Investment Rating - The report maintains a "Positive" rating for the steel industry and a "Positive" rating for the non-ferrous metals industry, with "Accumulate" ratings for specific companies including Luoyang Molybdenum, Zhongjin Gold, Huayou Cobalt, Zijin Mining, and China Aluminum [8]. Core Insights - The steel industry is supported by pre-holiday inventory replenishment by downstream enterprises and the introduction of stable growth policies, which are expected to boost market confidence and potentially support steel prices if the fundamentals continue to improve [4][5]. - For copper, the impact of the Federal Reserve's monetary policy is becoming more pronounced, with expectations of a strong copper price if downstream demand continues to improve [4][46]. - Aluminum prices may also be supported by improving downstream demand and the anticipated easing of monetary policy by the Federal Reserve [4][52]. - Gold prices are expected to stabilize if the U.S. personal consumption expenditures (PCE) index shows signs of slowing down, with long-term attention on the Fed's interest rate path [4][59]. - The cobalt market is experiencing tight supply conditions due to an extended export ban from the Democratic Republic of Congo, which is likely to strengthen cobalt prices in the short term [4][20]. - The rare earth market is expected to see price fluctuations due to weak seasonal demand, with attention on international trade policies affecting exports [4][5]. Summary by Sections Steel Industry - The Ministry of Industry and Information Technology has issued a "Steel Industry Stable Growth Work Plan" targeting an average annual growth of 4% in value added for the steel industry over the next two years [22]. - The plan includes ten specific measures focusing on consumption peak, supply quality improvement, industry transformation, effective consumption expansion, and deepening open cooperation [22]. - Recent data indicates a slight increase in steel demand due to construction material consumption, while supply has decreased slightly, leading to a marginal improvement in the market [22][23]. Copper Industry - The copper market is showing signs of recovery in downstream demand, with increased operating rates in domestic copper rod enterprises [45][46]. - The supply side remains stable, and the copper price is expected to be supported if demand continues to improve [46][49]. Aluminum Industry - The aluminum sector is benefiting from improved downstream demand and stable production costs, with expectations of price support from the Fed's easing policies [52][53]. Precious Metals - The gold market is influenced by geopolitical tensions and U.S. economic indicators, with potential price support if inflation data shows signs of slowing [59][60]. Cobalt and Rare Earths - The cobalt market is facing supply constraints due to export restrictions from the DRC, while the rare earth market is experiencing price volatility amid weak demand [4][20].

Core Viewpoint - The industrial metal sector experienced a 0.47% increase on September 24, with significant gains from companies like Jingyi Co., Ltd. and Huayu Mining [1] Group 1: Market Performance - The Shanghai Composite Index closed at 3853.64, up 0.83%, while the Shenzhen Component Index closed at 13356.14, up 1.8% [1] - Jingyi Co., Ltd. led the gains in the industrial metal sector with a closing price of 12.27, reflecting a 10.04% increase [1] - Other notable performers included Huayu Mining, which rose by 7.83% to a closing price of 26.43, and Hailiang Co., Ltd., which increased by 6.64% to 13.00 [1] Group 2: Trading Volume and Value - Jingyi Co., Ltd. had a trading volume of 140,600 shares and a transaction value of 168 million yuan [1] - Huayu Mining recorded a trading volume of 755,500 shares with a transaction value of 1.994 billion yuan [1] - Hailiang Co., Ltd. had a trading volume of 609,700 shares and a transaction value of 777 million yuan [1] Group 3: Fund Flow Analysis - The industrial metal sector saw a net outflow of 516 million yuan from main funds, while retail investors contributed a net inflow of 404 million yuan [2] - The main fund inflow for China Aluminum was 75.08 million yuan, representing 5.93% of its total [3] - Jingyi Co., Ltd. experienced a main fund inflow of 38.90 million yuan, accounting for 23.20% of its total [3]

Core Insights - The China Securities National New State-Owned Enterprise Modern Energy Index has decreased by 0.80% as of September 23, 2025, with mixed performance among constituent stocks [3] - The National Energy Administration and other departments have issued guidelines aiming for significant advancements in the energy equipment industry by 2030, focusing on self-sufficiency, high-end, intelligent, and green development [3][4] Market Performance - The top-performing stocks include Nanshan Energy, which rose by 6.16%, and XJ Electric, which increased by 2.50%, while China Rare Earth fell by 5.75% [3] - The Central State-Owned Enterprise Modern Energy ETF (561790) has seen a decline of 0.88%, with a latest price of 1.13 yuan, but has accumulated a 6.55% increase over the past three months [3] Trading Activity - The trading volume for the Central State-Owned Enterprise Modern Energy ETF was 30.02 million yuan with a turnover rate of 0.7% [3] - The average daily trading volume over the past year for the ETF was 628.85 million yuan [3] Industry Outlook - Experts emphasize the necessity of new energy infrastructure to support the construction of a new energy system, including low-carbon transformation of coal power and improvements in energy storage systems [4] - The index tracks 50 listed companies involved in modern energy sectors, with the top ten stocks accounting for 48.28% of the index [4]

Core Viewpoint - China Aluminum's stock price has experienced fluctuations, with a recent decline of 2.08% and a year-to-date increase of 4.37% [1] Financial Performance - For the first half of 2025, China Aluminum reported revenue of 116.39 billion yuan, a year-on-year increase of 5.13%, and a net profit attributable to shareholders of 7.07 billion yuan, up 0.77% year-on-year [2] - Cumulative cash dividends since the A-share listing amount to 11.25 billion yuan, with 5.71 billion yuan distributed over the past three years [3] Shareholder Information - As of June 30, 2025, the number of shareholders increased to 366,900, reflecting a growth of 5.08% [2] - The top ten circulating shareholders include new entrants such as Huaxia SSE 50 ETF and Huatai-PB CSI 300 ETF, with significant holdings [3] Market Activity - As of September 23, the stock price was 7.53 yuan per share, with a trading volume of 828 million yuan and a turnover rate of 0.82% [1] - The stock has seen a decline of 4.44% over the last five trading days and a decrease of 7.95% over the last 20 days [1]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Basic Materials, specifically focusing on Copper and Aluminium - **Current Trends**: Fundamentals are stable with an improving outlook for industrial metals driven by macroeconomic factors such as US rate cuts, US dollar weakness, and China's potential stimulus measures due to weak economic data [2][3] Core Insights - **Copper Market**: - Demand normalization post-tariff has not negatively impacted prices as anticipated in Q3 2025 [2] - UBS raised copper price forecasts for 2025 and 2026 by 3% to US$4.37/lb and US$4.80/lb respectively [3] - Expected supply constraints and strong secular growth drivers (e.g., electrification) will support prices in 2026/2027 [3] - **Aluminium Market**: - Demand remains mixed, but supply constraints, particularly from China, are supporting prices [4] - Aluminium price forecasts for 2025 and 2026 were increased by 5% and 2% to US$1.17/lb and US$1.18/lb respectively [4] Earnings and Price Target Adjustments - **Earnings Forecasts**: - Increased earnings forecasts for Zijin, CMOC, and JCC by 4%-5% for 2025 and 5%-9% for 2026 due to higher price expectations for copper, aluminium, and gold [5] - Specific earnings adjustments include: - Zijin: 2025 NPAT raised to Rmb 46,519 million (+4%) and 2026 NPAT to Rmb 57,056 million (+9%) [19] - CMOC: 2025 NPAT raised to Rmb 17,504 million (+5%) and 2026 NPAT to Rmb 19,200 million (+6%) [19] - **Price Target Changes**: - Price targets for key companies were raised, including: - Zijin H: Target increased by 9% to Rmb 35.4 [19] - CMOC H: Target increased by 6% to Rmb 17.5 [19] - Hongqiao: Target increased by 4% to Rmb 28.0 [19] Additional Insights - **Market Dynamics**: - The overall outlook for industrial metals is improving, with a reduced risk of a near-term demand slowdown [2] - Potential for restocking in developed markets could support prices as traditional end markets recover [2] - **Investment Recommendations**: - Top picks include Zijin, JCC, Hongqiao, and Tianshan based on revised earnings and price targets [5] Important but Overlooked Content - **Macroeconomic Drivers**: The report emphasizes the importance of macroeconomic themes rather than physical market tightness in supporting metal prices [2] - **Equity Rotation**: There is a noted equity rotation into mining stocks, indicating investor confidence in the sector's recovery [2] This summary encapsulates the key points discussed in the conference call, providing a comprehensive overview of the current state and outlook of the copper and aluminium markets, along with specific company performance forecasts and investment recommendations.

Group 1 - UBS reports that industrial metal prices are supported by positive macroeconomic factors, including US interest rate cuts, a weaker dollar, confidence in AI trade, and China's anti-involution policies along with potential additional stimulus measures from China [1] - The overall outlook for industrial metals is improving, with the risk of a significant short-term demand slowdown diminishing, while the medium-term fundamentals for copper and aluminum remain attractive [1] - UBS has raised its copper price forecasts for this year and next by 3%, from $4.24 and $4.68 per pound to $4.37 and $4.80 respectively, due to limited supply growth and recovering traditional demand [1] Group 2 - UBS has increased its earnings estimates for Zijin Mining (601899), Luoyang Molybdenum (603993), and Jiangxi Copper (600362) by 4%, 5%, and 5% respectively for this year, and by 9%, 6%, and 5% for next year [2] - The firm has also raised its earnings forecasts for China Hongqiao, Aluminum Corporation of China (601600), and Tianshan Aluminum (002532) by 5% to 8% for next year [2]

Group 1 - The core viewpoint is that the non-ferrous metal industry index (399395) has shown strong performance, with significant gains in individual stocks such as Zijin Mining and Shandong Gold, driven by a surge in spot gold prices and supportive monetary policies [1][2] - The non-ferrous metal industry index reflects the overall performance of listed companies in the non-ferrous metal sector, comprising 50 securities with notable scale and liquidity [1] - The recent increase in gold prices is attributed to central bank reserves and resilient employment in the U.S. economy, which may extend the current interest rate cut cycle, creating a favorable environment for gold investments [1] Group 2 - As of August 29, 2025, the top ten weighted stocks in the non-ferrous metal industry index account for 50.35% of the index, including companies like Zijin Mining and Northern Rare Earth [2] - The non-ferrous ETF fund closely tracks the non-ferrous metal industry index, providing investors with a means to invest in this specific sector [1][3]

Core Viewpoint - The article discusses the performance of the Nonferrous ETF Fund (159880) and its major holdings, highlighting the fund's recent gains and overall returns since its inception [1]. Fund Performance - The Nonferrous ETF Fund (159880) opened with a gain of 0.79%, priced at 1.522 yuan [1]. - Since its establishment on March 8, 2021, the fund has achieved a return of 50.99% [1]. - Over the past month, the fund's return has been 12.17% [1]. Major Holdings - Key stocks in the Nonferrous ETF Fund include: - Zijin Mining: up 1.92% - Luoyang Molybdenum: up 3.76% - Northern Rare Earth: down 0.53% - China Aluminum: up 0.52% - Shandong Gold: up 3.84% - Huayou Cobalt: up 4.69% - Zhongjin Gold: up 3.50% - Ganfeng Lithium: up 0.34% - Chifeng Jilong Gold: up 2.90% - Yun Aluminum: unchanged [1]. Management Information - The fund is managed by Penghua Fund Management Co., Ltd., with Yan Dong as the fund manager [1].

Investment Rating - The report provides a positive outlook for the metals and new materials industry, suggesting a stable supply-demand balance and potential for price increases in the long term [4][5]. Core Views - The report highlights that the recent interest rate cuts by the Federal Reserve are expected to boost investment inflows into the metals sector, particularly in precious metals like gold and silver, which are anticipated to see price increases [4][5]. - The report emphasizes the importance of monitoring supply chain disruptions and geopolitical factors that could impact metal prices, particularly copper and aluminum [5][10]. Weekly Market Review - The Shanghai Composite Index decreased by 1.30%, while the Shenzhen Component increased by 1.14%. The non-ferrous metals index fell by 4.02%, underperforming the CSI 300 by 3.57 percentage points [6][8]. - Year-to-date, the non-ferrous metals index has risen by 51.05%, outperforming the CSI 300 by 36.64 percentage points [6][9]. Price Changes - Industrial metals and precious metals saw varied price movements, with copper, aluminum, and zinc prices decreasing by 0.78%, 0.67%, and 1.04% respectively, while gold and silver prices increased by 1.05% and 1.60% [10][15]. - Lithium prices showed an upward trend, with battery-grade lithium carbonate increasing by 2.82% [10][15]. Key Company Valuations - The report lists key companies in the industry, such as Zijin Mining, China Aluminum, and Shandong Gold, with their respective price-to-earnings (PE) ratios and earnings per share (EPS) forecasts for 2025 [18][19]. - For example, Zijin Mining is projected to have a PE ratio of 15 and an EPS of 1.65 in 2025, indicating strong growth potential [18]. Supply and Demand Analysis - The report notes that copper supply remains tight due to production disruptions, with domestic social inventory increasing to 149,000 tons [32]. - The demand for copper is expected to rise, driven by increased activity in the electrical and construction sectors, with operating rates for copper products showing slight improvements [32]. Precious Metals Insights - The report indicates that gold ETF holdings have increased by 2.2%, reflecting growing investor confidence in gold as a safe-haven asset [20]. - The gold-silver ratio is currently at 86.7, suggesting potential for silver price recovery as demand improves [21].

Core Insights - Huawei's Global Hybrid Cloud Integration Summit highlighted the theme of "Data + AI Dual Engine Driving Accelerated Digital Transformation for Government and Enterprises" [1] - The launch of Huawei Cloud Stack 8.6 focuses on continuous innovation in four areas: cloud foundation, data + AI, application modernization, and integrated operations [1][5] Group 1: Digital Transformation and AI Integration - The focus of enterprises has shifted from "computing power construction anxiety" to "technology application pressure" in AI integration [3] - Non-structured data utilization has increased by 60% annually over the past two years, accelerating the release of data value for intelligent upgrades [3] - The "Green Beautiful Channel" traffic model developed by Yunnan Jiaotong improved accuracy by 20% compared to general models and enhanced toll station traffic prediction accuracy by approximately 10% [3][4] Group 2: Industrial Applications of AI - AI capabilities are being applied in complex industrial processes, such as steel production, to enhance efficiency [4] - China Aluminum Corporation collaborated with Huawei to implement AI across eight business areas, achieving full-process intelligence from perception to decision-making [4] Group 3: Financial Sector Innovations - Huawei Cloud is exploring multi-Agent collaboration solutions to enhance service experience and efficiency in the financial sector [5] - The integration of various applications aims to address challenges such as system integration difficulties and long development cycles [5] Group 4: Huawei Cloud Stack 8.6 Upgrades - Huawei Cloud Stack 8.6 introduces significant enhancements in cloud foundation, data + AI capabilities, application modernization, and integrated operations [5][7] - The new version optimizes computing power usage and management, reducing model deployment time and enhancing operational efficiency [7] - Data engineering capabilities have been improved to ensure data trustworthiness and manageability during circulation [8] Group 5: Application Modernization and Development Tools - The introduction of GaussDB's three-tier pooled distributed architecture significantly boosts database performance and security [8] - CodeArts Doer enhances the entire development process, with over 6,000 developers at Postal Savings Bank utilizing it to generate over 290,000 lines of code [8] Group 6: Future Directions and Client Engagement - Huawei Cloud aims to enhance operational efficiency through AI-driven tools for knowledge Q&A, data retrieval, and fault diagnosis [9] - The company has gained the trust of over 5,500 global clients and is committed to continuous investment in cloud platform and service competitiveness [9]