Kings(SH:603505) Huajin Securities·2024-08-19 07:08Investment Rating - The report assigns a "Buy-B" rating for Jinshi Resources (603505.SH) [1][3]. Core Views - The report highlights that the price of fluorite remains strong, and the Baotou project is driving performance growth. The company achieved a revenue of 1.119 billion yuan in H1 2024, a year-on-year increase of 100.20%, with a net profit attributable to shareholders of 168 million yuan, up 32.54% year-on-year [1][3]. - The report anticipates that the company's revenue will reach 2.844 billion yuan in 2024, with a year-on-year growth of 50.0%, and net profit attributable to shareholders will be 470 million yuan, reflecting a growth of 34.7% [3][4]. Summary by Sections Financial Performance - In H1 2024, Jinshi Resources reported a revenue of 1.119 billion yuan, a 100.20% increase year-on-year, and a net profit of 168 million yuan, up 32.54% year-on-year. The gross profit margin was 26.53%, a decrease of 21.53 percentage points year-on-year [1]. - For Q2 2024, the company achieved a revenue of 671 million yuan, a year-on-year increase of 71.67% and a quarter-on-quarter increase of 49.66%. The net profit attributable to shareholders was 107 million yuan, up 16.57% year-on-year and 76.87% quarter-on-quarter [1]. Business Segments - The Baotou project significantly contributed to the performance growth, with fluorite mine revenue of 663 million yuan in H1 2024. The company produced 252,800 tons of fluorite concentrate from three production lines [1]. - The report indicates that the company plans to produce 400,000 to 500,000 tons of various fluorite products in 2024, with the Baotou project expected to produce 500,000 to 600,000 tons of fluorite powder [1][3]. Future Outlook - The company is expanding its operations into Mongolia, with plans to invest 134 million yuan to acquire a 67% stake in a fluorite resource project. This project is expected to produce approximately 150,000 tons of high-grade raw fluorite products in 2024 [3]. - The report projects that the company's revenue will grow to 3.983 billion yuan in 2025 and 5.198 billion yuan in 2026, with corresponding net profits of 748 million yuan and 969 million yuan, respectively [4][6].