Galaxy Securities: Initiate coverage of MMG (01208) with a buy rating. Copper production capacity continues to rise.

Galaxy Securities released a research report stating that it has initiated coverage on MMG (01208) with a "buy" rating. Based on the current exchange rate, the company is expected to achieve operating revenues of 48.3 billion, 64.5 billion, and 68.7 billion Hong Kong dollars respectively in 2025, 2026, and 2027, with net profits attributable to the parent company reaching 5.6 billion, 10.4 billion, and 12.1 billion Hong Kong dollars. The bank believes that the company has high-quality mining resources, with the production capacity of its three major copper mines continuously increasing, a clear growth path, and significant cost optimization space. Furthermore, the bank expects the copper industry's supply and demand dynamics to remain tight. Global copper mine capital expenditures continue to decline, combined with resource depletion and policy uncertainties in mining countries, leading to long-term supply constraints. On the demand side, traditional sectors are showing resilience, and the rapid development of industries such as AI data centers is also creating continuous new demand. The supply and demand situation for copper is expected to improve in 2026, combined with expectations of loose liquidity from the Federal Reserve, which will jointly drive copper prices steadily upwards.