Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company experienced a decline in net profit year-on-year due to tax provisions in the first half of 2024, leading to a downward revision of profit forecasts for 2024-2026. The expected net profits for 2024-2026 are HKD 5.45 billion, HKD 6.60 billion, and HKD 9.01 billion respectively, with corresponding EPS of HKD 0.07, HKD 0.09, and HKD 0.12. The PE ratios for 2024 are projected at 22.9, 18.9, and 13.8 times [3][4] - The company, as a leader in the uranium industry, is expected to benefit from the growth of nuclear power, maintaining a positive outlook for the second half of the year [3] Financial Performance Summary - In the first half of 2024, the company achieved revenue of HKD 40.73 billion, a year-on-year increase of 39%, while net profit was HKD 1.13 billion, a year-on-year decrease of 37%. The total expenses for sales, management, and finance were HKD 0.85 billion, a decrease of 4% year-on-year [4] - The company’s natural uranium equity production was 654 tons in the first half of 2024, with expectations of a total production of 1,288 tons for the year. Investment income for the period was HKD 4.47 billion, slightly below expectations due to unsold uranium from a subsidiary [5] - The global nuclear power capacity is projected to grow significantly, with an expected increase of 45% by 2035, which is anticipated to drive up uranium prices in the long term [6] Key Financial Metrics - The company’s projected financial metrics for 2024-2026 include: - Revenue: HKD 83.43 billion in 2024, with a year-on-year growth of 13.23% - Net Profit: HKD 5.45 billion in 2024, with a year-on-year growth of 9.57% - EPS: HKD 0.07 in 2024, with a PE ratio of 22.9 [7] - Current stock price is HKD 1.640, with a market capitalization of HKD 124.65 billion [8]

Financial Performance - The company's revenue for the six months ended June 30, 2024, was approximately HKD 4,072.65 million, representing an increase of about 39% compared to the same period in 2023[2]. - The profit attributable to the company's owners for the same period was approximately HKD 113.12 million, a decrease of about 37% compared to HKD 179.69 million in 2023[3]. - Basic and diluted earnings per share for the period were approximately HKD 1.49, down from HKD 2.36 in the same period last year, reflecting a decline of about 37%[2]. - The total comprehensive income attributable to the company's owners for the period was HKD 62.36 million, down from HKD 201.55 million in the same period last year[4]. - The company reported a gross loss of HKD 56.43 million for the period, contrasting with a gross profit of HKD 186.66 million in the same period last year[3]. - The company reported significant revenue contributions from major customers, with Customer B1 generating HKD 1,590,838 thousand in the first half of 2024, while Customer C1 contributed HKD 892,345 thousand[20]. - The company incurred a total tax expense of HKD 210,756 thousand for the first half of 2024, compared to HKD 55,795 thousand in the same period of 2023, reflecting a significant increase[22]. - The company reported a profit of HKD 113,122,000 for the six months ended June 30, 2024, compared to HKD 179,692,000 for the same period in 2023, representing a decrease of approximately 37%[32]. - The company’s net profit for the period was HKD 113,000,000, a decrease of approximately 37% compared to the previous year, mainly due to higher income tax expenses[74]. Assets and Liabilities - The total assets as of June 30, 2024, amounted to HKD 7,679.10 million, compared to HKD 6,750.36 million as of December 31, 2023[5]. - Total liabilities increased to HKD 3,733,288 thousand as of June 30, 2024, compared to HKD 2,870,172 thousand as of December 31, 2023, reflecting a rise of approximately 30%[16]. - Non-current assets as of June 30, 2024, were valued at HKD 4,321,487 thousand, slightly down from HKD 4,536,296 thousand as of December 31, 2023[19]. - Current liabilities increased by approximately 59% to HKD 2,210 million from HKD 1,391 million as of December 31, 2023, mainly due to bank borrowings for business expansion[79]. - The company's capital debt ratio (total liabilities/equity) rose to approximately 95% from 74% as of December 31, 2023[81]. Inventory and Cash Management - The company's inventory increased significantly to HKD 1,302.79 million from HKD 697.25 million in the previous year, indicating a rise of approximately 87%[5]. - The company’s cash and bank balances stood at HKD 1,140.32 million, an increase from HKD 1,017.24 million as of December 31, 2023[5]. - Accounts receivable increased to HKD 830,738,000 as of June 30, 2024, from HKD 450,750,000 as of December 31, 2023, reflecting an increase of approximately 84%[34]. - Cash and cash equivalents amounted to HKD 1,140,323,000 as of June 30, 2024, compared to HKD 1,017,239,000 as of December 31, 2023, showing an increase of about 12%[38]. - The group has USD 1,604 million in unutilized credit facilities as of June 30, 2024, providing sufficient cash support for operations[84]. Operational Highlights - The company’s operations are primarily located in China, Kazakhstan, Canada, and the UK, with significant revenue generated from these regions[18]. - The company completed the procurement and sales of 564 tU of uranium products, generating trade revenue of approximately HKD 893 million, with an average sales price of $78.47 per lb U3O8[57]. - The group signed new contracts for the sale of 3,665 tU of natural uranium, with 90% of sales volume coming from European customers[57]. - The group’s share of profits from the Shiyou Company increased by 195% year-on-year to HKD 208 million, attributed to rising uranium prices and increased sales volume[59]. - The group’s share of profits from the Ao Company rose by 481% year-on-year to HKD 234 million, driven by higher uranium prices[60]. Market and Industry Trends - The company anticipates stable growth in natural uranium market demand due to increasing global emphasis on energy security and independence[51]. - In the first half of 2024, the average spot price of natural uranium was $84.38 per lb U3O8, a decrease of 7.3% from the beginning of 2024, while the highest spot price reached $106 per lb U3O8[52]. - The long-term contract price increased by 16.9% to an average of $79.50 per lb U3O8 as of June 2024, driven by supply-side production growth not meeting expectations[52]. - Global uranium production in 2023 was approximately 54,390 tU, an increase of 6.3% compared to 2022[52]. Corporate Governance and Compliance - The unaudited interim financial statements for the six months ending June 30, 2024, have been reviewed by the audit committee and external auditors, confirming compliance with applicable accounting standards and regulations[92]. - The audit committee held one meeting during the reporting period to review financial reporting and internal controls[92]. - The company has adopted a standard code of conduct for securities trading, with all directors confirming compliance during the reporting period[93]. - The roles of the chairman and CEO are separated, with Mr. Wang Xianfeng assuming both roles from July 5, 2024, to ensure leadership consistency[94]. - The company has adhered to all applicable corporate governance code provisions during the reporting period[94].

Investment Rating - The report maintains an "Outperform" rating for CGN Mining, with a target price of HK$3.39 per share, representing a potential upside of 21% [18][13][19]. Core Views - CGN Mining is positioned to capitalize on the global recovery of nuclear power and the increasing demand for natural uranium, aiming to become a leading international supplier of natural uranium [15][16]. - The company achieved significant revenue growth in 2023, with operating income reaching HK$7,368 million, a year-on-year increase of 101.04%, primarily driven by a substantial rise in natural uranium revenue [15][16]. - The global uranium market is experiencing a supply shortage, with demand projected to reach approximately 76,000 tons of uranium (tU) in 2024, while supply is expected to be only around 60,000 tU [17][18]. Summary by Sections Company Overview - CGN Mining is a subsidiary of CGNPC, the world's third-largest nuclear power group, and serves as the sole platform for overseas uranium resource development and financing under CGNPC [15][16]. Market Dynamics - The global uranium market is facing a supply-demand imbalance, exacerbated by the depletion of uranium mines in Kazakhstan and the expected reduction in the lifespan of active mines starting in 2028 [17][18]. - The recent U.S. legislation banning the import of Russian uranium is anticipated to increase demand for uranium in the U.S. and other Western countries, further driving up nuclear fuel costs [16][18]. Production Capacity - CGN Mining's current production in Kazakhstan is maintained at 80% of the allowable level, with plans to increase this to over 90% by 2024-2025. The total production capacity is projected to reach 3,969 tons/year by 2025 [18][19]. Financial Projections - The company’s projected main operating revenues for FY24-26 are HK$9,203 million, HK$11,267 million, and HK$13,162 million, respectively, with corresponding net profits of HK$543 million, HK$642 million, and HK$745 million [18][19].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Insights - The company holds significant uranium resources, being a natural uranium supplier with a 49% stake in two uranium companies in Kazakhstan and a 13.3% stake in Fission Uranium Corp [2]. - The demand for uranium is steadily increasing due to the company's supply to nuclear power plants operated by China General Nuclear Power Group, which has a substantial operational capacity [2][5]. - A strong global recovery in nuclear power is anticipated, with a projected increase in uranium demand to 188,000 tons by 2050, while the current supply is only 49,000 tons [2]. - The company is expected to see revenue growth driven by rising uranium prices, with forecasts indicating significant increases in revenue and net profit from 2024 to 2026 [2]. Summary by Sections Section 1: Uranium Resource Holdings - The company possesses "4+1" uranium resources, with a total equity resource of 39,000 tons of uranium and an equity production of 1,227 tons in 2023 [2][6]. Section 2: Supply and Price Outlook - The global uranium supply is expected to remain tight, with prices projected to stay high due to various geopolitical factors and production challenges [2][10]. Section 3: Competitive Position - The company ranks among the top producers globally, with production costs lower than comparable companies, enhancing its competitive edge [2][3]. Section 4: Financial Projections - Revenue forecasts for 2024-2026 are projected at HKD 12.38 billion, HKD 13.65 billion, and HKD 15.16 billion, respectively, with net profits expected to grow significantly during the same period [2][10].

Summary of Conference Call Transcript Industry or Company Involved - The discussion revolves around the nuclear power industry and its supply chain dynamics, particularly focusing on production capacity and demand. Core Points and Arguments - The potential increase in production capacity is estimated to reach approximately 70,000 tons, although there remains a gap between this capacity and the demand from the nuclear power sector [1] - The largest incremental supply is expected to come from by-products in Kazakhstan and Canada, especially during periods when natural oil prices were relatively low [1] Other Important but Possibly Overlooked Content - The overall incremental supply from other sources is considered to be relatively small compared to the contributions from Kazakhstan and Canada [1]

Investment Rating - The report initiates coverage with an "Outperform" rating for CGN Mining Company (1164 HK) [9][34]. Core Views - CGN Mining is positioned to benefit from the recovery of the global nuclear power sector and the continuous growth in natural uranium demand, aiming to become a leading international supplier of natural uranium [5][10]. - The company has a strong financial performance, with significant revenue growth driven by its natural uranium business, which accounted for nearly all of its revenue in 2023 [14][28]. - The global natural uranium market is experiencing upward price trends due to supply shortages and increased geopolitical tensions, supporting a bullish outlook for uranium prices in the medium to long term [21][28]. Summary by Sections 1. Company Positioning - CGN Mining is a subsidiary of CGN Group, the largest nuclear power group in China and the third largest globally, focusing on the development and trade of natural uranium resources [10][19]. 2. Financial Performance - In 2023, CGN Mining achieved a revenue of HKD 7,368 million, a year-on-year increase of 101.04%, primarily from natural uranium sales [14][19]. - The company’s net profit decreased by 3.44% to HKD 497.1 million, indicating potential concerns regarding cost control and profitability [14][19]. 3. Global Uranium Price Trends - The report highlights a significant increase in uranium prices, with expectations for continued growth due to supply constraints and rising demand for nuclear energy [21][28]. - The average sales price for natural uranium is projected to rise to USD 79.5, USD 81.4, and USD 82.6 per pound from 2024 to 2026 [6][32]. 4. Internal Synergies with CGN Group - CGN Mining benefits from its close ties with CGN Group, which has a projected demand for approximately 6,120 tons of natural uranium in 2024, indicating a substantial supply gap compared to the company's current sales volume [6][31]. - The company has secured flexible pricing agreements that will allow it to capitalize on rising uranium prices [6][32]. 5. Profit Forecast and Valuation - The forecast for FY24-26 anticipates revenues of HKD 9,203 million, HKD 11,267 million, and HKD 13,162 million, with corresponding net profits of HKD 543 million, HKD 642 million, and HKD 745 million [6][33]. - A DCF valuation model estimates a target price of HKD 2.81 per share [6][33].

Financial Performance - Revenue for 2023 reached HK$7,363,123, a 102% increase from HK$3,648,680 in 2022[14] - Operating profit for the year was HK$690,932, up from HK$628,842 in 2022, representing a 9.4% increase[14] - Profit for the year amounted to HK$497,099, slightly down from HK$514,915 in 2022, a decrease of 3.2%[14] - The gross profit margin decreased to 1.79% in 2023 from 4.06% in 2022[145] - EBITDA increased to HK$692.81 million in 2023, up from HK$630.70 million in 2022[145] - The EBITDA/Revenue ratio fell to 9.41% in 2023 compared to 17.29% in 2022[145] - The net profit margin decreased to 6.75% in 2023 from 14.11% in 2022[145] - The Group's profit for 2023 was HK$497 million, a year-on-year decrease of 3% from HK$515 million in 2022[148] - The cost of sales for 2023 was HK$7,231 million, an increase of 107% from HK$3,501 million in 2022, attributed to higher business volume in the natural uranium market[153] Assets and Liabilities - Total assets as of December 31, 2023, were HK$6,750,363, a decrease from HK$6,865,707 in 2022[15] - Total liabilities decreased to HK$2,870,172 from HK$3,517,568 in 2022, a reduction of 18.4%[15] - The equity attributable to owners of the Company increased to HK$3,880,191 from HK$3,348,139 in 2022, a growth of 15.8%[15] - Net current assets increased by 115% to HK$823 million as of December 31, 2023, compared to HK$383 million in 2022, attributed to the repayment of bank borrowings[167] - Total current assets were HK$2,214 million as of December 31, 2023, representing a decrease of 10% from HK$2,447 million in 2022, mainly due to reduced inventories[169] - The Group's total non-current assets increased by 3% to HK$4,536 million as of December 31, 2023, from HK$4,419 million in 2022, primarily due to increased interests in joint ventures and associates[172] Market and Industry Trends - The international spot price of natural uranium has been rapidly fluctuating upwards, with prices expected to exceed US$100/lb by January 2024[17] - The global nuclear power industry is experiencing a recovery, leading to increased demand for uranium resources[17] - The World Nuclear Association raised its global installed nuclear power capacity forecast to 686 GWe by 2040, an increase of 12% compared to the previous forecast[34] - The International Energy Agency indicated that nuclear power generation capacity in Asia will account for 30% of the world's electricity generation by 2026, up from 28% in 2022[35] - Global natural uranium demand for nuclear power plants is expected to total 103,808 tU by 2035, representing a 36% increase from the end of 2023[110] Production and Operations - The Company plans to enhance its primary exploration capacity and acquire more high-quality equity sources in 2024[25] - The Company aims to control production costs and achieve its annual production targets while developing the PLS project[25] - The South Tortkudu mine in Kazakhstan is expected to start production by the end of 2023, with a projected capacity of 2,600 tU/year in 2024-2025[66] - The PLS project is expected to enter production in 2028 with a design capacity of 30,000tU and a lifespan of 10 years, having recently submitted a construction application to the Canadian Nuclear Safety Commission[71] - The Semizbay Mine achieved an actual uranium extraction of 976tU, completing its annual production tasks by 100.2%, with a production cost of US$27/lbU3O8[83][89] Strategic Initiatives - The Company aims to strengthen its business dealings with global nuclear power plant owners and actively explore new trading opportunities while controlling operational risks[129] - The Company will pursue high-quality uranium project opportunities globally and seek strategic partnerships with renowned uranium producers and traders to ensure stable uranium resources for nuclear power generation[130] - The Company is exploring medium and long-term equity incentive programs to enhance management participation and effectiveness[22] - The Company will implement medium and long-term incentive plans, such as a share option scheme, to enhance employee loyalty and motivation towards achieving strategic objectives[131] Investor Relations and Market Capitalization - The Company's market capitalization increased by 112% from the beginning of the year, reflecting growing attention from individual and institutional investors[20] - The proportion of equity interest held by institutional investors increased from 11.44% at the end of 2022 to 15.39% at the end of 2023[106] - The company enhanced investor relations through dual channels of offline and online communication, achieving satisfactory results[97] - The company delivered keynote speeches at significant investor summits, highlighting its strategies in the natural uranium market[104] Challenges and Risks - The Company is facing challenges in raw material procurement and production scheduling in Kazakhstan due to inflation and geopolitical factors[23] - The company faced challenges due to the US Federal Reserve's interest rate hikes and market volatility but managed to exceed performance indicators[95] - The Group's finance costs increased by 113% to HK$131 million in 2023, up from HK$62 million in 2022, primarily due to a year-on-year increase in interest-bearing debt and high USD interest rates[167] Environmental, Social, and Governance (ESG) - The Company released its first standalone ESG report, demonstrating its commitment to social responsibility and a low-carbon corporate image[19]

中广核矿业（1164 HK） | 2024年3月25日 香港股市 | 新能源 | 核燃料 公司点评 中广核矿业（1164 HK） 未评级 FY23 铀矿业务持续增长 股票数据（更新至2024年3月22日） 2023年盈利逊预期 现价 1.65港元 2023 年股东净利润同比下跌 3.5%至 5.0 亿元(港币，下同)，低于市场预测的 5.6 亿元 10.6%，主因(一)天然铀贸易业务价差收窄导致公司毛利率由FY22 的4.1%下跌至FY23 的 总市值 12,541.13 百万 港元 1.8%，公司毛利同比下跌 10.9%至1.3 亿元；(二)财务开支同比上涨113.1%至 1.3 亿元； 流通股比例 27.78% (三)去年联营公司奥公司就 2018-20 年期间违规开采铀矿向哈萨克斯坦政府支付 2.0 亿元 已发行总股本 7,600.68百万 罚款。因违规发生在2021年中广核矿业参股前，奥公司应转回应占款项但尚未进行。 52周价格区间 0.78-2.12港元 天然铀矿主业仍表现亮丽 3个月日均成交额 63.53百万 港元 2023 年公司天然铀矿主业 (合营及联营企业运营)仍表现亮丽。铀矿总产量(tU) ...

h 股 c r a 票 e s e R 研 y tiu [ FT la ab sle h_T Nitl oe] t e: CGN Mining (01164 HK) Kevin Guo 郭勇 究 q (852) 2509 5317 E 快讯： 中广核矿业 (01164 HK) yong.guo@gtjas.com.hk 25 March 2024 [Table_Summary] 铀的基本面维持强劲 e  我们维持中广核矿业（“公司”）“买入”的投资评级，目标价为 1.85 港元。我们的目标价对应9.4倍和8.7倍2024-2025 快 to N 年市盈率。我们预计铀价将在2024年因强劲的基本面而继续上升，公司的矿产品产量将稳步增长。 讯 h s a lF  我们预计铀价上升仍将是主要的利润驱动因素。长期而言，铀的供需基本面预计维持强劲，我们预计铀价在2024年 将继续上升并维持高位。铀矿行业投资不足将对全球铀供应产生长期影响，未来5年铀产量增长有限。但随着核电装 机的增长，全球铀需求将稳步增长。世界各国政府已经更改了核电相关政策，特别是在风电和太阳能发电占比上升以 及需要更加稳定的电源之时。因此，随着风 ...

智通财经APP获悉，中广核矿业(01164)近期连续反弹，早盘再涨超4%。截至发稿，涨4.85%，报1.73港 元，成交额2175.82万港元。 消息面上，中广核矿业发布年度业绩，该集团取得营业额73.63亿港元，同比增加101.8%；公司拥有人 应占溢利4.97亿港元，同比减少3.46%。中金公司指出，公司2023年业绩低于预期，主要由于奥公司罚 款尚未转回和矿山生产成本提升。 该行称，中长期天然铀价格有望延续上行趋势。受到Cameco增产规划等因素影响，天然铀现货价格从 前期高点的106美元/磅回调至3月20日的88美元/磅。虽然短期有所调整，但天然铀价格长期向好趋势不 改，一是全球核电需求复苏将是大势所趋；二是全球天然铀供给扰动频繁；三是哈萨克斯坦的铀矿正在 逐步面临枯竭。 ...