MMG (01208) opened higher by more than 3%. As of the time of writing, the stock was up 3.23%, trading at HK$11.52 with a turnover of HK$16.02 million. Morgan Stanley released a research report stating that MMG's preliminary 2025 results indicate its core profit performance is in line with expectations, and its operational fundamentals are improving. MMG expects its 2025 core profit to reach between US$700 million and US$730 million, which aligns with the bank's forecasts. After recognizing an impairment of US$280 million to US$300 million related to the Kinsevere project, the full-year net profit is projected to be between US$500 million and US$520 million. The primary reasons for the impairment include the local cobalt plant being under care and maintenance due to sales restrictions, unstable power supply, and uncertainties in the local fiscal policy. The report further noted that operations at MMG's other major mining areas remain stable, with continued normal production at the Las Bambas and Khoemacau mines. Supported by fundamentals such as tight global copper supply and a weaker US dollar, copper prices are expected to remain high, providing strong support for the company's overall profitability. The bank believes that although the impairment affects net profit in the short term, the company's core profitability is robust, and major operational challenges are being progressively addressed through financial provisions and tangible improvement measures, leaving the future profit growth trajectory clear. It maintains a positive view on MMG, expecting the company to benefit from strong copper prices and enhancements in its own operational efficiency.