The Chinese stock market has recently experienced a downturn, with the Shanghai Composite Index dropping 1.34% to close at 3168.52 pointsSimilarly, the Shenzhen Component Index and the ChiNext Index saw declines of 1.02% and 2.02%, respectivelyThis week’s trading session highlighted a market filled with cautious sentiment as investors grappled with mixed economic indicators and global uncertainties.

Among the various sectors, there was a noticeable disparity in performance, as most classifications within the Shenwan sector indices recorded lossesNotably, the automotive, non-ferrous metals, and machinery sectors demonstrated some resilience, managing to report gains, while the retail, coal, and food and beverage sectors faced weaker outcomesThemes of investment interest emerged in niche markets, particularly in human-like robots, graphic processing units (GPUs), and automobile parts, all of which have shown heightened activity over the week.

On the institutional side, there was a revival in interest as 134 listed companies disclosed research records from institutional investors by the close on January 10. Among them, two firms, Yidian Tianxia and Guoguang Electric Appliance, attracted attention from over a hundred institutions, while Changjiang New Materials, AVIC Xifei, and Funeng Technology were subject to inquiries from over 80 organizations.

Yidian Tianxia stood out as the most favored stock this week, with a staggering 138 institutions seeking to engage with the company

As a prominent player in the smart marketing service niche, Yidian Tianxia specializes in performance advertising, brand marketing, and management of top media accountsThe company has been a part of the recent trend of "doubao" concept stocks — a term referring to firms that have significantly appreciated in value recently — with its shares rising over 103% from September 24, 2024, to January 10, 2025.

During this week’s institutional interactions, a key focus was on Yidian Tianxia’s collaboration with AppLovin, one of the largest independent mobile advertising platforms globallyOn January 7, AppLovin officially announced through its channels a strategic e-commerce partnership with Yidian Tianxia, signifying Yidian Tianxia as their first primary agent in the e-commerce space.

Yidian Tianxia expressed enthusiasm about this partnership, noting that as the first agency representing AppLovin, they are well-positioned to leverage both AppLovin’s services and its extensive branding resources

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The agreement is structured as a tiered commission contract, which limits the number of agents and ensures their qualifications remain exclusive, thereby protecting the profit margins for Yidian Tianxia.

Meanwhile, Guoguang Electric Appliance welcomed 109 institutional visitors this week, among which were notable asset managers like E Fund, FT Fund, and Citic Prudential FundDiscussions during the inquiries mainly revolved around the company's advancements in its AI business initiatives.

Executives at Guoguang Electric highlighted their commitment to the AI hardware sector, showcasing their production of AI speakers, smart screens, and AR/VR devicesThe company is also actively working on the sampling of AI headphones and AI glasses, maintaining close technical communication with key clientsThey are optimistic about the future success of these new product lines, including AI speakers, glasses, headphones, and even AI-integrated toys.

As the landscape for edge AI continues to evolve, Guoguang Electric has sharpened its focus on two main client segments for future growth

Their primary targets include consumer electronics firms, which blend channel and branding advantages and are expected to significantly boost product volumeAdditionally, the company is keen on engaging with large model customers, believing that the competitiveness of intelligent terminals largely hinges on the capabilities of these AI models.

Moreover, there has been a marked increase in attention towards the global aviation industry, with AVIC Xifei receiving visits from 80 institutional investors this weekAmong these were major public investment firms like Bosera Fund and Guotai Junan SecuritiesEstablished in 1997, AVIC Xifei holds a significant place in China's aerospace manufacturing, being the first publicly listed company in this industry, having floated on the Shenzhen Stock Exchange in June of the same year.

In discussions, AVIC Xifei revealed their responsibilities in designing, manufacturing, and servicing major aircraft components for models like the C919, ARJ21, and AG600. They maintain long-term partnerships with leading international aviation companies such as Airbus and Boeing, along with domestic firms.

Institutional inquiries primarily focused on understanding the unit value and gross margin performance of the C919 aircraft

AVIC Xifei responded by outlining their anticipated growth in the production capacity of the C919 structure, predicting continuous increases through 2024. As the largest supplier of structural components for the C919, the company undertakes the most technically challenging packages, including the middle fuselage and outer wing boxes.

With batch deliveries of the C919 on the horizon, AVIC Xifei expects to benefit from economies of scale and a learning curve that will progressively reduce production costs, thereby becoming a new pillar of profit growth for the company.

Additionally, the company shared that their C929 project is advancing systematically in line with the milestones set by the Commercial Aircraft Corporation of China, focusing on the development of prototype segments and components while actively seeking to take on more projects and increasing their share of responsibilities.