Zijin Mining(601899) 开源证券·2024-07-10 09:30Investment Rating - The investment rating for Zijin Mining is "Buy" (maintained) [2][11]. Core Views - The company is expected to see a significant increase in profits for the first half of 2024, with a projected net profit increase of 41%-50% year-on-year, amounting to approximately 145.5-154.5 billion yuan [3][4]. - The rise in copper and gold prices, along with increased production, is driving the positive outlook for the company's earnings [3][4]. - The company has revised its profit forecasts for 2024-2026, expecting net profits of 319.7 billion yuan, 367.7 billion yuan, and 414.0 billion yuan respectively [3]. Summary by Sections Financial Performance - For 2024H1, the company anticipates a net profit of approximately 145.5-154.5 billion yuan, a year-on-year increase of about 41%-50% [3]. - The expected net profit for 2024 is projected at 31.973 billion yuan, reflecting a 51.4% increase compared to 2023 [7]. - The company's revenue is forecasted to grow from 270.329 billion yuan in 2022 to 339.064 billion yuan in 2024, representing a 15.6% year-on-year growth [7]. Production and Pricing - In 2024H1, the company expects gold production to reach approximately 35.4 tons, copper production around 51.8 million tons, and silver production about 210.3 tons, with respective year-on-year increases of 9.6%, 5.3%, and 1.3% [4]. - The prices of copper, gold, and silver have shown significant increases, with year-on-year rises of 18.6%, 18.2%, and 18.8% respectively in Q2 2024 [4]. Resource Expansion - The company announced a significant increase in copper metal resources from its Giant Dragon and Copper Mountain mines, adding 1,837.7 million tons of copper resources and 577.7 million tons of copper reserves, which is about 14.2% of China's copper reserves as of the end of 2022 [6].