The nonferrous metals sector is witnessing a wave of positive earnings reports amid a low-price market environment. Today (July 14th), Huabao Nonferrous Metals ETF (159876), the largest ETF tracking its target index, initially dipped to a new year-to-date low in the morning session but staged a strong rebound in the afternoon. The fund's intraday price is currently up 4.34%. Data shows the ETF has attracted a total of 220 million yuan over the past 10 trading days.
Among its constituents, aluminum leaders are notably leading the gains. Henan Zhongfu Industrial Co.,Ltd. (SHSE: 600595) hit the daily limit-up, while Yunnan Aluminium Co., Ltd. rose over 8%. Tianshan Aluminum Group Co., Ltd. and Aluminum Corporation of China Limited (Chalco) gained more than 7%. China Rare Earth Group Co., Ltd., a leading rare earth firm, surged over 7%. Chifeng Jilong Gold Mining Co., Ltd., a gold industry leader, advanced more than 6%. Copper leaders such as China Molybdenum Co., Ltd. and Zijin Mining Group Co., Ltd. rose over 5%.
On July 13th, rare earth leader China Rare Earth Group Co., Ltd. announced an expected net profit attributable to shareholders of 370 million to 430 million yuan for the first half of 2026, representing a year-on-year increase of 410.35% to 493.11%. The company stated that changes in the supply-demand dynamics of the rare earth industry in H1 2026 led to a year-on-year price increase for major rare earth products. By innovating its integrated business model, coordinating raw material procurement for separation plants and overall product market sales, and analyzing market supply-demand shifts to dynamically adjust its product output structure, the company achieved a significant improvement in the operating value of its core rare earth business.
In the aluminum sector, listed companies collectively reported positive news for the first half of this year. Tianshan Aluminum Group and Henan Zhongfu Industrial, which were among the first to disclose earnings forecasts, both reported doubled net profit growth. Subsequently, leading companies like Shenhuo Coal & Power Co., Ltd. have successively released impressive earnings forecasts. Analysts suggest that a combination of factors—including a supply cap locked in by capacity limits, sustained strong demand from the new energy sector, and steadily declining raw material costs—has, to some extent, allowed the aluminum industry to break free from its traditional cyclical pattern.
Fundamentally, within the 60 constituent stocks of the index tracked by Huabao Nonferrous Metals ETF (159876), 27 listed companies had disclosed their H1 2026 earnings forecasts as of July 14th. All 27 of these constituents forecast both profitability and growth. Zijin Mining Group Co., Ltd. currently leads with a projected maximum net profit attributable to shareholders of 39.1 billion yuan, followed by China Molybdenum Co., Ltd. and Aluminum Corporation of China Limited (Chalco) with forecasted maximums of 16.5 billion yuan and 12.2 billion yuan, respectively.
Huatai Securities pointed out that the current relative valuation of the nonferrous metals sector is at a historical low. CITIC Securities believes that nonferrous metals, as one of the sectors hardest hit previously, are poised for a rebound. Coupled with mid-year earnings expectations, the duration and intensity of this rebound could potentially exceed previous cycles.
Nonferrous Metals Momentum Arrives, "Super Cycle" Appears Inevitable
Huabao Nonferrous Metals ETF (159876) and its feeder funds (Class A: 017140; Class C: 017141) track an index that comprehensively covers industries including copper, aluminum, gold, rare earths, lithium, tungsten, molybdenum, and tin. This broad coverage allows for better capture of the sector's overall beta performance. Additionally, this ETF is eligible for margin trading and serves as an efficient tool for a one-click allocation to the nonferrous metals sector.
As of July 3rd, the latest size of Huabao Nonferrous Metals ETF (159876) was 1.564 billion yuan, making it the largest ETF among the three products tracking the same target index in the market.
Note: The previous intraday abbreviation for Huabao Nonferrous Metals ETF (159876) was "Nonferrous Metals Leaders ETF."
ETF fee information: Subscription and redemption agents may charge a commission not exceeding 0.5% when investors subscribe for or redeem fund shares. Intraday trading fees are subject to the rates actually charged by securities firms. The ETF does not charge a sales service fee.
Risk Disclosure: Huabao Nonferrous Metals ETF passively tracks the CSI Nonferrous Metals Index. The index base date is December 31, 2013, and its release date is July 13, 2015. The index constituents are adjusted according to its compilation rules. The index's historical back-tested performance does not indicate its future performance. The constituent stocks mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading intentions of any fund managed by the fund manager. The fund manager assesses this fund's risk level as R3-Medium Risk, suitable for Balanced (C3) and higher risk-tolerance investors. The appropriateness matching opinion is subject to the sales institution. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or predictions herein do not constitute investment advice of any kind to the reader, nor shall they be held liable for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not indicate its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest with caution.
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