NNCI(600301) 开源证券·2024-08-07 07:30Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2]. Core Views - The company, Huaxi Nonferrous (600301.SH), has transformed into a state-owned platform for nonferrous metals in Guangxi, with a clear expansion plan for its own mines and the injection of related assets from Huaxi Group, indicating significant growth potential in net profit from 2024 to 2026 [4][11]. - The company is positioned as a regional leader in nonferrous metals, with a focus on tin and antimony, both of which are strategic national resources facing supply constraints [6][11]. Summary by Sections Company Overview - The company completed the acquisition of Huaxi Mining in 2023, rebranding itself as Huaxi Nonferrous, and is now the only state-owned listed platform for nonferrous metals in Guangxi [11][12]. - The company has a stable shareholding structure, with Huaxi Group holding 56.47% of the shares, and is expected to inject more assets into the listed company to enhance competitiveness [14][30]. Financial Performance - In 2023, the company reported a significant increase in revenue and net profit, with operating income reaching 2.92 billion yuan, a year-on-year growth of 5.66%, and net profit of 314 million yuan, up 43.39% [17]. - The first quarter of 2024 saw a remarkable increase in revenue by 61.61% to 964 million yuan and net profit by 81.05% to 125 million yuan [20][21]. Mining Operations - The company operates two main mines: Tongkeng and Gaofeng, with plans for significant capacity expansion. The Tongkeng mine's output was 130.67 thousand tons in 2023, and the company aims to increase its mining capacity from 132 thousand tons/year to over 300 thousand tons/year [5][27]. - The Gaofeng mine is also expected to see increased production, with a focus on exploring and expanding its resource base [27][30]. Market Dynamics - Tin and antimony are highlighted as strategic resources with limited supply growth. Global tin production decreased by 5.54% in 2023, and antimony production saw a slight decline of 0.12% [6][11]. - The demand for tin is expected to rise due to its applications in the semiconductor industry and renewable energy sectors, while antimony demand is driven by the growth in photovoltaic installations [6][11]. Profitability Forecast - The company forecasts net profits of 726 million yuan, 820 million yuan, and 1.095 billion yuan for 2024, 2025, and 2026, respectively, with corresponding EPS of 1.15, 1.30, and 1.73 yuan [4][7]. - The current price-to-earnings ratios are projected at 14.0, 12.4, and 9.3 for the next three years, indicating a relatively undervalued position compared to peers [7][30].