CMBC International: raises target price of China General Nuclear Mining (01164.HK) to 2.61 Hong Kong dollars. The new pricing framework agreement is surprising.

Caijing APP learned that CICC International released a research report stating that CGN Mining (01164.HK) has signed a new pricing framework agreement with its parent company for the years 2026 to 2028. Under the new mechanism, the fixed portion price (per pound of natural uranium) will be adjusted to $94.22 in the first year, increasing by 4.1% annually in 2027 and 2028, significantly higher than the current mechanism. This has surprised the market and helped to alleviate concerns about pricing uncertainty. The bank has raised the profit forecast for CGN Mining for 2026 to 2027 by 17% and 23% respectively. Therefore, the corresponding target price has been raised from HK$2.18 to HK$2.61, maintaining a "buy" rating.