Kings(SH:603505) Guoxin Securities·2024-08-09 10:03Investment Rating - The investment rating for the company is "Outperform" (maintained) [1][4][24] Core Insights - The company has achieved significant revenue growth, with a 100.20% year-on-year increase in revenue for the first half of 2024, reaching 1.119 billion yuan. The net profit attributable to shareholders increased by 32.54% to 168 million yuan [3][12][24] - The growth in revenue is primarily driven by the gradual production of the Jin Ebo fluorochemical project and increased sales of fluorite powder [3][12] - The company is positioned as a leader in the fluorite industry, with the largest single fluorite mine resource reserves and production capacity in the country [4][24] Financial Performance - In the first half of 2024, the company reported operating revenue of 1.119 billion yuan, a 100.20% increase year-on-year, and a net profit of 168 million yuan, a 32.54% increase year-on-year [3][12] - The company's net profit growth is lower than revenue growth due to the generally lower gross margins in the fluorochemical industry compared to its self-produced fluorite concentrate [12][24] - The average price of fluorite powder in the first half of 2024 was 3,366 yuan per ton, reflecting an 11.88% year-on-year increase [3][22] Production and Sales - The company produced and sold approximately 183,100 tons and 159,300 tons of self-produced fluorite concentrate, respectively, in the first half of 2024, with a slight decrease in sales volume but an increase in sales price [3][12] - The Jin Ebo fluorochemical project produced 52,600 tons of anhydrous hydrofluoric acid, with sales of approximately 49,000 tons, contributing significantly to revenue [12][13] Strategic Developments - The company is expanding its production capacity through the acquisition of mines and the development of associated mines, aiming to enhance its resource reserves and production capabilities [4][24] - The company is also focusing on extending its business into high-value downstream sectors of the fluorochemical industry [4][24] - The integration of fluorite resources in Mongolia is part of the company's global strategy to enhance its international trade position [12][24]