Furui: Maintains "buy" rating on CMOC Group Limited (03993) with a target price of HK$25.

CMB International issued a research report stating that it maintains a "buy" rating on CMOC Group Limited (03993) with a target price of 25 Hong Kong dollars. The target price for the A-shares of CMOC Group Limited (603993.SH) is 26 RMB, with the same "buy" rating. The report pointed out that CMOC Group Limited's net profit after tax in the first quarter of 2026 was 7.8 billion RMB, a year-on-year increase of 97% and a quarterly increase of 28%, showing ideal performance and meeting expectations. Copper production during the period was 188,000 tons, a year-on-year increase of 10%, with the group reaffirming its full-year production guidance of 760,000 to 820,000 tons. Cobalt production remained at a normal level of around 30,000 tons per quarter, but due to unclear export program details, sales volume in the first quarter was only 2,000 tons. The report stated that the market is concerned about the impact of the tightening sulfur supply and rising prices on copper production due to the situation in the Middle East. Management confirmed that their TFM mine is self-sufficient in sulfuric acid, while the KFM mine partially relies on external supply. The company's current sulfur inventory (including goods in transit) is sufficient to support production until the third quarter of 2026, with short-term operations unaffected. Unit costs of copper production in the first quarter recorded year-on-year and quarterly declines, mainly due to a decrease in electricity costs.