Core Viewpoint - Luoyang Molybdenum Co., Ltd. has shown significant stock price appreciation and strong financial performance, indicating potential investment opportunities in the company. Group 1: Stock Performance - On December 23, Luoyang Molybdenum's stock rose by 2.04%, reaching 19.00 CNY per share, with a trading volume of 2.09 billion CNY and a turnover rate of 0.64%, resulting in a total market capitalization of 406.49 billion CNY [1] - The stock has increased by 197.01% year-to-date, with a 5-day increase of 8.57%, a 20-day increase of 18.97%, and a 60-day increase of 49.49% [1] - The company has appeared on the "Dragon and Tiger List" once this year, with the most recent occurrence on October 9 [1] Group 2: Company Overview - Luoyang Molybdenum, established on December 22, 1999, and listed on October 9, 2012, is primarily engaged in the mining, selection, deep processing, trading, and research of precious metals such as molybdenum, tungsten, and gold [2] - The company's revenue composition includes 48.56% from refined metal product trading, 38.31% from concentrate product trading, and smaller contributions from copper (27.14%), cobalt (6.04%), molybdenum (3.12%), and others [2] - The company is classified under the non-ferrous metals industry, specifically in industrial metals and copper, and is associated with concepts such as niobium, non-ferrous copper, gold stocks, cobalt-nickel, and scarce resources [2] Group 3: Financial Performance - For the period from January to September 2025, Luoyang Molybdenum reported a revenue of 145.49 billion CNY, a year-on-year decrease of 5.99%, while the net profit attributable to shareholders increased by 72.61% to 14.28 billion CNY [2] - The company has distributed a total of 21.56 billion CNY in dividends since its A-share listing, with 10.58 billion CNY distributed over the past three years [3] Group 4: Shareholder Information - As of September 30, 2025, the number of shareholders reached 304,200, an increase of 28.08% from the previous period [2] - Major shareholders include Hong Kong Central Clearing Limited, holding 695 million shares, and various ETFs, with some increasing and others decreasing their holdings [3]

Core Viewpoint - The report from HuLong Securities indicates a sustained increase in the metal industry due to geopolitical tensions, global economic slowdown, and rising resource nationalism, maintaining a "recommended" rating for the sector [2]. Group 1: Price Trends - In the first 11 months of 2025, the average monthly price of gold increased by 40.75% compared to the full year of 2024, silver rose by 33.69%, copper by 7.25%, and aluminum by 7.96% [2][3]. - The performance of the non-ferrous metal industry index significantly outperformed the CSI 300 index, with a year-to-date increase of 72.81% compared to 18.49% for the latter [2]. Group 2: Industry Performance - The non-ferrous metal industry achieved a revenue of 2.82 trillion yuan in the first three quarters of 2025, reflecting a year-on-year growth of 9.3% [2]. - The net profit attributable to shareholders reached 151.29 billion yuan, marking a year-on-year increase of 41.55% [2]. Group 3: Gold Market Insights - The demand for gold is driven by various factors, with ETF investments replacing central bank purchases as the main force behind price increases, indicating a strong investment demand [3]. - Gold is increasingly viewed as a safe-haven asset, reinforcing its role in pricing global uncertainties [3]. Group 4: Copper Market Insights - There is an expectation of a supply-demand mismatch in the copper market, with geopolitical factors and supply chain security concerns contributing to supply tightness [4]. - The market anticipates a turning point in the supply-demand relationship for refined copper around 2026, with a positive outlook for demand in the U.S. and China [4].

Group 1 - The price of Chinese black tungsten concentrate (≥65% domestic) has risen to 449,600 CNY per ton, with a daily increase of 19,900 CNY, representing a growth of approximately 4.63%, and a year-to-date increase of 214.87% [1] - Tungsten powder spot average price reported at 1,090,000 CNY per ton, with a significant daily increase of 72,500 CNY, reflecting a rise of about 7.1%, continuing the strong price trend observed throughout the year [1] - From 2025 to 2028, global tungsten production is expected to increase from 82,800 tons to 89,900 tons, while demand is projected to rise from 102,100 tons to 110,000 tons, indicating a persistent supply-demand gap [1] Group 2 - Companies such as Xiamen Tungsten (600549) and China Tungsten High-Tech (000657) are forecasted to see a year-on-year net profit increase of over 40% in 2025, while Luoyang Molybdenum (603993) and Zhangyuan Tungsten (002378) are expected to have net profit growth exceeding 30% [1] - Guangsheng Nonferrous (600259) is anticipated to achieve a turnaround from loss to profit [1] - The marginal demand for tungsten-based new materials in new application fields such as AI, controllable nuclear fusion, and new infrastructure will provide long-term support for tungsten prices [1]

Summary of Key Points from the Conference Call Industry Overview - The conference call focused on the **China Basic Materials** sector, particularly highlighting the performance of **lithium**, **copper**, **aluminum**, and **steel** industries [2][10]. Core Insights and Arguments - The **MSCI China Materials Index** outperformed the broader MSCI China Index, rallying **9%** from its November low, while the overall market saw a modest recovery of **0.2%** [2]. - **Commodity Price Dynamics**: - Lithium prices have surged, followed by gold and copper, while aluminum and coal have seen price pullbacks but remain resilient. Steel prices continue to face pressure [2]. - **Demand Verification**: As 2026 approaches, market focus is expected to shift towards verifying demand, with supply-side disruptions posing a significant upside risk [2]. - **Regulatory Uncertainty**: The proposed cancellation of **27 mining rights** in Jiangxi, including lithium-bearing porcelain clay mines, is expected to have minimal impact on supply as these licenses had already expired [2]. - **Environmental Impact Assessments**: The first environmental impact assessment by CATL was announced, which may delay the restart of operations compared to previous expectations [2]. - **Lithium Price Forecast**: Prices are expected to exceed **Rmb 120k** if market conditions tighten in **1Q26** [2]. Additional Important Insights - **Steel Production**: November crude steel output in China was down **10.9% YoY**, with cumulative output for the year being **38mt lower YoY**. The profitability of steel mills is under pressure, with only **36%** reporting profits [18]. - **Aluminum Production**: In November, aluminum production was stable at **3.8mt**, with exports rebounding to **570kt**. Prices have fluctuated between **Rmb 21,000-22,100** [28]. - **Coal Production**: November raw coal output increased by **5% MoM** to **427mt**, with imports rising to **44mt** despite a **20% YoY** decline [25]. - **Investment Trends**: The property market remains under pressure, with new housing starts falling **28% YoY** and a decline in national sales values by **28% YoY** [10]. Market Forecasts - **Lithium Demand**: The outlook for lithium demand remains strong, with a **23%** increase in spot lithium carbonate prices since early November, driven by robust downstream demand [35]. - **FAI Trends**: Total Fixed Asset Investment (FAI) for the first eleven months of 2025 dropped **2.6% YoY**, with real estate investment contracting **15.9% YoY** [14]. Valuation Comparisons - A comparison of global diversified mining valuations highlighted key players in the copper and aluminum sectors, with Zijin Mining and CMOC being favored [40]. This summary encapsulates the critical insights and data points discussed during the conference call, providing a comprehensive overview of the current state and outlook of the China Basic Materials sector.

Investment Rating - The report maintains an "Overweight" rating for the non-ferrous metals sector [1] Core Views - The non-ferrous metals sector saw a weekly increase of 1.46%, ranking in the upper middle among all primary industries. The energy metals sector rose by 5.08%, while the precious metals sector increased by 0.68% [1][14] - Gold prices have broken through the consolidation range, while silver's bullish sentiment has peaked, indicating a potential risk of a sharp short-term correction [1][49][50] Summary by Sections Market Review - The Shanghai Composite Index rose by 0.33%, with the non-ferrous metals sector outperforming the index by 1.44 percentage points [14] - The report highlights the performance of various sub-sectors, with energy metals leading the gains [14] Industrial Metals - **Copper**: Prices fluctuated with LME copper at $11,882 per ton (up 2.85%) and SHFE copper at ¥93,180 per ton (down 0.96%). Supply remains weak, with a forecasted global copper shortage of 150,000 tons by 2026. Demand is deteriorating as construction projects pause, leading to increased spot market discounts [2][30] - **Aluminum**: LME aluminum rose to $2,945 per ton (up 2.43%), while SHFE aluminum was at ¥22,185 per ton (up 0.07%). Supply conditions are stable, with new capacity coming online, but demand remains cautious due to a downturn in the real estate sector [3][35] - **Zinc**: Prices fell, with LME zinc at $3,073 per ton (down 2.12%) and SHFE zinc at ¥23,065 per ton (down 2.29%). Inventory levels showed mixed trends [41] - **Tin**: Prices increased, with LME tin at $43,227 per ton (up 5.11%) and SHFE tin at ¥343,040 per ton (up 3.02%). Supply from Indonesia has increased, but demand remains cautious [46] Precious Metals - **Gold**: COMEX gold closed at $4,368.70 per ounce (up 0.90%), while SHFE gold was at ¥979.90 per gram (up 0.95%). Economic data from the U.S. showed mixed results, but overall inflation appears to be cooling, which may influence future gold prices positively [4][49] - **Silver**: The report warns of extreme bullish sentiment in silver, with potential for a sharp correction as market volatility peaks [50]

Group 1: Molybdenum Market Overview - The domestic molybdenum market is experiencing a weak overall performance, with most product prices showing slight declines and general trading activity being moderate [5]. - Prices for molybdenum iron, ammonium molybdate, and molybdenum powder have decreased by approximately ¥1,000 per ton, ¥1,000 per ton, and ¥3 per kilogram, respectively [5]. - Factors such as significant resistance to price increases in steel, ample market supply, and limited international molybdenum price increases are contributing to the lack of upward pressure on supplier quotes [5]. Group 2: Steel Prices Overview - The steel market is facing challenges with price increases, as the supply of spot market products is high, leading to limited upward movement in prices [5]. - Specific steel products such as rebar and hot-rolled coils are listed with their respective prices, indicating a mixed trend in pricing [4][5]. Group 3: Company Acquisition Announcement - On December 15, 2025, Luoyang Molybdenum Co., Ltd. announced that its subsidiary signed an agreement to acquire 100% equity in Leagold LatAm Holdings B.V. and Luna Gold Corp. from Equinox Gold Corp. for $1.015 billion [6]. - This acquisition will provide Luoyang Molybdenum with full ownership of several gold mining projects, including the Aurizona and RDM gold mines, as well as the Bahia complex [6].

Core Viewpoint - The A-share market is experiencing a significant upward trend, particularly in the non-ferrous metal sector, with the Non-Ferrous 50 ETF (159652) showing a notable increase and substantial trading volume [1][4]. Group 1: Market Performance - As of 9:58 AM, the Non-Ferrous 50 ETF (159652) opened with a gap up, rising by 2.5% and seeing a significant increase in trading volume, with 200,000 net subscriptions recorded during the session [1]. - Key stocks in the non-ferrous metal sector, such as Zijin Mining and Shandong Gold, have shown strong performance, with Zijin Mining increasing by 4.66% and Shandong Gold by 4.37% [2][4]. Group 2: Commodity Trends - Precious metals are experiencing a surge, with spot gold rising over 1% to exceed $4,383 per ounce, setting a new historical high, while silver has also reached a record of over $67 per ounce [3]. - The overall non-ferrous metal sector has seen an impressive increase of over 85% this year, indicating a strong market performance [4]. Group 3: Economic and Policy Context - Following the December Federal Reserve policy decisions, a monthly operation of $40 billion in reserve management purchases is expected to provide liquidity support to the market [7]. - The Bank of Japan has raised interest rates by 25 basis points to 0.75% to combat rising inflation, marking the highest rate in 30 years [7]. Group 4: Investment Opportunities - The Non-Ferrous 50 ETF (159652) is highlighted as a leading investment vehicle, covering a wide range of metals including gold, copper, aluminum, lithium, and rare earths, which are expected to benefit from the ongoing super cycle in the non-ferrous sector [18][20]. - The ETF has a high concentration of key metals, with copper accounting for 31% and gold for 14%, making it a competitive option in the market [20]. Group 5: Long-term Outlook - The long-term outlook for gold remains positive, driven by factors such as declining real interest rates and increasing central bank gold purchases, with forecasts suggesting gold prices could exceed $4,500 per ounce in the near future [15][16]. - The copper market is also expected to see a growing supply-demand gap, with projections indicating that copper prices may reach new highs due to robust demand from emerging sectors like AI and renewable energy [16][17].

Group 1 - Platinum prices reached a peak of $1987 per ounce on December 19, marking the highest level since late July 2008, with an annual increase of over 110% [1] - Silver prices surged above $67.49 per ounce, setting a new historical high [1] - The SHFE gold price hit 987 yuan per gram [1] Group 2 - The China Nonferrous Metals Industry Index (399395) rose by 0.96% as of December 22, 2025, with notable increases in stocks such as Yahua Group (002497) up 1.90%, and China Aluminum (601600) up 1.84% [1] - The Nonferrous Metals ETF (159880) increased by 0.77%, with the latest price at 1.84 yuan [1] - The top ten weighted stocks in the Nonferrous Metals Industry Index account for 52.34% of the index, including Zijin Mining (601899) and China Aluminum (601600) [2]

Group 1 - The core point of the article highlights that the main funds in the two markets experienced a net outflow of 1.283 billion yuan at the end of the trading day on December 19 [1] - The industries that saw significant net inflows of main funds exceeding 100 million yuan include non-ferrous metals, basic chemicals, and national defense and military industry [1] - Specific stocks that attracted over 100 million yuan in net inflow of main funds during the closing period include Ganfeng Lithium, Luoyang Molybdenum, N Uxin, Salt Lake Industry, Sungrow Power Supply, and Northern Rare Earth [1]

Group 1: Market Overview - The total trading amount for the Shanghai Stock Connect was 940.49 billion, while the Shenzhen Stock Connect reached 1,048.92 billion [2] - The top traded stocks on the Shanghai Stock Connect included Zhaoyi Innovation with 23.86 billion, followed by Sanfang Qianhe and Luoyang Copper with 16.87 billion and 15.55 billion respectively [3] - On the Shenzhen Stock Connect, the leading stock was Zhongji Xuchuang with 26.44 billion, followed by Sunshine Power and New Yisheng with 26.09 billion and 25.89 billion respectively [3] Group 2: Sector Performance - Sectors such as Hainan, dairy, and retail showed significant gains, while precious metals and semiconductors experienced declines [4] - The mechanical equipment sector led in net inflow of funds with 38.67 billion, followed by non-ferrous metals and transportation equipment with 35.32 billion and 31.28 billion respectively [5] - The electronic sector had the highest net outflow of funds at -57.70 billion, followed by semiconductors and pharmaceuticals with -30.20 billion and -17.73 billion respectively [6] Group 3: Individual Stock Activity - The top stocks with net inflow included Xue Ren Group with 13.84 billion, followed by N Youxun and Shanzi Gaoke with 13.69 billion and 10.55 billion respectively [7] - The stocks with the highest net outflow were Meinian Health at -9.05 billion, followed by Shenwei Electronics and C Muxi-U with -6.98 billion and -6.81 billion respectively [8] Group 4: ETF Trading - The top ETFs by trading amount included A500 ETF Huatai Baichuan with 133.655 billion, and Hong Kong Securities ETF with 104.353 billion, showing increases of 7.50% and 18.61% respectively [9] - The ETFs with the highest growth in trading amount compared to the previous trading day included Hengsheng Dividend Low Volatility ETF with 183.92% increase and Industrial Nonferrous ETF with 140.82% increase [10] Group 5: Futures Market - In the futures market, all four major index contracts (IH, IF, IC, IM) saw both long and short positions increase, with IF and IM contracts showing a higher number of short position increases [11] Group 6: Institutional and Retail Activity - Institutional activity showed a decrease compared to the previous day, with notable purchases in Aerospace Intelligence and Shanzi Gaoke, while significant sales were observed in Meinian Health and Xue Ren Group [12][13] - Retail investors were active, with significant buying in Xue Ren Group and Shanzi Gaoke, while selling was noted in Huaren Health and other stocks [14][15]