Huatai Securities: Raises target price for Luoyang Molybdenum's A and H shares, maintains "buy" rating.

Huatai Securities published a research report stating that Luoyang Molybdenum achieved operating revenue of 66.403 billion yuan in the first quarter of this year, a year-on-year increase of 44.34% and a quarter-on-quarter increase of 8.5%. Net profit attributable to the mother was 7.76 billion yuan, a year-on-year increase of 96.65% and a quarter-on-quarter increase of 28.07%. Adjusted net profit was 7.486 billion yuan, a year-on-year increase of 90.58%. In terms of costs, the company's cost control is significant, with copper costs slightly decreasing by quarter. However, the sulfur price is still rapidly rising due to the US-Iran war, so it is judged that starting from the second quarter of this year, the company's copper and phosphate fertilizer costs may rise. The bank pointed out that the company is a growth-oriented copper mine leader, a key enterprise in minor metals, and has added a gold sector. It maintains a "buy" rating with a target price for A-shares raised from 26.81 yuan to 28.42 yuan and a target price for Hong Kong shares raised from 26.26 Hong Kong dollars to 28.3 Hong Kong dollars.