HBIS Resources (000923) INDUSTRIAL SECURITIES·2024-08-31 05:38Investment Rating - The report maintains an "Accumulate" rating for the company [1][3]. Core Views - The company's performance has improved due to increased iron ore sales and higher interest income, with a year-on-year net profit growth of 25.36% in H1 2024 [1][2]. - The copper phase II project is progressing, contributing positively to the company's future profitability [3][4]. Summary by Sections Financial Performance - In H1 2024, the company achieved operating revenue of 3.256 billion yuan, a year-on-year increase of 37.85%, and a net profit attributable to shareholders of 477 million yuan, up 25.36% [2][3]. - The average price of iron ore (62% grade) was 117.73 USD/ton in H1 2024, a slight decline of 0.48% year-on-year, while the shipment volume increased significantly by 61% to approximately 4.41 million tons [1][2]. Business Segments - Iron Ore: The company maintained strong performance with increased shipment volumes despite a slight price decline [1][2]. - Copper: The phase II project has begun partial production, with copper shipments reaching approximately 11,600 tons in H1 2024, a 26% increase year-on-year [1][3]. - Vermiculite: Shipment volume is expected to decline slightly, but its impact on overall performance is limited due to its lower profit contribution [1][2]. Future Outlook - The copper phase II project is expected to ramp up production, potentially reaching full capacity by 2026, which will enhance profitability [3][4]. - Profit forecasts for 2024-2026 are adjusted to 873 million, 1.187 billion, and 1.338 billion yuan respectively, with corresponding EPS of 1.34, 1.82, and 2.05 yuan [3][4].