Galaxy Securities: Resilience highlights 2026Q2A shares, and the performance growth rate of the non-ferrous metals industry remains high

The Zhitong Finance App learned that China Galaxy Securities released a research report saying that resilience is prominent, and the performance growth rate of the 2026Q2A share nonferrous metals industry has maintained a high growth rate. Market optimism about macroeconomic expectations and liquidity in early 2026, as well as increased competition for key strategic metals and supply chain reshaping by major countries, pushed nonferrous metal commodity prices and the A-share nonferrous metals sector to continue to rise. However, the Middle East conflict escalated in March, and rising oil prices boosted inflation. Market concerns about whether the Federal Reserve's loose monetary policy could continue, and increased uncertainty about the future economy caused non-ferrous metal prices to adjust at a high level. However, the long-term rise in non-ferrous metal prices throughout 2025 still caused the A-share nonferrous metals industry's performance in the first half of 2026 to rise sharply year-on-year due to the base effect.

The main views of China Galaxy Securities are as follows:

Profitability continued to improve. The overall ROE level of the 2026Q2A non-ferrous metals industry rose to a record high, mainly due to an increase in the industry's overall sales margin: the overall ROE of the A-share nonferrous metals industry rose from 4.76% in 2026Q1 to 5.00% in 2026Q2, up 0.24 percentage points from month to month. Among them, the overall sales profit margin of the A-share nonferrous metals industry increased from 8.04% to 8.27%, affecting the increase in ROE by 0.14 percentage points, which is the core factor for the increase in the overall ROE level of the non-ferrous metals industry in 2026Q2. Furthermore, the overall equity multiplier for the A-share nonferrous metals industry rose from 2.03 in 2026Q1 to 2.05 in 2026Q2, increasing the ROE level by 0.05 percentage points. Meanwhile, the overall asset turnover ratio of the A-share nonferrous metals industry rose from 0.291 in the first quarter of 2026 to 0.295 in the second quarter of 2026, raising the ROE level by 0.05 percentage points. The overall gross margin of the 2026Q2A share nonferrous metals industry recorded 18.10%, up 1.35 percentage points from 2026Q1, which was the main reason for the increase in sales profit margin of the A-share nonferrous metals industry in the second quarter of 2026.

The overall operating cash flow situation of the 2026Q2A share nonferrous metals industry continued to improve: the overall net operating cash flow of the A-share nonferrous metals industry in 2026Q2 increased 11.58% year-on-year compared to 2025Q2 and 23.19% month-on-month compared to 2026Q1. Meanwhile, the overall operating cash flow of the A-share nonferrous metals industry accounted for 7.88% of operating income in 2026Q2, an increase of 1.05 percentage points over the previous month. The operating cash flow of the 2026Q2 industry increased year-on-year compared to 2025Q2, and the overall net operating cash flow of the A-share nonferrous metals industry achieved year-on-year growth for two consecutive quarters after 2025Q4, indicating that the cash situation of non-ferrous metals companies continued to improve.

Risk Alerts

1) The risk that domestic macroeconomic recovery will fall short of expectations; 2) the risk that the Federal Reserve's monetary policy will be tightened and interest rate hikes will exceed expectations; 3) the risk of a sharp decline in non-ferrous metal commodity prices; 4) the risk that the Middle East geopolitical conflict will continue to ferment and evolve beyond market expectations.