Investment Rating - The industry investment rating is "Positive" (maintained) [3][4] Core Views - The report highlights that copper prices are expected to experience high-level fluctuations in the short term, driven by supply disruptions and ongoing negotiations between the US and China [4] - Aluminum prices are on the rise due to continuous inventory depletion, while the alumina market remains in an oversupply situation [4] - Lithium prices are recovering from the bottom as demand increases during the peak season, with a notable decrease in inventory [4] - Cobalt prices are likely to continue rising due to the implementation of export quotas in the Democratic Republic of Congo, which may tighten supply [4] Summary by Sections 1. Industry Overview - The report indicates that the US CPI for September was lower than expected, which may influence market conditions [8] 2. Market Performance - The overall performance of the non-ferrous metals sector shows that the Shanghai Composite Index rose by 2.88%, while the non-ferrous sector increased by 1.13%, underperforming the index by 1.75 percentage points [11][12] 3. Valuation Changes - The TTM PE for the non-ferrous sector is 27.27, with a weekly change of 0.68, while the PB is 3.17, reflecting a 0.09 change [21][24] 4. Industrial Metals - Copper prices increased by 2.61% in London and 3.95% in Shanghai, with inventories decreasing [26] - Aluminum prices rose by 2.78% in London and 1.14% in Shanghai, with a notable increase in aluminum enterprise profits [36] - Lead and zinc prices also saw increases, with lead prices up by 2.00% and zinc by 2.48% [47] - Lithium prices for lithium carbonate rose by 2.79% to 75,400 yuan/ton, while lithium spodumene increased by 4.14% to 881 USD/ton [76] - Cobalt prices saw a significant increase, with MB cobalt rising by 7.75% to 22.60 USD/pound [89]

Investment Rating - The report maintains a "Recommended" rating for several companies in the non-ferrous metals sector, including Zijin Mining, Luoyang Molybdenum, and China Aluminum [5][6]. Core Views - The report highlights that industrial metal prices are expected to remain strong due to seasonal demand and supply disruptions, particularly for copper and aluminum [2][3]. - Energy metals like lithium and cobalt are projected to perform well, driven by strong demand in the energy storage market and supply constraints [3]. - Precious metals are anticipated to experience price fluctuations in the short term, but long-term trends remain bullish due to central bank gold purchases and weakening dollar credit [4]. Summary by Sections Industrial Metals - Copper prices are supported by macroeconomic sentiment and supply disruptions, with the SMM import copper concentrate index at $51.2/ton, down $0.6/ton month-on-month [2]. - Aluminum demand is robust, particularly from the automotive sector, with domestic aluminum ingot social inventory at approximately 618,000 tons, down 9,000 tons week-on-week [2]. - Key companies recommended include Luoyang Molybdenum, Zijin Mining, and China Aluminum [2]. Energy Metals - Lithium supply is increasing due to new production lines, while demand from the energy storage market is exceeding expectations, supporting strong prices [3]. - Cobalt prices are rising due to supply concerns from the Democratic Republic of Congo, with Chinese companies receiving fewer export quotas than expected [3]. - Recommended companies include Huayou Cobalt and Yichun Lithium [3]. Precious Metals - Gold prices are experiencing short-term volatility due to optimistic international conditions, but long-term outlook remains positive with central bank purchases [4]. - Silver prices are influenced by industrial demand and follow gold's price movements [4]. - Recommended companies include Western Gold and Shandong Gold [4].

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]

Investment Rating - The investment rating for Tianshan Aluminum (002532) is "Buy" [1] Core Views - The company has achieved a revenue of 22.32 billion yuan in the first three quarters of 2025, representing a year-on-year growth of 7.34%. The net profit attributable to shareholders reached 3.34 billion yuan, up 8.31% year-on-year [2] - The company continues to focus on cost reduction and efficiency improvement, with a significant increase in gross profit margin from 20.25% in Q2 2025 to 27.23% in Q3 2025, driven by rising aluminum prices and lower electricity costs [3] - The company is progressing well in its capacity expansion, with a 200,000-ton electrolytic aluminum capacity under construction, expected to be operational by the end of November 2025 [4] Summary by Sections Financial Performance - In Q3 2025, the company reported a revenue of 6.994 billion yuan, a decrease of 0.25% year-on-year and a decrease of 5.53% quarter-on-quarter. However, the net profit attributable to shareholders was 1.256 billion yuan, showing a year-on-year increase of 24.30% and a quarter-on-quarter increase of 22.41% [2] - The company forecasts revenues of 30.8 billion yuan, 33.8 billion yuan, and 37.5 billion yuan for 2025, 2026, and 2027, respectively, with corresponding net profits of 5.03 billion yuan, 6.16 billion yuan, and 7.16 billion yuan [5] Profitability and Efficiency - The gross profit margin is expected to improve from 23.3% in 2024 to 26.3% in 2027, reflecting ongoing cost control measures and operational efficiencies [5] - The earnings per share (EPS) are projected to be 1.08 yuan, 1.32 yuan, and 1.54 yuan for 2025, 2026, and 2027, respectively [5] Capacity Expansion - The company is undertaking a green low-carbon energy efficiency upgrade for its 1.4 million tons of electrolytic aluminum capacity, with the construction of an additional 200,000 tons of electrolytic aluminum capacity progressing smoothly [4]

Core Viewpoint - Tianshan Aluminum Group Co., Ltd. is preparing for its second extraordinary general meeting of shareholders in 2025, focusing on governance and the nomination of an independent director candidate [9][10][37]. Financial Data - The third quarter financial report has not been audited, and the company confirms that there are no adjustments or restatements of previous accounting data [3][8]. - The company has completed a share buyback plan, repurchasing a total of 23.71 million shares, which is 0.51% of the total share capital, with a total expenditure of approximately 200 million yuan [6]. Shareholder Information - The company will hold its second extraordinary general meeting on November 10, 2025, with provisions for both on-site and online voting [11][12]. - The meeting will address several proposals, including the nomination of an independent director and amendments to the company's articles of association [16][37]. Independent Director Nomination - The board has nominated Chen Timothy Teck-Leng as an independent director candidate, with a proposed annual remuneration of 150,000 yuan before tax [37][38]. - The candidate has extensive experience in banking and finance, having held various senior positions in international financial institutions [39][40].

Core Viewpoint - Tianshan Aluminum Group Co., Ltd. has approved a cash dividend distribution plan for the first half of 2025, distributing 2 RMB per 10 shares to shareholders, totaling approximately 917.98 million RMB, with specific tax considerations for different types of shareholders [2][6][10]. Summary by Sections Dividend Distribution Plan - The company will distribute a cash dividend of 2 RMB per 10 shares (including tax) to all shareholders, based on a total share count of 4,589,876,885 shares after excluding 62,008,530 shares held in the repurchase account [2][6]. - The total cash dividend to be distributed amounts to 917,975,377 RMB [2][6]. Shareholder Rights - Shares held in the repurchase account do not participate in this dividend distribution [6][10]. - The distribution is based on the total share count minus the repurchased shares, ensuring that only eligible shareholders receive the dividends [9][10]. Key Dates - The record date for the dividend distribution is set for October 29, 2025, and the ex-dividend date is October 30, 2025 [7]. Tax Considerations - Different tax rates apply to various categories of shareholders, with specific provisions for Hong Kong investors and domestic investors holding different types of shares [6][10]. - The company will not withhold personal income tax for individual shareholders at the time of distribution, but tax will be calculated based on the holding period when shares are sold [6][10]. Implementation Details - Cash dividends will be directly credited to shareholders' accounts through their custodial securities companies on the ex-dividend date [9][10]. - The company assumes responsibility for any discrepancies in dividend distribution due to changes in shareholder accounts during the application period [9].

Group 1 - China Shenhua's net profit for the first three quarters decreased by 10% year-on-year, with total revenue of 213.15 billion yuan, down 16.6% [1][2] - Dongfang Caifu reported a 51% increase in net profit for the first three quarters, reaching 90.97 billion yuan, a 50.57% year-on-year growth [3][4] - Geer Co. achieved a net profit growth of 10.33% year-on-year, totaling 25.87 billion yuan, despite a 2.21% decline in revenue [5][6] Group 2 - Changan Automobile's net profit fell by 14.66% year-on-year, with total revenue of 1,149.27 billion yuan, up 3.58% [7][8] - Zhinanzhen reported a significant net profit increase of 205% year-on-year, reaching 1.16 billion yuan, driven by growth in financial information services [9] - Dongpeng Beverage's net profit grew by 42% year-on-year, totaling 37.61 billion yuan for the first three quarters [10][11] Group 3 - Ping An Bank's net profit decreased by 2.8% year-on-year, with total revenue of 1,006.68 billion yuan, down 9.8% [12][13] - Goldwind Technology reported a 171% increase in net profit for the third quarter, reaching 25.84 billion yuan for the first three quarters [15] - Yilong Co. achieved a net profit growth of 113.97% year-on-year, totaling 19.88 billion yuan in the third quarter [16][17] Group 4 - Tongwei Co. reported a net loss of 5.27 billion yuan for the first three quarters, with total revenue of 646 billion yuan, down 5.38% [18][19] - CITIC Securities' net profit increased by 52% year-on-year, reaching 231.59 billion yuan for the first three quarters [20] - Wanhua Chemical's net profit decreased by 17.45% year-on-year, totaling 91.57 billion yuan for the first three quarters [21] Group 5 - Luoyang Molybdenum's net profit increased by 96.4% year-on-year, reaching 142.80 billion yuan for the first three quarters [22] - Xiamen Tungsten's net profit grew by 41.54% year-on-year, totaling 5.52 billion yuan for the first three quarters [44] - Huazhong Cement's net profit increased by 76% year-on-year, reaching 20.04 billion yuan for the first three quarters [41]

Group 1 - Tianshan Aluminum Industry held its 18th meeting of the 6th board of directors on October 24, 2025, in Shanghai, where it reviewed the proposal for nominating independent director candidates [1] - For the first half of 2025, Tianshan Aluminum's revenue composition was entirely from the aluminum industry, accounting for 100.0% [1] - As of the report date, Tianshan Aluminum's market capitalization was 62.3 billion yuan [1] Group 2 - A well-known brand spent 170 million yuan to acquire 2,000 shares of a target company with a registered capital of only 10,000 Hong Kong dollars, raising questions about the necessity of the acquisition [1]

Core Insights - Tianshan Aluminum achieved a revenue of 22.32 billion yuan in the first three quarters of 2025, representing a year-on-year growth of 7.34% [1] - The net profit attributable to shareholders reached 3.34 billion yuan, up 8.31% year-on-year, with a basic earnings per share of 0.73 yuan [1] - The company is actively pursuing a green low-carbon transformation project for 1.4 million tons of electrolytic aluminum capacity, expected to increase total output by nearly 20% [2] Financial Performance - In Q3 2025, Tianshan Aluminum's net profit reached 1.256 billion yuan, with a quarter-on-quarter growth of approximately 34% [1] - The company's financial expenses for the first three quarters were 382 million yuan, a decrease of 30.8% year-on-year, enhancing profit growth potential [1] Production and Cost Management - The average selling price of electrolytic aluminum increased by about 2% quarter-on-quarter due to improved market conditions [1] - Production costs decreased as high-priced alumina inventory was gradually consumed, and self-generated electricity costs fell due to regional coal price advantages [1] Shareholder Returns - Tianshan Aluminum announced a mid-term dividend plan, distributing 2 yuan per 10 shares, totaling 920 million yuan, with a commitment to maintain a dividend payout ratio of no less than 50% of net profit for 2025 [2] - The company has completed a new round of share buybacks, repurchasing 23.71 million shares for over 200 million yuan, reflecting management's confidence in the company's intrinsic value [3] Resource Management - Tianshan Aluminum is actively seeking quality bauxite resources domestically and internationally, aiming to enhance self-sufficiency in upstream resources [3] - The company is aligned with national policies to increase domestic bauxite resource availability by 3% to 5% by 2027 [3]

Core Viewpoint - Tianshan Aluminum (002532) reported its Q3 2025 results, showing a slight decline in revenue but a significant increase in net profit [1] Financial Performance - Q3 revenue was 6.994 billion yuan, a year-on-year decrease of 0.25% [1] - Q3 net profit reached 1.256 billion yuan, reflecting a year-on-year increase of 24.3% [1] - For the first three quarters, total revenue was 22.321 billion yuan, representing a year-on-year growth of 7.34% [1] - Net profit for the first three quarters was 3.34 billion yuan, with a year-on-year increase of 8.31% [1] - Basic earnings per share stood at 0.73 yuan [1]