Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The report highlights that the uranium market experienced increased volatility in the first half of 2025, with rising costs and low-price contract deliveries suppressing the company's performance [5][7] - The company reported a significant decline in revenue and net profit for the first half of 2025, primarily due to fluctuations in international uranium trade contract prices and increased operational costs [7] - The report anticipates a recovery in uranium prices driven by production cuts from leading companies and upcoming industry events that may refocus attention on the strategic role of nuclear energy in the energy transition [7] Financial Performance and Forecast - The company achieved a revenue of 7,363.12 million HKD in 2023, with a projected increase to 9,112.95 million HKD in 2025, reflecting a growth rate of 5.7% [6] - The net profit forecast for 2025 is adjusted to 381.94 million HKD, with a year-on-year growth of 11.7% [6][7] - The earnings per share (EPS) is expected to remain stable at 0.05 HKD for 2025, with a projected increase to 0.12 HKD by 2026 [6][7] - The report indicates a return on equity (ROE) of 8.9% for 2025, improving to 17.9% by 2026 [6] Market Dynamics - The global uranium market is characterized by a tight supply-demand balance, with increased procurement activity from nuclear power owners leading to a 24% growth in spot trading volume [7] - The report notes that major nuclear countries are accelerating their nuclear energy supply chain strategies, which may support long-term uranium price stability [7] - The upcoming World Nuclear Association conference is expected to act as a catalyst for the industry, emphasizing the importance of uranium resources in the next decade [7]

Core Viewpoint - The company's 1H25 performance fell short of expectations, primarily due to declining natural uranium spot prices and losses in international trade business [1][2]. Financial Performance - The company reported a revenue of HKD 1.71 billion in 1H25, a year-on-year decrease of 58% - The net profit attributable to shareholders was a loss of HKD 67.57 million, marking a shift from profit to loss compared to the previous year [1]. - The average sales price for self-produced trade was USD 71.1 per pound, while the average cost was USD 72.85 per pound, resulting in a slight loss in self-produced trade [1]. Production and Sales - The company's equity natural uranium production was 632 tons (tU) in 1H25, with self-produced trade volume at 526 tU [1]. - The company achieved a production completion rate of 105% for the Shiyou company, producing 428 tU of natural uranium [1]. - The production costs for Shiyou's mines were USD 32.5 per pound and USD 27.7 per pound for the Yimin mine [1]. International Trade Business - The international trade business faced losses due to unit sales prices ranging from USD 58 to 61 per pound and costs between USD 68 to 74 per pound, leading to a negative impact on short-term profits [2]. - The average inventory cost exceeded contract selling prices, contributing to the losses [2]. Development Trends - The new sales framework agreement is expected to benefit from the upward trend in uranium prices, with a pricing structure that includes a higher fixed price and a greater proportion of spot pricing [2]. - The company plans to revise its 2026 production plan, reflecting the need for higher prices to stimulate capacity utilization [2]. Profit Forecast and Valuation - The company maintains its profit forecast, with the current stock price corresponding to a P/E ratio of 33.6 for 2025 and 20.6 for 2026 [3]. - The target price has been raised by 25% to HKD 3.14, reflecting a potential upside of 16% from the current stock price [3].

Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, primarily due to fluctuations in natural uranium international trade contract prices and inventory accounting methods [1][3] Group 1: Company Performance - The company recorded a revenue of 1.709 billion HKD for the first half of 2025, a year-on-year decrease of 58% [1] - The net profit attributable to shareholders was -68 million HKD, representing a year-on-year decline of 160% [1] - The company's uranium production was stable, with 428 tons from Company X and 923 tons from Company Y, showing a year-on-year change of -10% and +8% respectively, leading to a total production increase of 1.2% [1] Group 2: Market Dynamics - The largest natural uranium producer, Kazatomprom, announced a 9.3% reduction in its nominal production for 2026, which is expected to maintain a balance in supply and demand [2] - The Jackson Hole meeting indicated a potential interest rate cut in September, which could improve the financing environment for physical uranium funds [2] - The upcoming WNA conference may further strengthen global consensus on nuclear power development, potentially boosting the spot market and encouraging nuclear operators to replenish their stocks [2] Group 3: Industry Outlook - The World Bank lifted its ban on nuclear power financing in June 2025, supporting new nuclear projects and the deployment of small modular reactors (SMRs) [2] - As of the first half of 2025, the global operational nuclear power capacity was 376 GW, with ongoing construction of 65 GW [2] - The long-term contract uranium price increased by 2 USD to 82 USD/lbs in July, reflecting positive expectations from market participants regarding the fundamentals of natural uranium [2] Group 4: Profit Forecast and Valuation - The company maintains profit forecasts for 2025-2027 at 348 million, 1.039 billion, and 1.123 billion HKD, with corresponding EPS of 0.05, 0.14, and 0.15 HKD [3] - The valuation has been adjusted to 21.5x PE, with a target price raised to 3.01 HKD, reflecting market expectations for uranium prices [3] - The rating has been downgraded to "Accumulate" due to recent stock price increases and the market's partial reflection of positive factors [3]

Group 1 - The company reported a significant decline in revenue and net investment income for H1 2025, with revenue at 1.709 billion HKD, down 58.4% year-on-year, and a net loss of 68 million HKD, marking a shift from profit to loss [1] - The decline in performance is attributed to the international trade of natural uranium experiencing price volatility, leading to a decrease in gross profit due to inventory accounting methods and a drop in investment income from associated companies [1] - The company achieved a uranium production of 1,354.7 tons U, a 1.5% increase year-on-year, with a production completion rate of 110.5%, while mining costs decreased year-on-year [1] Group 2 - The world's largest uranium mining company, Kazatomprom, has revised its 2026 production guidance down by approximately 9.4% to 29,697 tons U, emphasizing a strategy focused on long-term market value rather than volume growth [2] - Kazatomprom's decision to lower production is expected to positively impact uranium prices, as the company holds a significant market share, accounting for 43% of global natural uranium production in 2022 [2] Group 3 - A new sales framework agreement has been approved, which will increase the baseline price for uranium sales from 61.78 to 94.22 USD per pound U3O8 starting in 2026, enhancing the company's earnings elasticity [3] - The new agreement anticipates a significant increase in contracted uranium sales volumes for the years 2026-2028 compared to 2024, with additional buffer provisions for potential resource increases [3] - The company is expected to benefit from the new pricing mechanism and the anticipated rise in uranium prices, leading to accelerated earnings growth starting in 2026 [3]

Summary of China General Nuclear Power Corporation Mining Conference Call Company and Industry Overview - **Company**: China General Nuclear Power Corporation Mining (中广核矿业) - **Industry**: Natural Uranium Mining and International Trade Key Points and Arguments Financial Performance - In the first half of 2025, the company achieved an equity production of 6,650 tons of uranium, exceeding its production target by 10% [4] - Revenue decreased by 58% year-on-year to 1.71 billion HKD, primarily due to a significant reduction in trade volume and a more than 20% decline in natural uranium market prices [2][7] - The company reported a net loss of 67.57 million HKD, influenced by high financial costs and the delivery of low-price contracts [2][7] - Investment income from the resource sector fell by 31% due to declining oil prices, while overall resource sector revenue decreased by 18% [2][10] Market Dynamics - The global economy showed divergent growth trends in the first half of 2025, with high interest rates and increased volatility in exchange rates and commodity prices [3] - The natural uranium market is transitioning to a balance dominated by medium- to long-term contracts, with a tight supply-demand structure [3][13] - The willingness of nuclear power owners to procure uranium has increased, but long-term contract signing has slowed down [4][13] Strategic Adjustments - The company has adjusted its business strategy to reduce delivery volumes in response to losses from international trade [5][11] - New contract volumes decreased by approximately 5%, but the profit margin between sales and purchase prices increased significantly, leading to a trade profit of 289 million HKD from pending contracts [12] - The company plans to continue developing overseas oil resources and enhance operational management and risk control [6][8] Future Outlook - The company expects continued growth in the natural uranium market post-2026, driven by demand from Kazakhstan, Africa, and Canada [16] - The global cost structure is anticipated to rise due to inflation and tax policies affecting production [16] - The company aims to maintain a competitive edge in the global natural uranium market through strategic partnerships and resource development [19] Challenges and Risks - The company faces challenges from rising sulfuric acid prices and geopolitical uncertainties affecting supply chains [9][20] - The international trade business incurred significant losses, and the company is evaluating its strategy to mitigate future risks [23][24] - The potential for increased competition in the uranium market exists, particularly if oil prices rise significantly [26] Additional Insights - The new sulfuric acid plant in Kazakhstan, expected to be operational by 2027, will alleviate supply issues and stabilize prices [30] - The company is actively exploring new resource opportunities and enhancing its project pipeline to ensure long-term supply [26][31] - The development of fourth-generation nuclear technology is seen as a long-term opportunity, but the immediate demand for natural uranium will remain strong [34] This summary encapsulates the key insights from the conference call, highlighting the company's financial performance, market dynamics, strategic adjustments, future outlook, challenges, and additional insights into the uranium mining industry.

Investment Rating - The report maintains a "Buy" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [6]. Core Views - The company's performance in H1 2025 was under pressure, with a significant decline in revenue and net investment income, leading to a loss of 0.68 billion HKD compared to a profit in the previous year [1]. - The decline in performance is attributed to fluctuations in international trade contract prices for natural uranium and a drop in uranium prices, which negatively impacted investment income from associated companies [1][2]. - The company is expected to benefit from a new sales framework agreement approved by shareholders, which will enhance revenue starting in 2026 due to increased pricing and sales volume [4]. Summary by Sections Financial Performance - In H1 2025, the company reported revenue of 1.709 billion HKD, a year-on-year decrease of 58.4%, and a net investment income of 306 million HKD, down 31.5% [1]. - The company recorded a loss of 68 million HKD, reversing from a profit in the previous year [1]. Production and Cost Management - The company achieved a natural uranium production of 1,354.7 tons in H1 2025, a slight increase of 1.5% year-on-year, with a production completion rate of 110.5% [2]. - The average production costs for the associated mines varied, with some showing increases while others decreased, indicating mixed cost management outcomes [2]. Market Outlook - The largest uranium mining company, Kazatomprom, plans to reduce its production guidance for 2026, which is expected to positively impact uranium prices due to supply-demand alignment [3]. - The new sales framework agreement will adjust the baseline price for uranium sales from 61.78 to 94.22 USD per pound, enhancing the company's revenue potential starting in 2026 [4]. Earnings Forecast - The projected net profit for the company is expected to rise significantly from 387 million HKD in 2025 to 996 million HKD in 2026, reflecting a growth rate of 157.6% [5]. - The earnings per share (EPS) is forecasted to increase from 0.05 HKD in 2025 to 0.13 HKD in 2026, with a corresponding price-to-earnings (P/E) ratio dropping from 53 to 21 [5].

Core Viewpoint - China General Nuclear Power Corporation (CGN) Mining reported a significant decline in its interim results for the six months ending June 30, 2025, with a revenue of HKD 1.709 billion, representing a year-on-year decrease of 58.05% [1] Financial Performance - The company recorded a loss attributable to shareholders of HKD 67.57 million, compared to a profit of HKD 113 million in the same period last year [1] - Earnings per share were reported at a loss of HKD 0.89 [1] Reasons for Decline - The decline in profit is primarily attributed to substantial fluctuations in the international trade contract prices of natural uranium, coupled with the impact of inventory accounting using the weighted average cost method, leading to unit sales costs exceeding the unit sales prices during the period [1] - Additionally, the drop in natural uranium prices adversely affected the performance of an associated company and a joint venture, resulting in decreased contributions compared to the same period in 2024 [1]

公告称，溢利下降的主要原因是：一方面，受天然铀国际贸易合约价格大幅波动，叠加存货按加权平均 成本法核算的影响，本集团旗下中广核国际销售公司的天然铀销售业务中的单位销售成本高于当期执行 的单位销售价格，进而导致本集团天然铀贸易毛利较2024年同期下降;另一方面，受天然铀价格回落影 响，本集团应占的一间合营企业及一间联营公司业绩较2024年同期下降。 智通财经APP讯，中广核矿业(01164)发布截至2025年6月30日止6个月中期业绩，该集团取得营业额 17.09亿港元，同比减少58.05%;公司拥有人应占亏损6757万港元，去年同期则取得溢利1.13亿港元;每股 亏损0.89港仙。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：01164） 截至2025年6月30日止六個月之中期業績公告 | 摘要 | | | | --- | --- | --- | | | （未經審核） | | | | 截至6月30日止六個月 | | | | 2025年 | 2024年 | | | 千港元 | 千港元 | | 營業額 | 1,708,681 | 4,072,652 | | 本公司擁有人應佔（虧損）╱溢利 | (67,570) | 113,122 | | 每股（虧損）╱盈利 | | | | －基本 | (0.89)港仙 | 1.49港仙 | | －攤薄 | (0.89)港仙 | 1.49港仙 | | 每股中期股息 | 無 | 0.3港仙 | | • 報告期內本集團營業額約1,709百萬港元，較2024年同期下降約58%。 | | | | • 報告期內本公司擁有人應佔虧損約68百萬港元，較2024年同期 ...

Core Viewpoint - Zhongyin International maintains a buy rating for CGN Mining (01164), believing that the company's losses in the first half of the year are likely due to seasonal factors, which could restore investor sentiment [1] Production Guidance - The most notable adjustment in the performance of Huaneng Uranium is the downward revision of its nominal capacity for 2026 from 32,777 tons of uranium (85 million pounds) to 29,697 tons of uranium (77 million pounds), a 10% reduction [2] - This reduction of approximately 3,000 tons of uranium is primarily due to adjustments in the joint venture Budenovskove, signaling that the world's largest uranium producer is not prepared to restore full production at current market prices [2] - The new guidance reflects that uranium mining companies are gaining greater bargaining power in pricing negotiations, as there have been more tender activities in the market recently, which is rare during the summer months in previous years [2] Infrastructure Readiness - The downward revision of the 2026 capacity guidance contrasts with the progress made in production infrastructure, including the commissioning of a new processing plant with a capacity of 2,000 tons of uranium by the joint venture KATCO [3] - A new sulfuric acid plant is under construction, expected to be operational by the second quarter of 2027, with the company believing that the sulfur shortage issue has been largely resolved [3] Seasonal Sales Fluctuations - Despite a 13% year-on-year increase in total production, Huaneng Uranium's uranium sales volume for the first half of 2025 decreased by 2% to 7,625 tons due to customer delivery scheduling [4] - The seasonal factors in sales may also be a reason for CGN Mining's profit warning for the first half of 2025, with the company maintaining its full-year sales guidance of 17,500-18,500 tons of uranium, expecting sales volume to catch up in the second half of 2025 [4]