CMOC Group Ltd (H/A): 2Q earnings beat despite sulfur cost concerns; Copper price & volume growth

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CMOC Group Ltd (H/A): 2Q earnings beat despite sulfur cost concerns; Copper price & volume growth

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CMOC Group Ltd (H/A)

2Q earnings beat despite sulfur cost

concerns; Copper price & volume growth

PO: 22.00 HKD | Price: 14.95 HKD

2Q26 NPAT +0%-13% QoQ, ahead of market expectation 10 July 2026

CMOC issued a positive profit alert, guiding 1H26 attributable net profit of Rmb15.5- Equity

16.5bn, up 79-90% YoY. This implied 2Q26 NPAT of Rmb7.7-8.7bn, +64%-85% YoY/

+0%-13% QoQ, ahead of market expectations as investors had been concerned about Miriam Chan, CFA >> Research Analyst

the potential margin impact from elevated sulfur costs. We believe the resilient result in Merrill Lynch (Hong Kong)

2Q reflects a combination of 1) Higher copper output: 1H26 copper production +852miriam.chan@bofa.com3508 7478

reached 388kt (+9.7% YoY), implied 2Q +6% QoQ at 200kt; 2) higher copper & Matty Zhao >>

molybdenum price QoQ; 3) control of sulfur cost with 3-month inventory cycle: Research Analyst

Merrill Lynch (Hong Kong)

During our recent meeting with management (See: Takeaway), CMOC highlighted that +852 3508 4001

sulfur procurement had been actively managed through inventory strategies; 4) matty.zhao@bofa.com

Brazilian gold asset: one additional month of earnings contribution from the Brazilian

gold asset consolidation versus 1Q. These positives were partly offset by our

assumption of a DRC copper supertax provision as well as lower tungsten and gold Stock Data

prices during the quarter.

Rating (H Share) BUY

Rating (A Share) BUYBuy on copper growth and attractive valuation

As highlighted in our latest Commodity Outlook report (See: Copper top pick; lower Price (H Shr / A Shr) 14.95 HKD / 17.50 CNY