Huachuang Securities·2025-08-17 12:13Investment Rating - The report maintains a "Buy" recommendation for the non-ferrous metals sector, indicating a strong outlook supported by macroeconomic factors that bolster metal prices [2]. Core Insights - The report highlights a robust performance in the copper and aluminum sectors, with specific companies recommended for investment, including Zijin Mining, Jincheng Mining, Western Mining, and Minmetals Resources for copper, and China Hongqiao, Hongchuang Holdings, Tianshan Aluminum, and others for aluminum [3][4]. - The macroeconomic environment is favorable, with recent developments such as the suspension of tariffs between China and the U.S. and the implementation of consumer loan interest subsidies contributing to a bullish outlook for aluminum prices, which have recently surged above 20,800 CNY/ton [7][8]. Industry Overview Non-Ferrous Metals - The report notes that the total market capitalization of the non-ferrous metals sector is approximately 360.65 billion CNY, with 125 listed companies [4]. - The sector has shown strong performance over various time frames, with absolute returns of 14.3% over one month, 28.2% over six months, and 52.1% over twelve months [5]. Aluminum Sector - The report indicates that aluminum inventories are increasing, with a notable rise in domestic electrolytic aluminum ingot inventory to 588,000 tons, reflecting a short-term oversupply situation [7]. - Despite the current inventory build-up, the report anticipates that the upcoming peak consumption season ("Golden September and Silver October") and potential supply risks may support aluminum prices [7]. Copper Sector - The report provides insights into copper inventories, with the Shanghai Futures Exchange (SHFE) reporting a total of 86,400 tons, an increase of 4,428 tons week-on-week [3]. - The global visible copper inventory stands at 555,000 tons, with a slight increase of 2,458 tons compared to the previous week [3]. Rare Metals - The report emphasizes the rising prices of praseodymium and neodymium oxide, which have increased by 7.01% week-on-week, driven by strong demand from major magnet manufacturers [9]. - Companies in the rare metals sector, such as China Rare Earth and Guangxi Rare Metals, are highlighted as potential investment opportunities due to their strategic positioning in the market [9]. Company Performance - China Hongqiao reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 81.04 billion CNY, a year-on-year increase of 10.1%, and net profit of 12.36 billion CNY, up 35% [7]. - Zhongfu Industrial completed its employee stock ownership plan, indicating strong confidence in future growth, with a total of 329 million shares purchased at an average price of 3.21 CNY per share [7].