Western Mining(SH:601168) GF SECURITIES·2024-07-29 07:01Investment Rating - The investment rating for the company is "Buy" with a current price of 15.28 CNY and a fair value of 23.37 CNY per share [1]. Core Views - The company's net profit attributable to shareholders increased by 20% quarter-on-quarter, aligning with expectations. The revenue reached 14 billion CNY, representing a year-on-year growth of 26% and a quarter-on-quarter increase of 28% [1]. - The operating cash flow was 4.5 billion CNY, showing a significant year-on-year increase of 86% and a quarter-on-quarter increase of 809% [1]. - The rise in profits is primarily attributed to the increase in prices of main products, with copper, lead, and zinc prices rising by 15%, 12%, and 11% respectively [1]. - The company expects EPS for 2024-2026 to be 1.56, 1.66, and 1.74 CNY per share, respectively, with a target PE of 15 times for 2024, corresponding to a fair value of 23.37 CNY per share [1]. Financial Summary - For 2023, the company reported a revenue of 42.748 billion CNY, with a growth rate of 6.2%. The projected revenue for 2024 is 49.857 billion CNY, reflecting a growth rate of 16.6% [4]. - The net profit for 2023 was 2.789 billion CNY, with a decline of 18.4%, while the forecast for 2024 is 3.712 billion CNY, indicating a growth of 33.1% [4]. - The company's EBITDA for 2023 was 7.637 billion CNY, with projections of 9.055 billion CNY for 2024 [4]. - The company's debt-to-asset ratio is 60.14%, slightly up from the previous quarter [1].