The non-ferrous metals sector, represented by the Shenwan industry classification, surged nearly 3% on Wednesday, July 22nd, leading the market. This rally is driven by three core factors. Firstly, heightened geopolitical risk aversion, stemming from U.S.-Iran tensions and concerns over the U.S. dollar's credibility, has prompted a revaluation of the financial attributes of gold and the broader metals complex.
Secondly, international commodity prices are strengthening in unison. Key metals on the London Metal Exchange, including copper, tin, and nickel, are broadly advancing. Notably, LME aluminum inventories have fallen below 320,000 tonnes, hitting their lowest level in nearly two decades, reinforcing a tightening supply-demand outlook.
Thirdly, inflation expectations are resurfacing. Rising oil prices are intensifying market worries about a potential acceleration in inflation during the second half of the year, providing renewed pricing support for resource commodities. Bohai Securities maintains a "Positive" rating on the non-ferrous metals industry, with a focus on segments including copper, aluminum, lithium, gold, and strategic metals like tungsten and tin.
The following list summarizes companies within the 60-constituent index of the non-ferrous metals ETF Hua Bao (159876) that are projected to achieve over 100% growth in their half-year 2026 earnings.
Analysis of Key Companies' H1 2026 Performance
Tianqi Lithium Industry Co., Ltd.: The company forecasts a net profit attributable to shareholders of RMB 28.5 to 42.5 billion for H1 2026, representing year-on-year growth of approximately 32.8x to 49.3x, with secondary assessments indicating results "may exceed expectations." The profit surge is primarily driven by a strong rebound in lithium prices from cyclical lows. The company's low-cost resource advantages from its Greenbushes lithium mine and its stake in SQM's salt lake operations are fully contributing profit elasticity, with a reported gross margin of 62.66%. The company has already disclosed its earnings forecast, addressing market inquiries.
Sino Mining Corporation: It expects H1 2026 net profit attributable to shareholders in the range of RMB 10.5 to 12.5 billion, a year-on-year increase of roughly 10.8x to 13.0x, with secondary assessments suggesting results "may meet expectations." The growth is largely due to significant profit elasticity from rising lithium salt prices, while its cesium and rubidium business maintains steady growth. However, Q1 revenue saw a year-on-year decline of 10.44%, though the gross margin improved to 57.52%. The development of new product categories remains a potential source of future growth.
Yahua Industrial Group Co., Ltd.: The group anticipates H1 2026 net profit attributable to shareholders between RMB 11.0 and 13.0 billion, a year-on-year increase of about 7.1x to 8.6x, with secondary assessments indicating performance "may exceed expectations." The better-than-expected results are mainly due to simultaneous growth in the volume and price of its lithium salt products. Its Q1 gross margin rose year-on-year to 24.59%, and its core net profit growth rate reached approximately 13.9x to 16.4x. A significant improvement in the financial expense ratio has led to a marked recovery in profitability.
Western Gold Co., Ltd.: The company projects H1 2026 net profit attributable to shareholders of RMB 5.0 to 5.7 billion, a year-on-year growth of about 2.8x to 3.3x. An initial assessment suggested results "may meet expectations," but a secondary assessment was upgraded to "may exceed expectations." The performance is driven by a higher average gold price and increased production and sales volume. Q1 revenue surged by approximately 3.16x year-on-year, with net profit attributable to shareholders up 21-fold. However, the asset-liability ratio also climbed to 65.56%, warranting attention to future changes in financial leverage.
Northern Copper Co., Ltd.: It forecasts H1 2026 net profit attributable to shareholders of RMB 13.15 to 14.13 billion, representing year-on-year growth of around 1.7x to 1.9x, with secondary assessments indicating results "may exceed expectations." The profit growth primarily benefits from higher year-on-year copper prices and increased production and sales. Q1 revenue grew 46.89% year-on-year, and the gross margin improved to 12.51%. However, the company faces a relatively high net debt ratio and cash flow pressure.
Note: The above data is for reference only and does not constitute any investment advice.
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