Fixed Income - The new policy for "Science and Technology Innovation Bonds" (科创债) has led to banks, particularly state-owned banks, being the primary issuers, with a total issuance of 115 billion yuan from May 6 to May 16, 2025 [7][8] - The issuers of these bonds are predominantly high-rated central and state-owned enterprises, with AAA-rated bonds accounting for 83.39% of the total issuance [8] - The new policy has relaxed restrictions on the use of funds raised through these bonds, allowing for a broader range of applications, including loans for technology innovation [9] New Consumption - In April 2025, the total retail sales of consumer goods reached 37,174 billion yuan, reflecting a year-on-year growth of 5.1% [11] - The growth in retail sales was driven by essential consumption, with food and daily necessities showing robust growth, while discretionary spending on jewelry and communication devices also increased significantly [12] - Furniture and home appliances saw particularly strong growth, with retail sales increasing by 26.9% and 38.8% respectively [12] Metals and New Materials - The profitability of the gold and copper-aluminum sectors has significantly increased due to rising metal prices, while the energy metals sector has seen a substantial decline in profitability [14] - In 2024, the non-ferrous metals sector achieved a revenue of 3.64 trillion yuan, with a net profit of 147.1 billion yuan, reflecting a year-on-year growth of 5.73% and 2.61% respectively [14] - Gold prices have shown a notable increase, with an average price of 560.8 yuan/gram in 2024, up 24.4% year-on-year, and 673.5 yuan/gram in Q1 2025, up 37.2% year-on-year [15][19] Pharmaceuticals - Sanofi's licensing agreement for PD-1/VEGF dual antibody rights outside of China with Pfizer is valued at 1.25 billion USD upfront, with potential milestone payments of up to 4.8 billion USD [26][27] - The agreement is expected to enhance the company's valuation significantly, with a target market value of 59.5 billion yuan (approximately 64.5 billion HKD) [4][29] - Warner Pharmaceuticals is focusing on innovative antidepressants and the replacement of endangered medicinal materials, with a new antidepressant ZG001 showing promise as a fast-acting, non-addictive option [31][34]

Investment Rating - The report maintains a positive outlook on the metals and new materials industry, indicating a "Buy" recommendation for key sectors such as gold and copper [3][4]. Core Insights - The report highlights that the recent pullback in gold prices does not alter the long-term upward trend, supported by ongoing demand and supply dynamics in the copper and aluminum markets [3][4]. - The report emphasizes the importance of monitoring macroeconomic indicators, such as U.S. employment data and central bank policies, which influence commodity prices [4][21]. Weekly Market Review - The Shanghai Composite Index fell by 0.49%, while the Shenzhen Component decreased by 0.17%. The non-ferrous metals index underperformed, dropping 0.81% [5][4]. - Precious metals saw a decline, with gold prices down 2.49% and silver down 2.54% week-on-week [4][14]. - Year-to-date performance shows precious metals up 31.29%, while aluminum and energy metals have seen slight declines [9][4]. Price Changes - Industrial metals experienced varied price changes, with copper down 0.09%, aluminum up 0.14%, and zinc down 1.47% [14][4]. - Lithium prices have decreased, with battery-grade lithium carbonate down 2.19% [17][4]. Key Company Valuations - Notable companies in the sector include Zijin Mining, with a projected PE ratio of 22 for 2023, and China Aluminum, with a PE ratio of 15 [18][19]. - The report suggests focusing on companies with stable earnings and dividend attributes, such as Baosteel and Shandong Steel [4][19]. Supply and Demand Analysis - Copper demand remains stable, with operating rates for copper rods at 79.9%. However, the supply side shows a decrease in social inventory by 5.2% [29][4]. - Aluminum production is constrained by lower operating rates in downstream processing, with a current operating rate of 61.65% [45][4]. Growth Cycle Investment Recommendations - The report recommends investing in sectors with stable supply-demand dynamics, particularly in new energy manufacturing [4][4].

Core Insights - The company reported a revenue of 65.56 billion yuan for 2024, a year-on-year increase of 7.01%, and a net profit attributable to shareholders of 3.386 billion yuan, up 13.71% year-on-year [1] - In Q1 2025, the company achieved a revenue of 14.859 billion yuan, a year-on-year increase of 12.88%, but a quarter-on-quarter decrease of 23.84% [1] - The net profit attributable to shareholders for Q1 2025 was 1.038 billion yuan, reflecting a year-on-year increase of 32.65% and a quarter-on-quarter increase of 39.79% [1] Financial Performance - The average prices of gold and copper in the domestic market increased by 23.8% and 10% respectively in 2024, contributing to the company's performance [2] - The company’s total operating expenses for 2024 were 3.17 billion yuan, a year-on-year increase of 10.4%, with a slight increase in the expense ratio [3] - The company experienced a decrease in gold production by 0.54 tons to 18.35 tons in 2024, while copper production increased by 2,077.28 tons to 82,000 tons [4] Resource Management and Projects - The company enhanced resource security, increasing gold reserves by 30.3 tons and copper reserves by 114,800 tons in 2024 [5] - Key projects are progressing well, with total investment in ongoing projects reaching 1.024 billion yuan [5] - In Q1 2025, the company produced 4.5 tons of gold, a year-on-year increase of 1.09%, benefiting from rising gold and copper prices [6] Future Outlook - The company expects net profits of 4.83 billion yuan, 5.39 billion yuan, and 5.65 billion yuan for 2025-2027, representing year-on-year growth rates of 42.7%, 11.6%, and 4.8% respectively [6] - A target price of 17.9 yuan is set based on an 18x PE ratio for 2025, maintaining a strong buy rating [6]