Core Insights - The metal new materials sector experienced a significant increase of 6.99% on October 13, with Galaxy Magnet leading the gains [1] - The Shanghai Composite Index closed at 3889.5, down 0.19%, while the Shenzhen Component Index closed at 13231.47, down 0.93% [1] Sector Performance - Galaxy Magnet (300127) saw a closing price of 38.74, with a remarkable increase of 20.01% and a trading volume of 389,900 shares [1] - New Laifu (301323) also rose by 20.00%, closing at 63.42 with a trading volume of 56,100 shares [1] - Other notable performers included Jinli Permanent Magnet (300748) with a 17.60% increase, closing at 46.90, and Zhongzhou Special Materials (300963) with a 13.85% increase, closing at 26.38 [1] Capital Flow - The metal new materials sector saw a net inflow of 384 million yuan from institutional investors, while retail investors experienced a net outflow of 118 million yuan [2] - The main capital inflow was concentrated in Galaxy Magnet, which had a net inflow of 237 million yuan, accounting for 16.69% of its trading volume [3] - Other companies like Zhenghai Magnetic Materials (300224) and Antai Technology (000969) also attracted significant institutional investment, with net inflows of 168 million yuan and 90 million yuan, respectively [3]

Group 1 - The core issue for end users deploying ASIC chips is energy efficiency due to unavoidable PDN voltage drop and losses in traditional power supply modes, exacerbated by increased power consumption from AI computing [1] - The shift towards self-developed ASIC chips by overseas AI giants is driven by the need for energy savings, as ASICs offer significant advantages over GPUs in terms of area, energy consumption, integration, and price [1] - The introduction of DDR6 standards is expected to further increase the demand for inductive materials as memory performance, efficiency, and power supply solutions are upgraded compared to previous generations [3] Group 2 - Metal soft magnetic powder cores are essential for energy savings in ASIC applications, as they provide higher saturation magnetic flux density and better thermal stability compared to ferrite materials [2] - The demand for inductors is projected to grow significantly as major AI companies like Meta and Microsoft ramp up their self-developed ASIC chip production, with total demand for inductors expected to exceed 400 million units by 2026 [3] - The leading company in the metal soft magnetic powder industry, Botek New Materials, possesses technological advantages and is expected to rapidly increase production capacity, aiming for a total capacity of 300 million units by 2026 [4]

Investment Rating - The report maintains a "Positive" investment rating for the non-ferrous and steel industry [6]. Core Insights - The demand for power-saving solutions is critical for AI end-users deploying ASIC chips, as the power consumption of AI computing continues to rise significantly [9][13]. - Metal soft magnetic powder cores are essential for ASIC power modules, providing higher current capacity and better thermal stability compared to traditional ferrite materials [9][56]. - The market for metal soft magnetic powder cores is expected to grow substantially due to the increasing deployment of ASIC chips and the upcoming DDR6 memory standards, which will further drive demand for high-performance inductors [9][26]. Summary by Sections Pain Points: Power Saving as a Core Concern for ASIC Deployment - The power consumption of NVIDIA's AI computing cards has increased dramatically, with the latest models reaching up to 2700W, highlighting the urgent need for power-efficient solutions [13][14]. - ASIC chips offer higher efficiency and lower power consumption compared to traditional GPU chips, making them a preferred choice for AI applications [19][24]. - The shift towards self-developed ASIC chips by major AI companies is driven by the need to optimize power efficiency and reduce costs [29][27]. Materials: Metal Soft Magnetic Powder Cores as Essential Components - The vertical stacking design of power modules significantly reduces PDN losses, enhancing overall power efficiency [46]. - The demand for smaller and more efficient inductors is increasing due to the compact design of vertical power modules [48]. - Metal soft magnetic powder cores can handle higher currents and provide better performance in high-power applications compared to traditional materials [56][57]. Market: Dual-Drive from GPU and ASIC - The demand for inductors is projected to exceed 400 million units as AI companies ramp up their ASIC chip production [9][11]. - The introduction of DDR6 memory is expected to further increase the usage of inductors, as it requires improved power integrity and efficiency [9][19]. Application Expansion: DDR6 Memory to Drive Growth - The transition to DDR6 memory will necessitate a higher volume of inductors, as it introduces new power management requirements [19][4]. - The integration of PMIC solutions in DDR5 has already set a precedent for increased inductor usage, which will continue with DDR6 [19][4]. Industry Comparison: Competitive Advantages of Platinum New Materials - Platinum New Materials holds a competitive edge in the production of metal soft magnetic powder due to its advanced atomization technology, which results in finer particle sizes and lower oxygen content [9][21]. - The company's production capacity is expected to ramp up significantly, reaching 300 million units by 2026, positioning it well within the growing market [9][12].

Core Insights - The total import and export value of China's inductive components is projected to increase to $5.655 billion in 2024, representing a year-on-year growth of 3.4% [1] - The trade surplus for inductive components in 2024 is expected to be $890 million, with imports valued at $2.383 billion and exports at $3.272 billion [1] Import Overview - The import value of inductive components in China is forecasted to be $2.383 billion in 2024, showing a decline of 0.7% compared to the previous year [2] - The import quantity is expected to rebound to approximately 170.2 billion units in 2024, reflecting a year-on-year increase of 7.7% [2] - For the first seven months of 2025, the import value is estimated at $1.339 billion, with an import quantity of 97.247 billion units [2] Major Import Sources - Japan is the largest source of inductive component imports, accounting for $760 million in 2024, which is 31.9% of total imports [6] - The Philippines and Vietnam contribute 12.07% and 10.26% respectively to the import market [6] Export Overview - The export value of inductive components is projected to reach $3.272 billion in 2024, marking a year-on-year increase of 6.6% [8] - The export quantity is expected to be 97.820 billion units in 2024, with a year-on-year growth of 14.9% [8] - For the first seven months of 2025, the export value is estimated at $2.124 billion, with an export quantity of 66.644 billion units [8] Major Export Destinations - Hong Kong is the primary destination for inductive component exports, with an expected value of $1.111 billion in 2024, representing 34.05% of total exports [10] - Vietnam ranks second with an export value of $252 million, accounting for 7.70% of total exports [10]

Investment Rating - The report maintains an "Overweight" rating for the steel industry [6]. Core Insights - Demand is expected to gradually stabilize, and the inventory levels are decreasing, indicating a potential recovery in the steel industry [3][6]. - The report highlights that the supply-side adjustments are beginning to take effect, with a significant portion of steel companies still operating at a loss, which may lead to a market-clearing process [3][6]. Summary by Sections 1. Steel Market Overview - The apparent consumption of five major steel products reached 8.7406 million tons, an increase of 237,300 tons week-on-week; construction materials consumption was 3.0445 million tons, up by 99,800 tons; and sheet metal consumption was 5.6961 million tons, up by 137,500 tons [6]. - Total steel inventory decreased to 15.1061 million tons, down by 91,300 tons week-on-week, maintaining a low level [6]. - The operating rate of blast furnaces in 247 steel mills was 84.45%, an increase of 0.47 percentage points week-on-week [6]. 2. Profitability and Production - The average gross profit for rebar was 216.2 CNY/ton, down by 18.1 CNY/ton week-on-week, while hot-rolled coil gross profit was 172.2 CNY/ton, up by 18.4 CNY/ton [6]. - The profitability rate of 247 steel companies was 58.01%, a decrease of 0.86 percentage points week-on-week [6]. 3. Supply and Demand Dynamics - The report anticipates that the negative impact of the real estate sector on steel demand will weaken, while demand from infrastructure and manufacturing is expected to grow steadily [6]. - The recent policy document on the steel industry emphasizes continued production cuts and the exit of inefficient capacity, supporting the expectation of supply-side contraction [6]. 4. Recommendations - The report recommends several companies based on their competitive advantages and market positioning, including Baosteel, Hualing Steel, and CITIC Special Steel, among others [6].

Group 1 - The core viewpoint of the article highlights the significant growth in the non-ferrous metals sector, driven by government initiatives and increasing demand from emerging industries such as new energy vehicles and robotics [1] - The Ministry of Industry and Information Technology, along with eight other departments, has issued a plan for the non-ferrous metals industry, targeting an average annual growth of around 5% in value-added output from 2025 to 2026 [1] - The production of ten types of non-ferrous metals is expected to grow at an average annual rate of approximately 1.5% during the same period [1] Group 2 - The non-ferrous metals sector has seen a substantial price increase, with cobalt prices rising from 169,000-171,000 yuan/ton at the beginning of the year to 325,000 yuan/ton by September 28, marking an increase of nearly 100% [1] - The strong performance of the non-ferrous metals sector is reflected in the stock market, with significant gains in companies such as Placo New Materials, which rose over 10%, and others like Jiangxi Copper and Huayou Cobalt, which saw their stocks hit the daily limit [1]

Market Performance - The metal new materials sector increased by 1.84% on September 30, with Placo New Materials leading the gains [1] - The Shanghai Composite Index closed at 3882.78, up 0.52%, while the Shenzhen Component Index closed at 13526.51, up 0.35% [1] Stock Performance - Placo New Materials (300811) closed at 84.32, with a rise of 12.44% and a trading volume of 227,600 shares, amounting to 1.93 billion yuan [1] - Other notable performers included: - Yuenan New Materials (688786) at 28.98, up 5.84% [1] - Zhenghai Aomaterials (300224) at 16.84, up 3.95% [1] - Zhongzhou Special Materials (300963) at 18.76, up 3.82% [1] - Tunan Co., Ltd. (300855) at 29.94, up 3.74% [1] Capital Flow - The metal new materials sector experienced a net outflow of 189 million yuan from institutional investors and 83.30 million yuan from speculative funds, while retail investors saw a net inflow of 272 million yuan [2] - Specific stock capital flows included: - Zhenghai Magnetic Materials (300224) with a net inflow of 101 million yuan from institutional investors [2] - Zhongzhou Special Materials (300963) with a net inflow of 39.82 million yuan from institutional investors [2] - An Tai Technology (000969) with a net inflow of 15.40 million yuan from institutional investors [2]

Group 1 - The core viewpoint is that the non-ferrous metal industry is experiencing a strong rally, driven by multiple favorable factors, including government initiatives to upgrade metal consumption and a tightening global copper supply [1] - As of September 30, 2025, the Guozheng Non-Ferrous Metal Industry Index (399395) rose by 3.27%, with significant gains in constituent stocks such as Placo New Materials (300811) up 12.90%, Tin Industry Co. (000960) up 9.98%, and Huayou Cobalt (603799) up 9.93% [1] - The non-ferrous ETF fund (159880) increased by 3.70%, with the latest price reported at 1.68 yuan [1] Group 2 - On September 28, eight departments jointly issued a document to promote the upgrade of bulk metal consumption, actively expanding the application of high-end aluminum, copper, and magnesium alloys [1] - The global copper supply is tightening due to a series of production disruptions, leading to a nearly 5% increase in three-month copper prices in September, marking the largest rise since the same month in 2024 [1] - Guotou Securities noted that interest rate futures have priced in expectations for three rate cuts by the Federal Reserve this year, totaling 75 basis points, indicating that the non-ferrous sector is one of the few industries that can significantly benefit from overseas inflation [1] Group 3 - The Guozheng Non-Ferrous Metal Industry Index (399395) selects 50 securities with outstanding scale and liquidity from the non-ferrous metal industry, reflecting the overall performance of listed companies in this sector on the Shanghai and Shenzhen stock exchanges [2] - As of August 29, 2025, the top ten weighted stocks in the index include Zijin Mining (601899), Northern Rare Earth (600111), and Luoyang Molybdenum (603993), with these ten stocks accounting for 50.35% of the total index weight [2]

Core Insights - The Ministry of Industry and Information Technology and six other departments have jointly released the "Work Plan for Stable Growth in the Petrochemical Industry (2025-2026)", emphasizing strict control over new refining capacity and supporting projects that reduce oil dependency and upgrade old facilities [1] - The industrial sector has seen a significant rebound in revenue and profits in August, primarily due to a low base effect, with upstream profit growth slowing and midstream and downstream sectors growing over 25% year-on-year [1] - The cobalt export quota system implemented by the Democratic Republic of the Congo raises concerns about potential raw material shortages, with export quotas set at 18,000 tons for late 2025 and 96,600 tons annually for 2026-2027, indicating a shift from surplus to potential shortage in cobalt resources [2] Industry Summary - The petrochemical industry is expected to undergo structural optimization, with the elimination of outdated capacity and accelerated industrial transformation, creating opportunities for companies with technological advantages and extended supply chains [1] - The equipment manufacturing and raw materials sectors have shown significant profit growth, while the beverage and alcohol sectors have also improved due to short-term demand fluctuations [2] - The market for cobalt is likely to maintain high prices in the medium to long term due to the new export quota system and increased demand from downstream sectors during the peak consumption season [2] ETF Market Insights - As of September 30, 2025, the CSI All Materials Index rose by 1.52%, with the Materials ETF (159944) increasing by 2.06%, marking five consecutive days of gains [3] - The top ten weighted stocks in the index account for 30%, with notable increases in companies like Huayou Cobalt and Luoyang Molybdenum [3] - The current price-to-book ratio of the index is 2.09, lower than other similar indices, aligning with the strategy of investing in undervalued cyclical industries [3]

Market Overview - The A-share market experienced an overall upward trend on September 30, with the Sci-Tech Innovation 50 Index reaching a new high for the year, showing an intraday increase of over 2% [3] - New stocks listed on both A-share and Hong Kong markets performed well, with significant gains on their debut [7][15] New Stock Performance - A-share market saw two new stocks listed, with Yunhan Xincheng (301563) experiencing an intraday surge of over 400%, potentially yielding a profit of approximately 57,500 yuan per lot, ranking among the top for the year [8][10] - The other new stock, Ruili Kemi, saw an intraday increase of nearly 90% [11] - In the Hong Kong market, three new stocks were listed, with Xipuni showing an intraday rise of nearly 340% and maintaining a gain of about 250% [12][17] Industry Highlights - The non-ferrous metals sector saw significant gains, with the sector rising over 2% during the session [5] - Key stocks in this sector included Platinum New Materials, which rose by 14.18%, and others like Boki New Materials and Jingyi Co., which also hit their daily limit [4][5] - Gold and silver prices continued to rise, with domestic gold futures reaching a historical high, surpassing 870 yuan per gram [4] Company Insights - Yunhan Xincheng focuses on electronic component distribution and industrial internet integration, providing a one-stop supply chain service for the electronic manufacturing industry [10] - Ruili Kemi specializes in the research, production, and sales of active safety systems for vehicles, positioning itself as a leader in the commercial vehicle safety system market [12] - Xipuni, a leading designer and manufacturer of gold watch cases, is projected to grow its revenue from 324 million yuan to 457 million yuan from 2022 to 2024, with a compound annual growth rate of 28.2% [13] - Botai Che Lian, a supplier of intelligent cockpit solutions, is the third-largest provider in the Chinese passenger car market, holding a market share of 7.3% [18] Stock Index Performance - The Hang Seng Index showed low volatility, initially rising but later narrowing its gains, with notable movements among its constituent stocks [15][16] - Semiconductor company Huahong Semiconductor saw a significant rise of over 13% following an announcement regarding a share issuance and acquisition [19]