JFJ: Luoyang Molybdenum's performance in the first quarter was ideal, with a "buy" rating.

Jefferies released a research report stating that the after-tax net profit of Luoyang Molybdenum Industry in the first quarter of 2026 was 7.8 billion yuan, a year-on-year increase of 97% and a quarter-on-quarter increase of 28%, demonstrating good performance and meeting expectations. The copper production in the period was 188,000 tons, a year-on-year increase of 10%, and the group reiterated its full-year production guidance of 760,000 to 820,000 tons. The cobalt production maintained a normal level of about 30,000 tons per quarter, but due to unclear export program details, the first quarter sales volume was only 2,000 tons. The market is concerned about the impact of tightening sulfur supply and rising prices on copper production due to the Middle East situation. The management confirmed that their TFM mine is self-sufficient in sulfuric acid, while the KFM mine is partly dependent on external supply. The company's current sulfur inventory is sufficient to support production until the third quarter of 2026, and short-term operations are not affected. The target price for Luoyang Molybdenum Industry's H shares is 25 Hong Kong dollars, and the A shares target price is 26 yuan, with a rating of "Buy".