Jiangxi Copper Company (JIAXF – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Eunyoung Lee from DBS maintained a Buy rating on the stock and has a HK$16.00 price target.
Eunyoung Lee’s rating is based on the strategic expansion and increased production capabilities of Jiangxi Copper Company. The company is not only the premier refined copper producer in China but has also broadened its business scope by venturing into gold production and acquiring significant stakes in other enterprises. This diversification and expansion are expected to contribute positively to the company’s long-term growth potential. Moreover, Jiangxi Copper has shown a strong production profile, with substantial outputs of copper cathode, copper processing products, and gold, emphasizing its robust operational capacity.
Additionally, Eunyoung Lee anticipates that the growth in sales volume and the predicted rise in metal prices will offset the potential decline in copper treatment charges in the upcoming year. The company’s proactive management has set forth plans to increase production of its main products, which aligns with the expected uptick in commodity prices, thereby mitigating risks associated with lower treatment charges. Furthermore, the company’s investment in downstream projects is designed to bolster its position in the copper processing business, with the potential for earnings growth in the medium to long term. These factors collectively underpin the Buy rating assigned by Lee.
Lee covers the Basic Materials sector, focusing on stocks such as Freeport-McMoRan, China Molybdenum Co, and Jiangxi Copper Company. According to TipRanks, Lee has an average return of 18.2% and a 100.00% success rate on recommended stocks.
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Jiangxi Copper Company (JIAXF) Company Description:
Jiangxi Copper Co. Ltd. engages in copper mining and dressing; smelting and processing; extraction, and processing of precious and scattered metal, and sulphuric chemistry. Its products include copper cathode, gold, silver, sulphuric acid, copper rod, copper tube, copper foil, selenium, tellurium, rhenium, and bismuth. The company was founded on January 24, 1997 and is headquartered in Guixi, China.
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