Western Mining(SH:601168) Tebon Securities·2024-08-01 10:30Investment Rating - The report maintains a "Buy" rating for Western Mining (601168.SH) [2] Core Views - The company reported a 10.1% year-on-year increase in revenue for H1 2024, reaching 24.98 billion yuan, and a 26.4% increase in total profit to 3.16 billion yuan, with net profit at 2.75 billion yuan, a 7.6% increase year-on-year [4][5] - The growth is primarily driven by a 42% increase in copper concentrate production and a 13% rise in prices [4] - The company is advancing its Yulong Copper Mine Phase III expansion project, which is expected to enhance future growth prospects [4][5] Financial Performance - In H1 2024, the company produced 85,000 tons of copper concentrate, exceeding its production plan by 12% [4] - The average price of copper in H1 2024 was 74,600 yuan/ton, reflecting a 9.7% year-on-year increase [4] - The company anticipates revenue of 47.55 billion yuan in 2024, with net profit projected at 3.49 billion yuan, representing a 25.1% year-on-year growth [5][6] Production and Expansion - The Yulong Copper Mine's expansion is on track, with the processing capacity expected to increase to 22.8 million tons per year [5] - The company has achieved production completion rates above 100% for several key products, including zinc and lead concentrates [4] Market Context - The report notes that copper prices reached historical highs before a slight decline, influenced by supply constraints and market dynamics [4] - The company’s market capitalization corresponds to a PE ratio of 10.8x for 2024, indicating a favorable valuation compared to industry peers [5][6]