2024-08-27 04:36Investment Rating - The report maintains a "Buy" rating for Zijin Mining (stock code: 601899.SH) [3] Core Views - The company reported a revenue of 150.42 billion yuan for the first half of 2024, a year-on-year increase of 0.06%, and a net profit attributable to shareholders of 15.08 billion yuan, up 46.42% year-on-year [1] - The company achieved significant growth in both volume and price, with a notable increase in profitability driven by effective cost control measures [2][3] - The company is on track to increase production capacity significantly over the next five years, with a targeted annual output of 150-160 thousand tons of copper and 100-110 tons of gold by 2028 [3] Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 1504.17 billion yuan, with a net profit of 150.84 billion yuan, reflecting a 46.42% increase year-on-year [1] - The second quarter of 2024 saw a revenue of 756.40 billion yuan, a year-on-year increase of 0.33%, and a net profit of 88.24 billion yuan, up 81.54% year-on-year [1] - The company’s gross profit margin for mineral products improved to 57.3%, an increase of 5.6 percentage points year-on-year [2] Production and Sales - In H1 2024, the company produced 51.9 thousand tons of copper, 35.4 tons of gold, and 22.2 thousand tons of zinc, with copper and gold production increasing by 5% and 10% respectively [2] - The average selling prices for copper concentrate, electrolytic copper, and gold ingots increased by 13%, 14%, and 18% year-on-year respectively [2] Future Outlook - The company is advancing several key projects, including the Kamoa Copper Mine, which is expected to produce approximately 150 thousand tons of copper annually [3] - The company aims for a compound annual growth rate (CAGR) of 9% for copper and gold production from 2023 to 2028, indicating strong growth potential [3] - Forecasted net profits for 2024, 2025, and 2026 are 316.01 billion yuan, 386.84 billion yuan, and 438.02 billion yuan respectively, with corresponding earnings per share (EPS) of 1.19, 1.46, and 1.65 yuan [8]