Market Insight | CMOC rose more than 4% intraday, copper-related gross profit increased, Daiwa believes its attractiveness and competitive advantages will be gradually recognized

CMOC rose more than 4% during the trading session, and as of the time of publication, it rose by 4.13% to HKD 7.82, with a turnover of HKD 91.5044 million. Daiwa released a report stating an initial "buy" rating for CMOC with a target price of HKD 9.4. The bank believes that the company is currently the second largest copper miner in China, with the potential to enter the global top ten as production increases, benefiting from competitive cash costs. The company is gradually shifting from a diversified miner to a copper miner, with improved copper-related gross margins. However, CMOC is still undervalued compared to peers such as Zijin Mining, and it is believed that its attractive growth and competitive advantages will gradually be recognized and re-evaluated by investors as a global leader in the copper industry. Daiwa further pointed out that the company's second-quarter profits will reflect the increase in copper prices from April to May. The market estimates that the Fed will start cutting interest rates in the later part of this year to early next year, which may stimulate copper prices to rise and drive CMOC's stock performance