1. Core Portfolio: Zhiyun Shares, Zhongjin Environment, Dalian International, Guorui Technology, Aerospace Electronics, Tianhai Defense.

2. Key Portfolio: Robotics, Southern Huitong, Southern Bearing, Fangda Chemical, Taihai Nuclear Power, Connie Electromechanical, Jingshan Light Machinery, AVIC Electromechanical, Zhonghe Technology, Haimo Technology, Guorui Technology, Longma Environmental Sanitation, Jiai Technology, Keda Intelligent, Chuangli Group, and Huanghe Cyclone.

3. Key Viewpoint of the Week: Currently, overall market risk appetite has decreased, and the consensus is to seek certainty and organic growth. The 3C automation and rail transit industries, especially high-speed rail and urban rail transit, have relatively certain organic growth. Next year is expected to be a big year for the iPhone, and demand for equipment will increase significantly. We recommend investing closely in the supply chain. China Railway Corporation resumed freight car bidding after the general manager replacement on October 9th. Furthermore, high-speed rail bidding has not yet begun this year. Based on past experience, we expect EMU bidding to resume soon. Defense and military industry, as well as military-civilian integration, represent strategic national opportunities. With continued policy support, these sectors will generate cyclical growth stocks.

4. Investment Opportunity Overview: Opportunity 1: 3C automation continues to thrive, with a forward-looking investment strategy aligned with the iPhone: We remain optimistic about the continued growth of the 3C industry chain. Key factors include: the 3C industry chain's low automation rate, which presents significant room for improvement; an accelerated upgrade cycle, with its consumer product attributes becoming increasingly prominent; 3C equipment has undergone a shift in the supply chain from Japan, South Korea, Taiwan, and mainland China, where mainland equipment, with its high cost-effectiveness and service advantages, is undergoing large-scale domestic substitution; 3C automation relies on technology and presents relatively high barriers to entry. Companies with established experience are expected to continue to benefit from the industry's growth. At this point in time, we recommend actively allocating capital to follow Company A's production expansion next year.

2017 marks the tenth anniversary of the iPhone, and we expect sales of the 10th anniversary model to surpass historical peaks. Furthermore, due to labor shortages, we anticipate the use of more automated equipment on production lines to replace manual labor. Pay attention to the new technologies Company A will adopt, which may include OLED, double-sided glass, multiple cameras, fast and wireless charging, and facial recognition. Sales growth and new features are expected to drive demand for these devices.

In addition, other companies catching up with Company A's pace are expected to drive a sustained rally. Recommended stocks include Zhengye Technology, Zhiyun Shares, Changyuan Group, Dongshan Precision, Shengli Precision, and Haozhi Electromechanical. Opportunity 2: Expectations are growing that China Railway Corporation will resume bidding, creating opportunities for rail transit equipment. On October 13, China Railway Corporation resumed bidding for 15,600 railway freight cars. This resumption of bidding followed the replacement of its general manager on October 9. Furthermore, high-speed rail bidding has not yet commenced this year, but based on past experience, it is expected that EMU bidding will resume soon. From January to July, my country's railway construction investment reached 369.7 billion yuan, a year-on-year increase of 9.6%. According to the 800 billion yuan target planned at the beginning of the year, this indicates that railway investment will grow rapidly in the second half of the year.

We reiterate our optimism about the continued upward trend in the rail transit industry chain, operations and maintenance, and the localization of core components. We focus on Zhonghe Technology, Kangni Electromechanical, Dinghan Technology, Yonggui Electric, and Chunhui Shares, all of which have high performance elasticity. We also focus on Xinzhu Shares (which is attracting strategic investors and transitioning to a PPP model for trams). Opportunity Three: President Xi Jinping Attends the Military-Civilian Integration Conference, Further Accelerating the Development of Deep Military-Civilian Integration, Civilian-Military Integration + National Defense Informatization: President Xi Jinping and seven members of the Standing Committee of the NPC attended the Military-Civilian Integration Achievement Conference this week. The President emphasized that military-civilian integration is a national strategy and that we must accelerate the formation of a deeply integrated development pattern.

At the end of the month, the annual highest-level military-civilian integration exhibition will be held in Beijing. Sponsored by the General Armament Department and attended by members of the Standing Committee, the exhibition will bring together nearly 100 outstanding civilian-military enterprises, further deepening the national strategic policy of civilian-military integration.

For the military industry sector, focus on several key investment themes. my country will experience a peak in national defense informatization during the 13th Five-Year Plan period, with optoelectronics, radar, satellites, artificial intelligence, computers, and communications technologies as key areas of informatization development. In the middle of this month, Shenzhou 11 was successfully launched, mainly undertaking the two core tasks of astronaut transportation and space station technology verification.

my country's aerospace industry has entered a stage of rapid growth and normalization of aerospace events. The layout of aerospace is a long-term logic.

(1) The performance elasticity of the military-civilian integration sector and national defense informatization is relatively large: focus on civilian participation in the military, Tianhai Defense, Galaxy Electronics, Fangda Chemical, Hangxin Technology, Tianyin Electromechanical; continue to recommend, Huaxun Ark, SiChuang Electronics, Guorui Technology, etc.

(2) The upstream and downstream industrial chains of aerospace for rocket manufacturing and launch, satellite manufacturing and application: Aerospace Electronics, Aerospace Development, etc.

5. Last week's report view: AVIC Helicopter Co., Ltd.: There is a huge gap in the military field, and the only platform of AVIC helicopter has broad prospects; Xiangdian Co., Ltd.: Ships are fully electric propulsion, Xiangdian is full speed ahead; 3C Automation Series Special Topic 1: "Consumer goods" in industrial equipment.

6. Risk warning: The macro economy continues to decline, and emerging transformation companies fail to meet expectations.