Western Mining(SH:601168) Guoxin Securities·2024-07-28 14:00Investment Rating - The investment rating for the company is "Outperform the Market" [2][3][19] Core Views - The company's performance in H1 2024 showed a year-on-year revenue growth of 10.1%, reaching 24.98 billion yuan, with a net profit attributable to shareholders of 1.62 billion yuan, reflecting a 7.6% increase [5][6] - The copper segment experienced both volume and price increases, with the Yulong Copper Mine's production expected to rise significantly due to ongoing expansion projects [6][19] - The company is benefiting from favorable copper prices and is projected to see substantial profit growth as it expands its mining capacity [2][19] Financial Performance Summary - In H1 2024, the company achieved a revenue of 24.98 billion yuan, with a net profit of 1.62 billion yuan and an operating cash flow of 5.04 billion yuan, marking a 104% increase [5][6] - The Yulong Copper Mine's production in H1 2024 reached 85,000 tons, a 42% increase year-on-year, while molybdenum production also saw a 38% increase [6][19] - The company expects revenues for 2024-2026 to be 47.94 billion, 50.75 billion, and 53.56 billion yuan respectively, with net profits projected at 3.275 billion, 4.439 billion, and 5.248 billion yuan [19][20] Market and Industry Insights - The company holds a competitive advantage in accessing high-quality copper, lead, and zinc resources in Western China, which is expected to enhance its profitability as metal prices remain favorable [2][19] - The expansion of the Yulong Copper Mine is anticipated to increase copper production capacity from 150,000 tons to 200,000 tons annually, significantly benefiting from the copper price cycle [2][19] - The lead and zinc segments are also showing positive trends, with zinc processing fees decreasing and lead prices increasing, contributing to improved profitability [7][19]