Shenwan Hongyuan Securities·2025-08-03 11:11Investment Rating - The report maintains a positive outlook on the metals and new materials industry, particularly emphasizing investment opportunities in precious metals [4]. Core Insights - The report highlights significant adjustments in U.S. employment data, suggesting a shift in focus towards precious metal investments due to increased economic uncertainty [4]. - It notes a decline in various metal prices, with precious metals experiencing a mixed performance, while industrial metals face downward pressure due to seasonal demand and tariff impacts [5][10]. - The report suggests that the central bank's continued gold purchases indicate a long-term bullish trend for gold prices, with specific companies recommended for investment [5][22]. Weekly Market Review - The Shanghai Composite Index fell by 0.94%, while the Shenzhen Component and CSI 300 Index dropped by 1.58% and 1.75%, respectively. The non-ferrous metals index underperformed, decreasing by 4.62% [6]. - Precious metals saw a 4.11% decline, with industrial metals like aluminum and copper also experiencing significant drops [10]. - Year-to-date performance shows precious metals up by 30.47%, indicating a strong recovery potential despite recent declines [10]. Price Changes and Company Valuations - The report details price changes for various metals, with copper, aluminum, and lead showing declines of 1.42%, 2.64%, and 2.11%, respectively, while gold prices increased by 2.32% [15]. - Key companies in the industry are evaluated, with specific price-to-earnings (PE) and price-to-book (PB) ratios provided for major players like Zijin Mining and Shandong Gold [19][20]. Precious Metals Analysis - The report indicates that the U.S. non-farm payrolls data has created a favorable environment for gold investments, with central bank purchases expected to support price increases [22]. - The gold ETF holdings have slightly decreased, but the overall sentiment remains positive due to ongoing purchases by the Chinese central bank [22]. Industrial Metals Overview - Copper supply is under pressure due to increased tariffs on imports, while demand remains stable with slight increases in production rates [33]. - Aluminum prices have decreased, but the report anticipates a long-term upward trend due to supply constraints and policy support [49]. Recommendations - The report recommends focusing on companies with strong fundamentals and growth potential in the metals sector, particularly those involved in gold mining and aluminum production [5][19].