JP Morgan Lifts Jiangxi Copper Target 46%, Slashes Angang Steel

Jiangxi Copper Upgraded With 46% Target Increase

JP Morgan revised its outlook on Chinese commodity producers, notably upgrading Jiangxi Copper's Hong Kong-listed shares (00358.HK) to 'Neutral' from 'Underweight'. The bank substantially raised its price target by 46% from HK$28 to HK$41, signaling renewed confidence in the copper sector. Similarly, Zijin Mining (02899.HK) maintained its 'Overweight' rating while its target price was lifted from HK$42 to HK$48.

The positive sentiment extended to lithium producers, even without a rating change. Ganfeng Lithium (01772.HK) and Tianqi Lithium (09696.HK) both held their 'Neutral' ratings, but their price targets were increased to HK$54 and HK$52, respectively. The market reacted positively to the adjustments, sending Ganfeng's stock up 5.58% and Tianqi's shares 5.22% higher.

Angang Steel Cut to 'Underweight' With HK$1.70 Target

In a contrasting move, JP Morgan downgraded its view on the steel industry. Angang Steel (00347.HK) was lowered to 'Underweight' from a previous 'Neutral' rating. The bank slashed its price target for the steelmaker by 26%, from HK$2.30 down to HK$1.70, reflecting a pessimistic outlook for the company. This bearish view was echoed in the rating for Yankuang Energy (01171.HK), which received an 'Underweight' rating and a target of just HK$6.50. The diverging ratings underscore a strategic shift by the bank, favoring base metals and battery materials over steel and coal within China's materials sector.