ZANGGE MINING(000408) 民生证券·2024-08-11 05:00Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Insights - The company's performance in H1 2024 exceeded expectations, driven by its lithium, potassium fertilizer, and copper businesses [2]. - The company achieved a revenue of 1.76 billion yuan in H1 2024, a decrease of 37.0% year-on-year, with a net profit attributable to shareholders of 1.30 billion yuan, down 36.0% year-on-year [2]. - The report highlights the company's strategic focus on expanding its lithium, potassium, and copper production capacities, which are expected to drive future growth [2]. Summary by Sections Performance Overview - In H1 2024, the company reported a revenue of 1.76 billion yuan, a decline of 37.0% year-on-year, and a net profit of 1.30 billion yuan, down 36.0% year-on-year. In Q2 2024, revenue was 1.15 billion yuan, a decrease of 19.4% year-on-year but an increase of 86.8% quarter-on-quarter [2]. Lithium Business - Lithium sales exceeded expectations, with production and sales of lithium carbonate reaching 5,800 tons and 7,600 tons respectively in H1 2024, achieving 55.3% and 72.7% of the annual targets. The average selling price for lithium carbonate was 83,000 yuan per ton [2]. Potassium Business - The potassium chloride production and sales in H1 2024 were 523,000 tons and 540,000 tons respectively, completing 52.3% and 51.8% of the annual targets. Q2 2024 saw significant improvements in sales volume, with production and sales increasing by 129.6% and 186.9% quarter-on-quarter [2]. Copper Business - The copper production from the company's subsidiary, Jilong Mining, was 81,000 tons in H1 2024, with a net profit of 1.63 billion yuan in Q2 2024, driven by rising copper and molybdenum prices [2]. Shareholder Returns - The company proposed a cash dividend of 2.6 yuan per 10 shares, totaling 410 million yuan, with a dividend payout ratio of 31.5%. Additionally, the company plans to repurchase shares worth 150 to 300 million yuan, demonstrating confidence in future growth [2]. Growth Drivers - The report emphasizes three key growth drivers: lithium production expansion, potassium fertilizer capacity increase, and copper production growth through the Jilong Mining project. The company is well-positioned to benefit from cost advantages in lithium extraction and planned expansions in potassium and copper production [2].