MMG Copper pure play with strong growth profile and deleveraging story; initiate at OW

Research evidence excerpt

MMG Copper pure play with strong growth profile and deleveraging story; initiate at OW

J P M O R G A N Asia Pacific Equity Research

10 June 2026

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Initiation

MMG Overweight

1208.HK, 1208 HK

Copper pure play with strong growth profile and Price (10 Jun 26):HK$8.11

deleveraging story; initiate at OW Price Target (Dec-27):HK$13.00

We initiate coverage of MMG with an OW rating. MMG is down 8% YTD, Asia Basic Materials

ACoutperforming its domestic copper peers (-15% to -26%) but it has lagged regional and Avery Chan

international peers (+14% on average). We are positive on copper and expect Chinese (852) 2800-8659

copper equities to close their valuation gap with international peers. MMG is a high avery.chan@jpmorgan.com

beta copper play with 90% gross profit exposure and the highest earnings sensitivity J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

to copper prices in our coverage. Trading at 0.8x P/NPV or 7.6x, the valuation appears

Sabrina Liu

inexpensive to us and we see room for MMG to further re-rate. On top of copper (852) 2800-8535

prices, we see earnings improvement from solid by-product prices, contained unit cost sabrina.liu@jpmorgan.com

inflation and deleveraging. Khoemacau Phase 2 delivery (130KT by 2028) should J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

help support future volume growth and we see an increasing chance for MMG to pay

its first dividend in 10+ years. Frankie Fong