HBIS Resources (SZ:000923) Huafu Securities·2024-09-10 00:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark index within the next six months [7] Core Views - The company reported a significant increase in revenue and net profit for the first half of 2024, with operating income reaching 3.256 billion yuan, up 37.85% year-on-year, and net profit attributable to shareholders at 477 million yuan, up 25.36% year-on-year [1] - The improvement in the operating environment in South Africa has positively impacted the company's metal mining and sales, with notable increases in production and sales volumes for various metals [1] - The copper phase II project is nearing completion, with an expected annual production capacity of 11 million tons of ore and a projected copper output of 70,000 tons, which could provide a new growth avenue for the company [1] Financial Performance Summary - For 2024, the company is projected to achieve a net profit of 950 million yuan, with an EPS of 1.46 yuan per share, reflecting a growth rate of 4% compared to the previous year [2][5] - The company's revenue is expected to grow from 6.992 billion yuan in 2024 to 9.635 billion yuan by 2026, with corresponding growth rates of 19% and 18% [2][5] - The gross profit margin for iron ore and copper businesses remains high, with iron ore maintaining an 82% margin and copper improving to 16% [1] Production and Sales Insights - The production volumes for iron ore, copper, and vermiculite in the first half of 2024 were 475,500 tons, 113,000 tons, and 93,400 tons, respectively, showing year-on-year increases of 80%, 26%, and 15% [1] - Sales volumes for the same period were 441,000 tons for iron ore, 116,000 tons for copper, and 59,400 tons for vermiculite, with iron ore and copper showing significant growth of 61% and 26% year-on-year, while vermiculite sales decreased by 14% [1] Market Conditions - The report highlights that the iron ore price has decreased by 13.1% compared to the previous year, while the average price for copper has increased by 16.4% [1] - The South African power supply situation has improved significantly, with uninterrupted electricity supply for 163 days, creating favorable conditions for production and shipping [1]