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MMG: Strong Growth Prospects and Attractive Valuation Drive Buy Rating

MMG: Strong Growth Prospects and Attractive Valuation Drive Buy Rating

In a report released today, Eunyoung Lee from DBS maintained a Buy rating on MMG (MMLTFResearch Report), with a price target of HK$3.50.

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Eunyoung Lee has given his Buy rating due to a combination of factors including MMG’s strong growth prospects and attractive valuation metrics. The company is expected to achieve a 70% compound annual growth rate in earnings from 2024 to 2026, significantly outpacing its peers, driven by increased copper sales from new developments and strategic acquisitions.
Additionally, MMG is well-positioned as a proxy for copper, with a substantial portion of its revenue derived from this metal, which is anticipated to face a supply deficit by 2025. The company’s operations are expected to normalize, reducing net gearing and enhancing growth potential through mergers and acquisitions. Furthermore, MMG is expanding into the nickel market, which adds to its growth prospects, while its current trading multiples are considered attractive compared to industry peers.

According to TipRanks, Lee is a 3-star analyst with an average return of 6.4% and a 66.67% success rate.

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