Minsheng Securities·2025-05-07 07:45Investment Rating - The report maintains a "Buy" rating for the non-ferrous metals sector, particularly favoring copper, aluminum, and precious metals opportunities [2][3][6]. 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, with gold prices rising by 38.3% year-on-year in Q1 2025 [1][2]. Summary by Sections 1. Non-Ferrous Metals Performance - The non-ferrous metals sector has experienced a total increase of 26.36% since 2024, outperforming major indices like the Shanghai Composite and CSI 300 [9][15]. - In 2024, the sector's performance was +14.86%, while in 2025, it has already reached +11.33% [1][14]. 2. Sub-Sector Performance 2.1 Base Metals - Base metal prices, excluding nickel, have generally increased year-on-year, with copper, aluminum, and zinc prices rising by 11.4%, 7.4%, and 14.3% respectively in Q1 2025 [42][43]. - The industrial metals sector's revenue increased by 5.86% year-on-year in 2024, with a further increase in Q1 2025 [44][47]. 2.2 Precious Metals - Precious metals have shown remarkable performance, with gold and silver prices increasing significantly, leading to a 44.88% year-on-year increase in net profit for the precious metals sector in Q1 2025 [1][2]. - The report highlights a sustained bullish trend for gold prices due to ongoing central bank purchases and heightened risk aversion [2][42]. 2.3 Energy Metals - The energy metals sector has faced challenges, particularly in lithium, which saw a year-on-year decline of 55.34% in revenue [39][40]. - However, cobalt and nickel have shown improvements, with cobalt's net profit increasing by 73.45% in Q1 2025 [40][41]. 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 various sectors [2][4]. - Precious metals are expected to maintain their upward trajectory, supported by economic uncertainties and central bank policies [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].