Core Viewpoint - Luoyang Molybdenum Co., Ltd. has shown significant stock price appreciation and strong financial performance, indicating potential investment opportunities in the company [2][3]. Company Overview - Luoyang Molybdenum Co., Ltd. was established on December 22, 1999, and listed on October 9, 2012. The company is primarily engaged in the mining, selection, deep processing, trading, and research of precious metals such as molybdenum, tungsten, and gold [2]. - The company's main business revenue composition includes: refined metal product trading (48.56%), concentrate product trading (38.31%), copper (27.14%), cobalt (6.04%), molybdenum (3.12%), phosphorus (2.23%), niobium (1.88%), tungsten (1.17%), and others (0.11%) [2]. Stock Performance - As of September 11, Luoyang Molybdenum's stock price increased by 99.94% year-to-date, with a 2.81% rise over the last five trading days, 19.87% over the last 20 days, and 70.60% over the last 60 days [2]. - On September 11, the stock price reached 12.79 CNY per share, with a trading volume of 8.27 billion CNY and a turnover rate of 0.37%, resulting in a total market capitalization of 273.63 billion CNY [1]. Financial Performance - For the first half of 2025, Luoyang Molybdenum achieved operating revenue of 94.77 billion CNY, a year-on-year decrease of 7.83%, while the net profit attributable to shareholders increased by 60.07% to 8.67 billion CNY [2]. - The company has distributed a total of 21.56 billion CNY in dividends since its A-share listing, with 10.58 billion CNY distributed over the past three years [3]. Shareholder Structure - As of June 30, 2025, the number of shareholders decreased by 15.95% to 237,500, with an average of 0 circulating shares per person [2]. - Major shareholders include Hong Kong Central Clearing Limited, holding 648 million shares, and various ETFs such as Huaxia SSE 50 ETF and Huatai-PineBridge CSI 300 ETF, which have increased their holdings [3].

Core Insights - The non-ferrous metal sector has seen a significant increase of 67.57% since the beginning of 2025, with a 10.16% rise in Q2 2025, ranking it 8th among sectors [1][2] - In H1 2025, the non-ferrous metal sector achieved a 27.65% increase, ranking it 1st among sectors [2] Market Performance - The precious metals segment performed the best in H1 2025, with gold prices increasing by 39.8% year-on-year and the net profit attributable to the parent company rising by 64.7% [2] - In Q2 2025, the net profit attributable to the parent company for precious metals reached 5.785 billion yuan, with year-on-year and quarter-on-quarter growth of 75.62% and 48.44% respectively [2] - Industrial metals saw price increases for aluminum, copper, and zinc at 2.27%, 4.02%, and 4.85% year-on-year, with net profits changing by +41.0%, -0.4%, and +25.7% respectively [2] - Energy metals experienced a decline in battery-grade lithium carbonate and lithium hydroxide prices by 32.0% and 27.7% year-on-year, while cobalt sulfate and cobalt tetroxide prices increased by 26.0% and 26.7% [2] - The lithium segment's net profit attributable to the parent company surged by 409% year-on-year, while the cobalt segment's net profit increased by 33% [2] Investment Recommendations - The company is optimistic about opportunities in copper, aluminum, and precious metals due to ongoing supply constraints and resilient domestic demand [3] - Key companies to focus on include Luoyang Molybdenum, Zijin Mining, and China Aluminum among others [3] - In the energy metals sector, the lithium industry is expected to undergo further clearing, with supply risks emerging from regulatory issues in key mining regions [3] - The cobalt market is anticipated to see price increases due to supply constraints from the Democratic Republic of Congo [3] - Precious metals are expected to benefit from anticipated interest rate cuts, with a focus on companies like Western Gold and Shandong Gold [4]

Core Viewpoint - The industrial metal sector in A-share listed companies has shown overall profit improvement as of the first half of 2025, with many companies reporting a turnaround from losses to profits or an increase in profits compared to the previous year [1] Group 1: Profit Improvement - Among the 23 selected industrial metal companies, 8 companies reported both revenue and profit growth, including Northern Rare Earth, Dongfang Tantalum, and others [1] - 7 companies turned losses into profits, such as China Rare Earth, Yunnan Germanium, and others, with notable profit recoveries [1] - China Rare Earth's net profit improved from a loss of 244 million yuan in H1 2024 to a profit of 162 million yuan in H1 2025 [2] - Yunnan Germanium's net profit shifted from a loss of 9 million yuan to a profit of 22 million yuan [2] - Shenghe Resources reported a net profit turnaround from a loss of 69 million yuan to a profit of 377 million yuan [2] Group 2: Revenue and Profit Decline - Companies such as Western Materials, Baotai Co., and Jintian Titanium reported declines in both revenue and profit [2][8] - Western Materials' revenue decreased by 0.35% to 1.539 billion yuan, with a net profit drop of 36.03% to 61.16 million yuan [3][8] - Baotai Co. saw a 20.45% decline in revenue to 2.967 billion yuan and a 49% drop in net profit to 205 million yuan [8] - Jintian Titanium's revenue fell by 22.38% to 318 million yuan, with a net profit decrease of 49.71% to 40.53 million yuan [8] Group 3: Mixed Performance - Companies like Zhongkuang Resources, Xiamen Tungsten, and others experienced revenue growth but profit declines [4][5] - Zhongkuang Resources' revenue increased by 34.89% to 3.267 billion yuan, but net profit plummeted by 81.16% to 89.13 million yuan [6][7] - Xiamen Tungsten's revenue decreased by 4.37% to 972 million yuan, with a net profit decline of 46.47% to 64.12 million yuan [5][6] - Baowu Magnesium's net profit fell by 46.47% despite revenue growth [7]

Core Insights - The industrial metals sector in A-share listed companies has shown overall profit improvement as of the first half of 2025, with many companies reporting better performance compared to the previous year [1] Performance Analysis of Companies Companies with Profit Growth - Eight companies, including Northern Rare Earth and Eastern Tantalum, reported both revenue and profit growth [2] - Notable turnarounds include China Rare Earth, which shifted from a net loss of 244 million yuan in H1 2024 to a profit of 162 million yuan in H1 2025 [2][3] - Other companies that turned losses into profits include Yunnan Zinc Industry and Shenghe Resources, with significant improvements in net profit [2] Companies with Declining Performance - Four companies, including Western Materials and Baoti Group, reported declines in both revenue and profit [5] - Western Materials saw a revenue decrease of 0.35% to 1.539 billion yuan and a net profit drop of 36.03% to 61.16 million yuan [5][10] - Baoti Group's revenue fell by 20.45% to 2.967 billion yuan, with a net profit decline of 49% to 205 million yuan [10] Companies with Revenue Growth but Profit Decline - Companies like Zhongmin Resources and Xiamen Tungsten reported revenue growth but significant profit declines [7] - Zhongmin Resources' revenue increased by 34.89% to 3.267 billion yuan, but net profit plummeted by 81.16% to 89.13 million yuan [8][9] Industry Trends - China Rare Earth led the industry with a revenue growth rate of 62.38%, while Guangsheng Nonferrous Metals experienced the lowest revenue growth, declining by 47.83% [8] - Northern Rare Earth achieved the highest profit growth rate, with a net profit increase of 1951.52% to 931 million yuan [8]

Core Insights - The industrial metals sector in A-share listed companies has shown overall profit improvement as of the end of H1 2025, with many companies reporting better performance compared to the previous year [1] Group 1: Companies with Profit Growth - Eight companies, including Northern Rare Earth and Eastern Tantalum, reported both revenue and profit growth [2] - Notable turnarounds include China Rare Earth, which shifted from a net loss of 244 million yuan in H1 2024 to a profit of 162 million yuan in H1 2025 [2][3] - Other companies that turned losses into profits include Yunnan Zinc Industry and Shenghe Resources, with significant improvements in net profit [2][3] Group 2: Companies with Declining Performance - Companies such as Western Materials and Baotai Co. reported declines in both revenue and net profit [5] - Western Materials had a revenue of 1.539 billion yuan, down 0.35%, and a net profit of 61.16 million yuan, down 36.03% [5][6] - Baotai Co. saw a revenue drop of 20.45% to 2.967 billion yuan and a net profit decline of 49% to 205 million yuan [10] Group 3: Companies with Revenue Growth but Profit Decline - Companies like Zhongkuang Resources and Xiamen Tungsten reported revenue growth but a decline in net profit [7] - Zhongkuang Resources had a revenue increase of 34.89% to 3.267 billion yuan, but net profit fell by 81.16% to 8.913 million yuan [8][9] - Xiamen Tungsten's revenue grew by 4.37% to 9.72 billion yuan, while net profit decreased by 4.37% [8][9] Group 4: Industry Performance Metrics - China Rare Earth led the industry with a revenue growth rate of 62.38% in H1 2025, reaching 1.875 billion yuan [8] - Guangsheng Nonferrous Metals had the lowest revenue growth rate, with a decline of 47.83% to 2.677 billion yuan [8] - Northern Rare Earth achieved the highest net profit growth rate, increasing by 1951.52% to 931 million yuan [8]

Investment Rating - The investment rating for the company is "Buy" and it is maintained [7] Core Views - The company's H1 performance exceeded expectations, with a historical high in net profit and a strong long-term growth outlook [5][6] - The copper and cobalt business continues to contribute positively with both volume and price increases, supported by operational improvements and market conditions [5] - The acquisition of the Ecuadorian Odin Mining (KGHM) is expected to enhance the company's resource portfolio, with plans for gold production starting by 2029 [5] Financial Performance - In H1 2025, the company achieved revenue of 94.773 billion yuan, a year-over-year decrease of 7.83%, while total profit reached 14.903 billion yuan, an increase of 33.62%, and net profit attributable to shareholders was 8.671 billion yuan, up 60.07% [1] - The company's asset-liability ratio stands at 50.15%, a decrease of 9.01 percentage points year-over-year [1] Production and Efficiency - The company produced 353,600 tons of copper, a year-over-year increase of 12.68%, and 61,100 tons of cobalt, up 13.05%, both exceeding production guidance [2] - Other products such as molybdenum, tungsten, niobium, and phosphate also showed significant production progress, with completion rates above 50% [2] Cost Management - Operating costs for H1 2025 were 74.727 billion yuan, a decrease of 10.96% year-over-year, attributed to improved recovery rates and reduced procurement costs [3] - Financial expenses decreased by 43.96% year-over-year due to a reduction in borrowing scale and interest expenses [4] Future Projections - The company expects continued growth in revenue and net profit, with projections for net profit attributable to shareholders increasing to 16.7 billion yuan in 2025, 19 billion yuan in 2026, and 21.1 billion yuan in 2027 [5][6] - The estimated P/E ratios for 2025, 2026, and 2027 are 16x, 14x, and 13x respectively [5]

Core Viewpoint - The industrial metal sector experienced a decline of 0.51% on September 10, with New Weiling leading the drop, while the Shanghai Composite Index rose by 0.13% and the Shenzhen Component Index increased by 0.38% [1][3] Group 1: Market Performance - The Shanghai Composite Index closed at 3812.22, up 0.13% [1] - The Shenzhen Component Index closed at 12557.68, up 0.38% [1] - The industrial metal sector saw a net outflow of 9.42 billion yuan from main funds, while retail investors contributed a net inflow of 8.33 billion yuan [3] Group 2: Individual Stock Performance - Xinyuan Intelligent Manufacturing (600615) closed at 13.13, up 7.36% with a trading volume of 280,600 shares [1] - Jingyi Co., Ltd. (002295) closed at 11.41, up 4.97% with a trading volume of 219,300 shares [1] - Yongcheng Tai (605208) closed at 15.05, up 4.22% with a trading volume of 408,100 shares [1] - Dingsheng New Materials (603876) closed at 12.44, up 3.49% with a trading volume of 921,500 shares [1] - Hailiang Co., Ltd. (002203) closed at 12.76, up 2.99% with a trading volume of 821,100 shares [1] - Hongchuang Holdings (002379) closed at 16.72, up 1.64% with a trading volume of 163,000 shares [1] - Luoping Zinc Electric (002114) closed at 7.88, up 1.55% with a trading volume of 138,300 shares [1] - Chang Aluminum (002160) closed at 4.44, up 1.37% with a trading volume of 340,900 shares [1] - Minfa Aluminum (002578) closed at 3.49, up 1.16% with a trading volume of 195,500 shares [1] - Northern Copper Industry (000737) closed at 12.10, up 1.00% with a trading volume of 718,100 shares [1]

Group 1 - The core viewpoint of the article highlights the unexpected decline in U.S. employment data, leading to increased market expectations for a Federal Reserve rate cut in September, which may result in marginal liquidity easing [1][2] - The U.S. August non-farm payrolls unexpectedly dropped to 22,000 (previous value 73,000, forecast 75,000), with the unemployment rate rising to 4.3%, indicating increased risks in the labor market [2] - The article discusses the uncertainty surrounding U.S. tariff policies and inflation, suggesting that gold prices may experience high-level fluctuations [1][2] Group 2 - In the industrial metals sector, there is an anticipation of demand recovery during the peak season, supported by macroeconomic policies and improved processing rates in downstream industries [1][2] - The domestic manufacturing PMI index rose by 0.1 percentage points to 49.4% in August, indicating a slight improvement in manufacturing sentiment [2] - The supply-demand dynamics for industrial metals are expected to improve marginally due to seasonal factors and maintenance disruptions, providing price support [2]

Investment Rating - The report maintains a "Positive" outlook for the non-ferrous and steel industry [5] Core Viewpoints - The main driver for the recent rise in gold prices is the increased certainty of interest rate cuts by the Federal Reserve, alongside rising risks [8][13] - The steel industry is expected to see enhanced mid-term price support due to interest rate cut expectations and policy initiatives [17] Summary by Sections Gold Sector - Companies with self-owned gold mines are likely to see greater profit elasticity during rising gold prices, ensuring sustained performance growth. Recommended stocks include Chifeng Jilong Gold Mining (600988, Buy) and Zhuhai Group (600961, Buy) [3] - The recent gold price increase is attributed to the shift in dominant investors to U.S. domestic institutions, with a focus on economic recession risks, stock market volatility, and credit risks associated with the dollar [8][14][15] Steel Sector - Demand for steel is under pressure during the off-season, with a need to validate expectations for the peak season [17] - Overall inventory levels for both social and steel mill stocks have risen, indicating a need for structural improvement in demand [23] - Short-term steel prices are under downward pressure, but policy and demand improvements are expected to support a mid-term recovery [38] New Energy Metals - The production of lithium carbonate in July 2025 saw a significant year-on-year increase of 28.33%, indicating strong supply dynamics [42] - The demand for new energy vehicles remains robust, with July 2025 production and sales showing year-on-year growth of 22.53% and 19.30%, respectively [46] - Prices for lithium, cobalt, and nickel are showing divergence, with lithium carbonate prices decreasing by 4.21% week-on-week [51]

Investment Rating - The report maintains a positive outlook on the metals and new materials industry, particularly highlighting the performance of the gold sector [3][4]. Core Insights - The report indicates that the gold sector is expected to benefit from rising interest rate cut expectations, with a long-term trend of central bank gold purchases anticipated due to low current gold reserves in China [4][23]. - The industrial metals segment shows a mixed performance, with copper prices expected to remain strong due to supply constraints and increasing demand from sectors like home appliances and power grid investments [4][36]. - The aluminum market is projected to experience a long-term upward trend in prices, supported by tightening supply-demand dynamics and potential policy support [4][49]. Weekly Market Review - The Shanghai Composite Index fell by 1.18%, while the non-ferrous metals index rose by 2.12%, outperforming the Shanghai Composite by 2.93 percentage points [5][11]. - Precious metals saw a significant increase, with gold prices rising by 3.52% and silver by 1.87% [4][17]. - Year-to-date performance shows precious metals up by 60.89%, aluminum by 23.36%, and copper by 60.11% [11][12]. Price Changes and Key Company Valuations - The report details price changes for various metals, with copper at $9,898 per ton, aluminum at $2,601 per ton, and gold at $3,640 per ounce [17][20]. - Key companies in the sector include Zijin Mining, Shandong Gold, and Huayou Cobalt, with respective valuations and earnings projections provided [20][21]. Supply and Demand Analysis - Copper supply is tightening, with domestic social inventory increasing to 141,000 tons, while demand remains robust with operating rates for copper products showing slight increases [36][49]. - The aluminum sector is experiencing a rise in downstream processing rates, with a current operating rate of 61.70% [49][51]. - Steel production is affected by short-term production limits in Hebei, leading to a decrease in output and an increase in steel prices [4][73].