--- title: "JPM: China Materials Sector Likely to Issue Positive Profit Alerts, Prefers Copper and Gold Stocks" type: "News" locale: "en" url: "https://longbridge.com/en/news/292170388.md" description: "JPMorgan expects China's basic materials sector to issue positive profit alerts, favoring copper and gold stocks. The bank ranks sub-sectors as copper > gold > aluminum > lithium > coal > steel. While maintaining Overweight ratings on key players like Zijin Mining and MMG, JPM lowered target prices for several companies including Zijin Gold International and Chalco due to valuation adjustments, despite solid physical fundamentals and expected earnings growth driven by rising commodity prices." datetime: "2026-07-09T08:40:48.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292170388.md) - [en](https://longbridge.com/en/news/292170388.md) - [zh-HK](https://longbridge.com/zh-HK/news/292170388.md) --- # JPM: China Materials Sector Likely to Issue Positive Profit Alerts, Prefers Copper and Gold Stocks JPMorgan released a research report expecting companies in China's basic materials sector, including copper, gold, aluminum, lithium and some coal producers, to issue positive profit alerts. The bank believes investors will gradually refocus on earnings and fundamental supply-demand factors going forward. JPM's preference ranking for sub-sectors is copper \> gold \> aluminum \> lithium \> coal \> steel. It believes copper and gold stocks have already seen valuation corrections under expectations of aggressive rate hikes, while physical fundamentals remain solid. For the copper sector, JPM expects 1H25 earnings of MMG (01208.HK) \-0.080 (-1.138%) Short selling $17.09M; Ratio 19.964% , CMOC (03993.HK) \-0.420 (-2.781%) Short selling $48.50M; Ratio 16.298% , JIANGXI COPPER (00358.HK) +0.560 (+1.894%) Short selling $24.65M; Ratio 9.051% and ZIJIN MINING (02899.HK) \-0.320 (-1.076%) Short selling $139.92M; Ratio 19.548% to rise YoY by 120%, 94%, 92% and 79% respectively, benefiting from a 31% YoY increase in Shanghai Futures Exchange copper prices and a 163% YoY rise in sulfuric acid prices. JPM lowered the TP for ZIJIN MINING (02899.HK) \-0.320 (-1.076%) Short selling $139.92M; Ratio 19.548% from HKD55 to HKD50, CMOC (03993.HK) \-0.420 (-2.781%) Short selling $48.50M; Ratio 16.298% from HKD28 to HKD25, and JIANGXI COPPER (00358.HK) +0.560 (+1.894%) Short selling $24.65M; Ratio 9.051% from HKD51 to HKD44, while maintaining MMG (01208.HK) \-0.080 (-1.138%) Short selling $17.09M; Ratio 19.964% 's TP at HKD13. Ratings for all remain Overweight. JPM sharply lowered the TP for ZIJIN GOLD INTL (02259.HK) \-4.600 (-4.410%) Short selling $168.90M; Ratio 28.145% from HKD240 to HKD170 while maintaining an Overweight rating, expecting EPS CAGR for 2025-2028 of about 42%. The TP for SD GOLD (01787.HK) \-0.890 (-4.692%) Short selling $42.12M; Ratio 26.444% was lowered from HKD35 to HKD22.5 with the rating maintained at Neutral, as the bank believes its earnings growth is mainly driven by gold prices rather than operational improvements. In the aluminum sector, JPM believes market concerns over Indonesian aluminum supply are excessive. It lowered the H-share TP for CHALCO (02600.HK) \-0.110 (-1.442%) Short selling $81.74M; Ratio 40.853% from HKD16 to HKD12 and CHINAHONGQIAO (01378.HK) \-0.880 (-4.190%) Short selling $66.09M; Ratio 13.580% from HKD46 to HKD30, while maintaining Overweight ratings on both. The bank believes valuation discounts of domestic aluminum producers relative to global peers have re-rating potential. For the lithium sector, JPM expects GANFENGLITHIUM (01772.HK) \-0.720 (-1.644%) Short selling $30.75M; Ratio 7.399% to benefit from strong growth in its battery business and upside potential in lithium carbonate prices. The bank upgraded its investment rating from Neutral to Overweight while maintaining the TP at HKD70. The TP for TIANQI LITHIUM (09696.HK) \-1.140 (-3.135%) Short selling $2.80M; Ratio 1.441% was lowered from HKD52 to HKD36 with the rating maintained at Neutral, reflecting higher expectations for the A/H premium. In the coal and steel sectors, CHINA SHENHUA (01088.HK) \-0.280 (-0.676%) Short selling $151.34M; Ratio 58.758% and YANKUANG ENERGY (01171.HK) \-0.290 (-2.648%) Short selling $4.19M; Ratio 6.377% maintained Neutral ratings, with CHINA SHENHUA (01088.HK) \-0.280 (-0.676%) Short selling $151.34M; Ratio 58.758% 's TP at HKD44.5 and YANKUANG ENERGY (01171.HK) \-0.290 (-2.648%) Short selling $4.19M; Ratio 6.377% 's TP cut from HKD14 to HKD12.5. ANGANG STEEL (00347.HK) \-0.030 (-2.655%) Short selling $533.32K; Ratio 29.055% maintained an Underweight rating, with its TP lowered from HKD1.3 to HKD0.8. JPM expects the company to continue recording losses in 2026 and 2027.(gc/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-09 12:25.) ### Related Stocks - [02899.HK](https://longbridge.com/en/quote/02899.HK.md) - [02600.HK](https://longbridge.com/en/quote/02600.HK.md) - [601600.CN](https://longbridge.com/en/quote/601600.CN.md) - [01208.HK](https://longbridge.com/en/quote/01208.HK.md) - [MMG.AU](https://longbridge.com/en/quote/MMG.AU.md) - [02259.HK](https://longbridge.com/en/quote/02259.HK.md) - [601899.CN](https://longbridge.com/en/quote/601899.CN.md) - [GOLD.AU](https://longbridge.com/en/quote/GOLD.AU.md) - [159880.CN](https://longbridge.com/en/quote/159880.CN.md) - [512400.CN](https://longbridge.com/en/quote/512400.CN.md) ## Related News & Research - [DRC's Copper, Cobalt Concentrate Exports Ban to Have Limited Impact on Chinese Firms With Local Business, Expert Says](https://longbridge.com/en/news/295364610.md) - [Canada's Allied Gold Q2 gold output up 7% yr/yr](https://longbridge.com/en/news/295018415.md) - [U.K. Moves To Allow Trading In Tokenized Gold](https://longbridge.com/en/news/295417448.md) - [LIVE MARKETS-Could the debasement trade make a comeback?](https://longbridge.com/en/news/295392583.md) - [BREAKINGVIEWS-China wants more than a Fort Knox from Hong Kong](https://longbridge.com/en/news/295172133.md)