Morgan Stanley: CMOC Group Limited (03993) outperforms market expectations, target price of HKD 23.2

Morgan Stanley released a research report stating that the target price for CMOC Group Limited H shares (03993) is HK$23.2, and the target price for CMOC Group Limited A shares (603993.SH) is RMB 22.5, both with a "buy" rating. CMOC Group Limited reported a profit increase, with a projected net profit of RMB 20-20.8 billion in 2025, a year-on-year growth of 48% to 54%, in line with the market's expectation of RMB 20.1 billion. The net profit for the fourth quarter of last year is estimated to be between RMB 5.7-6.5 billion, an increase of 2% to 16% from the previous quarter. Management stated that the strong performance is mainly due to the simultaneous increase in production volume and prices, coupled with effective cost control. The company plans to produce 760,000 to 820,000 tons of copper in 2026, representing a 7% year-on-year growth calculated at the median. They also plan to produce 6 to 8 tons of gold annually from the newly acquired Brazilian gold mine, with the goal of completing the acquisition in the first quarter of this year.