On the final trading day of March (March 31), the nonferrous metals sector extended its gains for a third consecutive session. The Huabao Nonferrous Metals ETF (159876), which aggregates leading companies in the nonferrous metals industry, recovered from an intraday dip, with its price currently up 0.86%. The ETF recorded a real-time net subscription of 4.8 million units.
Among its constituent stocks, Jintian Copper and Hunan Silver led the gains, rising over 4%. China Rare Earth Resources, Western Region Gold, Xingye Silver & Tin, and Hunan Gold advanced more than 3%. Silver Corporation and Zhongjin Gold also posted increases.
On the industry front, the Zimbabwean government announced in late February an indefinite suspension of all exports of raw ore and lithium concentrate. The ban, now nearly a month old with no signs of being lifted, is expected to last longer than initially anticipated by the market. The escalating situation has caused cash flow crises for small and medium-sized mining companies, providing support for rising lithium prices. Industrial Securities believes lithium prices may continue to experience strong fluctuations in the near term.
At the individual stock level, Ganfeng Lithium disclosed its annual report on March 30. The company reported revenue of 23.082 billion yuan for 2025, a year-on-year increase of 22.08%. Net profit attributable to shareholders was 1.613 billion yuan, turning around from a loss of 2.074 billion yuan in the same period last year. Basic earnings per share stood at 0.8 yuan. The company plans to distribute a cash dividend of 1.5 yuan per 10 shares (before tax). During the reporting period, the global lithium salt industry underwent a significant adjustment. Influenced by shifts in supply-demand dynamics and volatility in the lithium product market, lithium prices hit new lows after a sustained decline in the first half of the year before rebounding strongly. Consequently, the company's operating performance improved compared to the previous year.
Previously, lithium producers such as Tianqi Lithium and Shenghua Lithium had also released their 2025 annual reports ahead of peers. Tianqi Lithium achieved a reversal in its fortunes, reporting revenue of 10.346 billion yuan and a net profit attributable to shareholders of 463 million yuan for 2025, successfully turning a profit after a loss of 7.905 billion yuan in 2024. In contrast, although Shenghua Lithium remained in a loss-making position for 2025, its losses narrowed compared to 2024. Furthermore, its fourth-quarter revenue surged to 1.970 billion yuan, a quarter-on-quarter increase of 33%, indicating a strong recovery trend in its business.
As of March 30, 24 constituent stocks of the Huabao Nonferrous Metals ETF (159876) had released their 2025 annual reports. Among them, 22 listed nonferrous metals companies reported profits, with 13 achieving double-digit year-on-year growth in net profit attributable to shareholders. Ganfeng Lithium, China Rare Earth Resources, Guocheng Mining, and Tianqi Lithium all saw their net profit attributable to shareholders grow by over 100% year-on-year.
Looking ahead for the nonferrous metals sector, Shenwan Hongyuan Securities pointed out that, driven by long-term trends of deglobalization, the investment thesis for precious metals, bulk commodities, and strategic minor metals has entered a new paradigm. The nonferrous metals sector is expected to continue its upward trajectory, with short-term volatility presenting favorable allocation opportunities within the year. Huatai Securities suggested that the recovery opportunities following the sector's overall oversold condition deserve active attention.
The Huabao Nonferrous 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, encompassing precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery), allowing for better capture of the sector's beta movements. Additionally, this ETF is a margin trading security, making it an efficient tool for gaining exposure to the nonferrous metals sector.
As of the end of February, the Huabao Nonferrous Metals ETF (159876) had a net asset value of 2.427 billion yuan, with an average daily trading volume exceeding 100 million yuan over the past month. Among the three ETF products tracking the same underlying index in the market, it ranks first in both size and liquidity.
Note: The Huabao Nonferrous Metals ETF (159876) was previously known as the Leading Nonferrous Metals ETF. Reminder: Recent market volatility may be significant. Short-term price movements are not indicative of future performance. Investors are advised to make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.
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