Western Mining(SH:601168)2024-08-01 01:31Investment Rating - The report maintains an "Outperform" rating for the company [5]. Core Insights - The company's H1 2024 performance met expectations, with revenue of 24.98 billion yuan (up 10.1% year-on-year) and net profit attributable to shareholders of 1.62 billion yuan (up 7.6% year-on-year) [5]. - The increase in revenue and profit is primarily driven by a 42% increase in copper concentrate production and a 13% rise in prices compared to the same period last year [5]. - The company has made significant progress in key projects, including the technological transformation of the Yulong Copper Mine and the expansion of the Shuangli Iron Mine [6]. Financial Summary - For H1 2024, the company reported a revenue of 24.98 billion yuan, with a net profit of 1.62 billion yuan and a non-recurring net profit of 1.68 billion yuan [5]. - In Q2 2024, revenue reached 14.0 billion yuan (up 26.0% year-on-year and 27.6% quarter-on-quarter), with a net profit of 880 million yuan (up 6.9% year-on-year and 19.9% quarter-on-quarter) [5]. - The company’s production data for H1 2024 includes 28,000 tons of lead (down 9% year-on-year), 53,000 tons of zinc (down 12% year-on-year), and 85,000 tons of copper (up 42% year-on-year) [5]. Project Developments - The Yulong Copper Mine's technological upgrade was completed in November 2023, increasing ore processing capacity to 22.8 million tons per year [6]. - The company is also advancing the expansion of the Shuangli Iron Mine, which is expected to produce 3 million tons of iron ore annually [6]. - The comprehensive recycling and environmental upgrade project in Xiyu is expected to begin trial production in the second half of 2024, with a production capacity of 200,000 tons of lead and 6 tons of gold [6]. Profit Forecast - The report has adjusted profit forecasts for 2024-2026, expecting net profits of 3.53 billion yuan, 4.21 billion yuan, and 4.68 billion yuan respectively, reflecting an increase due to rising copper prices and production exceeding plans [5][6].