Xin Lang Cai Jing·2025-09-01 00:54Core Viewpoint - The report from CITIC Securities indicates that the domestic copper mining sector's price-to-earnings (PE) ratio has been consistently running between 10-15x over the past three years, with a recent upward adjustment in valuation due to declining supply growth and strong domestic demand [1] Group 1: Supply and Demand Dynamics - The domestic copper mining sector is expected to see a further improvement in supply and demand, with seasonal effects and macroeconomic support acting as catalysts [1] - It is projected that copper prices could reach $10,500 per ton in Q3-Q4 of 2025, driven by an upward shift in price levels that will enhance corporate profit expectations [1] Group 2: Valuation Outlook - There is a perceived discrepancy in valuations between domestic and international sectors due to differences in the perception of supply shortages and demand growth [1] - The anticipated improvement in supply-demand recognition and the increase in copper prices are expected to drive domestic valuations higher, potentially reaching 15-20x [1]