Goldman Sachs: Maintaining Luoyang Molybdenum Industry's (03993) “Buy” Rating Target Price Raised to HK$8.5

The Zhitong Finance App learned that Goldman Sachs released a research report stating that it maintained the Luoyang Molybdenum Industry (03993) “buy” rating, raised the Group's recurring profit forecast for 2024-26 by 6% to 10%, and raised the target price from HK$8 to HK$8.5.

The bank said that due to the continued expansion of mining in the Congo, the Group's copper and cobalt production is expected to grow at an average CAGR of 25% from 2023 to 26. The company's net profit for the first half of the year was RMB 5.42 billion, with a profit of RMB 0.251 per share, in line with earlier profit forecasts. The results were higher than expected, mainly due to Kisanfu's increased production and better-than-expected trading business, but tax increases offset part of the impact.