CITIC Securities released a research report stating that maintaining the Molybdenum and Molybdenum Industry (03993) “buy” rating, the net profit forecast for 2024 to 2026 was $11.97 billion, $11.483 billion, and $15.924 billion, while earnings per share were forecasted at $0.55, 0.67 and 0.74. The target price for H shares was raised from HK$7.5 to HK$9.
According to the report, the company achieved a high year-on-year increase in copper and cobalt production and performance in the first quarter of 2024, driven by the continuous overproduction of TFM hybrid mining and KFM projects. As the company's production and sales resume the level of normalization after the expansion phase, the bank is optimistic about the company's potential to further exceed expectations and reduce costs in the short term, and the release of the company's sustainable high growth potential in the medium to long term. The combination of high elasticity, high growth, and strong dividends will reinforce the company's preferred allocation value during the copper price boom cycle.