Zhongyuan Securities·2024-09-03 08:20Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating a projected relative increase of 5% to 15% compared to the CSI 300 index over the next six months [2][20]. Core Views - The company achieved its best operating performance in history for the same period, with a significant increase in revenue and net profit driven by strong demand in the copper and cobalt sectors [4][5]. - The company has a robust resource endowment and a comprehensive product portfolio, covering exploration, mining, beneficiation, and smelting, with a strategic focus on new energy metals such as copper and cobalt, as well as strategic metals like molybdenum and tungsten [5][6]. - The company is well-positioned for future growth, with new projects underway, including a partnership for the Nzilo II hydropower station, which will enhance its power supply for production [6][7]. Summary by Sections Financial Performance - In the first half of 2024, the company reported operating revenue of 102.82 billion yuan, a year-on-year increase of 18.56%, and a net profit attributable to shareholders of 5.42 billion yuan, up 670.43% year-on-year [4][5]. - The company’s cash flow from operations was 10.78 billion yuan, reflecting a 23.02% increase compared to the previous year [4]. Production and Sales - The company exceeded its annual production guidance for all products in the first half of 2024, producing 313,800 tons of copper and 54,000 tons of cobalt, representing year-on-year growth of 100.74% and 178.22%, respectively [6][7]. - Revenue from the copper segment reached 20.03 billion yuan, with a significant year-on-year growth of 444.78% due to rising copper prices [5]. Future Outlook - The company plans to focus on optimizing processes and improving technical indicators in its copper and cobalt segments, while also advancing projects in molybdenum and tungsten [7]. - The projected net profit for 2024, 2025, and 2026 is adjusted to 11.18 billion yuan, 12.23 billion yuan, and 13.50 billion yuan, respectively, with expected EPS of 0.52 yuan, 0.57 yuan, and 0.62 yuan [7][9].