Morgan Stanley: Zijin Mining Group (02899) Growth and Valuation Advantages Coexist. Target price raised to HK$59.

Morgan Stanley released a research report stating that Zijin Mining Group (02899, 601899.SH) will continue to increase its gold and copper production. The current valuation level is very attractive, with the target price for H shares raised from 46.1 Hong Kong dollars to 59 Hong Kong dollars, and the target price for A shares raised to 56 Chinese yuan. The "buy" rating for its H shares and A shares is reissued. The price of gold has exceeded the commodity team's previous forecast of $4,750 per ounce for the second half of the year. However, considering factors such as geopolitical risks, positive signals from central banks, and ETF buying, the price of gold may not have peaked yet. The bank emphasizes that in a bullish scenario, the price of gold is expected to reach $5,700 per ounce in the second half of the year. As for copper prices, despite the positive outlook for metals including copper at the beginning of the year, prices have already surpassed the bank's forecast of $12,200 per ton for the second quarter. The bank believes that tight supply and a strong macroeconomic background will continue to support copper prices, but short-term volatility may occur due to uncertainty in U.S. import trends and limited data before March in China. It is estimated that there will be a supply gap of about 600,000 tons in the copper market by 2026, with limited mine supply growth offset by new demand driven by data centers and energy storage systems.