The general evaluation of JIANGXI COPPER 'H' (HK), a company active in the Non Ferrous Metals industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date February 8, 2022, the closing pr...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
China plays a key role in global rare earth market, with 26%/58% of reserves and annual production as a strategic resource. After decades of government efforts and industry restructure, we expect rare earth supply to be regulated, while demand growth is underpinned by a variety of green applications going forward. Rare earth prices have been trending up steadily since Mar 20. The six rare earth operation groups will be the key beneficiaries of a healthy market in the long-term.
An import ban on copper ore and concentrates is expected to be introduced, following trade escalations between China and Australia. In 1H20, 4.4% of China’s total copper ore and concentrates were imported from Australia. However, 55% of Australia’s total copper ore and concentrates exports were shipped to China. China’s copper ore and concentrates import volume was up 34.7% mom in Sep 20, thanks to strong recovery in domestic downstream demand. Maintain OVERWEIGHT. Top picks: Zijin Mining.
We expect the global copper market to remain in tight demand-supply balance in the foreseeable future, with demand CAGR of 1.5% over the next 2-3 years outpacing the growth in supply. The near-term support from the news that China’s top smelters are likely to cut production and the TC and RC floor for 1Q20 has been set at a low; both should support copper prices in the near term. We forecast 2020-21 LME copper prices at US$6,200/tonne and US$6,500/tonne respectively. Zijin Mining is our top pi...
Jiangxi Copper has focused on expanding its smelting operation, while its mining operation has remained unchanged in the past few years. We opine such expansion brings low-quality growth, as the falling self-sufficient rate weakens its ability to pass on the potential benefits of the copper price recovery in the future. Copper price is likely to have bottomed out in 1H19, thus we expect some recovery in 2H19. Near-term price movement would be driven by the progress in US-China trade talks, while...
KEY HIGHLIGHTS CHINA Sector Machinery 1H19 results preview: Upcycle yet to peak. Update Jiangxi Copper (358 HK/HOLD/HK$9.85/Target: HK$9.17) Lacks high-quality growth; copper prices likely to have bottomed out. HONG KONG Results SJM Holdings (880 HK/HOLD/HK$8.70/Target: HK$9.00) 2Q19: Another confirmed delay to Lisboa Palace. TRADERS’ CORNER Henderson Land (12 HK): Trading Sell Range PICC Group (1339 HK): Trading Buy Range
No-moat Jiangxi Copper reported first-quarter net profit of CNY 742 million, down 3% year over year. Stripping out one-off items of CNY 102 million, earnings were above our expectations and accounted for 32% of our full-year forecast. Nonetheless, we are keeping our fair value estimate of HKD 9.50 (CNY 8.20) unchanged as we expect copper prices to weaken. Our bearish long-term outlook is intact and we have made no changes to our midcycle commodity price forecasts. In our view, the H shares are f...
No-moat Jiangxi Copper reported first-quarter net profit of CNY 742 million, down 3% year over year. Stripping out one-off items of CNY 102 million, earnings were above our expectations and accounted for 32% of our full-year forecast. Nonetheless, we are keeping our fair value estimate of HKD 9.50 (CNY 8.20) unchanged as we expect copper prices to weaken. Our bearish long-term outlook is intact and we have made no changes to our midcycle commodity price forecasts. In our view, the H shares are f...
No-moat Jiangxi Copper’s, or JC’s, 2018 net profit of CNY 2.42 billion, up 46% year over year, was within preliminary guidance but trailed our expectation mainly due to impairment losses on financial assets amounting to CNY 1.37 billion. Stripping these off, JC’s earnings should be largely in line with our expectation. Nonetheless, JC’s core earnings declined year over year due to rising costs with gross margin falling to 3.2% from 4.2%, a year ago. After rolling forward our earnings mod...
No-moat Jiangxi Copper’s, or JC’s, 2018 net profit of CNY 2.42 billion, up 46% year over year, was within preliminary guidance but trailed our expectation mainly due to impairment losses on financial assets amounting to CNY 1.37 billion. Stripping these off, JC’s earnings should be largely in line with our expectation. Nonetheless, JC’s core earnings declined year over year due to rising costs with gross margin falling to 3.2% from 4.2%, a year ago. After rolling forward our earnings mod...
No-moat Jiangxi Copper’s, or JC’s, 2018 net profit of CNY 2.42 billion, up 46% year over year, was within preliminary guidance but trailed our expectation mainly due to impairment losses on financial assets amounting to CNY 1.37 billion. Stripping these off, JC’s earnings should be largely in line with our expectation. Nonetheless, JC’s core earnings declined year over year due to rising costs with gross margin falling to 3.2% from 4.2%, a year ago. After rolling forward our earnings mod...
No-moat Jiangxi Copper guided that 2018 net profit will increase by CNY 802 million year over year to about CNY 2.4 billion. This is below our expectations and we believe could be due to provision for assets impairment, hedging losses, and weaker copper prices. We are keeping our fair value estimate of HKD 9.30 per share (CNY 8.10 per share) for now pending more detailed information from the firm’s final results to be released in late March. We think the shares are overvalued, given our bearis...
No-moat Jiangxi Copper guided that 2018 net profit will increase by CNY 802 million year over year to about CNY 2.4 billion. This is below our expectations and we believe could be due to provision for assets impairment, hedging losses, and weaker copper prices. We are keeping our fair value estimate of HKD 9.30 per share (CNY 8.10 per share) for now pending more detailed information from the firm’s final results to be released in late March. We think the shares are overvalued, given our bearis...
No-moat Jiangxi Copper’s cumulative nine-month net profit of CNY 2.0 billion, up 29% year over year, was largely in line with our expectations. The robust results were mainly attributable to higher metal prices. We maintain our fair value estimate of HKD 9.30 (CNY 8.10). We think greater upside is needed versus risks before we would turn buyer given concerns on the trade war between the U.S. and China, which continue to pressure copper prices. While third-quarter operating data has not been ...
No-moat Jiangxi Copper’s cumulative nine-month net profit of CNY 2.0 billion, up 29% year over year, was largely in line with our expectations. The robust results were mainly attributable to higher metal prices. We maintain our fair value estimate of HKD 9.30 (CNY 8.10). We think greater upside is needed versus risks before we would turn buyer given concerns on the trade war between the U.S. and China, which continue to pressure copper prices. While third-quarter operating data has not been ...
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