NAIPU MINING(SZ:300818) Huaxin Securities·2024-08-16 06:30Investment Rating - The report maintains a "Buy" investment rating for the company [4][7]. Core Insights - The company has shown significant revenue growth, with H1 2024 revenue reaching 627 million yuan, a year-on-year increase of 56.68%, and a net profit of 84 million yuan, up 58.10% year-on-year [4]. - The rubber wear parts business is expected to see steady market share growth due to high copper prices and increasing demand for mining consumables, with a projected doubling of demand over the next 10-15 years [4][6]. - The company is expanding its overseas operations, with production bases in Zambia and Chile, which are expected to significantly increase export ratios and improve overall gross margins [5][6]. Summary by Sections Market Performance - The company is experiencing a gradual release of overseas production capacity, leading to sustained growth in overseas business [3]. Financial Performance - In H1 2024, the company achieved a gross margin of 35%, an increase of 2.6 percentage points year-on-year, with the core rubber wear parts business achieving a gross margin of 42.49% [6]. - The company’s revenue forecast for 2024-2026 is projected at 1.311 billion, 1.468 billion, and 1.758 billion yuan respectively, with corresponding EPS of 1.07, 1.47, and 1.82 yuan [7][9]. Cost Control - The company has demonstrated effective cost control, with a sales expense ratio of 5.05% and a management expense ratio of 10.29%, both showing improvements compared to the previous year [6]. Market Opportunities - The company is well-positioned in the rubber wear parts market, with a current penetration rate of less than 15%, indicating substantial room for growth [4][6].