Zhong Guo Neng Yuan Wang·2025-05-06 04:03Core Viewpoint - The new materials sector is expected to continue its growth trajectory due to increasing demand from China's manufacturing industry and the integration of technologies like artificial intelligence, despite a recent decline in the new materials index's valuation [1][4]. Summary by Category Market Performance - As of April 29, 2025, the new materials index decreased by 4.22%, underperforming the CSI 300 index, which fell by 2.89%, resulting in a 1.33 percentage point lag [2]. - The new materials index ranked 23rd among 30 major industry sectors in terms of performance [2]. Price Trends - Basic metal prices saw a general decline in April 2025, with notable decreases in copper (-3.52%), aluminum (-2.90%), lead (-2.96%), zinc (-4.51%), tin (-9.02%), and nickel (-4.74%) [2]. - Rare gas prices experienced slight declines in April 2025, with helium priced at 655 RMB per bottle (-0.27%), xenon at 27,000 RMB per cubic meter (-3.99%), neon at 120 RMB per cubic meter (-4.00%), and krypton at 275 RMB per cubic meter (-8.92%) [3]. Export Data - In March 2025, exports of superhard materials and products increased by 32.22% year-on-year, totaling 14,000 tons, while export revenue decreased by 9.35% to 14.4 million USD [3]. - The average export price for superhard materials fell by 31.44% to 10.35 USD per kilogram [3]. Valuation Metrics - The price-to-earnings ratio (PE) of the new materials index as of April 29, 2025, was 22.94, reflecting an 11.57% decrease from the previous month and positioning it at the 53.90 percentile of historical valuations since 2022, indicating a reasonable valuation for the sector [1][4]. Future Outlook - The new materials sector is anticipated to enter a prosperous cycle driven by domestic demand recovery and the push for domestic alternatives, maintaining an investment rating of "stronger than the market" [1][4].