Goldman Sachs: Cuts target price of CMOC Group Limited (03993) to HK$25, maintains "buy" rating.

Goldman Sachs released a research report stating that it has lowered its regular profit forecast for CMOC Group Limited (03993) from 2026 to 2028 by 3% to 6%. The target price of its H-shares has been reduced from HK$27 to HK$25, and the target price of its A-shares has been reduced from RMB 28 to RMB 26, while maintaining a "buy" rating for both H-shares and A-shares. Goldman Sachs believes that the current valuation is attractive, estimating that the current price reflects a target copper price of $8,615 per ton in 2028, which is 35% lower than the spot price of $13,300. CMOC Group Limited reported a net profit of RMB 7.76 billion in the first quarter, a year-on-year increase of 97%. The regular net profit was RMB 8.1 billion, equivalent to 23% of the bank's full-year forecast and 25% of market consensus, slightly lower than the bank's expectations but in line with market consensus. The bank believes that lower-than-expected profits from the niobium and phosphate business in Brazil, as well as increased unit costs in the Congo copper mining business due to rising sulfur and energy prices, will drag down performance.