Western Mining(SH:601168) Southwest Securities·2024-07-30 11:30Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Views - The company reported a revenue of 24.98 billion yuan for H1 2024, a year-on-year increase of 10.1%, and a net profit attributable to shareholders of 1.62 billion yuan, up 7.6% year-on-year. The second quarter saw a revenue of 14.0 billion yuan, reflecting a 26.0% year-on-year increase and a 27.6% quarter-on-quarter increase [2]. - The copper market is expected to see a long-term upward trend in prices due to increasing supply-demand gaps, with demand benefiting from high growth in the new energy sector. The company’s copper production is projected to reach 160,000 tons in 2024, contributing significantly to profit growth [2][3]. Company Summary - The company’s copper, zinc, and lead concentrate production for H1 2024 was 85,000 tons, 53,000 tons, and 28,000 tons respectively, with year-on-year changes of +42%, -12%, and -10%. The electrolytic copper production was 121,548 tons, up 44.1% year-on-year [2]. - The average prices for copper, lead, and zinc increased by 14%, 22%, and 14% respectively in H1 2024 [2]. - The company has completed the technical upgrades for the Yulong copper mine, which is expected to enhance production capacity significantly [2]. Financial Forecast - The forecast for net profit attributable to shareholders for the next three years is 3.51 billion yuan, 4.24 billion yuan, and 4.42 billion yuan, with corresponding EPS of 1.47 yuan, 1.78 yuan, and 1.85 yuan. The PE ratios are projected to be 11, 9, and 9 times respectively [3][4].