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Summary

Longtu Optical Mask's new stock subscription today;

The central bank released MLF for the second time this month, and the winning rate dropped by 20 basis points;

300 billion yuan of funds were allocated at the end of August, and equipment renewal and consumer goods trade-in received additional support;

The six major banks collectively "cut interest rates", and a new round of deposit interest rate cuts has begun;

Shanghai: Create a national humanoid robot manufacturing innovation center;

Dong Yuhui resigned from Oriental Selection and started to run independently with Huixingxing;

The three major U.S. stock indexes closed with mixed gains and losses, with the Nasdaq down 0.93%.

Overnight foreign exchange

The three major U.S. stock indexes rose and fell. As of the close, the Dow Jones Index rose 0.2%, the Nasdaq Index fell 0.93%, and the S&P 500 Index fell 0.51%. Most large technology stocks fell, with Google falling more than 3%, Microsoft falling more than 2%, and Meta and Nvidia falling more than 1%. Popular Chinese stocks rose and fell, with the Nasdaq China Golden Dragon Index falling 0.68%, JD.com rising more than 2%, Xpeng Motors, Li Auto, iQiyi, and NetEase rising more than 1%; New Oriental fell more than 5%, Tencent Music, Pinduoduo, and Baidu fell more than 1%.

Spotlight

1. The central bank released MLF for the second time this month, and the winning rate dropped by 20 basis points

Following the decline in the interest rate of the 7-day reverse repurchase operation in the open market and the loan market benchmark rate (LPR), the central bank conducted a 200 billion yuan medium-term lending facility (MLF) operation by interest rate bidding on July 25, of which the MLF winning rate was 2.3%, a 20 basis point decrease from the MLF winning rate on July 15. The central bank cut interest rates again, and the RMB exchange rate appreciated rapidly. As of 18:30 on July 25, the onshore and offshore RMB exchange rates against the US dollar had both risen above the 7.21 mark, with daily increases of more than 500 basis points. The market believes that the trend of the RMB exchange rate has benefited from the recent significant appreciation of the yen, which has further reduced the constraints on the central bank's implementation of monetary policy.

A person close to the central bank told the Securities Times that, on the basis of the MLF operation carried out on the 15th of each month as usual, the central bank added another MLF operation on July 25. In addition, the previous announcement of temporary positive and reverse repurchase operations as appropriate shows that the central bank is determined to maintain reasonable liquidity and consolidate the economic recovery. From the actual effect, the MLF interest rate has moderately declined, which has better bridged the gap with market interest rates such as interbank certificates of deposit. The MLF operation is arranged after the LPR quotation, which also reflects the central bank's intention to dilute the color of the MLF policy interest rate.

2. Two departments: Coordinate the arrangement of 300 billion yuan of national debt funds to further support the "two new"

On July 25, the National Development and Reform Commission and the Ministry of Finance jointly issued the "Several Measures on Strengthening Support for Large-Scale Equipment Renewal and Consumer Goods Trade-in", which clearly stated that on the basis of the current "two new" work pattern and policy system, the National Development and Reform Commission will take the lead in arranging about 300 billion yuan of ultra-long-term special treasury bonds to strengthen support for large-scale equipment renewal and consumer goods trade-in. In terms of specific support methods, the "Measures" proposed to significantly increase the subsidy standards, reasonably expand the scope of financial support, and optimize the central and local sharing ratio. Zhao Chenxin, member of the Party Leadership Group and deputy director of the National Development and Reform Commission, said at a special press conference held on July 25 that it is planned to issue all the funds of about 300 billion yuan before the end of August.

Compared with the current policy, the Measures also significantly increased the subsidy intensity for key areas of renewal and replacement, and at the same time, required the central government to contribute more. For example, in terms of automobile scrapping and renewal, the subsidy standard for eligible automobile scrapping and renewal will be increased from the previous 10,000 yuan subsidy for the purchase of new energy passenger cars and 7,000 yuan for the purchase of fuel passenger cars to 20,000 yuan and 15,000 yuan respectively. In terms of household appliances, the Measures propose that individual consumers who purchase eight types of household appliances such as refrigerators, washing machines, televisions, and air conditioners with energy efficiency or water efficiency standards of level 2 or above will be given a subsidy of 15% of the product sales price; for products purchased with energy efficiency or water efficiency standards of level 1 or above, an additional subsidy of 5% will be given. In terms of financial interest subsidies for equipment renewal loans, the central government will increase the interest subsidy ratio for equipment renewal loans from 1 percentage point to 1.5 percentage points for eligible business entities.

3. The six major banks collectively "cut interest rates" and a new round of deposit interest rate cuts started

The state-owned banks lowered their deposit rates for the first time this year. Yesterday, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of China, Bank of Communications and Postal Savings Bank of China successively announced the latest RMB deposit interest rate table and lowered the RMB deposit interest rate. This is the fifth time that the big banks have taken the initiative to adjust the deposit interest rate since the establishment of the market-oriented adjustment mechanism for deposit interest rates. In April 2022, the People's Bank of China guided the interest rate self-discipline mechanism to establish a market-oriented adjustment mechanism for deposit interest rates, urging banks to refer to changes in market interest rates and reasonably adjust the deposit interest rate level. As of the end of 2023, major banks have taken the initiative to adjust deposit interest rates four times under the influence of the market-oriented adjustment mechanism for deposit interest rates. It is generally believed in the industry that the big banks' first reduction in deposit interest rates may lead small and medium-sized banks to follow up and adjust, and deposit interest rates will usher in a new round of reductions.

4. National Development and Reform Commission: Domestic gasoline and diesel prices will be reduced by 145 yuan and 140 yuan per ton respectively

According to the National Development and Reform Commission, a new round of refined oil price adjustment window will be opened at 24:00 on July 25. The details of this oil price adjustment are as follows: domestic gasoline and diesel prices will be reduced by 145 yuan and 140 yuan per ton respectively.

5. Shanghai: Create a national humanoid robot manufacturing innovation center

The General Office of the Shanghai Municipal People's Government issued the "Shanghai Action Plan to Promote Industrial Services to Empower Industrial Upgrading (2024-2027)", which proposed to promote the deep integration of artificial intelligence and manufacturing. Focus on the implementation of artificial intelligence in production, manufacturing, research and development, and design, accelerate the cultivation of suppliers that provide artificial intelligence solutions for the manufacturing industry, develop industrial corpus products such as fault analysis and process technology, promote the development of industrial large models, and promote the full process intelligence of the manufacturing industry. Create a national humanoid robot manufacturing innovation center, and create a number of humanoid robot empowerment manufacturing application scenarios in the fields of automobile, electrical equipment production and parts processing, and form robot production solutions. Focus on scientific and intelligent services and strengthen the application of large models in drug screening, molecular structure prediction, and drug inspection and testing.

6. Report: China's smartphone market shipments increased 10% year-on-year in the second quarter

According to the Canalys report, in the second quarter of 2024, the smartphone market in mainland China will further recover after experiencing the inflection point of recovery in the previous quarter, with shipments increasing by 10% year-on-year and returning to the level of 70 million units. Vivo's shipments increased by 15% year-on-year, returning to the top of the Chinese market. With its solid offline channels and the capture of "618" e-commerce demand, its shipments reached 13.1 million units and its market share reached 19%. OPPO firmly sat in the second place with 11.3 million units shipped thanks to the release of the new Reno 12 series. Honor released the new 200 series and ranked third with 10.7 million units shipped, a year-on-year increase of 4%. After Huawei's outstanding performance in the previous quarter, its growth rate slowed down slightly, ranking fourth with 10.6 million units shipped. Xiaomi boosted brand exposure through the release of the SU7 car. Its popular K70 series and flagship 14 series continued to maintain strong momentum, returning to the top five with 10 million units shipped and a year-on-year increase of 17%. Apple's shipment ranking dropped to sixth place, and its market share fell slightly by 2% year-on-year, accounting for 14% of the market share.

Theme Opportunities

1. RMB 300 billion will be used to support the “two new” work, and subsidies will be provided to home appliances and other fields

On July 25, the National Development and Reform Commission and the Ministry of Finance issued the "Several Measures on Further Supporting Large-Scale Equipment Updates and Trade-in of Consumer Goods", which will coordinate the arrangement of about 300 billion yuan of ultra-long-term special treasury bonds to further support large-scale equipment updates and trade-in of consumer goods. This includes subsidies for trade-in of eight types of household appliances, including refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household stoves, and range hoods, purchased by individual consumers with energy efficiency or water efficiency standards of level 2 or above. The subsidy standard is 15% of the product sales price. For products purchased with energy efficiency or water efficiency standards of level 1 or above, an additional subsidy of 5% of the product sales price will be given. Galaxy Securities believes that as the trade-in policy gradually takes effect, domestic demand for household appliances is expected to be supported, coupled with the gradual liquidation of overseas inventories, the trend of export improvement is expected to continue, and the prosperity of the household appliance industry is expected to continue to recover. Focus on three main investment lines. The first is the leading white appliance companies that are expected to benefit from the improvement in domestic and foreign sales. The second is the leading kitchen appliance companies that are expected to benefit from the optimization of the industry structure and the improvement in the bottoming out of the real estate sector. The third is cleaning appliances that actively promote channel expansion and accelerate the launch of new products.

2. Leading the development of the industry, the first manned eVTOL operation standard is about to be born

According to reports, recently, EHang Intelligent announced that the Civil Aviation Administration of China has officially accepted the civil unmanned manned aircraft operation certificate (AOC) applications submitted by its wholly-owned subsidiary Guangdong EHang General Aviation, which specializes in UAM operation services, and its joint venture operating company Hefei Heyi Aviation in Hefei, respectively. The two companies have been certified for unmanned manned aircraft operation licenses and operation qualifications, and have reached a consensus with the applicants on the review process, review subjects, and review framework. As the world's first unmanned manned electric vertical take-off and landing aircraft (eVTOL) AOC certification project accepted, this means that the world's first manned eVTOL operation standard system with epoch-making significance is about to be born. Low-altitude economy is a national strategic emerging industry and a typical representative of new quality productivity. 2024 may become the first year of the development of the low-altitude economy, and related industrial chains such as general aviation, operation support, and low-altitude operations will usher in development opportunities. Data released by the Civil Aviation Administration of China show that by 2025, the market size of China's low-altitude economy is expected to reach 1.5 trillion yuan, and by 2035 it is expected to reach 3.5 trillion yuan.

3. The world's first international standard for quantum communication networks led by China is released

According to reports, recently, the International Telecommunication Union (ITU), one of the world's three major international standardization organizations, approved the official release of the international standard "Security Requirements for Quantum Key Distribution Node Protection". This is the first international standard to systematically regulate the security implementation and deployment of trusted relay nodes, which can provide guidance for the safe implementation and operation of quantum secure communication network nodes. It is reported that the standard was formulated by relevant Chinese companies. As an important branch of quantum informatics, quantum communication has basically been put into practical use, especially in quantum secure communication, where there are already many engineering applications. With the support of national policies, my country's quantum communication industry has developed rapidly in recent years and is already at the world's leading level. According to the report "2024 Quantum Communication and Security Industry Development Outlook" by consulting agency ICV, it is estimated that the global quantum communication industry will reach US$19.6 billion by 2030.

company news

1. Dong Yuhui resigned from Dongfangxuan and started to run independently with Huixingxing

On July 25, Oriental Selection announced that its well-known anchor Dong Yuhui resigned. Oriental Selection also announced that it would sell its subsidiary Yuhui Tongxing to Dong Yuhui for a net asset value of 76.585 million yuan. Yu Minhong, chairman of the board of directors of Oriental Selection, subsequently responded several times that all the net profits of Yuhui Tongxing would be awarded to Dong Yuhui. The purchase money required by Dong Yuhui has been arranged to be paid in accordance with the rules of listed companies and the provisions of the company's articles of association. "The company is a gift to Yuhui." "Oriental Selection has not taken any of the income, including all profits, obtained by Yuhui Tongxing since its establishment. It has been left to Yuhui and Yuhui Tongxing to support their continued development." Yu Minhong said.

2. Baosteel plans to jointly invest, build and operate the Saudi heavy plate project with Saudi Aramco and others

On the evening of the 25th, Baosteel Co., Ltd. issued an announcement that the company, Saudi Aramco and Saudi Public Investment Fund jointly invested in the establishment of Saudi Heavy Plate Company, and the investment plan has changed. The current plan is: Baosteel Co., Ltd. will invest US$1 billion (equivalent to approximately RMB 7.23 billion, or 3.75 billion Saudi riyals) or other equivalent currencies, with a 50% equity ratio; Saudi Aramco and PIF will each invest US$500 million (equivalent to approximately RMB 3.615 billion, or 1.875 billion Saudi riyals) or other equivalent currencies, with each accounting for 25% of the equity ratio.

3. China Power Construction: Signed a 5.384 billion yuan contract for Abu Dhabi photovoltaic project

China Power Construction (601669) announced on the evening of July 25 that recently, the company's Abu Dhabi branch and its subsidiary Huadong Institute Middle East Co., Ltd. (HDEC) formed a consortium and signed the Abu Dhabi PV3 Ajiban 1.5GW photovoltaic project EPC contract with Ajiban Photovoltaic Project Holding Co., Ltd. The contract amount is approximately US$755 million, equivalent to approximately RMB 5.384 billion. The project is located in the Ajiban area of ​​Abu Dhabi, UAE, about 88 kilometers northeast of Abu Dhabi city and bordering Dubai. The main engineering content of the project is the design, construction, procurement, installation, commissioning, trial operation and operation and maintenance of a 1500MW photovoltaic power station and a 400kW booster station within the 24-month warranty period. The total project period is approximately 28 months.

4. Feilixin: Signed a 1.085 billion yuan cloud service intention cooperation agreement

Feilixin (300287) announced on the evening of July 25 that the company (hereinafter referred to as "Party B") intends to sign a "Cloud Service Intention Cooperation Agreement" with a leading artificial intelligence company (hereinafter referred to as "Party A"), with a total contract amount of 1.085 billion yuan (including tax). The service will be implemented in two batches, and the service period will be 60 months after the service provided by Party B is accepted by Party A. The contract revenue will be confirmed in installments during the service period according to the performance of the contract. This business will provide customers with more than 4000P computing power leasing services.

5. Sino Water: Whether the major asset restructuring can be finally implemented is subject to significant uncertainty

Guozhong Water (600187) issued an unusual announcement on the evening of July 25. The "Equity Transaction Intention Agreement" signed by the company for the acquisition of Zhuji Wenshenghui with a registered capital of no less than 232 million yuan is only an intention agreement. The final transaction method and the equity ratio of the transaction need to be further negotiated and determined by the parties to the transaction after the completion of the audit and evaluation, and shall be subject to the formal agreement signed by all parties. Whether it can be implemented in the end and the specific progress of implementation are subject to significant uncertainty. The transaction matters involved in this transaction will not have a significant impact on the company's business activities in the short term.

6. China Electric Motor: The company's control rights are expected to change and the stock will resume trading on July 26

China Electric Motor (603988) announced on the evening of July 25 that the company's controlling shareholder Ningbo Juntuo signed a "Share Transfer Agreement" with Highland Resources, and the company's shareholders Wang Jianyu and Wang Jiankai signed the "Share Transfer Agreement", "Agreement on Waiver of Voting Rights" and "Stock Pledge Agreement" with Highland Resources. Through the transfer of the agreement, Highland Resources acquired a total of 70.56 million shares of the listed company (accounting for 30% of the total number of shares of the company), thereby obtaining the controlling rights of the company. After the completion of all the equity changes, the company's controlling shareholder will be changed to Highland Resources, and the actual controller will be changed to Guo Wenjun. In addition, Highland Resources promised that the company or its affiliates will increase its holdings of the company's shares at an appropriate time within 12 months, and the amount of increase will not be less than 1% of the company's total share capital at that time. The company's stock resumed trading on July 26.

7. Jiaao Environmental Protection: EU's additional tariffs have limited impact on the company's biodiesel exports

Jiaao Environmental Protection (603822) announced on the evening of July 25 that on July 19, the European Commission announced a preliminary disclosure announcement on the anti-dumping investigation of Chinese biodiesel products. The main contents involving the company are as follows: The European Commission will impose a 36.40% temporary anti-dumping duty on the biodiesel products involved in Zhejiang Jiaao Green New Energy Co., Ltd., Zhejiang Dongjiang Energy Technology Co., Ltd., and Jiaao International Trade (Singapore) Co., Ltd. after the preliminary ruling is announced. No anti-dumping duty will be imposed on sustainable aviation fuel (SAF). The EU's imposition of temporary tariffs has had a certain impact on the company's biodiesel exports to the EU market, but the overall impact is limited. At present, the company is taking measures to actively respond, including but not limited to: 1. Continue to process into bio-based plasticizers and other products. 2. Actively develop domestic application scenarios for biodiesel and expand the domestic sales market. At present, the company has signed a strategic cooperation framework agreement with China Ship Fuel Co., Ltd. to jointly open up a low-carbon market in the transportation field. 3. Actively accelerate the construction and commissioning of the Lianyungang SAF project.

8. Dongfang Group: There may be a risk of delisting due to the stock price being below 1 yuan

Dongfang Group (600811) announced on the evening of July 25 that the closing price of the company's stock on July 25 was 0.98 yuan per share, which was lower than RMB 1. According to relevant regulations, if the daily closing price of the stock is lower than RMB 1 for 20 consecutive trading days, the company's stock may be delisted by the Shanghai Stock Exchange.

9. Junda shares: plans to invest US$280 million to build a high-efficiency battery production base in Oman

Junda Holdings (002865) announced on the evening of July 25 that the company plans to invest in the construction of a 5GW high-efficiency battery production base in the Sohar Free Trade Zone in the Sultanate of Oman. The total investment of the project is expected to be US$280 million and is expected to be completed and put into production in 2025.

10. Longjing Environmental Protection: Plans to invest in the first phase and second stage of the Laguocuo Salt Lake Source Network Load Storage Demonstration Project

Longjing Environmental Protection (600388) announced on the evening of July 25 that in order to meet the remaining 16 hours of power supply demand of the Laguo lithium mine project (steam load is provided by natural gas), its wholly-owned subsidiary Zijin Longjing plans to build the first phase and second phase power supply project in the form of BOO, and configure it according to the 75MW photovoltaic + 126.25MW/405MWh electrochemical energy storage solution. The project is expected to have a dynamic investment of 600 million yuan, and the project is expected to be put into operation in the third quarter of 2024. After the project is completed, the annual average power generation is expected to be 140 million kWh, and the estimated settlement price is 0.798 yuan/kWh (tax included).

11. Baota Industry: Plans to acquire 100% equity of Diantou New Energy and resume trading on July 26

Baota Industry (000595) announced on the evening of July 25 that the company intends to use the relevant assets and liabilities of the bearing business, except for some retained assets and liabilities, as the disposed assets, and exchange them with the 100% equity of Ningxia Electric Power Investment New Energy Co., Ltd. (hereinafter referred to as "Electric Power Investment New Energy") held by Ningxia Electric Power Investment Group Co., Ltd., which is the equivalent of the placed assets. The company will issue shares to purchase the difference between the placed assets and the disposed assets from Ningxia Electric Power Investment Group Co., Ltd. At the same time, the company intends to raise supporting funds. After the transaction is completed, the company's existing bearing business will be disposed of, and the main business will be changed to the investment, development and operation of wind power, photovoltaic and energy storage power stations, as well as the production and sales of marine electrical appliances. As of now, the specific transaction price of this transaction has not yet been determined. The company's stock resumed trading on July 26.

12. Hangzhou Bank's performance report: net profit in the first half of the year increased by 20.06% year-on-year

Hangzhou Bank (600926) released its first-half performance report on the evening of July 25, achieving operating income of 19.34 billion yuan in the first half of the year, a year-on-year increase of 5.36%; net profit attributable to shareholders of listed companies was 9.996 billion yuan, a year-on-year increase of 20.06%. As of the end of June 2024, the company's non-performing loan ratio was 0.76%, the same as at the end of the previous year, and the provision coverage ratio was 545.17%, a decrease of 16.25 percentage points from the end of the previous year, maintaining an excellent level overall.

Economic Calendar

Editor: Peng Bo

Proofread by: Wang Chaoquan