Xin Lang Cai Jing·2025-11-21 06:34Core Viewpoint - Tongling Nonferrous Metals is one of the largest cathode copper producers in China, with smelting capacity exceeding 1.7 million tons, and has gradually become a comprehensive copper company covering the entire industry chain from "resources to smelting to processing" [1] Group 1: Company Overview - The company generates significant revenue and gross profit from copper products, but since 2024, tightening copper ore supply has led to a decline in copper smelting fees, resulting in a slight decrease in copper product gross margin [1] - There are concerns regarding whether the company's large copper smelting capacity will be impacted by the continued decline in smelting fees, potentially squeezing profit margins [1] Group 2: Market Outlook - The upward certainty of copper prices is increasing, and there are marginally positive expectations for smelting fees, which may enhance profit elasticity [1] - The company is targeting the high-end copper processing market, with its subsidiary, Tongguan Copper Foil, having been listed separately in 2022, and high-end electronic copper foil products are expected to see greater application markets amid the rapid development of AI and electronic communication industries [1] Group 3: Additional Profit Sources - The gold and other by-product segments are expected to continue contributing to the company's profits [1] - The initial coverage gives the company a "buy" rating [1]