The Zhitong Finance App learned that Citi released a research report saying that the Luoyang Molybdenum Industry (03993) achieved net profit of 24 billion yuan in the first nine months of this year, an increase of 68% over the previous year, which is equivalent to 70% and 73% of the bank's full-year forecast and market expectations, respectively. The bank maintains a “buy” rating and a target price of HK$29. It believes that the current price of the company's H shares is 6.9 times and 6.4 times the predicted price-earnings ratio for 2026 and 2027, respectively, which is an attractive valuation.

In the first nine months, the company's recurring net profit and EBIT were 23.3 billion yuan and 39.8 billion yuan respectively, up 61% and 62% year-on-year respectively. Citi estimates that the company's EBIT for the third quarter was RMB 13.1 billion, up 45% year on year, down 8% from month to month, slightly lower than the forecast, mainly due to the low gross profit of the cobalt division, which may be related to the average sales price rearrangement. The bank estimates that the company's net profit for the third quarter was 7.9 billion yuan, a year-on-year increase of 40% and a year-on-month decrease of 6%.

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