Investment Rating - The report maintains a "Buy" recommendation for several companies in the non-ferrous metals sector, including Zijin Mining, Luoyang Molybdenum, and Huayou Cobalt [4][5]. Core Views - The non-ferrous metals market is experiencing short-term fluctuations due to factors such as the U.S. government shutdown and cooling interest rate expectations. However, the long-term price trend remains upward, supported by domestic demand improvements from the "14th Five-Year Plan" [2][3]. - In the industrial metals segment, copper prices are under pressure due to a rebound in the U.S. dollar and reduced import costs, while aluminum production is stable despite environmental restrictions [2][3]. - Energy metals, particularly lithium and cobalt, are expected to perform well due to strong demand from the electric vehicle and energy storage sectors, despite regulatory delays in cobalt exports from the Democratic Republic of Congo [3][4]. - Precious metals are forecasted to rise in value, driven by central bank gold purchases and weakening U.S. dollar credit, despite short-term pressures from hawkish Federal Reserve signals [4][5]. Summary by Sections Industrial Metals - Copper prices have decreased by 1.80% to $10,695 per ton, with a stable demand outlook for Q4 [9][35]. - Aluminum production capacity remains steady, with a slight increase in inventory by 0.3 thousand tons, indicating a stable demand environment [2][18]. - Key companies recommended include Zijin Mining, Luoyang Molybdenum, and China Nonferrous Mining [2][4]. Energy Metals - Lithium prices are expected to remain strong due to high demand from the battery sector, while cobalt supply is constrained by regulatory delays [3][4]. - Recommended companies in this sector include Huayou Cobalt and Tianqi Lithium [3]. Precious Metals - Gold prices are projected to rise, with current prices at $4,007.80 per ounce, despite recent fluctuations due to U.S. economic data and Federal Reserve policy [4][62]. - Key companies recommended include Western Gold, Shandong Gold, and Zijin Gold International [4][5].

Core Viewpoint - The report from Industrial Securities highlights significant volatility in global risk assets due to concerns over tightening overseas liquidity and discussions surrounding an "AI bubble" [1] Group 1: Market Conditions - Global risk assets have experienced substantial fluctuations this week, influenced by a lack of economic data, frequent hawkish statements from the Federal Reserve, and rising liquidity pressures in the money market due to government shutdown and fiscal constraints [1] - The strong dollar has suppressed global stock markets and commodity prices, with technology-heavy indices like Nikkei 225, Korean stock index, and Nasdaq leading the decline [1] Group 2: Future Outlook - The probability of overseas liquidity tightening evolving into systemic risk is low, as solutions from the Federal Reserve and bipartisan negotiations to reopen the government are progressing, which may gradually alleviate external disturbances on risk appetite [2] - If the U.S. government shutdown ends as expected in mid-November and more economic data is released, market expectations for Federal Reserve rate cuts will be recalibrated, potentially creating a window for global recovery [3] Group 3: AI Industry Analysis - The current discussions around the "AI bubble" have caused some disturbances in the domestic AI industry chain, but Industrial Securities believes that AI's empowerment of traditional industries is still in its early stages, making it incomparable to the internet bubble of 1999-2000 [4] - The development logic of the AI industry is clear, with major global tech companies continuously defining their AI strategies, and the fundamentals of leading companies in the U.S. stock market remain strong due to ongoing R&D investments and capital expenditures [4] Group 4: Investment Strategies - The "14th Five-Year Plan" emphasizes AI as a key driver for national competition and technological innovation, indicating that the AI industry chain will be a focus area with favorable prospects next year [5] - The year-end market is seen as an important window for positioning in sectors expected to perform well in the coming year, with a focus on cyclical sectors such as steel, chemicals, construction materials, and new consumption [6][7] - High-growth sectors expected to see net profit growth of over 30% next year include AI hardware, new energy, and military industries, while sectors with expected growth of 10%-30% include pharmaceuticals and AI downstream applications [7][8]

Core Viewpoint - The article emphasizes the importance of identifying leading stocks within strong sectors before they gain momentum, utilizing indicators like RSR and RS Line to predict sector movements [1][5][6]. Group 1: Sector Analysis - The article discusses the significance of sector rotation and highlights the need to focus on leading stocks that often outperform the sector before it officially turns bullish [1][2]. - It mentions the current strong sectors, specifically power technology, with leading stocks such as 阳光电源 (Sungrow Power Supply), 宁王 (Ning Wang), and 思源电气 (Siyuan Electric) showing early signs of strength [2]. - The article suggests that using a structured industry classification system can simplify the analysis process, reducing confusion caused by numerous concept stocks [5]. Group 2: Indicator Utilization - The RSR (Relative Strength Ratio) and SSV (Strength Score Value) indicators are highlighted as essential tools for identifying strong sectors and stocks, with a focus on those with RSR values above 85 [6]. - The article advises against short-term trading strategies that lack a coherent logic, advocating for a longer-term perspective when using RSR for trend observation [6][7]. - It emphasizes that understanding industry trends and individual stock logic is crucial for successful investment, rather than merely chasing short-term market movements [8].

Group 1 - The article emphasizes a list of investment opportunities focusing on medium to long-term safety margins, categorized by "earnings certainty + reasonable valuation" [1] Group 2 - Priority One (Strong earnings delivery, no valuation pressure): - Phosphate and battery materials leaders: Chengxing Co. and Fengyuan Co., driven by product price increases and stable downstream battery demand, with third-quarter earnings support and mid-industry valuation, presenting buying opportunities on pullbacks [3] - Organic silicon leader: Hesheng Silicon Industry, benefiting from improved industry supply-demand dynamics, product price recovery, and strong bargaining power, offering high cost-performance for medium to long-term investment [3] - Photovoltaic equipment leader: Hongyuan Green Energy, with continuous growth in photovoltaic installations, capacity release, and lower valuation compared to peers, ensuring earnings certainty [3] Group 3 - Priority Two (Policy/recovery catalysts, valuation recovery potential): - Energy metals leader: Tianqi Lithium, with lithium prices rebounding from lows and global energy transition needs, currently at historical low valuations, suitable for gradual bottom-building [3] - Port and shipping leader: Shanghai Port Group, benefiting from global economic recovery expectations, steady cargo volume increase, and high dividend yield, combining defensive and offensive attributes [3] - Hainan Free Trade Zone leader: Hainan Mining, with ongoing benefits from free trade port policies, alignment with local industrial planning, and reasonable valuation, supported by clear long-term catalysts [3]

Investment Rating - The industry is rated as "stronger than the market," indicating an expected increase of over 10% in the industry index relative to the CSI 300 index over the next six months [17]. Core Viewpoints - The A-share market experienced slight fluctuations with notable performance in the battery, photovoltaic equipment, energy metals, and chemical products sectors, while sectors like automotive parts, software development, semiconductors, and internet services lagged [2][3]. - The average price-to-earnings ratios for the Shanghai Composite Index and the ChiNext Index are 16.41 times and 50.16 times, respectively, which are above the median levels of the past three years, suggesting a favorable environment for medium to long-term investments [3][16]. - The market is currently at a critical transition point, with expectations of a sideways trading pattern in November, as it prepares for potential index-level movements towards the end of the year [3][16]. - A rebalancing trend is anticipated in the market styles, with a focus on the rotation between growth and value styles, as well as large-cap and small-cap stocks [3][16]. - Short-term investment opportunities are recommended in the battery, photovoltaic equipment, energy metals, and chemical products sectors [3][16]. Summary by Sections A-share Market Overview - On November 7, the A-share market faced resistance after an initial rise, with the Shanghai Composite Index encountering resistance around 4012 points, ultimately closing at 3997.56 points, down 0.25% [7][8]. - The total trading volume for the day was 20,205 billion, which is above the median of the past three years [3][16]. Future Market Outlook and Investment Recommendations - The market is expected to maintain a steady upward trend in the short term, with close attention needed on policy, funding, and external market changes [3][16]. - A balanced investment strategy is advised, seeking equilibrium between technology growth and dividend value, while considering both offensive and defensive positions [3][16].

Core Insights - The energy metals sector experienced a significant increase of 2.61% on November 7, with Shengxin Lithium Energy leading the gains [1] - The Shanghai Composite Index closed at 3997.56, down 0.25%, while the Shenzhen Component Index closed at 13404.06, down 0.36% [1] Stock Performance - Shengxin Lithium Energy (002240) closed at 27.30, up 9.99% with a trading volume of 1.1057 million shares and a transaction value of 2.926 billion [1] - Yongshan Lithium (6633399) rose by 8.00% to close at 11.48, with a trading volume of 568,300 shares [1] - Other notable performers include: - Yongxing Materials (002756) up 7.28% to 50.85 [1] - Rongjie Co., Ltd. (002192) up 3.94% to 48.26 [1] - Tianqi Lithium (002466) up 3.36% to 56.99 [1] Capital Flow - The energy metals sector saw a net inflow of 1.209 billion in main funds, while retail funds experienced a net outflow of 0.957 billion [2] - The main funds' net inflow for Tianqi Lithium was 389 million, accounting for 6.74% of its total [3] - Huayou Cobalt (603799) had a main fund net inflow of 346 million, representing 5.24% [3] Individual Stock Fund Flows - Shengxin Lithium Energy had a main fund net inflow of 192 million, with retail funds showing a net outflow of 1.60 billion [3] - Yongxing Materials recorded a main fund net inflow of 218 million, while retail funds had a net outflow of 1.86 billion [3] - Rongjie Co., Ltd. saw a main fund net inflow of 106 million, with retail funds experiencing a net outflow of 1.10 billion [3]

Market Overview - The A-share market experienced fluctuations with all three major indices closing lower. The Shanghai Composite Index closed at 3997.56 points, down 0.25%, with a trading volume of 875.49 billion yuan. The Shenzhen Component Index closed at 13404.06 points, down 0.36%, with a trading volume of 1123.57 billion yuan. The ChiNext Index closed at 3208.21 points, down 0.51%, with a trading volume of 498.52 billion yuan [1]. Sector Performance - The top-performing sectors included: - Energy metals with a gain of 2.87%, total trading volume of 606.55 million hands, and a net inflow of 28.04 billion yuan. - Chemical raw materials increased by 2.73%, with a trading volume of 2359.56 million hands and a net inflow of 18.37 billion yuan. - Battery sector rose by 2.50%, with a trading volume of 3640.42 million hands and a net inflow of 57.64 billion yuan. - Agricultural chemical products increased by 2.25%, with a trading volume of 2765.41 million hands and a net inflow of 16.37 billion yuan [2]. - The sectors that faced declines included: - Components sector decreased by 1.58%, with a trading volume of 1208.45 million hands and a net outflow of 24.20 billion yuan. - Software development fell by 1.55%, with a trading volume of 2160.65 million hands and a net outflow of 63.04 billion yuan. - Electric machinery dropped by 1.50%, with a trading volume of 911.78 million hands and a net outflow of 23.72 billion yuan. - IT services declined by 1.48%, with a trading volume of 2515.56 million hands and a net outflow of 59.50 billion yuan [2].

板块题材上，有机硅、化工、能源金属、海南自贸区、光伏设备、港口航运板块涨幅居前；AI语料、量子科技、人形机器 人、云计算、脑机接口板块跌幅居前。盘面上，磷化工、电池上游材料板块集体爆发，天际股份、丰元股份、澄星股份、金浦 钛业、清水源等股涨停。海南自贸区板块再度活跃，海马汽车、海南矿业双双封板。光伏设备板块同样表现积极，弘元绿能、 亿晶光电双双涨停。此外，CPO、能源金属、港口航运板块盘中均有所异动。另一方面，人形机器人概念股多股下挫，恒帅股 份、力星股份盘中跌超10%，浙江荣泰、斯菱股份、安培龙跟跌。AI应用方向同样表现不佳，当虹科技、三六零、海天瑞声等 股下挫。 A股三大指数今日集体调整，截至收盘，上证指数跌0.25%，深证成指跌0.36%，创业板指跌0.51%，北证50涨0.19%。沪深 京三市全天成交额20202亿元，较上日缩量557亿元。全市场超3100只个股下跌。 ...

Core Viewpoint - Tianqi Lithium Industries has shown significant stock performance with a year-to-date increase of 70.48%, reflecting strong market interest and investment activity [1][2]. Group 1: Stock Performance - As of November 7, Tianqi Lithium's stock price reached 56.26 CNY per share, with a trading volume of 17.31 billion CNY and a market capitalization of 923.34 billion CNY [1]. - The stock has experienced a 5.36% increase over the past five trading days, an 18.07% increase over the past 20 days, and a 42.29% increase over the past 60 days [1]. - The company has appeared on the "龙虎榜" (a trading board for high-volume stocks) twice this year, with the latest appearance on August 11, where it recorded a net purchase of 3.81 billion CNY [1]. Group 2: Financial Performance - For the period from January to September 2025, Tianqi Lithium reported a revenue of 73.97 billion CNY, a year-on-year decrease of 26.50%, while the net profit attributable to shareholders was 1.80 billion CNY, reflecting a year-on-year increase of 103.16% [2]. - Cumulatively, the company has distributed 78.68 billion CNY in dividends since its A-share listing, with 71.37 billion CNY distributed over the past three years [3]. Group 3: Shareholder Information - As of September 30, 2025, the number of shareholders increased to 310,100, a rise of 14.52%, while the average number of tradable shares per shareholder decreased by 12.68% to 4,759 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 68.16 million shares, an increase of 3.34 million shares from the previous period [3].

Financial Engineering - The report highlights the tracking of an outperforming stock selection strategy, indicating a focus on stocks with net profit growth exceeding expectations and analyst forecasts [1] Active Quantitative Fund Performance - For the week of October 24 to October 31, 2025, the median return of active quantitative funds was 0.09%, while the CSI 300 Index returned -0.43% and the Wind All A Index returned 0.41% [2] - Year-to-date, the median return of active quantitative funds stands at 28.88%, compared to 17.94% for the CSI 300 Index and 26.38% for the Wind All A Index [2] - Top-performing active quantitative funds this week had returns between 3% and 6%, primarily concentrated in the power equipment sector, while underperforming funds had returns between -2% and -5%, mainly focused on the electronics sector [2] Outperforming Stock Selection Strategy - The outperforming stock selection strategy is constructed based on two indicators: year-on-year net profit exceeding expectations and analyst forecasts exceeding expectations [3] - The strategy utilizes the Wind All A index as the underlying stock pool, combining the top 50 stocks based on analyst forecasts and the top 50 stocks based on net profit growth to form the final stock pool [4] - For the week of October 24 to October 31, 2025, the strategy yielded a return of -0.98%, underperforming the Wind All A Index, which returned 0.41% [4] - In the previous month, the strategy achieved a return of 1.34%, outperforming the Wind All A Index, which returned -0.04% [4] - Year-to-date, the strategy's return is 46.11%, significantly higher than the Wind All A Index's return of 26.38%, resulting in an excess return of 19.73% [4] Summary and Investment Recommendations - The report notes that top-performing active quantitative funds are concentrated in the power equipment sector, while high-return funds this year are focused on the electronics sector [5] - The outperforming stock selection strategy's return for the week was -0.98%, while its year-to-date return is 46.11% [5] - In November 2025, the strategy selected 30 stocks, primarily from the machinery and equipment sector [5] - The highest return this year was from Cangge Mining (000408.SZ), with a return of 116.30%, categorized under non-ferrous metals and energy metals [5]