ZANGGE MINING(SZ:000408) EBSCN·2024-08-13 23:37Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the next 6-12 months [3][5]. Core Insights - The company's revenue for the first half of 2024 was CNY 1.762 billion, a decrease of 37.0% year-on-year, while the net profit attributable to shareholders was CNY 1.297 billion, down 36.0% year-on-year [2]. - The decline in revenue and profit is attributed to falling prices of potassium chloride and lithium carbonate, which saw average selling price drops of 26.5% and 63.9% respectively [2]. - Despite the challenges in the potassium and lithium sectors, the investment income from the company's stake in Jilong Copper Industry increased significantly, with a net profit of CNY 2.778 billion, up 46.1% year-on-year [2][3]. - The company is actively expanding its potassium and lithium resource base, with significant resources identified in Laos and ongoing developments in Tibet [2]. Summary by Sections Financial Performance - In Q2 2024, the company achieved revenue of CNY 1.147 billion, a year-on-year decrease of 19.4% but a quarter-on-quarter increase of 86.7% [2]. - The gross margin for H1 2024 decreased by 22.1 percentage points to 49.1% due to lower prices of key products [2]. Resource Development - The company has confirmed a total potassium chloride resource of 970 million tons in Laos, with over 79% classified as proven and controlled [2]. - The lithium resource project in the Mami Cuo salt lake is progressing, with infrastructure development underway [2]. Profit Forecast - The report projects net profits for the company to be CNY 2.515 billion, CNY 3.028 billion, and CNY 4.369 billion for 2024, 2025, and 2026 respectively [3].