Oriental Securities: Initial "buy" rating given to Tongling Nonferrous, with the expectation that the gold and other by-product sectors will continue to increase profits.

The Oriental Securities research report pointed out that Tongling Nonferrous is one of the largest cathode copper production enterprises in China, with smelting capacity exceeding 1.7 million tons. It has gradually become a comprehensive copper industry company covering the entire industry chain of "resources-smelting-processing". The company's copper product revenue and gross profit contribution are significant, but since 2024, the downward trend in copper smelting fees due to tightening copper ore supply has led to a slight decrease in the company's copper product gross profit margin. The market is concerned that the company's large copper smelting capacity may be squeezed by the continuous decline in copper smelting fees, affecting profit margins. The certainty of copper price increase has been strengthened, and there are marginal favorable expectations for smelting fees, which are expected to benefit profit elasticity. The company focuses on the high-end copper processing market, and its subsidiary Tung Crown Copper Foil was spun off and listed in 2022. Against the backdrop of rapid development in the AI and electronic communication industries, high-end electronic copper foil products are expected to tap into larger application markets. In addition, the gold and other by-product sectors are expected to continue to increase the company's profits. The company is given a "buy" rating for the first time.