JIANGXI COPPER (00358) fell more than 4% in trading, with shares down 3.91% to HKD 30 at the time of writing, recording a turnover of HKD 262 million. The company recently reported its quarterly results, posting revenue of RMB 139.09 billion in Q3, up 14.09% year-on-year. Net profit reached RMB 1.849 billion, a 35.2% increase, while adjusted net profit attributable to shareholders rose 94.7% to RMB 1.91 billion. However, gross profit declined by RMB 1.1 billion quarter-on-quarter to RMB 4.08 billion, primarily due to lower copper concentrate processing fees.

Guosen Securities noted tightening global copper concentrate supply, with a widening gap between long-term contract processing fees (USD 21/ton) and spot rates (below USD -40/ton). While smelters relying solely on long-term contracts remain profitable, those utilizing spot purchases face margin pressure. For JIANGXI COPPER, its 2025 cathode copper production target stands at 2.37 million tons, with estimated output of 1.8 million tons in the first three quarters. With manageable Q4 production pressure and flexibility in adjusting copper concentrate and scrap usage ratios, the brokerage expects limited further downside from processing fees this quarter.