Guosen Securities: Maintains a "outperform the market" rating for Luoyang Molybdenum, with high performance elasticity in copper and cobalt prices.

Guoxin Securities research report pointed out that Luoyang Molybdenum Industry achieved a net profit of 8.67 billion yuan attributable to shareholders in the first half of 2025, with operating net cash flow of 12.01 billion yuan. The net profit attributable to shareholders in the second quarter of 2025 was 4.73 billion yuan. The main reason for the company's profit growth was the increase in copper-cobalt prices, combined with an increase in copper-cobalt production. Since 2023, the company has entered a year of production release, and is one of the few large copper mines in the world that can maintain high copper growth. With the successive commissioning of Phase II of KFM and Phase III of TFM after 2027, the company's copper production is expected to reach 800,000 to 1 million tons after 2028, and the Ecuadorian gold project will also start production. Assuming that the spot settlement price of copper from 2025 to 2027 is 78,500 yuan/ton, the price of cobalt metal is maintained at 240,000 yuan/ton, the discount coefficient for cobalt hydroxide is 70%, and the export quota for Congolese gold is 70%. The company owns top global copper-cobalt mines, and the expansion of two world-class projects will enable the company to reach a million tons of copper production, with high performance elasticity to copper and cobalt prices. It maintains a "outperforming the market" rating.