Jefferies has maintained a "Buy" rating on CMOC (03993) with a target price of HK$25. For the company's A-shares (603993.SH), the firm set a target price of 26 yuan, also with a "Buy" rating. The report highlighted that CMOC's net profit after tax for the first quarter of 2026 reached 7.8 billion yuan, marking a 97% year-on-year increase and a 28% rise quarter-on-quarter, describing the performance as strong and in line with expectations. Copper output during the period was 188,000 tonnes, up 10% compared to the same period last year, while the company reaffirmed its full-year production guidance of 760,000 to 820,000 tonnes. Cobalt production remained at a normal quarterly level of around 30,000 tonnes, although sales in the first quarter were only 2,000 tonnes due to uncertainties in export procedures. Jefferies noted that market attention is focused on the impact of tightening sulfur supply and rising prices on copper production amid Middle East tensions. Management confirmed that the TFM mine is self-sufficient in sulfuric acid, while the KFM mine partially relies on external supply. The company's current sulfur inventory, including in-transit goods, is sufficient to support production until the third quarter of 2026, with no short-term operational impact. Unit costs for copper production decreased both year-on-year and quarter-on-quarter in the first quarter, primarily due to lower electricity costs.