CGN MINING(HK:01164)2024-08-29 08:44Investment Rating - The report does not provide a specific investment rating for the company [2] Core Insights - The company's net profit for 1H24 decreased by 37.0% year-on-year to HKD 113 million, primarily due to a shift from a gross profit of HKD 190 million in 1H23 to a loss of HKD 56 million, attributed to negative price differentials in natural uranium trading and a significant increase in tax expenses [2][10][11] - Despite the overall decline in net profit, the company's uranium mining business saw substantial profit growth, with profits from joint ventures Semizbay-U and Ortalyk increasing by 194.6% and 481.0% year-on-year to HKD 210 million and HKD 230 million, respectively [3][11] - The company has implemented a pricing mechanism that provides a price floor for its uranium sales, which helps mitigate the impact of uranium price fluctuations on profitability [4] Financial Performance Summary - For 1H24, total revenue was HKD 4,073 million, a 38.8% increase compared to the same period last year, with all revenue derived from natural uranium trading [10] - The average sales price of uranium increased by 34.5% year-on-year to USD 78 per pound, while the sales cost was USD 26 per pound [3][11] - The company's total uranium production rose by 5.2% year-on-year to 1,334 tons [3][11] Long-term Development Logic - The long-term development logic of the company remains unchanged, as global nuclear power development is a key option for achieving carbon neutrality, with the global operational nuclear power capacity reaching 375 GWe as of June 2024 [5]