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Weekly Financial Summary 2024-11-25

Date: 2024-11-25
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Financial attention

Macroeconomics

1. State Administration of Taxation: Announcement on Promoting the Application of Comprehensive Digital Electronic Invoices. Starting from December 1st, the application of digital electronic invoices will be officially promoted nationwide.

2. CCTV Finance: As of November 22, the number of countries enjoying China's visa free treatment has expanded to 38, and the popularity of tourism to China has surged from multiple countries. On the European and Japanese sites of a certain travel platform, the search popularity for Chinese destinations increased by 65% and 112% respectively compared to the previous period. From November 1st to 5th, the booking volume of group tours to China on a South Korean tourism e-commerce platform increased by 91% month on month.

3. US Federal Budget Accountability Committee: The total amount of US treasury bond exceeded US $36 trillion last week, reaching a record high. From the end of July, the total amount of US treasury bond reached 35 trillion yuan, and now it has risen to 36 trillion yuan, which only took more than three months.


Stock market inventory

1. Last Friday, the Shanghai Composite Index closed down 3.06% at 3267.19 points, down 1.91% for the week; The Shenzhen Component Index closed down 3.52% at 10438.72 points, down 2.89% for the week; The ChiNext Index closed down 3.99% at 2175.57 points, down 3.03% for the week.

2. Last Friday, the Hang Seng Index closed down 1.89% at 19229.97 points, down 1.01% for the week; The Hang Seng Technology Index closed down 2.57% at 4246.20 points, down 1.89% for the week; The state-owned enterprise index closed down 2.1% at 6887.05 points, down 1.33% for the week.

3. CITIC Securities: The current pricing force in the market is transitioning from individual investors to institutional investors, and the housing prices and social financing signals that institutions are concerned about still need to be observed; The market is standing at the starting line of the annual marathon market, waiting for the starting gun of housing prices and social financing. In terms of configuration, in the short term, some undervalued products can continue to transition along the cycle, and actively increase performance growth and domestic consumption after the signal is clear.

4. Galaxy Securities: The transformation and upgrading of the building materials industry is urgent, and the industry is gradually transitioning towards green, intelligent, and high-end upgrades. With the active response of state-owned enterprises in different sub industries of building materials to the national economic development trend and the acceleration of enterprise transformation, central state-owned enterprises in building materials are expected to be the first to achieve transformation and upgrading, and the overall competitiveness and market position of enterprises are expected to be further improved.

5. Enjie Corporation: Shanghai Enjie, a subsidiary of Enjie, has signed a Global Strategic Cooperation Framework Agreement with EVE Energy. Both parties will engage in long-term and stable cooperation in product supply, technology exchange, and other areas. Yiwei Lithium Energy expects to purchase no less than 3 billion square meters of battery separators from Shanghai Enjie and its controlled affiliated companies in Southeast Asia, Europe and other markets from 2025 to 2031.

6. Hunan Gold: The company has noticed media reports stating that over 40 gold veins have been discovered in Pingjiang, Hunan, with a potential reserve of over 1000 tons and an estimated valuation of 600 billion yuan. The "Wangu Gold Mine in Pingjiang County, Hunan Province" mentioned in the report includes mining and exploration rights owned by the company's wholly-owned subsidiary and the controlling shareholder's controlling subsidiary. The company and its controlling shareholder are actively promoting the project, which will ultimately inject gold resources into the listed company, based on the reserves submitted for review and filing by the Hunan Provincial Department of Natural Resources for the "Integrated Exploration" project in the Wangu Mining Area.

7. China Resources Shuanghe: The company recently received the "Drug Clinical Trial Approval Notice" issued by the China Food and Drug Administration for Simeglutide Injection, approving it as a biosimilar drug for clinical trials on weight management indications. This indication involves adult obese and overweight patients, as well as patients aged 12 years and above with an initial BMI of 95th percentile or obesity.

8. Guoxin Technology: The high-performance AI MCU chip CCR7002 developed by the company has recently achieved success in internal testing. This product can be applied in fields such as industrial control, energy control, building control, and smart transportation. The successful development of this new product is expected to have a positive impact on the company's future performance growth.

9. ST Yongyue: The company received a detention notice and filing notice from the actual controller Chen Xiang on November 24th. Chen Xiang does not hold any position in the company. At present, the control of the company has not changed, and the production and operation situation is normal. The above matters will not have a significant impact on the normal production and operation of the company.

10. New stock subscription: This week, there were three new stock subscriptions, namely Jiachi Technology on the Science and Technology Innovation Board, Cologne New Materials on the Beijing Stock Exchange, and Boyuan Shares on the ChiNext Board.

11. Restricted and unlocked: This week, a total of 73 restricted shares were unlocked, with a total of 5.806 billion shares unlocked and a market value of 63.07 billion yuan. Among them, Shennong Group ranked first on the unlocking list with 12.95 billion yuan, while Jiufeng Energy and Huasu Shares ranked second and third with 9.801 billion yuan and 4.859 billion yuan respectively.

12. Nanjing Business Travel: intends to purchase 100% equity of Nanjing Huangpu Hotel held by Nanjing Tourism Group and 49% equity of Nanjing Nanshang Commercial held by Nanjing Shopping Mall through issuing shares and paying cash, and raise matching funds. The stocks will resume trading on November 25th (Monday).

13. Bangyan Technology is planning to purchase the controlling stake of Shenzhen Xingwang Information and Communication Technology Co., Ltd. through issuing shares and paying cash, while raising matching funds. Due to the uncertainty of this transaction, the company's stock will be suspended from trading starting from November 25th, with an expected suspension period of no more than 5 trading days.

14. Shenlian Biotechnology: Chairman Nie Dongsheng proposes to repurchase A-shares. Used for implementing employee stock ownership plans or equity incentives, or for converting convertible corporate bonds issued by listed companies into stocks. The total amount of repurchase funds is 20 million to 40 million yuan.

15. Aisen Co., Ltd. plans to repurchase its issued RMB ordinary shares through centralized bidding trading, with a repurchase fund of no less than 40 million yuan and no more than 60 million yuan. The repurchase price shall not exceed 70.58 yuan per share. The repurchased shares will be used for employee stock ownership plans or equity incentives.


Industry Observation

1. Welsenn XR: Starting from 2025, AI smart glasses will rapidly penetrate into traditional glasses; By 2029, the annual sales of AI smart glasses are expected to reach 55 million pairs; By 2035, sales are expected to reach 1.4 billion pairs. The new wave of AI will increase the edge computing power demand of massive IoT devices in the future.

2. Deng Chenghao, Vice President of Changan Automobile: Due to subsidy overdrafts and the expansion of production capacity by leading enterprises, the market price war next year will not stop and is likely to become more intense. Car companies need to maintain a gross profit margin of 15% to ensure survival. Price competition will not end until a large number of new brands are eliminated.

3. Most of the world's cocoa production comes from West Africa, but since last year, major cocoa producing countries in West Africa - Ivory Coast and Ghana - have experienced widespread crop failures, resulting in the world facing the most severe cocoa supply shortage in over 60 years, and cocoa prices have skyrocketed.

4. CCTV Finance: As temperatures drop, the ice and snow craze in Chongli is rapidly heating up. On weekends, it is difficult to find 3500 guest rooms at Chongli Yunding Ski Resort; In less than two weeks since its opening, the number of tourists in Taiwu Ski Town has rapidly increased from 5000 to 6000 per day to 7000 to 8000, and even exceeded 10000 on weekends.

5. Cat's Eye Professional Edition: As of 18:30 on November 24th, the total box office (including pre-sales) of movies in the 2024 New Year box office (November 22nd December 31st) has exceeded 300 million yuan, with "Good Things", "Crayon Shin chan: Our Dinosaur Diary", and "Victory in Hand" ranking among the top three in the 2024 New Year box office.

6. CCTV News: Currently, China is accelerating the pilot work of promoting and applying sustainable aviation fuels. The Civil Aviation Administration of China's "14th Five Year Plan for Green Development of Civil Aviation" clearly aims to achieve a sustainable aviation fuel consumption of 50000 tons during the 14th Five Year Plan period. This is the first time that China has proposed a quantitative target for sustainable aviation fuel use at the government level.

7. Director Guan Zhiou of the Forestry and Grassland Bureau: As of the end of 2023, China's forest coverage rate will exceed 25%, forest stock will exceed 20 billion cubic meters, annual carbon sink will reach over 1.2 billion tons, and the area of artificial forests will rank first in the world, making it the country with the largest increase in greenery in the world.

8. Chairman of the European Parliament's Trade Committee: The EU must readjust its competition policy after Trump takes over the White House. At least an agreement is expected to be reached in the tariff dispute regarding Chinese electric vehicles. In addition, the EU is still negotiating with China on electric vehicles and is about to reach a solution to lift tariffs with China.


Financial data

1. The State Administration of Financial Regulation: As of the end of October, the balance of loans for inclusive small and micro enterprises in China was 32.45 trillion yuan, a year-on-year increase of 14.98%, which was 7.47 percentage points higher than the growth rate of various loans. Among them, the balance of credit loans for inclusive small and micro enterprises increased by 30.56% year-on-year, continuing to maintain high-speed growth.

2. New Third Board: Last week, 8 new listed companies were added with a transaction amount of 991 million yuan, a decrease of 6.77% compared to the previous week. As of now, the total number of companies listed on the New Third Board has reached 6101.

3. Last Friday, the onshore Chinese yuan closed at 4:30 pm against the US dollar at 7.2452, down 0.0580% and down 0.1964% for the week; The central parity rate of RMB was reported at 7.1942, down 0.0111%, and up 0.0695% for the week.

4. Shanghai Environmental Protection Exchange: Last week, the trading volume of carbon emission quota listing agreements in the national carbon market was 1.995 million tons, with a total trading volume of 208.9727 million yuan and a closing price of 104.78 yuan/ton, up 0% for the week.

5. US stock market: Last Friday, the Dow Jones Industrial Average rose 0.97% to 44296.51 points, up 1.96% for the week; The S&P 500 index rose 0.35% to 5969.34 points, with a weekly increase of 1.68%; The Nasdaq rose 0.16% to 19003.65 points, with a weekly increase of 1.73%.

6. Europe: Last Friday, the German DAX30 index rose 0.92% to 19322.59 points, up 0.49% for the week; The French CAC40 index rose 0.58% to 7255.01 points, down 0.2% for the week; The FTSE 100 index in the UK rose 1.38% to 8262.08 points, with a weekly increase of 2.46%.

7. Gold: Last Friday, COMEX gold futures rose 1.36% to $2711.2 per ounce, up 5.47% for the week.

8. Crude oil: Last Friday, WTI January crude oil futures rose 1.62% to $71.24 per barrel, up 6.45% for the week. Brent crude oil futures for January rose 1.26% to $75.17 per barrel, with a weekly increase of 5.81%.


► Open source securities: With the launch of large models such as GPT-4o, AI emotional companionship functions are increasingly enhanced. AI companion products aim to meet the needs of users to be understood, listened to, and focused on. Through AI technology, they can timely detect and respond to user emotions, providing high-quality emotional support. From the perspective of APP payment, APP products mostly adopt a subscription system (monthly payment), while hardware products mainly include plush toys, story machines, companion robots, and other hardware products. The global chatbot market is expected to reach $27.297 billion by 2030, with a CAGR of 23.3% from 2023 to 2030, showing a rapid growth trend. The global AI toy market size is expected to reach 35.11 billion US dollars by 2030.

Sensor Tower: With the development of AI+chatbot applications, emotional companion AI is gradually emerging. The top application "Character AI" reached a historical high of 22 million MAUs in August, with nearly 19 million downloads from January to August, becoming a leader in the segmented market. In terms of revenue, Replika, CharacterAl, and TalkieAl ranked among the top three in the companion AI application track in 2024. From January to August, the internal purchase revenue of Replika exceeded 9 million US dollars, with a global cumulative revenue of nearly 90 million US dollars. Companionship AI applications are highly favored by young users, with the proportion of users aged 18-35 in the top tier applications exceeding 70%.

Tencent Research Institute: AI companionship is considered the most promising direction in the AI to C race. AI companion products that are paired with physical entities can go further. Plush toys, story machines, and other AI toys belong to the C-end hardware of the AI companion field, mainly targeting young age groups. The core idea is to incorporate large models into toys, injecting soul into traditional toys and entering the early education track. Behind AI is a vast knowledge base, generating content with openness and creativity. However, influenced by the illusion of large models, it may also be "nonsense", which naturally fits with children's interactive education scenarios that pursue fun and need to stimulate imagination.

Dongwu Securities: The scale of AI application users at home and abroad continues to grow, among which AI search/intelligent assistant and AI emotional companionship have become the main application scenarios. User demand has been verified, and it is recommended to pay attention to the new direction of AI toys that combine AI emotional companionship with hardware. We are optimistic about the integration of AI IP and toys to create children's AI Friends, which is expected to open up new tracks. We suggest following related layout companies, and recommend following IP companies.


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