Hainan Mining(SH:601969) Guotou Securities·2024-08-29 08:10Investment Rating - The report maintains an "Accumulate - A" rating for Hainan Mining, with a 6-month target price of 7.8 CNY, compared to the current stock price of 5.38 CNY [3][7]. Core Views - The company experienced significant growth in oil and gas production, while the iron ore production faced challenges due to various factors. The integration of lithium salt production is progressing well, with projects expected to be operational by the end of the year [2][3][6]. Financial Performance - In the first half of 2024, the company achieved a revenue of 2.187 billion CNY, a year-on-year decrease of 8.91%. The net profit attributable to shareholders was 403 million CNY, an increase of 33.16% year-on-year. The net profit excluding non-recurring items was 347 million CNY, up 45.51% year-on-year [1][2]. - For Q2 2024, the revenue was 1.077 billion CNY, down 8.56% year-on-year and 2.97% quarter-on-quarter. The net profit attributable to shareholders was 155 million CNY, up 10.2% year-on-year but down 37.21% quarter-on-quarter [1]. Oil and Gas Production - The company reported a significant increase in oil and gas production, with equity production and sales reaching 399.26 and 302.09 thousand barrels of oil equivalent, respectively, both up approximately 48.63% year-on-year [2]. - The Bajiang Field contributed significantly to production growth, achieving a peak daily output of 260 million cubic meters, with a cumulative production of 281 thousand barrels of oil equivalent, up 128% year-on-year [2]. Iron Ore Production - Iron ore production and sales in the first half of 2024 were 1.1414 million tons and 1.2141 million tons, respectively, showing a year-on-year decrease of 20.83% and 8.20% due to increased rainfall, safety inspections, and fluctuations in ore quality [2]. Lithium Salt Projects - The Bougouni lithium mine phase one is expected to be completed and operational by the end of 2024, with significant progress made in construction [6]. - A 20,000-ton battery-grade lithium hydroxide project is also expected to be operational within the year, with key equipment already in place [6]. Future Projections - The company forecasts revenues of 5.39 billion CNY, 7.12 billion CNY, and 7.38 billion CNY for 2024, 2025, and 2026, respectively, with net profits projected at 797 million CNY, 866 million CNY, and 893 million CNY for the same years [7][8].