ZY-Tungsten(002378) 民生证券·2024-08-28 06:14Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 5.38 yuan [4]. Core Views - The company benefits from rising tungsten prices, with significant profit growth in its mining operations and a continuous increase in its cutting tool business [3][4]. - The company is expected to see steady growth in its performance, with projected net profits of 2.18 billion, 2.87 billion, and 3.58 billion yuan for 2024, 2025, and 2026 respectively, corresponding to PE ratios of 30, 22, and 18 times [3][4]. Summary by Sections Financial Performance - In H1 2024, the company achieved a net profit attributable to shareholders of 112 million yuan, a year-on-year increase of 29.86%, and a non-recurring net profit of 112 million yuan, up 70.74% year-on-year [1]. - In Q2 2024, the net profit attributable to shareholders was 85 million yuan, reflecting a year-on-year increase of 65.56% and a quarter-on-quarter increase of 212.61% [1]. Mining Operations - The company reported a slight decline in tungsten concentrate production, with H1 2024 output at 1,792 tons, a year-on-year increase of 5.64%. By contrast, associated tin production increased to 415 tons, up 6.28% year-on-year [2]. - The company has six mining rights and ten exploration rights, with tungsten resource reserves of 94,600 tons, tin reserves of 17,600 tons, and copper reserves of 12,900 tons [3]. Market Dynamics - The report highlights that the company’s mining profits have significantly increased due to rising prices of tungsten, tin, and copper. In Q2 2024, tungsten concentrate prices rose by 17% quarter-on-quarter and 21% year-on-year, reaching 145,000 yuan per ton [2]. - The cutting tool business is expected to be a major growth driver, with the subsidiary Ganzhou Aoketai's cutting tool sales volume increasing by 23% year-on-year [3]. Future Outlook - The company is well-positioned to benefit from the rising tungsten prices and the growing demand for hard alloy products, with a strong outlook for its cutting tool segment [3]. - The projected revenue for 2024 is 3.952 billion yuan, reflecting a growth rate of 16.2% [5].