Core Viewpoint - The A-share market experienced a significant rebound, with the Shanghai Composite Index reaching a 10-year high, driven by the strong performance of the non-ferrous metals sector, particularly highlighted by the performance of Luoyang Molybdenum Co., Ltd. [1][4] Company Summary - Luoyang Molybdenum reported a net profit attributable to shareholders of 5.608 billion yuan for Q3, marking a year-on-year increase of 96.4%, while total revenue was 50.713 billion yuan, a decrease of 2.36% [1] - For the first three quarters, the company achieved a net profit of 14.28 billion yuan, up 72.61% year-on-year, with total revenue of 145.485 billion yuan, down 5.99% [1] - The company announced plans to invest 1.084 billion USD in the KFM Phase II project in the Democratic Republic of the Congo, expected to be completed by 2027, which will increase ore processing capacity by 7.26 million tons per year and add an average of 100,000 tons of copper metal annually [1] Industry Summary - The non-ferrous metals sector is experiencing a strong rebound, supported by macroeconomic policies and strategic resource positioning, despite recent fluctuations in gold and copper prices [4][5] - The sector is expected to benefit from a combination of supply-side constraints, new demand drivers, and a favorable economic cycle, with a focus on long-term investment opportunities [4][5] - The non-ferrous metals ETF (159652) has a high concentration of strategic metals, with a copper content of 33% and gold content of 14%, making it a leading choice in the sector [6][7] - The ETF has shown superior performance with a cumulative return of 116.5% since 2022, driven by profit growth rather than valuation expansion, indicating a strong earnings-driven growth phase [8][11]

Core Viewpoint - The article discusses the recent disclosures of third-quarter reports from A-share listed companies, highlighting the trading activities of several large private equity firms, including significant reductions in holdings by some and new investments by others [1]. Group 1: High Yi Asset's Trading Activities - High Yi Asset's CIO, Deng Xiaofeng, significantly reduced holdings in Zijin Mining, exiting the shareholder list with the High Yi Xiaofeng Hongyuan Fund and reducing shares in the High Yi Xiaofeng No. 2 Fund by 18.6 million shares, bringing total holdings down to 180 million shares, valued at approximately 5.3 billion yuan [3]. - Zijin Mining's stock price has increased by 99.14% year-to-date, with reported revenues of 254.2 billion yuan, a year-on-year increase of 10.33%, and a net profit of 37.864 billion yuan, up 55.45% [3]. Group 2: Hikvision's Trading Activities - Feng Liu, a senior fund manager at High Yi Asset, continued to reduce holdings in Hikvision, selling 58 million shares, bringing total holdings down to 280 million shares, with a market value of 8.826 billion yuan [5]. - Hikvision's third-quarter report shows total revenue of 65.758 billion yuan, a year-on-year increase of 1.18%, and a net profit of 9.319 billion yuan, up 14.94% [6]. Group 3: New Investments by Other Private Equity Firms - Ruijun Asset's Chief Research Officer, Dong Chengfei, increased holdings in Yangjie Technology, raising total shares to 10.9598 million, with a market value of 762 million yuan [8]. - Yangjie Technology reported revenues of 5.348 billion yuan, a year-on-year increase of 20.89%, and a net profit of 974 million yuan, up 45.51%, with a stock price increase of 75.34% year-to-date [9]. - Chongyang Investment entered Haitong Development, holding 7.7919 million shares valued at 101 million yuan [10]. - Lingren Private Fund made a new investment in Zhongce Rubber, acquiring 1.1539 million shares valued at 58 million yuan [12].

Core Viewpoint - The A-share market is experiencing a slight consolidation, with a noticeable trend of "high cutting and low buying" in recent funds, particularly focusing on the solid performance and high valuation of the non-ferrous metal sector during the interim report season [1][3] Group 1: Market Performance - The Non-ferrous 50 ETF (159652) saw a significant net inflow of over 1 billion yuan in a single day, with four out of the last five days showing net inflows totaling over 1.85 billion yuan [3] - As of the latest data, the Non-ferrous 50 ETF (159652) has surpassed a scale of 10 billion yuan, with both fund shares and scale reaching new highs since its listing [3] - The Non-ferrous 50 ETF (159652) experienced a net subscription of 2.9 million shares, translating to a real-time net subscription amount exceeding 37 million yuan [1] Group 2: Price Movements - Silver trading prices have surpassed 40 USD per ounce, marking the highest level since 2011 [5] - On September 1, tungsten concentrate prices surged by 12,000 yuan, reaching 264,000 yuan per ton, with a growth rate of 4.76%, and a cumulative increase of nearly 35% over the past two months [5] - COMEX gold futures rose over 1% on September 1, reaching a peak of 3,552 USD per ounce, setting a new historical high [5] Group 3: Sector Analysis - Analysts indicate that the A-share precious metals and industrial metals sectors are currently in a "high profitability, low valuation" phase, with expectations for valuation increases driven by active capital market trading and the "high cutting and low buying" rotation effect [3] - The non-ferrous sector is experiencing a comprehensive growth across various sub-sectors, with price-driven earnings per share (EPS) and improved sentiment contributing to a dual boost in price-to-earnings (PE) ratios [5] - The Non-ferrous 50 ETF (159652) is highlighted as a leading option for investors looking to capitalize on future opportunities in precious and industrial metals, given its higher copper content and scale [6][10]

Group 1 - The non-ferrous metal sector experienced a broad increase, with notable stock performances including Jiangxi Copper rising by 5.84% to HKD 18.49, and Luoyang Molybdenum increasing by 5.26% to HKD 10.6 [1] - The U.S. Labor Department reported a 0.2% month-on-month increase in the Consumer Price Index (CPI) for July, aligning with expectations and showing a deceleration of 0.1 percentage points from the previous month [1] - Following the CPI data release, traders are betting on a high probability (over 90%) that the Federal Reserve will cut interest rates by 25 basis points in September [1] Group 2 - CITIC Securities noted that poor U.S. economic and employment data, combined with Trump's nomination of Stephen Moore to the Federal Reserve, has strengthened market expectations for a rate cut in September, leading to a rally in the non-ferrous sector [2] - The ongoing domestic "anti-involution" policy aims to optimize production factors and enhance profitability across various segments, which is favorable for the transmission of rising metal prices to downstream markets [2] - The valuation of the industrial metals sector is currently low, indicating potential for upward correction, with a bullish market for non-ferrous metals beginning to emerge as both EPS and PE metrics show promise [2]

Core Insights - The Chinese non-ferrous metals industry showed stable growth in production during the first quarter of 2025, with refined copper output at 3.536 million tons, a year-on-year increase of 5.0%, and electrolytic aluminum output at 11.066 million tons, a year-on-year increase of 3.2% [1] - Fixed asset investment in the non-ferrous metals industry increased by 21.6% year-on-year, surpassing the national industrial investment growth by 9.6 percentage points, with mining investment up by 38.6% and smelting and processing investment up by 17.9% [1] - Revenue for large-scale non-ferrous metal enterprises reached 2.2293 trillion yuan, a year-on-year increase of 19.6%, while total profit was 91.77 billion yuan, a year-on-year increase of 40.7% [1] Production and Investment - The production of ten types of non-ferrous metals is expected to continue growing, with an estimated increase of around 3% in the first half of the year [2] - The mining sector saw a significant increase in private investment, with a year-on-year growth of 52.2%, while smelting and processing industries experienced a 14.1% increase in private investment [1] Profitability and Economic Outlook - The profit margin for large-scale non-ferrous metal enterprises was 4.1%, an increase of 0.6 percentage points year-on-year, with the mining sector's profit up by 62.3% and smelting and processing profit up by 33.6% [1] - The industry is expected to see a growth in added value of around 6% in the first half of the year, although there may be increasing disparities in profitability across different sectors [2]