Ge Long Hui·2026-01-14 06:21Core Viewpoint - 2026 is identified as the "Year of the Red Horse," which is favorable for the Chinese base metals market due to factors such as a weak dollar, a U.S. interest rate cut cycle, and ongoing supply tightness in copper and aluminum [1] Group 1: Market Drivers - Demand drivers for this year include a 10% year-on-year increase in grid investment, a 27% growth in electric vehicle battery production, a 41% increase in energy storage systems, and rising AI power demand [1] - The real estate and consumer sectors are experiencing weakness, while the implementation of anti-involution policies is becoming more balanced but currently lacks strong enforcement [1] Group 2: Investment Recommendations - The company favors aluminum stocks as alternative investments for AI power supply, maintaining a "buy" outlook on gold, copper, lithium (including battery materials), and cobalt stocks [1] - The company holds a neutral view on coal and is bearish on solar energy and construction materials (such as steel) due to weak demand, short-term weak enforcement of anti-involution policies, and declining steel profit margins [1] Group 3: Preferred Stocks - Preferred stocks include China Aluminum, Zijin Mining, China Hongqiao, Shandong Gold, and Ganfeng Lithium [1]