Industry Rating - The industry rating for the electrolytic aluminum sector is maintained at "Outperform" [1] Core Viewpoints - The electrolytic aluminum sector is characterized by a perfect blend of resilience and dividend value, indicating a revaluation process is underway [1][3] - The sector's average dividend yield is projected to be 6.0% by the end of 2024, ranking it first among major high-dividend industries, with China Hongqiao's yield reaching 13.7% [2][19] - The report emphasizes the transition of the electrolytic aluminum stocks from being viewed as highly cyclical assets to becoming quality scarce assets with both price elasticity and dividend support [9][19] Summary by Sections 1. Current Dividend Yield of the Electrolytic Aluminum Sector - As of the end of 2024, the weighted average dividend yield for the electrolytic aluminum sector is estimated at 6.0%, leading among high-dividend industries [2][19] - China Hongqiao's dividend yield is notably high at 13.7%, significantly above other industry leaders [20][21] - The overall trend indicates a clear increase in dividend levels across the sector, with many companies raising their dividend guidance for 2025 [24] 2. Sources of Dividend Value Beyond Resilience - The sector's profitability is expected to remain high due to a tightening supply-demand balance, with domestic production capacity nearing its ceiling [6][28] - The report highlights that the capital expenditure peak has passed, leading to improved asset structure and quality within the sector [45][52] - The transition from a focus on scale expansion to quality enhancement is evident, with a clear path for converting high profits into cash flow and shareholder returns [6][39] 3. Will the Valuation of the Electrolytic Aluminum Sector Increase? - Historical comparisons with coal and China Hongqiao suggest that the market is willing to assign higher valuations to dividend-paying assets, recognizing their asset quality and stable cash flows [4] - The price-to-earnings (PE) ratios for leading companies in high-dividend sectors have shown significant improvement since 2023, indicating potential for further valuation increases [4][19] - The overall trend in the sector shows a marked increase in dividend payout ratios, with several companies indicating higher future dividends [24] 4. Stock Selection in the Electrolytic Aluminum Sector - The report recommends focusing on high-dividend companies such as China Hongqiao and Zhongfu Industrial, as well as those with increasing dividend potential like China Aluminum and Shenhuo [5] - The sector is viewed as a combination of offensive aluminum price exposure and defensive dividend asset characteristics, suggesting a favorable investment outlook [5][9]

Core Insights - The superconducting concept sector saw a rise of 2.03%, ranking fourth among concept sectors, with 16 stocks increasing in value [1] - Notable gainers included GuoLan Testing, which hit a 20% limit up, and Dongfang Tantalum, which also reached the limit up, while Chenguang Medical, Zhongfu Industrial, and Bofei Electric had increases of 16.01%, 5.98%, and 3.39% respectively [1] - The sector experienced a net inflow of 0.50 billion yuan from main funds, with Dongfang Tantalum leading the inflow at 1.79 billion yuan [2][3] Sector Performance - The superconducting concept sector was among the top performers, with a daily increase of 2.03% [2] - Other sectors with notable performance included Shenzhen State-Owned Enterprise Reform at 6.62% and MLOps at 2.41%, while the Cultivated Diamond sector saw a decline of 2.94% [2] Fund Flow Analysis - The leading stocks in terms of net fund inflow ratios were Dongfang Tantalum at 16.31%, GuoLan Testing at 15.60%, and Zhongfu Industrial at 9.89% [3] - The top stocks by net fund inflow included: - Dongfang Tantalum: 178.55 million yuan, with a daily increase of 10.00% and a turnover rate of 7.80% [3] - GuoLan Testing: 72.51 million yuan, with a daily increase of 20.00% and a turnover rate of 9.70% [3] - Zhongfu Industrial: 92.34 million yuan, with a daily increase of 5.98% and a turnover rate of 3.63% [3]

Core Insights - Zhongfu Industrial Co., Ltd. experienced a stock price increase of 5.49%, reaching 6.53 CNY per share, with a trading volume of 719 million CNY and a turnover rate of 2.81%, resulting in a total market capitalization of 26.172 billion CNY [1] Company Overview - Zhongfu Industrial, established on January 28, 1997, and listed on June 26, 2002, is located in Gongyi City, Henan Province. The company primarily engages in coal mining, thermal power generation, electrolytic aluminum, and deep processing of aluminum products [1] - The revenue composition of Zhongfu Industrial is as follows: non-ferrous metals account for 94.76%, electricity for 9.96%, coal for 2.71%, and other businesses for 0.47% [1] Fund Holdings - One fund under China Europe Fund holds a significant position in Zhongfu Industrial. The China Europe National Index 2000 Enhanced A (018663) held 115,800 shares in the second quarter, representing 0.45% of the fund's net value, making it the third-largest holding [2] - The China Europe National Index 2000 Enhanced A fund was established on July 18, 2023, with a latest scale of 66.8481 million CNY. Year-to-date returns are 27.83%, ranking 1713 out of 4218 in its category, while the one-year return is 39.08%, ranking 897 out of 3875 [2] - The fund manager, Qian Yating, has a tenure of 3 years and 356 days, managing assets totaling 3.46 billion CNY, with the best return during this period being 56.34% and the worst being -14.61% [2] - Co-manager Song Ting has been in position for 245 days, overseeing assets of 2.354 billion CNY, with a best return of 29.12% and a worst return of -0.05% during her tenure [2]

Group 1 - The core point of the news is the significant increase in the stock price of Zhongfu Industrial, which rose by 5.45% to 6.58 CNY per share, with a trading volume of 505 million CNY and a turnover rate of 1.98%, resulting in a total market capitalization of 26.372 billion CNY [1] - Zhongfu Industrial, established on January 28, 1997, and listed on June 26, 2002, is primarily engaged in coal mining, thermal power generation, electrolytic aluminum, and deep processing of aluminum products [1] - The company's main business revenue composition is as follows: non-ferrous metals 94.76%, electricity 9.96%, coal 2.71%, and other businesses 0.47% [1] Group 2 - From the perspective of fund holdings, Huatai Baoxing Fund has a significant position in Zhongfu Industrial, with its Huatai Baoxing Growth Select A fund (005904) reducing its holdings by 2.6191 million shares in the second quarter, now holding 6.1123 million shares, which accounts for 4.13% of the fund's net value, ranking as the fifth-largest holding [2] - The Huatai Baoxing Growth Select A fund, established on June 7, 2018, has a current scale of 624 million CNY and has achieved a year-to-date return of 34.33%, ranking 1941 out of 8162 in its category [2] - The fund manager, Tian Rong, has been in position for 2 years and 297 days, with the fund's total asset size at 834 million CNY, achieving the best return of 47.07% and the worst return of 39.74% during his tenure [2]

Core Viewpoint - The company, Henan Zhongfu Industrial Co., Ltd., is set to hold a performance briefing for the third quarter of 2025 on October 28, 2025, to discuss its operational results and financial status with investors [2][3]. Group 1: Meeting Details - The performance briefing will take place on October 28, 2025, from 10:00 to 11:00 AM [5]. - The meeting will be held at the Shanghai Stock Exchange Roadshow Center and will be conducted in an interactive online format [4][5]. - Investors can submit questions from October 21 to October 27, 2025, through the Roadshow Center website or via the company's email [6]. Group 2: Participation Information - Investors can participate in the briefing by logging into the Shanghai Stock Exchange Roadshow Center on the scheduled date and time [4][5]. - The company will address commonly asked questions during the briefing to enhance investor understanding of the third quarter's performance [3][6]. - Contact information for inquiries includes representatives Zhang Zhiyong and Wang Yanfang, with a provided phone number and email address [6].

证券代码：600595 证券简称：中孚实业 公告编号：2025-057 河南中孚实业股份有限公司 关于召开 2025 年第三季度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 会议召开时间：2025 年 10 月 28 日（星期二）10:00-11:00 会 议 召 开 地 点 ： 上 海 证 券 交 易 所 上 证 路 演 中 心 （ 网 址 ： https://roadshow.sseinfo.com/） 会议召开方式：上证路演中心网络互动 投资者可于 2025 年 10 月 21 日（星期二）至 10 月 27 日（星期一）16:00 前登录上证路演中心网站首页点击"提问预征集"栏目或通过公司邮箱 zhqb@zfsy.com.cn 进行提问。公司将在说明会上对投资者普遍关注的问题进行回 答。 河南中孚实业股份有限公司（以下简称"公司"）将于 2025 年 10 月 28 日发 布公司 2025 年第三季度报告，为便于广大投资者更全面深入地了解公司 2025 年第三季度经营成果、财务状况， ...

Investment Rating - The report maintains a "Buy" rating for the non-ferrous metal sector, particularly highlighting the attractiveness of resource stocks due to historically low valuations expected by 2026 [1][2]. Core Insights - The ongoing tariff disputes and the potential for U.S. interest rate cuts have driven a surge in precious metal prices, while industrial metals have seen a temporary halt in price increases due to tariff threats [1]. - The report emphasizes the long-term bullish narrative for non-ferrous metals, particularly copper, and suggests that short-term adjustments present buying opportunities [1]. - Key focus areas include copper, silver, aluminum, cobalt, rare earths, tungsten, antimony, and uranium, along with new materials related to technological growth [1]. Industry Overview - The non-ferrous metal sector consists of 236 listed companies with a total market capitalization of 586.38 billion yuan, representing 5.7% of the overall market [2]. - The sector's performance over the past month shows an absolute increase of 2.7%, a 6-month increase of 48.5%, and a 12-month increase of 61.6% [3]. - The report notes that the precious metals index has outperformed other sub-sectors, with significant gains in silver and gold prices due to geopolitical tensions and economic uncertainties [4]. Specific Metal Insights - **Copper**: As of October 16, copper inventories increased by 11,200 tons to 177,500 tons, while total inventories decreased by 51,700 tons year-on-year. The report anticipates a tightening supply situation for copper, with long-term price increases expected [4]. - **Aluminum**: Domestic aluminum ingot inventories decreased to 627,000 tons, indicating a positive supply-demand balance. However, macroeconomic risks may still pressure aluminum prices [4]. - **Cobalt**: Cobalt prices have risen due to supply constraints from the Democratic Republic of Congo, with strong demand from the electric vehicle and consumer electronics sectors [4]. - **Rare Earths**: The report highlights a mixed performance in rare earth prices, with a significant drop in praseodymium-neodymium oxide prices due to increased supply and cautious purchasing from downstream manufacturers [4]. New Materials and Technologies - The report discusses advancements in fusion energy and the potential for increased demand for uranium, with a focus on companies involved in uranium mining and production [5]. - It also notes the optimistic outlook for lithium and nickel due to strong demand in battery manufacturing, with prices for lithium carbonate showing slight increases [5].

Investment Rating - The investment rating for the non-ferrous metals industry is "Positive" (maintained) [3] Core Views - The report anticipates a potential upward trend in copper prices due to expected shortages in copper mines, particularly with the global second-largest copper mine, Grasberg, facing production halts. The report suggests that the copper supply-demand balance may shift from tight equilibrium to shortage by 2026 [4] - The report highlights the performance of various metals, including aluminum, lithium, and cobalt, with specific recommendations for companies to watch in each segment [4] Summary by Sections 1. Industry Overview - Recent macroeconomic developments include a new round of US-China trade negotiations and comments from Trump regarding the unsustainability of high tariffs on China [8] 2. Market Performance - The overall performance of the non-ferrous metals sector saw a decline, with the Shanghai Composite Index down 1.47% and the Shenwan Non-Ferrous Metals Index down 3.07%, underperforming the Shanghai Composite by 1.60 percentage points [10][11] 3. Valuation Changes - The PE_TTM for the Shenwan Non-Ferrous Metals Index is 26.96, down 1.78 from the previous week, while the PB_LF is 3.22, down 0.22 [19][22] 4. Copper - Copper prices have seen a decline, with LME copper down 1.86% and SHFE copper down 1.77%. However, the report indicates a potential for price recovery due to supply disruptions and seasonal demand [21][44] 5. Aluminum - Aluminum prices are experiencing fluctuations, with LME aluminum down 0.45% and SHFE aluminum down 0.47%. The report notes a decrease in inventory levels, which may support price stability [33][44] 6. Lithium - Lithium prices are showing mixed trends, with lithium carbonate down 0.27% and lithium spodumene up 0.83%. The report suggests that lithium prices may stabilize due to seasonal demand [73] 7. Cobalt - Cobalt prices have increased, with MB cobalt up 5.40% to $20.98 per pound, driven by changes in export regulations from the Democratic Republic of Congo [86]

Investment Rating - The report maintains a "Buy" rating for the industry, highlighting several key companies as investment opportunities [4]. Core Views - The report emphasizes that tariff uncertainties continue to disrupt the market, leading to increased demand for safe-haven assets like gold and silver, which have reached new highs [1][2]. - Industrial metal prices are expected to remain strong due to supply disruptions and optimistic macroeconomic forecasts, despite short-term volatility caused by tariffs [2][3]. - Energy metals, particularly lithium and cobalt, are projected to perform well due to strong demand from the electric vehicle and energy storage sectors [3]. - Precious metals are benefiting from strong central bank purchases and high expectations for interest rate cuts, which are expected to support gold prices in the medium to long term [3]. Summary by Sections Industrial Metals - Tariff-induced short-term volatility is affecting copper prices, but supply disruptions are expected to support prices [2]. - Aluminum demand remains resilient, with a decrease in social inventory indicating a potential price stabilization [2][19]. - The report highlights key companies in the industrial metals sector, including Luoyang Molybdenum, Zijin Mining, and China Aluminum [2]. Energy Metals - Cobalt prices are rising due to new export quota regulations from the Democratic Republic of Congo, while lithium demand remains strong due to the growth of the electric vehicle market [3]. - Key companies recommended in this sector include Huayou Cobalt and Tianqi Lithium [3]. Precious Metals - Gold prices are expected to continue rising due to strong demand from central banks and geopolitical uncertainties [3]. - Recommended companies in the precious metals sector include Western Gold, Shandong Gold, and Zijin Gold [3].

Summary of Conference Call on Aluminum and Copper Market Dynamics Industry Overview - The current copper-to-aluminum ratio is at a historical high of approximately 4.2 times, with expectations for a correction during the latter part of the interest rate cut cycle, suggesting aluminum may replicate copper's upward trend over the next three to five years [1][2][8] - The aluminum sector is currently undervalued, with an average dividend yield of 5-10% and a price-to-earnings (PE) ratio of 8 times, projected to rise from 8-9 times to 10-15 times by 2026, potentially doubling or more [1][2][15] Key Insights and Arguments - The inflation cycle typically sees gold leading, followed by silver, then copper and aluminum; thus, aluminum, which is currently at a low price point, should be a focus [1][3] - The average valuation metrics for the non-ferrous metals sector include a price-to-book (PB) ratio of 2 times, a return on equity (ROE) of 20%, and a PE ratio of 8 times, indicating a combination of resilience and dividend defensiveness [1][3] - The copper-aluminum price bottom usually occurs at the end of an interest rate cut cycle, aligning with economic recovery phases [4][5] Market Dynamics - The supply of electrolytic aluminum in China has reached its capacity ceiling, while uncertainties in overseas energy consumption will gradually restore the copper-to-aluminum ratio to normal levels [1][9] - Fund holdings in the sector are significantly lower than the previous year, with only 4.7% to 4.8% allocation in Q2, indicating a relatively low market crowding and room for recovery [1][7] Future Projections - Aluminum is expected to become a resource commodity similar to copper due to its price elasticity and diverse demand, with a current profit margin of approximately 3,000 yuan per ton [2][8] - The anticipated increase in demand for alternative materials, such as aluminum wire bundles, is expected to further support aluminum's market position [10] - The global energy consumption for electrolytic aluminum production accounts for about 3% to 3.5% of total electricity usage, with potential supply uncertainties due to energy constraints [11][12] Investment Opportunities - Companies with high elasticity, such as Zhongfu, Yun Aluminum, and Tianshan, are recommended for those seeking growth, while more stable options include Hongqiao, Hongchuang Holdings, and China Aluminum [2][15] - The aluminum sector's dividend yield is projected to remain strong, with some companies maintaining a dividend payout ratio of 60% [14] Conclusion - The aluminum sector is poised for significant growth over the next few years, driven by supply constraints and increasing demand for aluminum as a substitute material. The current market conditions present a favorable investment landscape for both growth and income-focused investors [15][18]