


Investment Rating - The report provides a positive outlook for the metals and new materials industry, suggesting a stable supply-demand balance and potential for price increases in the long term [4][5]. Core Views - The report highlights that the recent interest rate cuts by the Federal Reserve are expected to boost investment inflows into the metals sector, particularly in precious metals like gold and silver, which are anticipated to see price increases [4][5]. - The report emphasizes the importance of monitoring supply chain disruptions and geopolitical factors that could impact metal prices, particularly copper and aluminum [5][10]. Weekly Market Review - The Shanghai Composite Index decreased by 1.30%, while the Shenzhen Component increased by 1.14%. The non-ferrous metals index fell by 4.02%, underperforming the CSI 300 by 3.57 percentage points [6][8]. - Year-to-date, the non-ferrous metals index has risen by 51.05%, outperforming the CSI 300 by 36.64 percentage points [6][9]. Price Changes - Industrial metals and precious metals saw varied price movements, with copper, aluminum, and zinc prices decreasing by 0.78%, 0.67%, and 1.04% respectively, while gold and silver prices increased by 1.05% and 1.60% [10][15]. - Lithium prices showed an upward trend, with battery-grade lithium carbonate increasing by 2.82% [10][15]. Key Company Valuations - The report lists key companies in the industry, such as Zijin Mining, China Aluminum, and Shandong Gold, with their respective price-to-earnings (PE) ratios and earnings per share (EPS) forecasts for 2025 [18][19]. - For example, Zijin Mining is projected to have a PE ratio of 15 and an EPS of 1.65 in 2025, indicating strong growth potential [18]. Supply and Demand Analysis - The report notes that copper supply remains tight due to production disruptions, with domestic social inventory increasing to 149,000 tons [32]. - The demand for copper is expected to rise, driven by increased activity in the electrical and construction sectors, with operating rates for copper products showing slight improvements [32]. Precious Metals Insights - The report indicates that gold ETF holdings have increased by 2.2%, reflecting growing investor confidence in gold as a safe-haven asset [20]. - The gold-silver ratio is currently at 86.7, suggesting potential for silver price recovery as demand improves [21].