ZANGGE MINING(000408) 海通国际·2024-08-12 06:03Investment Rating - The report maintains an "Outperform" rating for Zangge Mining [3][6][13] Core Insights - In Q2 2024, the recurring net profit increased by 21.11% quarter-on-quarter, and the company plans to distribute a cash dividend of approximately RMB 408.33 million [2][9] - The company reported a significant decline in revenue and net profit year-on-year for the first half of 2024, with operating revenue of RMB 1.762 billion, down 37%, and net profit of RMB 1.297 billion, down 35.99% [9][10] - The company is actively pursuing share repurchase plans, with a budget of RMB 150 million to RMB 300 million for the buyback [6][12] Financial Performance - For H1 2024, the company achieved operating revenue of RMB 1.762 billion, a decrease of 37% year-on-year, and a recurring net profit of RMB 1.278 billion, down 36.10% year-on-year [9][10] - In Q2 2024, the company reported operating revenue of RMB 1.147 billion, an increase of 86.76% quarter-on-quarter, but a decrease of 19.36% year-on-year [9][10] - The company’s net profit for H1 2024 was RMB 1.297 billion, with a recurring net profit of RMB 1.278 billion [9][10] Business Segments - Potassium chloride production in H1 2024 was 522,800 tonnes, completing 52.28% of the annual target, with a revenue of RMB 1.122 billion, down 32.70% year-on-year [10][11] - Lithium carbonate production reached 5,809 tonnes, completing 55.32% of the annual target, with sales of 7,630 tonnes, up 56.83% year-on-year [10][11] - The copper business generated revenue of RMB 6.117 billion, with a net profit contribution of RMB 2.778 billion from Julong Copper, accounting for 65.94% of the company's net profit [10][11] Future Outlook - The company has adjusted its profit forecast for 2024-2026, expecting net profits of RMB 2.778 billion, RMB 3.289 billion, and RMB 4.438 billion respectively [13] - The target price for the stock is set at RMB 33.12, reflecting a potential upside of 26.90% based on a P/E ratio of 18.82 for 2024 [13]