Summary of Jiangxi Copper Conference Call Company Overview - **Company**: Jiangxi Copper (0358.HK, 600362.SS) - **Industry**: Copper and Gold Mining - **Current Ratings**: Upgraded from Underweight to Overweight - **Price Targets**: - HK$10.30 to HK$37.30 for JXC-H - Rmb16.00 to Rmb44.00 for JXC-A [1][6][51] Core Insights and Arguments - **Earnings Resilience**: Jiangxi Copper's earnings are expected to be more resilient due to by-product credits and high prices for copper and gold [1] - **Copper Price Support**: Tight industry fundamentals and a weaker US dollar are expected to support copper prices, which are currently below the incentive price for new mining projects [2][20] - **Gold Segment Performance**: The company mines approximately 5.5 tons of gold annually, benefiting from strong gold prices [3] - **Investment Contributions**: - The First Quantum mine in Panama is expected to resume production in Q3 2026, contributing incremental profits to Jiangxi Copper [4] - Jiangxi Copper holds an 18.9% stake in First Quantum and is the second-largest shareholder of Jiaxin International Resources, which is expected to benefit from tightening tungsten fundamentals [4] - **By-product Profit Margins**: Rising prices for sulfuric acid, driven by demand from titanium dioxide and fertilizers, are expected to offset losses from negative concentrate TC/RC [5][10] - **Earnings Estimates**: - Earnings estimates have been raised by 48% for 2025, 89% for 2026, and 115% for 2027, reflecting higher profits from copper, gold, and smelting operations [6][11] - **Valuation Metrics**: - JXC-H trades at approximately 12x one-year forward P/E, above its historical average of 11.3x, while JXC-A trades at 14.8x, below its historical average of 20.4x, indicating potential for further upside [6][19] Financial Highlights - **Revenue Projections**: - 2025: Rmb577,820 million - 2026: Rmb631,500 million - 2027: Rmb591,277 million [12] - **Net Income Projections**: - 2025: Rmb9,381 million - 2026: Rmb8,348 million - 2027: Rmb10,138 million [12] - **EPS Estimates**: - 2025: Rmb2.71 - 2026: Rmb2.41 - 2027: Rmb2.93 [12] Risks and Considerations - **Downside Risks**: - Potential copper price corrections if demand weakens, particularly from grid infrastructure [28] - Higher-than-expected increases in global copper concentrate supply [28] - Lower-than-expected sulfuric acid prices affecting smelting profits [28] - **Upside Risks**: - Stronger-than-expected copper prices and improved demand outlook from infrastructure spending [50] Conclusion - Jiangxi Copper is positioned for strong earnings growth driven by favorable commodity prices and strategic investments. The company's upgraded rating and significant price target increases reflect a positive outlook in a tightening market environment.

Investment Rating - The investment rating for Britannia Industries Ltd is Equal-weight [8] Core Insights - Management anticipates a gradual sequential recovery in growth, aiming for double-digit revenue growth in fiscal year 2026. Price hikes implemented in the fourth quarter are expected to fully impact the first quarter, with no further price changes anticipated [1] - Volume growth was reported at 3.5% in the fourth quarter [1] - The company is targeting cost savings of over 2.5% in fiscal year 2026, with a focus on increasing distribution depth in high-potential outlets and expanding reach in rural areas [2] - The non-biscuit portfolio currently represents 75% of the product mix, with aspirations to grow it at 1.5 times the biscuit portfolio [2] - The company has not actively pursued mergers and acquisitions due to high valuations and low potential for value creation [3] Financial Metrics - The price target for Britannia Industries Ltd is set at Rs 5,511.00, with a current share price of Rs 5,436.00, indicating a 1% upside potential [8] - Market capitalization is reported at Rs 1,307,186 million, with an enterprise value of Rs 1,295,712 million [8] - Projected revenue for fiscal year 2025 is Rs 177,781 million, increasing to Rs 194,068 million in fiscal year 2026 [8] - Earnings per share (EPS) is expected to grow from Rs 91.57 in fiscal year 2025 to Rs 109.51 in fiscal year 2026 [8] - The company maintains a high return on equity (ROE) of 60.6% for fiscal year 2025, projected to be 60.1% in fiscal year 2026 [8]