Zhi Tong Cai Jing·2025-10-30 09:44Core Viewpoint - UBS has raised the target price for Luoyang Molybdenum (03993) to HKD 23.4 and maintains a "Buy" rating, citing strong growth potential in copper production and improved profit forecasts [1] Group 1: Production and Growth - Luoyang Molybdenum's copper production is expected to exceed the guidance of 600,000 to 660,000 tons in 2025, with 543,000 tons already achieved in the first three quarters of this year [1] - The increase in production is attributed to technological upgrades in production lines and improvements in power supply [1] - Management is confident that production will continue to grow in 2026 and 2027, with sustainable contributions from new production [1] Group 2: Profit Forecasts - UBS has raised its net profit forecasts for Luoyang Molybdenum for 2025, 2026, and 2027 by 13%, 14%, and 14% respectively [1] - The upward revision in profit forecasts is primarily due to increased price expectations for cobalt and tungsten, as well as improved copper production outlook [1] Group 3: Target Price Adjustment - The target price for Luoyang Molybdenum's H-shares has been increased from HKD 20.5 to HKD 23.4 [1] - UBS continues to recommend a "Buy" rating based on the positive outlook for the company's production and profitability [1]