Western Mining(SH:601168) Capital Securities·2024-07-31 02:00Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company achieved a revenue of 24.977 billion yuan in the first half of 2024, representing a year-on-year growth of 10.1%. The net profit attributable to shareholders was 1.621 billion yuan, up 7.6% year-on-year, while the net profit excluding non-recurring items was 1.676 billion yuan, an increase of 12.6% year-on-year [5] - In Q2, the company recorded a revenue of 14.0 billion yuan, a year-on-year increase of 26.0% and a quarter-on-quarter increase of 27.6%. The net profit attributable to shareholders for the quarter was 884 million yuan, up 6.9% year-on-year and 19.9% quarter-on-quarter [5] - The main products saw an increase in both volume and price, with copper concentrate production reaching 85,235 tons, a 42% year-on-year increase, and molybdenum concentrate production at 1,926 tons, up 39% year-on-year [5] - The company is awaiting the gradual ramp-up of the Yulong Phase III project, which is expected to significantly increase copper production [5] - The company is one of the largest non-ferrous metal mining companies in the western region, and with the ongoing global copper supply tightness, copper prices are expected to remain high, benefiting the company significantly [5] Summary by Sections Financial Performance - The company reported a total revenue of 42.748 billion yuan for 2023, with projected revenues of 45.763 billion yuan in 2024, 47.993 billion yuan in 2025, and 50.565 billion yuan in 2026 [6] - The net profit attributable to shareholders for 2023 was 2.789 billion yuan, with projections of 3.349 billion yuan in 2024, 3.612 billion yuan in 2025, and 3.902 billion yuan in 2026 [6] - The earnings per share (EPS) are expected to be 1.17 yuan in 2023, increasing to 1.41 yuan in 2024, 1.52 yuan in 2025, and 1.64 yuan in 2026 [6] Production and Operations - The company completed its production plan for the first half of the year, achieving a copper concentrate output of 85,235 tons, a molybdenum concentrate output of 1,926 tons, and an iron concentrate output of 642,303 tons [5] - The electrolytic copper production reached 121,548 tons, a 44.12% increase year-on-year, while zinc ingot production was 60,620 tons, up 6% year-on-year [5] Market Outlook - The company is expected to benefit from the ongoing tight global copper supply, with copper prices projected to remain high [5] - The Yulong copper mine's Phase III expansion is anticipated to further enhance production capacity, contributing to future revenue growth [5]