Investment Rating - The report maintains an "Overweight" rating for the non-ferrous metals industry [7]. Core Viewpoints - The ongoing escalation of the Russia-Ukraine conflict has led to a rebound in gold prices, but expectations of a pause in interest rate cuts by the Federal Reserve may limit further increases in gold prices. The market anticipates a 44% chance of a pause in rate cuts in December, up from 17% the previous week. Additionally, a strong US dollar is constraining gold's upward momentum. However, the long-term outlook remains positive for gold as a hedge against inflation and currency depreciation [2][32]. - In the industrial metals sector, copper and aluminum inventories are at low levels, which supports prices. The demand for copper is showing marginal improvement due to policies promoting upgrades and replacements. The aluminum sector is facing challenges due to rising alumina prices, which have negatively impacted electrolytic aluminum profits [3][5]. - The rare earth market is expected to perform well in the fourth quarter due to seasonal demand, despite ongoing supply disruptions from Myanmar [5]. Summary by Sections 1. Weekly Sector Performance Review - The non-ferrous metals index experienced a slight decline of 0.31% week-on-week, ranking 5th among 31 sectors. Year-to-date, the sector has seen an overall increase of 9.94% [19]. 2. Price and Inventory Performance 2.1 Precious Metals - COMEX gold closed at $2718.20 per ounce, up 5.87% week-on-week. COMEX silver rose to $31.405 per ounce, an increase of 3.53%. The gold-silver ratio reached 86.55, up 2.27% [31][32]. 2.2 Industrial Metals - Copper prices were reported at $8972.5 per ton, with a slight increase of 0.04%. Aluminum prices fell to $2630 per ton, down 1.26%. Copper inventories showed a slight increase, while aluminum inventories decreased [3][37]. 2.3 Energy Metals - Lithium carbonate prices increased by 0.51%, reaching 79,100 yuan per ton, while hydroxide lithium prices rose by 1.05% to 67,900 yuan per ton [44]. 2.4 Minor Metals and New Materials - Prices for rare earth elements showed mixed results, with praseodymium-neodymium oxide down 2.38% and dysprosium oxide down 0.88%. Other minor metals also experienced varied price changes [4][56]. 3. Important News of the Week (2024.11.18-2024.11.24) - The European Parliament's Trade Committee Chairman indicated that the EU is close to reaching a tariff agreement with China regarding electric vehicles, reflecting ongoing adjustments in trade policies [70][72].

Investment Rating - The industry investment rating is "Increase" [4][5] Core Viewpoints - The Australian Aluminium Association advocates for the inclusion of bauxite, alumina, and aluminium in the "Critical Minerals List," which may enhance the strategic value of aluminium resources and raise investment entry barriers [4] - The updated Critical Minerals List includes 30 minerals, but bauxite, alumina, and aluminium were not included, indicating a potential shift in the strategic importance of these resources [4] - If bauxite, alumina, and aluminium are included in the Critical Minerals List, it could lead to a more fragile global aluminium supply chain, making aluminium prices more susceptible to fluctuations [4] - The inclusion could also boost industry valuations and allocation value, particularly benefiting domestic companies that have already established overseas aluminium resource layouts [5] Summary by Relevant Sections - **Industry Overview**: The report discusses the strategic importance of aluminium resources and the implications of Australia's potential policy changes regarding critical minerals [4] - **Market Dynamics**: The concentration of global bauxite production, with Australia and Guinea accounting for nearly 49% of total output, highlights the vulnerability of the aluminium supply chain [4] - **Investment Opportunities**: Companies such as China Aluminium, Tianshan Aluminium, China Hongqiao, and Nanshan Aluminium are identified as potential beneficiaries of the strategic shifts in aluminium resource management [5]

Investment Rating - The report maintains a rating of "Overweight" for the non-ferrous metals industry [4]. Core Insights - The non-ferrous metals industry saw a slight year-on-year increase in net profit attributable to shareholders of 0.05% in the first three quarters of 2024. The industry achieved a total operating revenue of CNY 25,671.14 billion, a year-on-year growth of 2.95%, while total profit decreased by 0.34% to CNY 1,714.10 billion [4][13]. - The gold sector performed well, with operating revenue reaching CNY 2,177.60 billion, up 24.98% year-on-year, and net profit attributable to shareholders increasing by 43.79% to CNY 92.37 billion [4][19]. - The copper sector reported a net profit growth of 27.81%, with operating revenue of CNY 12,063.74 billion, reflecting a 4.83% increase year-on-year [4][41]. - The aluminum sector also showed strong performance, with net profit increasing by 32.97% to CNY 294.51 billion, while operating revenue grew by 4.55% [4][64]. - The lead-zinc sector experienced a net profit increase of 25.86%, despite a slight decline in operating revenue [4][41]. - The tin sector saw significant growth, with companies like Tin Industry Co. and Xinyi Nonferrous achieving net profit increases of 17.2% and 139.4%, respectively [4]. Summary by Sections 1. Overview - The non-ferrous metals industry recorded a slight increase in net profit attributable to shareholders of 0.05% in the first three quarters of 2024, with total operating revenue of CNY 25,671.14 billion and total profit of CNY 1,714.10 billion [4][13]. 2. Precious Metals - The gold sector's performance improved significantly, with a year-on-year revenue increase of 24.98% and net profit growth of 43.79% [4][19]. 3. Industrial Metals - **Copper**: The copper sector achieved a net profit growth of 27.81% with operating revenue of CNY 12,063.74 billion [4][41]. - **Aluminum**: The aluminum sector reported a net profit increase of 32.97% and operating revenue growth of 4.55% [4][64]. - **Lead-Zinc**: The lead-zinc sector saw a net profit increase of 25.86% despite a decline in revenue [4][41]. - **Tin**: The tin sector experienced substantial growth, with notable increases in net profits for key companies [4]. 4. Q4 Outlook and Investment Recommendations - The report suggests focusing on non-ferrous metals with favorable supply-demand dynamics and potential price increases, highlighting specific companies in both precious and industrial metals sectors [4].

Group 1 - The core viewpoint indicates a slight decrease in the margin balance of margin trading in the A-share market, with overall trading activity declining. The PE valuation percentiles of major indices have generally decreased, with the CSI 500 leading the decline. The PE valuation percentiles of major styles have also fallen, particularly in the cyclical style, while the media sector has seen a significant increase in valuation percentiles [4][5][6]. Group 2 - The stock-bond yield spread has decreased, indicating a relatively high investment cost-effectiveness in equity investments. As of November 27, 2024, the dividend yield of the CSI 300 is 3.00%, while the 10-year government bond yield is 2.08%, resulting in a stock-bond yield of -0.92%, which is below the average since 2024 [14][17]. - The average margin balance for the week of November 21-27 was approximately 1.84 trillion yuan, a slight decrease of 0.11% compared to the previous week. The proportion of financing purchases in total A-share trading volume also decreased, averaging 9.65%, down 0.54 percentage points from the previous week [17][21]. - Trading activity has generally declined, with the CSI 300 experiencing the largest drop in trading volume, down 23.37% week-on-week. The turnover rates of major indices have also decreased, with the ChiNext index seeing the largest decline of 0.59 percentage points [21][22]. Group 3 - The PE valuation percentiles of major indices have generally declined, with the CSI 500 leading the drop at 4.7 percentage points. The Shanghai Composite Index and Shenzhen Component Index both fell by 2.8 percentage points [25][31]. - All major styles have seen a decline in PE valuation percentiles, with the cyclical style experiencing the largest drop of 3.4 percentage points. The growth style also saw a decrease of 2.4 percentage points [31][32]. - Most industry PE valuation percentiles have decreased, with the construction sector leading the decline at 6.8 percentage points. In contrast, the media sector saw an increase of 3.5 percentage points [41][43].

Macro Liquidity - The 2-year and 10-year government bond yields in China decreased, with the 10Y-2Y yield spread rising to 0.6914%[14] - The People's Bank of China injected a net of 187.1 billion yuan into the market, while the MLF net withdrawal in November was 1.45 trillion yuan[14] - The 10-year U.S. Treasury yield rose to 4.43%, and the U.S. dollar index strengthened to 106.68[20] Market Liquidity - A total of 52 new funds were established in November, with 29 being equity funds, marking the highest monthly issuance since June 2015 at approximately 76 billion yuan[5] - The number of newly established ETFs decreased year-on-year, with 134 ETFs created in 2024, compared to 139 in 2023, totaling 85.9 billion yuan in issuance[27] - Southbound capital saw a net inflow of approximately 332 billion yuan last week, with a total net inflow of 605.1 billion yuan year-to-date[6] Financing and Fundraising - The average financing purchase amount was 223.3 billion yuan, down 13.7% week-on-week, with a total margin balance of approximately 1.84 trillion yuan[42] - In November, there were 3 IPOs raising 1.25 billion yuan, while the total equity financing scale was about 15.8 billion yuan[48] - The net inflow in the electronics sector was the highest at approximately 71.8 billion yuan, followed by computers at 64.4 billion yuan[44] Risk Factors - Economic recovery may be weaker than expected, potentially impacting overall economic performance[50] - The pace of overseas interest rate cuts may not meet expectations, affecting global capital flows and investor risk appetite[50]

Investment Rating - The report maintains an "Accumulate" rating for the building materials industry [2] Core Insights - In October, the second-hand housing transactions in first-tier cities showed signs of recovery, with a narrowing decline in prices. The average price of second-hand residential properties in 100 cities was 14,360 yuan/square meter, down 0.60% month-on-month, which is a 0.10 percentage point improvement from September. The transaction volume in core cities increased significantly, with Shenzhen's second-hand residential transaction volume reaching a monthly high since April 2021 [13][15] - The Ministry of Finance and other departments announced a tax policy to support home purchases, reducing the deed tax rate for families buying their first or second homes under 140 square meters to 1% [13][15] - The policy for urban village renovations has been expanded to nearly 300 cities, which is expected to release urbanization potential and stabilize market expectations [15][17] - The report suggests focusing on leading companies in the real estate supply chain, such as Beixin Building Materials, Jianlang Hardware, Weixing New Materials, and Dongfang Yuhong, as well as monitoring the progress of projects like the Motuo Hydropower Station and the Gan-Yue Canal [3][18] Summary by Sections 1. Key Insights and Investment Recommendations - The report highlights the recovery in second-hand housing transactions and the narrowing price decline in first-tier cities, indicating a potential stabilization in the real estate market [13][15] - Tax policies aimed at reducing home purchase costs are expected to further stabilize market expectations [13][15] - The expansion of urban village renovation policies is anticipated to enhance urbanization development [15][17] 2. Market Review 2.1. Sector Performance - The A-share building materials index fell by 2.33% during the week of November 18-22, 2024, outperforming the CSI 300 index by 0.27 percentage points [19] - Year-to-date, the building materials index has decreased by 4.28%, underperforming the CSI 300 index by 16.94 percentage points [21] 2.2. Individual Stock Performance - Top gainers for the week included Beijing Lier (+15.67%) and Zhengwei New Materials (+13.52%), while top losers included Nachuan Co. (-10.57%) and Yashi Chuangneng (-7.40%) [29] - Year-to-date, Huali Co. has seen the highest increase at +120.36%, while ST Shentian has the largest decline at -72.83% [31] 3. Industry Dynamics - The report notes stable pricing in the alkali-free yarn market, with mainstream transaction prices for 2400tex alkali-free yarn ranging from 3,300 to 3,600 yuan/ton [34] - Cement prices have shown a slight increase, with the national average for bagged cement at 354.52 yuan/ton, up 1.48% week-on-week [35] - The float glass market has seen a weakening in transactions, with prices in some regions showing slight declines [38] 4. Company Dynamics - Jinju Group reported a 34.17% year-on-year increase in revenue for Q3 2024, with net profit rising by 192.66% [40] - The company has also engaged in carbon trading, which is expected to impact production operations and green transformation significantly [40] 5. Company Announcements - China Nuclear Engineering announced new contracts worth 115.601 billion yuan as of October 2024 [43] - China National Materials International signed a contract for a solar power project in Iraq valued at 351.5 million USD [43]

Investment Rating - The industry investment rating is maintained as "Overweight" [2][4]. Core Viewpoints - The CPIA reported that the tax-inclusive cost of solar modules in early November was 0.69 CNY/W, an increase of 0.01 CNY/W compared to October. This regular release of cost data by industry associations is expected to stabilize module prices and promote healthy industry development [13][4]. - In the first ten months of 2024, the domestic solar power installation reached 181.30 GW, a year-on-year increase of 27.17%. In October alone, the new installations were 20.42 GW, up 49.93% year-on-year but down 2.25% month-on-month [26][28]. - The total export value of battery components in the first ten months was 26.842 billion USD, a decrease of 30.82% year-on-year, while inverter exports in October amounted to 659 million USD, an increase of 19.03% year-on-year [28][26]. Market Review - The power equipment sector declined by 1.66% over the past week, ranking 17th among all primary industries. The electrical machinery sector saw an increase of 1.04%, while solar equipment dropped by 4.68% [15][18]. - The solar battery components saw a decrease of 3.12%, while solar auxiliary materials and processing equipment fell by 4.57% and 6.71%, respectively [21][18]. Solar Industry Data Tracking - The domestic battery component export value for October was 2.163 billion USD, down 19.29% year-on-year, while the cumulative inverter export value for the first ten months was 6.990 billion USD, down 20.57% [28][26]. - The average price of N-type silicon rods was 40,500 CNY/ton, down 2.88% month-on-month, while the average price of PERC 182 battery cells remained stable at 0.275 CNY/W [36][39]. Industry and Company Dynamics - The report highlights several key projects and tenders in the solar industry, including a 280 MW solar power project in Qujing City and various procurement announcements from companies like Longi Green Energy and Tongwei Co., Ltd. [47][49][50].

Investment Rating - The industry investment rating is maintained as "Overweight" [6]. Core Viewpoints - International oil prices have shown an upward trend, with Brent crude oil futures settling at approximately $75.17 per barrel, reflecting a weekly increase of about 5.81% [18]. - The EIA forecasts that U.S. crude oil production will continue to grow, reaching 13.2 million barrels per day in 2024 and nearly 13.5 million barrels per day in 2025, which supports the upstream oil and gas companies [27]. - The North American active rig count has decreased week-on-week, but the global drilling platform count has increased, benefiting oil service companies [28]. - The refining sector shows potential for performance recovery, with Singapore diesel and gasoline price spreads increasing, while ethylene and PX spreads have decreased [33]. Summary by Sections Market Performance - The CITIC oil and petrochemical sector declined by approximately 1.66% during the week of November 18-22, 2024, while the Shanghai Composite Index fell by about 1.91% [14]. - Leading stocks in the sector included Bohai Chemical and Water Development Gas, while stocks like Dongfang Shenghong and Hongtian Co. saw significant declines [17]. Upstream Oil & Gas Sector - International oil prices have increased, with Brent and WTI prices rising by 5.81% and 6.30% respectively [18]. - The EIA's short-term outlook indicates that despite growth in U.S. oil production, international oil prices are expected to remain relatively high, benefiting upstream companies [27]. Oil Service Sector - The North American active rig count has decreased, with a year-on-year decline of 39 rigs, while global drilling platforms have increased, indicating a positive outlook for oil service companies [28]. Midstream Refining Sector - Domestic refined oil prices have shown slight fluctuations, with significant increases in Singapore diesel and gasoline price spreads, indicating potential recovery for refining companies [33]. Polyester End-Use Sector - The POY price spread has decreased, and overall inventory levels have accumulated, suggesting a potential recovery space for long filament enterprises [39]. Investment Recommendations - The report suggests four main investment themes: focusing on energy state-owned enterprises, oil service companies, long filament industry players, and refining companies with new capacity plans [52].

Investment Rating - The industry investment rating is maintained as "Increase" [9] Core Insights - China Unicom launched the 3.0 version of the integrated vehicle-road-cloud solution, focusing on investment opportunities in the vehicle-road-cloud sector [6][17] - The autonomous driving sector is highlighted by the commercial operation of the autonomous sanitation vehicles by WeRide in Singapore, indicating potential in the smart driving industry chain [6][19] - China Mobile released the first fully-scheduled Ethernet (GSE) DPU chip "ZhiCuan ZhuoGuang," which is expected to enhance computing power chain performance [6][19] Summary by Sections 1. Key Insights and Investment Recommendations - The report emphasizes investment opportunities in the vehicle-road-cloud sector due to China Unicom's upgraded solution [6][17] - The smart driving sector is recommended for investment, particularly in companies benefiting from WeRide's commercial operations [6][20] - The computing power chain is also highlighted, with recommendations for companies benefiting from China Mobile's DPU chip release [6][20] 2. Market Review (2024.11.18-2024.11.22) 2.1. Sector Performance - The A-share Shenwan Computer Index fell by 3.27%, underperforming the CSI 300 Index by 0.67 percentage points [7][22] - The computer sector ranked 26th among 31 first-level sub-industries in terms of weekly performance [22] 2.2. Stock Performance - Top-performing stocks included Meishi Technology (+44.38%) and Ying Shijian (+23.75%) [34][36] - Underperforming stocks included Tianji Technology (-24.07%) and Feitian Chengxin (-23.18%) [36] 3. Industry News - China Mobile, in collaboration with Huawei and others, launched the first fully-scheduled Ethernet DPU chip "ZhiCuan ZhuoGuang," which supports 200G port rates and enhances network performance by over 30% compared to traditional networks [38][39] - The first commercial autonomous sanitation project in Singapore was launched by WeRide, marking a significant milestone in the smart driving sector [42] - China Unicom's 3.0 version of the vehicle-road-cloud solution was released, focusing on smart connected vehicles and enhancing safety and efficiency [43]

Investment Rating - The report maintains an "Accumulate" rating for the communication industry [4]. Core Insights - China Telecom has released the first standard for hollow-core fiber, which is expected to benefit related sectors. The company plans to procure 95 kilometers of hollow-core fiber for testing in 2024 [12][32]. - The demand for ultra-large capacity optical transmission systems has surged due to emerging businesses like artificial intelligence, making hollow-core fiber a focal point in the industry [12][32]. - The "Thousand Sails Constellation" satellite internet project is set to launch operations in Brazil by 2026, which is anticipated to benefit related sectors [14][32]. - The National Data Bureau has proposed a gradual upgrade of 5G networks to 5G-A, which is expected to benefit the industry chain [15][33]. Summary by Sections 1. Core Insights and Investment Recommendations - Hollow-core fiber is gaining attention, with China Telecom's procurement marking a significant step. The technology aims to overcome limitations of traditional quartz glass fibers [12][32]. - The satellite internet initiative "Thousand Sails Constellation" will provide broadband access to underserved areas in Brazil, enhancing digital inclusion [14][32]. - The report suggests focusing on sectors such as optical fiber and cable, satellite internet, and communication equipment, recommending specific companies like Zhongtian Technology and ZTE Corporation [16]. 2. Market Review 2.1. Sector Performance - The A-share communication index fell by 3.78% from November 18 to November 22, underperforming the CSI 300 index by 1.18 percentage points [19][20]. - Within the communication sector, communication equipment declined by 3.55%, while communication services dropped by 4.26% [19][20]. 2.2. Stock Performance - The top-performing stocks included Erli San (+26.72%) and Yongding Co. (+25.00%), while the worst performers included Youbuxun (-20.74%) and *ST Pengbo (-14.35%) [29]. 3. Industry News - China Telecom's announcement of hollow-core fiber procurement is a significant development in the optical fiber sector [32]. - The partnership between Shanghai Yuanxin Satellite Technology and Telecomunicações Brasileiras S.A. aims to enhance broadband access in Brazil [14][32]. - The National Data Bureau's guidelines for upgrading to 5G-A are expected to drive innovation in the communication infrastructure [15][33]. 4. Company Dynamics - ZTE Corporation showcased its solutions at the 2024 World Internet Conference, emphasizing its contributions to AI and digital transformation [35]. - Huace Navigation has formed partnerships with several automotive companies for autonomous driving technology [35]. 5. Company Announcements - Guangha Communication plans to acquire a 51% stake in Beijing Yiyong Shidian Technology for 66.3 million yuan, expanding its multimedia and emergency communication capabilities [38]. - Weisheng Information intends to acquire a property in Changsha for 144 million yuan, which will enhance its operational capacity [38].