BOCOM International maintained the purchase investment rating of Societe Generale Copper (00505-HK) and gave it a target price of HK$2.4. The company's earnings per share from 2010 to 2012 are expected to be $0.29, $0.35, and $0.41 respectively. Currently, the company's P/E is only 5 times, and the valuation advantage is obvious.

BOCOM said that in the first half of the year, the company achieved revenue of 1,398 million yuan, an increase of 99.5% over the previous year, and achieved net profit of 843 million yuan, an increase of 14.7% over the previous year, and achieved a basic income of 0.13 yuan per share. The reason for the sharp increase in revenue is that copper prices have risen sharply compared to the same period last year, but due to a slight decrease in processing fee levels, the company's profit growth has lagged behind. The company's production capacity will increase to 120,000 to 150,000 tons in the next three years, and there is still plenty of room for production improvement.

Societe Generale Copper fell 7.78% yesterday to close at HK$1.66.