The Zhitong Finance App learned that the Luoyang Molybdenum Industry (03993) declined in early trading and rose more than 4% in the afternoon. As of press release, it rose 4.1% to HK$15.46, with a turnover of HK$405 million.

According to the news, Luoyang Molybdenum Industry announced that net profit for the first half of the year is expected to be 15.5 billion yuan to 16.5 billion yuan, an increase of 78.76% to 90.29% over the previous year. The change in performance was mainly due to a year-on-year increase in the volume and price of main copper products, and a significant increase in the price of molybdenum and tungsten products, compounded by the Brazilian gold mining business. According to calculations, the company's net profit for the second quarter is expected to be 7.74 billion to 8.74 billion yuan, with a change of 0% to 12% from the previous quarter.

Bank of America Securities published a research report saying that Luoyang Molybdenum's performance in the second quarter was better than market expectations because investors had previously worried about the potential impact of rising sulfur costs on profit margins. Looking ahead, based on advanced accounting and a three-month inventory cycle, the bank expects the impact of sulfur costs to be more obvious in the third quarter, but continued strong quarterly increases in metal prices, cost control and cobalt sales may partially offset the impact.

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