Zhi Tong Cai Jing·2025-10-30 08:09Core Viewpoint - CITIC Securities projects Luoyang Molybdenum's net profit for 2025-2027 to be 19.989 billion, 24.800 billion, and 27.928 billion CNY respectively, with corresponding PE ratios of 16.28, 13.12, and 11.65, recommending a "buy" rating due to the company's industry position, growth potential, and low-cost advantages [1] Financial Performance - In the first three quarters of 2025, the company achieved operating revenue of 145.485 billion CNY and a net profit attributable to shareholders of 14.280 billion CNY, marking a year-on-year increase of 72.61% and surpassing the previous year's total [2] - The net profit for Q3 reached 5.608 billion CNY, reflecting a year-on-year growth of 96.40% and a quarter-on-quarter increase of 18.69% [2] Production and Projects - The company reported a significant increase in copper production, with a total output of 543,400 tons in the first three quarters of 2025, representing a year-on-year growth of 14.14% [3] - The company plans to invest up to 1.084 billion USD in the KFM Phase II project, expected to commence production in 2027, adding an average of 100,000 tons of copper metal annually once fully operational [3] Commodity Prices - In Q3 2025, the average LME copper spot price increased by 2.9% from Q2 to 9,797 USD per ton, with other key minerals also experiencing price increases [4] Cost Management - The company achieved a 10.94% year-on-year reduction in operating costs during the first three quarters of 2025, driven by refined management and technological innovations [5] Cobalt Market Outlook - Luoyang Molybdenum received the largest export quota from the Democratic Republic of Congo, with a remaining export limit of 6,500 tons for 2025, which is 35.9% of the total quota [6] - The tightening supply in the cobalt market is expected to push prices higher, with a projected reduction in supply leading to a shift from surplus to a shortage of approximately 30,000 tons [6]