ZANGGE MINING(SZ:000408) Great Wall Securities·2024-08-23 11:08Investment Rating - The report maintains a "Buy" rating for the company [6][12]. Core Views - The company's performance is under short-term pressure, but there is optimism regarding the future potential of the Jilong Copper Mine [6]. - The company's revenue and net profit are expected to decline in 2024, but a recovery is anticipated in subsequent years due to resource reserves and ongoing projects [6]. Financial Performance Summary - Revenue (Million CNY): - 2022A: 8,194 - 2023A: 5,226 - 2024E: 3,324 - 2025E: 3,978 - 2026E: 4,907 - YoY Growth: 2023A: -36.2%, 2024E: -36.4%, 2025E: 19.7%, 2026E: 23.3% [6][8]. - Net Profit (Million CNY): - 2022A: 5,655 - 2023A: 3,420 - 2024E: 2,506 - 2025E: 2,935 - 2026E: 4,144 - YoY Growth: 2023A: -39.5%, 2024E: -26.7%, 2025E: 17.1%, 2026E: 41.2% [6][8]. - EPS (CNY): - 2022A: 3.58 - 2023A: 2.16 - 2024E: 1.59 - 2025E: 1.86 - 2026E: 2.62 [6][8]. Product Performance Summary - The company's main products, potassium chloride and lithium carbonate, saw significant revenue declines in 1H24, with year-over-year decreases of 32.70% and 43.39%, respectively [2]. - The average selling price of potassium chloride decreased by 26.52% to 2,265.41 CNY/ton, while lithium carbonate's price dropped by 63.90% to 93,892.80 CNY/ton [2]. Project Development Summary - The Jilong Copper Mine is expected to significantly increase its production capacity, with plans to expand from 150,000 tons/day to 350,000 tons/day, potentially making it the largest copper mine globally [6]. - The company has a rich reserve of resources and is progressing with various projects, including the Xizang Mami Cuo project and the Laos potassium salt mine project [5][6].