Huatai Securities research: the recent deep selloff in A‑share nonferrous metals
leaders primarily reflect valuation compression, not earnings damage. As of
July 6, iFind consensus 2026E EPS for related companies has been revised up over
the past ~180 days, indicating intact earnings outlooks. As of July 3, China
Securities gold, aluminum and copper subindex PE‑TTM sit at the 11.7%/5.1%/42.1%
percentiles since 2020; relative to All‑A PE‑TTM they are at the 0.2%/0.0%/0.1%
percentiles. With easing US‑Iran tensions and marginally firmer risk appetite,
Huatai says commodity fundamentals remain strong while valuations are at
historic lows; downside for A‑share metals leaders may be limited and upside
optionality notable — a high‑reward trade window relative to offshore pricing.
