Core Viewpoint - Goldman Sachs reports that Luoyang Molybdenum (3993.HK) achieved a 96% year-on-year increase in net profit for Q3, reaching 5.61 billion RMB, with recurring net profit for the first three quarters at 14.1 billion RMB, exceeding expectations [1] Financial Performance - The recurring net profit for the first three quarters is approximately 75% of Goldman Sachs' full-year forecast and about 82% of market expectations [1] - The company’s Q3 net profit growth is attributed to rising copper prices and a recovery in cobalt prices [1] Earnings Forecast - Goldman Sachs has raised its recurring profit forecast for Luoyang Molybdenum for 2025 to 2027 by 8% to 32% [1] - The copper production forecast for 2028 to 2030 has been increased by 30% to 1 million tons [1] Growth Drivers - The expected average compound annual growth rate (CAGR) for recurring profits from 2025 to 2026 is projected to be 38% due to rising copper prices and cobalt price recovery [1] - The anticipated production of 1 million tons of copper in 2028 and the launch of the Cangrejos gold-copper project are expected to drive profit growth from 2028 to 2029 [1] Investment Rating - Goldman Sachs maintains a "Buy" rating for Luoyang Molybdenum, raising the target price from 10.8 HKD to 19 HKD [1]

Core Viewpoint - UBS report indicates that Luoyang Molybdenum's net profit attributable to shareholders reached 14.3 billion yuan in the first three quarters of this year, representing a year-on-year growth of 73%, already achieving 87% of market's full-year expectations and 80% of UBS's forecast [1] Financial Performance - In Q3 alone, the net profit was 5.6 billion yuan, showing a year-on-year increase of 96% and a quarter-on-quarter increase of 19%, exceeding market expectations by approximately 1 billion yuan [1] - Cobalt sales in Q3 reached 5,000 tons, significantly higher than market expectations and up from 2,200 tons in Q2 [1] - The effective tax rate dropped from 37% in Q2 to 27% in Q3, indicating a reduction in tax expenses by 900 million yuan compared to the previous quarter [1] Market Reaction - UBS anticipates a positive response from investors due to Luoyang Molybdenum's performance exceeding expectations [1] - The target price is set at 20.5 HKD with a "Buy" rating [1]

Core Viewpoint - Luoyang Molybdenum (03993.HK) opened nearly 5% higher and is currently up 4.94%, trading at 17 HKD with a transaction volume of 36.83 million HKD [1] Group 1 - The stock price of Luoyang Molybdenum has shown a significant increase, indicating positive market sentiment [1] - The trading volume of 36.83 million HKD reflects active investor interest in the stock [1] - The current price movement suggests potential bullish trends for the company in the short term [1]

Core Viewpoint - Luoyang Molybdenum Co., Ltd. reported strong financial performance for the first three quarters, achieving record high net profit and revenue growth, indicating robust operational efficiency and market demand [1] Financial Performance - For the first three quarters, the company achieved operating revenue of 145.485 billion yuan and a net profit attributable to shareholders of 14.280 billion yuan, representing a year-on-year increase of 72.61% [1] - The third quarter alone saw a net profit of 5.608 billion yuan, marking a significant year-on-year growth of 96.40% [1] - Revenue from the mining segment reached 56.594 billion yuan, accounting for nearly 40% of total revenue, with the copper segment contributing 38.618 billion yuan, which is over 68% of the mining revenue [1] Investment Projects - The company’s board approved an investment of 1.084 billion USD for the construction of the KFM Phase II project in the Democratic Republic of the Congo, with a construction period of 2 years and expected completion in 2027 [1] - The KFM Phase II project is anticipated to add a raw ore processing capacity of 7.26 million tons per year, with an expected average annual production of 100,000 tons of copper metal upon reaching full capacity [1]

Core Viewpoint - Luoyang Molybdenum's strong financial performance in the first three quarters of the year, with significant revenue and profit growth, indicates a robust operational capacity and strategic investments in expansion projects [1] Financial Performance - The company reported a revenue of 145.485 billion yuan for the first three quarters, with a net profit attributable to shareholders of 14.280 billion yuan, marking a year-on-year increase of 72.61% [1] - The third quarter alone saw a profit of 5.608 billion yuan, reflecting a substantial year-on-year growth of 96.40% [1] - Revenue from the mining segment reached 56.594 billion yuan, accounting for nearly 40% of total revenue, with the copper segment contributing 38.618 billion yuan, representing over 68% of the mining revenue [1] Investment and Expansion - The company's board approved an investment of 1.084 billion USD for the construction of the KFM Phase II project in the Democratic Republic of the Congo [1] - The project is expected to take two years to complete, with a target operational date in 2027, and aims to increase the ore processing capacity by 7.26 million tons per year, adding an average of 100,000 tons of copper metal annually upon reaching full capacity [1]

Investment Rating - The report maintains a "Buy" rating for CMOC Group (3993.HK) with a 12-month price target of HK$19.00, representing an upside of 17.3% from the current price of HK$16.20 [1][2]. Core Insights - CMOC reported a net profit of Rmb5.61 billion for 3Q25, reflecting a year-on-year increase of 96%, with earnings per share (EPS) rising to Rmb0.262, up 98% year-on-year [1]. - The recurring profit growth is expected to continue, driven by rising copper prices and volume growth, with a projected compound annual growth rate (CAGR) of 38% for 2025-26E [2]. - The company has revised its earnings estimates upward by 8-32% for 2025-27E, reflecting a positive outlook on copper prices and the impact of new cobalt export quotas from the DRC [2]. Financial Performance - For the first nine months of 2025, CMOC's recurring net profit reached Rmb14.1 billion, accounting for 75% of the full-year estimate [1]. - The company expects to achieve a copper output target of 1 million tons by 2028, supported by the Cangrejos gold/copper project, which is anticipated to further enhance earnings growth [2][29]. - The report indicates that CMOC's current H-share price implies a copper price of US$8,500/t, which is lower than the spot price of US$10,900/t, suggesting potential for price appreciation if targets are met [2]. Production and Operations - CMOC's copper output in the DRC reached 543kt in 9M25, a 14% increase year-on-year, while cobalt output was 88kt, up 3.8% year-on-year [26]. - The DRC government has introduced a cobalt export quota system, allowing CMOC to export 6.5kt for the remainder of 2025 and 31.2kt annually for 2026-27E, which is expected to improve gross profit for cobalt significantly despite lower sales volume [27]. - The acquisition of Lumina Gold for C$581 million is expected to enhance CMOC's net profit by 13.1% by 2030, with significant gold and copper reserves identified at the Cangrejos project [28]. Valuation Metrics - The report provides updated revenue and earnings estimates, with total revenue projected at Rmb213,028.7 million for 2024 and Rmb192,354.5 million for 2025E [6]. - The price-to-earnings (P/E) ratio is forecasted to be 9.2 for 2024 and 15.5 for 2025E, while the price-to-book (P/B) ratio is expected to be 1.8 for 2024 and 3.7 for 2025E [12]. - The report indicates a free cash flow yield of 19.6% for 2024, which is expected to decrease to 6.6% in subsequent years [12].

Summary of CMOC Group Ltd Conference Call Company Overview - **Company**: CMOC Group Ltd (3993.HK) - **Industry**: Greater China Materials - **Market Cap**: US$49.825 billion - **Stock Rating**: Overweight - **Price Target**: HK$18.60, representing a 15% upside from the current price of HK$16.20 Key Financial Results - **3Q25 Performance**: - Net profit of Rmb5.8 billion, up 99% YoY and 19% QoQ, exceeding market expectations [1][2] - 9M25 net profit reached Rmb14.3 billion, a 70% increase YoY [1] - **Production and Sales Volume**: - Copper production was 190kt, a 17% increase YoY and 4% QoQ [7] - Sales volume for copper was 198kt, up 24% YoY but down 1% QoQ [7] - Cobalt sales volume decreased to 4.8kt from 22kt in 2Q25, with a gross profit of approximately Rmb383 million [7] Strategic Developments - **KFM Phase 2 Construction**: - Announced a construction plan expected to take 2 years, targeting production commencement in 2027, with an additional 100kt/yr copper production capacity at full capacity [2] - Total capital expenditure for this project is estimated at US$1.084 billion [2] Tax and Financial Metrics - **Effective Tax Rate**: - Reduced to 27.5% in 3Q25 from 37% in 2Q25 and 42.8% in 3Q24, contributing positively to net profit [7] - **Financial Expenses**: - Decreased significantly to Rmb50 million in 3Q25 from Rmb444 million in 2Q25 and Rmb816 million in 3Q24, likely due to foreign exchange gains [7] Guidance and Future Outlook - **EPS Estimates**: - Projected EPS for FY25 is Rmb0.78, with further increases expected in subsequent years [4] - **Revenue Growth**: - Assumed annual revenue growth of 2% beyond the explicit forecast period [8] Risks and Considerations - **Upside Risks**: - Stronger-than-expected metal prices in 2025 and copper output exceeding company guidance [11] - **Downside Risks**: - Potential decline in cobalt prices due to weak demand from industrial sectors and domestic electric vehicles [11] Conclusion - CMOC Group Ltd has demonstrated strong financial performance in 3Q25, with significant year-over-year growth in net profit and production volumes. The company's strategic initiatives, including the KFM Phase 2 project, position it for future growth, while a lower effective tax rate and reduced financial expenses enhance profitability. However, potential risks related to metal prices and demand fluctuations should be monitored closely.

Major Events - Cambridge Technology (06166) sets the offer price for H-shares at HKD 68.88 per share [1] - Sany Heavy Industry (06031) sets the offer price for H-shares at HKD 21.30 per share [1] - Hengrui Medicine (01276) receives approval for the launch of HR20031 tablets [1] - Shanghai Pharmaceuticals (02607) subsidiary becomes the holder of the marketing authorization for amisulpride orally disintegrating tablets [1] - Fosun Pharma (02196) receives registration approval for Delarobert tablets and Delarobert granules [1] - WuXi AppTec (02359) plans to sell 100% equity of Kande Hongyi and Jinshi Medicine [1] - Hengfu Holdings (00643) receives a buyout offer at a discount of approximately 79.20% and will resume trading on October 27 [1] Operating Performance - Chifeng Jilong Gold Mining (06693) reports Q3 net profit of CNY 951 million, a year-on-year increase of 140.98% [1] - WuXi AppTec (02359) reports a net profit of CNY 12.076 billion for the first three quarters, up 84.84% year-on-year [1] - Huaxin Cement (06655) reports a net profit of CNY 2.004 billion for the first three quarters, a year-on-year increase of 76.01% [1] - Luoyang Molybdenum (03993) reports a net profit of approximately CNY 14.28 billion for the first three quarters, up 72.61% year-on-year [1] - Goldwind Technology (02208) reports a net profit of approximately CNY 2.584 billion for the first three quarters, a year-on-year increase of 44.21% [1] - CITIC Securities (06030) reports a net profit of approximately CNY 23.159 billion for the first three quarters, up 37.86% year-on-year [1] - Kingdee International (00268) reports annual recurring revenue of approximately CNY 3.86 billion from subscription services for the first three quarters, a year-on-year increase of about 18% [1] - China Nonferrous Mining (01258) estimates a profit of approximately USD 356 million for the first three quarters, a year-on-year increase of about 13% [1] - Chongqing Bank (01963) reports a net profit of CNY 4.879 billion for the first three quarters, a year-on-year increase of 10.19% [1] - China Resources Cement (01313) reports a profit attributable to shareholders of CNY 331 million for the first three quarters, a year-on-year increase of 7.3% [1] - China Shenhua Energy (01088) reports a net profit of CNY 41.366 billion for the first three quarters, a year-on-year decrease of 13.8% [1] - Haohai Biological Technology (06826) reports a net profit of approximately CNY 305 million for the first three quarters, a year-on-year decrease of 10.63% [1] - Great Wall Motors (02333) reports a net profit of CNY 2.298 billion for the third quarter, a year-on-year decrease of 31.23% [1] - China Heart and Heart Fertilizer (01866) reports a net profit of approximately CNY 800 million for the first three quarters, a year-on-year decrease of 47.86% [1] - China National Building Material (03323) reports a net profit of CNY 2.96 billion for the first three quarters [1] - GAC Group (02238) reports a net loss of approximately CNY 4.312 billion for the first three quarters, a shift from profit to loss year-on-year [1] - China Overseas Development (00688) reports revenue of CNY 103 billion and operating profit of CNY 13.15 billion for the first three quarters [1] - Haifeng International (01308) reports revenue of approximately USD 2.459 billion for the first three quarters, a year-on-year increase of approximately 16.6% [1] - China Energy Engineering (03996) reports a cumulative new contract amount of CNY 992.775 billion for the first three quarters, a year-on-year increase of 0.4% [1] E-commerce Performance - Li Ning (02331) reports high double-digit growth in its e-commerce virtual store business for the third quarter [2]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company has exceeded production and sales expectations, with significant cost reduction and efficiency improvements [1][5] - The KFM Phase II project is progressing smoothly, with an investment of $1.084 billion and expected completion in 2027 [2] - The company is expected to see revenue growth driven by increased production and rising metal prices, with projected revenues of 230.1 billion, 264.6 billion, and 285.7 billion yuan for 2025-2027 [5] Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue of 145.5 billion yuan, a decrease of 5.99% year-on-year, while net profit attributable to shareholders increased by 72.6% to 14.28 billion yuan [1] - In Q3 2025, revenue was 50.7 billion yuan, down 2.36% year-on-year, but net profit rose by 96.4% to 5.61 billion yuan [1] - The company reported a significant reduction in operating costs, down 10.94% year-on-year [1] Production and Sales Summary - Copper production for the first three quarters reached 543,400 tons, up 14.14% year-on-year, with a completion rate of 86.25% [1] - The cobalt, molybdenum, tungsten, niobium, and phosphate production also exceeded targets, with completion rates of 79.98%, 78.60%, 85.71%, 78.41%, and 79.37% respectively [1] - The IXM trading segment achieved a physical trading volume of 3.3311 million tons, with a completion rate of 78.38% [1] Segment Performance Summary - In the copper-cobalt segment, Q3 copper production was 190,000 tons, with revenue of 12.9 billion yuan and a gross profit of 7.1 billion yuan [3] - The molybdenum segment reported Q3 production of 3,622 tons, with revenue of 1.7 billion yuan and a gross profit of 820 million yuan [4] - The niobium and phosphate segments reported revenues of 700 million yuan and 950 million yuan respectively, with gross profits of 460 million yuan and 290 million yuan [5]

Core Viewpoint - The appointment of Peng Xuhui as CEO of Luoyang Molybdenum Co., Ltd. is a strategic move aimed at enhancing the company's management capabilities and aligning with its development goals in the mining industry [4][5][6]. Group 1: Company Background - Peng Xuhui has extensive experience in advanced manufacturing, having served in various roles at Shentianma A since 2006, where he progressed from a research engineer to chairman [3]. - Luoyang Molybdenum is a leading global producer of tungsten, cobalt, niobium, and molybdenum, with significant copper production and a strong presence in mineral trading across multiple continents [6]. Group 2: Recent Developments - In Q1 2025, Luoyang Molybdenum achieved a turnaround with a net profit of 96.41 million yuan, marking a year-on-year increase of 7.25% [4]. - The company has been focusing on cost reduction and efficiency improvement, with a strategic shift towards lean management and platform capability development [4][5]. Group 3: Strategic Goals - Luoyang Molybdenum aims to produce 800,000 to 1 million tons of copper annually and is actively pursuing gold resource development [4]. - The company acknowledges its gaps in resource reserves, profitability, management, and talent development, emphasizing the need for organizational upgrades to compete globally in the mining sector [5]. Group 4: Financial Performance - Luoyang Molybdenum reported a net profit of 14.28 billion yuan for the first three quarters, a 72.61% increase year-on-year, surpassing the total profit for the previous year [6]. - The company's market capitalization reached 359 billion yuan, reflecting a 5.53% increase on October 24 [6].