Citibank raises Luoyang Luanchuan Molybdenum shares target price due to expected increase in cobalt, molybdenum, and tungsten prices, and increase in copper production.

Citigroup has raised the target price for Luoyang Molybdenum Industry's Hong Kong shares by about 3.5% to 29.3 Hong Kong dollars. They mentioned that they have taken into consideration the increase in forecasted prices for cobalt, molybdenum, and tungsten, as well as the expected increase in copper production, and have accordingly raised the company's net profit forecast for this year and next year by 3.2% and 10.5% respectively. Analysts, including Jimmy Feng, stated in their report that Luoyang Molybdenum's net profit in the first quarter increased on a year-on-year and quarter-on-quarter basis, mainly driven by the rising prices of copper and tungsten, as well as contributions from the acquisition of gold assets in Brazil in January. The first quarter performance basically met the bank's expectations. The decrease in copper production from the previous quarter in the first quarter was mainly due to the impact of the rainy season in Congo; cobalt sales volume decreased by 92% year-on-year, mainly due to the impact of Congo's cobalt export quota policy, and sales volume is expected to rebound in the second quarter.