Kings(SH:603505) KAIYUAN SECURITIES·2024-08-10 08:48Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a record high in revenue and net profit for H1 2024, with revenue of 1.119 billion yuan, representing a year-on-year growth of 100.20%, and a net profit attributable to shareholders of 168 million yuan, up 32.54% year-on-year. However, due to the impact of mine shutdowns and a decline in lithium mica prices, the performance slightly fell short of expectations, leading to a downward adjustment in profit forecasts for 2024-2026 [3][4] - The company continues to see stable growth across various projects, with an upward trend in fluorite prices, indicating a long-term positive outlook despite short-term fluctuations [4] Financial Summary - Revenue projections for 2024-2026 are 2.976 billion yuan, 4.062 billion yuan, and 4.749 billion yuan, respectively, with year-on-year growth rates of 57.0%, 36.5%, and 16.9% [5] - Net profit attributable to shareholders is forecasted at 470 million yuan, 742 million yuan, and 913 million yuan for 2024-2026, with corresponding year-on-year growth rates of 34.8%, 57.8%, and 23.0% [5] - The company's earnings per share (EPS) are expected to be 0.78 yuan, 1.22 yuan, and 1.51 yuan for 2024-2026, with price-to-earnings (P/E) ratios of 32.7, 20.9, and 16.9, respectively [3][5] Operational Highlights - The company produced approximately 183,100 tons of fluorite concentrate, with a sales volume of 159,300 tons, and an average price of 2,856 yuan per ton, reflecting a year-on-year increase of 9.41% [4] - The Baotou "selection and processing integration" project produced 52,600 tons of anhydrous hydrofluoric acid, with sales of about 49,000 tons, contributing significantly to revenue growth [4] - The company plans to repurchase shares worth 50 to 100 million yuan as part of an employee stock ownership plan or equity incentive, and intends to distribute a mid-term dividend after the Q3 2024 report [4]