Goldman Sachs: Raise target price of MMG (01208) to 13.5 Hong Kong dollars, accompanied by improved earnings or the first dividend in ten years.

Goldman Sachs released a research report stating that with improving profits, it is expected that MMG (01208) will have the opportunity to start paying dividends for the first time in ten years in 2026. They maintain a "buy" rating and raise the target price from HK$13 to HK$13.5. MMG's full-year net profit in 2025 was US$509 million, a significant increase of 215% year-on-year, with earnings per share of US$0.042, up 174% year-on-year. Excluding one-off items including forex gain and impairment charges, recurring net profit was US$816 million, roughly in line with the bank's forecast and higher than market expectations. The company announced that it will not pay a final dividend, the same as last year. Based on their global commodities team's latest copper price forecast, the bank has raised its profit forecast for MMG for 2026 to 2027 by 3% to 20%, and added a profit forecast for 2028. The bank expects that as a pure copper play, MMG's recurring net profit will increase significantly from US$820 million in 2025 to US$1.75 billion in 2026, nearly doubling, mainly due to the continuous rise in copper prices and the contribution from lowering financial costs through deleveraging.