00358 Should I Buy

The analyst rating from Morgan Stanley for JIANGXI COPPER is based on the expectation that the company will benefit from rising sulfuric acid prices due to a sulfur shortage. The report highlights that disruptions in shipping through the Strait of Hormuz could further tighten the sulfur market, which is already facing pressure from refinery production cuts and competition from the fertilizer industry. As sulfuric acid is a major by-product of JIANGXI COPPER's copper smelting, the anticipated increase in sulfuric acid prices serves as a positive catalyst for the company's performance, leading to an Overweight rating and a target price of HKD75.