Minsheng Securities·2025-05-07 06:41Investment Rating - The report maintains a "Buy" rating for the non-ferrous metals sector, particularly favoring copper, aluminum, and precious metals opportunities [2][3]. Core Insights - The non-ferrous metals sector has shown significant price performance, with a year-to-date increase of 11.33% in 2025, ranking 4th among sectors [1][9]. - The sector's revenue and profit margins have improved, with a notable 68.55% year-on-year increase in net profit for Q1 2025 [1][27]. - Precious metals, particularly gold and silver, have seen substantial price increases, contributing to strong performance in the precious metals segment [1][42]. Summary by Sections 1. Non-Ferrous Metals Performance - The non-ferrous metals sector's overall price increase from 2024 to 2025 is 26.36%, outperforming major indices [12][15]. - The sector's performance in 2024 was +14.86%, while in 2025, it has risen by 11.33% [1][14]. 2. Sub-Sector Analysis 2.1 Base Metals - Base metal prices, excluding nickel, have increased year-on-year in Q1 2025, with copper, aluminum, and zinc showing significant gains [42][43]. - The average prices for copper, aluminum, and zinc in Q1 2025 increased by 11.41%, 7.40%, and 14.34% respectively [42][43]. 2.2 Precious Metals - Precious metals have experienced a price surge, with gold and silver prices increasing by 38.3% and 39.1% year-on-year respectively [1][42]. - The precious metals segment's net profit for Q1 2025 increased by 44.88% year-on-year [1][40]. 2.3 Energy Metals - The energy metals segment faced challenges, with lithium prices declining significantly, while cobalt showed a year-on-year profit increase of 73.4% [1][2]. 3. Institutional Holdings - Institutional holdings in the non-ferrous metals sector have rebounded significantly in Q1 2025, indicating renewed investor interest [8]. 4. Outlook for H2 2025 - The report anticipates continued upward pressure on metal prices due to supply constraints and ongoing demand from restructuring supply chains [2][4]. - Precious metals are expected to maintain a bullish trend, supported by central bank gold purchases and persistent risk aversion in the market [2][4]. 5. Investment Recommendations - The report recommends focusing on companies such as Luoyang Molybdenum, Zijin Mining, and China Aluminum for industrial metals, and on companies like WanGuo Gold Group and Chifeng Jilong Gold Mining for precious metals [2][3].