Citigroup raises the target price of Jiangxi Copper (00358) to HK$39.8 as copper and gold prices are expected to increase, driving up gross profit.

Citibank released a research report stating that although it is expected that the gross profit of JIANGXI COPPER (00358) copper smelting business will decrease year-on-year next year, and there will be downward pressure on long-term smelting and refining business, it is anticipated that the prices of copper, gold, and sulfuric acid will increase, which will drive the company's overall gross profit up next year. The target price of Jiangxi Copper H shares has been raised from HKD 27.9 to HKD 39.8, and the target price of Jiangxi Copper (600362.SH) A shares has been raised from RMB 33.8 to RMB 47.9; the bank believes that the current valuation is attractive and maintains a "buy" rating for both A shares and H shares. The bank's latest forecast for next year is a copper price of $12,750 per ton and a gold price of $3,925 per ounce. Combining the company's guidance, the bank has raised its profit forecasts for the company for 2025 to 2027 by 8%, 38%, and 11%, to RMB 8.2 billion, 11.8 billion, and 11.5 billion respectively.