Core Viewpoint - Zhongwei Co., Ltd. is in the process of issuing H-shares and listing on the Hong Kong Stock Exchange, with the initial price range set between HKD 34 and HKD 37.8, indicating a premium of 27.7% to 35.02% compared to its A-share price [1][5]. Group 1: H-Share Issuance Details - The global offering of H-shares is expected to end on November 12, with a base issuance of 10,422,540 shares, where 10% is allocated for public offering in Hong Kong and 90% for international offering [5]. - The H-share public offering began on November 7 and is anticipated to conclude on November 12, with the issuance price expected to be announced on November 14 [5]. - The maximum number of H-shares that can be issued, including the exercise of the over-allotment option, is 120 million shares [5]. Group 2: Financial Performance - In the first three quarters of 2025, Zhongwei Co., Ltd. achieved a revenue of CNY 33.297 billion, a year-on-year increase of 10.39%, and a net profit attributable to shareholders of CNY 1.113 billion [7]. - For the third quarter, the company reported a revenue of CNY 11.975 billion, reflecting an 18.84% year-on-year growth, with a net profit of CNY 380 million [7][6]. Group 3: Market Position and Products - Zhongwei Co., Ltd. is a leading player in the research, production, and sales of new energy battery cathode materials and precursors, holding the top global market share in nickel and cobalt materials for five consecutive years [6]. - The company’s proprietary products, such as 4.47V high-voltage lithium cobalt oxide and NCM811, are widely used in various sectors, including consumer electronics and energy storage [6].

Investment Rating - The report maintains an "Outperform" rating for the industry [7] Core Views - Precious Metals: China has increased its gold reserves for the ninth consecutive month, with a total of 73.96 million ounces as of the end of July, reflecting a month-on-month increase of 60,000 ounces. The market is influenced by expectations of a rate cut by the Federal Reserve in the second half of the year [3][12] - Industrial Metals: The seasonal peak is approaching, and attention should be paid to the pace of inventory reduction. Copper prices are supported by a tight supply-demand balance, while aluminum prices may experience fluctuations due to seasonal factors [4][14] - New Energy Metals: The mining operation at Jiangxiawo has been confirmed to be suspended with no plans for resumption in the short term. The lithium market is expected to remain strong due to resilient demand despite supply disruptions [19] - Other Minor Metals: The prices of rare earths are showing slight weakness, but there is limited downside potential in the short term due to existing supply gaps [20] Summary by Sections 1. Investment Strategy - Precious Metals: Continuous increase in gold reserves by China and rising expectations for a Fed rate cut [11] - Industrial Metals: Seasonal peak approaching, focus on inventory reduction [14] - New Energy Metals: Suspension of mining operations at Jiangxiawo [19] - Other Minor Metals: Rare earth prices showing slight weakness [20] 2. Weekly Review - The non-ferrous index rose by 5.8%, with gold showing the largest increase among sub-sectors [24][28] - Notable stock performances include Kexin New Energy (+53.05%) and West Materials (-12.66%) [26] 3. Major Events - Macro: Trump criticizes Powell for delayed rate cuts; China's July PPI decreased by 3.6% [39] - Industry: China continues to increase gold reserves; Jiangxiawo mining operation confirmed to be suspended [44] 4. Non-Ferrous Metal Prices and Inventory - Industrial Metals: Copper and aluminum prices remain stable with copper inventory increasing [47] - Precious Metals: Gold and silver prices are rising due to a weakening dollar and U.S. Treasury yields [66]

Investment Rating - The report maintains a rating of "Outperform" for the industry [6]. Core Views - The report highlights that supply-side production cuts are expected to dominate lithium prices, with rising costs providing additional support [3][17]. - In the precious metals sector, market concerns regarding the independence of the Federal Reserve have intensified due to pressure from President Trump, which is expected to support gold prices in the short term [2][10]. - For industrial metals, a tight supply of copper is anticipated to continue, while seasonal factors may lead to fluctuations in aluminum prices [3][12]. Summary by Sections Precious Metals - The report discusses the impact of President Trump's pressure on the Federal Reserve, which has raised concerns about its independence. This uncertainty is expected to bolster market risk aversion, supporting gold prices in an environment where they are likely to rise more easily than fall [2][10]. - Key stocks to watch include major players like Zhaojin Mining, Shandong Gold, and Zijin Mining, with additional focus on silver and platinum stocks [2][11]. Industrial Metals - The copper market is characterized by a continued tight supply, with expectations of reduced production from some smelters due to low profit margins. The report anticipates that copper prices will remain supported by ongoing demand, particularly from the renewable energy sector [3][12][13]. - Aluminum prices are expected to experience volatility due to seasonal demand fluctuations, but long-term prospects remain positive due to persistent demand from the new energy sector [3][16]. New Energy Metals - The lithium market is facing a dual weakness in supply and demand, with production cuts from lithium salt plants providing limited support. However, the report suggests that lithium remains a strategic investment opportunity in the electric vehicle supply chain [3][17][18]. - Recommended stocks in this sector include Salt Lake Potash, Canggu Mining, and Yongxing Materials, with additional focus on companies like Jiangte Motor and Tianqi Lithium [3][17]. Other Minor Metals - The rare earth market is experiencing strong pricing for light rare earth products due to supply constraints, while heavy rare earths are facing weaker demand. The report notes a divergence in market sentiment, with cautious optimism prevailing despite concerns over potential price corrections [4][19][22]. - Key stocks to monitor include Hunan Gold, Huaxi Nonferrous, and Zhongtian Rare Earth [4][22]. Market Review - The report indicates that the non-ferrous index rose by 6.7%, outperforming the Shanghai and Shenzhen 300 indices. Notable stock performances include Zhongtung High-tech with a 40.19% increase and Hai Xing Co. with a 19.04% decline [23][24][25].