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

研报英文原文证据摘录

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

This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory

of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan.

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