The 2021 annual results of the Company were generally in line with market consensus and our expectations. Total revenue of the Company increased 53.89% yoy to RMB173.86 billion, and net profit attributable to shareholders surged 119.26% yoy to RMB5.11 billion.
We expect the global economy to grow moderately in 2022 and the annual average copper price to be around US$9,000/t. We expect molybdenum and tungsten price to grow moderately in 2022 as downstream consumption demand improves. We also expect cobalt price to rise in 2022 due to robust demand from electric vehicles.
In 2022, the Company plans to produce 12,800-15,100 tons of metal equivalent molybdenum concentrate, 6,100-7,200 tons of metal equivalent tungsten concentrate, 22,500-26,200 tons of mined copper from Northparke mine, 227,000-267,000 tons of mined copper and 17,500-20,500 tons of mined cobalt from Tenke mine. The Company plans to expand the production in Tenke mine.
Revise down TP to HK$5.30, but maintain "Accumulate".