Company Overview - Guangdong Haomei New Materials Co., Ltd. is located in Qingyuan City, Guangdong Province, and was established on August 20, 2004. The company went public on May 18, 2020. Its main business involves the research, design, production, and sales of aluminum alloy profiles and system doors and windows [1]. Business Segmentation - The revenue composition of Haomei New Materials is as follows: Industrial aluminum profiles account for 37.99%, automotive lightweight aluminum profiles 26.84%, building aluminum profiles 26.29%, system doors and windows sales 8.46%, and others 0.42% [1]. Stock Performance - On September 11, Haomei New Materials' stock rose by 5.06%, reaching a price of 47.13 CNY per share, with a trading volume of 336 million CNY and a turnover rate of 2.87%. The total market capitalization is 12.014 billion CNY [1]. Fund Holdings - One fund under Dongfang Fund holds Haomei New Materials as a significant position. The Dongfang Quantitative Growth Flexible Allocation Mixed A Fund (005616) held 7,100 shares in the second quarter, representing 0.33% of the fund's net value, ranking as the ninth largest holding. The estimated floating profit for today is approximately 16,100 CNY [2]. Fund Performance - The Dongfang Quantitative Growth Flexible Allocation Mixed A Fund was established on March 21, 2018, with a current scale of 73.9046 million CNY. Year-to-date returns are 32.79%, ranking 1822 out of 8175 in its category. Over the past year, returns are 71.65%, ranking 1147 out of 7982, and since inception, the fund has achieved a return of 111.25% [2]. Fund Management - The fund manager of Dongfang Quantitative Growth Flexible Allocation Mixed A Fund is Wang Huaixun, who has been in the position for 3 years and 119 days. The total asset size of the fund is 111 million CNY, with the best return during his tenure being 51.55% and the worst return 6.06% [3].

Investment Rating - The investment rating for the company is "Accumulate" with a downward adjustment [6] Core Views - The company achieved a revenue of 3.585 billion, a year-on-year increase of 14.86%, but the net profit attributable to the parent company was 92 million, down 25.7% year-on-year [1] - The revenue growth is primarily driven by increased business volume in automotive lightweight aluminum profiles, system windows, and industrial aluminum profiles [1] - The company expects net profits for 2025-2027 to be 218 million, 245 million, and 281 million respectively, with corresponding P/E ratios of 53, 47, and 41 [1] Revenue and Profitability - In the first half of 2025, the company's aluminum profile sales reached 140,800 tons, a year-on-year increase of 12.37% [2] - Revenue from automotive lightweight aluminum profiles, building aluminum profiles, industrial aluminum profiles, and system windows was 960 million, 940 million, 1.36 billion, and 300 million respectively, with year-on-year growth rates of 24.3%, 1.3%, 18.0%, and 28% [2] - The overall gross margin for the first half of 2025 was 10.7%, a decrease of 1.44 percentage points year-on-year [3] Cost and Cash Flow - The company's expense ratio slightly increased to 7.96%, with a net profit margin of 2.56%, down 1.38 percentage points year-on-year [4] - The net cash flow from operating activities for the first half of 2025 was 6.7 million, an increase of 8.2 million year-on-year [4] Financial Forecast - The company forecasts revenue growth rates of 10.60%, 11.46%, 14.27%, 11.33%, and 10.61% for the years 2023 to 2027 [5] - The projected net profit for 2025 is 217.75 million, with an expected P/E ratio of 52.54 [5] Market Position and Strategy - The company is exploring overseas market opportunities, including establishing a production base for automotive parts in Morocco [2] - The company is also focusing on enhancing the penetration rate of system windows in response to policies promoting quality housing and green building [2]

Financial Performance - In the first half of 2025, the company achieved total revenue of 3.585 billion yuan, a year-on-year increase of 14.86% [1] - The net profit attributable to shareholders was 92 million yuan, a year-on-year decrease of 25.74% [1] - The net cash flow from operating activities was approximately 67 million yuan, a year-on-year increase of 539.07% [1] - In Q2 2025, the company reported revenue of 1.911 billion yuan, a year-on-year growth of 11.82% [1] Business Segments - The company focuses on high-strength aluminum alloy profiles, with main business segments including automotive lightweight aluminum profiles, building aluminum profiles, industrial aluminum profiles, and system doors and windows [2] - In the first half of 2025, revenue from automotive lightweight aluminum profiles was 962 million yuan, from building aluminum profiles was 943 million yuan, from industrial aluminum profiles was 1.362 billion yuan, and from system doors and windows was 303 million yuan, accounting for 26.84%, 26.29%, 37.99%, and 8.46% of total revenue respectively [2] - The automotive lightweight aluminum profiles and system doors and windows segments contributed significantly to revenue growth, with year-on-year increases of 24.29% and 27.95% respectively [2] Market Expansion and R&D - The company is capitalizing on the trend of domestic automotive brands expanding overseas, establishing a joint venture with Lingyun Co., Ltd. in Morocco to supply components for the European and North African markets [3] - The company is enhancing its product value by increasing machining investments and planning a processing base for automotive lightweight components in Wuhu, Anhui [3] - In the first half of 2025, the company introduced 70 new designated projects, maintaining a rapid growth momentum [3] - The company is actively expanding the application of aluminum alloy lightweight materials in emerging fields, with R&D expenses reaching 115 million yuan, a year-on-year increase of 22% [1][3] System Doors and Windows Business - The company is leveraging the increasing demand for improved housing quality and the rising penetration rate of system doors and windows, achieving a revenue growth of 27.95% in this segment despite a downturn in the real estate market [4] - The company has established a subsidiary in the United States to expand its overseas business in system doors and windows, developing products specifically for the overseas market and obtaining product certifications [4] - The penetration rate of system doors and windows in the European market is over 70%, while it is less than 5% in the domestic market, indicating significant growth potential in the domestic system doors and windows industry [4]

Core Viewpoint - The aluminum leakage issue poses a significant risk in the aluminum manufacturing industry, particularly in high-temperature casting processes, which can lead to explosions and severe production losses [1] Group 1: Company Overview - Guangdong Haomei New Materials Co., Ltd. is a leading aluminum profile manufacturer in China, producing over 270,000 tons of aluminum profiles annually, including automotive lightweight materials, construction aluminum profiles, industrial aluminum profiles, and high-performance system doors and windows [1] - The company faces major risks in its casting workshop, where aluminum leakage is a critical safety concern [1] Group 2: Risk Management Solutions - After a thorough investigation, Ping An Property & Casualty Insurance identified personnel management and equipment monitoring as key safety control measures to mitigate the risk of aluminum leakage and potential explosions [2] - Ping An developed a customized risk reduction solution using AI and IoT technology, which includes real-time monitoring of employee presence and temperature anomalies to prevent unsafe operations [2] Group 3: Impact of Risk Reduction Measures - Since the implementation of the risk reduction solution, there have been 7 risk alerts issued, with an estimated loss reduction of 2.1 million yuan [3] - The insurance risk reduction service is seen as an effective strategy for enhancing safety in the manufacturing sector, which comprises approximately 1.65 million enterprises in Guangdong [3] - Ping An's "Eagle Eye System DRS3.0" has issued over 10.55 billion disaster warning messages in 2024, covering 67.34 million individuals and businesses, thereby improving public safety management [3]

Core Viewpoint - The credit rating agency has assigned a stable outlook to Guangdong Haomei New Materials Co., Ltd. (referred to as "Haomei New Materials"), indicating confidence in the company's ability to maintain its performance despite challenges in the real estate sector and competition in the new energy vehicle market [3][7]. Company Overview - Haomei New Materials primarily engages in the processing of lightweight aluminum profiles for construction, industry, and automotive applications, with a strong focus on the automotive lightweight aluminum segment [3][5]. - The company has a stable customer base, including major automotive brands such as Mercedes-Benz, Toyota, and NIO, which supports its revenue stability [5][16]. Financial Performance - For 2024, the company is projected to achieve a net profit of 209 million yuan, reflecting a year-on-year growth of 15.34% [5]. - The total assets of the company are expected to reach 64.08 billion yuan in 2024, with total debt at 31.41 billion yuan [3][4]. - The operating revenue for 2024 is forecasted at 66.72 billion yuan, up from 59.86 billion yuan in 2023 [3][4]. Market Position - Haomei New Materials ranks among the top players in the aluminum profile industry, with a market share of 5.06% in the automotive lightweight aluminum segment [16][19]. - The company is expanding its production capacity, particularly in the automotive lightweight segment, with 90 new project approvals in 2024, marking a record high for the company [5][19]. Industry Environment - The aluminum processing industry is experiencing pressure from fluctuating aluminum prices, which can impact cash flow and profitability [11][12]. - The demand for building aluminum profiles is under pressure due to a downturn in the real estate market, while industrial aluminum demand is growing, particularly in the new energy and automotive sectors [11][12][19]. - The overall aluminum profile production in China is expected to decline by 1.1% in 2024, with building aluminum production dropping by 19.9% [11][12]. Operational Challenges - The company faces increased working capital pressure and risks related to accounts receivable collection, particularly from clients in the real estate sector [6][18]. - Safety production risks are present due to the nature of the manufacturing processes involved in aluminum profile production [6][18]. Future Outlook - The stable credit rating outlook reflects the company's accumulated technical strength and customer resources, which are expected to support its sales growth [7][18]. - The company is focusing on optimizing its product structure to maintain revenue growth, particularly in the automotive lightweight segment [5][19].

Core Viewpoint - The company, Anhui Xinbo Aluminum Industry Co., Ltd., continues to engage in commodity hedging activities to mitigate the impact of raw material price fluctuations on its operations [1][2][3] Group 1: Business Overview - The main products of the company and its subsidiaries include new energy photovoltaic, automotive lightweight materials, and other aluminum profiles [1] - The company has a long-standing practice of organizing production based on customer orders and follows a pricing principle of "aluminum ingot price + processing fee" [1][2] - The market price for aluminum ingots is determined by the Shanghai Nonferrous Metals Network [1][2] Group 2: Hedging Activities - The company will limit its hedging activities to aluminum rods, with a maximum trading margin and premium balance not exceeding RMB 80 million [2][4] - The hedging period will not exceed 12 months from the date of board approval [2] - The hedging tools will include futures and derivatives, with a focus on ensuring liquidity and proper settlement arrangements [2][4] Group 3: Risk Assessment - The company acknowledges various risks associated with hedging, including price volatility, funding, internal control, technical, operational, and customer default risks [3][4] - The maximum margin and premium for hedging represent approximately 0.79% of total assets and 2.65% of net assets attributable to shareholders as of December 31, 2024 [4] Group 4: Impact on Financials - The company will adhere to relevant accounting standards for hedging activities, which will reflect in the balance sheet and income statement [5] - The company aims to mitigate the impact of raw material price fluctuations through its hedging activities [5] Group 5: Approval Process - The proposal to continue hedging activities was approved by the company's board of directors and independent directors, confirming that it aligns with the company's operational needs and does not harm shareholder interests [6][7]

Core Viewpoint - The company, Anhui Xinbo Aluminum Industry Co., Ltd., has approved the continuation of its commodity hedging business to mitigate the impact of raw material price fluctuations on its operations [1][5]. Group 1: Commodity Hedging Business Overview - The company and its subsidiaries primarily produce products in the fields of new energy photovoltaics, automotive lightweighting, and other aluminum profiles, with aluminum rods being the main raw material [1][3]. - The company has adopted a production model based on customer orders and follows a pricing principle of "aluminum ingot price + processing fee," with market prices determined by the Shanghai Nonferrous Metals Network [1][3]. - The company aims to lock in product sales prices and costs through hedging, effectively reducing the impact of raw material price volatility on its normal operations [1][3]. Group 2: Hedging Business Details - The hedging transactions will be limited to aluminum rods, with a maximum margin and premium balance of RMB 80 million (including RMB 80 million) during the business period [1][3]. - The authorized period for the hedging business is up to 12 months from the board's approval, with the possibility of automatic extension for ongoing transactions [2][3]. - The company does not consider this hedging activity as a major asset restructuring or related party transaction [2][3]. Group 3: Risk Analysis and Control Measures - The company acknowledges risks associated with hedging, including price fluctuations, funding, internal control, technical, operational, and customer default risks [4][5]. - To mitigate these risks, the company restricts its hedging activities to aluminum futures and related derivatives, prohibiting speculative trading [4][5]. - The company will ensure that funds used for hedging do not come from raised capital and will manage the margin and premium balance within the specified limit [4][5]. Group 4: Impact of Hedging Business - The board believes that continuing the hedging business will help prevent market risks arising from raw material price changes and reduce product cost fluctuations [5][6]. - The supervisory board agrees that the hedging business effectively lowers the impact of raw material price volatility on the company's operations and does not harm the interests of the company or minority shareholders [5][6]. - Independent directors support the continuation of the hedging business, stating it is beneficial for controlling operational risks and does not harm the interests of the company and all shareholders [5][6].

Investment Rating - The report maintains a recommendation for investment in the metals industry, particularly highlighting opportunities in copper and gold [3]. Core Insights - Tungsten prices continue to rise, and rare earth elements are beginning to see price increases as well. The report emphasizes the importance of these materials in the context of trade agreements and market dynamics [2][10]. - The report notes that the U.S. and U.K. have reached an agreement on tariff trade terms, with the U.S. retaining a 10% baseline tariff while reducing steel and aluminum tariffs to zero. This development is expected to influence market sentiment [2]. - The report suggests a focus on materials related to technology and robotics, as well as self-sufficient products, indicating a shift towards strategic materials in the industry [2]. Industry Overview - The metals industry comprises 235 listed companies with a total market capitalization of 399.76 billion and a circulating market value of 371.64 billion [3]. - The performance of the metals sector has shown a 1.67% increase this week, with small metals leading at 4.59% and energy metals at 2.86% [7]. - The report highlights significant stock movements, with Haomei New Materials seeing a 19.26% increase, while Zhongfu Industrial experienced a 4.58% decline [7]. Price Movements - The report indicates that magnesium prices have increased by 5.34% due to supply constraints and low inventory levels, while indium prices have decreased by 3.81% due to export tariffs and reduced demand [7]. - Copper inventory has decreased by 0.95 million tons to 1.201 million tons, which is significantly lower than the previous year's inventory of 4.047 million tons [7]. - Aluminum prices are expected to face short-term pressure due to increased supply and weak demand, although long-term prospects remain positive [8]. Material-Specific Insights - The report notes that black tungsten prices have risen by 2% to 152,500 CNY per ton, driven by supply constraints and market expectations [10]. - Rare earth prices have also seen increases, with prices for terbium, dysprosium, and praseodymium-neodymium oxides rising by 4.81%, 2.49%, and 3.55% respectively [10]. - Gold and silver prices have shown a slight increase, with gold reaching 3,324 USD per ounce, reflecting ongoing geopolitical tensions and market dynamics [10].