CITIC Construction Investment: Benefiting from military industry replenishment/storage for safety, continue to be optimistic about strategic metal investment opportunities.

CICC research report pointed out that under the "disorder era", global resource supply security is facing threats, prompting countries and various production sectors to increase suitable inventories to deal with potential supply interruption risks, with metals used in the defense industry being a top priority. Since the outbreak of the US-Iran conflict, a large amount of weapons and ammunition has been consumed, thus the replenishment of weapons and ammunition by the US and Iran and other countries' stocking based on security needs will inevitably drive significant growth in corresponding strategic metal demand. The defense industry sector is not very sensitive to prices, and prices are expected to benefit fully.