JTGROUP(SH:601609) Zheng Quan Zhi Xing·2025-06-16 12:18Core Viewpoint - The credit rating agency maintains a stable outlook for Ningbo Jintian Copper Industry (Group) Co., Ltd. and its convertible bonds, reflecting the company's solid operational performance and market position in the copper processing industry [1][2]. Company Overview - Ningbo Jintian Copper Industry is a leading domestic copper processing enterprise with a comprehensive product range and significant market share [2][3]. - The company has expanded its production capacity, with a total capacity of 2.2524 million tons/year for copper and copper products as of the end of 2024 [8]. Financial Performance - The company reported a revenue of 124.16 billion yuan in 2024, representing a year-on-year increase of 12.36% [8]. - The gross profit margin for copper and copper products improved, reaching 2.36% in 2024 [8][9]. - The company has maintained a low bad debt ratio and high accounts receivable turnover efficiency, with accounts receivable turnover days increasing slightly from 17.01 days in 2022 to 20.23 days in 2024 [10]. Market Position and Industry Dynamics - The copper processing industry in China is characterized by a high dependence on imported copper ore, with an import dependency rate of 85% [6]. - The demand for copper in various sectors, including electricity, home appliances, and transportation, has been increasing, with electricity demand accounting for 46% of total copper demand in 2023 [6]. - The company has established a strong supply chain for raw materials, primarily sourcing cathode copper and recycled copper, with a procurement concentration of about 30% from the top five suppliers [11]. Investment Projects - The company is currently undertaking several major projects, including a 70,000-ton precision copper alloy rod project and an 80,000-ton precision copper pipe production project in Thailand, funded through self-raised capital and convertible bond proceeds [12][13]. Future Outlook - The credit rating agency anticipates that the company's credit quality will remain stable in the coming months, with a stable outlook for its credit rating [2][3].