Shenwan Hongyuan Securities·2025-07-27 13:14Investment Rating - The report maintains a positive outlook on the metals and new materials industry, indicating a favorable investment environment [4][5]. Core Views - The report highlights a significant increase in the performance of the metals sector, with the non-ferrous metals index rising by 6.70% week-on-week, outperforming the CSI 300 index by 5.01 percentage points [4][5]. - The report emphasizes the upward trend in metal prices, particularly in energy metals and small metals, with notable increases of 12.40% and 14.30% respectively [4][11]. - The report suggests that the long-term trend for gold prices is upward due to central bank purchases and a shift in monetary credit patterns, recommending specific stocks in the gold sector [4][23]. Weekly Market Review - The Shanghai Composite Index rose by 1.67%, while the Shenzhen Component Index increased by 2.33% [5]. - The non-ferrous metals index has shown a year-to-date increase of 30.82%, outperforming the CSI 300 index by 25.94 percentage points [9]. Price Changes - Industrial metals and precious metals have shown varied price changes, with copper prices decreasing by 0.09% and aluminum prices increasing by 0.23% [4][17]. - Energy materials such as lithium and cobalt have seen significant price increases, with battery-grade lithium carbonate rising by 15.15% [4][18]. Key Company Valuations - The report provides valuations for key companies in the metals sector, indicating potential investment opportunities based on their earnings per share (EPS) and price-to-earnings (PE) ratios [20][21]. - For example, Zijin Mining is valued at a PE of 25 for 2023, while Shandong Gold has a PE of 59 [20]. Supply and Demand Analysis - The report notes a decrease in copper social inventory by 2.91 million tons, indicating a tightening supply situation [35]. - The aluminum sector is experiencing a decline in downstream processing enterprise operating rates, which may impact future supply dynamics [52][54]. Growth Cycle Investment Analysis - The report recommends focusing on stable supply-demand dynamics in the new energy manufacturing sector, highlighting specific companies for potential investment [4].