The analyst rating from CICC is based on several key factors:
1. Strategic Stockpiling Demand: Both China and the US have initiated copper resource reserve plans, indicating a growing demand for strategic stockpiling of copper, which supports prices.
2. Industry Restocking: The report highlights that industry restocking, particularly during the spring peak season, combined with tight supply conditions, is likely to further boost copper prices.
3. Long-term Bull Market: CICC believes that the main wave of the copper industry bull market is on the rise, suggesting a positive long-term outlook for copper prices.
4. Short-term Opportunities: The report notes that short-term adjustments in the market present good opportunities for investment.
5. Focus on Leading Targets: CICC recommends focusing on companies with high copper mine self-sufficiency rates and strong potential for reserve expansion, production increases, and external mergers and acquisitions.
Overall, the combination of strategic initiatives from major economies, seasonal demand, and a bullish long-term outlook for the copper market underpins CICC's ratings and recommendations.
