Jiayou International(SH:603871) ZHESHANG SECURITIES·2024-07-30 08:03Investment Rating - The investment rating for the company is "Buy" and is maintained [5][26]. Core Insights - The company is expected to achieve significant profit growth driven by its dual engines of business in China-Mongolia and Africa, with projected net profits of 1.56 billion, 2.11 billion, and 2.63 billion yuan for the years 2024 to 2026, representing year-on-year growth rates of 50%, 35%, and 25% respectively [2][5]. Summary by Sections Employee Stock Ownership Plan - The 2024 employee stock ownership plan sets performance targets for net profit attributable to the parent company at 1.56 billion, 2.11 billion, and 2.63 billion yuan for 2024-2026, with year-on-year increases of 50%, 35%, and 25% respectively. If these targets are met, the unlocking ratio will be 100% [2]. China-Mongolia Business - In the first half of 2024, the company achieved a record cargo volume at the Ganqimaodu port, with coal imports increasing by 29% year-on-year to 20.29 million tons. The company acquired a 20% stake in the KEX mine and signed a long-term coal procurement agreement with MMC for 17.5 million tons over ten years, which is expected to enhance its coal trading business [2]. Africa Business - The daily traffic volume at the Kasai road and port in the Democratic Republic of Congo exceeded expectations, with copper concentrate imports from Congo reaching approximately 550,000 tons in Q2 2024, a 51% increase year-on-year. The company is also expanding its logistics network in Africa through the acquisition of the BHL fleet, which is anticipated to accelerate growth in its African logistics business [2].