CGN MINING(HK:01164) KAIYUAN SECURITIES·2024-08-27 05:47Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company experienced a decline in net profit year-on-year due to tax provisions in the first half of 2024, leading to a downward revision of profit forecasts for 2024-2026. The expected net profits for 2024-2026 are HKD 5.45 billion, HKD 6.60 billion, and HKD 9.01 billion respectively, with corresponding EPS of HKD 0.07, HKD 0.09, and HKD 0.12. The PE ratios for 2024 are projected at 22.9, 18.9, and 13.8 times [3][4] - The company, as a leader in the uranium industry, is expected to benefit from the growth of nuclear power, maintaining a positive outlook for the second half of the year [3] Financial Performance Summary - In the first half of 2024, the company achieved revenue of HKD 40.73 billion, a year-on-year increase of 39%, while net profit was HKD 1.13 billion, a year-on-year decrease of 37%. The total expenses for sales, management, and finance were HKD 0.85 billion, a decrease of 4% year-on-year [4] - The company’s natural uranium equity production was 654 tons in the first half of 2024, with expectations of a total production of 1,288 tons for the year. Investment income for the period was HKD 4.47 billion, slightly below expectations due to unsold uranium from a subsidiary [5] - The global nuclear power capacity is projected to grow significantly, with an expected increase of 45% by 2035, which is anticipated to drive up uranium prices in the long term [6] Key Financial Metrics - The company’s projected financial metrics for 2024-2026 include: - Revenue: HKD 83.43 billion in 2024, with a year-on-year growth of 13.23% - Net Profit: HKD 5.45 billion in 2024, with a year-on-year growth of 9.57% - EPS: HKD 0.07 in 2024, with a PE ratio of 22.9 [7] - Current stock price is HKD 1.640, with a market capitalization of HKD 124.65 billion [8]