Core Viewpoint - The short-term market fluctuations do not alter the long-term slow bull trend of the stock market, with dividend and technology assets expected to yield excess returns in the long run [1] Group 1: Market Trends - The allocation of residents' assets is gradually increasing in the equity market, which is expected to benefit dividend assets first [1] - Technology assets represent the trend of economic development and have strong long-term growth certainty [1] - The Shanghai Stock Exchange 180 Index follows a barbell strategy with 90% in dividend and 10% in technology, making it a good choice for equity market allocation [1] Group 2: Index Performance - As of October 29, 2025, the Shanghai Stock Exchange 180 Index (000010) rose by 0.31%, with notable increases in component stocks such as Industrial Fulian (601138) up 7.37% and Huaneng International (600011) up 6.86% [1] - The Shanghai Stock Exchange 180 ETF Index Fund (530280) is experiencing a tug-of-war in the market, with the latest quote at 1.24 yuan [1] - Over the week leading up to October 28, 2025, the Shanghai Stock Exchange 180 ETF Index Fund accumulated a rise of 1.97%, ranking 1/10 among comparable funds [1] Group 3: Top Holdings - As of September 30, 2025, the top ten weighted stocks in the Shanghai Stock Exchange 180 Index (000010) include Kweichow Moutai (600519), Zijin Mining (601899), and others, accounting for a total of 26.75% of the index [2]

Core Insights - The Guozheng Free Cash Flow Index decreased by 0.89% as of October 28, 2025, with mixed performance among constituent stocks [1] - The Free Cash Flow ETF (159201) experienced a decline of 0.76%, with a latest price of 1.17 yuan, but has seen a cumulative increase of 1.91% over the past week, ranking first among comparable funds [1] - The Free Cash Flow ETF reached a new high in size at 50.43 billion yuan and in shares at 4.316 billion, also ranking first among comparable funds [2] Fund Performance - The Free Cash Flow ETF has recorded continuous net inflows over the past 11 days, totaling 538 million yuan, with significant leverage fund activity [3] - The ETF's net value increased by 21.86% over the past six months, with a maximum monthly return of 7% and a longest consecutive monthly gain of 5 months [3] - The ETF's maximum drawdown in the past six months was 3.65%, the smallest among comparable funds, with a recovery time of 35 days, also the fastest in its category [3] Fee Structure and Tracking Accuracy - The management fee for the Free Cash Flow ETF is 0.15%, and the custody fee is 0.05%, both the lowest among comparable funds [4] - The tracking error over the past three months is 0.059%, indicating the highest tracking accuracy among comparable funds [4] Top Holdings - As of September 30, 2025, the top ten weighted stocks in the Guozheng Free Cash Flow Index accounted for 54.91% of the index, including China National Offshore Oil Corporation, SAIC Motor, Wuliangye, and Gree Electric Appliances [4]

Group 1: Macro Insights - The "14th Five-Year Plan" has established a clear direction for the "15th Five-Year Plan," emphasizing foundational consolidation and comprehensive efforts, with a focus on "common prosperity" and strengthening "internal circulation" [6] - The plan identifies four strategic emerging industries and six future industries, aiming to promote key core technology breakthroughs in six priority areas through extraordinary measures [6] Group 2: Fixed Income - Er Yong Bonds - Recent market conditions have led to a decline in risk appetite, benefiting Er Yong bonds with both interest rate and spread reductions [7] - The supply of Er Yong bonds remains weak, continuing the trend of asset scarcity, while the monthly turnover rate has remained stable [7] - The pricing model suggests that the yield of 5-year AAA-rated secondary capital bonds may decline to approximately 2.07% next year [7] Group 3: Banking Sector - Precious Metals - The banking sector is expected to see growth in precious metals business despite challenges from high volatility in the gold market [8] - As of September 2025, China's official gold reserves reached 74.06 million ounces, marking an increase for 11 consecutive months, with a global trend of central banks increasing gold reserves [8] - The introduction of pilot programs for insurance funds to invest in gold is creating new opportunities for banks to provide services and increase intermediary income [8] Group 4: Textile and Apparel - Baoxini - Baoxini's revenue is expected to stabilize, with a projected decline in net profit due to ongoing adjustments in its main brand [12] - The company is anticipated to achieve a net profit of 2.95 billion, 3.74 billion, and 4.49 billion yuan from 2025 to 2027, maintaining a "buy" rating [12] Group 5: Food and Beverage - Haitian Flavoring - Haitian Flavoring reported a revenue of 21.628 billion yuan for the first three quarters of 2025, reflecting a year-on-year increase of 6.02% [13] - The company is expected to benefit from its leadership position in the industry and aims for significant growth in overseas markets [13] Group 6: Computer Industry - Zhongke Chuangda - Zhongke Chuangda's revenue for Q3 2025 reached 1.848 billion yuan, a year-on-year increase of 42.87% [15] - The company is projected to achieve net profits of 606 million, 695 million, and 782 million yuan from 2025 to 2027, maintaining a "buy" rating [15] Group 7: Home Appliances - Hisense - Hisense's profitability has slightly declined, but the company remains optimistic about its long-term globalization strategy [16] - The projected net profits for 2025 to 2027 are 3.398 billion, 3.771 billion, and 4.154 billion yuan, with a "hold" rating [16] Group 8: Coal Industry - China Coal Energy - China Coal Energy reported a revenue of 110.584 billion yuan for the first three quarters of 2025, a year-on-year decrease of 21.24% [27] - The company is expected to achieve net profits of 16 billion, 17.1 billion, and 18.5 billion yuan from 2025 to 2027, maintaining a "buy" rating [27] Group 9: Automotive - Huguang - Huguang's revenue for the first three quarters of 2025 was 5.84 billion yuan, reflecting a year-on-year increase of 6% [34] - The company is expanding its customer base and enhancing its overseas market presence, which is expected to drive future growth [34]

Core Insights - The company reported a revenue of 176.5 billion yuan for the first three quarters of 2025, a year-on-year increase of 1.6%, with a net profit attributable to shareholders of 10.87 billion yuan, up 20.7% year-on-year [1] - In Q3 2025, the company achieved revenues of 60.1 billion yuan, a decrease of 5% year-on-year, while net profit for the quarter was 3.8 billion yuan, reflecting a significant year-on-year increase of 90% [1][2] - The rise in alumina and primary aluminum prices contributed to enhanced profitability, with Q3 average prices for electrolytic aluminum at 20,711 yuan/ton, up 6% year-on-year, and alumina prices at 3,165 yuan/ton, down 19% year-on-year [1][2] Revenue and Profit Analysis - For Q3 2025, the company produced 4.44 million tons of metallurgical-grade alumina, a 2% increase year-on-year, and 2.03 million tons of primary aluminum, also up 2% year-on-year [1] - The company’s profit per ton in the electrolytic aluminum sector was 4,125 yuan, a substantial increase of 128% year-on-year, while the alumina sector saw a profit of 292 yuan per ton, down 73% year-on-year [2] Operational Efficiency - The company has strengthened its supply chain management and established a dynamic cost control system to effectively respond to industry supply-demand adjustments and aluminum price fluctuations [2] - Resource security has improved, with mining and shipping volumes of overseas bauxite increasing by 27.9% and 55.3% year-on-year, respectively [2] - The company has implemented comprehensive reforms and digital transformation initiatives, resulting in significant improvements in management and labor efficiency [3] Strategic Developments - The company accelerated the upgrade of traditional industries, achieving key breakthroughs in major projects, including the full production of a 600 kA electrolytic aluminum project in Qinghai and the full capacity grid connection of a 1.2 million kW green electricity project in Baotou [3] - The company is recognized for its advancements in smart manufacturing, with facilities being selected for national excellence in smart factories and 5G factory listings [3] Investment Outlook - As a leading player in the global aluminum industry, the company’s integrated layout across the aluminum value chain highlights its strong resource and cost advantages [3] - Projections for net profit attributable to shareholders for 2025-2027 are 14.4 billion, 16.2 billion, and 18.4 billion yuan, with corresponding price-to-earnings ratios of 11.2, 10.0, and 8.8 times [3]

Core Insights - The Chinese mining industry is accelerating its transition from labor-intensive to technology-intensive operations, with significant advancements in smart mining technologies and applications [2][4]. Group 1: Smart Mining Technologies - The "Kun'an" AI model has achieved a 95% identification rate for foreign objects in transporting ore, enhancing safety and reducing labor intensity for maintenance workers [2]. - The first AI model in the non-ferrous metal industry has been launched, with 18 initial applications and ongoing expansion into various scenarios [2]. - Companies are increasingly investing in technology for green development, efficient pollution control, and resource recycling [2]. Group 2: Data Utilization and Digital Transformation - The establishment of a data company by China Gold Group aims to build foundational platforms for data centers, computing power, and algorithms, leveraging technologies like digital twins, AI, cloud computing, and blockchain [3]. - The integration of AI in mining is revitalizing historical geological data, aiding in the rapid identification of mining targets [4]. Group 3: Industry-Wide Impact - The intelligent transformation in mining is enhancing the overall smart level of the entire industry chain, with innovations in railway infrastructure construction improving efficiency and safety [4]. - The widespread application of technologies such as drones, AI, and big data analytics is expected to significantly improve the efficiency and safety of exploration and mining operations [4]. - The fusion of IoT and AI will facilitate real-time monitoring, precise decision-making, and remote control of mines, accelerating the construction of smart mines and supporting sustainable development in the Chinese mining sector [4]. Group 4: Collaborative Innovation - The Deputy Minister of Natural Resources has called for global collaboration to build an innovative ecosystem that provides new momentum for mining development, promoting the synergy between mining operations and ecological protection [5].

Investment Rating - The report maintains a neutral investment rating for the non-ferrous metals industry, indicating that the industry index is expected to perform in line with the benchmark index [7]. Core Insights - The non-ferrous metals industry index decreased by 1.97% over the past two weeks, underperforming the CSI 300 index and ranking 23rd among 31 first-level industries [2][13]. - Precious metals experienced a significant decline, with gold prices dropping by 3.30% and silver by 4.38% in the last week [3][22]. - The report highlights the importance of geopolitical factors and domestic demand recovery in shaping future investment opportunities in the sector [5]. Summary by Sections Market Review - The non-ferrous metals industry index fell by 1.97% from October 13 to October 24, 2025, with all sub-sectors showing declines, particularly precious metals which dropped by 7.89% [2][13]. Precious Metals - As of October 24, COMEX gold closed at $4,126.90 per ounce, down 3.30% over the past week, while year-to-date it has increased by 54.50%. COMEX silver closed at $48.41 per ounce, down 4.38% over the past week, with a year-to-date increase of 61.42% [3][22]. Industrial Metals - LME copper settled at $10,807.00 per ton, up 0.67% over the past two weeks, with a year-to-date increase of 24.43%. Domestic copper prices averaged 87,040 RMB per ton, up 0.85% over the same period [30][31]. Minor Metals - Black tungsten concentrate (≥65%) was priced at 279,000 RMB per ton, up 3.72% over the past two weeks, while LME tin was priced at $35,650 per ton, up 0.85% [38][39]. Rare Earths - The China Rare Earth Price Index was reported at 197.72, down 8.22% over the past two weeks, but up 20.72% year-to-date. Light rare earths like praseodymium-neodymium oxide saw a price drop of 10.22% [51][52]. Energy Metals - As of October 24, the average price of electrolytic cobalt was 407,500 RMB per ton, up 16.60% over the past two weeks, and the average price of cobalt sulfate (≥20.5%) was 89,850 RMB per ton, up 18.22% [57][58].

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company achieved record operating profit in the first three quarters of 2025, with revenue of 176.5 billion yuan, up 1.6% year-on-year, and a net profit attributable to shareholders of 10.87 billion yuan, up 20.7% year-on-year [1]. - The increase in alumina and primary aluminum prices in Q3 2025 contributed to enhanced profitability, with the average price of electrolytic aluminum at 20,711 yuan/ton, up 6% year-on-year, and the industry profit for electrolytic aluminum at 4,125 yuan/ton, up 128% year-on-year [2]. - The company has strengthened its supply chain management and dynamic cost control system, leading to a decrease in production costs for core products [3]. Summary by Sections Financial Performance - In Q3 2025, the company reported revenues of 601 billion yuan, a decrease of 5% year-on-year, while net profit for the quarter was 3.8 billion yuan, an increase of 90% year-on-year [1]. - For the first three quarters of 2025, the company produced 444 million tons of metallurgical-grade alumina, a 2% increase year-on-year, and 203 million tons of primary aluminum, also up 2% year-on-year [2]. Production and Cost Management - The company has seen a significant increase in the mining and shipping of overseas bauxite, with mining volume and shipping volume up 27.9% and 55.3% year-on-year, respectively [3]. - The company has implemented a comprehensive cost control strategy, resulting in a downward trend in production costs for core products [3]. Future Outlook - The report projects net profits for 2025-2027 to be 14.4 billion, 16.2 billion, and 18.4 billion yuan, respectively, with corresponding P/E ratios of 11.2, 10.0, and 8.8 [4]. - The company is positioned as a leader in the global aluminum industry, benefiting from its integrated layout across the entire aluminum supply chain [4].

Core Insights - The Guozheng Free Cash Flow Index has decreased by 0.84% as of October 28, 2025, with mixed performance among constituent stocks [1] - The Free Cash Flow ETF (159201) has seen a recent decline of 0.85%, currently priced at 1.17 yuan, but has increased by 3.69% over the past week, ranking first among comparable funds [1] - The Free Cash Flow ETF has achieved record highs in both share count (42.22 billion shares) and total assets (4.975 billion yuan) [1] Performance Metrics - The Free Cash Flow ETF has experienced a net inflow of 428 million yuan over the past 10 days, indicating strong investor interest [1] - Over the last six months, the net asset value of the Free Cash Flow ETF has risen by 22.50%, with a maximum monthly return of 7% and a historical six-month holding profitability rate of 100% [2] - The ETF's maximum drawdown in the last six months was 3.65%, the smallest among comparable funds, with a recovery time of 35 days [2] Fund Characteristics - The management fee for the Free Cash Flow ETF is 0.15%, and the custody fee is 0.05%, both of which are the lowest among comparable funds [2] - The tracking error for the ETF over the past three months is 0.061%, indicating the highest tracking precision among similar funds [2] Top Holdings - As of September 30, 2025, the top ten weighted stocks in the Guozheng Free Cash Flow Index account for 54.91% of the index, including China National Offshore Oil Corporation, SAIC Motor, and Wuliangye [3]

Core Insights - The China Central Enterprise Innovation Driven Index decreased by 0.17% as of October 28, 2025, with mixed performance among constituent stocks [3] - Notable gainers included Zhongtung High-tech, which rose by 10.02%, and China Materials Technology, which increased by 6.50% [3] - The Central Enterprise Innovation Driven ETF (515900) fell by 0.37%, with a latest price of 1.62 yuan [3] - Over the past week, the ETF has accumulated a rise of 3.90%, ranking in the top quarter among comparable funds [3] - The ETF's trading volume was 902.88 million yuan, with a turnover rate of 0.25% [3] - The ETF's average daily trading volume over the past year was 1989.74 million yuan, the highest among comparable funds [3] Company Developments - Zhongtung High-tech announced a cash acquisition of a 99.9733% stake in Hengyang Yuanjing Tungsten Industry from Minmetals Tungsten for 821 million yuan, constituting a related party transaction [3] - The successful development of second-generation high-temperature superconducting tape core material by the Institute of Metal Research, Chinese Academy of Sciences, marks a significant step in the clean energy materials sector [3] Industry Trends - The controllable nuclear fusion industry is entering a capital expenditure expansion phase, with significant investments exceeding 150 billion yuan in domestic fusion projects as of September 2025 [4] - The Central Enterprise Innovation Driven ETF reached a new high of 3.633 billion yuan in scale, ranking in the top quarter among comparable funds [4] - The ETF has seen a notable increase of 3 million shares over the past two weeks, also placing it in the top quarter among comparable funds [4] - The index tracks 100 representative listed companies from state-owned enterprises, assessing their innovation and profitability quality [4][5] Market Composition - As of September 30, 2025, the top ten weighted stocks in the index accounted for 36.04% of the total, including companies like China Shipbuilding and Hikvision [5]

Core Viewpoint - China Aluminum Corporation reported strong financial performance for the first three quarters of 2025, driven by effective supply chain management and cost control measures [1][2] Financial Performance - Total profit reached 20.775 billion yuan, an increase of 18.47% year-on-year [1] - Net profit amounted to 17.296 billion yuan, up 15.15% year-on-year [1] - Net profit attributable to shareholders was 10.872 billion yuan, reflecting a growth of 20.65% year-on-year [1] - The asset-liability ratio stood at 46.38%, a decrease of 1.73 percentage points from the beginning of the year [1] Operational Efficiency - The company enhanced supply chain management and established a dynamic cost control system to address industry supply-demand adjustments and aluminum price fluctuations [1] - Mining and shipping volumes of overseas bauxite increased by 27.9% and 55.3% respectively [1] - Core products such as bauxite and electrolytic aluminum maintained stable and high production levels, with continuous optimization of economic and technical indicators [1] Strategic Developments - The company accelerated the upgrade of traditional industries and achieved key breakthroughs in major projects, including the full production of the 600kA electrolytic aluminum project in Qinghai [2] - The integration of wind and solar energy with electrolytic aluminum production was highlighted as a new path for green development [2] - Digital transformation efforts led to recognition, with Guangxi Huasheng being selected as a "Top-Level" smart factory [2] Market Recognition - The company received widespread market and investor recognition, with institutions issuing "buy" and "recommend" ratings [2] - MSCI upgraded its ESG rating from B to BB, achieving an A grade in ESG ratings [2] - The company won six awards at the "6th Panoramic Investor Relations Gold Award," showcasing excellence in investor relations and corporate governance [2] Future Outlook - The company aims to achieve its annual targets through precise cost control and continuous efficiency improvements [2] - There is a focus on transforming the advantages of integrated supply chain development into sustainable value creation capabilities [2]