The 2020 interim results of the Company were higher than marketconsensus and our expectations. Total revenue of the Company surged368.44% yoy to RMB46.74 billion, and net profit attributable to shareholdersincreased 24.73% yoy to RMB1.00 billion. The growth in net profit wasmainly attributed to trading business.
Maintain metal price assumptions unchanged. We expect metal prices tobe under pressure due to the global COVID-19 outbreak. We expectmolybdenum and tungsten price to decline moderately in 2020 due to weakdownstream consumption demand. Copper price is expected to be badly hitby the COVID-19 pandemic around the world, but cobalt is expected to beless impacted due to robust demand from electric vehicles.
Maintain mining output assumptions unchanged. In 2020, the Companyplans to produce 12,000-15,000 tons of metal equivalent molybdenumconcentrate, 7,000-9,000 tons of metal equivalent tungsten concentrate,24,000-29,000 tons of mined copper from Northparke mine, 163,000-200,000tons of mined copper and 14,000-17,000 tons of mined cobalt from Tenkemine. The production of the Company was stable in 1H20 and was in linewith its production plan, so we maintain mining output assumptionsunchanged.
Revise up TP to HK$2.85, upgrade to "Neutral".