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<Research>HSBC Global Research Downgrades JIANGXI COPPER to Hold; CMOC & ZIJIN MINING Preferred w/ TP Raise
Recommend 37 Positive 40 Negative 28 |
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HSBC Global Research commented in a reprot that China's copper stocks have performed well over the year, with year-to-date share prices hiking 53%, compared to a rise of 25% for their international peers. The broker believed that this is mainly due to supply chain disruptions driving up copper prices and continued strong demand, and expected that the tight supply situation will continue, with potential smelter production reductions and disruptions to new mining likely to drive up copper prices. HSBC preferred the solid production growth prospects of CMOC (03993.HK) and the gold business exposure of ZIJIN MINING (02899.HK). The broker maintained their Buy rating, with target prices lifted to $9.2 and $20.2 respectively. The report pointed out that the copper concentrate supply has remained tight, while copper concentrate treatment and refining costs continued to fall. If the situation persists, HSBC expects that China's smelters will announce production cuts in 2H24. Considering the declining trend of copper concentrate treatment and refining costs, the broker downgraded JIANGXI COPPER (00358.HK) from Buy to Hold, but slightly added its H-shares target price to $14.7. HSBC also maintained MMG (01208.HK)'s Buy rating, citing its highest sensitivity to copper prices among copper stocks, with its target price hiked from $2.6 to $4.1. AAStocks Financial News |
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