The market bottomed out yesterday, with the three major indices showing mixed changes. The total trading volume of the Shanghai and Shenzhen stock exchanges for the day was 1.08 trillion yuan, a decrease of 200.3 billion yuan compared to the previous trading day. In terms of sectors, beauty care, e-commerce, food, and banking led the gains, while duty-free, ports, Hainan, and rail transit sectors led the declines. As of yesterday's close, the Shanghai Composite Index rose 0.15%, the Shenzhen Component Index fell 0.27%, and the ChiNext Index fell 0.13%. At today's brokerage morning meetings, China Securities suggested that the rare earth sector is both offensive and defensive, recommending active attention; Huatai Securities stated that the AI healthcare industry trend is accelerating; CICC believes that the total telecom capital expenditure in 2025 will be under pressure, with attention on structural growth opportunities such as computing power and 5G-A. China Securities: The Rare Earth Sector Is Both Offensive and Defensive, Recommend Active Attention China Securities stated that recently, two ministries issued an announcement on export control measures for seven types of medium-heavy rare earth-related items, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. Driven by both export control policies and the release of end-use demand, downstream performance has been strong, with increased procurement activity pushing prices slightly higher. Trump's aggressive tariff policies, combined with China's control of about 70% of global rare earth mines, about 90% of rare earth smelting and separation, and about 90% of rare earth magnet capacity, give China a complete industry chain and strong self-control capabilities. The introduction of dual controls on production and exports provides a strong countermeasure to US tariff policies. On the demand side, rare earth magnets are essential materials for high-performance, energy-efficient motors. A single humanoid robot uses over 2kg of rare earth permanent magnets, comparable to the amount used in a NEV. Musk predicts that the demand for humanoid robots will reach the level of 10 billion units in the future, far exceeding the demand for NEVs, indicating a very broad future space. The rare earth sector is both offensive and defensive, and active attention is recommended. Huatai Securities: The AI Healthcare Industry Trend Is Accelerating Huatai Securities stated that on April 10, the US FDA announced a series of methods to reduce, improve, or replace animal testing requirements in the R&D of monoclonal antibody therapies and other drugs, including AI-based toxicity calculation models and cell line and organoid toxicity tests conducted in laboratory environments. A pilot project is planned to launch in 2025, allowing some pharmaceutical companies to completely skip animal experiments under FDA supervision, with a full policy update expected to be completed by 2026. This FDA policy will further promote the coverage of AI in new drug development, accelerating from chemical synthesis to preclinical and clinical trial biological stages, driving innovative drug companies to increase investment in AI drug discovery platforms. It is reiterated that 2025 will see a leap in "AI + healthcare," and related investment opportunities should be valued. CICC: Total Telecom Capital Expenditure in 2025 Under Pressure, Focus on Structural Growth Opportunities Such as Computing Power and 5G-A CICC stated that the 2024 financial reports of the three major telecom operators show that their total capital expenditure for 2024 was 318.9 billion yuan, down 9.7% YoY, a decline higher than the 4.5% guidance at the beginning of 2024. Looking ahead to 2025, the total capital expenditure guidance for the three operators is down 9.1% YoY to 288.9 billion yuan, with the investment scale continuing to narrow. Structurally, the investment focus of operators is further tilting towards computing power networks, with China Mobile/Telecom/Unicom guiding computing power investments up 0.5%/22%/28% YoY, while traditional mobile & fixed network construction has entered a period of high-quality and steady development focusing on investment efficiency. Future upgrades in 5G-A, 400G OTN, and 50G PON are expected to boost incremental investment in wireless/wired networks.

【SMM Analysis：Mobile phone shipments are up YoY, and the price of its raw material Co3O4 is difficult to rise or fall】The domestic mobile phone market operation analysis report for July 2024 released by the China Academy of Information and Communications Technology shows that in July 2024, domestic mobile phone shipments reached 24.204 million units, up 30.5% YoY.

The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) said at a press conferences that it will strengthen the ability to support important energy resources, fully promote domestic exploration of important energy and mineral resources, increase reserves and production, and promote the diversification of oil and gas resource imports.

Chinese autonomous driving tech company MINIEYE announced on Feb.17 its successful delivery of an L4 autonomous minibus project in Suzhou, Jiangsu Province.

Hall displaying electric cars at the ongoing Shanghai Auto Show (April 18-27) is a key battleground, as car makers are racing to catch up with Chinese competitors in the EV market.

Polaris Energy Storage Network learned that the supporting 100MW/200MWh ESS project for the 1,000MW PV power generation composite project in Shizuishan City by Ningxia Xinghai New Energy Co., Ltd. has announced the winning candidates for the PC project. The first winning candidate is China Railway 11th Bureau Group Co., Ltd., with a bid price of 1.1598 billion yuan, equivalent to a unit price of 0.58 yuan/Wh. The second winning candidate is China Construction Third Engineering Bureau Group Co., Ltd., with a bid price of 1.1670 billion yuan, equivalent to a unit price of 0.584 yuan/Wh. The third winning candidate is PowerChina Beijing Engineering Corporation Limited, with a bid price of 1.1692 billion yuan, equivalent to a unit price of 0.585 yuan/Wh. The bid inviter is Ningxia Xinghai New Energy Co., Ltd., and the construction site is located in Hongyazi Township, Pingluo County, Shizuishan City. The project involves the construction of a new 100MW/200MWh ESS power station, with the main construction content including the installation of 20 sets of 5MW/10MWh liquid-cooled ESS units. Each 5/10MWh liquid-cooled battery system consists of battery modules, combiner cabinets, BMS systems, temperature control systems, and fire protection systems. Each 10MWh ESS unit includes 24 battery clusters, with each cluster containing 4 battery modules, and the battery modules are formed by 1P104S battery cells.

At the 2024 (19th) SMM Copper Industry Conference and Copper Industry Expo - Copper Billet Industry Development Forum, jointly organized by SMM and Shandong Humon Smelting Co., Ltd., Shenzhen Connector Industry Association research Center Director Zhou Mingliang shared the application and prospects of copper semis in connectors.

Yitong Century announced that the company has been selected as the winning bidder for the Guangdong Unicom comprehensive maintenance 5G procurement project for 2025-2026. The project services include comprehensive maintenance, government and enterprise installation, relocation, and repair services across 8 specialized maintenance areas, as well as Guangdong Unicom line and supporting facility renovation services. The total scale of awarded bids amounts to 148 million yuan (excluding tax), with Section 6 in the non-construction area accounting for 14.00% of the bid, amounting to 69.7 million yuan, and Section 5 in the construction area accounting for 15.61%, amounting to 78 million yuan. This selection aligns with the company's business development plan. If a formal contract is signed and successfully implemented, it will have a positive impact on the company's future business growth and further expansion in Guangdong.

On September 5, the Ministry of Industry and Information Technology and the Ministry of Finance jointly issued the Action Plan for Steady Growth of the Electronic Information Manufacturing Industry in 2023-2024.

BAIC Group and China Mobile Group Beijing Co., Ltd. (Beijing Mobile) signed a strategic cooperation agreement on December 7 in areas such as cloud-based new infrastructure services and enterprise digi...