Ge Long Hui·2025-09-11 07:28Core Viewpoint - Luoyang Molybdenum achieved a total profit of 14.903 billion yuan in H1 2025, representing a year-on-year increase of 33.62%, and a net profit attributable to shareholders of 8.671 billion yuan, up 60.07% year-on-year, marking a historical high [1] Financial Performance - The company's asset-liability ratio stands at 50.15%, a decrease of 9.01 percentage points year-on-year [1] - The H1 performance exceeded expectations, indicating sustained long-term growth potential [1] Business Segments - The copper and cobalt business continues to contribute to both volume and price increases, with H1 production exceeding planned targets [1] - Future plans include the implementation of the TFM East Zone 17K process technology upgrade project to enhance production and reduce costs, alongside increased exploration efforts at KFM to boost reserves [1] Market Conditions - The temporary suspension of cobalt exports from the Democratic Republic of Congo for four months, along with declining market inventory levels, is expected to support high cobalt prices, benefiting the company's revenue [1] Diversification and New Projects - The company is expanding its resource portfolio with the addition of gold products, specifically the Kaigehaos Gold Mine, which has a reserve of 659 million tons and an average gold grade of 0.55g/t, containing 359 tons of gold [1] - The surrounding infrastructure is relatively well-developed, and combined with the company's advanced mining and processing technology, this mine is expected to become a large-scale, low-cost world-class gold mine [1] Profit Forecast - The company has raised its net profit forecasts for 2025, 2026, and 2027 to 16.7 billion, 19 billion, and 21.1 billion yuan respectively, up from previous estimates of 14.9 billion, 16 billion, and 18.1 billion yuan [1] - Corresponding price-to-earnings ratios are projected at 16x, 14x, and 13x for the respective years [1] - The company maintains a "buy" rating based on these projections [1]