The 2017 annual results of the Company was 28.9% and 33.3% lowerthan market consensus and our estimation, respectively. Total revenueof the Company increased 1.35% yoy to RMB 205.05 billion and net profitattributable to shareholders increased 104.57% yoy to RMB 1.60 billion.
We expect the global copper market to be more stable in 2018 and theaverage annual copper price to trade between US$ 6,000/t-US$ 6,500/t.
We expect gold price to remain flat in 2018 and to fluctuate around thelevel of US$ 1,250/oz. We expect the global copper market to remain at anormal level in 2018 after a significant surge in 2010-2013 and deep dive in2014-2016.
In 2018, the Company plans to produce 1.42 million tons of refinedcopper, 0.21 million tons of mined copper and 25.6 tons of gold.
According to the production plan of the Company, the output of major miningproducts in 2018 will generally remain at the same level comparing to that of2017.
Revise down TP to HK$ 11.73 but maintain “Neutral”。