ZANGGE MINING(SZ:000408) Soochow Securities·2024-08-14 03:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's H1 2024 performance met expectations, with revenue of 1.76 billion yuan, a decrease of 37% year-on-year, and a net profit attributable to shareholders of 1.3 billion yuan, down 36% year-on-year [3] - The company maintains a significant cost advantage in lithium production, with H1 2024 lithium carbonate production reaching 5,809 tons, completing 55% of the annual target, and sales of 7,630 tons, completing 73% of the annual target [3] - Copper price increases have led to substantial investment returns, with the company's associate, Jilong Copper, producing 81,000 tons of copper in H1 2024, generating revenue of 6.1 billion yuan and a net profit of 2.8 billion yuan [4] - The company has announced a mid-term cash dividend of 4.08 billion yuan, continuing its trend of mid-term dividends for three consecutive years, and a share buyback plan of 150-300 million yuan [4] Financial Performance Summary - H1 2024 revenue was 1.76 billion yuan, down 37% year-on-year, with Q2 revenue at 1.15 billion yuan, down 19% year-on-year but up 87% quarter-on-quarter [3] - H1 2024 net profit attributable to shareholders was 1.3 billion yuan, down 36% year-on-year, with Q2 net profit at 770 million yuan, down 31% year-on-year but up 45% quarter-on-quarter [3] - The average selling price of lithium carbonate in H1 2024 was 94,000 yuan/ton, down 64% year-on-year, while the average sales cost was 41,300 yuan/ton, down 0.4% [3] - The company expects net profits for 2024-2026 to be 2.27 billion, 2.49 billion, and 3.41 billion yuan respectively, reflecting a year-on-year change of -34%, +10%, and +37% [4]