BOCI: Raises MMG (01208) target price to HK$11.01, reiterates "Buy" rating.

BOCI issued a research report reiterating its "Buy" rating on MMG (01208), raising the target price from HK$10.86 to HK$11.01, equivalent to 8.9x the 2026 forecast P/E ratio. The bank mainly raised its 2026 to 2028 earnings forecasts by 3% to 5% due to strong molybdenum and silver production in the third quarter. MMG's third-quarter copper production rose 3% year-on-year to 131,200 tonnes, with the ramp-up of capacity at two mines in Africa as the main growth driver. Based on the company's updated guidance, the bank estimates fourth-quarter copper production will fall 6% quarter-on-quarter, but still expects full-year copper production to rise 3% year-on-year. BOCI mentioned that copper production at Las Bambas fell 3% year-on-year due to lower ore grades and recovery rates, but strong growth at Kinsevere, benefiting from improved power supply and the ramp-up of the sulphide ore processing line, and at Khoemacau, benefiting from higher ore grades, was enough to offset the shortfall. Zinc production during the period fell 5% year-on-year to 55,900 tonnes, mainly due to restricted mining at Rosebery following the July earthquake. The company lowered its full-year copper production guidance for Khoemacau by 9% to 10%, and cut its zinc production guidance for Rosebery by 29% to 33%.