Sinomine(SZ:002738) Soochow Securities·2024-08-18 21:30Investment Rating - The investment rating for Zhongmin Resources is "Buy" (maintained) [1] Core Views - The company's H1 2024 performance met expectations, with revenue of 2.4 billion yuan, a decrease of 33% year-on-year, and a net profit attributable to shareholders of 470 million yuan, down 69% year-on-year. Q2 revenue was 1.3 billion yuan, down 15% year-on-year but up 15% quarter-on-quarter, with a net profit of 220 million yuan, down 47% year-on-year and down 15% quarter-on-quarter [3] - In Q2 2024, lithium salt sales increased by 10% quarter-on-quarter, and production costs significantly decreased. The company produced 17,000 tons of lithium salt in H1 2024, with sales of 16,800 tons, exceeding last year's total sales. The average selling price of lithium salt in Q2 was nearly 100,000 yuan per ton, with production costs dropping from 60,000 yuan in Q1 to 53,000 yuan in Q2 [3] - The impact of exchange rate fluctuations significantly decreased in Q2 2024, with the all-in cost for Bikita dropping to 68,000 yuan per ton. The company expects further cost reductions as lithium spodumene production increases [3] - The cesium and rubidium business contributed stable profits, while the copper business is expected to become a future growth point. The cesium and rubidium business achieved a gross profit of 340 million yuan in H1 2024, down 4% year-on-year, with Q2 gross profit contributing 220 million yuan, up over 80% quarter-on-quarter [4] - Due to the unexpected decline in lithium prices, the company's profit forecasts for 2024-2026 have been revised downwards, with expected net profits of 1.11 billion, 1.27 billion, and 1.61 billion yuan respectively [4] Financial Summary - For 2024, the company is expected to generate total revenue of 5.758 billion yuan, a decrease of 4.25% year-on-year, and a net profit of 1.106 billion yuan, down 49.93% year-on-year. The EPS is projected to be 1.51 yuan per share, with a P/E ratio of 17.92 [2][4] - The company's total assets are projected to reach 16.817 billion yuan in 2024, with total liabilities of 3.32 billion yuan, resulting in a debt-to-asset ratio of 19.74% [9][10]