Rare earth guide price increases for two months, plate for investment opportunities. Affected by resource tax on ganzhou rare earth industry association may increase of ionic type rare-earth ore guide prices, guiding price increase again in June. In this part of the ore price rise is bigger, the yttrium europium rich ore raised 20000 yuan/ton to 20000 yuan/ton, longnan high yttrium ore raised 10000 yuan/ton to 200000 yuan/ton, AnYuanGao yttrium ore also raised 20000 yuan/ton to 190000 yuan/ton. Tax rises sharply increased production costs, at the same time, the downstream demand recovery and low social inventory, both for the second half of the price picks up, and rare earth plate weak this year, the overall increase is limited, in the second half of the rare earth sector or investment opportunities. We suggest that the focus on heavy rare earths in the underlying guang sheng color 600259 (non-public + employee-owned + prices rebounded), xiamen tungsten industry 600549 (new management, new journey), and sheng and resources 600392 (chinalco rare earth platform + elastic best).
Steady growth into the validation period, the downstream demand recovery is obvious. Countries launched large-scale steady growth since the second quarter of fiscal policy, bringing in the new round of railways, infrastructure investment, and the state council sent the inspectorate to implement the party central committee and steady growth, promoting the reform, restructuring, livelihood introduced a series of major policies and measures of the implementation of key supervision, intensify with the steady growth of accountability. We believe that the policy is steady growth for validation stage, economic data in the second quarter of the economy and in June will be released next month, and the economic recovery in the probability of large, downstream demand is expected to usher in the reversal of the marginal improvement is expected to be on the price elasticity of demand is higher. El nino will be black swans at the same time, for some varieties of metal supply is expected to form a larger impact, tin, nickel, lithium metal prices constitute a strong support.
Downstream demand for validation period, to maintain recommended rating. Although plate back sharply last week, but do not change the judgment of the prior to the second half of the colored, liquidity is still loose, the downstream demand for validation period, we maintain the recommended rating. Suggest two dimensions to choose investment targets: (1) the suggestion layout elasticity larger mark, such as rare earth guang sheng in the plate color, xiamen tungsten and sheng and resources; Constant state shares of gold plate (gold elastic maximum); Chi macro zinc of lead and zinc plate germanium (benefit from lead and zinc prices rebound); (2) advice with 臵 valuation which are the subject of obvious advantages, such as copper piece of jiangxi copper (industry leading, reform of state-owned enterprises). At the same time, we suggest that the recent focus on state-owned enterprises reform targets, such as at the stake (area along the way, the state-owned enterprises reform, continuous positive downstream orders), hunan gold (local state-owned enterprises, gold integration of hunan province), shandong gold reform of state-owned enterprises in shandong province (first), etc. Emphatically recommended last week mark: 002428 l yunnan germanium industry: (1) the company is a domestic germanium industry leader, resource, technology and product advantage is obvious; (2) the company offering investment projects completed and put into operation in 2014, the year into the earnings release period; (3) the military certification acceleration, will open the military market space for the company; (4) the company's future extension expected to increase in the downstream processing field layout.