<Earnings First Take> CMoC 4Q21 earning momentum continue (POSITIVE)
- CMoC has issued positive profit alert for FY2021. It expects net earnings to reach at least RMB4,704m for the period, primarily on higher products GP and metal trading volume increase.
- The results were slightly above market and in line with our expectation, with net profit substantially increased from RMB2,329m a year ago.
- Its expansion project in Congo was put into operation since July 2021 leading to an increase in the daily ore processing capacity by 10,000 tons, adding solid volume growth for the period.
- Although logistics in Africa was influenced by pandemic leading to certain shipment delay for 4Q21, the preliminary results implied earnings momentum has been sustained with 4Q earnings exceeding RMB1b.
- We have a BUY rating and TP HK$7.5.