Investment Rating - The report assigns an "Outperform" rating for the company, with a target valuation range of HKD 12.90 to HKD 14.60, indicating a potential premium of 25% to 42% over the current stock price of HKD 10.30 [5][3]. Core Insights - The company is a leading gold mining enterprise in Henan Province, with a production scale of 7,000 tons of ore per day and an expected gold output of 5.2 tons in 2024, accounting for 1.37% of domestic gold production [1][14]. - The company has five major mining bases and a smelting processing plant, with a total gold reserve of approximately 131.81 tons (about 4.1 million ounces) as of the end of 2024 [1][46]. - The gold price is expected to remain strong due to a weakening dollar, increased central bank gold purchases, and geopolitical tensions affecting market sentiment [1][35][31]. Summary by Sections Company Overview - The company has established itself as a leading gold mining and smelting enterprise in Henan, with a focus on gold and its associated elements [14][23]. - It operates five mining bases and one smelting plant, with a daily ore processing capacity of 7,000 tons and a smelting capacity of 30 tons of gold annually [14][43]. Financial Performance - The company achieved a revenue of HKD 11.87 billion in 2024, a year-on-year increase of 12.7%, with a net profit of HKD 698 million, reflecting a significant growth of 119.4% compared to 2023 [4][23]. - The net profit margin is projected to be 43.1% in 2024, up from 29.8% in 2023, driven by rising gold prices and operational improvements [2][4]. Mining and Resource Quality - The average gold resource grade is 5.56 grams per ton, which is higher than the global average of 5.3 grams per ton for the largest gold mines [2][46]. - The company plans to focus on exploration and expanding mining capacity, with an expected annual production growth rate of over 10% for the next five years [2][3]. Market Dynamics - Central banks have significantly increased their gold purchases, with global central bank gold buying exceeding 1,000 tons for three consecutive years, indicating strong demand for gold as a strategic asset [35][37]. - The geopolitical landscape, including the ongoing Russia-Ukraine conflict and tensions in the Middle East, is likely to continue influencing gold prices positively [38][41].

Investment Rating - Industry rating: Recommended [4] Core Viewpoints - The geopolitical tensions and the decline of the US dollar index have led to a strong performance in gold prices, with COMEX gold rising 3.65% to $3,452.60 per ounce this week [23][25] - The market is increasingly pricing in the possibility of interest rate cuts by the Federal Reserve, with expectations of two cuts this year, the first likely in September [3][43] - The uncertainty in the Middle East, particularly regarding Iran and Israel, is contributing to a shift towards safe-haven assets like gold and silver [5][17] Summary by Sections Precious Metals - COMEX silver increased by 0.66% to $36.37 per ounce, while SHFE gold rose 1.42% to ¥794.36 per gram [23][25] - SPDR gold ETF holdings increased by 201,954.41 troy ounces, while SLV silver ETF holdings decreased by 1,090,806.40 ounces [25] - The gold-silver ratio rose by 2.97% to 94.93 this week [25] Base Metals - In the LME market, copper fell 0.24% to $9,647.50 per ton, while aluminum rose 2.10% to $2,503.00 per ton [49] - SHFE copper decreased by 1.17% to ¥78,010.00 per ton, and aluminum increased by 1.84% to ¥20,440.00 per ton [49] - The supply of copper is expected to tighten due to maintenance plans at domestic smelters and the ongoing geopolitical situation [7][8] Copper - The supply side is affected by a downward adjustment in the annual production forecast for the Kamoa-Kakula project and ongoing maintenance at the Cobre copper mine [7][44] - Domestic copper rod enterprises' weekly operating rate rose to 73.21%, but actual purchases are subdued due to high prices [7] - SHFE copper inventory decreased by 5.08% to 101,900 tons, while LME inventory fell by 13.54% to 114,500 tons [74] Aluminum - The aluminum industry operates at over 95% capacity, with minor maintenance plans causing limited supply disruptions [9][78] - Demand for aluminum products has softened, with a decrease in operating rates for various aluminum products [9][78] - SHFE aluminum inventory decreased by 6.91% to 110,000 tons, while LME inventory fell by 2.92% to 353,200 tons [11][78] Zinc - Zinc prices are under pressure due to weak demand, with domestic zinc ore processing fees rising [79] - SHFE zinc inventory decreased by 3.29% to 45,466 tons, while LME inventory fell by 4.36% to 131,000 tons [79]

Market Overview - The Hong Kong stock market showed a positive trend with the Hang Seng Index rising 1.63% to close at 24,181.43 points, while the Hang Seng China Enterprises Index and the Hang Seng Tech Index also saw significant gains of 1.74% and 2.78% respectively, marking a technical bull market as they rose over 20% from April lows [1] - The trading volume for the day reached 245.83 billion HKD, indicating strong market activity [1] Blue Chip Performance - Kuaishou-W (01024) led the blue-chip stocks with a 5.58% increase, closing at 62.4 HKD, contributing 16.34 points to the Hang Seng Index [2] - Other notable performers included WuXi Biologics (02269) up 5.48%, SMIC (00981) up 5.1%, while Budweiser APAC (01876) and Zijin Mining (02899) experienced declines of 2.06% and 1.64% respectively [2] Sector Highlights - Major technology stocks collectively rose, with Kuaishou increasing over 5% and Meituan and JD.com both rising over 4% [3] - The innovative drug sector showed strong performance, with stocks like Eucure Biopharma-B (01477) up 19.45% and King’s Ray Biotech (01548) up 16.14% [3][4] - The Chinese securities sector saw a broad increase, with firms like Everbright Securities (06178) rising 5.27% and GF Securities (01776) up 4.66% [4] Regulatory Developments - The China Securities Regulatory Commission approved the transfer of control for eight companies to Central Huijin, which may lead to a new wave of mergers and acquisitions in the securities industry [5] Consumer and Technology Trends - The upcoming Apple Worldwide Developers Conference (WWDC 2025) is expected to drive interest in consumer electronics and related stocks, with companies like AAC Technologies (01415) and Sunny Optical (02382) showing gains [6] - New consumption stocks also performed well, with companies like Bruker (00325) rising 22.34% [6][7] Commodity Movements - Gold stocks faced declines, with Shandong Gold (01787) down 3.99%, influenced by stable U.S. employment data which suggests the Federal Reserve may maintain its current interest rate stance [7] Notable Stock Movements - China Rare Earth (00769) surged 60% following news of eased export controls on rare earths, reflecting strong market interest [8] - Huicai Holdings (01180) experienced a dramatic drop of 47.54% before being suspended, indicating volatility in the entertainment equipment sector [9]

Group 1 - The stock price of Lingbao Gold (03330.HK) closed at HKD 12.400 on June 6, marking a 2.65% increase from the previous trading day, with an intraday high of HKD 12.560, reaching a nearly one-year high [1] - On the same day, the net capital inflow was HKD 2.2133 million, with a total of HKD 67.86934 million flowing in and HKD 65.65606 million flowing out [1] Group 2 - Lingbao Gold Group Co., Ltd. was established in September 2002 and listed on the Hong Kong Stock Exchange in January 2006, with Shenzhen Jieshi Weiye Holdings Co., Ltd. as the controlling shareholder [2] - The company specializes in the exploration, mining, smelting, refining, and online trading of gold and its associated elements, producing gold bars, silver bars, electrolytic copper, and sulfuric acid [2] - Lingbao Gold operates five major mining production bases and one smelting processing enterprise, with a production capacity of 7,000 tons of ore per day, 1,000 tons of gold concentrate per day, and an annual output of 30 tons of gold, 30 tons of silver, 15,000 tons of electrolytic copper, and 100,000 tons of industrial sulfuric acid [2] - The company aims to achieve over HKD 10 billion in annual sales revenue and over HKD 400 million in taxes and profits, focusing on efficiency, effectiveness, and profitability through innovation and talent [2]

Group 1 - As of June 3, a total of 105 stocks reached their 52-week highs, with Huayin International Holdings (00989), Dingyifeng Holdings (00612), and Youquhui Holdings (02177) leading the high rate at 57.26%, 37.93%, and 23.02% respectively [1] - The closing prices and highest prices for the top three stocks are as follows: Huayin International Holdings at 1.370 and 1.950, Dingyifeng Holdings at 0.770 and 0.800, and Youquhui Holdings at 3.550 and 3.580 [1] - Other notable stocks that reached their 52-week highs include China Antibody-B (03681) with a high rate of 21.62% and Fengcheng Holdings (02295) at 19.52% [1] Group 2 - The report also lists stocks that reached their 52-week lows, with Des Holdings (08437) showing the largest decline at -38.79%, followed by Dimi Life Holdings (01667) at -20.50% [3] - The closing prices and lowest prices for the top three stocks that reached their lows are: Des Holdings at 0.177 and 0.071, Dimi Life Holdings at 0.140 and 0.128, and Lujizhi Technology (01745) at 0.197 and 0.194 [3] - Other stocks with significant declines include GBA Group (00261) at -11.48% and Baide International (02668) at -10.88% [3]

Group 1 - Hong Kong gold stocks have risen significantly, with China Silver Group (00815.HK) increasing by 8.6% [1] - Tongguan Gold (00340.HK) has seen a nearly 6% rise [1] - Lingbao Gold (03330.HK) has increased by 2.5% [1] - Chifeng Jilong Gold Mining (06693.HK) has risen by 1.8% [1]

Group 1 - The core viewpoint of the article highlights the continued decline in gold stocks, with notable drops in specific companies such as Chifeng Jilong Gold Mining Co., Ltd. [1] - Chifeng Gold's stock price decreased by 4.76%, while Lingbao Gold Co., Ltd. fell by 4.09%, Tongguan Gold Co., Ltd. by 3.49%, and China Gold International Resources Corp. Ltd. by 2.86% [1] - The decline in gold stocks is linked to a recent ruling by a U.S. federal court that blocked President Trump's tariff policy announced on April 2, which was deemed an overreach of authority [1]

Group 1 - The 10-year U.S. Treasury yield rose by 11.16 basis points to 4.5985%, marking the first time since February 13 that it surpassed the 4.6% threshold [1] - The 20-year Treasury yield increased by 13.21 basis points, reaching a daily high of 5.1247%, approaching the peak of 5.2838% from November 1, 2023 [1] - The 30-year Treasury yield climbed by 12.27 basis points to 5.0923%, nearing the October 23, 2023 peak of 5.1764% and the psychological 6% level [1] Group 2 - Concerns over U.S. fiscal sustainability have led to a significant sell-off in long-term Treasuries, with the 30-year yield surpassing 5%, raising worries about future financing costs [1] - The U.S. stock market experienced a sharp decline, with major indices recording their worst single-day performance in a month, influenced by the pressures from the bond market [1] Group 3 - From a medium to long-term perspective, the decline in U.S. dollar credit and the onset of a Federal Reserve rate cut cycle, along with global central banks increasing gold purchases, suggest that gold prices may continue to trend upward after a short-term adjustment [2] - The easing of tariff policies has improved market risk appetite, putting pressure on the safe-haven attributes of precious metals in the short term [2] - In the context of global trade policy uncertainty and ongoing central bank gold purchases, gold prices are expected to exhibit a pattern of rising more easily than falling [2] Group 4 - Companies related to gold and precious metals include Zijin Mining (02899), Shandong Gold (01787), Zhaojin Mining (01818), Lingbao Gold (03330), China Gold International (02099), WanGuo Gold Group (03939), LaoPu Gold (06181), and JiHai Resources (02489) [3]

Group 1 - Hong Kong gold stocks declined, with Lingbao Gold (03330.HK) and Zhaojin Mining (01818.HK) falling over 6% [1] - Shandong Gold (01787.HK) and Chifeng Jilong Gold Mining (06693.HK) dropped by 5.5% [1]

Group 1: Company Performance - Hu Shang Ayi's stock surged by 62.48% in the dark market, reflecting strong market optimism for its future as a ready-to-drink beverage company, with projected revenues of 2.199 billion, 3.348 billion, and 3.285 billion RMB for 2022, 2023, and 2024 respectively [1] - Lingbao Gold expects a net profit of no less than 250 million RMB for Q1 2025, driven by increased gold production and improved operational efficiency, indicating strong competitiveness in the gold market [2] - BeiGene reported a total revenue of 8.048 billion RMB for Q1 2025, a 50.2% year-on-year increase, although it still posted a net loss of 94.5 million RMB, showing signs of financial improvement [4] Group 2: Market Reactions and Strategic Moves - Fengqiao Capital has liquidated all its shares in Pop Mart due to the expiration of its first RMB fund, which may impact Pop Mart's short-term stock price but does not undermine its strong fundamentals [3] - Lifen Holdings is in discussions regarding potential share reductions to restore public float, indicating a strategic move to enhance investor confidence, though no binding agreements have been reached yet [5] Group 3: Market Overview - The Hang Seng Index closed at 22,691.88 with a slight increase of 0.13%, while the Hang Seng Tech Index and the National Enterprises Index saw declines of 0.75% and 0.23% respectively, reflecting mixed market sentiments [6]