Goldman Sachs rose its target price for Luoyang Molybdenum to HK $19, expected to benefit from higher copper prices and production

October 27th news, Goldman Sachs released a research report that Luoyang Molybdenum Industry (03993.HK) according to Chinese accounting standards, the third quarter net profit increased by 96% to 5.61 billion yuan, the first three quarters of recurring net profit of 14.10 billion yuan, better than expected, and is equivalent to the bank's annual forecast of about 75% and about 82% of market expectations. In response to the performance of the first three quarters and the bank's latest forecast for copper prices, the bank raised the recurring profit forecast of Lomo 2025 to 2027 by 8% to 32%, and raised the copper production forecast from 2028 to 2030 by 30% to 1 million tons. It is expected that the rise in copper prices and the recovery in cobalt prices will promote the compound annual growth rate of Lomo's recurring profit from 2025 to 2026 to 38%. Coupled with the expectation of 1 million tons of copper production in 2028 and the commissioning of the Cangrejos gold and copper project, it will drive the profit growth from 2028 to 2029. Goldman Sachs maintained its "buy" rating on Lomo, with the target price rising from HK $10.8 to HK $19.