CITIC Metal (SH:601061) Minsheng Securities·2024-08-29 05:41Investment Rating - The report gives a "Cautious Recommendation" rating for the company, marking its first coverage [4][31]. Core Views - The company achieved a revenue of 64.249 billion yuan in H1 2024, a year-on-year increase of 5%, and a net profit attributable to shareholders of 1.106 billion yuan, up 3.6% year-on-year [2][9]. - The growth in revenue is primarily driven by the expansion of non-ferrous metal business, which saw a revenue increase of 28.42% year-on-year, while the black metal business revenue decreased by 26.80% [3][13]. - The company is focusing on a dual-driven strategy of trade and investment, aiming to enhance resource acquisition and provide value-added services across the entire industry chain [4][24]. Summary by Sections 1. Event Overview - The company released its H1 2024 report, showing a revenue of 64.249 billion yuan and a net profit of 1.106 billion yuan [2][9]. 2. Performance Review 2.1 Revenue Growth and Margin Decline - The overall revenue increased by 4.95% year-on-year, with domestic revenue growing by 3.9% to 49.177 billion yuan and overseas revenue increasing by 8.9% to 15.073 billion yuan [3][13]. - The gross margin decreased by 0.71 percentage points to 1.11%, with non-ferrous metal products' gross margin increasing by 0.64 percentage points to 2.14% [3][13]. 2.2 Improvement in Q2 Performance - In Q2 2024, the company achieved a revenue of 37.418 billion yuan, a year-on-year increase of 11.7% and a quarter-on-quarter increase of 39.5% [2][9]. - The net profit attributable to shareholders in Q2 was 0.952 billion yuan, reflecting an 81.4% year-on-year increase and a 515% quarter-on-quarter increase [2][9]. 3. Future Core Highlights - The company is enhancing its resource acquisition capabilities and focusing on global quality asset investments, with significant stakes in various mining projects [4][24]. - The investment in the Kamoa-Kakula copper mine and the Las Bambas copper mine are highlighted as key assets, with substantial expected production [24][25]. 4. Profit Forecast and Investment Suggestions - The company is expected to see net profits of 1.757 billion yuan, 1.984 billion yuan, and 2.101 billion yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 19x, 16x, and 16x [4][31].