Citi: CMOC's Third-Quarter EBIT Slightly Below Expectations, Buy Rating Maintained

Stock News10-26

Citi has issued a research report stating that CMOC (ASX: 03993) recorded a net profit of RMB 24 billion for the first nine months of this year, representing a year-on-year increase of 68%, which equates to 70% of the bank's full-year forecast and 73% of market expectations, according to Zhitong Finance APP.

The bank maintains its "Buy" rating and a target price of HKD 29, believing that the company's H-share current price corresponds to forecast price-to-earnings ratios of 6.9 times and 6.4 times for 2026 and 2027 respectively, making the valuation attractive.

For the first nine months, the company's recurring net profit and EBIT stood at RMB 23.3 billion and RMB 39.8 billion respectively, representing year-on-year growth of 61% and 62% respectively.

Citi estimates that the company's third-quarter EBIT was RMB 13.1 billion, up 45% year-on-year but down 8% quarter-on-quarter, slightly below the bank's expectations, mainly due to lower gross profit in the cobalt segment, which may be related to average selling price restatement adjustments.

The bank estimates that the company's third-quarter net profit was RMB 7.9 billion, up 40% year-on-year but down 6% quarter-on-quarter.

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