According to the Wisdom Wealth APP, several colored A-share listed companies have released positive half-yearly reports. Guocheng Mining (000688.SZ) is expected to have a net income increase of more than 10 times in the first half of the year, while Zijin Mining (601899.SH) has a net income of about 15 billion yuan, making it the highest in the industrial metals sector.

This year, international silver prices have risen by more than 20%. Domestic silver prices have risen by 26.24%. In addition to the soaring precious metals, industrial metals have also recorded varying degrees of growth. In various sub-sectors, industrial metal performance showed growth, especially copper and aluminum.

In terms of growth rate, Guocheng Mining has the highest growth rate, with the company predicting a net profit of about 40.3-49.5 million yuan, an increase of about 1040.42%-1300.76% from the same period last year.

In terms of net income, Zijin Mining has the highest net income. The company's performance forecast shows that the gold production in the first half of this year is about 35.4 tons, a year-on-year increase of 9.6%; the copper production is about 0.518 million tons, a year-on-year increase of 5.3%.

In addition, Jiangsu Alcha Aluminum Group's net income attributable to shareholders is expected to increase by 936%-1246% year-on-year, Aluminum Corporation of China's net income attributable to shareholders is expected to increase by 90%-114% year-on-year, Yunnan Luoping Zinc&Electricity's net income is expected to increase by 101.58%-102.63% year-on-year.

Against the background of rising prices of precious metals and nonferrous metals, the secondary market has also performed well. The precious metals sector led the way, with a cumulative increase of 41.59% since the beginning of the year, while the industrial metals sector has a cumulative increase of 20.53% since the beginning of the year.

Among the individual stocks in the industrial metal sector, 7 companies have risen by more than 30% since the beginning of the year, with the share prices of North Copper, Inner Mongolia Xingye Silver&Tin Mining, and Zijin Mining rising by 72.8%, 64.25%, and 49.92% respectively since the beginning of the year.

According to a research report by China Securities Co., Ltd., precious metals and restricted supply of non-ferrous commodities have performed well in the first half of the year, mainly reflecting three core logics: super-dollar currency, credit restructuring, and the beginning of a US interest rate cut cycle, as well as global geopolitical tensions. Supply constraints, double-carbon-related policy constraints and prevailing resource protectionism, and inadequate capital expenditures have led to supply rigidity constraints. Demand outbreaks, the Fourth Industrial Revolution is leading to a significant increase in demand for related metals, especially small metals, which are currently experiencing a high demand period.

Looking ahead to the second half of the year, although recent weak US data has raised concerns about a slowdown in trade, even if the US economy weakens, its impact on the direction of global new quality production is limited, and the three core logics mentioned above have not changed. Precious metals and non-ferrous commodities are still expected to rise in the long term.

Related concept stocks:

CMOC Group Limited (03993): one of the world's largest tungsten producers, one of the world's top seven molybdenum producers, and a leading copper producer. The company's Congo (Kinshasa) TFM Mixed Ore Central Project has completed short process material feeding trials, and the project is expected to begin production in 2023 and further release TFM copper and cobalt production capacity.

Zijin Mining Group Co., Ltd. (02899): the company's main products include mineral gold, smelting processing and trading gold, mineral silver, mineral copper, mineral zinc, smelting zinc, iron concentrate, etc.; it is one of the enterprises with the most reserves of gold, copper, and zinc resources.

Jiangxi Copper Co., Ltd. (00358): a major domestic copper, gold, and silver and sulfide chemical production enterprise; its main business is the selection, smelting, and processing of copper and gold, the extraction and processing of precious and rare metals, the smelting, rolling, and deep processing of non-ferrous metals and related by-products, as well as the trade of related products.

Chinfmining (01258): The company is a global leading copper producer, focusing on the development and refining of copper-cobalt resources. It is the largest and most diversified company in China to go out to copper smelting. At the same time, the company is also a pioneer in copper-cobalt development in Africa and the first concept stock to invest in the copper industry in Zambia and the first one to land on the Hong Kong stock market. According to the latest announcement, as of the end of the first quarter of 2023, the company has produced approximately 35,882 tons of cathode copper, approximately 90,375 tons of crude and anode copper, approximately 233,656 tons of sulfuric acid, approximately 373 tons of cobalt-containing cobalt hydroxide, and approximately 3,886 tons of liquid sulfur dioxide.

Aluminum Corporation of China (02600): The company is the leading enterprise in China's aluminum industry and the world's largest supplier of alumina, electrolytic aluminum, fine alumina, high-purity aluminum, and aluminum anode production. The company's alumina production capacity ranks first in the world, and its high-purity aluminum production capacity ranks first in the world, while its primary aluminum production capacity ranks second in the world.