Changjiang Securities·2025-10-20 01:02Investment Rating - The report maintains a "Positive" investment rating for the industry [8] Core Views - The report highlights that gold prices have reached historical highs due to multiple factors, including heightened risk aversion and expectations of interest rate cuts. Despite some weakness in equity performance, it suggests increasing allocation to gold stocks [4][2] - The report emphasizes the importance of focusing on the fundamentals of lithium as it approaches a bottom, indicating potential investment opportunities in the sector [6] Summary by Sections Precious Metals - Gold prices have recently reached historical highs driven by risk aversion and interest rate cut expectations. The report suggests that the current equity weakness is primarily due to fear of high prices, but this may be a temporary phenomenon [4] - The report recommends increasing allocation to gold stocks, noting that many companies are expected to show volume and price increases in Q3 [2][4] - Key companies to focus on include Zijin Mining, which has a current PE ratio of nearly 40 times, and other gold stocks with lower valuations [4] Industrial Metals - The report notes increased volatility in copper and aluminum prices due to rising risk events, with LME copper up 2.4% and aluminum up 1.8% [5] - Despite short-term pressures, the long-term outlook for copper and aluminum remains positive due to supply constraints and macroeconomic conditions [5] - Recommended stocks include Luoyang Molybdenum, Zijin Mining, and others in the copper sector, as well as high-dividend aluminum stocks [5][6] Energy and Minor Metals - The report discusses the long-term bullish outlook for cobalt prices, driven by supply constraints from the Democratic Republic of Congo and expected shortages in the global cobalt market [6] - It also highlights the potential for lithium prices to reach a bottom in 2026, suggesting that investors should consider the lithium sector for future opportunities [6] - Companies to watch include Ganfeng Lithium, Tianqi Lithium, and others involved in the lithium supply chain [6]