BOCI Securities: Upgraded rating of "Buy" for CGN MINING (01164) with a target price raised to HK$2.4.

Bank of China International released a research report stating that they have updated their profit forecast for CGN MINING (01164) in 2026, based on new uranium prices and pricing assumptions. They have also raised the target price for the stock from 2.1 Hong Kong dollars to 2.4 Hong Kong dollars, equivalent to a forecast 2026 P/E ratio of 10 times, with a "buy" rating. The bank reiterated that CGN MINING is their top pick in the industry this year. The bank stated that the cost of converting and enriching uranium has surged since 2022, exacerbated by the US and Russia imposing sanctions on each other's enriched uranium in May and November last year. To partially offset the Russian supply, an estimated additional 2,240 tons of uranium demand will be generated. In addition, US utilities may need to replenish their stockpiles this year due to insufficient contract bookings last year, as well as higher-than-expected demand in the coming years due to strong electricity demand from data centers.