Core Viewpoint - Innovation Industry (02788) has seen a price increase of nearly 4% in intraday trading, currently up 3.65% at HKD 23.88, with a trading volume of HKD 9.7744 million. The company has been included in the Hang Seng Composite Index as of December 31, 2025, which will take effect on March 9, 2026, expanding its investor base through the Stock Connect program [1]. Group 1 - The inclusion in the Hang Seng Composite Index is expected to broaden the investor base for Innovation Industry, with potential inclusion in the Stock Connect program by March 2023 [1]. - Innovation Industry currently possesses a cost advantage in electricity, and the commissioning of self-supplied wind and solar power sources in 2026-27 will further reduce production costs [1]. - The company is expanding its electrolytic aluminum capacity through a joint venture in Saudi Arabia, supported by new investments from the Saudi Public Investment Fund, which is expected to ensure project execution progress [1]. Group 2 - The tight supply of electrolytic aluminum is anticipated to provide strong support for aluminum prices, with estimates indicating that a 1% increase in electrolytic aluminum prices could lead to a 2.5% increase in Innovation Industry's profits in 2026 [1].

Core Viewpoint - Innovation Industry (02788) has been included in the Hang Seng Composite Index, which is expected to broaden its investor base and enhance its market presence [1] Group 1: Stock Performance - Innovation Industry's stock rose nearly 4% during trading, with a current price of HKD 23.88 and a trading volume of HKD 9.7744 million [1] Group 2: Index Inclusion - The inclusion in the Hang Seng Composite Index will take effect after the market closes on March 6, 2026, and will be effective from March 9, 2026 [1] - The adjustment will also affect the eligible stocks for the Hong Kong Stock Connect [1] Group 3: Cost Advantages - Innovation Industry currently possesses a cost advantage in electricity, which is expected to improve further with the commissioning of self-supplied wind and solar power sources in 2026-27 [1] Group 4: Growth Prospects - The company is expanding its electrolytic aluminum capacity through a joint venture in Saudi Arabia, supported by new investments from the Saudi Public Investment Fund [1] - The tight supply of electrolytic aluminum is projected to provide strong support for aluminum prices, with a 1% increase in aluminum prices expected to boost Innovation Industry's profits by 2.5% in 2026 [1]

Core Viewpoint - The market is experiencing a reshuffling of sector dynamics, with oil and gas, as well as non-ferrous metals, leading the gains, while sectors like film and AI applications are weakening. The robot concept saw a slight initial rise but then retreated [1]. Market Performance - Major indices opened high but retreated before rising again, indicating a volatile trading environment. As of 10:20, significant gains were noted in oil and gas and non-ferrous metals sectors, while the film and AI application sectors showed weakness [1]. - The robot ETF (562360) initially rose over 2.7% before experiencing a decline, currently showing a drop of approximately 0.43%. The trading volume in the first hour exceeded more than half of the previous day's total [1]. News Impact - The Chinese Foreign Ministry announced that German Chancellor Merz will visit China from February 25 to 26. His itinerary includes visits to the Chinese robotics company Yushutech and the German company Siemens Energy [1]. Industry Outlook - Huaxi Securities believes that with breakthroughs in AI technology and support from domestic and international policies, the mass production of robots is approaching. There is a growing demand for domestic substitutes in core components of humanoid robots driven by cost reduction needs, particularly in precision transmission parts and electronic skin [1]. - The robot ETF (562360) tracks the CSI Robotics Index, which includes system solution providers, digital workshop and production line integrators, automation equipment manufacturers, and other robotics-related listed companies, reflecting the overall performance of robotics-related securities [1].

Report Overview - The report is the "Guotai Junan Futures Commodity Research Morning Report - Green Finance and New Energy" dated February 24, 2026, covering nickel, stainless steel, lithium carbonate, industrial silicon, and polysilicon [1][2]. Industry Investment Ratings - Not provided in the report. Core Views - Nickel: Speculative sentiment in Shanghai nickel remains, and continuous attention should be paid to the contradictions in nickel ore [2]. - Stainless steel: The cost - support center has moved up, but off - season inventory accumulation restricts its elasticity [2]. - Lithium carbonate: Supply and demand are tight, and the futures price has bottom support [2]. - Industrial silicon: Attention should be paid to the resumption rhythm of upstream factories [2]. - Polysilicon: The price of silicon wafers has declined [2]. Summary by Related Catalogs Nickel and Stainless Steel - **Fundamental Data**: The closing price of Shanghai nickel futures was 135,190, down 4,420 from the previous day; the closing price of stainless - steel futures was 13,860, down 110 from the previous day. Other data such as trading volume, spot prices, and spreads also changed to varying degrees [4]. - **Macro and Industry News**: Indonesia has suspended issuing new smelting licenses, plans to revise the benchmark price formula for nickel ores, and some mines are facing potential fines. There are also issues such as monopoly in port logistics in the IMIP park, and some overseas nickel mines plan to restart operations [4][5][6]. - **Trend Strength**: The trend strength of nickel and stainless steel is 0, indicating a neutral outlook [9]. Lithium Carbonate - **Fundamental Data**: The closing price of the 2605 contract was 152,640, up 3,220 from the previous day. Data on trading volume, open interest, basis, and prices of upstream and downstream products in the lithium - salt industry chain also showed corresponding changes [11]. - **Macro and Industry News**: Samsung SDI has made a breakthrough in lithium - metal batteries, and the construction project of Zijin Mining's solid - state battery lithium - new material has started [12][13]. - **Trend Strength**: The trend strength of lithium carbonate is 1, indicating a slightly bullish outlook [13]. Industrial Silicon and Polysilicon - **Fundamental Data**: The closing price of the Si2605 contract was 8,395 yuan/ton, up 60 from the previous day; the closing price of the PS2605 contract was 49,305 yuan/ton, up 290 from the previous day. There were changes in trading volume, open interest, basis, prices, and profits of related products, and the price of silicon wafers decreased [15]. - **Macro and Industry News**: China Pingmei Shenma Group, Longi Green Energy, and the Zambian government signed a cooperation memorandum for a 1000 - megawatt solar - power project [15][17]. - **Trend Strength**: The trend strength of industrial silicon and polysilicon is 0, indicating a neutral outlook [17].

Core Viewpoint - The non-ferrous metal sector continues to show strong performance, with the non-ferrous ETF (159876) experiencing a price surge of over 3.6% and a net subscription of 7.2 million shares, indicating positive market sentiment towards the sector [1]. Group 1: Market Performance - The non-ferrous ETF (159876) has seen a price increase of 3.44% as of the latest trading session [2]. - Key stocks in the sector, such as Hunan Silver and Silver Nonferrous, have reached their daily limit up, while others like Xinyi Silver Tin and Hunan Gold have increased by over 6% [1]. Group 2: Gold Market Insights - Spot gold prices have returned to $5,200 per ounce, marking the highest level in three weeks, driven by uncertainties in U.S. trade policy and economic outlook [2]. - Peter Schiff predicts gold prices could reach $7,000, driven by central banks increasing gold reserves and rising U.S. fiscal deficits [2]. Group 3: Future Outlook - China International Capital Corporation (CICC) believes that the non-ferrous metal market has not ended, with a potential mid-term recovery expected after short-term adjustments [3]. - Huatai Securities maintains a long-term positive outlook on the non-ferrous metal sector, viewing it as a strategic investment opportunity [3]. Group 4: ETF Characteristics - The non-ferrous ETF covers a wide range of metals including copper, aluminum, gold, rare earths, and lithium, making it an efficient tool for investors to gain exposure to the sector [4].

Core Viewpoint - The A-share market opened strongly on the first trading day after the Spring Festival, with the non-ferrous metal sector showing particularly strong performance, indicating positive investor sentiment towards the sector [1]. Group 1: Market Performance - On February 24, the A-share indices all opened significantly higher, with the non-ferrous metal sector leading the gains [1]. - The non-ferrous ETF Huabao (159876) saw its price surge over 3.6%, with a net subscription of 7.2 million units, reflecting strong capital inflow and positive outlook for the sector [1]. Group 2: Industry Insights - China Galaxy Securities suggests capitalizing on the "AI leap + century change" resonance, indicating a super cycle for non-ferrous metals driven by the "AI technology revolution" and "global order reshaping" [1]. - Historical data shows that each commodity cycle lasts long (25-30 years), with upward trends lasting 8-10 years and downward trends lasting 15-20 years, suggesting that the current non-ferrous metal cycle may continue for an extended period [1]. - The consensus among institutions is that the non-ferrous metal sector is likely to maintain a bullish trend, with CICC noting that the resource stock market has not ended and is expected to regain upward momentum after short-term adjustments [1]. Group 3: ETF Coverage - The non-ferrous ETF Huabao (159876) and its linked fund (017140) comprehensively cover industries such as copper, aluminum, gold, rare earths, and lithium, providing exposure to precious metals (hedging), strategic metals (growth), and industrial metals (recovery) across different economic cycles [2].

Core Viewpoint - The A-share market opened significantly higher on the first trading day of the Year of the Horse, with the National Index of Free Cash Flow rising over 2.5%, led by stocks such as Silver Nonferrous, Furuitec, and Fenghuo Communication [1] Group 1: Market Performance - The largest free cash flow ETF (159201) has seen a continuous net inflow of funds totaling 1.732 billion yuan over the past nine days [1] - The latest share count of the free cash flow ETF reached 10.627 billion shares, with a total scale of 13.839 billion yuan [1] Group 2: Investment Strategy - Tianfeng Securities believes that historically, small-cap growth styles tend to outperform after holidays, and this trend may still be evident this year, although its strength may be constrained by two factors: the strong performance of large-cap growth stocks in a favorable industry environment and the enduring logic of "high dividend" assets as a long-term investment strategy [1] - The free cash flow strategy introduces a new paradigm for value investing, characterized by the ability to provide direct cash returns to investors and ensuring the sustainability and scale of dividends, serving as the foundation for corporate dividend payments [1] Group 3: ETF Composition - The free cash flow ETF (159201) samples the entire A-share market, with the top three industries being automotive, oil and petrochemicals, and nonferrous metals, indicating a larger market capitalization [1] - The Cash Flow 500 ETF (560120) samples the CSI 500, with the top three industries being nonferrous metals, basic chemicals, and steel, indicating a focus on mid and small-cap stocks [1]

Group 1 - The core point of the article highlights a significant accumulation of copper inventories across major exchanges during the Spring Festival period, with LME copper inventory reaching a near one-year high of 241,825 tons [2] - Shanghai Futures Exchange reported a weekly increase of 9.47% in copper inventory, bringing it to 272,475 tons, the highest level in one and a half years [2] - International copper inventory rose by 2,277 tons to 20,625 tons, while New York copper inventory also continued to accumulate, reaching a record high of 600,436 tons [2] Group 2 - The article provides a comparative analysis of copper inventory data from three major exchanges since February 2026, indicating a consistent upward trend in inventory levels [3][4] - The data table shows specific inventory levels for COMEX, LME, and SHFE, illustrating the changes in inventory over the specified period [5] - The article notes that generally, a decline in domestic and international exchange inventories supports copper prices, while an increase may exert downward pressure on prices [2]

1. Industry Investment Rating - No investment rating information provided in the report 2. Core Viewpoints - The speculation sentiment in Shanghai nickel still exists, and continuous attention should be paid to the contradictions in nickel ore [1] - The cost support center of stainless steel has moved up, but inventory accumulation in the off - season restricts its elasticity [1] 3. Summary by Relevant Catalogs 3.1 Fundamental Tracking - **Futures Data**: - The closing price of the Shanghai nickel main contract was 135,190, down 4,420 from T - 1; the closing price of the stainless - steel main contract was 13,860, down 110 from T - 1 [1] - The trading volume of the Shanghai nickel main contract was 379,528, down 54,310 from T - 1; the trading volume of the stainless - steel main contract was 223,883, up 3,871 from T - 1 [1] - **Industrial Chain Data**: - The price of 1 imported nickel was 135,500, down 5,250 from T - 1; the ex - factory price of 8 - 12% high - nickel pig iron was 1,052, unchanged from T - 1 [1] - The price of red clay nickel ore 1.5% (Philippines CIF) was 65, unchanged from T - 1; the price of battery - grade nickel sulfate was 31,950, unchanged from T - 1 [1] 3.2 Macro and Industry News - Indonesia has suspended issuing new smelting licenses through the OSS platform for projects producing "restricted products" such as Nickel matte, MHP, FeNi, and NPI [1] - Indonesia will revise the benchmark price formula for nickel ore products in early 2026 and start levying royalties on cobalt as an independent commodity [2] - Some Indonesian mining companies face potential fines of about 80.2 trillion Indonesian rupiahs for illegal occupation of forest land, and the final amount may be lower [2] - The KPPU found monopoly behavior in the port warehousing and logistics of the IMIP park in Indonesia, and the park is in consultation [3] - Indonesia has started approving the 2026 mining work plans and budgets (RKAB), and the approved nickel ore production quota is between 2.6 and 2.7 billion tons [3][4] - A Swiss investment group plans to restart its nickel mine business in Guatemala in a few months due to the rebound in nickel prices and the lifting of restrictions [3] - Philippine miners say the export volume of Indonesian nickel ore may double [4] - A landslide occurred in a tailings area of the IMIP park in Indonesia, causing one death and suspending operations in the affected area [5] 3.3 Trend Intensity - The trend intensity of nickel is 0, and the trend intensity of stainless steel is 0, indicating a neutral view [6]

Group 1: Market Overview - On the first trading day of the Year of the Rabbit, A-shares opened higher across the board, with the Shanghai Composite Index rising by 0.59%, the Shenzhen Component Index by 0.93%, and the ChiNext Index by 0.67%, while the Sci-Tech Innovation Index fell by 1.26% [1] - Cyclical stocks led the gains in the morning session, influenced by geopolitical events, with significant increases in oil and gas extraction, non-ferrous metals, and port shipping sectors [1] Group 2: Sector Performance - The oil and gas extraction and service sector saw a notable increase of 9.75%, with individual stocks like Tongyuan Petroleum rising by 20.04%, Keli Co. by 20.01%, and Qianeng Hengxin by 17.43% [2] - Major oil companies collectively saw significant gains, with China National Offshore Oil Corporation (CNOOC) rising over 7% [1] Group 3: Geopolitical Impact - Concerns over reduced oil supply due to geopolitical conflicts have led to a rise in oil prices, with global oil and gas capital expenditures at low levels, indicating potential for upward recovery [5] - The European Union has extended its naval operation in the Red Sea until February 28, 2027, allocating nearly €15 million for operational costs, aimed at maintaining maritime security and ensuring freedom of navigation [5] Group 4: Chemical Sector Insights - The chemical sector showed active performance, particularly in titanium dioxide, glyphosate, and phosphorus chemical industries, with expectations of steady improvement in capacity utilization for phosphoric acid [6] - The supply-demand dynamics for feed-grade calcium phosphate are expected to tighten, with prices anticipated to trend upward due to structural shortages in industrial-grade phosphoric acid [6]