Core Conclusions - The overall valuation of A-shares has expanded this week, with the non-ferrous metals industry continuing to lead the market [1] - During the National Day holiday, favorable factors for the non-ferrous industry have emerged, contributing to its ongoing leadership [1] - The current overall PB (LF) of the non-ferrous metals industry is at the historical 87.8 percentile, with specific sectors like copper, aluminum, lithium, and gold at 92.1%, 96.3%, 40.7%, and 83.6% percentiles respectively, indicating greater valuation upside potential for lithium [1] A-share Valuation Overview - The overall PE (TTM) of A-shares increased from 22.36 times last week to 22.78 times this week, while PB (LF) rose from 2.17 times to 2.21 times [10] - The PE (TTM) of the ChiNext board increased from 81.61 times to 82.22 times, while its PB (LF) remained stable at 4.88 times [19] - The PE (TTM) of the Sci-Tech Innovation Board rose from 272.77 times to 276.66 times, with PB (LF) increasing from 6.72 times to 6.81 times [21] Industry Valuation Levels - From a static PE (TTM) perspective, major industries such as consumer discretionary, midstream manufacturing, and cyclical sectors have absolute and relative valuations above historical medians, with consumer discretionary and midstream manufacturing exceeding the 90th percentile [27] - In terms of PB (LF), TMT, midstream manufacturing, and consumer discretionary also show absolute and relative valuations above historical medians, while financial services and consumer staples are below historical medians [29] - The overall valuation of key companies in A-shares based on dynamic PE increased from 15.17 times to 15.19 times this week [14] Relative Valuation Expansion - The relative PE (TTM) for computing infrastructure, excluding operators and resource categories, decreased from 5.80 times to 5.66 times, while relative PB (LF) fell from 5.69 times to 5.54 times [23] - The current comparison of odds (PB historical percentiles) and win rates (ROE historical percentiles) indicates that industries like oil and petrochemicals, as well as agriculture, forestry, animal husbandry, and fishery, exhibit characteristics of low valuation and high profitability [2] ERP and Equity-Debt Yield Spread - The non-financial ERP of A-shares decreased from 0.80% to 0.76%, while the equity-debt yield spread fell from -0.19% to -0.24% [60] - The dynamic ERP of key non-financial companies in A-shares increased from 2.76% to 2.77% this week [64]