Guosheng Securities: maintain a "buy" rating on Luoyang Molybdenum, and the dual gold copper strategy in 2026 opens a new chapter.

Sina Finance News on March 31st, Guosheng Securities research report pointed out that Luoyang Molybdenum's copper production in 2025 exceeded expectations, and in 2026, gold and copper would develop together to open a new chapter. In 2025, the company achieved revenue of 206.7 billion yuan, a year-on-year decrease of 3.0%, and a net profit attributable to shareholders of 20.3 billion yuan, a year-on-year increase of 50.3%. The copper production in 2025 increased significantly, with a production of 741,000 tons of copper, a year-on-year increase of 14.0%, and the annual copper production showed a gradual upward trend. The KFM Phase II and TFM Phase III will create growth points for the copper sector. It is expected that after the completion of the KFM Phase II project in 2027, an additional annual production of 100,000 tons of copper will be achieved. At the same time, the TFM Phase III project is planned, aiming to achieve a target of 1 million tons of copper production by 2028. In June 2025, the acquisition of the Odin mine in Ecuador was completed, and the project is currently in the preliminary planning stage; in December, it was announced that the 100% equity of a producing gold mine in Brazil was acquired for 1.015 billion US dollars. The transaction was completed in January 2026, with an expected gold production of 6-8 tons in 2026. By 2029, the company is expected to have a gold production capacity of 20 tons. Considering the rise in metal prices in 2026, it is estimated that the company's operating income for 2026-2028 will be 236.7/269.8/291.4 billion yuan respectively, with net profits attributable to shareholders of 31.5/36.2/39.3 billion yuan respectively, corresponding to P/E ratios of 12.0/10.4/9.6 times. The "Buy" rating is maintained.