Investment Rating - Industry rating: Recommended [3] Core Insights - The report emphasizes the strategic revaluation of key metals, particularly focusing on rare earths and cobalt [24] - Nickel prices are expected to be supported due to tightened supply expectations following Indonesia's new regulation reducing the approval cycle for mining plans from three years to one year [26][27] - Cobalt prices have continued to rise, with expectations of increasing supply tightness further driving prices up [30][33] - Antimony supply is expected to remain tight, providing a bottom support for antimony prices [34] - Lithium carbonate prices are projected to remain strong due to ongoing demand and inventory depletion [16] - China's dominance in rare earth supply is reinforced by stricter export controls, which are expected to support rare earth prices [18] - Tin supply remains uncertain due to ongoing challenges in overseas supply, which is expected to support tin prices [19] - Tungsten prices are supported by a tightening supply situation, with production rates slowing down [20] - Uranium supply tightness is anticipated to continue, supporting uranium prices [21] Summary by Sections Nickel and Cobalt Industry Update - Indonesia's new regulation on mining approvals is expected to tighten future ore supply, supporting nickel prices [26] - As of October 24, LME nickel price was $15,085 per ton, up 1.04% from October 17 [26] - Cobalt prices have risen significantly, with electrolytic cobalt reaching 408,500 CNY per ton, a 6.94% increase [30] Antimony Industry Update - Domestic antimony prices have decreased, but long-term supply tightness is expected to support prices [34] - China's antimony production is projected to dominate global supply, accounting for 60% of the total [34] Lithium Industry Update - Lithium carbonate prices have increased, with a market average of 73,700 CNY per ton as of October 24 [16] - Demand from the battery sector continues to drive price support [16] Rare Earth Industry Update - China's strict export controls on rare earths are expected to tighten supply and support prices [18] - The report highlights the importance of China's role in the global rare earth supply chain [18] Tin Industry Update - Tin prices are supported by supply uncertainties, particularly from Myanmar and Indonesia [19] - As of October 24, LME tin price was $35,925 per ton, up 2.42% from October 17 [19] Tungsten Industry Update - The tungsten supply situation is tightening, with production rates slowing down [20] - Prices for tungsten concentrate have increased, reflecting supply constraints [20] Uranium Industry Update - The report indicates a continued tight supply situation for uranium, supporting price stability [21] - Recent production guidance reductions from major suppliers are expected to impact future supply [21]

Group 1 - The core material price of electrolyte continues to rise, with lithium hexafluorophosphate reaching 87,000 yuan per ton, a 51% increase over the past month [1] - Lithium carbonate futures have rebounded over 9% in the last six trading days [1] - The CSI New Energy Vehicle Industry Index (930997) has increased by 1.16%, with constituent stocks such as Yahua Group rising by 10.03% and Zhongmin Resources by 6.79% [1] Group 2 - As of September 30, 2025, the top ten weighted stocks in the CSI New Energy Vehicle Industry Index account for 54.61% of the index, including CATL, Huichuan Technology, and BYD [2] - The weightings of the top stocks include CATL at 9.80%, Huichuan Technology at 9.63%, and BYD at 9.10% [4]

Core Points - Zhongkuang Resources has seen a stock price increase of 3.42% on October 23, reaching 49.95 CNY per share, with a trading volume of 1.14 billion CNY and a turnover rate of 3.26%, resulting in a total market capitalization of 36.039 billion CNY. The stock has risen for three consecutive days, accumulating a total increase of 7.72% during this period [1] Company Overview - Zhongkuang Resources Group Co., Ltd. is located in Fengtai District, Beijing, and was established on June 2, 1999. The company was listed on December 30, 2014. Its main business involves the development and utilization of rare light metal resources (lithium, cesium, rubidium), geological exploration technical services, mineral rights investment, international mineral product trade, and international engineering [1] - The revenue composition of Zhongkuang Resources is as follows: 71.26% from merchandise sales, 18.70% from other sources, 9.22% from operating leases, and 0.82% from service provision [1] Fund Holdings - According to data from the top ten holdings of funds, one fund under Huashang Fund has a significant position in Zhongkuang Resources. The Huashang New Energy Vehicle Mixed A Fund (013886) reduced its holdings by 59,100 shares in the second quarter, holding a total of 366,900 shares, which accounts for 2.63% of the fund's net value, ranking as the seventh largest holding. The estimated floating profit today is approximately 605,400 CNY, with a total floating profit of 1.3135 million CNY during the three-day increase [2] - The Huashang New Energy Vehicle Mixed A Fund (013886) was established on November 17, 2021, with a current scale of 323 million CNY. Year-to-date returns are 33.8%, ranking 2172 out of 8159 in its category; the one-year return is 31.05%, ranking 2181 out of 8030; since inception, the fund has experienced a loss of 45.17% [2] Fund Management - The fund managers of Huashang New Energy Vehicle Mixed A Fund (013886) are Zhang Wenlong and Chen Xiaoqiong. As of the report, Zhang Wenlong has a cumulative tenure of 2 years and 82 days, managing assets totaling 1.221 billion CNY, with the best fund return during his tenure being 73.32% and the worst being 30.98%. Chen Xiaoqiong has a cumulative tenure of 291 days, managing assets totaling 841 million CNY, with the best fund return during her tenure being 85.74% and the worst being 28.18% [3]

Group 1 - The core point of the news is that Zhongkuang Resources has seen a significant stock price increase, rising 3.42% to 49.95 CNY per share, with a total market capitalization of 36.039 billion CNY and a cumulative increase of 7.72% over three days [1] - Zhongkuang Resources specializes in the development and utilization of rare light metal resources (lithium, cesium, rubidium), geological exploration services, mineral rights investment, international mineral trade, and international engineering [1] - The company's revenue composition includes 71.26% from merchandise sales, 18.70% from other sources, 9.22% from operating leases, and 0.82% from services [1] Group 2 - According to data, one fund under GF Fund has Zhongkuang Resources as a significant holding, with the GF CSI Rare Metals ETF (159608) reducing its holdings by 36,500 shares in Q2, now holding 201,800 shares, which accounts for 3.09% of the fund's net value [2] - The GF CSI Rare Metals ETF has generated a floating profit of approximately 333,000 CNY today and 722,500 CNY during the three-day increase [2] - The fund has a total scale of 210 million CNY and has achieved a year-to-date return of 66.35%, ranking 134 out of 4,218 in its category [2]

Core Viewpoint - Zhongkuang Resources has shown a mixed performance in recent trading, with a slight increase in stock price but a net outflow in financing activities, indicating potential investor caution amid fluctuating financial results [1][2]. Financing Activities - On October 22, Zhongkuang Resources recorded a financing buy-in of 101 million yuan, with a financing repayment of 103 million yuan, resulting in a net financing outflow of 1.61 million yuan [1]. - The total financing balance as of October 22 is 16.58 billion yuan, with the financing balance accounting for 4.74% of the circulating market value, which is above the 90th percentile of the past year [1]. - In terms of securities lending, 2,000 shares were repaid while 59,100 shares were sold, amounting to 2.85 million yuan in sales, with a remaining short position of 146,200 shares valued at 7.06 million yuan, indicating a lower level compared to the 40th percentile of the past year [1]. Financial Performance - For the first half of 2025, Zhongkuang Resources reported a revenue of 3.267 billion yuan, reflecting a year-on-year growth of 34.89%, while the net profit attributable to shareholders decreased by 81.16% to 89.13 million yuan [2]. - Cumulatively, the company has distributed 1.728 billion yuan in dividends since its A-share listing, with 1.592 billion yuan distributed over the past three years [3]. Shareholder Structure - As of June 30, 2025, the number of shareholders increased to 65,900, with an average of 10,786 circulating shares per person, a decrease of 3.67% from the previous period [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 16.4078 million shares, an increase of 786,000 shares, while the Southern CSI 500 ETF increased its holdings by 1.4403 million shares to 10.7406 million shares [3].

Market Overview - The small metals sector experienced a decline of 1.71% on October 22, with Shenghe Resources leading the drop [1] - The Shanghai Composite Index closed at 3913.76, down 0.07%, while the Shenzhen Component Index closed at 12996.61, down 0.62% [1] Individual Stock Performance - Notable gainers included: - Zhongtung High-tech (000657) with a closing price of 18.14, up 3.54% and a trading volume of 830,800 shares, totaling 1.49 billion yuan [1] - Zhongkuang Resources (002738) closed at 48.30, up 2.29% with a trading volume of 193,000 shares, totaling 920 million yuan [1] - Major decliners included: - Shenghe Resources (600392) closed at 22.97, down 4.21% with a trading volume of 787,300 shares, totaling 1.81 billion yuan [2] - Northern Rare Earth (600111) closed at 50.79, down 2.98% with a trading volume of 1,443,800 shares, totaling 731.5 million yuan [2] Capital Flow Analysis - The small metals sector saw a net outflow of 1.409 billion yuan from major funds, while retail investors contributed a net inflow of 1.378 billion yuan [2] - The table of capital flow indicates that Zhongtung High-tech had a net inflow of 1.11 billion yuan from major funds, while it faced a net outflow of 96.99 million yuan from retail investors [3] - Zhongkuang Resources had a net inflow of 31.17 million yuan from major funds, but a net outflow of 72.16 million yuan from retail investors [3]

Core Viewpoint - The recent sharp decline in gold prices, attributed to profit-taking and reduced safe-haven demand due to easing geopolitical tensions, has negatively impacted leading companies in the precious metals sector, particularly gold stocks [3]. Summary by Category Market Performance - On October 22, the non-ferrous metal sector ETF (159876) fell by 1.73%, with a trading volume of nearly 300 million yuan, indicating active trading [1]. - As of October 21, the non-ferrous metal sector ETF (159876) had a total size of 565 million yuan, the largest among three ETFs tracking the same index [1]. Stock Movements - Leading gold stocks experienced significant declines, with Western Gold and Hunan Gold dropping over 5%, while Sichuan Gold and Chifeng Gold fell more than 4% [1]. - Conversely, Baotai Co. rose over 2%, and Hailiang Co. and Yun Aluminum gained more than 1%, with several other stocks like Zhongkuang Resources and China Aluminum also performing well [1]. Gold Price Dynamics - Gold prices saw a rare drop of over 6%, marking the largest daily decline since April 2013, primarily due to profit-taking and a stronger dollar making gold more expensive for buyers [3]. - Analysts suggest that while current pressures exist, the long-term outlook for gold remains positive as long as the Federal Reserve maintains its current interest rate path [3]. Sector Outlook - The non-ferrous metals sector is expected to benefit from a long-term supply-demand imbalance, driven by increased capital expenditure and strategic resource reserves amid global manufacturing investment growth [4]. - Specific segments such as rare earths, lithium, and copper are highlighted for their growth potential due to favorable market conditions and technological advancements [3][4]. Investment Strategy - A diversified approach to investing in the non-ferrous metals sector is recommended, utilizing the non-ferrous metal sector ETF (159876) to mitigate risks associated with individual metal investments [6].

Core Viewpoint - Zhongkuang Resources has shown a significant stock price increase of 35.29% year-to-date, despite a recent decline of 4.94% over the last five trading days [1] Financial Performance - For the first half of 2025, Zhongkuang Resources achieved operating revenue of 3.267 billion yuan, representing a year-on-year growth of 34.89% [2] - The net profit attributable to shareholders decreased by 81.16% to 89.1289 million yuan [2] Stock Market Activity - As of October 21, Zhongkuang Resources' stock price was 47.35 yuan per share, with a market capitalization of 34.163 billion yuan [1] - The stock experienced a trading volume of 132 million yuan and a turnover rate of 0.39% [1] - The net inflow of main funds was 4.6682 million yuan, with significant buying and selling activities recorded [1] Shareholder Information - As of June 30, 2025, the number of shareholders increased by 3.78% to 65,900 [2] - The average number of circulating shares per shareholder decreased by 3.67% to 10,786 shares [2] - Major shareholders include Hong Kong Central Clearing Limited and Southern CSI 500 ETF, with notable increases in their holdings [3] Dividend Distribution - Since its A-share listing, Zhongkuang Resources has distributed a total of 1.728 billion yuan in dividends, with 1.592 billion yuan distributed over the past three years [3] Business Overview - Zhongkuang Resources specializes in the development and utilization of rare light metal resources (lithium, cesium, rubidium), geological exploration services, mineral rights investment, international mineral trade, and engineering [1] - The company's revenue composition includes 71.26% from merchandise sales, 18.70% from other sources, 9.22% from operating leases, and 0.82% from services [1] Industry Classification - Zhongkuang Resources is classified under the non-ferrous metals sector, specifically in the small metals category [1] - The company is associated with concepts such as small metals, non-ferrous copper, scarce resources, the Belt and Road Initiative, and lithium batteries [1]

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].