Jupiter: Luoyang Molybdenum Industry's performance in the first quarter was ideal, with a "buy" rating.

JF Securities released a research report stating that Luoyang Molybdenum's net profit after tax in the first quarter of 2026 was 7.8 billion yuan, a year-on-year increase of 97% and a quarter-on-quarter increase of 28%, performing well and meeting expectations. During the period, the copper production was 188,000 tons, a year-on-year increase of 10%. The group reiterated its full-year production guidance of 760,000 to 820,000 tons unchanged. The cobalt production maintained a normal level of around 30,000 tons per quarter, but due to unclear details of the export procedure, the first quarter sales volume was only 2,000 tons. The market is concerned about the impact of the tightening sulfur supply and rising prices on copper production due to the Middle East situation. The management confirmed that the TFM mine is self-sufficient in sulfuric acid, while the KFM mine partially relies on external supply. The company's current sulfur inventory is sufficient to support production until the third quarter of 2026, and short-term operations are not affected. The target price for Luoyang Molybdenum's H shares is HK$25 and for A shares is 26 yuan, with a rating of "buy" for both.