Morgan Stanley has released a research report indicating that Zijin Mining (02899, 601899.SH) will continue to increase its gold and copper production, with its current valuation level being highly attractive. The target price for its H-shares has been raised from HK$46.1 to HK$59, while the A-share target price has been increased to 56 yuan. The firm has also reaffirmed its "Overweight" rating for both the H-shares and A-shares. The price of gold has already surpassed the bank's commodities team's previous forecast of $4,750 per ounce for the second half of the year. However, considering factors such as geopolitical risks, positive signals from central banks, and ETF buying, gold prices may not have yet peaked. The bank emphasized that in its bullish scenario, gold prices could reach $5,700 per ounce in the second half of the year. Regarding copper prices, although the bank held a positive outlook for metals including copper at the start of the year, prices have already broken through its second-quarter forecast of $12,200 per ton ahead of schedule. The bank believes that tight supply and a strong macroeconomic backdrop will continue to support copper prices, but short-term volatility is possible due to uncertainty in US import trends and limited data from China before March. It is projected that a supply deficit of approximately 600,000 tons will emerge in the copper market by 2026, with limited growth in mine supply being offset by new demand drivers such as data centers and energy storage systems.
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