On June 12, MMG Limited (01208.HK) rose 6.21% in regular trading, trading at HK$8.64 per share, with turnover of HK$49.72 million, rebounding sharply after several consecutive sessions of decline.

On the news front, JPMorgan initiated coverage on MMG Limited with an Overweight rating and a target price of HK$13, valid through December 2027, implying over 50% upside from current levels. The bank highlighted that MMG is a high-purity copper play, with approximately 90% of its gross profit in 2025 tied to copper, giving it the highest earnings sensitivity to copper prices among peers. JPMorgan forecasts a net profit CAGR of 52% from 2025 to 2028, with 2026 net profit expected to reach US$1.6 billion, representing a 216% year-over-year surge. Total borrowings have declined from US$4.6 billion to US$3.3 billion, with interest expenses projected to fall 26% to US$215 million.

Additionally, the company announced that its subsidiary Minera Las Bambas signed a US$125 million three-year revolving credit facility with CCB Asia, further strengthening financial flexibility. JPMorgan noted that improving balance sheet health raises the probability of dividend resumption, potentially serving as a catalyst for valuation re-rating.

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