North Copper(SZ:000737) Zheng Quan Shi Bao Wang·2025-08-18 05:34Core Viewpoint - Northern Copper Industry reported a strong performance in the first half of 2025, with revenue of 12.811 billion yuan and a net profit of 487 million yuan, reflecting year-on-year growth of 2.81% and 5.85% respectively. The company demonstrated strong profitability resilience through high growth in precious metals and breakthroughs in deep processing capacity, supported by resource endowment, technological upgrades, and governance optimization [1]. Revenue and Profitability - Precious metals business became the core growth driver, achieving revenue of 2.529 billion yuan, a year-on-year increase of 52.04%, accounting for 19.74% of total revenue with a gross margin of 13.12%, significantly higher than the 8.22% of cathode copper [2]. - Sulfuric acid business also performed well, with revenue of 102 million yuan, a year-on-year increase of 197.33%, compensating for a 7.85% decline in cathode copper revenue. Product structure adjustments led to improved profitability quality [2]. - R&D expenses reached 26.463 million yuan, up 48.60% year-on-year, directly driving higher gross margins for new products compared to traditional ones by 3-5 percentage points. The company’s profitability is primarily driven by core profits, contributing 97.8% to net profit, with non-recurring gains accounting for less than 3% [2]. Resource and Technological Synergy - As the largest copper enterprise in North China, Northern Copper holds 1.2987 million tons of copper metal and has an annual ore processing capacity of 9 million tons, allowing for significant cost advantages [3]. - The company employs internationally advanced natural caving methods in mining, reducing mining costs by 15%. The manufacturing segment has a copper foil production capacity of 5,000 tons per year, successfully entering the new energy supply chain [3]. - Rapid conversion of R&D investments into product competitiveness continues to enhance technological advantages [3]. Safety and ESG Initiatives - The company achieved zero major safety incidents and received green mine certification for its copper mine, indicating enhanced sustainable development capabilities [4]. Capacity and Efficiency Improvements - The company is advancing high-end capacity layout with 966 million yuan raised from a private placement, nearly half of which is allocated to a 50,000-ton copper belt foil project, expected to contribute over 25% to new materials revenue with a gross margin exceeding 20% [5]. - Smelting operations have improved efficiency through technological upgrades, with the recovery rate of valuable elements at the Houma North Copper Plant reaching 98.5% and comprehensive energy consumption per ton of copper decreasing by 8% [5]. - The high-performance copper belt foil project is set to enhance the "mining—smelting—deep processing" industrial chain, increasing the proportion of high-end product revenue to 30% [5]. - The company has improved investor communication frequency by 40% and maintained a stable debt-to-asset ratio below 45%, supporting long-term dividend capabilities [5].