Sinomine(SZ:002738) Guotou Securities·2024-08-15 13:38Investment Rating - The report maintains a "Buy-A" rating for the company with a 12-month target price of 50.8 CNY per share, corresponding to a 25-year PE of 22.5 times [4][5]. Core Views - The company achieved significant cost reduction in its lithium segment and completed the acquisition of the Kitumba copper mine, which is expected to enhance its growth prospects [1][3]. - In the first half of 2024, the company reported a revenue of 2.421 billion CNY, a year-on-year decrease of 32.76%, and a net profit of 473 million CNY, down 68.52% year-on-year [1]. - The lithium salt sales from the company's own mines exceeded the total sales for the previous year, indicating strong operational performance [2]. Financial Performance Summary - For Q2 2024, the company reported a revenue of 1.295 billion CNY, a year-on-year decrease of 15.33% but a quarter-on-quarter increase of 14.95% [1]. - The average price of battery-grade lithium carbonate in the first half of 2024 was 104,000 CNY per ton, down 68.4% year-on-year, while the average price for Q2 was 106,000 CNY per ton, down 58.4% year-on-year but up 4.3% quarter-on-quarter [2]. - The company has a total mining capacity of 4.18 million tons per year and a battery-grade lithium salt production capacity of 66,000 tons per year [2]. Future Projections - The company is projected to achieve revenues of 7.346 billion CNY, 7.676 billion CNY, and 10.122 billion CNY for the years 2024, 2025, and 2026, respectively, with net profits of 1.198 billion CNY, 1.651 billion CNY, and 2.689 billion CNY for the same years [4][10].