How to configure the most popular non-ferrous meta

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How to configure nonferrous metal deleveraging

deleveraging of the non-ferrous metal industry is still on the way, the high beta attribute continues, and macroeconomic expectations and liquidity fluctuations still have a great impact on the sector. Continue to recommend electrolytic aluminum, lithium resources and the Belt and Road

first, usher in the allocation value

deleveraging of non-ferrous metal plate is still on the way, and the high beta continues. At the current time point, the average asset liability ratio of Listed Companies in the non-ferrous metal industry that have disclosed their annual reports is 40.8%, down 2% from the end of 2015. From the balance sheet, the non-ferrous metal sector still has a high beta, and the fluctuation of macroeconomic expectations and credit expectations still have a great impact on the non-ferrous metal sector. We believe that listed companies that deleverage relatively quickly and achieve sustained profits are expected to usher in the allocation value first

continue to recommend electrolytic aluminum plate. Last week, base metal prices rose and fell, with copper prices falling 0.8%, aluminum prices rising 1.5%, and zinc prices rising 1%. Maintaining the short-term demand is not bad, and the medium and long-term raw material costs (mine grade and recoverable resources, coal, electricity, alumina, etc.) push up the metal price judgment, which is the first to push the electrolytic aluminum plate with strong supply side reform expectations, and the copper plate in the reversal of concentrate supply and demand. Maintain the overweight rating: Yunnan Aluminum Co., Ltd., Chinalco, Tongling Nonferrous Metals; Beneficiary targets: Luoyang molybdenum industry, Zijin mining industry, Jiangxi copper industry, Yunnan copper industry, etc

II. Analysis of sub industries

lithium battery raw materials: the upstream sector is still the link with the most clear demand pattern and the smallest supply elasticity. In the first half of the year, the supply and demand of lithium concentrate remained tight, and the price of lithium carbonate/lithium hydroxide remained high. Cobalt trioxide demand is improving, and cobalt prices will continue to rise. Rare earth crackdown and storage expectations are gradually strengthened, which is conducive to the upward price of high-end permanent magnets. Overweight rating: Tianqi lithium, Ganfeng lithium, Zhongke Sanhuan, Zhenghai magnetic materials; Beneficiary targets: Luoyang molybdenum industry and Huayou cobalt industry

the Belt and Road theme: we believe that the implementation of the the Belt and Road strategy is expected to substantially promote resource development and capacity cooperation between Chinese enterprises and countries along the route. Recommend China national color Co., Ltd., jinchengxin (the leader of shaft and lane mining enjoys the recovery of the non-ferrous industry, the current price is close to the initial price and the recent error is small. The Maldives people are deeply honored that employees hold the share price), Mount Everest in Tibet, and China National Mining resources. Aviation and military materials theme: C919 has obtained the release license, and the subsequent localization of aviation materials has a broad market prospect. Overweight rating: according to the preliminary statistics of lithium branch of China Nonferrous Metals Industry Association, yinbang shares

small metals: selected varieties, antimony and titanium are the first. In addition to the spring start-up factors, the gradual clearing of industrial capacity and environmental protection factors are expected to further exacerbate the upward range of small metal prices. We believe that there are great differences in the upward logic of the prices of different small metals. At the current time point, titanium, antimony and magnesium with strong support on the demand side are preferred. The overweight rating: Hunan gold, BaoTi shares · analysis of the current situation of the global utilization of carbon fiber and its composites, and the target of benefit: Yunhai metal

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