Guotou Securities·2024-08-28 09:02Investment Rating - The investment rating for the company is "Buy - A" with a 6-month target price of 10.2 CNY per share [3]. Core Views - The company has achieved significant growth in revenue and profit due to the successful ramp-up of its world-class mines and an increase in copper prices. In the first half of 2024, the company reported a revenue of 1028.18 billion CNY, a year-on-year increase of 18.56%, and a net profit of 54.17 billion CNY, a remarkable increase of 670.43% [1][2]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 566.97 billion CNY, up 33.58% year-on-year, and a net profit of 33.46 billion CNY, up 766.68% year-on-year and 61.49% quarter-on-quarter [1]. - The company’s non-recurring net profit for Q2 2024 was 35.34 billion CNY, reflecting a year-on-year increase of 2190.78% and a quarter-on-quarter increase of 68.98% [1]. Production and Sales - The company’s copper and cobalt production in H1 2024 reached 313,800 tons and 54,000 tons, respectively, representing year-on-year increases of 100.74% and 178.22% [2]. - The sales figures for copper and cobalt in H1 2024 were 311,800 tons and 50,900 tons, showing year-on-year increases of 510.53% and 3441.73% [2]. Market Conditions - The average price of cathode copper in H1 2024 was 9,090.30 USD/ton, an increase of 4.45% year-on-year, while the average price of cobalt decreased by 20.44% to 12.22 USD/pound [2]. - The company’s copper segment reported a gross profit of 10.485 billion CNY, with a gross profit per ton of 33,600 CNY, while the cobalt segment reported a gross profit of 1.831 billion CNY, with a gross profit per ton of 36,000 CNY [2]. Future Outlook - The company expects to produce between 520,000 to 570,000 tons of copper and 60,000 to 70,000 tons of cobalt in 2024, achieving 58% and 83% of its annual production targets, respectively [2]. - The company is also advancing its Nzilo II hydropower project to ensure stable power supply for future production [2].