CMOC (03993) delivered better-than-expected performance, which UBS anticipates will elicit a positive market response. The bank has assigned a target price of HK$20.5 and a "Buy" rating.

In the first three quarters of the year, CMOC reported net profit attributable to shareholders of RMB 14.3 billion, marking a 73% year-on-year increase. This figure represents 87% of the market's full-year expectations and 80% of UBS's projections.

For Q3 alone, net profit reached RMB 5.6 billion, surging 96% year-on-year and 19% quarter-on-quarter, surpassing market estimates by approximately RMB 1 billion.

UBS noted that cobalt sales in Q3 hit 5,000 tonnes, exceeding market expectations and significantly higher than the 2,200 tonnes recorded in Q2. Additionally, the effective tax rate dropped sharply from 37% in Q2 to 27% in Q3, implying a quarterly reduction in tax expenses of RMB 900 million.