2024-08-28 03:31Investment Rating - The report maintains a "Buy" rating for Zijin Mining (601899) [3] Core Views - The company's H1 2024 performance met expectations, with revenue of 150.42 billion yuan (yoy +0.06%) and a net profit of 15.08 billion yuan (yoy +46.4%) [3] - The increase in profits is attributed to rising prices (copper +5.5%, gold +14%) and production growth (copper +5.3%, gold +9.5%) [3] - In Q2 2024, revenue reached 75.64 billion yuan (yoy +0.3%, qoq +1.2%) with a net profit of 8.82 billion yuan (yoy +81.5%, qoq +40.9%) [3] - The company has increased its copper reserves by 6 million tons, with significant progress in various mining projects [3] - A five-year plan was announced aiming to achieve major economic indicators by 2028, including copper production of 1.5-1.6 million tons and gold production of 100-110 tons [3] Summary by Sections Financial Performance - H1 2024 revenue was 150.42 billion yuan, with a net profit of 15.08 billion yuan, reflecting a 46.4% increase year-on-year [3][8] - Q2 2024 saw revenue of 75.64 billion yuan and a net profit of 8.82 billion yuan, marking significant growth compared to previous quarters [3] Production and Cost Management - Copper and gold production increased by 5.3% and 9.5% respectively in H1 2024, while unit sales costs decreased by 8.8% and 6.7% [3] - The gross margin for copper was 62% and for gold was 53%, indicating effective cost control [3] Exploration and Project Development - The company has successfully increased its copper resource reserves and is advancing multiple projects, including significant expansions in Congo and Tibet [3] - The five-year plan aims for substantial increases in production across various minerals, positioning the company among the top global producers [3] Profit Forecast - The profit forecast for 2024-2026 has been revised upwards, with expected net profits of 31.45 billion yuan, 36.49 billion yuan, and 38.17 billion yuan respectively [3][8]