The non-ferrous metals sector, which has seen strong earnings but lagging market performance, may be poised for a catch-up today (May 26th). The Huabao Non-ferrous Metals ETF (159876), which aggregates leading companies in the industry, saw its intraday price rise by up to 1.43% against the broader market trend. It is currently up 0.57%, with real-time turnover exceeding 51 million yuan in less than half a day, indicating active trading.
Among its heavyweight constituents,
On the macroeconomic front, expectations for U.S.-Iran talks have warmed, leading to a sharp drop in oil prices and strength in global equities, with gold, silver, and copper prices rising. A post on May 25th indicated that negotiations with Iran are progressing well, emphasizing the goal of reaching a "great and meaningful agreement" or no deal at all. The U.S. and Iran have reportedly reached an understanding regarding Iran's frozen financial assets. On Monday, futures for the three major U.S. stock indices extended their gains, European markets rallied overnight, and the MSCI World Index closed at a record high. Spot silver jumped 3.5%. Copper futures rose nearly 2% at one point, while WTI crude oil fell over 6%.
On the industry front, Guinea, the world's largest bauxite producer, plans to introduce export control measures next month. CITIC Securities points out that the gradual implementation of Guinea's bauxite quota policy is likely to support the stabilization and recovery of bauxite and alumina prices. It is estimated that bauxite prices may return to above $70 per ton, with the aluminum industry's medium to long-term supply-demand fundamentals remaining robust, presenting favorable investment opportunities.
Regarding earnings, for the first quarter of 2026, among the 60 constituent stocks of the Huabao Non-ferrous Metals ETF (159876), 59 reported profits. Approximately 80% of the companies achieved double-digit year-on-year growth in net profit attributable to parent company shareholders, with 22 companies seeing triple-digit surges. Western Region Gold and Tianqi Lithium reported staggering year-on-year increases of 21 times and 17 times, respectively.
Galaxy Securities believes that the sustained strong rise in metal prices has accelerated the earnings growth of the A-share non-ferrous metals industry in the third quarter of 2025 and the first quarter of 2026. Furthermore, the sector's overall valuation remains at historically low levels. Although geopolitical conflicts in the Middle East caused a pullback in non-ferrous metal prices from highs, since mid-April, as market sentiment regarding Middle East events has gradually digested, U.S.-Iran ceasefire consultations have progressed, and uncertainties around economic and liquidity expectations have diminished, market risk appetite has continued to recover. This is expected to support a return of non-ferrous metal prices to an upward trajectory, providing room for further earnings growth in the sector.
[Non-Ferrous Metals Tailwinds Emerge, "Super Cycle" Appears Unstoppable] The Huabao Non-ferrous Metals ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) track an index that comprehensively covers sectors including copper, aluminum, gold, rare earths, and lithium. It spans different phases of the economic cycle, such as precious metals (for hedging), strategic metals (for growth), and industrial metals (for recovery). This broad coverage allows for better capture of the sector's beta movements. Additionally, this ETF is a margin trading and securities lending target, serving as an efficient tool for a one-stop allocation to the non-ferrous metals sector.
As of the end of April, the Huabao Non-ferrous Metals ETF (159876) had a latest size of 1.865 billion yuan, making it the largest ETF among the three products in the market tracking the same underlying index.
Note: The previous on-market abbreviation for the Huabao Non-ferrous Metals ETF (159876) was the Non-ferrous Metals Leaders ETF. Risk Disclosure: The Huabao Non-ferrous Metals ETF passively tracks the CSI Non-ferrous Metals Index. The base date for this index is December 31, 2013, and it was launched on July 13, 2015. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its back-tested historical performance is not indicative of its future results. 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动向 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 above investors. Please refer to the sales institution for suitability matching opinions. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to readers, and no responsibility is assumed 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 guarantee its future results. The performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Invest in funds with caution.
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