XINGYE SILVER&TIN(000426) Huaxin Securities·2024-09-01 02:40Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [2][4]. Core Insights - The company, Xingye Yinxin (000426.SZ), reported significant growth in its H1 2024 financials, with revenue reaching 2.198 billion yuan, a year-on-year increase of 76.42%, and a net profit attributable to shareholders of 883 million yuan, up 566.43% [2][4]. - The substantial revenue growth is attributed to the successful completion of technical upgrades at the main mining operation, Yinman Mining, which led to increased production and sales of mineral products [2][4]. - The report highlights that the main subsidiary, Yinman Mining, achieved a net profit of 709 million yuan in H1 2024, reflecting a 410.64% increase year-on-year, driven by orderly mining operations and improved processing capacity [2][4]. Summary by Sections Financial Performance - H1 2024 revenue was 2.198 billion yuan, a 76.42% increase year-on-year; net profit was 883 million yuan, up 566.43% [2]. - Q2 2024 revenue reached 1.434 billion yuan, a year-on-year increase of 82.20% and a quarter-on-quarter increase of 87.63% [2]. - The company forecasts revenues of 5.504 billion yuan, 6.274 billion yuan, and 7.086 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 1.853 billion yuan, 2.278 billion yuan, and 2.827 billion yuan [4][6]. Production and Operations - The main mining operation, Yinman Mining, completed technical upgrades, resulting in increased production and sales of tin and silver concentrates [2][4]. - The subsidiary, Baosheng Mining, resumed full production in April 2024, with a processing capacity of 480 tons per day [3]. Market Outlook - The report anticipates that tin prices will remain high, and silver prices are expected to continue their upward trend, which, combined with increased production, supports the positive outlook for the company [4].