy needs of AI technologies [4][5]. Investment Opportunities - The report suggests monitoring several companies involved in the SMR sector, including: 1. Jingye Intelligent, which plans to establish an SMR subsidiary focused on AI data center power supply [5]. 2. Jiadian Co., whose helium fan is the only power device for the fourth-generation high-temperature gas-cooled reactor [5]. 3. Guoguang Electric, which provides critical components for ITER projects [5]. 4. Lanshi Heavy Industry, covering upstream nuclear fuel systems to downstream spent fuel processing [5]. 5. Kexin Electromechanical, which has developed high-temperature gas-cooled reactor products [5]. 6. Hailu Heavy Industry, servicing various reactor types including third and fourth generation [5]. 7. Jiangsu Shentong, which has secured over 90% of orders for nuclear-grade valves in new nuclear power projects in China [5].

Investment Rating - The report maintains an "Outperform" rating for the industry [4] Core Insights - December home sales in the U.S. exceeded expectations, indicating a potential improvement in consumer demand related to the real estate chain [3] - META aims to double the production capacity of AI RAY-BAN glasses to 20 million units by 2026, suggesting investment opportunities in companies like 康耐特光学, 明月镜片, and 博士眼镜 [3] - Despite weak domestic consumption in home goods and stationery, leading companies are at historical low stock prices, presenting opportunities for valuation recovery [3] Summary by Sections Real Estate and Related Consumption - U.S. home sales in December reached an annualized total of 4.35 million units, up 1.4% year-on-year and 5.1% month-on-month, surpassing expectations of 4.22 million units [6] - The Trump administration has announced plans to enhance housing affordability, including a proposal to prohibit institutional investors from purchasing single-family rental homes [6] Home Goods and Furniture - The home goods sector continues to face challenges, with a reported 4.4% year-on-year decline in sales for large-scale home goods markets in December [41] - The furniture manufacturing industry saw a cumulative revenue decline of 9.1% year-on-year from January to November [43] Paper and Packaging - As of January 16, 2026, prices for various paper products showed mixed trends, with double glue paper at 4725 CNY/ton (unchanged) and corrugated paper down to 2725 CNY/ton (a decrease of 95.63 CNY/ton) [48] - The report highlights a decline in the revenue of the paper and paper products industry, with a cumulative year-on-year revenue drop of 2.7% from January to November [63] Consumer Goods - The medical segment of the consumer goods sector is expected to see growth, with strategic initiatives aimed at enhancing product offerings and operational excellence [5] - The stationery sector is recommended for investment, particularly in companies like 晨光股份, which is expected to maintain steady growth [5] New Tobacco Products - The report notes ongoing investigations into Chinese competitors by British American Tobacco regarding electronic cigarette regulations in the U.S., indicating potential market shifts [10]

Investment Rating - The industry rating is "Outperform the Market," indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% over the next 6 months [13]. Core Insights - The report highlights that Huadian Co. is establishing a cutting-edge technology platform to accelerate the implementation of CoWoP technology, with plans to invest a total of $300 million in a high-density optical integrated circuit board project, which is expected to add an annual production capacity of 1.3 million high-density optical integrated circuit boards once fully operational [3][5]. - The glass substrate industry is approaching a critical transition from technology validation to early-stage mass production, with expectations for small-scale commercial shipments to begin by 2026. The compound annual growth rate (CAGR) for semiconductor glass wafer shipments is projected to exceed 10% from 2025 to 2030 [4]. - The demand for AI-driven servers, data storage, and high-speed network infrastructure is creating new growth opportunities in the PCB market, as the supply of related high-end products is currently insufficient. The development of AI and network infrastructure will require more complex, higher-performance, and high-density interconnect (HDI) PCB products [5]. Summary by Sections - **Investment Highlights**: Huadian Co. is set to invest $300 million in a project for high-density optical integrated circuit boards, aiming for a production capacity of 1.3 million units annually [3]. - **Glass Substrate Commercialization**: The glass substrate industry is on the verge of commercial viability, with significant players like SK, LG, and Samsung expanding their collaborations with material and process suppliers [4]. - **Market Opportunities**: The growth in AI and network infrastructure is expected to drive demand for advanced PCB products, presenting new opportunities for the industry [5]. - **Recommended Companies**: The report suggests focusing on PCB equipment consumables and PCBA equipment companies, including Dazhu CNC, Ding Tai High-Tech, and others [6].