Cyclical Stocks Drive Gains as Shanghai Index Rises 0.22% in Morning Session

Deep News02-11 13:33

On February 11, A-shares experienced narrow fluctuations with cyclical stocks generally showing strength. By the midday close, the Shanghai Composite Index had risen 0.22% to 4,137.55 points. The Shenzhen Component Index fell 0.07%, while the ChiNext Index dropped 0.91%. The Beijing Stock Exchange 50 Index declined 0.06%, and the STAR 50 Index decreased 0.85%. The CSI A500 Index edged up 0.07%. The half-day trading volume for A-shares reached 1.31 trillion yuan.

In money market operations, the central bank announced that on February 11, it conducted 785 billion yuan in 7-day reverse repurchase agreements using a fixed interest rate and quantity tender method, with an operation rate of 1.4%. The bid amount and awarded amount were both 785 billion yuan. Simultaneously, the bank carried out 400 billion yuan in 14-day reverse repurchase agreements employing a fixed quantity, interest rate tender, and multiple-price award method. Wind data indicated that 750 billion yuan in reverse repos matured on the same day, resulting in a net injection of 4,035 billion yuan for the day.

In market news, the low-altitude demonstration verification of the Long March 10 carrier rocket system and the maximum dynamic pressure escape flight test of the Mengzhou manned spacecraft system were successfully completed. This achievement marks a significant phased breakthrough in the development of China's manned lunar exploration project.

Recently, a draft of the "Shanghai '15th Five-Year' Plan for Accelerating the Construction of an International Shipping Center" was released for public consultation. The plan outlines efforts to fully support Shanghai's goal of becoming a modern socialist international metropolis with global influence. By 2030, the city aims to basically complete the construction of an international shipping center characterized by globally leading hub and gateway capabilities, high-quality and efficient modern shipping services, demonstration leadership in smart and low-carbon shipping, a resilient and complete shipping governance system, and significantly enhanced global shipping resource allocation capabilities. Specifically, Shanghai's position as a world-class shipping hub will be further solidified. The plan calls for building a top-tier international container hub with leading capacity and卓越quality, playing a core leading role in the Yangtze River Delta's world-class port cluster, and achieving an annual container throughput of approximately 58 million TEUs.

In sector performance, the non-ferrous metals板块 gained strength. Zhangyuan Tungsten and Xianglu Tungsten both hit new阶段性highs. 000657 (China Tungsten And Hightech Materials Co.,Ltd.), 600549 (Xiamen Tungsten Co.,Ltd.), and Oriental Tantalum Industries were among the top gainers. Seedance concept stocks continued to see localized activity, with Zhangyue Technology and Huanrui Century posting significant increases.

According to institutional estimates, the global cobalt market is projected to face a structural shortage of approximately 30,000 tonnes by 2026, potentially intensifying the supply tightness. On the demand side, emerging sectors such as new energy vehicles, new energy storage systems, and artificial intelligence (AI) computing infrastructure are continuously releasing strong growth momentum. The widespread use of high-energy-density ternary lithium batteries in premium electric vehicles, increased demand for long-cycle-life batteries in large-scale energy storage projects, and stable procurement of lithium cobalt oxide materials for new consumer electronics categories like AI servers and wearable devices collectively form multiple growth drivers for cobalt consumption.

Integrating the latest research reports from several brokerages, here is a brief introduction to four companies for reference.

1. GEM Co., Ltd. With an increasing proportion of self-supplied nickel and cobalt, the company has reduced its exposure to raw material cost fluctuations. This enhances its profit elasticity during price upcycles, providing sustained support for its performance. — Huaxin Securities

2. 000657 (China Tungsten And Hightech Materials Co.,Ltd.) As a global integrated leader in the tungsten industry, the company is steadily progressing with tungsten mine injections. It holds a leading global position in the production scale of PCB micro-drills and is steadily expanding capacity. Its performance is expected to benefit fully from rising tungsten prices and the high景气in the PCB industry. — Galaxy Securities

3. 600549 (Xiamen Tungsten Co.,Ltd.) The company operates as a materials platform enterprise, with business布局in three major areas: tungsten and molybdenum, rare earths, and cathode materials. Its performance is anticipated to benefit from rising tungsten prices and strong demand for lithium cobalt oxide. — Huayuan Securities

4. 603799 (Zhejiang Huayou Cobalt Co.,Ltd.) During the phase of declining cobalt prices, the company's cobalt product business saw its gross margin increase rather than decrease, demonstrating its competitiveness. As cobalt prices continue to rise, the sustainability of its cobalt product business performance is highly anticipated. — Western Securities

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